Scienture (SCNX) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document and Entity Information:
Entity Registrant Name	TRXADE GROUP, INC.
Entity Trading Symbol	trxd
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Entity Central Index Key	1,382,574
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		31,660,827
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	Q3

Consolidated Balance Sheets (un

Consolidated Balance Sheets (unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 94,551	$ 860,132
Accounts Receivable, net	388,796	498,100
Inventory, net	640,086	284,718
Prepaid Assets	144,865	201,361
Other Assets	81,150	183,359
Total Current Assets	1,349,448	2,027,670
Property and Equipment (net)	71,500	0
Total Assets	1,420,948	2,027,670
Current Liabilities
Accounts Payable	576,794	356,159
Accrued Liabilities	645,712	296,803
Promissory Note, net of $57,502 and $15,000 discount	332,100	235,000
Convertible Note, net of $69,574 and $35,697 discount	285,426	164,303
Total Current Liabilities	1,840,032	1,052,265
Long Term Liabilities
Convertible Note net of $236,329 and $241,612 discount	963,671	708,388
Long Term Notes Payable, net of $2,575 and $0 discount	43,065	0
Total Liabilities	2,846,768	1,760,653
Shareholders' Equity (Deficit)
Series A Preferred Stock, $.00001 par value, 10,000,000 authorized; 0 and 0 issued and outstanding, as of September 30, 2016 and December 31, 2015	0	0
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 31,660,827 and 31,435,827 shares issued and outstanding, as of September 30, 2016 and December 31, 2015, respectively	316	314
Additional Paid-in Capital	6,539,910	5,915,674
Accumulated Deficit	(7,966,046)	(5,648,971)
Total Shareholders' Equity (Deficit)	(1,425,820)	267,017
Total Liabilities and Shareholders' Equity (Deficit)	$ 1,420,948	$ 2,027,670

Consolidated Balance Sheets Par

Consolidated Balance Sheets Parentheticals - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Parentheticals
Promissory Note, net of discount	$ 57,502	$ 15,000
Short term Convertible Payable net of discount	69,574	35,697
Convertible Note net of discount	236,329	241,612
Long term notes payable, discount	$ 2,575	$ 0
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	31,660,827	31,435,827
Common Stock, shares outstanding	31,660,827	31,435,827

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Revenues	$ 803,278	$ 1,637,875	$ 4,339,419	$ 3,501,203
Cost of Sales	230,672	700,637	2,286,643	1,313,104
Gross Profit	572,606	937,238	2,052,776	2,188,099
Operating Expenses
General and Administrative	1,364,506	1,013,801	4,167,817	2,733,761
Operating Loss	(791,900)	(76,563)	(2,115,041)	(545,662)
Loss on Debt Extinguishment	0	0	(37,579)	0
Interest Expense	50,980	47,199	164,455	76,076
Net Loss	$ (842,880)	$ (123,762)	$ (2,317,075)	$ (621,738)
Basic loss per Common Share	$ (0.03)	$ 0	$ (0.07)	$ (0.02)
Diluted loss per Common Share	$ (0.03)	$ 0	$ (0.07)	$ (0.02)
Basic weighted average number of Common Shares outstanding	31,611,914	31,269,160	31,505,535	31,269,160
Diluted weighted average number of Common Shares outstanding	31,611,914	31,269,160	31,505,535	31,269,160

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities:
Net Loss	$ (2,317,075)	$ (621,738)
Adjustments to reconcile net loss to net cash used in Operating activities:
Depreciation	6,500	3,802
Bad debt expense	1,783	40,934
Inventory Allowance	(22,306)	0
Loss on Debt Extinguishment	37,579	0
Options expense	158,927	226,437
Amortization of debt discount	137,811	63,373
Changes in Operating assets and Liabilities:
Accounts Receivable	107,521	(135,507)
Prepaid Assets	56,496	(144,392)
Inventory	(333,062)	(311,607)
Other Assets	102,209	35,374
Accounts Payable	142,635	41,025
Accrued Liabilities	363,909	98,107
Other Liabilities	0	(59,220)
Deferred Income	0	(22,568)
Net Cash used in operating activities	(1,557,073)	(785,980)
Financing Activities:
Cash paid as Original Debt Discount	(45,000)	0
Proceeds from Convertible Debt	440,000	200,000
Repayments of Convertible Debt	(50,000)	0
Proceeds from Promissory Note	150,000	205,000
Repayments of Promissory Note	(3,758)	0
Proceeds from Issuance of Common Stock	300,000	0
Proceeds from Exercise of Warrants	250	0
Net Cash provided by financing activities	791,492	405,000
Net increase (decrease)	(765,581)	(380,980)
Cash at Beginning of the Year	860,132	705,602
Cash at September 30, 2016 and 2015	94,551	324,622
Supplemental Cash Flow Information
Cash Paid for Interest	22,227	28,967
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	127,482	107,093
Purchase of software on credit	$ 78,000	$ 0

