Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries TRxADE HEALTH Reports 16% Revenue Growth and Year End 2022 Financial Results By: ACCESSWIRE March 27, 2023 at 16:30 PM EDT Continues Nationwide Expansion of Breakthrough Digital Healthcare Services IT Platform TAMPA, FL / ACCESSWIRE / March 27, 2023 / TRxADE HEALTH, INC. (NASDAQ:MEDS) ("TRxADE" or the "Company"), 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 year ended December 31, 2022. 2022 and Subsequent Operational Highlights TRxADE continued to expand the TRxADE drug procurement marketplace nationwide, adding 1,212 new registered members during fiscal 2022, bringing the total registered members to approximately 14,400+ at December 31, 2022. Management Commentary Mr. Ajjarapu commented, "2022 was an exciting and challenging time for TRxADE. We continue to focus the Company's strategic plans and partnerships, working towards creating sustainable value for our stockholders. I am pleased with the growth we have experienced in our TRxADE platform. We continue to achieve key milestones in our internal roadmap with a focus on innovation and development through our various complementary growth opportunities." 2022 Annual Financial Summary Consolidated revenues for the fiscal year of 2022 compared to the fiscal year of 2021 increased 16% to $11.4 million, compared to $9.9 million, respectively. The increase in consolidated revenue was driven by improved revenue attributed to our TRxADE Platform and Trxade Prime subsidiaries. The revenues generated by the TRxADE Platform in the fiscal year 2022 compared to 2021 increased 10% and Trxade Prime year over year revenue improved 46% in 2022 compared to 2021. The subsidiary company Community Specialty Pharmacy experienced a 29% decrease in revenue for the fiscal year 2022 compared to 2021. Gross profit analysis of comparable fiscal periods of 2022 and 2021 reflect an increase in gross profits of $0.7 million for the fiscal year of 2022 compared to 2021. As a percent of revenue, consolidated gross profit remained consistent at 48% for the comparable annual periods of 2022 and 2021. Operating expenses for the fiscal year of 2022 were $9.9 million, compared to $10 million in the fiscal year 2021. Net loss for the year ended December 31, 2022, was ($3.9) million, or ($0.41) per basic and diluted share outstanding, compared to a net loss of ($5.3) million, or ($0.65) per basic and diluted share outstanding for same period in 2021. Adjusted EBITDA, a non-GAAP financial measure, was ($0.09) million for the fiscal year 2022, compared to ($3.1) million for the fiscal year 2021. See "Use of Non-GAAP Financial Information" below, and the reconciliation of Adjusted EBITDA to GAAP set forth at the end of this release. Additional metrics related to our key performance are as follows: For the twelve-month period ended December 31, 2022, the TRxADE Platform increased its registered users by 8%. Total registered users increased to approximately 14,400+ from 13,100+, as of December 31, 2022, and 2021, respectively. For the same comparable periods the TRxADE Platform revenues increased 10% from $4.9 million for the year ended 2021 to $5.4 million for the year ended 2022. Sales volume on the TRxADE Platform also increased year over year by 17% for the comparable fiscal years. For the twelve-month period ended December 31, 2022, compared to the same period in 2021, Integra Pharma Solutions, LLC ("TRxADE Prime") revenue improved 46% from $3.2 million to $4.8 million. TRxADE Prime also saw improvements in gross margin. For the fiscal year 2022 gross margin was a positive 1% compared to a negative (12%) for the fiscal year 2021. The Company is committed to continued efforts designed to build a strong foundation for Trxade Prime and further growth. Conference Call and Webcast Management will host a conference call on Monday, March 27, 2023, at 5:30 p.m. Eastern time to discuss TRxADE's 2022 financial results. The call will conclude with Q&A from participants. To participate, please use the following information: 2022 Conference Call and WebcastDate: Monday, March 27, 2023Time: 5:30 p.m. Eastern timeU.S. Dial-in: 1-877-425-9470International Dial-in: 1-201-389-0878Webcast: https://callme.viavid.com/viavid/?callme=true&passcode=13711397&h=true&info=company&r=true&B=6 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 April 27, 2023. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and enter replay pin number 13737052. 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 HEALTH, INC. TRxADE HEALTH (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 approximately 14,400+ members nationwide, fostering price transparency and under the Bonum Health brand, offering patient centric telehealth services. For more information on TRxADE HEALTH, please visit the Company's IR website at investors.trxadegroup.com. Use of Non-GAAP Financial Information In addition to our results calculated under generally accepted accounting principles in the United States ("GAAP"), in this earnings release we also present EBITDA and Adjusted EBITDA which are "non-GAAP financial measures" presented as supplemental measures of the Company's performance. They are not presented in accordance with GAAP. EBITDA represents net income (loss) attributable to TRxADE before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense, bad debt recovery, bad debt write-off, gain (loss) on disposal of asset, litigation expenses, loss (gain) on inventory investment, loss (gain) on impairment of intangible asset and change in fair value of warrant liability. 