Scienture (SCNX) 8-K/A 28 Dec 18 Financial Statements and Exhibits Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2018
Document And Entity Information
Entity Registrant Name	TRXADE GROUP, INC.
Entity Central Index Key	1,382,574
Document Type	8-K/A
Document Period End Date	Oct. 16, 2018
Amendment Flag	true
Amendment Description	On October 16, 2018, Trxade Group, Inc., a Delaware corporation (the "Company" or "we") filed a Form 8-K with the Securities and Exchange Commission (the "Original Filing") to report the completion of our acquisition of Community Specialty Pharmacy, LLC, a Florida limited liability company, ("CSP"). In the Original Filing, we stated that the required consolidated historical financial statements of the Company, including CSP, would be filed by amendment to the Original Filing within seventy-one (71) calendar days from the date that the Original Filing was required to be filed. This Form 8-K/A is being filed to amend the Original Filing to provide the required historical consolidated financial statements of the Company and CSP pursuant to the instructions under Item 9.01. No other changes have been made to the Original Filing.
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Trading Symbol	TRXD

Balance Sheets

Balance Sheets - Community Specialty Pharmacy, LLC [Member] - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash	$ 127,432	$ 86,796	$ 94,646
Accounts Receivable, net	57,779	57,381	62,477
Inventory	99,710	89,710	130,840
Other Current Assets	20,816	20,816	24,463
Total Current Assets	305,737	254,703	312,426
Total Assets	305,737	254,703	312,426
Current Liabilities
Accounts Payable	153,428	221,069	199,042
Accrued Liabilities	153	215	170
Lines of Credit	85,886	82,522	99,512
Advances from - Related Party			21,838
Total Current Liabilities	239,467	303,806	320,562
Total Liabilities	239,467	303,806	320,562
Member's Equity (Deficit)
Member's Equity	59,276	41,276	19,111
Retained Earnings (Deficit)	6,994	(90,379)	(27,247)
Total Member's Equity (Deficit)	66,270	(49,103)	(8,136)
Total Liabilities and Member's Equity (Deficit)	$ 305,737	$ 254,703	$ 312,426

Statements of Operations

Statements of Operations - Community Specialty Pharmacy, LLC [Member] - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Revenues, net	$ 1,985,620	$ 2,036,796	$ 2,633,914	$ 3,111,285
Cost of Sales	1,614,523	1,643,249	2,265,902	2,929,062
Gross Profit	371,097	393,547	368,012	182,223
Operating Expenses
General and Administrative	268,741	331,000	423,267	391,210
Operating Income (Loss)	102,356	62,547	(55,255)	(208,987)
Other Income, net	239	709	912	2
Interest Expense	(5,222)	(4,795)	(8,789)	(7,649)
Net Income (Loss)	$ 97,373	$ 58,461	$ (63,132)	$ (216,634)

Statements of Changes in Member

Statements of Changes in Member's Equity (Deficit) - Community Specialty Pharmacy, LLC [Member] - USD ($)	Member's Equity [Member]	Retained Earnings [Member]	Stockholders' Equity, Total [Member]
Balance at Dec. 31, 2015	$ 5,000	$ 189,387	$ 194,387
Capital contribution	14,111		14,111
Net Loss		(216,634)	(216,634)
Balance at Dec. 31, 2016	19,111	(27,247)	(8,136)
Capital contribution	22,165		22,165
Net Loss		(63,132)	(63,132)
Balance at Dec. 31, 2017	41,276	(90,379)	(49,103)
Capital contribution	18,000		18,000
Net Loss		97,373	97,373
Balance at Sep. 30, 2018	$ 59,276	$ 6,994	$ 66,270

Statements of Cash Flows

Statements of Cash Flows - Community Specialty Pharmacy, LLC [Member] - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Operating Activities:
Net Income (Loss)	$ 97,373	$ 58,461	$ (63,132)	$ (216,634)
Changes in operating assets and liabilities:
Accounts Receivable	(398)		5,096	65,546
Prepaids and Other Current Assets			3,647	(8,406)
Inventory	(10,000)	30,000	41,130	58,358
Accounts Payable	(49,641)	(102,217)	22,027	54,215
Accrued Liabilities	(62)	33	45	8
Accrued Interest - Related Party		163	327	286
Deferred Income				(17,525)
Net Cash provided by (used in) operating activities	37,272	(13,560)	9,140	(64,152)
Financing Activities:
Repayments of Lines of Credit	(36,636)	(18,137)	(94,301)	(94,930)
Proceeds from Lines of Credit	40,000	65,000	77,311	52,007
Net Cash provided by (used in) financing activities	3,364	46,863	(16,990)	(42,923)
Net increase or (decrease) in Cash	40,636	33,303	(7,850)	(107,075)
Cash at Beginning of the Period	86,796	94,646	94,646	201,721
Cash at End of the Period	127,432	127,949	86,796	94,646
Supplemental Cash Flow Information
Cash Paid for Interest	5,222	4,795	8,789	7,649
Cash Paid for Income Taxes
Non-Cash Financing Transactions
Reclass of related party advances to capital contribution			22,165	14,111
Capital contribution related to rent waived	$ 18,000

