Trxade Group, Inc. (NASDAQ: MEDS), a health services IT
company focused on digitalizing the retail pharmacy experience by
optimizing drug procurement, the prescription journey and patient
engagement in the U.S., today announced its financial results for
the first quarter ended March 31, 2021.
Selected Financial Highlights
$ in millions |
|
Q12021 |
|
Q12020 |
|
% Increase (Decrease) |
Revenues |
|
$3.1 |
|
$2.2 |
|
39% |
Gross
Profit |
|
$1.4 |
|
$1.6 |
|
(16%) |
Gross Profit
Percentage |
|
45% |
|
74% |
|
(39%) |
Net Income
(Loss) |
|
($0.7) |
|
$0.2 |
|
(446%) |
Adjusted
EBITDA1 |
|
($0.5) |
|
$0.3 |
|
(244%) |
1 Adjusted EBITDA is a non-GAAP financial measure and is
described in relation to its most directly comparable GAAP measure
under “Use of Non-GAAP Financial Information” below.
First Quarter
2021 and Subsequent Operational
Highlights
-
Trxade continued to expand the Trxade drug procurement marketplace
nationwide, adding 223 new registered members in Q1 2021, bringing
the total registered members to approximately 12,100+.
-
Signed enterprise retail partnerships to onboard new customers to
our telehealth platform, with approximately 500+ stores offering
our signature Bonum Health product to thousands of customers
spanning all 50 states.
-
Appointed technology entrepreneur and industry thought leader James
Ram to lead the Company's newly launched MedCheks subsidiary in its
efforts to bring a Digital Health Passport to market, allowing the
holder to display vaccination and COVID-19 testing status.
Management Commentary
“We are pleased to have started 2021 achieving
record first quarter growth, while concurrently making impressive
operational progress spanning all business units,” said Suren
Ajjarapu, Chairman and Chief Executive Officer, who further stated,
“Our exciting suite of affiliated services – from our comprehensive
telehealth solution, to digital health passports enabling a safe
reopening with an attractive pay-per-scan business model – continue
to broaden our reach as a company, empowering independent
pharmacies with technology to make them indispensable local health
hubs.”
“We have been anything but idle in 2021 and have
been pounding the pavement to broaden the reach of our Bonum Health
Telehealth partnerships, signing strategic partnerships with
brand-name stores nationwide, such as Kinney Drugs, ProAct,
Brookshire Grocery Company, SpartanNash and most recently, Big Y
Foods, as well as others which we’ve been unable to announce per
the terms of our agreements, to build a truly national platform.
Approximately 500+ stores offer Bonum Health services to thousands
of users in all 50 states and we anticipate continued growth in the
quarters to come as we ramp up our strategic partnerships and see
an increasing number of employers turning to our turnkey telehealth
solution.
“Bonum Health is focused on bolstering its value
proposition and building its brand identity as part of its mission
to become a leading force in the telehealth marketplace. We
continue to integrate exciting new solutions into the Bonum Health
offering, including a direct-to-patient prescription drug coupon
platform through our partnership with SingleCare, the capability to
stream patient lab results directly into the Bonum Health virtual
electronic medical records, and remote patient monitoring. These
product enhancements, paired with our digital marketing strategy,
which we are ramping up, provide us with accelerated access into
new key markets alongside our enterprise retail partners.”
“We believe we are incredibly well positioned as
we stand today, poised to monetize several emerging revenue streams
in addition to the steady progress made by our high-margin Trxade
Exchange core platform. I look forward to aggressive operational
execution in the months ahead as we seek to create sustainable,
long-term value for our shareholders,” concluded Ajjarapu.
First Quarter
2021 Financial Summary
-
Revenues for the first quarter of 2021 increased 39% to $3.1
million, as compared to revenue of $2.2 million in the same quarter
last year. The increase in revenue was primarily due to higher
sales by our Integra Pharma Solutions subsidiary.
-
Gross profit in the first quarter of 2021 totaled $1.4 million, or
45% of revenues, compared to gross profit of $1.6 million, or 74%
of revenues, in the same quarter last year. The decrease in gross
profit was primarily attributable to the cost of Personal
Protective Equipment (PPE) related purchased products in the
current period, while revenues from the Trxade Platform (which made
up the majority of revenues last year) carry no cost of sales.
-
Operating expenses in the first quarter of 2021 were $2.0 million,
compared to $1.5 million in the same quarter last year. This change
is primarily due to IT development, legal expenses and marketing
expenses related to the recently launched Bonum Health and MedCheks
platforms.
-
Net loss in the first quarter of 2021 was $0.7 million, or $0.08
per basic and diluted share outstanding, compared to net income of
$0.2 million, or $0.03 per basic share outstanding, in the same
quarter last year.
