UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ to _______ Commission File Number: 001-39199 TRXADE GROUP, INC. (Exact name of registrant as specified in its charter) | Delaware | 46-3673928 | | --- | --- | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ to _______ Commission File Number: 001-39199 TRXADE GROUP, INC. (Exact name of registrant as specified in its charter) | Delaware | 46-3673928 | | --- | --- ...

FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: _____________to______________ 001-39199 (Commission File Number) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 TRXADE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 46-3673928 (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2019 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ to _______ Commission File Number: 000-55218 TRXADE GROUP, INC. (Exact name of registrant as specified in its charter) | Delaware | 46-3673928 | | --- | ...

[Filing Information](index=1&type=section&id=Filing%20Information) This section details TRXADE GROUP, INC.'s Form 10-Q filing for Q2 2019, including corporate information and filer status [General Information](index=1&type=section&id=General%20Information) This section outlines TRXADE GROUP, INC.'s basic filing details for the Q2 2019 Form 10-Q, including corporate and filer status - TRXADE GROUP, INC. filed its Form 10-Q for the quarter ended June 30, 2019[2](index=2&type=chunk) - The company is incorporated in Delaware with principal executive offices in Land O' Lakes, Florida[3](index=3&type=chunk) Registrant Filer Status | Filer Status | Designation | | :---------------------- | :------------------ | | Well-known seasoned issuer | No [X] | | Not required to file reports | No [X] | | Large accelerated filer | [ ] | | Accelerated filer | [ ] | | Non-accelerated filer | [X] | | Smaller reporting company | [X] | | Emerging growth company | [ ] | | Shell company | No [X] | - As of July 26, 2019, **35,726,489** shares of common stock were outstanding[6](index=6&type=chunk) [Documents Incorporated by Reference](index=2&type=section&id=Documents%20Incorporated%20by%20Reference) No documents are incorporated by reference into this Form 10-Q, ensuring all required information is self-contained [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides Trxade Group, Inc.'s unaudited consolidated financial statements and comprehensive notes for the specified periods [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights | Metric | June 30, 2019 ($) | December 31, 2018 ($) | | :-------------------------- | :------------ | :---------------- | | Cash | 540,034 | 869,557 | | Total Current Assets | 1,952,270 | 1,466,077 | | Total Assets | 3,678,065 | 2,227,587 | | Total Current Liabilities | 1,085,163 | 860,367 | | Total Liabilities | 2,338,048 | 1,382,919 | | Total Shareholders' Equity | 1,340,017 | 844,668 | - Total assets significantly increased from **$2.23 million** at December 31, 2018, to **$3.68 million** at June 30, 2019, driven by accounts receivable, inventory, ROU assets, and equity method investment[13](index=13&type=chunk) - Shareholders' equity increased from **$844,668** to **$1,340,017**, primarily due to net income and additional paid-in capital from common stock issuance and options expense[13](index=13&type=chunk)[18](index=18&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights | Metric (Unaudited) | Three months ended June 30, 2019 ($) | Three months ended June 30, 2018 ($) | Six months ended June 30, 2019 ($) | Six months ended June 30, 2018 ($) | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | 1,916,414 | 837,688 | 3,428,935 | 1,690,611 | | Cost of Sales | 753,138 | - | 1,118,977 | - | | Gross Profit | 1,163,276 | 837,688 | 2,309,958 | 1,690,611 | | Operating Income | 132,705 | 31,446 | 304,464 | 130,174 | | Net Income | 57,981 | 20,513 | 183,210 | 102,782 | | Basic Net Income per Share | 0.00 | 0.00 | 0.01 | 0.00 | - Revenues for the six months ended June 30, 2019, more than doubled to **$3,428,935** from **$1,690,611** in the prior year, primarily due to the acquisition of Community Specialty