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 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., ShopRX, Ltd., 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. ShopRX, Ltd. is the Company’s newly launched UK based subsidiary. The Company hopes to establish a similar business to Trxade, Inc. in the United Kingdom in the future under this entity. 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 September 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 Nine-month September 30, 2016 September 30, 2016 Numerator: Net Loss $ (842,880) $ (2,317,075) Numerator for basic EPS – income (loss) Available to common shareholders (842,880) (2,317,075) Numerator for diluted EPS – income (loss) Income available to common shareholders (842,880) (2,317,075) Denominator: Denominator for basic EPS – Weighted average shares 31,611,914 31,505,535 Denominator for diluted EPS - Weighted-average shares and assumed Conversions 31,611,914 31,505,535 Basic loss per common share $ (0.03) $ (0.07) Diluted loss per common share $ (0.03) $ (0.07)

GOING CONCERN

GOING CONCERN	9 Months Ended
	Sep. 30, 2016
GOING CONCERN
GOING CONCERN	NOTE 2 – GOING CONCERN These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The ability of the Company to continue as a going concern is dependent on raising additional capital and generating future profitable operations. There can be no assurance that the Company will be able to raise the necessary funds when needed to finance its ongoing costs. The Company’s future capital requirements will depend on many factors, including cash flow from operations, costs to complete platform improvements, if warranted, and competition and market conditions. The Company’s recurring operating losses and working capital needs will require that it obtain additional capital to operate its business. Given the Company’s limited operating history, lack of revenues, and its operating losses, there can be no assurance that it will be able to achieve and maintain profitability. Accordingly, these factors raise substantial doubt about the Company’s ability to continue as a going concern.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property and Equipment:
Property and Equipment	NOTE 3 – Property and Equipment In July 2016, the purchase of ERP software was completed. The cost of the acquisition was $78,000 and the total balance was outstanding at September 30, 2016. The depreciation for the current year is $6,500.

SHORT-TERM DEBT

SHORT-TERM DEBT	9 Months Ended
	Sep. 30, 2016
SHORT-TERM DEBT
SHORT-TERM DEBT	NOTE 4 – 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 nine months ended September 30, 2016. In August 2016, $40,000 in promissory notes were issued. The term of the note was one year. Simple interest of 10% is payable at the maturity date of the note. Prior to maturity the note may be converted for common stock at a conversion price of $1.50. In September 2016, convertible promissory notes were issued in the aggregate amount of $150,000. The term of the notes was one year. Simple interest of 10% is payable at the maturity date of the note. Prior to maturity the notes may be converted for common stock at a conversion price of $.62. 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 37,500 shares of common stock. These warrants were issued at a strike price of $.62 and an expiration date of five years from date of issuance. 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 and $71,699 was recorded in 2015 and 2016 respectively. During the nine months ended September 30, 2016, a debt discount of $ $37,822 was amortized. As of September 30, 2016, the short term convertible notes had a principal balance of $355,000 with an unamortized debt discount of $69,574. 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 nine months ended September 30, 2016, a debt discount of $37,500 was amortized. As of September 30, 2016, the short term promissory note has a principal balance of $389,602 with an unamortized debt discount of $57,502.

