Scienture (SCNX) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 05, 2016
Document and Entity Information:
Entity Registrant Name	TRXADE GROUP, INC.
Entity Trading Symbol	trxd
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Central Index Key	1,382,574
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		31,535,827
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 319,588	$ 860,132
Accounts Receivable, net	373,653	498,100
Inventory, net	538,757	284,718
Prepaid Assets	203,538	201,361
Other Assets	0	183,359
Total Current Assets	1,435,536	2,027,670
Total Assets	1,435,536	2,027,670
Current Liabilities
Accounts Payable	353,067	356,159
Accrued Liabilities	608,864	296,803
Notes Payable net of $37,500 and $15,000 discount	212,500	235,000
Short term Convertible Payable 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
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized; 0 issued and outstanding, as of June 30, 2016 and December 31, 2015, respectively	0	0
Common Stock, $0.00001 par value, 100,000,000 shares authorized; 31,535,827 and 31,435,827 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

Consolidated Balance Sheets Par

Consolidated Balance Sheets Parentheticals - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Parentheticals
Notes Payable net of discount	$ 212,500	$ 235,000
Short term Convertible Payable net of discount	165,000	164,303
Convertible Note net of discount	$ 943,727	$ 708,388
Preferred Stock, par value	$ 0.00001	$ 0.00001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.00001	$ 0.00001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	31,535,827	31,435,827
Common Stock, shares outstanding	31,535,827	31,435,827

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
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	0	37,579	0
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	$ (0.04)	$ 0	$ (0.05)	$ (0.02)
Diluted loss per Common Share	$ (0.04)	$ 0	$ (0.05)	$ (0.02)
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

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities:
Net Loss	$ (1,474,195)	$ (497,976)
Adjustments to reconcile net loss to net cash provided by Operating activities:
Depreciation	0	2,400
Options expense	116,194	169,776
Loss on Debt Extinguishment	37,579	0
Bad Debt Expense	10,883	0
Amortization of debt discount	99,319	25,349
Changes in Operating assets and Liabilities:
Accounts Receivable	113,564	(67,781)
Prepaid Assets	(2,177)	(130,639)
Inventory	(254,039)	(375,505)
Other Assets	183,359	(26,121)
Accounts Payable	(3,092)	217,360
Accrued Liabilities	327,061	33,258
Other Liabilities	0	(23,988)
Deferred Income	0	(22,568)
Net Cash used in operating activities	(845,544)	(696,435)
Financing Activities:
Cash paid as Original Debt Discount	(45,000)	0
Proceeds from Short Term Convertible Debt	0	200,000
Repayments of Short Term Convertible Debt	(50,000)	0
Proceeds from Short Term Promissory Note	0	205,000
Proceeds from Long Term Convertible Debt	250,000	0
Proceeds from issuance of Common Stock	150,000	0
Net Cash provided by financing activities	305,000	405,000
Net increase or (Decrease) in Cash	(540,544)	(291,435)
Cash at Beginning of the Year	860,132	705,602
Cash at End of the Year (June 30, 2016 and 2015)	319,588	414,167
Supplemental Cash Flow Information
Cash Paid for Interest	9,739	11,028
Cash Paid for Income Taxes	0	0
Non-Cash Transactions
Reclass from accrued interest to short term convertible notes	15,000	0
Beneficial conversion features and relative fair value of warrants	$ 55,783	$ 107,093