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 are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. 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 may calculate EBITDA and Adjusted EBITDA differently than TRxADE does, limiting its usefulness as a comparative measure. EBITDA and Adjusted EBITDA are not recognized in accordance with GAAP, are unaudited, and have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company's results as reported under GAAP. The Company's presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measures, please see the section titled "Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, INC., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA", included at the end of this release. Forward-Looking Statements This press release contains certain statements that may be deemed to be "forward-looking statements" within the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. Such forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to a number of risks and uncertainties (some of which are beyond our control) that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; security interests under certain of our credit arrangements; the fact that we are exploring strategic alternatives for our Bonum Health, Inc. subsidiary; our ability to maintain the listing of our common stock on the Nasdaq Capital Market, including our current non-compliance with the continued listing standards of the Nasdaq Capital Market; risks associated with our operations not being profitable; the commercial viability of new business lines, applications, products and technologies, and the costs of such items; the Company's stock repurchase program; the adoption of the Company's product offerings; claims relating to alleged violations of intellectual property rights of others; our ability to monetize our technological solutions; technical problems with our websites, apps and products; risks relating to implementing our acquisition strategies; challenges to the pharmaceutical supply chain posed by the COVID-19 pandemic or similar events and related matters; 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; existing and new competitors which may have more resources than we do; increases in direct to consumer sales of drugs; healthcare fraud; COVID-19, governmental responses thereto, economic downturns and increased inflation 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; dilution which may be caused by future offerings; increased inflation and interest rates, including the increased costs of raising funding as a result thereof; and supply chain issues caused by among other things, recessions and global conflicts. Additional information about these and other factors that could cause the Company's results to differ materially from these forward-looking statements can be found in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022, which are available at www.sec.gov and in the "NASDAQ:MEDS" - "SEC Filings" section of the Company's website at https://www.investors.trxadehealth.com. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law. Investor Relations: IR@trxade.comInvestors.trxadegroup.com TRxADE HEALTH, INC.Consolidated Balance Sheets December 31, December 31, 2022 2021 Assets Current Assets Cash $ 1,133,633 $ 3,122,578 Accounts receivable, net 728,964 978,973 Inventory 119,582 56,279 Prepaid assets 110,944 216,414 Total Current Assets 2,093,123 4,374,244 Property plant and equipment, net 65,214 98,751 Intangible assets and capitalized software, net 450,845 - Deposits 49,029 60,136 Operating lease right-of-use assets 1,051,815 1,233,033 Total Assets $ 3,710,026 $ 5,766,164 Liabilities and Shareholders' Equity Current Liabilities Accounts payable 729,153 477,028 Accrued liabilities 290,013 270,437 Other current liabilities 67,517 - Contingent funding liabilities 108,036 - Current portion lease liabilities 196,872 178,561 Warrant liability 588,533 - Notes payable-- related party 166,667 - Total Current liabilities 2,146,791 926,026 Long Term Liabilities Other long-term liabilities --- leases 887,035 1,069,965 Notes payable- related party 333,333 - Total Liabilities 3,367,159 1,995,991 Stockholders' Equity Series A preferred stock, $0.00001 par value; 10,000,000 shares authorized; none issued and outstanding, as of December 31, 2022 and December 31, 2021. - - Common stock, $0.00001 par value; 100,000,000 shares authorized; 9,393,708, and 8,166,457 shares issued and outstanding, as of December 31, 2022 and December 31, 2021, respectively 99 82 Additional paid-in capital, net of stock issuance costs 20,482,573 20,017,528 Retained deficit (19,719,536 ) (16,247,437 ) Total 763,136 3,770,173 Non-controlling interest in subsidiary (420,269 ) - Total stockholders' equity 342,867 3,770,173 Total Liabilities and Stockholders' Equity $ 3,710,026 $ 5,766,164 TRxADE HEALTH, INC.Consolidated Statements of Operations Years Ended December 31, 2022 2021 Revenues $ 11,448,265 $ 9,889,433 Cost of Sales 5,997,049 5,143,468 Gross Profit 5,451,216 4,745,965 Operating Expenses: Impairment of intangible asset 792,500 - Loss on inventory investment 875,250 1,226,426 Loss on write-down of Inventory - 376,348 Wage and salary expense 3,941,475 3,846,522 Professional fees 519,642 1,094,917 Accounting and legal expense 830,355 697,825 Technology expense 1,160,856 899,705 General and administrative 1,755,433 1,896,515 Total operating expenses 9,875,511 10,038,258 Operating Loss (4,424,295 ) (5,292,293 ) Nonoperating income (expense) Change in fair