Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-39199 | |
Entity Registrant Name | TRxADE HEALTH, INC. | |
Entity Central Index Key | 0001382574 | |
Entity Tax Identification Number | 46-3673928 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 3840 Land O’ Lakes Blvd. | |
Entity Address, City or Town | Land O’ Lakes | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34639 | |
City Area Code | (800) | |
Local Phone Number | 261-0281 | |
Title of 12(b) Security | Common Stock, $0.00001 Par Value Per Share | |
Trading Symbol | MEDS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,166,457 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 3,571,889 | $ 5,919,578 |
Accounts Receivable, net | 1,008,816 | 805,043 |
Inventory | 94,822 | 1,257,754 |
Prepaid Assets | 435,747 | 151,248 |
Deferred Offering Costs | 78,000 | |
Other Receivables | 1,087,675 | |
Total Current Assets | 5,189,274 | 9,221,298 |
Property Plant and Equipment, Net | 13,256 | 162,397 |
Other Assets | ||
Deposits | 21,636 | 21,636 |
Right of use leased assets | 289,935 | 387,371 |
Total Assets | 5,514,101 | 9,792,702 |
Current Liabilities | ||
Accounts Payable | 275,220 | 256,829 |
Accrued Liabilities | 316,081 | 219,256 |
Current Portion Lease Liabilities | 63,560 | 131,153 |
Customer Deposits | 10,000 | |
Notes Payables– Related Party | 225,000 | |
Total Current Liabilities | 654,861 | 842,238 |
Long Term Liabilities | ||
Other Long-Term Liabilities — Leases | 241,945 | 271,306 |
Total Liabilities | 896,806 | 1,113,544 |
Stockholders’ Equity | ||
Series A Preferred Stock, $0.00001 par value shares authorized; none issued and outstanding as of September 30, 2021, and December 31, 2020 | ||
Common Stock, $0.00001 par value; 100,000,000 shares authorized; 8,166,457 and 8,093,199 shares issued and outstanding as of September 30, 2021, and December 31, 2020, respectively | 82 | 81 |
Additional Paid-in Capital | 20,080,310 | 19,610,631 |
Accumulated Deficit | (15,463,097) | (10,931,554) |
Total Stockholders’ Equity | 4,617,295 | 8,679,158 |
Total Liabilities and Stockholders’ Equity | $ 5,514,101 | $ 9,792,702 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 8,166,457 | 8,093,199 |
Common Stock, Shares, Outstanding | 8,166,457 | 8,093,199 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,550,046 | $ 6,332,269 | $ 7,501,535 | $ 15,128,226 |
Cost of Sales | 1,269,005 | 4,402,967 | 3,995,792 | 9,554,016 |
Gross Profit | 1,281,041 | 1,929,302 | 3,505,743 | 5,574,210 |
Operating Expenses | ||||
Loss on Inventory Investment | 1,285 | 1,226,426 | ||
General and Administrative | 2,575,882 | 1,783,481 | 6,789,286 | 5,775,439 |
Operating Income (Loss) | (1,296,126) | 145,821 | (4,509,969) | (201,229) |
Interest Expense | (5,622) | (7,430) | (21,574) | (22,664) |
Net Income (Loss) | $ (1,301,748) | $ 138,391 | $ (4,531,543) | $ (223,893) |
Net (Loss) Income per Common Share – Basic and Diluted: | $ (0.16) | $ 0.02 | $ (0.56) | $ (0.03) |
Weighted average Common Shares Outstanding – Basic and Diluted | 8,163,522 | 8,063,043 | 8,126,689 | 7,572,954 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 65 | $ 12,535,655 | $ (8,395,503) | $ 4,140,217 | |
Beginning balance, shares at Dec. 31, 2019 | 6,539,415 | ||||
Warrants Exercised for Cash | 1,352 | 1,352 | |||
Warrants Exercised for Cash, Shares | 22,529 | ||||
Common Stock issued from offering | $ 10 | 5,994,414 | 5,994,424 | ||
Common Stock issued from offering, Shares | 922,219 | ||||
Fractional shares issued due to reverse split | |||||
Fractional shares issued due to reverse split, Shares | 40 | ||||
Stock Issuance Costs | (820,586) | (820,586) | |||
Options Exercised for Cash | 501 | 501 | |||
Options Exercised for Cash, Shares | 167 | ||||
Warrants Expense | 79,089 | 79,089 | |||
Options Expense | 61,997 | 61,997 | |||
Net Income (Loss) | 180,303 | 180,303 | |||
Ending balance, value at Mar. 31, 2020 | $ 75 | 17,852,422 | (8,215,200) | 9,637,297 | |