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2018
Community Specialty Pharmacy, LLC [Member]
Description of Business	Note 1 – Description of Business Community Specialty Pharmacy, LLC, a Florida limited liability company, (“CSP”, “we”, “our”, the “Company”) is an accredited pharmacy located in St. Petersburg, Florida. CSP is an independent retail specialty pharmacy with a focus on specialty medications, has been proudly serving the local, and state community since 2010, with innovative pharmacy model which offer home delivery services to any patient thereby providing convenience.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Community Specialty Pharmacy, LLC [Member]
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies Basis of Presentation - The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). For the nine-month periods ended September 30, 2018 and 2017 unaudited financial statements were prepared by the Company, pursuant to the rules and regulations of the Securities Exchange Commission. The information furnished herein reflects all adjustment (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating result for the respective periods. Use of Estimates - The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to CSP and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Cash and Cash Equivalents - Cash and cash equivalents consist of cash and short-term investments with original maturities of less than 90 days. As of December 31, 2017 and 2016, and as of September 30, 2018, the Company had no cash equivalents. Accounts Receivable - Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis. The Company had no allowance for uncollectible accounts as of December 31, 2017 and 2016, and as of September 30, 2018. Inventory - Inventories are stated at the lower of cost or net realizable value. Cost is determined on a weighted average basis. On a quarterly basis, we analyze our inventory levels and no reserve is maintained as obsolete or expired inventories are written off. There is no reserve for inventory obsolescence during the periods presented. Revenue Recognition - In general the Company accounts for revenue recognition in accordance with ASC 605, “Revenue Recognition” in years 2017 and 2016 and in 2018 in accordance with ASC 606, “Revenue from Contracts with Customers.” The Company recognizes revenue at the time the customer takes possession of the merchandise. Customer returns are not material. The Company’s revenue is based on expected reimbursements from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. Revenue is recognized when (1) the price is fixed and determined as the customer has the prescription which outlines the amount and frequency of the drugs. (2) The prescription is persuasive evidence and requires the pharmacy to fill the prescription and deliver to the customer. (3) The prescription is delivered to the customer - the transaction price is based on expected reimbursements from third parties. (4) The recognition of revenue is when or as the entity satisfies a performance obligation – the revenue is recognized at the time of delivery. The Company in 2018 adopted ASC 606, “Revenue from Contracts with Customers.” There was no impact to the financial statements. The Company recognizes revenue from customer deposits in the period earned and the deposits are recorded as deferred revenue on the balance sheet. Income taxes - The Company accounts for income taxes utilizing ASC 740, “Income Taxes”. ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. The Company files as a Sub Chapter S corporation, a pass through entity, and as such does not recognize any provision for income taxes and has no liability for unrecognized tax benefits as of December 31, 2016 and December 31, 2017.