Pharmacy, LLC[15](index=15&type=chunk)[83](index=83&type=chunk) - Net income for the six months ended June 30, 2019, increased by **78%** to **$183,210** compared to **$102,782** in the same period of 2018[15](index=15&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Changes in Shareholders' Equity (Six Months Ended June 30, 2019) | Item | Amount ($) | | :-------------------------------------------- | :--------- | | Balance at December 31, 2018 | 844,668 | | Common Stock issued for convertible debt and accrued interest | 211,983 | | Warrants exercised | 166 | | Options Expense | 99,990 | | Net Income | 183,210 | | Balance at June 30, 2019 | 1,340,017 | - Shareholders' equity increased from **$844,668** at December 31, 2018, to **$1,340,017** at June 30, 2019, driven by debt conversion, warrant exercises, options expense, and net income[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights | Cash Flow Activity (Six Months Ended June 30) | 2019 ($) | 2018 ($) | | :-------------------------------------------- | :--------- | :--------- | | Net Income | 183,210 | 102,782 | | Net Cash provided by (used in) operating activities | (79,689) | 146,456 | | Net cash Used in Investing activities | (250,000) | - | | Net Cash provided by (used in) financing activities | 166 | (122,464) | | Net increase (decrease) in Cash | (329,523) | 23,992 | | Cash at June 30 | 540,034 | 207,906 | - Operating activities shifted from providing **$146,456** in cash in 2018 to using **$79,689** in 2019, primarily due to increased inventory purchases and accounts receivable[21](index=21&type=chunk)[78](index=78&type=chunk) - Investing activities used **$250,000** in 2019 for an equity method investment (SyncHealth MSO, LLC), compared to no investing activities in 2018[21](index=21&type=chunk)[79](index=79&type=chunk) - Overall cash decreased by **$329,523** in the first six months of 2019, resulting in a cash balance of **$540,034** at June 30, 2019[21](index=21&type=chunk)[70](index=70&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes offer detailed explanations and disclosures for the unaudited consolidated financial statements, covering key accounting areas [NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION](index=8&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20BASIS%20OF%20PRESENTATION) - Trxade Group, Inc. wholly owns Trxade, Inc., Integra Pharma Solutions, LLC, Community Specialty Pharmacy, LLC (acquired Oct 2018), and Alliance Pharma Solutions, LLC[23](index=23&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Trxade, Inc. operates a web-based healthcare marketplace, Integra Pharma Solutions is a licensed pharmaceutical wholesaler, Community Specialty Pharmacy is an accredited retail pharmacy, and Alliance Pharma Solutions developed Delivmeds.com and invested in SyncHealth MSO, LLC[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) - Financial statements are prepared under GAAP and SEC rules, with interim results not necessarily indicative of full-year performance[27](index=27&type=chunk)[28](index=28&type=chunk) - The company adopted ASU No. 2016-02 (Leases) and ASU No. 2018-07 (Stock-Based Compensation) effective January 1, 2019, with no material impact from ASU 2018-07[33](index=33&type=chunk)[34](index=34&type=chunk) [NOTE 2 – SHORT-TERM DEBT AND RELATED PARTIES DEBT](index=10&type=section&id=NOTE%202%20%E2%80%93%20SHORT-TERM%20DEBT%20AND%20RELATED%20PARTIES%20DEBT) - In February 2019, **$181,500** in convertible promissory notes from 2015, plus **$211,983** accrued interest, converted into **423,966** common shares at **$0.50** per share[35](index=35&type=chunk) - As of June 30, 2019, short-term convertible notes included **$40,000** to Mr. Shilpa Patel (10% interest, due Aug 8, 2019, convertible at **$1.50**) and **$100,000** to Mr. Nitel Patel (10% interest, due July 7, 2019, convertible at **$0.62**, extended to Oct 15, 2019)[36](index=36&type=chunk)[37](index=37&type=chunk) [NOTE 3 – LONG TERM DEBT – RELATED PARTIES](index=10&type=section&id=NOTE%203%20%E2%80%93%20LONG%20TERM%20DEBT%20%E2%80%93%20RELATED%20PARTIES) - A **$300,000** promissory note was issued to Nikul Panchal in October 2018 