TRxADE HEALTH(US:MEDS)2025-11-12 22:30Financial Performance - Revenues for Q3 2025 reached $590,050, a significant increase from $64,861 in Q3 2024, representing a growth of 810%[17] - Gross profit for Q3 2025 was $574,621, compared to $3,883 in Q3 2024, indicating a substantial improvement[17] - Operating loss for Q3 2025 was $4,361,206, compared to a loss of $3,497,791 in Q3 2024, indicating an increase in losses[17] - Net loss from continuing operations for the nine months ended September 30, 2025, was $13,391,931, compared to $11,441,764 for the same period in 2024[17] - The company reported a net loss of $3,607,361 for Q3 2025, compared to a net loss of $3,183,601 in Q3 2024[17] - For the nine months ended September 30, 2025, the net loss from continuing operations was $13,391,931, compared to a net loss of $11,441,764 for the same period in 2024, representing an increase of approximately 17.1%[22] Assets and Liabilities - Total current assets decreased to $1,421,074 as of September 30, 2025, down from $6,305,477 as of December 31, 2024[14] - Total liabilities decreased to $22,160,659 as of September 30, 2025, compared to $25,781,684 as of December 31, 2024, reflecting a reduction of approximately 14%[14] - Cash balance increased to $355,692 as of September 30, 2025, up from $308,096 as of December 31, 2024[14] - Total stockholders' equity increased to $82,669,631 as of September 30, 2025, compared to $79,072,121 as of December 31, 2024[14] Stock and Equity Transactions - The weighted average common shares outstanding increased to 18,957,653 for Q3 2025, compared to 2,373,848 for Q3 2024[17] - The company generated gross proceeds of $11,469,318 from the issuance of common stock during the nine months ended September 30, 2025[22] - The company issued an aggregate of 7,103,614 shares of common stock for net proceeds of $9,008,199 during the nine months ended September 30, 2025[137] - In July 2025, the company raised $1,679,993 by selling 1,078,614 shares of common stock through a capital raise approved by the board of directors[153] - On August 15, 2025, the company issued 3,225,000 shares of common stock for aggregate proceeds of $3,549,184 as part of a registered direct offering[154] Acquisitions and Divestitures - The company completed the acquisition of Scienture, LLC in July 2024, which is focused on the research and development of branded pharmaceutical products[24] - The company disposed of Bonum Health, LLC on April 30, 2025, which was formed to hold certain telehealth assets[25] - The Company completed the sale of its subsidiaries IPS, Softell, and Bonum Health, Inc. to Tollo for a $5 million promissory note[34] - The Company acquired intangible assets worth $76.4 million and recognized goodwill of $21.37 million during the Scienture acquisition[55] - The Company recognized a gain on the disposition of Softell amounting to $29,685,946, included in income from discontinued operations for the year ended December 31, 2024[86] Research and Development - The product technologies acquired in the Scienture acquisition include new potential treatments for hypertension, migraine, pain, and thrombosis, which are in various phases of development[60] - Scienture has four primary product candidates in its development pipeline, focusing on novel treatments for hypertension, migraine, pain, and thrombosis[212] Financial Obligations and Debt - The outstanding balance of the NVK debt was $2,656,250 as of September 30, 2025, after a maturity extension[124] - The Company issued a senior secured promissory note (Streeterville Note) for $3,911,111.11 with a 9% interest rate and received net proceeds of $3,500,000, which were used for working capital and debt repayment[190] - The Company sold 15,722,759 shares under the ATM Program, generating $15,568,236 in gross proceeds, which were used to fully repay the Streeterville Note[192] Compensation and Expenses - The Company recognized a stock-based compensation expense of $1,512,995 during the nine months ended September 30, 2025, related to the cancellation of stock options[139] - The total compensation cost related to stock options granted was $144,565 for the three months ended September 30, 2025, compared to $437 for the same period in 2024[162] - For the nine months ended September 30, 2025, total compensation cost related to stock options granted was $307,439, up from $25,147 in 2024[163] Strategic Realignment - 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[35] - The Company aims to strengthen its balance sheet and improve operational efficiency through the recent restructuring efforts[211]