value of warrant liability 825,544 - Interest income 20,989 - Gain on disposal of asset 4,100 - Interest expense (336,206 ) (23,590 ) Total nonoperating expense 514,427 (23,590 ) Net Loss $ (3,909,868 ) $ (5,315,883 ) Net loss attributable to TRxADE Health, Inc. (3,472,099 ) (5,315,883 ) Net loss attributable to non-controlling interests (437,769 ) - Net loss per common share -- basic and diluted $ (0.41 ) $ (0.65 ) Weighted average common shares outstanding - basic and diluted 8,472,946 8,136,740 TRxADE HEALTH, INC.Consolidated Statements of Cash Flows Years Ended December 31, 2022 2021 Cash flows from operating activities: Net loss $ (3,909,868 ) $ (5,315,883 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 14,637 7,351 Options expense 79,163 187,273 Common stock issued for services 254,121 181,163 Bad debt expense (246,683 ) 615,657 Warrant Expense - 21,640 Loss on write-off of intangible asset 792,500 - Loss on write-down of Inventory 875,250 376,348 Loss on inventory investments - 143,891 Gain on sale of asset (4,100 ) - Amortization of right of use assets 181,218 131,558 Changes in operating assets and liabilities: Deferred offering costs - - Accounts receivable, net 496,692 (789,587 ) Prepaid assets and deposits 336,928 (103,666 ) Inventory (63,303 ) 825,127 Other receivables (875,250 ) 1,087,675 Lease liability (164,618 ) (131,153 ) Accounts payable 252,125 220,199 Accrued liabilities (200,776 ) (13,819 ) Current liabilities 67,517 - Warrant liability 588,533 - Customer Deposits - (10,000 ) Net cash used in operating activities (1,525,929 ) (2,566,226 ) Cash flows from investing activities: Purchase of fixed assets - (22,596 ) Sale of fixed assets 23,000 - Investment in capitalized software (450,845 ) - Net cash used in investing activities (427,845 ) (22,596 ) Cash flows from financing activities: Repayments of Promissory Notes - Related Parties - (225,000 ) Repayment of contingent liability (716,964 ) - Distributions to non-controlling interest (275,000 ) - Proceeds from sale of future revenue 825,000 - Proceeds from exercise of stock options - 1,821 Proceeds from exercise of warrants 875 15,001 Proceeds from issuance of common stock, net offering costs 130,903 - Valuation of warrant - - Net cash provided by financing activities (35,171 ) (208,178 ) Net decrease in cash (1,988,948 ) (2,797,000 ) Cash at beginning of the year 3,122,578 5,919,578 Cash at end of the period $ 1,133,633 $ 3,122,578 Supplemental disclosure of cash flow information Cash paid for interest $ 336,206 $ 28,337 Cash paid for income taxes $ - $ - Non-Cash Transactions Insurance premium financed $ 220,354 $ - Note issued as SOSRx contribution $ 500,000 $ - Intangible asset contribution from non-controlling interest $ 792,500 $ - Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, Inc., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA* Years Ended December 31, 2022 2021 Net loss attributable to TRxADE Health, Inc. $ (3,472,095 ) $ (5,315,883 ) Add (deduct): Interest, net 315,217 23,590 Depreciation and amortization 15,113 7,351 EBITDA * (3,141,765 ) (5,284,942 ) Add (deduct): Bad debt recovery 247,861 - Change in fair value of warrant liability 825,544 - Impairment of intangible asset 792,500 - Bad debt write off (247,867 ) 630,000 Loss on inventory investment 875,250 1,225,141 Gain on disposal of asset (4,100 ) - Litigation expenses 225,000 - Stock-based compensation 333,269 368,436 Adjusted EBITDA * $ (94,307 ) $ (3,061,365 ) * 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. SOURCE: TRxADE HEALTH, Inc. View source version on accesswire.com: https://www.accesswire.com/745869/TRxADE-HEALTH-Reports-16-Revenue-Growth-and-Year-End-2022-Financial-Results Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
TRxADE HEALTH Reports 16% Revenue Growth and Year End 2022 Financial Results By: ACCESSWIRE March 27, 2023 at 16:30 PM EDT Continues Nationwide Expansion of Breakthrough Digital Healthcare Services IT Platform TAMPA, FL / ACCESSWIRE / March 27, 2023 / TRxADE HEALTH, INC. (NASDAQ:MEDS) ("TRxADE" or the "Company"), 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 year ended December 31, 2022. 2022 and Subsequent Operational Highlights TRxADE continued to expand the TRxADE drug procurement marketplace nationwide, adding 1,212 new registered members during fiscal 2022, bringing the total registered members to approximately 14,400+ at December 31, 2022. Management Commentary Mr. Ajjarapu commented, "2022 was an exciting and challenging time for TRxADE. We continue to focus the Company's strategic plans and partnerships, working towards creating sustainable value for our stockholders. I am pleased with the growth we have experienced in our TRxADE platform. We continue to achieve key milestones in our internal roadmap with a focus on innovation and development through our various complementary growth opportunities." 