for the Community Specialty Pharmacy acquisition, accruing **10%** annual simple interest and maturing in October 2021[38](index=38&type=chunk) - As of June 30, 2019, **$122,552** was due to Mr. Prashant Patel and **$100,000** to Mr. Suren Ajjarapu, both bearing **6%** interest and due July 1, 2020[38](index=38&type=chunk) [NOTE 4 – SHAREHOLDERS' EQUITY](index=10&type=section&id=NOTE%204%20%E2%80%93%20SHAREHOLDERS%27%20EQUITY) - In February 2019, convertible promissory notes totaling **$211,983** (principal and accrued interest) were converted into **423,966** common shares[39](index=39&type=chunk) - **16,666** warrants were exercised in February 2019 at **$0.01** per share, generating **$166** in cash[39](index=39&type=chunk) - In April and May 2019, **505,000** options were granted with exercise prices between **$0.41** and **$0.44**, vesting over four to five years[40](index=40&type=chunk) [NOTE 5 - WARRANTS](index=11&type=section&id=NOTE%205%20-%20WARRANTS) - During the six months ended June 30, 2019, **16,666** warrants were exercised, with no new grants or forfeitures[41](index=41&type=chunk) Warrant Activity (Six Months Ended June 30, 2019) | Metric | Number Outstanding | Weighted Average Exercise Price ($) | Contractual Life in Years | | :----------------------------------- | :----------------- | :---------------------------------- | :------------------------ | | Warrants Outstanding as of Dec 31, 2018 | 2,880,141 | 0.08 | 3.74 | | Warrants exercised | (16,666) | 0.01 | - | | Warrants Outstanding as of June 30, 2019 | 2,863,475 | 0.08 | 3.08 | [NOTE 6 – OPTIONS](index=11&type=section&id=NOTE%206%20%E2%80%93%20OPTIONS) - The company maintains a stock option plan allowing grants of up to **2,000,000** shares, with options vesting up to **5 years** and exercisable for up to **4.5 years**[43](index=43&type=chunk) - **505,000** options were issued during the six months ended June 30, 2019, with no forfeitures or expirations[44](index=44&type=chunk) - Total compensation cost for stock options was **$99,990** for the six months ended June 30, 2019, up from **$88,072** in 2018[45](index=45&type=chunk) Stock Option Activity (Six Months Ended June 30, 2019) | Metric | Number Outstanding | Weighted Average Exercise Price ($) | Contractual Life in Years | | :----------------------------------- | :----------------- | :---------------------------------- | :------------------------ | | Options Outstanding as of Dec 31, 2018 | 1,732,846 | 1.19 | 6.98 | | Options granted | 505,000 | 0.43 | 9.86 | | Options Outstanding as of June 30, 2019 | 2,237,846 | 0.73 | 7.27 | [NOTE 7 – LEASES](index=12&type=section&id=NOTE%207%20%E2%80%93%20LEASES) - The company adopted ASU 2018-11, Leases (Topic 842), effective January 1, 2019, using a modified retrospective approach and electing practical expedients[47](index=47&type=chunk) - Two operating leases for corporate offices were recognized, with initial Right of Use (ROU) assets totaling **$847,441** at January 1, 2019[21](index=21&type=chunk)[47](index=47&type=chunk) Operating Lease Liabilities (June 30, 2019) | Period | Amount ($) | | :------------------------------------ | :--------- | | Amounts due within twelve months of June 30, 2019 | 158,366 | | 2020 | 163,102 | | 2021 | 167,984 | | 2022 | 173,038 | | 2023 | 178,237 | | Thereafter | 305,012 | | Total minimum lease payments | 1,145,739 | | Less: effect of discounting | (334,574) | | Present value of future minimum lease payments | 811,165 | | Less: current obligations under leases | 80,832 | | Long-term lease obligations | 730,333 | [NOTE 8 – SEGMENT REPORTING](index=13&type=section&id=NOTE%208%20%E2%80%93%20SEGMENT%20REPORTING) - The company classifies its business into three reportable segments: Trxade, Community, and Other[49](index=49&type=chunk) Segment Performance (Six Months Ended June 30, 2019) | Metric | Trxade, Inc. ($) | Community Specialty Pharmacy, LLC ($) | Other ($) | Total ($) | | :-------------- | :--------------- | :------------------------------------ | :-------- | :-------- | | Revenue | 2,182,668 | 892,357 | 353,910 | 3,428,935 | | Segment Assets | 1,401,724 | 224,863 | 2,051,478 | 3,678,065 | | Segment Profit/Loss | 1,166,543 | (61,628) | (921,705) | 183,210 | - Trxade, Inc. was the primary revenue and profit driver, while Community Specialty Pharmacy and Other segments reported losses[50](index=50&type=chunk) [NOTE 9 – BUSINESS COMBINATION](index=13&type=section&id=NOTE%209%20%E2%80%93%20BUSINESS%20COMBINATION) - On October 15, 2018, Trxade Group, Inc. acquired **100%** of Community Specialty Pharmacy, LLC for **$770,291**, comprising **$300,000** cash, a **$300,000** promissory note, and **$170,291** in warrants[51](index=51&type=chunk)[52](index=52&type=chunk) - The acquisition resulted in goodwill of **$725,973**[52](index=52&type=chunk)[53](index=53&type=chunk) Pro Forma Combined Statement of Operations (Six Months Ended June 30, 2018) | Metric | Trxade ($) | CSP ($) | Combined ($) | | :----------------------------------- | :--------- | :--------- | :----------- | | Revenue | 1,690,611 | 1,323,117 | 3,013,723 | | Net Income | 102,782 | 64,800 | 167,582 | | Net Income per common share – basic | 0.00 | | 0.01 | [NOTE 10 – EQUITY METHOD INVESTMENT](index=15&type=section&id=NOTE%2010%20%E2%80%93%20EQUITY%20METHOD%20INVESTMENT) - In January 2019, Alliance Pharma Solution, LLC invested **$250,000** to acquire a **49%** equity interest in SyncHealth MSO, LLC, with an option for remaining ownership[57](index=57&type=chunk) - The company recorded its equity share in SyncHealth's losses, totaling **$58,850** for the three months and **$87,822** for the six months ended June 30, 2019[58](index=58&type=chunk) [NOTE 11 – SUBSEQUENT EVENTS](index=15&type=section&id=NOTE%2011%20%E2%80%93%20SUBSEQUENT%20EVENTS) - On July 10, 2019, Trxade Group, Inc. entered a private placement to sell **2,000,000** common shares at **$0.50** per share, generating gross proceeds of **$1,000,000**[59](index=59&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q2 2019 financial condition, operations, cash flows, liquidity, and critical accounting policies [Forward-Looking Statements](index=16&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements based on current expectations, estimates, forecasts, and projections, subject to risks and uncertainties[61](index=61&type=chunk) - The company disclaims any obligation to publicly revise or update any forward-looking statements[61](index=61&type=chunk) [Company Overview](index=17&type=section&id=Company%20Overview) - Trxade operates a B2B web-based marketplace for the US pharmaceutical industry, connecting independent pharmacies and accredited national suppliers[64](index=64&type=chunk) - The platform provides pricing transparency, purchasing capabilities, and other value-added services to over **8,500** registered pharmacy members[65](index=65&type=chunk) - Trxade Group, Inc. wholly owns Trxade, Inc., Integra Pharma Solutions, LLC, Alliance Pharma Solutions, LLC, and Community Specialty Pharmacy, LLC, and holds a **36%** interest in SyncHealth MSO, LLC[66](index=66&type=chunk) [Liquidity and Capital Resources](index=17&type=section&id=Liquidity%20and%20Capital%20Resources) [Cash and Cash Equivalents](index=17&type=section&id=Cash%20and%20Cash%20Equivalents) - Cash and cash equivalents decreased to **$540,034** at June 30, 2019, from **$869,557** at December 31, 2018[67](index=67&type=chunk)[69](index=69&type=chunk) - The decrease in cash was primarily due to a **$250,000** investment in SyncHealth, LLC[70](index=70&type=chunk) Liquidity Metrics | Metric | June 30, 2019 ($) | December 31, 2018 ($) | | :------------------------------------ | :---------------- | :-------------------- | | Cash | 540,034 | 869,557 | | Current assets (excluding cash) | 1,412,236 | 596,520 | | Current liabilities (excluding short term debt) | 945,163 | 538,867 | | Short term debt | 140,000 | 321,500 | | Working Capital | 867,107 | 605,710 | [Cash Requirements](index=18&type=section&id=Cash%20Requirements) - Primary objectives for 2019 include developing the Trxade Platform and increasing client base and operational revenue[71](index=71&type=chunk) - The company estimates operating expenses and working capital requirements for the next 12 months to be