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Trxade Group, Inc. (“Company”) owns 100% of Trxade, Inc. and Westminster Pharmaceutical LLC. The merger of Trxade, Inc. and Trxade Group, Inc. occurred in July 2013. Westminster Pharmaceutical LLC was formed in January 2013. Trxade, Inc. is a web based market platform that enables trade among healthcare buyers and sellers of pharmaceuticals, accessories and services. Westminster Pharmaceutical LLC, provides US state licensed pharmacies and other buying groups with FDA approved pharmaceuticals as well as access to current benchmark pricing of pharmaceuticals. The accompanying unaudited interim financial statements of Trxade Group, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10K Registration Statement. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2015 as reported in the Company’s Registration Statement on Form 10K have been omitted Income (loss) Per Share – Basic net loss per common share is computed by dividing net loss available to commons stockholders by the weighted average number of common shares outstanding. Diluted net loss per common share is computed similar to basic net loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilute. At June 30, 2016 diluted net loss per share is equivalent to basic net loss per share as the inclusion of any shares committed to be issued would be anti-dilutive. The following table sets forth the computation of basic and diluted Loss per Share: Three-month Six-month June 30, 2016 June 30, 2016 Numerator: Net Loss $ (1,101,815) $ (1,474,195) Numerator for basic EPS – income (loss) Available to common shareholders (1,101,815) (1,474,195) Numerator for diluted EPS – income (loss) Income available to common shareholders (1,101,815) (1,474,195) Denominator: Denominator for basic EPS – Weighted average shares 31,468,245 31,468,245 Denominator for diluted EPS - Weighted-average shares and assumed Conversions 31,468,245 31,468,245 Basic loss per common share $ (0.04) $ (0.05) Diluted loss per common share $ (0.04) $ (0.05)

SHORT-TERM DEBT

SHORT-TERM DEBT	6 Months Ended
	Jun. 30, 2016
SHORT-TERM DEBT
SHORT-TERM DEBT	NOTE 2 – SHORT-TERM DEBT Convertible Promissory Note Convertible promissory notes were issued in the aggregate amount of $200,000 in April and May 2015. The term of the notes was one year. Simple interest of 10% was payable at the maturity date of the note. Prior to maturity the notes may be converted for common stock at a conversion price of $1.50. The holders of the notes were granted warrants at one share of common stock for every $4.00 of the note principal amount, which totaled a warrant to purchase 50,000 shares of common stock. These warrants were issued at a strike price of $1.50 and an expiration date of five years from date of issuance. In April and May 2016, $50,000 of the $200,000 in convertible promissory notes (plus $5,000 in interest) was repaid. A one-year extension was executed on the remaining notes and the interest owed, totaling $15,000 became part of the adjusted principal of notes and the balance of $165,000 is due May 2017. In connection with the one-year extension of the maturity date of the outstanding notes, the holders of the notes were granted warrants at one common stock for $4.00 of the note amount, and warrants to purchase 41,250 shares of common stock were issued at a strike price of $1.50 and an expiration date of five years from date of issuance. The amendment of the note was considered a debt extinguishment and a loss on extinguishment of debt was booked in the amount of $37,579 for the quarter ended June 30, 2016. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815-40 and determined that the embedded conversion feature does not meet the definition of a derivative liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and a total debt discount of $53,546 was recorded in 2015 and $0 as of the date of the debt modification. The Company also uses the Black-Scholes pricing model to estimate the fair value of the warrants issued along with convertible notes on the date of grant. The Company accounted for the relative fair value of the warrants issued and a total debt discount $53,546 was recorded in 2015. During the six months ended June 30, 2016, a debt discount of $ $35,697 was amortized. As of June 30, 2016, the short term convertible notes had a principal balance of $165,000 with an unamortized debt discount of $0. Promissory Note In May 2015, a promissory note was issued in the face amount of $250,000. The term of that note was one year. The note has an original issuance discount of $45,000, thus the cash proceeds from the promissory note is $205,000. In May 2016, the promissory note was renewed in the face amount of $250,000 and the term was extended an additional year. The note has an original issuance discount of $45,000 and this amount was paid in cash at the renewal. During the six months ended June 30, 2016, a debt discount of $22,500 was amortized. As of June 30, 2016, the promissory note has a principal balance of $250,000 with an unamortized debt discount of $37,500.

