Workflow
TRxADE HEALTH(MEDS) - 2025 Q1 - Quarterly Report
MEDSTRxADE HEALTH(MEDS)2025-05-12 21:30

Financial Performance - Revenues for the three months ended March 31, 2025, were 10,258,comparedto10,258, compared to 0 for the same period in 2024, indicating a significant increase[17]. - Gross profit for Q1 2025 was 673,resultinginagrossmarginofapproximately6.57673, resulting in a gross margin of approximately 6.57%[17]. - Operating expenses decreased to 3.57 million in Q1 2025 from 5.49millioninQ12024,areductionofabout355.49 million in Q1 2024, a reduction of about 35%[17]. - Net loss from continuing operations for Q1 2025 was 3.06 million, an improvement compared to a net loss of 6.63millioninQ12024[17].−Thecompanyreportedanetlosspercommonsharefromcontinuingoperationsof6.63 million in Q1 2024[17]. - The company reported a net loss per common share from continuing operations of 0.33 for Q1 2025, compared to a loss of 6.40pershareinQ12024[17].−Thecompanyincurredanetlossfromoperationsof6.40 per share in Q1 2024[17]. - The company incurred a net loss from operations of 3,063,997, a 54% improvement compared to a net loss of 6,633,422inthesameperiodin2024[194].AssetsandLiabilities−Totalassetsincreasedto6,633,422 in the same period in 2024[194]. Assets and Liabilities - Total assets increased to 106.36 million as of March 31, 2025, compared to 104.85millionatDecember31,2024,reflectingagrowthofapproximately1.44104.85 million at December 31, 2024, reflecting a growth of approximately 1.44%[13]. - Total liabilities decreased to 25.20 million as of March 31, 2025, from 25.78millionatDecember31,2024,adeclineofapproximately2.2525.78 million at December 31, 2024, a decline of approximately 2.25%[15]. - Stockholders' equity increased to 81.16 million as of March 31, 2025, compared to 79.07millionatDecember31,2024,reflectingagrowthofabout2.6579.07 million at December 31, 2024, reflecting a growth of about 2.65%[15]. - As of March 31, 2025, the Company had an accumulated deficit of 42,102,970 and 2,049,638incash[67].−Currentliabilitiesdecreasedby62,049,638 in cash[67]. - Current liabilities decreased by 6% to 7,461,666 as of March 31, 2025, from 7,906,893asofDecember31,2024[172].CashFlow−Cashandcashequivalentsincreasedsignificantlyto7,906,893 as of December 31, 2024[172]. Cash Flow - Cash and cash equivalents increased significantly to 2.05 million as of March 31, 2025, from 0.31millionatDecember31,2024[13].−Netcashusedinoperatingactivitiesfromcontinuingoperationswas0.31 million at December 31, 2024[13]. - Net cash used in operating activities from continuing operations was 2,956,457, significantly reduced from 9,659,231intheprioryear[1].−Cashprovidedbyinvestingactivitieswas9,659,231 in the prior year[1]. - Cash provided by investing activities was 0 for the three months ended March 31, 2025, compared to 27,432,589forthesameperiodin2024[182].−CashusedinoperatingactivitiesforthethreemonthsendedMarch31,2025,was27,432,589 for the same period in 2024[182]. - Cash used in operating activities for the three months ended March 31, 2025, was 2,956,457, a decrease of 69% compared to 10,189,673forthesameperiodin2024[181].StrategicInitiatives−ThecompanyplanstodivestitsmembershipinterestsinIntegraPharmaSolutions,LLC,andBonumHealth,Inc.toTolloHealth,Inc.for10,189,673 for the same period in 2024[181]. Strategic Initiatives - The company plans to divest its membership interests in Integra Pharma Solutions, LLC, and Bonum Health, Inc. to Tollo Health, Inc. for 5 million in a promissory note[28]. - The divestitures are part of a strategic realignment aimed at optimizing the company's portfolio and accelerating growth in the Branded and Specialty Pharma markets[32]. - The company anticipates using proceeds from divestitures to support high-growth commercial and strategic product development activities at Scienture, LLC[32]. Research and Development - The company has ongoing research and development expenses amounting to 574,679forQ12025,indicatingcontinuedinvestmentininnovation[17].−Scienture,LLCisengagedintheresearchanddevelopmentofbrandedpharmaceuticalproducts,withafocusonaddressingunmetmedicalneeds[27].−ManagementexpectsSCN−102toachieveregulatoryapprovalinmid−2025,withcommercializationprojectedtobegininlate2025[93].DebtandFinancing−Thecompanyissuedconvertibledebenturestotaling574,679 for Q1 2025, indicating continued investment in innovation[17]. - Scienture, LLC is engaged in the research and development of branded pharmaceutical products, with a focus on addressing unmet medical needs[27]. - Management expects SCN-102 to achieve regulatory approval in mid-2025, with commercialization projected to begin in late 2025[93]. Debt and Financing - The company issued convertible debentures totaling 3,333,333, with an original issue discount of 10%, and recognized a debt discount of 3,333,333[94][100].−AsofMarch31,2025,thetotaldebtofthecompanyis3,333,333[94][100]. - As of March 31, 2025, the total debt of the company is 5,333,333, net of unamortized debt discount of 2,240,872,resultinginanetdebtof2,240,872, resulting in a net debt of 3,092,462[111]. - The company entered into a loan agreement with NVK Finance for 2,000,000,withaninterestrateof15.502,000,000, with an interest rate of 15.50% as of March 31, 2025[107]. Acquisitions - The Company acquired Scienture, Inc. for a total purchase consideration of 78,646,184, with goodwill recognized primarily for expected economic benefits[70]. - The preliminary purchase price allocation for the Scienture acquisition includes 21,372,960ingoodwilland21,372,960 in goodwill and 76,400,000 in intangible assets related to product technologies[72]. - The Company recorded goodwill of 21,372,960andintangibleassetsvaluedat21,372,960 and intangible assets valued at 76,400,000 in connection with the Scienture Merger on July 25, 2024[90]. Operational Metrics - The company reported total operating lease expenses of 36,402forQ12025,comparedto36,402 for Q1 2025, compared to 12,840 in Q1 2024, reflecting a significant increase[144]. - The company has future lease obligations totaling 241,392,withapresentvalueoffutureminimumleasepaymentsat241,392, with a present value of future minimum lease payments at 204,762[144]. - The weighted-average remaining lease term is 3.23 years, with a discount rate of 10.90%[144].