approximately **$3,500,000**[72](index=72&type=chunk) - The company expects to seek additional outside funding, acknowledging potential dilution for existing stockholders if equity securities are issued[74](index=74&type=chunk) [Cash Flows](index=18&type=section&id=Cash%20Flows) Summary of Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2019 ($) | 2018 ($) | | :----------------- | :--------- | :--------- | | Operating Activities | (79,689) | 146,456 | | Investing Activities | (250,000) | - | | Financing Activities | 166 | (122,464) | | Net increase (decrease) in Cash | (329,523) | 23,992 | - Cash used in operations for the six months ended June 30, 2019, was **$79,689**, a decrease from **$146,456** provided in the prior year, mainly due to inventory purchases and increased accounts receivable[78](index=78&type=chunk) - Investing activities in 2019 included a **$250,000** investment in SyncHealth MSO, LLC[79](index=79&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) [Six-Month Period Ended June 30, 2019 Compared to Six-Month Period Ended June 30, 2018](index=20&type=section&id=Six-Month%20Period%20Ended%20June%2030%2C%202019%20Compared%20to%20Six-Month%20Period%20Ended%20June%2030%2C%202018) Six-Month Operating Results Comparison | Metric | June 30, 2019 ($) | June 30, 2018 ($) | | :------------------------ | :---------------- | :---------------- | | Revenues | 3,428,935 | 1,690,611 | | Cost of Sales | 1,118,977 | - | | Gross Profit | 2,309,958 | 1,690,611 | | General and Administrative | 1,905,504 | 1,472,365 | | Total Operating Expense | 2,005,494 | 1,560,437 | | Income from Operations | 183,210 | 102,782 | - Revenues increased by **$1,738,324** (**102.8%**) due to the acquisition of Community Specialty Pharmacy, LLC[83](index=83&type=chunk) - General and administrative expenses increased to **$1,905,504** from **$1,472,365**, primarily due to increased rent and employee compensation from the Community Specialty Pharmacy acquisition[84](index=84&type=chunk) [Three Month Period Ended June 30, 2019 Compared to Three Month Period Ended June 30, 2018](index=20&type=section&id=Three%20Month%20Period%20Ended%20June%2030%2C%202019%20Compared%20to%20Three%20Month%20Period%20Ended%20June%2030%2C%202018) Three-Month Operating Results Comparison | Metric | June 30, 2019 ($) | June 30, 2018 ($) | | :------------------------ | :---------------- | :---------------- | | Revenues | 1,916,414 | 837,688 | | Cost of Sales | 753,138 | - | | Gross Profit | 1,163,276 | 837,688 | | General and Administrative | 966,560 | 755,626 | | Total Operating Expense | 1,030,571 | 806,242 | | Income from Operations | 57,981 | 20,513 | - Revenues increased by **$1,078,726** (**128.8%**) for the three months ended June 30, 2019, primarily due to the Community Specialty Pharmacy acquisition[86](index=86&type=chunk) - General and administrative expenses rose to **$966,560** from **$755,164**, mainly due to increased rent and employee compensation from the acquisition[87](index=87&type=chunk) [Off-Balance Sheet Arrangements](index=21&type=section&id=Off-Balance%20Sheet%20Arrangements) - The company had no outstanding off-balance sheet arrangements as of June 30, 2019[88](index=88&type=chunk) [Critical Accounting Policies](index=22&type=section&id=Critical%20Accounting%20Policies) [Revenue Recognition](index=22&type=section&id=Revenue%20Recognition) - Revenue recognition follows ASC 606, 'Revenue from Contracts with Customers'[91](index=91&type=chunk) - Trxade, Inc. recognizes revenue as an agent (net basis) from transaction fees charged to suppliers on its web-based marketplace when orders are processed[91](index=91&type=chunk) - Integra Pharma Solutions, LLC, a wholesaler, recognizes revenue when the customer receives the product[92](index=92&type=chunk) - Community Specialty Pharmacy, LLC, a retail pharmacy, recognizes revenue after prescription delivery, considering expected reimbursements from third-party payors[93](index=93&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms the absence of applicable quantitative and qualitative disclosures regarding market risk for the company - The company has no applicable