-
Adjusted EBITDA, a non-GAAP financial measure, decreased 243% to
negative $0.5 million, compared to positive $0.4 million in the
same quarter last year.
- Cash and cash equivalents were $5.2
million as of March 31, 2021, compared with $5.9 million as of
December 31, 2020.
Conference Call and Webcast
Management will host a conference call on
Monday, April 26, 2021 at 5:00 p.m. Eastern time to discuss Trxade
Group’s first quarter 2021 financial results. The call will
conclude with a Q&A from participants. To participate, please
use the following information:
Q1 2021 Conference
Call and WebcastDate: Monday, April 26, 2021Time: 5:00
p.m. Eastern timeU.S. Dial-in: 1-877-425-9470International Dial-in:
1-201-0878Conference ID: 13718446Webcast:
http://public.viavid.com/index.php?id=144243
Please dial in at least 10 minutes before the
start of the call to ensure timely participation.
A playback of the call will be available through
May 26, 2021. To listen, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally and enter
replay pin number 13718446. A webcast will also be available for 30
days on the IR section of the Trxade Group website or by clicking
the webcast link above.
About Trxade Group,
Inc.Trxade Group (NASDAQ: MEDS) is a health services IT
company focused on digitalizing the retail pharmacy experience by
optimizing drug procurement, the prescription journey and patient
engagement in the U.S. The Company operates the TRxADE drug
procurement marketplace serving a total of 12,100+ members
nationwide, fostering price transparency and under the Bonum Health
brand, offering patient centric telehealth services. For more
information on Trxade Group, please visit the Company’s IR website
at investors.trxadegroup.com.
Use of Non-GAAP Financial
InformationThis earnings release discusses EBITDA and
Adjusted EBITDA. These measurements are not recognized in
accordance with generally accepted accounting principles (GAAP) and
should not be viewed as an alternative to GAAP measures of
performance. EBITDA represents net income before interest, taxes,
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
before stock-based compensation expense and gain (loss) in equity
investment. EBITDA and Adjusted EBITDA are presented because we
believe they provide additional useful information to investors due
to the various noncash items during the period. EBITDA and Adjusted
EBITDA have limitations as analytical tools, and you should not
consider them in isolation, or as a substitute for analysis of our
operating results as reported under GAAP. Some of these limitations
are: EBITDA and Adjusted EBITDA do not reflect cash expenditures,
future requirements for capital expenditures, or contractual
commitments; EBITDA and Adjusted EBITDA do not reflect changes in,
or cash requirements for, working capital needs; and EBITDA and
Adjusted EBITDA do not reflect the significant interest expense, or
the cash requirements necessary to service interest or principal
payments, on debt or cash income tax payments. Although
depreciation and amortization are noncash charges, the assets being
depreciated and amortized will often have to be replaced in the
future, and EBITDA and Adjusted EBITDA do not reflect any cash
requirements for such replacements. Additionally, other companies
in our industry may calculate EBITDA and Adjusted EBITDA
differently than Trxade Group, Inc. does, limiting its usefulness
as a comparative measure. See also “Reconciliation of Net Income
attributable to Trxade Group, Inc., to Earnings before Interest,
Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA”,
below.
Forward-Looking StatementsThis
press release may contain forward-looking statements, including
information about management’s view of Trxade’s future
expectations, plans and prospects, within the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995 (the “Act”). In particular, when used in the preceding
discussion, the words “may,” “could,” “expect,” “intend,” “plan,”
“seek,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “continue,” “likely,” “will,” “would” and variations
of these terms and similar expressions, or the negative of these
terms or similar expressions are intended to identify
forward-looking statements within the meaning of the Act, and are
subject to the safe harbor created by the Act. Any statements made
in this news release other than those of historical fact, about an
action, event or development, are forward-looking statements. These
statements involve known and unknown risks, uncertainties and other
factors, which may cause the results of Trxade, its divisions and
concepts to be materially different than those expressed or implied
in such statements. These risks include risks of our operations not
being profitable; claims relating to alleged violations of
intellectual property rights of others; technical problems with our
websites; risks relating to implementing our acquisition
strategies; our ability to manage our growth; negative effects on
our operations associated with the opioid pain medication health
crisis; regulatory and licensing requirement risks; risks related
to changes in the U.S. healthcare environment; the status of our
information systems, facilities and distribution networks; risks
associated with the operations of our more established competitors;
regulatory changes; healthcare fraud; COVID-19, governmental
responses thereto, economic downturns and possible recessions
caused thereby; changes in laws or regulations relating to our
operations; privacy laws; system errors; dependence on current
management; our growth strategy; and others that are included from
time to time in filings made by Trxade with the Securities and
Exchange Commission, including, but not limited to, in the “Risk
Factors” sections in its Form 10-Ks and Form 10-Qs and in its Form
8-Ks, which it has filed, and files from time to time, with the
U.S. Securities and Exchange Commission. These reports are
available at www.sec.gov. Other unknown or unpredictable factors
also could have material adverse effects on Trxade’s future results
and/or could cause our actual results and financial condition to
differ materially from those indicated in the forward-looking
statements. The forward-looking statements included in this press
release are made only as of the date hereof. Trxade cannot
guarantee future results, levels of activity, performance or
achievements. Accordingly, you should not place undue reliance on
these forward-looking statements. We undertake no obligation to
update publicly any of these forward-looking statements to reflect
actual results, new information or future events, changes in
assumptions or changes in other factors affecting forward-looking
statements, except to the extent required by applicable laws. If we
update one or more forward-looking statements, no inference should
be drawn that we will make additional updates with respect to those
or other forward-looking statements.
