TRxADE HEALTH(US:MEDS)2023-03-27 20:15Financial Performance - Revenues for the year ended December 31, 2022, increased by $1,558,832 or 15.8% to $11,448,265, compared to $9,889,433 for 2021[355] - Gross profit for the year ended December 31, 2022, was $5,451,216, representing a 14.9% increase from $4,745,965 in 2021[355] - Integra Pharma Solutions' revenue increased by $1,503,506 or 46% due to increased sales volume and pricing changes[356] - Net loss decreased by $1,406,015 to $3,909,868 for the year ended December 31, 2022, compared to a net loss of $5,315,883 for the year ended December 31, 2021, representing a 26% improvement[366][378] Operating Expenses - Total operating expenses decreased by 1.6% to $9,875,511 for the year ended December 31, 2022, compared to $10,038,258 in 2021[355] - Loss on inventory investment was $875,520 for the year ended December 31, 2022, compared to $1,225,141 in 2021[362] - Interest expense increased significantly to $315,217 for the year ended December 31, 2022, from $23,590 in 2021, due to funding agreements[365] Cash Flow and Capital - Cash and cash equivalents were $1,133,633 at December 31, 2022, down from $3,122,578 at the end of 2021[368] - Cash used by operations decreased to $1,525,929 in 2022 from $2,566,226 in 2021, a reduction of 41%[379] - Cash flows from operating activities improved by $1,040,297, reflecting a 41% decrease in cash used compared to the previous year[378] - Cash used in investing activities increased significantly to $427,845 in 2022 from $22,596 in 2021, primarily for capitalized software investments[380] - The company raised approximately $1.3 million in 2022 through the exercise of warrants and a stock placement of 920,000 shares at $1.15 per share[375] - The company anticipates the need for additional funding in the next 12 months to maintain operations and support potential acquisitions[346] - The company anticipates needing additional capital or debt funding to support ongoing operations and expansion efforts[373][376] Liabilities and Current Position - Working capital decreased by $3,501,886 to negative $53,668 as of December 31, 2022, compared to $3,448,218 as of December 31, 2021[344] - Current liabilities increased by $1,220,765 to $2,146,791 for the year ended December 31, 2022, primarily due to increased notes payable related to a joint venture[372] Taxation and Legal Matters - The company is subject to income taxes in the U.S., requiring significant judgments and estimates for the consolidated income tax provision[397] - Deferred income taxes arise from temporary differences between tax and financial statement recognition of revenue and expense, with considerations of past operating results and future taxable income forecasts[398] - Changes in tax laws and rates could materially impact the company's tax expense and cash flows in the future[399] - The company may face various claims and legal actions, with liabilities recorded when a loss is probable and reasonably estimable[400] - The likelihood of loss from contingencies is reviewed quarterly, and meaningful estimates can be complex due to dependence on future negotiations[401] Research and Development - Technology, research, and development expenditures were $1,160,856 for 2022, a decrease from $1,367,895 in 2021[359] - The company plans to continue developing information technology used in its subsidiaries and will rely on customer feedback for product improvements[346] Stock-Based Compensation - Stock-based compensation is accounted for based on the grant date fair value, recognized as compensation expense over the vesting period[402] - The company adopted ASU 2018-07 for accounting of share-based payments granted to non-employees effective January 1, 2019[402] Reporting and Compliance - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[405] - The company has no outstanding off-balance sheet arrangements as of December 31, 2022[384]