2022 Annual Financial Summary Consolidated revenues for the fiscal year of 2022 compared to the fiscal year of 2021 increased 16% to $11.4 million, compared to $9.9 million, respectively. The increase in consolidated revenue was driven by improved revenue attributed to our TRxADE Platform and Trxade Prime subsidiaries. The revenues generated by the TRxADE Platform in the fiscal year 2022 compared to 2021 increased 10% and Trxade Prime year over year revenue improved 46% in 2022 compared to 2021. The subsidiary company Community Specialty Pharmacy experienced a 29% decrease in revenue for the fiscal year 2022 compared to 2021. Gross profit analysis of comparable fiscal periods of 2022 and 2021 reflect an increase in gross profits of $0.7 million for the fiscal year of 2022 compared to 2021. As a percent of revenue, consolidated gross profit remained consistent at 48% for the comparable annual periods of 2022 and 2021. Operating expenses for the fiscal year of 2022 were $9.9 million, compared to $10 million in the fiscal year 2021. Net loss for the year ended December 31, 2022, was ($3.9) million, or ($0.41) per basic and diluted share outstanding, compared to a net loss of ($5.3) million, or ($0.65) per basic and diluted share outstanding for same period in 2021. Adjusted EBITDA, a non-GAAP financial measure, was ($0.09) million for the fiscal year 2022, compared to ($3.1) million for the fiscal year 2021. See "Use of Non-GAAP Financial Information" below, and the reconciliation of Adjusted EBITDA to GAAP set forth at the end of this release. Additional metrics related to our key performance are as follows: For the twelve-month period ended December 31, 2022, the TRxADE Platform increased its registered users by 8%. Total registered users increased to approximately 14,400+ from 13,100+, as of December 31, 2022, and 2021, respectively. For the same comparable periods the TRxADE Platform revenues increased 10% from $4.9 million for the year ended 2021 to $5.4 million for the year ended 2022. Sales volume on the TRxADE Platform also increased year over year by 17% for the comparable fiscal years. For the twelve-month period ended December 31, 2022, compared to the same period in 2021, Integra Pharma Solutions, LLC ("TRxADE Prime") revenue improved 46% from $3.2 million to $4.8 million. TRxADE Prime also saw improvements in gross margin. For the fiscal year 2022 gross margin was a positive 1% compared to a negative (12%) for the fiscal year 2021. The Company is committed to continued efforts designed to build a strong foundation for Trxade Prime and further growth. Conference Call and Webcast Management will host a conference call on Monday, March 27, 2023, at 5:30 p.m. Eastern time to discuss TRxADE's 2022 financial results. The call will conclude with Q&A from participants. To participate, please use the following information: 2022 Conference Call and WebcastDate: Monday, March 27, 2023Time: 5:30 p.m. Eastern timeU.S. Dial-in: 1-877-425-9470International Dial-in: 1-201-389-0878Webcast: https://callme.viavid.com/viavid/?callme=true&passcode=13711397&h=true&info=company&r=true&B=6 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 April 27, 2023. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and enter replay pin number 13737052. 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 HEALTH, INC. TRxADE HEALTH (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 approximately 14,400+ members nationwide, fostering price transparency and under the Bonum Health brand, offering patient centric telehealth services. For more information on TRxADE HEALTH, please visit the Company's IR website at investors.trxadegroup.com. Use of Non-GAAP Financial Information In addition to our results calculated under generally accepted accounting principles in the United States ("GAAP"), in this earnings release we also present EBITDA and Adjusted EBITDA which are "non-GAAP financial measures" presented as supplemental measures of the Company's performance. They are not presented in accordance with GAAP. EBITDA represents net income (loss) attributable to TRxADE before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense, bad debt recovery, bad debt write-off, gain (loss) on disposal of asset, litigation expenses, loss (gain) on inventory investment, loss (gain) on impairment of intangible asset and change in fair value of warrant liability. 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 are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. 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 may calculate EBITDA and Adjusted EBITDA differently than TRxADE does, limiting its usefulness as a comparative measure. EBITDA and Adjusted EBITDA are not recognized in accordance with GAAP, are unaudited, and have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company's results as reported under GAAP. The Company's presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measures, please see the section titled "Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, INC., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA", included at the end of this release. Forward-Looking Statements This press release contains certain statements that may be deemed to be "forward-looking statements" within the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. Such forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to a number of risks and uncertainties (some of which are beyond our control) that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; security interests under certain of our credit arrangements; the fact that we are exploring strategic alternatives for our Bonum Health, Inc. subsidiary; our ability to maintain the listing of our common stock on the Nasdaq Capital Market, including our current non-compliance with the continued listing standards of the Nasdaq Capital Market; risks associated with our operations not being profitable; the commercial viability of new business lines, applications, products and technologies, and the costs of such items; the Company's stock repurchase program; the adoption of the Company's product offerings; claims relating to alleged violations of intellectual property rights of others; our ability to