TRxADE HEALTH(MEDS) - 2024 Q4 - Annual Report

Financial Performance - The Company reported revenues of $136,643 for the year ended December 31, 2024, a decrease of$1,227,187 or 90% compared to $1,363,830 in 2023, primarily due to the disposition of Softell's assets and operations [463][464]. - The Company incurred a net loss from continuing operations of$18,778,876 for 2024, an increase of $10,296,011 or 121$8,482,864 in 2023 [463]. - The company incurred a net loss from continuing operations of $18,244,480 for the year ended December 31, 2024, compared to a net loss of$8,482,864 for the same period in 2023 [474]. - Net income from discontinued operations increased by $36,670,988 to$27,310,278 for the year ended December 31, 2024, compared to a net loss of $9,360,710 for the same period in 2023, primarily due to the disposal of Softell assets [475]. Expenses - Cost of goods sold for 2024 was$130,638, down $1,184,162 or 90$1,314,800 in 2023, reflecting fewer revenue-generating operations [463][465]. - Operating expenses totaled $14,707,020 for 2024, an increase of$10,261,538 or 231% from $4,445,482 in 2023, driven by significant increases in wages, professional fees, and general administrative costs [463]. - Wages and salary expense increased by$1,484,520 to $2,111,067 for the year ended December 31, 2024, compared to$626,547 for the same period in 2023, primarily due to increased salaries of the COO and CEO and personnel from the Scienture Merger [466]. - Professional fees rose by $583,196 to$1,458,332 compared to $875,136 for the same period in 2023, mainly due to increased Board members' fees and post-acquisition professional fees of Scienture LLC [467]. - General and administrative expenses increased by$5,369,446 to $6,706,082 compared to$1,336,637 for the same period in 2023, largely due to shares issued for services valued at $4,598,294 in 2024 [469]. - Research and development expenses related to Scienture LLC were$2,236,690 for the year ended December 31, 2024, with significant costs allocated to various projects including $1,158,130 for SCN-102 (Losartan) [471]. Cash Flow and Assets - Cash used in operating activities for 2024 was$14,265,238, compared to $2,225,192 in 2023, marking an increase of$12,040,046 or 541% [458][459]. - Cash provided by investing activities for 2024 was $27,552,791, a significant increase from cash used of$275,717 in 2023, primarily due to the MMS disposition and acquisition of Scienture, Inc. [458][460]. - Cash increased to $308,096 as of December 31, 2024, compared to$314 as of December 31, 2023, driven by proceeds from asset dispositions and convertible debentures [476]. - Current assets (excluding cash) rose by 118% to $5,997,381 as of December 31, 2024, compared to$2,752,749 for the same period in 2023 [477]. Dividends and Capital Raising - The Company plans to raise additional capital through equity and debt sales, which may not be available on favorable terms, raising concerns about its ability to continue as a going concern [457]. - The company declared a special cash dividend of $8.00 per share, totaling$12,671,072, payable on March 22, 2024, funded by asset sale proceeds [479]. - A second special cash dividend of $1.50 per share, totaling$2,187,759, was declared on July 9, 2024, payable on July 22, 2024, using proceeds from asset sales [480]. Corporate Changes - The Company changed its legal name from "TRxADE HEALTH, Inc." to "Scienture Holdings, Inc." on September 20, 2024, and its common stock now trades under the ticker symbol "SCNX" effective September 23, 2024 [449][450]. - The Company is in the process of determining a divestment and winddown plan for Softell and IPS, with the Board of Directors approving this plan on January 25, 2025 [447].