TRxADE HEALTH(MEDS) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2025, were $10,258, compared to $0 for the same period in 2024, indicating a significant increase[17]. - Gross profit for Q1 2025 was $673, resulting in a gross margin of approximately 6.57%[17]. - Operating expenses decreased to $3.57 million in Q1 2025 from $5.49 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 $6.63 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 $6.40 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 $6,633,422 in the same period in 2024[194]. Assets and Liabilities - Total assets increased to $106.36 million as of March 31, 2025, compared to $104.85 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 $25.78 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 $79.07 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 $2,049,638 in cash[67]. - Current liabilities decreased by 6% to $7,461,666 as of March 31, 2025, from $7,906,893 as of December 31, 2024[172]. Cash Flow - Cash and cash equivalents increased significantly to $2.05 million as of March 31, 2025, from $0.31 million at December 31, 2024[13]. - Net cash used in operating activities from continuing operations was $2,956,457, significantly reduced from $9,659,231 in the prior year[1]. - Cash provided by investing activities was $0 for the three months ended March 31, 2025, compared to $27,432,589 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 $10,189,673 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 $574,679 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]. - As of March 31, 2025, the total debt of the company is $5,333,333, net of unamortized debt discount of $2,240,872, resulting in a net debt of $3,092,462[111]. - The company entered into a loan agreement with NVK Finance for $2,000,000, 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 $21,372,960 in goodwill and $76,400,000 in intangible assets related to product technologies[72]. - The Company recorded goodwill of $21,372,960 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 $36,402 for Q1 2025, compared to $12,840 in Q1 2024, reflecting a significant increase[144]. - The company has future lease obligations totaling $241,392, 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].