monetize our technological solutions; technical problems with our websites, apps and products; risks relating to implementing our acquisition strategies; challenges to the pharmaceutical supply chain posed by the COVID-19 pandemic or similar events and related matters; 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; existing and new competitors which may have more resources than we do; increases in direct to consumer sales of drugs; healthcare fraud; COVID-19, governmental responses thereto, economic downturns and increased inflation 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; dilution which may be caused by future offerings; increased inflation and interest rates, including the increased costs of raising funding as a result thereof; and supply chain issues caused by among other things, recessions and global conflicts. Additional information about these and other factors that could cause the Company's results to differ materially from these forward-looking statements can be found in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022, which are available at www.sec.gov and in the "NASDAQ:MEDS" - "SEC Filings" section of the Company's website at https://www.investors.trxadehealth.com. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law. Investor Relations: IR@trxade.comInvestors.trxadegroup.com TRxADE HEALTH, INC.Consolidated Balance Sheets December 31, December 31, 2022 2021 Assets Current Assets Cash $ 1,133,633 $ 3,122,578 Accounts receivable, net 728,964 978,973 Inventory 119,582 56,279 Prepaid assets 110,944 216,414 Total Current Assets 2,093,123 4,374,244 Property plant and equipment, net 65,214 98,751 Intangible assets and capitalized software, net 450,845 - Deposits 49,029 60,136 Operating lease right-of-use assets 1,051,815 1,233,033 Total Assets $ 3,710,026 $ 5,766,164 Liabilities and Shareholders' Equity Current Liabilities Accounts payable 729,153 477,028 Accrued liabilities 290,013 270,437 Other current liabilities 67,517 - Contingent funding liabilities 108,036 - Current portion lease liabilities 196,872 178,561 Warrant liability 588,533 - Notes payable-- related party 166,667 - Total Current liabilities 2,146,791 926,026 Long Term Liabilities Other long-term liabilities --- leases 887,035 1,069,965 Notes payable- related party 333,333 - Total Liabilities 3,367,159 1,995,991 Stockholders' Equity Series A preferred stock, $0.00001 par value; 10,000,000 shares authorized; none issued and outstanding, as of December 31, 2022 and December 31, 2021. - - Common stock, $0.00001 par value; 100,000,000 shares authorized; 9,393,708, and 8,166,457 shares issued and outstanding, as of December 31, 2022 and December 31, 2021, respectively 99 82 Additional paid-in capital, net of stock issuance costs 20,482,573 20,017,528 Retained deficit (19,719,536 ) (16,247,437 ) Total 763,136 3,770,173 Non-controlling interest in subsidiary (420,269 ) - Total stockholders' equity 342,867 3,770,173 Total Liabilities and Stockholders' Equity $ 3,710,026 $ 5,766,164 TRxADE HEALTH, INC.Consolidated Statements of Operations Years Ended December 31, 2022 2021 Revenues $ 11,448,265 $ 9,889,433 Cost of Sales 5,997,049 5,143,468 Gross Profit 5,451,216 4,745,965 Operating Expenses: Impairment of intangible asset 792,500 - Loss on inventory investment 875,250 1,226,426 Loss on write-down of Inventory - 376,348 Wage and salary expense 3,941,475 3,846,522 Professional fees 519,642 1,094,917 Accounting and legal expense 830,355 697,825 Technology expense 1,160,856 899,705 General and administrative 1,755,433 1,896,515 Total operating expenses 9,875,511 10,038,258 Operating Loss (4,424,295 ) (5,292,293 ) Nonoperating income (expense) Change in fair value of warrant liability 825,544 - Interest income 20,989 - Gain on disposal of asset 4,100 - Interest expense (336,206 ) (23,590 ) Total nonoperating expense 514,427 (23,590 ) Net Loss $ (3,909,868 ) $ (5,315,883 ) Net loss attributable to TRxADE Health, Inc. (3,472,099 ) (5,315,883 ) Net loss attributable to non-controlling interests (437,769 ) - Net loss per common share -- basic and diluted $ (0.41 ) $ (0.65 ) Weighted average common shares outstanding - basic and diluted 8,472,946 8,136,740 TRxADE HEALTH, INC.Consolidated Statements of Cash Flows Years Ended December 31, 2022 2021 Cash flows from operating activities: Net loss $ (3,909,868 ) $ (5,315,883 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 14,637 7,351 Options expense 79,163 187,273 Common stock issued for services 254,121 181,163 Bad debt expense (246,683 ) 615,657 Warrant Expense - 21,640 Loss on write-off of intangible asset 792,500 - Loss on write-down of Inventory 875,250 376,348 Loss on inventory investments - 143,891 Gain on sale of asset (4,100 ) - Amortization of right of use assets 181,218 131,558 Changes in operating assets and liabilities: Deferred offering costs - - Accounts receivable, net 496,692 (789,587 ) Prepaid assets and deposits 336,928 (103,666 ) Inventory (63,303 ) 825,127 Other receivables (875,250 ) 1,087,675 Lease liability (164,618 ) (131,153 ) Accounts payable 252,125 220,199 Accrued liabilities (200,776 ) (13,819 ) Current liabilities 67,517 - Warrant liability 588,533 - Customer Deposits - (10,000 ) Net cash used in operating activities (1,525,929 ) (2,566,226 ) Cash flows from investing activities: Purchase of fixed assets - (22,596 ) Sale of fixed assets 23,000 - Investment in capitalized software (450,845 ) - Net cash used in investing activities (427,845 ) (22,596 ) Cash flows from financing activities: Repayments of Promissory