Short Term Debt

Short Term Debt	9 Months Ended
	Sep. 30, 2018
Community Specialty Pharmacy, LLC [Member]
Short Term Debt	Note 3 – Short Term Debt In 2016, the Regions Bank Loan, which had monthly payments of $859 and carried an interest rate of 5.50% was paid. The Loan carried an original balance of $45,000 in 2012. Principal and interest payments for the year were $11,616 and $342, respectively. The balance at December 31, 2016 was $0. The Chase Bank Line of Credit was established on December 20, 2013 and is renewable annually. The credit limit is $70,000 and carried a variable monthly rate of interest ranging from 6.25 and 7.25%. In 2016, borrowings and payments from the line of credit were $49,320 and $69,821, respectively. The outstanding balance at December 31, 2016 was $17,895. In 2017, borrowings and payments from the line of credit were $49,066 and $22,743, respectively. The outstanding balance at December 31, 2017 was $44,218. In 2018, borrowings from the line of credit were $0 and $20,653 respectively. The outstanding balance at September 30, 2018 was $23,565. Interest paid for the years ended December 31, 2016 and 2017 and for the nine months ended September 30, 2018 was $2,389, $3,308 and $2,815 respectively. The PNC Bank Line of Credit was established on March 3, 2015 and is renewable annually. The credit limit is $100,000 and carried a variable monthly rate of interest ranging from 5.35 and 7.1%. In 2016, borrowings and payments from the line were $2,687 and $13,493, respectively. The balance at December 31, 2016 was $81,617. In 2017, borrowings and payments were $28,245 and $71,558, respectively. The balance at December 31, 2017 was $38,304. In 2018, borrowings and payments were $40,000 and $15,983. The balance at September 30, 2018 was $62,321. Interest paid for the years ended December 31, 2016 and 2017 and for the nine months ended September 30, 2018 was $4,918, $5,481 and $2,407, respectively.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Community Specialty Pharmacy, LLC [Member]
Related Party Transactions	Note 4 – Related Party Transactions At December 31, 2015, Mr. Nik Panchal was owed $35,663 in advances, which carried a 1% interest rate and was payable on demand. In 2016, $14,111 was contributed capital and $286 of accrued interest is included in the principal balance at period end. The balance at December 31, 2016 was $21,838. In 2017, $327 of accrued interest was included in additional borrowings. In December 2017, Mr. Panchal converted the advance to a capital contribution. At December 31, 2017 the balance was $0. In 2016 the Company entered into a verbal lease with ProPharma, LLC, partially owned by Mr. Nik Panchal (100% owner of CSP). The verbal terms were for lease of the space for $2,000 per month, no deposit, pending a formal lease execution. A lease was executed on June 1, 2017 for a term of 5 years to June 1, 2022 with a total monthly payment of $2,000 monthly and no security deposit. Rent expense for the periods 2016, 2017 and 2018 were $15,300, $0 and $18,000, respectively. In 2017, $18,048 of repairs and maintenance was paid in lieu of rent. In 2018 the rent expense was waived and recognized as a capital contribution.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Community Specialty Pharmacy, LLC [Member]
Subsequent Events	Note 5 – Subsequent Events The Company evaluated all events and transactions that occurred after December 31, 2017 through the date these financial statements were issued and has determined that other than as disclosed below, there have been no subsequent events for which recognition or disclosure is required. On October 15, 2018, the Company entered into and consummated the sale of its 100% of the member’s interest, pursuant to the terms and conditions of the Membership Interest Purchase Agreement (“Purchase Agreement”), entered into by and among Trxade Group, Inc.(“Trxade”) as the buyer, and the Company, and Nikul Panchal, the sole equity owner (collectively, the “Seller”). The purchase price for the 100% equity interest in the Company was $300,000 in cash, a promissory note issued by Trxade of $300,000, accruing interest at a simple interest rate of ten percent (10%), with interest payable annually, and principal payable at maturity in thirty-six (36) months (the “Promissory Note”), and a warrant to purchase 405,507 shares of Trxade’s common stock (“Revocable Warrant”), exercisable for eight (8) years from the issuance date at a strike price of $0.01 per share, and subject to revocability restrictions which lapse over three (3) years. The fair value of the warrants as calculated under Black-Scholes was $170,313.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies) - Community Specialty Pharmacy, LLC [Member]	9 Months Ended
	Sep. 30, 2018
Basis of Presentation	Basis of Presentation - The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). For the nine-month periods ended September 30, 2018 and 2017 unaudited financial statements were prepared by the Company, pursuant to the rules and regulations of the Securities Exchange Commission. The information furnished herein reflects all adjustment (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating result for the respective periods.
Use of Estimates	Use of Estimates - The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to CSP and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents - Cash and cash equivalents consist of cash and short-term investments with original maturities of less than 90 days. As of December 31, 2017 and 2016, and as of September 30, 2018, the Company had no cash equivalents.
Accounts Receivable	Accounts Receivable - Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis. The Company had no allowance for uncollectible accounts as of December 31, 2017 and 2016, and as of September 30, 2018.
Inventory	Inventory - Inventories are stated at the lower of cost or net realizable value. Cost is determined on a weighted average basis. On a quarterly basis, we analyze our inventory levels and no reserve is maintained as obsolete or expired inventories are written off. There is no reserve for inventory obsolescence during the periods presented.
Revenue Recognition	Revenue Recognition - In general the Company accounts for revenue recognition in accordance with ASC 605, “Revenue Recognition” in years 2017 and 2016 and in 2018 in accordance with ASC 606, “Revenue from Contracts with Customers.” The Company recognizes revenue at the time the customer takes possession of the merchandise. Customer returns are not material. The Company’s revenue is based on expected reimbursements from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. Revenue is recognized when (1) the price is fixed and determined as the customer has the prescription which outlines the amount and frequency of the drugs. (2) The prescription is persuasive evidence and requires the pharmacy to fill the prescription and deliver to the customer. (3) The prescription is delivered to the customer - the transaction price is based on expected reimbursements from third parties. (4) The recognition of revenue is when or as the entity satisfies a performance obligation – the revenue is recognized at the time of delivery. The Company in 2018 adopted ASC 606, “Revenue from Contracts with Customers.” There was no impact to the financial statements. The Company recognizes revenue from customer deposits in the period earned and the deposits are recorded as deferred revenue on the balance sheet.
Income Taxes	Income taxes - The Company accounts for income taxes utilizing ASC 740, “Income Taxes”. ASC 740 requires the measurement of deferred tax assets for deductible temporary differences and operating loss carry forwards, and of deferred tax liabilities for taxable temporary differences. The Company files as a Sub Chapter S corporation, a pass through entity, and as such does not recognize any provision for income taxes and has no liability for unrecognized tax benefits as of December 31, 2016 and December 31, 2017.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - Community Specialty Pharmacy, LLC [Member] - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash equivalents
Allowance for uncollectible accounts
Unrecognized tax benefits