Ending balance, shares at Mar. 31, 2020 | 7,484,370 | ||||
Beginning balance, value at Dec. 31, 2019 | $ 65 | 12,535,655 | (8,395,503) | 4,140,217 | |
Beginning balance, shares at Dec. 31, 2019 | 6,539,415 | ||||
Net Income (Loss) | (223,893) | ||||
Ending balance, value at Sep. 30, 2020 | $ 81 | 19,446,404 | (8,619,396) | 10,827,089 | |
Ending balance, shares at Sep. 30, 2020 | 8,070,671 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 75 | 17,852,422 | (8,215,200) | 9,637,297 | |
Beginning balance, shares at Mar. 31, 2020 | 7,484,370 | ||||
Common Stock Issued for Services | $ 2 | 829,865 | 829,867 | ||
Common Stock Issued for Services, Shares | 217,965 | ||||
Warrants Exercised for Cash | $ 4 | 21,596 | 21,600 | ||
Warrants Exercised for Cash, Shares | 360,002 | ||||
Warrants Expense | 21,294 | 21,294 | |||
Options Expense | 183,906 | 183,906 | |||
Net Income (Loss) | (542,587) | (542,587) | |||
Ending balance, value at Jun. 30, 2020 | $ 81 | 18,909,083 | (8,757,787) | 10,151,377 | |
Ending balance, shares at Jun. 30, 2020 | 8,062,337 | ||||
Common Stock Issued for Services | 348,246 | 348,246 | |||
Warrants Exercised for Cash | 13,303 | 13,303 | |||
Warrants Exercised for Cash, Shares | 8,334 | ||||
Warrants Expense | 48,775 | 48,775 | |||
Options Expense | 126,997 | 126,997 | |||
Net Income (Loss) | 138,391 | 138,391 | |||
Ending balance, value at Sep. 30, 2020 | $ 81 | 19,446,404 | (8,619,396) | 10,827,089 | |
Ending balance, shares at Sep. 30, 2020 | 8,070,671 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 81 | 19,610,631 | (10,931,554) | 8,679,158 | |
Beginning balance, shares at Dec. 31, 2020 | 8,093,199 | ||||
Common Stock Issued for Services | 98,247 | 98,247 | |||
Options Expense | 75,738 | 75,738 | |||
Net Income (Loss) | (651,519) | (651,519) | |||
Ending balance, value at Mar. 31, 2021 | $ 81 | 19,784,616 | (11,583,073) | 8,201,624 | |
Ending balance, shares at Mar. 31, 2021 | 8,093,199 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 81 | 19,610,631 | (10,931,554) | 8,679,158 | |
Beginning balance, shares at Dec. 31, 2020 | 8,093,199 | ||||
Net Income (Loss) | (4,531,543) | ||||
Ending balance, value at Sep. 30, 2021 | $ 82 | 20,080,310 | (15,463,097) | 4,617,295 | |
Ending balance, shares at Sep. 30, 2021 | 8,166,457 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 81 | 19,784,616 | (11,583,073) | 8,201,624 | |
Beginning balance, shares at Mar. 31, 2021 | 8,093,199 | ||||
Common Stock Issued for Services | 100,416 | 100,416 | |||
Common Stock Issued for Services, Shares | 37,905 | ||||
Options Exercised for Cash | 1,821 | 1,821 | |||
Options Exercised for Cash, Shares | 30,353 | ||||
Options Expense | 61,392 | 61,392 | |||
Net Income (Loss) | (2,578,276) | (2,578,276) | |||
Ending balance, value at Jun. 30, 2021 | $ 81 | 19,948,245 | (14,161,349) | 5,786,977 | |
Ending balance, shares at Jun. 30, 2021 | 8,161,457 | ||||
Common Stock Issued for Services | 41,250 | 41,250 | |||
Warrants Exercised for Cash | $ 1 | 15,000 | 15,001 | ||
Warrants Exercised for Cash, Shares | 5,000 | ||||
Warrants Expense | 21,640 | 21,640 | |||
Options Expense | 54,175 | 54,175 | |||
Net Income (Loss) | (1,301,748) | (1,301,748) | |||
Ending balance, value at Sep. 30, 2021 | $ 82 | $ 20,080,310 | $ (15,463,097) | $ 4,617,295 | |
Ending balance, shares at Sep. 30, 2021 | 8,166,457 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Activities: | ||
Net Income (Loss) | $ (4,531,543) | $ (223,893) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation Expense | 5,250 | 3,750 |
Options expense | 191,305 | 372,900 |
Warrant Expense | 21,640 | 149,158 |
Common Stock Issued for Services | 239,913 | 1,178,113 |
Bad Debt Expense | 616,215 | 35,539 |
Loss on Inventory Investments | 1,226,426 | 137,155 |
Amortization of right of use asset | 97,436 | 60,600 |
Changes in operating assets and liabilities: | ||
