TAMPA, Fla., April 21, 2016 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Trxade Group, Inc. (OTCQB: TRXD) we are advised by the company that the third bullet point under "First Quarter Highlights" should read "Net loss narrowed to ($372,380)" rather than "Operating loss narrowed to ($372,380)" as previously stated.
The corrected release follows:
First Quarter Highlights:
- Company achieves record revenues of $1.8 million in quarter ending March 31, 2016, an increase of 165% over $696,000 in quarter ending March 31, 2015
- Gross profit increased to $831,069 from $465,670 in quarters ending March 31, 2016 and 2015, respectively
- Net loss narrowed to ($372,380) from ($443,620) in the quarter ending March 31, 2016 and 2015, respectively
- Trxade’s trading platform achieves record quarterly operating profit for 1Q16
- As of end of 1Q16, Trxade has added over 441 independent pharmacies to its trading platform, to reach a record 5,500 members
- Company launches HCTZ (Hydrochlorothiazide) to treat fluid edema in 1Q16
Trxade Group, Inc. (OTCQB: TRXD), a pharmaceutical company that distributes private label pharmaceuticals through its wholly-owned subsidiary Westminster Pharmaceuticals, LLC and Trxade, Inc. a web-based market platform that enables registered independent pharmacies to quickly source and purchase pharmaceuticals, accessories and services from a wide range of manufacturers and drug distributors, today reported financial results for its first quarter, ended March 31, 2016 and provided a business update and positive outlook for 2016.
Company Produces 165% Increase in First Quarter Revenues, a New Record
Revenues for the three months ended March 31, 2016 were $1,847,151 -- an increase of 165% over $696,133 in the year-ago quarter, and 24% higher sequentially over the fourth quarter ended December 31, 2015. The revenue growth was primarily attributable to increased wholesale pharmaceutical sales from its wholly owned subsidiary Westminster Pharmaceuticals, LLC and an increase of fee income generated from the Company’s web-based supplier-to-pharmacy trading platform (www.trxade.com).
For the first quarter ended March 31, 2016, the Company reported that its net loss narrowed to ($372,380), or ($0.01) per basic and diluted share, compared with a net loss of ($443,620), or ($0.01) per basic and diluted share in the year ago quarter and versus ($495,445), or ($0.02) per basic and diluted share, for the fourth quarter of 2015.
The Company’s cost of sales was $1,016,082 and $230,463 for the quarters ending March 31, 2016 and 2015, respectively. This increase reflected a sales mix with greater revenue from wholesale pharmaceutical sales, which carries a higher cost of sales than the Company’s other revenue sources. Gross profit increased to $831,069 from $465,670 in the quarter ending March 31, 2016 and 2015, respectively.
While general and administrative expenses increased to $1,140,816 in the first quarter of 2016 compared with $908,321 in the year-ago quarter, it decreased sequentially from $1,317,412 in the fourth quarter of 2015. Operating losses for the first quarter of 2016 narrowed to ($309,747) versus ($442,651) in the year-ago quarter, and narrowed sequentially from ($441,385) from the fourth quarter, ended December 31, 2015.
Company Launches HCTZ (Hydrochlorothiazide) to Treat Fluid Edema in First Quarter of 2016
During the first quarter of 2016, the Company also announced that its wholly-owned subsidiary, Westminster Pharmaceuticals LLC, has launched the generic drug HCTZ (Hydrochlorothiazide) as part of an agreement with ScieGen Pharmaceuticals, Inc. ScieGen’s ANDA Number 203018 for Hydrochlorothiazide treats fluid retention (edema) in people with congestive heart failure, cirrhosis of the liver, kidney disorders, or edema caused by taking steroids or estrogen. This medication, which is also used to treat high blood pressure (hypertension), will be marketed under the Westminster Pharmaceuticals, LLC private label. Under the terms of the supply and distribution agreement with ScieGen, Westminster will semi-exclusively market and distribute ScieGen’s product in the United States.
CEO Sees Continuing Strong Revenue Growth and Profitability in 2016
“Our proprietary trading platform at www.trxade.com, which enables independent pharmacies to purchase drugs at an average discount of between 15%-20%, is adding new members on a monthly basis at record levels and, as a result, enabling us to experience strong top and bottom line growth across the board,” said Suren Ajjarapu, Chairman and Chief Executive Officer of Trxade Group. “Our 2016 fiscal year is off to a record start -- well ahead of our internal plan and budget -- and in-line with our primary objective of expanding our membership base while simultaneously focusing on increasing their utilization rates. At the end of the first quarter, we reported record platform subscribers, record transactional revenue, record gross profit – along with net and operating losses both narrowing substantially in the first quarter of 2016.
