OREANDA-NEWS. 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, 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