Accounts Receivable | (819,988) | (277,971) |
Prepaid Assets and other Current Assets | (284,499) | (150,219) |
Inventory | 1,162,932 | (1,727,482) |
Deferred Offering Costs | (78,000) | |
Deposits for Inventory Purchases | (1,081,250) | |
Other Receivables | 5,140 | |
Lease Liability | (96,954) | (64,522) |
Accounts Payable | 18,391 | (98,422) |
Customer Deposits | (10,000) | |
Accrued Liabilities and Other Liabilities | 96,825 | 187,293 |
Net Cash used in operating activities | (2,139,511) | (1,499,251) |
Investing Activities: | ||
Purchase of Fixed Assets | (23,505) | |
Net Cash used in Investing activities | (23,505) | |
Financing Activities: | ||
Repayment of Promissory Notes – Related Party | (225,000) | |
Stock Issuance Costs | (732,355) | |
Proceeds from exercise of Warrants | 15,001 | 36,255 |
Proceeds from exercise of Stock Options | 1,821 | 501 |
Proceeds from Issuance of Common Stock | 5,994,424 | |
Net Cash provided by (used in) financing activities | (208,178) | 5,298,825 |
Net increase (decrease) in Cash | (2,347,689) | 3,776,069 |
Cash at Beginning of the Period | 5,919,578 | 2,871,694 |
Cash at End of the Period | 3,571,889 | 6,647,763 |
Supplemental Cash Flow Information | ||
Cash Paid for Interest | 26,321 | 5,789 |
Cash Paid for Income Taxes | ||
Non-Cash Transactions | ||
Remeasurement of ROU Assets and Lease Liability for Nonrenewal of Lease | $ 384,110 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION TRxADE HEALTH, INC. (“ we our Trxade Company 100% of Trxade, Inc., Integra Pharma Solutions, LLC, Community Specialty Pharmacy, LLC, Alliance Pharma Solutions, LLC, Bonum Health, LLC and MedCheks, 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 and a community-based model offering home delivery services to patients. Alliance Pharma Solutions, LLC, has developed a same-day pharmaceutical delivery software – Delivmeds.com, and invested in SyncHealth MSO, LLC, a managed services organization during January 2019, which investment was divested in February 2020. Bonum Health, LLC, was formed to hold certain telehealth assets acquired in October 2019. The “ Bonum Health Hub 143,891 . The Bonum Health mobile application is available on a subscription basis, primarily as a stand-alone telehealth software application that can be licensed on a business-to-business (B2B) model to clients as an employment health benefit for the clients’ employees. MedCheks, LLC, was formed in January 2021 and is a patient-centered, digital, precision healthcare platform that lets patients consolidate and control their health data via a digital Health Passport. The digital Health Passport allows users to share their health profile, tests and vaccinations simply and safely. Secured in a blockchain, the Health Passport includes health and vaccination status verification via a QR code (a two-dimensional machine-readable optical label), which is available for travel, entry into stadiums, concert venues, events, offices, industrial plants, warehouses, and other physical access points. MedCheks Health Passport stores all of a user’s health records securely in one place. 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, 2020, as reported in the Company’s Annual Report on Form 10-K have been omitted. Accounts Receivable – 616,215 , and $ 35,539 , respectively. The Company had an Account Receivable with a single customer for the amount of $ 630,000 which was past due. The Company had obtained a Note Receivable which was due on September 30, 2021 and remained unpaid. The Company believes the amount may not be collectible without legal actions, and therefore, recorded bad debt expense. The note was not paid pursuant to its terms and the Company is in the process of filing suit to collect on the note and the personal guaranty securing the note. The Company believes it will prevail on the merits if litigation is required to