Investor Relations:Lucas
ZimmermanSenior Vice PresidentMZ Group - MZ North America(949)
259-4987MEDS@mzgroup.us www.mzgroup.us
Trxade Group,
Inc.Consolidated Balance
SheetsMarch 31, 2021 and December 31,
2020(unaudited)
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
Cash |
|
$ |
5,209,280 |
|
|
$ |
5,919,578 |
|
Accounts Receivable, net |
|
|
1,936,850 |
|
|
|
805,043 |
|
Inventory |
|
|
470,122 |
|
|
|
1,257,754 |
|
Prepaid Assets |
|
|
457,738 |
|
|
|
151,248 |
|
Other Receivables |
|
|
1,081,250 |
|
|
|
1,087,675 |
|
Total Current Assets |
|
|
9,155,240 |
|
|
|
9,221,298 |
|
|
|
|
|
|
|
|
|
|
Property Plant and
Equipment, Net |
|
|
160,647 |
|
|
|
162,397 |
|
|
|
|
|
|
|
|
|
|
Other
Assets |
|
|
|
|
|
|
|
|
Deposits |
|
|
21,636 |
|
|
|
21,636 |
|
Right of use leased assets |
|
|
355,693 |
|
|
|
387,371 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
9,693,216 |
|
|
$ |
9,792,702 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts Payable |
|
$ |
366,471 |
|
|
$ |
256,829 |
|
Accrued Liabilities |
|
|
519,179 |
|
|
|
219,256 |
|
Current Portion Lease Liabilities |
|
|
117,030 |
|
|
|
131,153 |
|
Customer Deposits |
|
|
10,000 |
|
|
|
10,000 |
|
Notes Payables – Related Party |
|
|
225,000 |
|
|
|
225,000 |
|
Total Current Liabilities |
|
|
1,237,680 |
|
|
|
842,238 |
|
|
|
|
|
|
|
|
|
|
Long Term
Liabilities |
|
|
|
|
|
|
|
|
Other Long-Term Liabilities — Leases |
|
|
253,912 |
|
|
|
271,306 |
|
Total Liabilities |
|
|
1,491,592 |
|
|
|
1,113,544 |
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
|
|
|
|
Series A Preferred Stock,
$0.00001 par value; 10,000,000 shares authorized; none issued and
outstanding as of March 31, 2021 and December 31, 2020,
respectively |
|
|
- |
|
|
|
- |
|
Common Stock, $0.00001 par value; 100,000,000 shares authorized;
8,093,199 shares issued and outstanding as of March 31, 2021 and
December 31, 2020 |
|
|
81 |
|
|
|
81 |
|
Additional Paid-in Capital |
|
|
19,784,616 |
|
|
|
19,610,631 |
|
Accumulated Deficit |
|
|
(11,583,073 |
) |
|
|
(10,931,554 |
) |
Total Stockholders’ Equity |
|
|
8,201,624 |
|
|
|
8,679,158 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
9,693,216 |
|
|
$ |
9,792,702 |
|
Trxade Group,
Inc.Consolidated Statements of
OperationsFor the Three Months Ended March 31,
2021 and 2020(unaudited)
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3,053,235 |
|
|
$ |
2,203,320 |
|
|
|
|
|
|
|
|
|
|
Cost of
Sales |
|
|
1,669,924 |
|
|
|
563,184 |
|
Gross
Profit |
|
|
1,383,311 |
|
|
|
1,640,136 |
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
General and Administrative |
|
|
2,027,566 |
|
|
|
1,451,909 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
(644,255 |
) |
|
|
188,227 |
|
|
|
|
|
|
|
|
|
|
Interest net |
|
|
(7,264 |
) |
|
|
(7,924 |
) |
Net Income
(Loss) |
|
$ |
(651,519 |
) |
|
$ |
180,303 |
|
|
|
|
|
|
|
|
|
|
Net Income (loss) per Common Share – Basic: |
|
$ |
(0.08 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
Net Income (loss) per Common Share – Diluted: |
|
$ |
(0.08 |
) |
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares
Outstanding Basic |
|
|
8,093,199 |
|
|
|
6,971,427 |
|
|
|
|
|
|
|
|
|
|
Weighted average Common Shares
Outstanding Diluted |
|
|
8,093,199 |
|
|
|
7,423,669 |
|
Trxade Group,
Inc.Consolidated Statements of Cash
FlowsFor the Three months ended March 31, 2021 and
2020(unaudited)
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
Operating
Activities: |
