TRxADE HEALTH(US:MEDS)2023-03-28 01:30Financial Data and Key Metrics Changes - Consolidated revenue for 2022 increased by 16% to $11.4 million compared to $9.9 million in 2021, driven by improved revenue on the TRxADE platform and TRxADE Prime [39] - TRxADE platform revenue increased by 10%, while TRxADE Prime revenue grew by 46% in 2022 compared to 2021 [39] - Net loss for 2022 was $3.9 million or $0.41 loss per share, an improvement from a net loss of $5.3 million or $0.65 loss per share in 2021 [41] - Gross profit improved by $700,000 but remained consistent at 48% as a percentage of revenue year-over-year [40] Business Line Data and Key Metrics Changes - TRxADE Prime saw a gross margin improvement from a negative 12% in 2021 to a positive 1% in 2022, reflecting a 13% improvement [15] - Community specialty pharmacy revenue decreased by 29% in 2022 compared to 2021 [39] Market Data and Key Metrics Changes - The company has over 14,400 registered members on its platform, with approximately 1,212 new members added in fiscal 2022 compared to 790 in fiscal 2021 [12] - The independent pharmacy market maintains an estimated annual purchasing power of approximately $67 billion [10] Company Strategy and Development Direction - The company is focusing on innovation and partnerships to drive its core business-to-business strategy while diversifying its revenue base [18] - Plans to sell subsidiary companies are part of the strategy to concentrate on the core business model [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of technology and product development to support local pharmacies and enhance customer service [9] - The company aims to improve gross margins and reduce overhead costs moving forward [39] Other Important Information - Cash and cash equivalents decreased to $1.1 million as of December 31, 2022, from $3.1 million in 2021, primarily due to inventory purchases and legal settlements [17] Q&A Session Summary Question: Status of speaking with group purchasing organizations related to TRxADE Prime - Management indicated that they are working with approximately 1,300 new pharmacies and aim to increase this to 1,500 [21][23] Question: Future liability for the SOSRx partnership - Management confirmed there are no future liabilities related to the SOSRx partnership [25][45] Question: Mix between branded and generics on the TRxADE platform - The current mix is approximately 60% generics and 40% brand, with a goal to shift towards 70%-75% generics [54] Question: Constraints with overseas manufacturing - Management stated that supply chain issues have returned to normal post-COVID [55] Question: Streamlining of operating expenses - Management indicated that streamlining will focus on technology and professional fees [56]