ultimately collect. Income (loss) Per Common Share 47,096 432,164 The following table sets forth the computation of basic and diluted Income (Loss) per Share: SCHEDULE OF BASIC AND DILUTIVE INCOME (LOSS) PER SHARE 2021 2020 2021 2020 For three months ended September 30, For nine months ended September 30, 2021 2020 2021 2020 Numerator: Net Income (Loss) $ (1,301,748 ) $ 138,391 $ (4,531,543 ) $ (223,893 ) Numerator for basic and diluted EPS - income (loss) available to common Shareholders $ (1,301,748 ) $ 138,391 $ (4,531,543 ) $ (223,893 ) Denominator: Denominator for basic EPS – Weighted average shares 8,163,522 8,063,043 8,126,689 7,572,954 Basic Income (Loss) per common share $ (0.16 ) $ 0.02 $ (0.56 ) $ (0.03 ) |
SHORT TERM DEBT _ RELATED PARTI
SHORT TERM DEBT – RELATED PARTIES | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
SHORT TERM DEBT – RELATED PARTIES | NOTE 2– SHORT TERM DEBT – RELATED PARTIES In October 2018, in connection with the acquisition of Community Specialty Pharmacy, LLC, a $ 300,000 promissory note was issued to Nikul Panchal, a non-executive officer of the Company, accruing simple interest at the rate of 10% per annum, payable annually, and having a maturity date on October 15, 2021 . In October 2019, $ 75,000 of the note was converted into 25,000 common shares at $ 3.00 per share, leaving $ 225,000 of principal owed under the promissory note. There was a loss recognized on this conversion of $ 76,500 . In September 2021, the promissory note was paid in full. At September 30, 2021 total related party debt was $ 0 . |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY In August 2021, warrants to purchase 5,000 shares of common stock were granted with an exercise price of $ 3.00 per share, and were exercised for $ 15,001 in cash. The Company issued 5,000 shares of common stock. 2020 Equity Compensation Awards On April 14, 2020, the Compensation Committee approved the grant of (a) 5,000 shares of restricted common stock to the Company’s legal counsel; and (b) 12,500 shares of restricted common stock to Howard A. Doss, the Company’s Chief Financial Officer, which shares vested at the rate of ¼ th 107,100 and the Company recognized stock-based compensation expense of $ 26,775 for the nine months ended September 30, 2021. On April 14, 2020, the then three independent members of the Board of Directors (Mr. Donald G. Fell, Dr. Pamela Tenaerts, and Mr. Michael L. Peterson), were each awarded 8,987 shares of restricted stock, which vested at the rate of ¼ th 165,000 and the Company recognized stock-based compensation expense of $ 41,250 for the nine months ended September 30, 2021. 2021 Equity Compensation Awards On April 15, 2021, the Board of Directors, with the recommendation of the Compensation Committee, approved the grant of options to purchase an aggregate of 17,500 shares of our common stock to certain employees of the Company, in consideration for services to be rendered by such individuals through 2025. The options vest at the rate of ¼ th five years from the grant date. The options have an exercise price of $ 4.76 per share, the closing price of the Company’s common stock on the date of the grant of such options. In connection with and pursuant to the independent director compensation policy previously adopted by the Board of Directors, on April 15, 2021, the then three independent members of the Board of Directors (Mr. Donald G. Fell, Dr. Pamela Tenaerts, and Mr. Michael L. Peterson), were each awarded 10,721 shares of restricted stock, valued at $ 55,000 ($ 5.13 per share) based on the closing sales price of the Company’s common stock on the Nasdaq Capital Market on the effective date of the grant, April 1, 2021, which vest at the rate of ¼ th 165,000 and the Company recognized stock-based compensation expense of $ 55,000 for the nine months ended September 30, 2021. Common Shares totaling 16,082 were