LONG TERM DEBT

LONG TERM DEBT	6 Months Ended
	Jun. 30, 2016
LONG TERM DEBT
LONG TERM DEBT	NOTE 3 – LONG TERM DEBT Convertible Promissory Note Secured convertible promissory notes were issued in the aggregate amount of $950,000 in November and December 2015. The original term of the notes was three years. In June 2016 the note was extended to a four-year maturity for consideration of a senior secured position on the assets of the Company. Interest rate is a “Royalty Payment” which consists of a percentage of net Profit of certain transactions, payable within 45 days of the end of each quarter. Prior to maturity the notes may be converted for common stock at a conversion price of $2.50. The holders of the notes were granted a warrant to purchase 316,667 shares of common stock at a strike price of $0.01 and an expiration date of five years from date of issuance In June 2016 an additional $250,000 was issued under the secured convertible promissory notes. The holders of the notes were granted additional warrants (under the same terms above) to purchase 83,333 shares of common stock at a strike price of $0.01. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815 40 and determined embedded conversion feature does not meet the definition of a liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and a total debt discount of $0 was recorded in 2015. The Company also uses the Black-Scholes pricing model to estimate the fair value of the warrants issued along with convertible notes on the date of grant. The Company accounted for relative fair value of the warrants issued and a total debt discount of $251,883 was recorded in 2015. An additional discount of $55,783 was recorded in 2016. During the six months ended June 30, 2016, a debt discount of $41,122 was amortized. As of June 30, 2016, convertible note has a principal balance of $1,200,000, net of an unamortized debt discount of $256,273.

WARRANTS

WARRANTS	6 Months Ended
	Jun. 30, 2016
WARRANTS
WARRANTS	NOTE 4 - WARRANTS For the six-month period ended June 30, 2016, 149,583 warrants were issued, and none were exercised or forfeited. The Company’s outstanding and exercisable warrants as of June 30, 2016 are presented below: Number Weighted Average Contractual Intrinsic Outstanding Exercise Price Life in Years Value Warrants Outstanding as of December 31, 2015 845,000 $ 0.61 3.77 $ 435,900 Warrants Granted 149,583 0.42 5.00 - Warrants Forfeited - - - - Warrants Exercised - - - - Warrants Outstanding as of June 30, 2016 994,583 $ 0.58 4.14 $ 434,566

OPTIONS

OPTIONS	6 Months Ended
	Jun. 30, 2016
OPTIONS
OPTIONS	NOTE 5 - OPTIONS The Company maintains a stock option plan under which certain employees are awarded option grants based on a combination of performance and tenure. The stock option plan provides for the grant of up to 2,000,000 shares. All options may be exercised for a period up to 5 years following the grant date, after which they expire. Options are vested in 4 or 5 years from the grant date. For the six-month period ended June 30, 2016, 176,500 options were issued, and 65,000 options were forfeited or expired due to employee resignation. The options were not vested and the option expense reversed was $47,370. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant. Total compensation cost related to stock options was $116,194 for the six-months ended June 30, 2016. As of June 30, 2016, there was $398,736 of unrecognized compensation costs related to stock options, which is expected to be recognized over a weighted average period of 4.0 to 5.0 years. The following table represents stock option activity as of and for the period ended June 30, 2016: Number of Average Contractual Intrinsic Options Exercise Price Life in Years Value Outstanding at December 31, 2015 1,200,000 $ 1.07 5.19 - Exercisable at December 31, 2015 332,000 $ 1.04 3.34 $ 28,000 Forfeited 42,500 $ 1.56 8.17 - Granted 176,000 $ 1.02 9.78 - Expired 22,500 $ 1.53 7.82 - Outstanding at June 30, 2016 1,311,500 $ 1.13 5.70 - Exercisable at June 30, 2016 511,688 $ 1.02 3.07 $ 7,516