Notes - Related Parties - (225,000 ) Repayment of contingent liability (716,964 ) - Distributions to non-controlling interest (275,000 ) - Proceeds from sale of future revenue 825,000 - Proceeds from exercise of stock options - 1,821 Proceeds from exercise of warrants 875 15,001 Proceeds from issuance of common stock, net offering costs 130,903 - Valuation of warrant - - Net cash provided by financing activities (35,171 ) (208,178 ) Net decrease in cash (1,988,948 ) (2,797,000 ) Cash at beginning of the year 3,122,578 5,919,578 Cash at end of the period $ 1,133,633 $ 3,122,578 Supplemental disclosure of cash flow information Cash paid for interest $ 336,206 $ 28,337 Cash paid for income taxes $ - $ - Non-Cash Transactions Insurance premium financed $ 220,354 $ - Note issued as SOSRx contribution $ 500,000 $ - Intangible asset contribution from non-controlling interest $ 792,500 $ - Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, Inc., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA* Years Ended December 31, 2022 2021 Net loss attributable to TRxADE Health, Inc. $ (3,472,095 ) $ (5,315,883 ) Add (deduct): Interest, net 315,217 23,590 Depreciation and amortization 15,113 7,351 EBITDA * (3,141,765 ) (5,284,942 ) Add (deduct): Bad debt recovery 247,861 - Change in fair value of warrant liability 825,544 - Impairment of intangible asset 792,500 - Bad debt write off (247,867 ) 630,000 Loss on inventory investment 875,250 1,225,141 Gain on disposal of asset (4,100 ) - Litigation expenses 225,000 - Stock-based compensation 333,269 368,436 Adjusted EBITDA * $ (94,307 ) $ (3,061,365 ) * 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. SOURCE: TRxADE HEALTH, Inc. View source version on accesswire.com: https://www.accesswire.com/745869/TRxADE-HEALTH-Reports-16-Revenue-Growth-and-Year-End-2022-Financial-Results
Continues Nationwide Expansion of Breakthrough Digital Healthcare Services IT Platform TAMPA, FL / ACCESSWIRE / March 27, 2023 / TRxADE HEALTH, INC. (NASDAQ:MEDS) ("TRxADE" or the "Company"), 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 year ended December 31, 2022. 2022 and Subsequent Operational Highlights TRxADE continued to expand the TRxADE drug procurement marketplace nationwide, adding 1,212 new registered members during fiscal 2022, bringing the total registered members to approximately 14,400+ at December 31, 2022. Management Commentary Mr. Ajjarapu commented, "2022 was an exciting and challenging time for TRxADE. We continue to focus the Company's strategic plans and partnerships, working towards creating sustainable value for our stockholders. I am pleased with the growth we have experienced in our TRxADE platform. We continue to achieve key milestones in our internal roadmap with a focus on innovation and development through our various complementary growth opportunities." 2022 Annual Financial Summary Consolidated revenues for the fiscal year of 2022 compared to the fiscal year of 2021 increased 16% to $11.4 million, compared to $9.9 million, respectively. The increase in consolidated revenue was driven by improved revenue attributed to our TRxADE Platform and Trxade Prime subsidiaries. The revenues generated by the TRxADE Platform in the fiscal year 2022 compared to 2021 increased 10% and Trxade Prime year over year revenue improved 46% in 2022 compared to 2021. The subsidiary company Community Specialty Pharmacy experienced a 29% decrease in revenue for the fiscal year 2022 compared to 2021. Gross profit analysis of comparable fiscal periods of 2022 and 2021 reflect an increase in gross profits of $0.7 million for the fiscal year of 2022 compared to 2021. As a percent of revenue, consolidated gross profit remained consistent at 48% for the comparable annual periods of 2022 and 2021. Operating expenses for the fiscal year of 2022 were $9.9 million, compared to $10 million in the fiscal year 2021. Net loss for the year ended December 31, 2022, was ($3.9) million, or ($0.41) per basic and diluted share outstanding, compared to a net loss of ($5.3) million, or ($0.65) per basic and diluted share outstanding for same period in 2021. Adjusted EBITDA, a non-GAAP financial measure, was ($0.09) million for the fiscal year 2022, compared to ($3.1) million for the fiscal year 2021. See "Use of Non-GAAP Financial Information" below, and the reconciliation of Adjusted EBITDA to GAAP set forth at the end of this release. Additional metrics related to our key performance are as follows: For the twelve-month period ended December 31, 2022, the TRxADE Platform increased its registered users by 8%. Total registered users increased to approximately 14,400+ from 13,100+, as of December 31, 2022, and 2021, respectively. For the same comparable periods the TRxADE Platform revenues increased 10% from $4.9 million for the year ended 2021 to $5.4 million for the year ended 2022. Sales volume on the TRxADE Platform also increased year over year by 17% for the comparable fiscal years. For the twelve-month period ended December 31, 2022, compared to the same period in 2021, Integra Pharma Solutions, LLC ("TRxADE Prime") revenue improved 46% from $3.2 million to $4.8 million. TRxADE Prime also saw improvements in gross margin. For the fiscal year 2022 gross margin was a positive 1% compared to a negative (12%) for the fiscal year 2021. The Company is committed to continued efforts designed to build a strong foundation for Trxade Prime and further growth. Conference Call and Webcast Management will host a conference call on Monday, March 27, 2023, at 5:30 p.m. Eastern time to discuss TRxADE's 2022 financial results. The call will conclude with Q&A from participants. To participate, please use the following information: 2022 Conference Call and WebcastDate: Monday, March 27, 2023Time: 5:30 p.m. Eastern timeU.S. Dial-in: 1-877-425-9470International Dial-in: 1-201-389-0878Webcast: https://callme.viavid.com/viavid/?callme=true&passcode=13711397&h=true&info=company&r=true&B=6 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 April 27, 2023. To listen, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and enter replay pin number 13737052. 