cancelled on May 27, 2021, when the director services of Mr. Peterson and Ms. Tenaerts were terminated. The Board of Directors of the Company, on May 27, 2021, confirmed the vesting of 2,680 shares of common stock previously issued to each of Michael L. Peterson and Dr. Pamela Tenaerts on July 1, 2021, which were subject to forfeiture subject to such persons continued service on the Board of Directors prior to the vesting date. In connection with and pursuant to the independent director compensation policy previously adopted by the Board of Directors, on May 27, 2021, the Board of Directors awarded Charles L. Pope, and Christine L. Jennings, each independent members of the Board of Directors appointed to the Board of Directors on May 27, 2021, 10,912 shares of restricted stock each, valued at $ 41,250 each ($ 3.78 per share) based on the closing sales price of the Company’s common stock on the Nasdaq Capital Market on the effective date of the grant, May 27, 2021, which vest at the rate of 1/3rd of such shares on October 1, 2021 and January 1 and April 1, 2022, subject to such persons continuing to provide services to the Company on such dates. The Company recognized stock-based compensation expense of $ 36,667 for the nine months ended September 30, 2021. Employment Agreement with Suren Ajjarapu, Chief Executive Officer In connection with our employment agreement with Mr. Suren Ajjarapu, our Chief Executive Officer, which was effective on April 14, 2020, we granted 49,020 restricted shares of common stock which vest upon the Company reaching certain performance metrics established by the Compensation Committee on the same date and further amended on May 5, 2020. The fair value of the shares at the grant date was determined to be $ 300,000 . The modification of the performance conditions resulted in an incremental value to the shares of $ 72,062 . The Compensation Committee subsequently determined that the performance conditions were met and the 49,020 bonus shares vested in full on December 31, 2020. The compensation expense of $ 391,841 was recognized for the year ended December 31, 2020. Stock Repurchase Program On May 27, 2021, the Board of Directors of the Company authorized and approved a share repurchase program for up to $ 1 million of the currently outstanding shares of the Company’s common stock. There is no time frame for the repurchase program, and such program will remain in place until a maximum of $1.0 million of the Company’s common stock has been repurchased or until such program is suspended or discontinued by the Board of Directors. As of September 30, 2021, no shares have been repurchased. On July 18, 2021 the Board of Directors approved an “at-the-market” offering for the sale of up to $ 9 million in shares of the common stock under which the Distribution Agent may sell the Offering shares in public market transactions reported on the consolidated tape or privately negotiated transactions which may include block trades pursuant to and in connection with the Company’s previously filed Form S-3 Shelf Registration Statement filed with the Securities and Exchange Commission on August 28, 2020 and declared effective by the Commission on September 3, 2020 (File Number: 333-248473) and the Prospectus Supplement was filed with the Commission under Rule 424(b)(5) dated August 6, 2021. On July 18, 2021, our Board of Directors paused the Stock Repurchase Program until the “at-the-market” offering is complete. On July 22, 2021, our Board of Directors deferred the filing of the “at-the market’ offering and reactivated the Stock Repurchase Program. On August 4, 2021, our Board of Directors paused the Stock Repurchase Program until the “at-the-market” offering is complete. On August 6, 2021, and the Prospectus Supplement relating to the “at-the-market” offering was filed with the Commission under Rule 424(b)(5). No shares of common stock have been sold pursuant to the “at-the-market” offering as of the date of this filing. |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2021 | |