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2016
Equity:
Stockholders' Equity Note Disclosure	NOTE 6 – EQUITY Under a Private Offer Memorandum, 100,000 shares of common stock was issued for $150,000 cash in June 2016. The common stock was sold at $1.50 per share. In connection with this common stock offering warrants to purchase 25,000 shares of common stock were issued at a strike price of $0.01 and an expiration date of five years.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2016
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 7– SEGMENT REPORTING The Company classifies its business interests into two reportable segments, which are Trxade and Westminster. Trxade is our web based market platform that enables trade among healthcare buyers and sellers of pharmaceuticals, accessories and services, and Westminster provides pharmacies and other buying groups with pharmaceuticals. Three months ended June 30, 1016 Six months ended June 30, 2016 2016 2015 2016 2015 Revenues Trxade $ 585,495 $ 676,233 $ 1,217,261 $ 1,179,936 Westminster $ 1,100,655 $ 380,930 $ 2,303,219 $ 508,570 Segment Profit/Loss Trxade $ (231,179) $ 160,382 $ (368,852) $ 65,730 Westminster $ (772,844) $ (210,581) $ (1,100,590) $ (544,156) Assets Trxade $ 345,526 $ 470,225 Westminster $ 993,048 $ 769,384 Corporate Overhead was allocated based on revenue, and amounted to $(634,397) and $(237,027) for the three months June 30, 2016 and 2015, respectively. The amount was $(936,473) and $(494,631) for the six months ended June 30, 2016.

CONTIGENCY

CONTIGENCY	6 Months Ended
	Jun. 30, 2016
CONTIGENCY
CONTIGENCY	NOTE 8– CONTIGENCY On November 19, 2015, Family Medicine Pharmacy, LLC filed a class-action claim against Trxade Group, Inc. and its wholly owned subsidiary Westminster Pharmaceutical, LLC, Inc. (Family Medicine Pharmacy, LLC v. Trxade Group, Inc. and Westminster, Inc., Case No.: 1:15-CV-00590-KD-B, United States District Court, Southern District of Alabama, Mobile Division). Family Medicine has served Trxade for allegedly utilizing a “junk fax” advertising program. On June 6, 2016, we entered into a binding memorandum of understanding with the plaintiff related to this litigation to resolve all claims in exchange for Trxade funding a settlement fund in the amount of $200,000. Pending objections and/or resolutions, we are currently waiting for the court’s final approval of the settlement. We believe this case will settle under the proposed settlement, therefore, under ASC 450 – “Contingencies”, an accrual of $200,000 is recorded as of June 30, 2016.

COMPUTATION OF BASIC AND DILUTE

COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (TABLES)	6 Months Ended
	Jun. 30, 2016
COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (TABLES)
COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (TABLES)	The following table sets forth the computation of basic and diluted Loss per Share: Three-month Six-month June 30, 2016 June 30, 2016 Numerator: Net Loss $ (1,101,815) $ (1,474,195) Numerator for basic EPS – income (loss) Available to common shareholders (1,101,815) (1,474,195) Numerator for diluted EPS – income (loss) Income available to common shareholders (1,101,815) (1,474,195) Denominator: Denominator for basic EPS – Weighted average shares 31,468,245 31,468,245 Denominator for diluted EPS - Weighted-average shares and assumed Conversions 31,468,245 31,468,245 Basic loss per common share $ (0.04) $ (0.05) Diluted loss per common share $ (0.04) $ (0.05)

SCHEDULE OF OUTSTANDING AND EXE

SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (TABLES)	6 Months Ended
	Jun. 30, 2016
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (TABLES)
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (TABLES)	Number Weighted Average Contractual Intrinsic Outstanding Exercise Price Life in Years Value Warrants Outstanding as of December 31, 2015 845,000 $ 0.61 3.77 $ 435,900 Warrants Granted 149,583 0.42 5.00 - Warrants Forfeited - - - - Warrants Exercised - - - - Warrants Outstanding as of June 30, 2016 994,583 $ 0.58 4.14 $ 434,566

SCHEDULE OF STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (TACBLES)	6 Months Ended
	Jun. 30, 2016
SCHEDULE OF STOCK OPTION ACTIVITY (TACBLES)
SCHEDULE OF STOCK OPTION ACTIVITY (TACBLES)	Number of Average Contractual Intrinsic Options Exercise Price Life in Years Value Outstanding at December 31, 2015 1,200,000 $ 1.07 5.19 - Exercisable at December 31, 2015 332,000 $ 1.04 3.34 $ 28,000 Forfeited 42,500 $ 1.56 8.17 - Granted 176,000 $ 1.02 9.78 - Expired 22,500 $ 1.53 7.82 - Outstanding at June 30, 2016 1,311,500 $ 1.13 5.70 - Exercisable at June 30, 2016 511,688 $ 1.02 3.07 $ 7,516

