TRxADE HEALTH(MEDS) - 2024 Q2 - Quarterly Report

Financial Position - As of June 30, 2024, the company's cash balance increased significantly to $7,719,993 from $314 as of December 31, 2023[6] - Total current assets rose to $12,144,444, a substantial increase from $2,753,063 at the end of 2023, indicating strong liquidity[6] - The company's total assets reached $14,848,533, up from $12,532,913, reflecting overall growth[6] - Current liabilities decreased to $2,902,089 from $11,556,355, showing improved financial health[6] - Stockholders' equity increased dramatically to $11,785,448 from $542,353, indicating a positive shift in the company's financial position[6] - The company reported an accumulated deficit reduction from $(33,245,940) to $(26,504,881), suggesting improved operational performance[6] - The accumulated deficit as of June 30, 2024, was $(26,504,881), reflecting the ongoing financial challenges faced by the company[8] Revenue and Expenses - Revenues for the three months ended June 30, 2024, were $18,699, compared to $366,526 for the same period in 2023, representing a decrease of approximately 94.9%[7] - Operating expenses for the three months ended June 30, 2024, totaled $1,494,988, a significant increase from $666,921 in the same period of 2023, reflecting a rise of approximately 124.8%[7] - The net loss for the three months ended June 30, 2024, was $1,833,902, compared to a net loss of $1,974,878 for the same period in 2023, indicating a slight improvement of about 7.1%[7] - The company reported a basic net loss per share from continuing operations of $(1.16) for the three months ended June 30, 2024, compared to $(3.27) for the same period in 2023[7] - Total operating loss for the six months ended June 30, 2024, was $(6,988,662), compared to $(1,381,176) for the same period in 2023, reflecting a significant increase in losses[7] - Revenues for the six months ended June 30, 2024, were $970,808, compared to $3,655,944 for the same period in 2023, representing a decrease of approximately 73%[48] - The total operating expenses for the six months ended June 30, 2024, were $902,719, down from $2,390,264 in the same period of 2023, indicating a reduction of about 62%[48] Cash Flow - Net cash used in operating activities from continuing operations was $5,197,913 for the six months ended June 30, 2024, compared to $1,259,477 in 2023[6] - Cash used in operating activities for the six months ended June 30, 2024, was $5,967,718, compared to $602,965 for the same period in 2023, representing an increase of 892%[128] - Cash provided by investing activities for the six months ended June 30, 2024, was $27,431,815, a significant increase from $281,394 in the same period of 2023, reflecting a change of 9750%[128] - Cash used in financing activities for the six months ended June 30, 2024, was $13,896,011, compared to $44,024 in the same period of 2023, marking an increase of 31453%[129] Investments and Acquisitions - The company completed the acquisition of Superlatus on July 31, 2023, with shareholders receiving 136,441 shares of common stock, valued at $225,000,169[13] - The company divested its interest in Superlatus on March 5, 2024, for a nominal price of $1.00, ceasing it as a subsidiary[15] - The company completed an asset purchase agreement with MMS for Trxade, Inc. with a purchase price of $22,660,182, plus a potential milestone payment of $7,500,000[44][45] - The company entered into an Asset Purchase Agreement with The Urgent Company, Inc. for a total consideration of $4,400,000, allocated as $4,168,830 for inventory and $231,170 for property and equipment[40][41] Stock and Equity - The company executed a 1:15 reverse stock split effective June 21, 2023, to comply with Nasdaq Listing Rule 5550(a)(2)[19] - The Company approved the issuance of restricted common stock valued at $55,000 annually to each independent Board member[81] - The Company increased the available shares under the 2019 Equity Incentive Plan to 5,000,000 shares as of July 24, 2024[83] - The company revoked the authorization to issue Series A Preferred Stock and authorized up to 9,211,246 shares of Series X Preferred Stock[101] Legal and Regulatory Matters - A settlement was reached in the Studebaker case, ordering Studebaker to pay $550,000 to the Company, with payments commencing on May 1, 2023, but no payments have been received as of the filing date[90] - The Company has not received monthly installment payments from GSG since January 2023, despite a settlement agreement requiring payments totaling $743,000[91] - The Company recorded a loss of $500,000 related to the Studebaker case as of June 30, 2021, which was later reversed upon winning the case[88] Future Outlook - The company plans to raise additional capital or secure debt funding to support ongoing operations and potential acquisitions[35] - The company expects to integrate Scienture's assets and operations and continue developing the Trxade Prime platform, with projected expenses of $4,800,000 for general and administrative costs from July 2024 to June 2025[124] - The company anticipates future capital resources will primarily consist of cash generated from operations, remaining cash balances, borrowings, and additional funds raised through sales of debt and/or equity securities[120]