Warrants | |
WARRANTS | NOTE 4 – WARRANTS For the nine-month period ended September 30, 2021, 5,000 warrants were granted, warrants to purchase 35,655 shares of common stock expired and 5,000 were exercised. The Company uses the Black-Scholes pricing model to estimate the fair value of stock-based awards on the date of the grant. The compensation cost related to the warrants granted was $ 21,640 and $ 149,158 for the nine months ended September 30, 2021, and 2020, respectively. The Company’s outstanding and exercisable warrants as of September 30, 2021, are presented below: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS Number Outstanding Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Warrants Outstanding as of December 31, 2020 82,751 $ 1.33 2.73 $ 352,951 Warrants granted 5,000 $ 3.00 1.48 - Warrants expired or forfeited (35,655 ) $ 2.43 - - Warrants exercised (5,000 ) $ 3.00 - - Warrants Outstanding as of September 30, 2021 47,096 $ 0.51 1.14 $ 208,078 Warrants Exercisable as of September 30, 2021 47,096 $ 0.51 1.14 $ 208,078 |
OPTIONS
OPTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
OPTIONS | NOTE 5 – OPTIONS The Company maintains stock option plans under which certain employees are awarded option grants based on a combination of performance and tenure. The stock option plans provide for the grant of up to 2,333,333 shares, and the Company’s Second Amended and Restated 2019 Equity Incentive Plan provides for automatic increases in the number of shares available under such plan (currently 2,000,000 shares) on April 1 st beginning in 2021 and ending in 2029 (each a “Date of Determination”), in each case subject to the approval and determination of the administrator of the plan (the Board of Directors or Compensation Committee) on or prior to the applicable Date of Determination, equal to the lesser of (A) ten percent (10%) of the total shares of common stock of the Company outstanding on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the administrator. The administrator did not approve an increase in the number of shares covered under the plan as of April 1, 2021. For the nine-month period ended September 30, 2021, options to purchase 36,700 shares were granted, none were forfeited, and none expired. The options granted during the period vest over a four-year period, the weighted average exercise price was $ 5.74 per share and the options have a term of 5 years . For the nine-month period ended September 30, 2021, options to purchase 30,353 shares of common stock were exercised, for 30,353 1,821 . The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of the grant. The following table summarizes the assumptions used to estimate the fair value of the stock options granted during the quarter ended September 30, 2021: SCHEDULE OF ESTIMATE FAIR VALUE OF STOCK OPTIONS Expected dividend yield 0 % Weighted-average expected volatility 102 - 207 % Weighted-average risk-free interest rate 0.25 % Expected life of options 5 years Total compensation cost related to stock options granted was $ 137,130 and $ 372,900 for the nine-months ended September 30, 2021, and 2020, respectively. The following table represents stock option activity for the nine-month period ended September 30, 2021: SCHEDULE OF STOCK OPTION ACTIVITY Number Outstanding Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Options Outstanding as of December 31, 2020 425,817 $ 4.44 5.33 $ 597,322 Options Exercisable as of December 31, 2020 282,167 $ 4.52 4.56 $ 384,226 Options granted 36,700 $ 5.74 4.44 - Options forfeited - $ - - - Options expired - $ - - - Options exercised (30,353 ) $ 0.06 - - Options Outstanding as of September 30, 2021 432,164 $ 4.86 4.89 $ 368,613 Options Exercisable as of September 30, 2021 295,015 $ 4.90 4.58 $ 245,551 |