SEGMENT REPORTING (TABLES)

SEGMENT REPORTING (TABLES)	6 Months Ended
	Jun. 30, 2016
SEGMENT REPORTING (TABLES)
SEGMENT REPORTING (TABLES)	Three months ended June 30, 1016 Six months ended June 30, 2016 2016 2015 2016 2015 Revenues Trxade $ 585,495 $ 676,233 $ 1,217,261 $ 1,179,936 Westminster $ 1,100,655 $ 380,930 $ 2,303,219 $ 508,570 Segment Profit/Loss Trxade $ (231,179) $ 160,382 $ (368,852) $ 65,730 Westminster $ (772,844) $ (210,581) $ (1,100,590) $ (544,156) Assets Trxade $ 345,526 $ 470,225 Westminster $ 993,048 $ 769,384

COMPUTATION OF BASIC AND DILU18

COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (DETAILS) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Numerator:
Net Loss	$ (1,101,815)	$ (1,474,195)
Numerator for basic EPS - income (loss) Available to common shareholders	(1,101,815)	(1,474,195)
Numerator for diluted EPS - income (loss) Income available to common shareholders	(1,101,815)	(1,474,195)
Denominator:
Denominator for basic EPS - Weighted average shares	31,468,245	31,468,245
Denominator for diluted EPS - Weighted-average shares and assumed Conversions	31,468,245	31,468,245
Basic loss per common share	$ (0.04)	$ (0.05)
Diluted loss per common share	$ (0.04)	$ (0.05)

CONVERTIBLE PROMISSORY NOTE (DE

CONVERTIBLE PROMISSORY NOTE (DETAILS) - USD ($)	Jun. 30, 2016	May 31, 2016	Apr. 30, 2016	May 31, 2015	Apr. 30, 2015
CONVERTIBLE PROMISSORY NOTE
Convertible promissory notes issued in amount	$ 0	$ 0	$ 0	$ 200,000	$ 200,000
Simple interest payable at the maturity date of the note	0.00%	0.00%	0.00%	10.00%	10.00%
Conversion price	$ 1.50	$ 0	$ 0	$ 0	$ 0
Granted warrants at one common stock of note	4	0	0	0	0
Warrants issued	50,000	0	0	0	0
Exercise price of warrants	$ 1.50	$ 0	$ 0	$ 0	$ 0
Convertible promissory notes was repaid	$ 0	$ 200,000	$ 50,000	$ 0	$ 0
Interest repaid	0	0	5,000	0	0
A one-year extension was executed on the remaining notes and the interest owed	15,000	0	0	0	0
Principal of notes and the balance	165,000	0	0	0	0
Debt extinguishment and a loss on extinguishment of debt was booked in the amount	37,579	0	0	0	0
Beneficial Conversion Feature inherent to convertible note payable and total debt discount	53,546	0	0	0	0
Fair value of the warrants issued and a total debt discount	53,546	0	0	0	0
Debt discount was amortized	35,697	0	0	0	0
Convertible note has a balance of net	165,000	0	0	0	0
Unamortized debt discount	0	0	0	0	0
Promissory Note
Promissory note was issued in the face amount	$ 0	$ 250,000	$ 0	$ 250,000	$ 0
Term of note in years	0	1	0	1	0
Original issuance discount	$ 0	$ 45,000	$ 0	$ 45,000	$ 0
Cash proceeds from the promissory note	0	0	0	205,000	0
Promissory note has a principal balance	250,000	0	0	0	0
Unamortized debt discount of Promissory note	37,500	0	0	0	0
Outsatanding debt discount amortized	$ 22,500	$ 0	$ 0	$ 0	$ 0

LONG TERM DEBT (DETAILS)

