Second Quarter Highlights:
- Second quarter 2016 revenues increased 45% from same period in 2015
- Number of S2P independent pharmacies continues to expand, now over 5,860
- Company has launched Gabapentin tablets in second quarter 2016
- Expects fast track growth through private label pharmaceuticals
TAMPA, Fla., Aug. 08, 2016 (GLOBE NEWSWIRE) -- Trxade Group, Inc., (OTCQB:TRXD), a web-based market platform enabling its independent pharmacy customers to quickly source pharmaceuticals, accessories and services from a wide range of manufacturers and distributors today reported record financial results for its second quarter ended June 30, 2016.
Company Achieves Record Second Quarter Financial Results
Revenues for the three months ended June 30, 2016 increased 45% to a record $1,688,990, compared with $1,167,195 for the same period in 2015. The increase in revenues for 2016 was primarily due to increased sales from the Company’s wholesale pharmaceutical division.
Cost of sales in the quarter increased to $1,039,889 compared to $382,004 in the year-ago quarter. This increase was primarily attributable to an increase in pharmaceutical sales, which has a higher cost of sales than the Company’s other revenue sources. Gross profit for the three-month period ended June 30, 2016 was $649,101 compared with $785,191 a year ago.
The net operating loss for the three-month period ended June 30, 2016 and 2015 was ($1,013,394) and ($26,448), respectively. The increase is attributable to initial infrastructure expenses for the Company’s private label pharmaceutical distribution.
Company CEO Sees Accelerated Growth in Coming Quarters
Commenting on the Company’s record second quarter results, Suren Ajjarapu Trxade Group Chairman and Chief Executive officer, said, “We are pleased with the significant progress we achieved during the second quarter of 2016. Launching new private label products and crossing 5,800 registered pharmacies on our S2P platform was a major milestone for our company. We are encouraged by the early feedback received from our network of independent pharmacies using the Trxade Prime platform. These services are producing significant cost savings for our network pharmacies and will continue to be one of the driving forces for the adoption of our services as our network pharmacies continues to expand.
“We enter the third quarter of 2016 well positioned across our products from a marketing, online experience and private label distribution standpoint. We expect significant growth in our private label distribution to continue, which will be the key to the success of our business strategy moving forward. We remain focused on our execution and expect accelerating growth and a clear path towards profitability in the coming quarters,” Mr. Ajjarapu concluded.
About Trxade Group, Inc.
Headquartered in Tampa, Florida, Trxade Group, Inc. (OTCQB:TRXD) is a web based market platform that enables trade among healthcare buyers and sellers of pharmaceuticals, accessories and services. Founded in 2010, Trxade Group currently operates the trading platform with over 5860 registered independent pharmacy members. Trxade Group also distributes private label pharmaceuticals through their 100% subsidiary Westminster Pharmaceuticals. For additional information please visit us at http://www.trxadegroup.com.
Forward-Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. Except as may be required by applicable law, we assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The company undertakes no duty to update forward-looking statements.
(Financial Tables to Follow)
| Trxade Group, Inc. | ||||||||||||
| Consolidated Statements of Operations | ||||||||||||
| Three months and six months ended June 30, 2016 and 2015 | ||||||||||||
| (unaudited) | ||||||||||||
| Three months ended | Six months ended | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Revenues | $ | 1,688,990 | $ | 1,167,195 | $ | 3,536,141 | $ | 1,863,328 | ||||
| Cost of Sales | 1,039,889 | 382,004 | 2,055,971 | 612,467 | ||||||||
| Gross Profit | 649,101 | 785,191 | 1,480,170 | 1,250,861 | ||||||||
| Operating Expenses | ||||||||||||
| General and Administrative | 1,662,495 | 811,639 | 2,803,311 | 1,719,960 | ||||||||
| Operating Loss | (1,013,394 | ) | (26,448 | ) | (1,323,141 | ) | (469,099 | ) | ||||
| Loss on Debt Extinguishment | 37,579 | - | 37,579 | - | ||||||||
| Interest Expense | 50,842 | 27,908 | 113,475 | 28,877 | ||||||||
| Net Loss | $ | (1,101,815 | ) | $ | (54,356 | ) | $ | (1,474,195 | ) | $ | (497,976 | ) |
| Basic loss per Common Share | $ | (.04 | ) | $ | (.00 | ) | $ | (.05 | ) | $ | (.02 | ) |
| Diluted loss per Common Share | $ | (.04 | ) | $ | (.00 | ) | $ | (.05 | ) | $ | (.02 | ) |
| Basic weighted average number of Common Shares outstanding | 31,468,245 | 31,269,160 | 31,468,245 | 31,269,160 | ||||||||
| Diluted weighted average number of Common Shares outstanding | 31,468,245 | 31,269,160 | 31,468,245 | 31,269,160 | ||||||||
| Trxade Group, Inc. | ||||||
| Consolidated Balance Sheets | ||||||
| June 30, 2016 and December 31, 2015 | ||||||
| (unaudited) | ||||||
| June 30, 2016 | December 31, 2015 | |||||
| Current Assets | ||||||
| Cash | $ | 319,588 | $ | 860,132 | ||
| Accounts Receivable, net | 373,653 | 498,100 | ||||
| Inventory, net | 538,757 | 284,718 | ||||
| Prepaid Net Assets | 203,558 | 201,361 | ||||
| Other Assets | - | 183,359 | ||||
| Total Current Assets | 1,435,536 | 2,027,670 | ||||
| Total Assets | $ | 1,435,536 | $ | 2,027,670 | ||
| Liabilities and Shareholders’ Equity (Deficit) | ||||||
| Current Liabilities | ||||||
| Accounts Payable | $ | 353,067 | $ | 356,159 | ||
| Accrued Liabilities | 608,864 | 296,803 | ||||
| Promissory Note, net of $37,500 and $15,000 discount | 212,500 | 235,000 | ||||
| Convertible Note, net of $0 and $35,697 discount | 165,000 | 164,303 | ||||
| Total Current Liabilities | 1,339,431 | 1,052,265 | ||||
| Long Term Liabilities | ||||||
| Convertible Note net of $256,273 and $241,612 discount | 943,727 | 708,388 | ||||
| Total Liabilities | 2,283,158 | 1,760,653 | ||||
| Shareholders’ Equity | ||||||
| Series A Preferred Stock, $.00001 par value, 10,000,000 authorized; 0 and 0 issued and outstanding, as of June 30, 2016 and December 31, 2015 | - | - | ||||
| Common Stock, $0.00001 par value; 100,000,000 shares authorized; 31,535,827 and 31,269,160 shares issued and outstanding, as of June 30, 2016 and December 31, 2015, respectively | 315 | 314 | ||||
| Additional Paid-in Capital | 6,275,229 | 5,915,674 | ||||
| Retained Earnings (Deficit) | (7,123,166 | ) | (5,648,971 | ) | ||
| Total Shareholders’ Equity (Deficit) | (847,622 | ) | 267,017 | |||
| Total Liabilities and Shareholders’ Equity (Deficit) | $ | 1,435,536 | $ | 2,027,670 | ||