Short Term Debt (Details Narrat

Short Term Debt (Details Narrative) - Community Specialty Pharmacy, LLC [Member] - USD ($)	Mar. 03, 2015	Dec. 20, 2013	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2012
Proceeds from lines of credit			$ 40,000	$ 65,000	$ 77,311	$ 52,007
Repayments of lines of credit			36,636	$ 18,137	94,301	94,930
Line of credit			85,886		82,522	99,512
Chase Bank Line of Credit [Member]
Line of credit facility maximum borrowing		$ 70,000
Proceeds from lines of credit			0		49,066	49,320
Repayments of lines of credit			20,653		22,743	69,821
Line of credit			23,565		44,218	17,895
Interest paid			2,815		3,308	2,389
Chase Bank Line of Credit [Member] | Minimum [Member]
Variable interest rate		6.25%
Chase Bank Line of Credit [Member] | Maximum [Member]
Variable interest rate		7.25%
PNC Bank Line of Credit [Member]
Line of credit facility maximum borrowing	$ 100,000
Proceeds from lines of credit			40,000		28,245	2,687
Repayments of lines of credit			15,983		71,558	13,493
Line of credit			62,321		38,304	81,617
Interest paid			$ 2,407		$ 5,481	4,918
PNC Bank Line of Credit [Member] | Minimum [Member]
Variable interest rate	5.35%
PNC Bank Line of Credit [Member] | Maximum [Member]
Variable interest rate	7.10%
Regions Bank Loan [Member]
Debt instrument monthly payment						$ 859
Interest rate						5.50%
Debt instrument face value							$ 45,000
Debt instrument principal payment						$ 11,616
Debt instrument interest payment						342
Short term debt						$ 0

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - Community Specialty Pharmacy, LLC [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Advances from - related party			$ 21,838
Contributed capital			14,111
Accrued interest		327	$ 286
Ownership percentage			100.00%
Lease monthly payment			$ 2,000
Lease term			5 years
Rent expenses	$ 18,000	0	$ 15,300
Repairs and maintenance		$ 18,048
June 1, 2022 [Member]
Lease monthly payment			2,000
Security deposit
Mr. Nik Panchal [Member]
Advances from - related party				$ 35,663
Interest rate				1.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Community Specialty Pharmacy, LLC [Member] - USD ($)	Oct. 15, 2018	Dec. 31, 2016
Ownership percentage		100.00%
Subsequent Event [Member]
Ownership percentage	100.00%
Payment to acquired cash	$ 300,000
Subsequent Event [Member] | Revocable Warrant [Member]
Warrant purchase for common stock	405,507
Warrant exercisable term	8 years
Strike price	$ 0.01
Fair value of warrant	$ 170,313
Subsequent Event [Member] | Promissory Note [Member]
Debt instrument face amount	$ 300,000
Interest rate	10.00%
Debt instrument term	36 months