LONG TERM DEBT (DETAILS)	Jun. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Nov. 30, 2015USD ($)$ / sharesshares
LONG TERM DEBT DETAILS
Convertible promissory notes issued in amount	$ 250,000	$ 500,000	$ 450,000
Conversion price | $ / shares	$ 2.50	$ 2.50	$ 2.50
Granted warrant to purchase shares of common stock | shares	83,333	166,667	150,000
Warrants issued at a strike price	0.01	0.01	0.01
An additional warrants were issued | shares	0	0	10,000
Fair value of the warrants issued and a total debt discount	$ 78,202	$ 133,994	$ 117,889
Debt discount was amortized	41,122
Convertible note Principal a balance	1,200,000
Unamortized debt discount	256,273
An additional discount was recorded	$ 55,783

OUTSTANDING AND EXERCISABLE WAR

OUTSTANDING AND EXERCISABLE WARRANTS (DETAILS) {STOCKHOLDER EQUITY}	6 Months Ended
	Jun. 30, 2016shares
Number Outstanding
Warrants Outstanding	845,000
Warrants Granted	149,583
Warrants Exercised	0
Warrants Outstanding	994,583
Weighted Average Exercise Price
Warrants Outstanding	0.61
Warrants Granted	0.42
Warrants Outstanding	0.58
Contractual Life in Years
Warrants Outstanding	3.77
Warrants Granted	5
Warrants Outstanding	4.14
Intrinsic Value
Warrants Outstanding	435,900
Warrants Forfeited	0
Warrants Outstanding	434,566

OPTIONS (DETAILS)

OPTIONS (DETAILS)	6 Months Ended
	Jun. 30, 2016shares
OPTIONS DETAILS
Stock Options plan provides for the grant	2,000,000
Options issued	176,500
Options forfeited and expired	65,000
Option expense reversed	47,370
Compensation
Total compensation cost related to stock options	116,194
Unrecognized compensation costs	398,736
Weighted average period in years	5

STOCK OPTION ACTIVITY (DETAILS)

STOCK OPTION ACTIVITY (DETAILS) {STOCKHOLDERS EQUITY}	6 Months Ended
	Jun. 30, 2016shares
Number of Options
Outstanding	1,200,000
Exercisable	332,000
Forfeited	42,500
Granted	176,000
Expired	22,500
Outstanding	1,311,500
Exercisable	511,688
Average Exercise Price
Outstanding	1.07
Exercisable	1.04
Forfeited	1.56
Granted	1.02
Expired	1.53
Outstanding	1.13
Exercisable	1.02
Contractual Life in Years
Outstanding	5.19
Exercisable	3.34
Forfeited	8.17
Granted	9.78
Expired	7.82
Outstanding	5.7
Exercisable	3.07
Intrinsic Value
Exercisable	28,000
Exercisable	7,516

EQUITY (DETAILS)

EQUITY (DETAILS)	Jun. 30, 2016USD ($)$ / sharesshares
EQUITY
Shares of common stock issued | shares	100,000
Shares of common stock was issued for cash | $	$ 150,000
Common stock was sold per share | $ / shares	$ 1.50
Warrants to purchase shares of common stock | shares	25,000
Common stock were issued at a strike price | $ / shares	$ 0.01

SEGMENT REPORTING (DETAILS)

SEGMENT REPORTING (DETAILS) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Trxade Revenues	$ 585,495	$ 676,233	$ 1,217,261	$ 1,179,936
Westminster Revenues	1,100,655	380,930	2,303,219	508,570
Segment Profit/Loss
Trxade Segment Profit/Loss	(231,179)	160,382	(368,852)	65,730
Westminster Segment Profit/Loss	(772,844)	(210,581)	(1,100,590)	(544,156)
Assets
Trxade Assets	345,526	470,225	0	0
Westminster Assets	993,048	769,384	0	0
Corporate Overhead was allocated based on revenue	$ (634,397)	$ (237,027)	$ (936,473)	$ (494,631)

CONTIGENCY (DETAILS)

CONTIGENCY (DETAILS)	Jun. 30, 2016USD ($)
CONTIGENCY DETAILS
Trxade funding a settlement fund	$ 200,000
Contingencies an accrual is recorded	$ 200,000