quantitative and qualitative disclosures about market risk[94](index=94&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) This section evaluates disclosure controls and procedures, noting their ineffectiveness as of June 30, 2019 [Disclosure Controls and Procedures](index=23&type=section&id=Disclosure%20Controls%20and%20Procedures) - The Certifying Officers concluded that the company's disclosure controls and procedures were not effective as of June 30, 2019[95](index=95&type=chunk)[102](index=102&type=chunk) - This ineffectiveness indicates that information for SEC reports was not recorded, processed, summarized, and reported within specified time periods, nor was material information appropriately communicated to management[102](index=102&type=chunk) [Changes in Internal Control over Financial Reporting](index=23&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no material changes in internal control over financial reporting during the three months ended June 30, 2019[96](index=96&type=chunk) [PART II. OTHER INFORMATION](index=23&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) This section confirms that there are no legal proceedings requiring disclosure - There are no legal proceedings to report[98](index=98&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) No changes in risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2018 - No change in risk factors since the Annual Report on Form 10-K for the year ended December 31, 2018[99](index=99&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered equity security sales, including stock options and a private placement of common stock - In April and May 2019, **505,000** options to purchase common stock were granted under the 2014 Equity Incentive Plan, with exercise prices ranging from **$0.41** to **$0.44**[100](index=100&type=chunk) - On July 10, 2019, the company completed a private placement of **2,000,000** common shares at **$0.50** per share, raising gross proceeds of **$1,000,000**[101](index=101&type=chunk) - These issuances were exempt from registration under Rule 701 or Section 4(2), Rule 506 of Regulation D, and/or Regulation S of the Securities Act[102](index=102&type=chunk) [Item 3. Defaults Upon Senior Securities](index=24&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms no defaults upon senior securities are to be reported - There are no defaults upon senior securities[103](index=103&type=chunk) [Item 4. Mine Safety Disclosures](index=24&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that no mine safety disclosures are applicable to the company - There are no mine safety disclosures[104](index=104&type=chunk) [Item 5. Other Information](index=24&type=section&id=Item%205.%20Other%20Information) This section confirms no other information requires disclosure under this item [Item 6. Exhibits](index=24&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data List of Exhibits | Exhibit No. | Description | | :---------- | :----------------------------------------------------------------------- | | 31.A | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 31.B | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | | 32.A | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | | 32.B | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | | 101 | XBRL | [SIGNATURES](index=25&type=section&id=SIGNATURES) [Signatures](index=25&type=section&id=Signatures) This section contains the official signatures of the CEO and CFO, certifying the Form 10-Q filing on July 26, 2019 - The report was signed by Suren Ajjarapu, Chief Executive Officer, and Howard Doss, Chief Financial Officer, on July 26, 2019[109](index=109&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2019 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ to _______ Securities registered pursuant to Section 12(g) of the Act: None (Title of Class) Indicate by check mark if the registrant is a well-known seasone ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from___________ to ___________. Commission file number: 000-55218 TRXADE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 46-3673928 (State or other ju ...