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 HEALTH, INC. TRxADE HEALTH (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 approximately 14,400+ members nationwide, fostering price transparency and under the Bonum Health brand, offering patient centric telehealth services. For more information on TRxADE HEALTH, please visit the Company's IR website at investors.trxadegroup.com. Use of Non-GAAP Financial Information In addition to our results calculated under generally accepted accounting principles in the United States ("GAAP"), in this earnings release we also present EBITDA and Adjusted EBITDA which are "non-GAAP financial measures" presented as supplemental measures of the Company's performance. They are not presented in accordance with GAAP. EBITDA represents net income (loss) attributable to TRxADE before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA before stock-based compensation expense, bad debt recovery, bad debt write-off, gain (loss) on disposal of asset, litigation expenses, loss (gain) on inventory investment, loss (gain) on impairment of intangible asset and change in fair value of warrant liability. 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 are also frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. 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 may calculate EBITDA and Adjusted EBITDA differently than TRxADE does, limiting its usefulness as a comparative measure. EBITDA and Adjusted EBITDA are not recognized in accordance with GAAP, are unaudited, and have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company's results as reported under GAAP. The Company's presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure. For more information on these non-GAAP financial measures, please see the section titled "Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, INC., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA", included at the end of this release. Forward-Looking Statements This press release contains certain statements that may be deemed to be "forward-looking statements" within the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. Such forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "should," or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to a number of risks and uncertainties (some of which are beyond our control) that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; security interests under certain of our credit arrangements; the fact that we are exploring strategic alternatives for our Bonum Health, Inc. subsidiary; our ability to maintain the listing of our common stock on the Nasdaq Capital Market, including our current non-compliance with the continued listing standards of the Nasdaq Capital Market; risks associated with our operations not being profitable; the commercial viability of new business lines, applications, products and technologies, and the costs of such items; the Company's stock repurchase program; the adoption of the Company's product offerings; claims relating to alleged violations of intellectual property rights of others; our ability to monetize our technological solutions; technical problems with our websites, apps and products; risks relating to implementing our acquisition strategies; challenges to the pharmaceutical supply chain posed by the COVID-19 pandemic or similar events and related matters; 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; existing and new competitors which may have more resources than we do; increases in direct to consumer sales of drugs; healthcare fraud; COVID-19, governmental responses thereto, economic downturns and increased inflation 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; dilution which may be caused by future offerings; increased inflation and interest rates, including the increased costs of raising funding as a result thereof; and supply chain issues caused by among other things, recessions and global conflicts. Additional information about these and other factors that could cause the Company's results to differ materially from these forward-looking statements can be found in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022, which are available at www.sec.gov and in the "NASDAQ:MEDS" - "SEC Filings" section of the Company's website at https://www.investors.trxadehealth.com. