UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or
15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 2, 2015
000-55218
(Commission file number)
Trxade Group, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 46-3673928 |
| (State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
1115 Gunn Hwy.
Suite 202
Odessa, FL 33556
(Address of principal executive offices)
800-261-0281
(Issuer's telephone number)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On November 2, 2015 the Registrant issued its third quarter earnings press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. | Exhibit Description |
99.1 |
Press Release dated November 2, 2015 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
Trxade Group, Inc. (Registrant)
| ||
|
November 2, 2015 (Date) |
/s/ SUREN AJJARAPU Suren Ajjarapu |
EXHIBIT 99.1
Third Quarter Highlights:
TAMPA, Fla., Nov. 2, 2015 (GLOBE NEWSWIRE) -- Trxade Group, Inc., (OTCQB:TRXD), a web-based market platform with 4,500 registered independent pharmacy customers that enables its customers to quickly source and purchase pharmaceuticals, accessories and services from a wide range of manufacturers and drug distributors today reported record financial results for the its third quarter ending September 30, 2015.
Record Third Quarter Financial Results
Revenues for the three months ended September 30, 2015 were a record $1,637,875, compared to $372,690 for the same period in 2014, an increase of 339%. The increase in revenues for 2015 was primarily due to increased fee income from the Company's web-based platform and pharmaceutical sales.
Cost of sales in the quarter rose to $700,637 compared to $77,153 for the comparable period in 2014. This increase was primarily attributable to an increase in revenue from pharmaceutical sales, which has higher cost of sales than the Company's other revenue sources.
Gross profit from the three-month period ended September 30th 2015 and 2014 was $937,238 compared to $295,537 respectfully.
The net operating loss for the three-month period ended September 30, 2015 and 2014 was $(123,762) and $(351,883), respectively.
The Company's third quarter results reflect a solid 15% growth over second quarter transactional revenue for its supplier-to-pharmacy trade (S2P). The Company's Network continues to expand rapidly, adding 675 new pharmacies during the third quarter, up 9% sequentially over the second quarter.
Company CEO Sees Accelerated Growth in Coming Quarters
"We are pleased with the significant progress we achieved during the third quarter of 2015. Launching new products like Trxade Prime and crossing 4,500 registered pharmacies on our platform was a major milestone for our company. We are encouraged by the early feedback received from these independent pharmacies on Trxade Prime on its use. These services are producing significant cost savings for our network and will continue to be one of the driving forces for the adoption of our services as our network continues to expand," said Suren Ajjarapu, Chairman and Chief Executive Officer of Trxade Group.
Mr. Ajjarapu continued, "We enter the fourth quarter of 2015 well positioned across our products from a marketing, online experience and private label distribution standpoint. We expect the impressive growth rate of our Network to continue, which will be the key to the success of our business strategy moving forward. Further, we have managed to accomplish this with only a modest outlay of capital and believe our current balance sheet strength will provide us with the necessary financial flexibility to support our future growth. We remain focused on our execution and expect accelerating growth and a clear path towards profitability in the coming quarters," concluded Mr. Ajjarapu.
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 4,500 registered members. Trxade Group also distribute directly private label pharmaceuticals thru their 100% subsidiary Westminster Pharmaceuticals to these registered members. 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 Nine Months Ended September 30, 2015 and 2014 | ||||
| (unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| 2015 | 2014 | 2015 | 2014 | |
| Revenues | $ 1,637,875 | $ 372,690 | $ 3,501,203 | $ 904,603 |
| Cost of Sales | 700,637 | 77,153 | 1,313,104 | 275,129 |
| Gross Profit | 937,238 | 295,537 | 2,188,099 | 629,474 |
| Operating Expenses | ||||
| General and Administrative | 1,013,801 | 645,363 | 2,733,761 | 1,623,847 |
| Operating Loss | (76,563) | (349,826) | (545,662) | (994,373) |
| Loss on Debt Conversion | -- | -- | -- | 576,417 |
| Interest Expense | 47,199 | 2,057 | 76,076 | 4,109 |
| Net Loss | $ (123,762) | $ (351,883) | $ (621,738) | $ (1,574,899) |
| Basic loss per Common Share | $ (0.00) | $ (0.01) | $ (0.02) | $ (0.05) |
| Diluted loss per Common Share | $ (0.00) | $ (0.01) | $ (0.02) | $ (0.05) |
| Basic weighted average number of | ||||
| Common Shares outstanding | 31,269,160 | 29,595,609 | 31,269,160 | 29,385,234 |
| Diluted weighted average number of | ||||
| Common Shares outstanding | 31,269,160 | 29,595,609 | 31,269,160 | 29,385,234 |
| Trxade Group, Inc. | ||
| Consolidated Balance Sheets | ||
| September 30, 2015 and December 31, 2014 | ||
| (unaudited) | ||
| September 30, | December 31, | |
| 2015 | 2014 | |
| Assets | ||
| Current Assets | ||
| Cash | $ 324,622 | $ 705,602 |
| Accounts Receivable, net | 443,598 | 349,025 |
| Inventory | 358,036 | 46,429 |
| Prepaid Assets | 202,068 | 57,676 |
| Other Assets | 24,210 | 59,584 |
| Total Current Assets | 1,352,534 | 1,218,316 |
| Property and Equipment (net) | -- | 3,802 |
| Total Assets | $ 1,352,534 | $ 1,222,118 |
| Liabilities and Shareholders' Equity (Deficit) | ||
| Current Liabilities | ||
| Accounts Payable | $ 332,084 | $ 291,059 |
| Accrued Liabilities | 273,893 | 175,786 |
| Other Liabilities | 5,044 | 64,264 |
| Promissory Note, net of $26,250 and $0 discount | 223,750 | -- |
| Convertible Note, net of $62,470 and $0 discount | 137,530 | -- |
| Deferred Income | -- | 22,568 |
| Total Current Liabilities | 972,301 | 553,677 |
| Shareholders' Equity | ||
| Preferred Stock, $0.00001 par value; 100,000,000 shares authorized; 0 shares issued and outstanding, as of September 30, 2015 and December 31, 2014, respectively | -- | -- |
| Common Stock, $0.00001 par value; 100,000,000 shares authorized; 31,269,160 and 31,269,160 shares issued and outstanding, as of September 30, 2015 and December 31, 2014, respectively | 312 | 312 |
| Additional Paid-in Capital | 5,533,447 | 5,199,917 |
| Retained Earnings (Deficit) | (5,153,526) | (4,531,788) |
| Total Shareholders' Equity | 380,233 | 668,441 |
| Total Liabilities and Shareholders' Equity | $ 1,352,534 | $ 1,222,118 |
CONTACT: Investor Relations Contact:
Max Pashman
818-280-6800
mpashman@irpartnersinc.com