LONG TERM DEBT

LONG TERM DEBT	9 Months Ended
	Sep. 30, 2016
LONG TERM DEBT
LONG TERM DEBT	NOTE 5 – 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 nine months ended September 30, 2016, a debt discount of $61,066 was amortized. As of September 30, 2016, long term convertible note has a principal balance of $1,200,000, net of an unamortized debt discount of $236,329. Promissory Note In September 2016, a promissory note was issued for $189,000. The term of the note is 494 days. The debt discount was $39,000 thus the initial net proceeds were $150,000. At September 30, 2016, $139,602 was classified as short term with a discount of $35,002 and $45,640 was classified as long term with a discount of $2,575. Payments are made each weekday in the amount of $537. During the nine months ended September 30, 2016, $3,758 was paid off by cash, a debt discount of $1,423 was amortized.

WARRANTS

WARRANTS	9 Months Ended
	Sep. 30, 2016
WARRANTS
WARRANTS	NOTE 6 - WARRANTS For the nine-month period ended September 30, 2016, 212,083 warrants were issued, and 25,000 warrants were exercised at the price of $250. The Company’s outstanding and exercisable warrants as of September 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 212,083 0. 41 5.00 - Warrants Forfeited - - - - Warrants Exercised 25,000 0.01 - - Warrants Outstanding as of September 30, 2016 1,032,083 $ 0.58 3.33 $ 257,583

OPTIONS

OPTIONS	9 Months Ended
	Sep. 30, 2016
OPTIONS
OPTIONS	NOTE 7 - 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 nine-month period ended September 30, 2016, 176,500 options were issued, and 170,750 options were forfeited or expired due to employee resignation. The options were not vested and the option expense reversed was $75,514. 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 $158,927 for the nine-months ended September 30, 2016. As of September 30, 2016, there was $282,874 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 September 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 148,250 $ 1.03 8.84 - Granted 176,500 $ 1.02 9.53 - Expired 22,500 $ 1.53 7.57 - Outstanding at September 30, 2016 1,205,750 $ 1.06 4.61 - Exercisable at September 30, 2016 555,750 $ 1.04 2.97 -

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2016
EQUITY:
EQUITY	NOTE 8 – EQUITY Under a Private Offer Memorandum, 200,000 shares of common stock were issued for $300,000 cash, which included 100,000 shares in June 2016 and 100,000 shares in August. The common stock was sold at $1.50 per share. In connection with this common stock offering warrants to purchase 50,000 shares of common stock were issued at a strike price of $0.01 and an expiration date of five years.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2016
SEGMENT REPORTING
SEGMENT REPORTING	NOTE 9– 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 wholesale and private label pharmaceuticals. Westminster discontinued its wholesale business in July 2016 in order to focus on private label distribution. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Revenues Trxade $ 610,832 $ 761,235 $ 1,810,043 $ 1,977,971 Westminster $ 192,461 $ 832,699 $ 2,495,576 $ 1,341,269 Segment Profit/Loss Trxade $ (391,344) $ 226,684 $ (742,836) $ 311,529 Westminster $ (451,336) $ (319,113) $ (1,569,265) $ (882,385) Assets Trxade $ 342,969 $ 470,225 Westminster $ 897,295 $ 769,384 Corporate Overhead was allocated based on revenue, and amounted to $(266,815) and $(268,562) for the three months September 30, 2016 and 2015, respectively. The amount was $(1,197,266) and $(763,194) for the nine months ended September 30, 2016 and 2015, respectively.

CONTINGENCY

CONTINGENCY	9 Months Ended
	Sep. 30, 2016
CONTINGENCY:
CONTINGENCY	NOTE 10– CONTINGENCY 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 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. A hearing regarding the final approval is scheduled on February 21, 2017. An accrual of $200,000 is recorded as of September 30, 2016.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
SUBSEQUENT EVENTS:
SUBSEQUENT EVENTS	NOTE 11– SUBSEQUENT EVENTS Secured convertible promissory notes were issued in the aggregate amount of $200,000 in October of 2016. The original term of the notes was three years. 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 66,667 shares of common stock at a strike price of $0.01 and an expiration date of five years from date of issuance. In October of 2016 the Company entered into a loan with third parties for an amount of $47,000. The loan is due September of 2017 and carries a variable interest rate.