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law. Investor Relations: IR@trxade.comInvestors.trxadegroup.com TRxADE HEALTH, INC.Consolidated Balance Sheets December 31, December 31, 2022 2021 Assets Current Assets Cash $ 1,133,633 $ 3,122,578 Accounts receivable, net 728,964 978,973 Inventory 119,582 56,279 Prepaid assets 110,944 216,414 Total Current Assets 2,093,123 4,374,244 Property plant and equipment, net 65,214 98,751 Intangible assets and capitalized software, net 450,845 - Deposits 49,029 60,136 Operating lease right-of-use assets 1,051,815 1,233,033 Total Assets $ 3,710,026 $ 5,766,164 Liabilities and Shareholders' Equity Current Liabilities Accounts payable 729,153 477,028 Accrued liabilities 290,013 270,437 Other current liabilities 67,517 - Contingent funding liabilities 108,036 - Current portion lease liabilities 196,872 178,561 Warrant liability 588,533 - Notes payable-- related party 166,667 - Total Current liabilities 2,146,791 926,026 Long Term Liabilities Other long-term liabilities --- leases 887,035 1,069,965 Notes payable- related party 333,333 - Total Liabilities 3,367,159 1,995,991 Stockholders' Equity Series A preferred stock, $0.00001 par value; 10,000,000 shares authorized; none issued and outstanding, as of December 31, 2022 and December 31, 2021. - - Common stock, $0.00001 par value; 100,000,000 shares authorized; 9,393,708, and 8,166,457 shares issued and outstanding, as of December 31, 2022 and December 31, 2021, respectively 99 82 Additional paid-in capital, net of stock issuance costs 20,482,573 20,017,528 Retained deficit (19,719,536 ) (16,247,437 ) Total 763,136 3,770,173 Non-controlling interest in subsidiary (420,269 ) - Total stockholders' equity 342,867 3,770,173 Total Liabilities and Stockholders' Equity $ 3,710,026 $ 5,766,164 TRxADE HEALTH, INC.Consolidated Statements of Operations Years Ended December 31, 2022 2021 Revenues $ 11,448,265 $ 9,889,433 Cost of Sales 5,997,049 5,143,468 Gross Profit 5,451,216 4,745,965 Operating Expenses: Impairment of intangible asset 792,500 - Loss on inventory investment 875,250 1,226,426 Loss on write-down of Inventory - 376,348 Wage and salary expense 3,941,475 3,846,522 Professional fees 519,642 1,094,917 Accounting and legal expense 830,355 697,825 Technology expense 1,160,856 899,705 General and administrative 1,755,433 1,896,515 Total operating expenses 9,875,511 10,038,258 Operating Loss (4,424,295 ) (5,292,293 ) Nonoperating income (expense) Change in fair value of warrant liability 825,544 - Interest income 20,989 - Gain on disposal of asset 4,100 - Interest expense (336,206 ) (23,590 ) Total nonoperating expense 514,427 (23,590 ) Net Loss $ (3,909,868 ) $ (5,315,883 ) Net loss attributable to TRxADE Health, Inc. (3,472,099 ) (5,315,883 ) Net loss attributable to non-controlling interests (437,769 ) - Net loss per common share -- basic and diluted $ (0.41 ) $ (0.65 ) Weighted average common shares outstanding - basic and diluted 8,472,946 8,136,740 TRxADE HEALTH, INC.Consolidated Statements of Cash Flows Years Ended December 31, 2022 2021 Cash flows from operating activities: Net loss $ (3,909,868 ) $ (5,315,883 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 14,637 7,351 Options expense 79,163 187,273 Common stock issued for services 254,121 181,163 Bad debt expense (246,683 ) 615,657 Warrant Expense - 21,640 Loss on write-off of intangible asset 792,500 - Loss on write-down of Inventory 875,250 376,348 Loss on inventory investments - 143,891 Gain on sale of asset (4,100 ) - Amortization of right of use assets 181,218 131,558 Changes in operating assets and liabilities: Deferred offering costs - - Accounts receivable, net 496,692 (789,587 ) Prepaid assets and deposits 336,928 (103,666 ) Inventory (63,303 ) 825,127 Other receivables (875,250 ) 1,087,675 Lease liability (164,618 ) (131,153 ) Accounts payable 252,125 220,199 Accrued liabilities (200,776 ) (13,819 ) Current liabilities 67,517 - Warrant liability 588,533 - Customer Deposits - (10,000 ) Net cash used in operating activities (1,525,929 ) (2,566,226 ) Cash flows from investing activities: Purchase of fixed assets - (22,596 ) Sale of fixed assets 23,000 - Investment in capitalized software (450,845 ) - Net cash used in investing activities (427,845 ) (22,596 ) Cash flows from financing activities: Repayments of Promissory Notes - Related Parties - (225,000 ) Repayment of contingent liability (716,964 ) - Distributions to non-controlling interest (275,000 ) - Proceeds from sale of future revenue 825,000 - Proceeds from exercise of stock options - 1,821 Proceeds from exercise of warrants 875 15,001 Proceeds from issuance of common stock, net offering costs 130,903 - Valuation of warrant - - Net cash provided by financing activities (35,171 ) (208,178 ) Net decrease in cash (1,988,948 ) (2,797,000 ) Cash at beginning of the year 3,122,578 5,919,578 Cash at end of the period $ 1,133,633 $ 3,122,578 Supplemental disclosure of cash flow information Cash paid for interest $ 336,206 $ 28,337 Cash paid for income taxes $ - $ - Non-Cash Transactions Insurance premium financed $ 220,354 $ - Note issued as SOSRx contribution $ 500,000 $ - Intangible asset contribution from non-controlling interest $ 792,500 $ - Reconciliation of Net Income (Loss) attributable to TRxADE HEALTH, Inc., to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA* Years Ended December 31, 2022 2021 Net loss attributable to TRxADE Health, Inc. $ (3,472,095 ) $ (5,315,883 ) Add (deduct): Interest, net 315,217 23,590 Depreciation and amortization 15,113 7,351 EBITDA * (3,141,765 ) (5,284,942 ) Add (deduct): Bad debt recovery 247,861 - Change in fair value of warrant liability 825,544 - Impairment of intangible asset 792,500 - Bad debt write off (247,867 ) 630,000 Loss on inventory investment 875,250 1,225,141 Gain on disposal of asset (4,100 ) - Litigation expenses 225,000 - Stock-based compensation 333,269 368,436 Adjusted EBITDA * $ (94,307 ) $ (3,061,365 ) * 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. SOURCE: TRxADE HEALTH, Inc. View source version on accesswire.com: https://www.accesswire.com/745869/TRxADE-HEALTH-Reports-16-Revenue-Growth-and-Year-End-2022-Financial-Results