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(651,519 |
) |
|
$ |
180,303 |
|
Adjustments to reconcile net income (loss) to net cash used in
operating activities: |
|
|
|
|
|
|
|
|
Depreciation Expense |
|
|
1,750 |
|
|
|
1,250 |
|
Options expense |
|
|
75,738 |
|
|
|
61,997 |
|
Warrant Expense |
|
|
- |
|
|
|
79,089 |
|
Common Stock Issued for Services |
|
|
98,247 |
|
|
|
- |
|
Bad Debt Expense |
|
|
- |
|
|
|
9,000 |
|
Amortization of right of use asset |
|
|
31,678 |
|
|
|
23,635 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts Receivable |
|
|
(1,131,807 |
) |
|
|
(94,047 |
) |
Prepaid Assets and other Current Assets |
|
|
(306,490 |
) |
|
|
(184,923 |
) |
Inventory |
|
|
787,632 |
|
|
|
(311,640 |
) |
Deposits for Inventory Purchases |
|
|
- |
|
|
|
(580,800 |
) |
Other Receivables |
|
|
6,425 |
|
|
|
- |
|
Lease Liability |
|
|
(31,517 |
) |
|
|
(20,974 |
) |
Accounts Payable |
|
|
109,642 |
|
|
|
(14,376 |
) |
Customer Deposits |
|
|
- |
|
|
|
305,972 |
|
Accrued Liabilities and Other Liabilities |
|
|
299,923 |
|
|
|
134,708 |
|
Net Cash used in
operating activities |
|
|
(710,298 |
) |
|
|
(410,806 |
) |
|
|
|
|
|
|
|
|
|
Investing
Activities: |
|
|
|
|
|
|
|
|
Purchase of Fixed Assets |
|
|
- |
|
|
|
(23,505 |
) |
Net Cash used in Investing activities |
|
|
- |
|
|
|
(23,505 |
) |
|
|
|
|
|
|
|
|
|
Financing
Activities: |
|
|
|
|
|
|
|
|
Stock Issuance Costs |
|
|
- |
|
|
|
(732,355 |
) |
Proceeds from exercise of Warrants |
|
|
- |
|
|
|
1,352 |
|
Proceeds from exercise of Stock Options |
|
|
- |
|
|
|
501 |
|
Proceeds from Issuance of Common Stock |
|
|
- |
|
|
|
5,994,424 |
|
Net Cash provided by financing activities |
|
|
- |
|
|
|
5,263,922 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
Cash |
|
|
(710,298 |
) |
|
|
4,829,611 |
|
Cash at Beginning of the
Period |
|
|
5,919,578 |
|
|
|
2,871,694 |
|
Cash at End of the Period |
|
$ |
5,209,280 |
|
|
$ |
7,701,305 |
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow
Information |
|
|
|
|
|
|
|
|
Cash Paid for Interest |
|
$ |
1,639 |
|
|
$ |
2,348 |
|
Cash Paid for Income
Taxes |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) attributable to Trxade
Group, Inc., to Earnings before Interest, Taxes, Depreciation and
Amortization (EBITDA) and Adjusted EBITDA* |
|
|
|
|
|
|
|
|
|
For the three months ended March
31, |
|
|
|
|
|
|
|
2021 |
|
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
Net Income (Loss) attributable
to Trxade Group, Inc. |
|
$ |
(651,519 |
) |
|
|
$ |
180,303 |
|
|
|
|
|
|
|
|
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net |
|
|
7,264 |
|
|
|
|
7,973 |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
1,750 |
|
|
|
|
1,250 |
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
(642,505 |
) |
|
|
|
189,526 |
|
|
|
|
|
|
|
|
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
173,985 |
|
|
|
|
141,086 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
* |
|
$ |
(468,520 |
) |
|
|
$ |
330,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* EBITDA and
Adjusted EBITDA are non-GAAP financial measures. These measurements
are not recognized in accordance with GAAP and should not be viewed
as an alternative to GAAP measures of performance. See also “Use of
Non-GAAP Financial Information”, above. |
|
TRxADE Health (NASDAQ:MEDS)
Historical Stock Chart
From Aug 2024 to Sep 2024
TRxADE Health (NASDAQ:MEDS)
Historical Stock Chart
From Sep 2023 to Sep 2024