COMPUTATION OF BASIC AND DILUTE

COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 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 Nine-month September 30, 2016 September 30, 2016 Numerator: Net Loss $ (842,880) $ (2,317,075) Numerator for basic EPS – income (loss) Available to common shareholders (842,880) (2,317,075) Numerator for diluted EPS – income (loss) Income available to common shareholders (842,880) (2,317,075) Denominator: Denominator for basic EPS – Weighted average shares 31,611,914 31,505,535 Denominator for diluted EPS - Weighted-average shares and assumed Conversions 31,611,914 31,505,535 Basic loss per common share $ (0.03) $ (0.07) Diluted loss per common share $ (0.03) $ (0.07)

SCHEDULE OF OUTSTANDING AND EXE

SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (Tables)	9 Months Ended
	Sep. 30, 2016
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (TABLES)
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (TABLES)	The Company’s outstanding and exercisable warrants as of September 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 212,083 0. 41 5.00 - Warrants Forfeited - - - - Warrants Exercised 25,000 0.01 - - Warrants Outstanding as of September 30, 2016 1,032,083 $ 0.58 3.33 $ 257,583

SCHEDULE OF STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (Tables)	9 Months Ended
	Sep. 30, 2016
SCHEDULE OF STOCK OPTION ACTIVITY (TABLES)
SCHEDULE OF STOCK OPTION ACTIVITY (TABLES)	The following table represents stock option activity as of and for the period ended September 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 148,250 $ 1.03 8.84 - Granted 176,500 $ 1.02 9.53 - Expired 22,500 $ 1.53 7.57 - Outstanding at September 30, 2016 1,205,750 $ 1.06 4.61 - Exercisable at September 30, 2016 555,750 $ 1.04 2.97 -

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2016
SEGMENT REPORTING (TABLES)
SEGMENT REPORTING (TABLES)	Westminster discontinued its wholesale business in July 2016 in order to focus on private label distribution. Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Revenues Trxade $ 610,832 $ 761,235 $ 1,810,043 $ 1,977,971 Westminster $ 192,461 $ 832,699 $ 2,495,576 $ 1,341,269 Segment Profit/Loss Trxade $ (391,344) $ 226,684 $ (742,836) $ 311,529 Westminster $ (451,336) $ (319,113) $ (1,569,265) $ (882,385) Assets Trxade $ 342,969 $ 470,225 Westminster $ 897,295 $ 769,384

COMPUTATION OF BASIC AND DILU21

COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Numerator:
Net Loss	$ (842,880)	$ (2,317,075)
Numerator for basic EPS - income (loss) Available to common shareholders	(842,880)	(2,317,075)
Numerator for diluted EPS - income (loss) Income available to common shareholders	(842,880)	(2,317,075)
Denominator:
Denominator for basic EPS - Weighted average shares	31,611,914	31,505,535
Denominator for diluted EPS - Weighted-average shares and assumed Conversions	31,611,914	31,505,535
Basic loss per common share	$ (0.03)	$ (0.07)
Diluted loss per common share	$ (0.03)	$ (0.07)

Property and Equipment (Details

Property and Equipment (Details)	3 Months Ended
	Sep. 30, 2016USD ($)
Property and Equipment Details
Cost of acquisition	$ 78,000
Depreciation	$ 6,500

