Organization and Basis of Presentation | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Trxade Group, Inc. (“we”, “our”, “Trxade”, and the “Company”) owns 100% of Trxade, Inc., Integra Pharma Solutions, LLC, Community Specialty Pharmacy, LLC and Alliance Pharma Solutions, LLC. The merger of Trxade, Inc. and Trxade Group, Inc. occurred in May 2013. Community Specialty Pharmacy was acquired in October 2018. Trxade, Inc., operates a web-based market platform that enables commerce among healthcare buyers and sellers of pharmaceuticals, accessories and services. Integra Pharma Solutions, LLC, is a licensed pharmaceutical wholesaler and sells brand, generic and non-drug products. Community Specialty Pharmacy, LLC, is an accredited independent retail pharmacy with a focus on specialty medications. The company operates with an innovative pharmacy model which offers home delivery services to patients thereby providing convenience. Alliance Pharma Solutions, LLC, has developed a same day Pharma delivery software – Delivmeds.com, and invested in SyncHealth MSO, LLC, a managed services organization during January 2019. Basis of Presentation 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, 2018 as reported in the Company’s Annual Report on Form 10-K have been omitted. Equity Investments The share of income (loss) of such entities is recorded as a single amount as share in equity income (loss) of investments. Dividends, if any, are recorded as a reduction of the investment. The equity investment was fully impaired at September 30, 2019. Income Per Common Share The following table sets forth the computation of basic and diluted Income per Share: For three months ended September 30, For nine months ended September 30, 2019 2018 2019 2018 Numerator: Net Income $ 27,565 $ 94,249 $ 210,775 $ 197,031 Numerator for basic and diluted EPS - income available to common Shareholders 27,565 $ 94,249 210,775 $ 197,031 Denominator: Denominator for basic EPS – Weighted average shares 34,489,969 32,083,629 34,370,522 32,083,629 Dilutive Effect of Warrants, Options and Convertible Debt 1,796,518 2,654,335 1,796,518 2,648,911 Denominator for diluted EPS – adjusted Weighted average shares and assumed Conversions 36,286,487 34,737,964 36,167,040 34,732,540 Basic and Diluted income per common share $ 0.00 $ 0.00 $ 0.01 $ 0.01 Recent Accounting Pronouncements Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842 Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation – Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-7”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity – Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements. |