“Accordingly, I am optimistic we will reach profitability in the current fiscal year as increasing pharmaceutical prices drive independent pharmacies and payors and consumers to be more aggressive in sourcing medication. In response to increasing customer demand, we are actively developing new product offerings and increased data analytics capability to add greater value by helping the independent pharmacies better manage their inventory and costs,” Mr. Ajjarapu concluded.
About Trxade Group, Inc.
Headquartered in Tampa, Florida, Trxade Group, Inc. (OTCQB: TRXD) is a pharmaceutical company that distributes private label pharmaceuticals wholesale through its wholly-owned subsidiary Westminster Pharmaceuticals, LLC and Trxade, Inc., with over 5,500 registered independent pharmacies, is a web-based market platform that enables the pharmacies to quickly source and purchase pharmaceuticals, accessories and services from a wide range of manufacturers and drug distributors. For additional information, please visit us at 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.
| Trxade Group, Inc. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (unaudited) | ||||||||||
| March 31, 2016 | December 31, 2015 | |||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash | $ | 508,279 | $ | 860,132 | ||||||
| Accounts Receivable, net | 452,141 | 498,100 | ||||||||
| Inventory, net | 475,862 | 284,718 | ||||||||
| Prepaid Assets | 220,095 | 201,361 | ||||||||
| Other Assets | 167,509 | 183,359 | ||||||||
| Total Current Assets | 1,823,886 | 2,027,670 | ||||||||
| Total Assets | $ | 1,823,886 | $ | 2,027,670 | ||||||
| Liabilities and Shareholders’ Equity (Deficit) | ||||||||||
| Current Liabilities | ||||||||||
| Accounts Payable | $ | 338,541 | $ | 356,159 | ||||||
| Accrued Liabilities | 396,477 | 296,803 | ||||||||
| Notes Payable net of $3,750 and $15,000 discount | 246,250 | 235,000 | ||||||||
| Short term Convertible Payable | ||||||||||
| net of $8,923 and $35,697 discount | 191,077 | 164,303 | ||||||||
| Total Current Liabilities | 1,172,345 | 1,052,265 | ||||||||
| Long Term Liabilities | ||||||||||
| Convertible Note net of $220,621 and | ||||||||||
| $241,612 discount | 729,379 | 708,388 | ||||||||
| Total Liabilities | 1,901,724 | 1,760,653 | ||||||||
| Shareholders’ Equity/Deficit | ||||||||||
| Preferred Stock, $0.00001 par value; 10,000,000 | ||||||||||
| shares authorized; 0 shares issued and outstanding, | ||||||||||
| as of March 31, 2016 and December 31, 2015, | ||||||||||
| respectively | -- | -- | ||||||||
| Common Stock, $0.00001 par value; 100,000,000 | ||||||||||
| shares authorized; 31,435,827 and 31,435,827 | ||||||||||
| shares issued and outstanding, as of March 31, 2016 | ||||||||||
| and December 31, 2015, respectively | 314 | 314 | ||||||||
| Additional Paid-in Capital | 5,943,199 | 5,915,674 | ||||||||
| Retained Earnings (Deficit) | (6,021,351 | ) | (5,648,971 | ) | ||||||
| Total Shareholders’ Equity (Deficit) | (77,838 | ) | 267,017 | |||||||
| Total Liabilities and Shareholders’ Equity (Deficit) | $ | 1,823,886 | $ | 2,027,670 | ||||||
| Trxade Group, Inc. | |||||||||||
| Consolidated Statements of Operations | |||||||||||
| (unaudited) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2016 | 2015 | ||||||||||
| Revenues | $ | 1,847,151 | $ | 696,133 | |||||||
| Cost of Sales | 1,016,082 | 230,463 | |||||||||
| Gross Profit | 831,069 | 465,670 | |||||||||
| Operating Expenses | |||||||||||
| General and Administrative | 1,140,816 | 908,321 | |||||||||
| Operating Loss | (309,747 | ) | (442,651 | ) | |||||||
| Interest Expense | 62,633 | 969 | |||||||||
| Net Loss | $ | (372,380 | ) | $ | (443,620 | ) | |||||
| Basic loss per Common Share | $ | (.01 | ) | $ | (.01 | ) | |||||
| Diluted loss per Common Share | $ | (.01 | ) | $ | (.01 | ) | |||||
| Basic weighted average number of | |||||||||||
| Common Shares outstanding | 31,435,827 | 31,269,160 | |||||||||
| Diluted weighted average number of | |||||||||||
| Common Shares outstanding | 31,435,827 | 31,269,160 | |||||||||