TRxADE HEALTH(US:MEDS)2024-04-22 21:26Financial Performance - Total revenues for the year ended December 31, 2023, were $8,272,214, a decrease of $1,977,954 or 19.3% compared to $10,250,168 in 2022 [290]. - The cost of sales increased to $5,673,957 for the year ended December 31, 2023, up 19.9% from $4,730,897 in 2022, leading to a gross profit of $2,598,257, down 52.9% from $5,519,271 [290]. - The company recognized a net loss from operations of $13,720,546 for the year ended December 31, 2023, an increase of $11,317,104 or 470.9% compared to a net loss of $2,403,442 in 2022 [303]. - Net loss from continuing operations for the fiscal year ended December 31, 2023, was $13,720,546, an increase of 470.9% compared to $2,403,442 in 2022 [313]. Cash Flow and Working Capital - As of December 31, 2023, the company reported a working capital deficit of $8,803,293, a significant increase from a deficit of $53,668 as of December 31, 2022, reflecting a decrease in cash and an increase in liabilities [281]. - Cash decreased by approximately $943,000 from December 31, 2022, to December 31, 2023, primarily due to $250,000 in debt repayments and $733,694 paid for interest expenses related to future accounts receivable [283]. - Cash used in operating activities for the fiscal year ended December 31, 2023, was $2,073,601, compared to $1,564,668 in 2022, reflecting a 32.5% increase [314]. - Cash provided by financing activities for the fiscal year ended December 31, 2023, was $1,406,332, a significant increase from cash used in financing activities of $35,171 in 2022, representing a change of 4,098.6% [316]. - Cash and cash equivalents were $151,908 as of December 31, 2023, indicating a need for additional funding to sustain operations [305]. - The company estimates operating expenses and working capital requirements for 2024 to be approximately $4,800,000 [310]. Expenses and Liabilities - Technology, research, and development expenditures rose to $1,376,908 in 2023, a 38.6% increase from $993,185 in 2022, as the company focused on improving its platform technology [294]. - Professional fees surged by $999,832 to $1,466,567 in 2023, primarily due to costs associated with the merger with Superlatus and the acquisition of The Urgent Company [295]. - Current liabilities (excluding short-term debt) increased by $3,046,231 from $1,980,124 to $5,026,355 for the year ended December 31, 2023, driven by higher accounts payable and contingent funding liabilities [308]. - The company reported a goodwill impairment loss of $5,129,115 for the year ended December 31, 2023, related to the acquisition of Superlatus [302]. Strategic Plans and Future Funding - The company plans to explore strategic transactions, relationships, or acquisitions to grow operations, with potential funding sources including equity investments and notes payable [311]. - The company may require additional funding in the future, which could lead to significant dilution for existing stockholders if raised through equity [311]. Accounting and Reporting - Stock-based compensation is accounted for in accordance with ASC 718, recognizing compensation expense over the vesting period [337]. - The company adopted ASU 2018-07 for accounting of share-based payments granted to non-employees effective January 1, 2019 [337]. - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures [340]. - The company reviews all contingencies at least quarterly to assess potential loss estimates [336]. Investment Activities - Cash used in investing activities for the year ended December 31, 2023, was $275,717, a decrease of 35.6% from $427,845 in 2022 [315]. - Contractual obligations as of December 31, 2023, total $651,528, with $187,935 due within one year [318].