CONVERTIBLE PROMISSORY NOTE (DE

CONVERTIBLE PROMISSORY NOTE (DETAILS) - USD ($)	Sep. 30, 2016	Aug. 31, 2016	May 31, 2016	Apr. 30, 2016	Sep. 30, 2015	May 31, 2015	Apr. 30, 2015
CONVERTIBLE PROMISSORY NOTE
Convertible promissory notes issued in amount	$ 0	$ 40,000	$ 0	$ 0	$ 0	$ 200,000	$ 200,000
Simple interest payable at the maturity date of the note	0.00%	10.00%	0.00%	0.00%	0.00%	10.00%	10.00%
Conversion price	$ 1.50	$ 1.50	$ 0	$ 0	$ 0	$ 1.50	$ 1.50
Granted warrants at one common stock of note	4	0	0	0	0	0	0
Warrants issued	50,000	0	0	0	0	0	0
Exercise price of warrants	$ 1.50	$ 0	$ 0	$ 0	$ 0	$ 1.50	$ 1.50
Convertible promissory notes was repaid	$ 0	$ 0	$ 0	$ 50,000	$ 0	$ 0	$ 0
Interest repaid	0	0	0	5,000	0	0	0
A one-year extension was executed on the remaining notes and the interest owed	0	0	15,000	0	0	0	0
Principal of notes and the balance	$ 0	$ 0	$ 165,000	$ 0	$ 0	$ 0	$ 0
Granted warrants at one common stock of note	4	0	0	0	0	0	0
warrants to purchase shares of common stock were issued at a strike price of $1.50	41,250	0	0	0	0	0	0
Debt extinguishment and a loss on extinguishment of debt was booked in the amount	$ 37,579	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Convertible promissory notes issued in amount	$ 150,000	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Simple interest payable at the maturity date of the note	10.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Notes converted for common stock at a conversion price	$ 0.62	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Granted warrants at one share of common stock for the note principal amount	$ 4	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
warrants to purchase shares of common stock were issued at a strike price of $.62	37,500	0	0	0	0	0	0
Beneficial Conversion Feature inherent to convertible note payable and total debt discount	$ 53,546	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Fair value of the warrants issued and a total debt discount	53,546	0	0	0	71,699	0	0
Debt discount was amortized	37,822	0	0	0	0	0	0
Convertible note has a balance of net	355,000	0	0	0	0	0	0
Unamortized debt discount	69,574	0	0	0	0	0	0
Promissory Note
Promissory note was issued in the face amount	$ 0	$ 0	$ 250,000	$ 0	$ 0	$ 250,000	$ 0
Term of note in years	0	0	1	0	0	1	0
Original issuance discount	$ 0	$ 0	$ 45,000	$ 0	$ 0	$ 45,000	$ 0
Cash proceeds from the promissory note	0	0	0	0	0	205,000	0
Promissory note has a principal balance	389,602	0	0	0	0	0	0
Amortized debt discount of Promissory note	37,500	0	0	0	0	0	0
Unamortized debt discount	57,502	0	0	0	0	0	0
Outstanding debt discount amortized	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

LONG TERM DEBT (DETAILS)

LONG TERM DEBT (DETAILS)	Sep. 30, 2016USD ($)$ / sharesshares	Aug. 31, 2016USD ($)	Jun. 30, 2016USD ($)$ / sharesshares	May 31, 2016USD ($)	Apr. 30, 2016USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Nov. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	May 31, 2015USD ($)	Apr. 30, 2015USD ($)
LONG TERM DEBT DETAILS
Secured convertible promissory notes issued in amount	$ 0		$ 250,000			$ 500,000	$ 450,000
Conversion price | $ / shares	$ 0		$ 2.50			$ 2.50	$ 2.50
Granted warrant to purchase shares of common stock | shares	0		83,333			166,667	150,000
Warrants issued at a strike price	0		0.01			0.01	0.01
Total debt discount	$ 0		$ 0			$ 251,883	$ 0
Fair value of the warrants issued and a total debt discount	55,783	$ 0	0	$ 0	$ 0	133,984	117,889	$ 71,699	$ 0	$ 0
Debt discount was amortized	61,066	$ 0	0	$ 0	$ 0	0	0	$ 0	$ 0	$ 0
Convertible note Principal a balance	1,200,000		0			0	0
Unamortized debt discount	236,329		0			0	0
Classified as short term	139,602		0			0	0
Classified as short term with a discount	35,002		0			0	0
Long Term Promissory Note:
Promissory notes issued in amount	189,000		0			0	0
Debt discount	39,000		0			0	0
Initial net proceeds	150,000		0			0	0
Classified as long term	45,640		0			0	0
Classified as long term with a discount	2,575		0			0	0
Paid off by cash, debt discount amortized	$ 1,423		$ 0			$ 0	$ 0

OUTSTANDING AND EXERCISABLE WAR

OUTSTANDING AND EXERCISABLE WARRANTS (DETAILS)	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Number Outstanding
Warrants Outstanding as of December 31, 2015 | shares	845,000
Warrants Granted | shares	212,083
Warrants Exercised | shares	25,000
Warrants Outstanding as of September 30, 2016 | shares	1,032,083
Weighted Average Exercise Price
Warrants Outstanding as of December 31, 2015 | $ / shares	$ 0.61
Warrants Granted | $ / shares	0.41
Warrants Exercised | $ / shares	0.01
Warrants Outstanding as of September 30, 2016 | $ / shares	$ 0.58
Contractual Life in Years
Warrants Outstanding	3.77
Warrants Granted	5
Warrants Outstanding	3.33
Intrinsic Value
Warrants Outstanding as of December 31, 2015 | $	$ 435,900
Warrants Forfeited | $	0
Warrants Outstanding as of September 30, 2016 | $	$ 257,583

OPTIONS (DETAILS)

OPTIONS (DETAILS)	9 Months Ended
	Sep. 30, 2016shares
OPTIONS DETAILS
Stock Options plan provides for the grant	2,000,000
Options issued	176,500
Options forfeited and expired	170,750
Option expense reversed	75,514
Compensation
Total compensation cost related to stock options	158,927
Unrecognized compensation costs	282,874
Weighted average period in years	5

STOCK OPTION ACTIVITY (DETAILS)

STOCK OPTION ACTIVITY (DETAILS)	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Number of Options
Outstanding Options at December 31, 2015 | shares	1,200,000
Exercisable Options at December 31, 2015 | shares	332,000
Forfeited | shares	148,250
Granted | shares	176,500
Expired | shares	22,500
Outstanding Options at September 30, 2016 | shares	1,205,750
Exercisable Options atSeptember 30, 2016 | shares	555,750
Average Exercise Price (Options)
Outstanding Options at December 31, 2015 | $ / shares	$ 1.07
Exercisable Options at December 31, 2015 | $ / shares	1.04
Forfeited | $ / shares	1.03
Granted | $ / shares	1.02
Expired | $ / shares	1.53
Outstanding Options at September 30, 2016 | $ / shares	1.06
Exercisable Options atSeptember 30, 2016 | $ / shares	$ 1.04
Contractual Life in Years (Options)
Outstanding Options at December 31, 2015	5.19
Exercisable Options at December 31, 2015	3.34
Forfeited	8.84
Granted	9.53
Expired	7.57
Outstanding Options at September 30, 2016	4.61
Exercisable Options atSeptember 30, 2016	2.97
Intrinsic Value (Options)
Outstanding Options at December 31, 2015 | $	$ 0
Exercisable Options at December 31, 2015 | $	$ 28,000

EQUITY (DETAILS)

EQUITY (DETAILS)	Sep. 30, 2016USD ($)$ / sharesshares
EQUITY {1}
Shares of common stock issued | shares	200,000
Shares of common stock was issued for cash | $	$ 300,000
Common stock was sold per share | $ / shares	$ 1.50
Warrants to purchase shares of common stock | shares	50,000
Common stock were issued at a strike price | $ / shares	$ 0.01

SEGMENT REPORTING (DETAILS)

SEGMENT REPORTING (DETAILS) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues {1}
Trxade Revenues	$ 610,832	$ 761,235	$ 1,810,043	$ 1,977,971
Westminster Revenues	192,461	832,699	2,495,576	1,341,269
Segment Profit/Loss
Trxade Segment Profit/Loss	(391,344)	226,684	(742,836)	311,529
Westminster Segment Profit/Loss	(451,336)	(319,113)	(1,569,265)	(882,385)
Corporate Overhead was allocated based on revenue	$ (266,815)	$ (268,562)	$ (1,197,266)	$ (763,194)

SEGMENT REPORTING ASSETS (DETAI

SEGMENT REPORTING ASSETS (DETAILS) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Assets
Trxade Assets	$ 342,969	$ 470,225
Westminster Assets	$ 897,295	$ 769,384

CONTINGENCY (DETAILS)

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

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	Oct. 31, 2016USD ($)$ / sharesshares
SUBSEQUENT EVENTS DETAILS
Aggregate amount of secured convertible promissory notes | $	$ 200,000
Notes may be converted for common stock at a conversion price | $ / shares	$ 2.50
Warrants granted to holders to purchase shares | shares	66,667
Strike price | $ / shares	$ 0.01
Entered into loan with third parties | $	$ 47,000