OTHER RECEIVABLES
OTHER RECEIVABLES | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
OTHER RECEIVABLES | NOTE 6 – OTHER RECEIVABLES In July 2020, the Company’s wholly-owned subsidiary, Integra Pharma Solutions, LLC (“Integra”), entered into an agreement with Studebaker Defense Group, LLC (“Studebaker”) wherein Integra would pay Studebaker a down payment of $ 500,000 and Studebaker would deliver 180,000 boxes of nitrile gloves by August 14, 2020. Integra wired the $ 500,000 to Studebaker, but to date, Studebaker has not delivered the gloves or provided a refund of the deposit. In December 2020, we filed a complaint against Studebaker in Florida state court, Case No. 20-CA-010118 in the Circuit Court for the Thirteenth Judicial Circuit in Hillsborough County, for among other things, breach of contract. Studebaker did not answer the complaint, nor did counsel for Studebaker file an appearance. Accordingly, in February 2021 the Company filed for a default judgment; however, on March 22, 2021, counsel for Studebaker filed an appearance and shortly thereafter filed a motion to vacate the default judgment and dismiss the complaint on jurisdictional grounds. The court granted Studebaker’s motion to set aside the default judgment but denied the motion to dismiss. Studebaker then filed an answer and affirmative defenses, and we filed a motion to strike their affirmative defenses. The court has not yet ruled, but the discovery phase of the litigation has commenced; the next step in the litigation after the pre-trial motions are resolved will be a motion for summary judgment. The Company believes it will prevail on the merits but cannot determine the timing of the judgment or the amount ultimately collected. At June 30, 2021, the $ 500,000 was recorded as Loss on Inventory Investment. In August 2020, Integra, entered into an agreement with Sandwave Group Dsn Bhd (“Sandwave”), wherein Integra would pay Sandwave a down payment of $ 581,250 and Sandwave’s supplier, Crecom Burj Group SDN BHD (“Crecom”), would deliver 150,000 boxes of nitrile gloves within 45 days. Integra wired the $ 581,250 to Sandwave, which in turn wired the purchase price to Crecom, which Crecom accepted; however, to date, Crecom has not delivered the nitrile gloves. Integra demanded return of its $ 581,250 and Crecom has acknowledged that Integra is entitled to a refund, but to date Crecom has failed to return Integra’s money. In February 2021, Integra filed a complaint against Crecom in Malaysia: Case No. WA-22NCC-55-02/2021 in the High Court of Malaysia at Kuala Lumpur in the Federal Territory, Malaysia for the Malaysian equivalent of breach of contract. Crecom filed an appearance on March 1, 2021. In April 2021, an Application for Summary Judgment was filed with the court, and on May 25, 2021, the Court extracted the sealed application, and a copy thereof was served on Crecom’s attorneys and Crecom, 14 days later, filed an Affidavit in Reply with the court alleging that there are issues to be tried and that this case must go to a full trial. On June 28, 2021, the court directed both parties to file their written submissions/arguments in relation to the application for summary judgment on or before July 12, 2021, and scheduled a hearing thereon for August 26, 2021. th 581,250 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 7 – CONTINGENCIES In January 2020, we became aware of a complaint filed by Jitendra Jain, Manish Arora, Scariy Kumaramangalam, Harsh Datta and Balvant Arora (collectively, plaintiffs), against our wholly-owned subsidiary, Trxade, Inc. and our Chief Executive Officer, Suren Ajjarapu as well as certain unrelated persons, Annapurna Gundlapalli, Gajan Mahendiran and Nexgen Memantine (collectively, defendants), in the Circuit Court of Madison County, Alabama (Case:47-CV-2019-902216.00). The complaint alleged causes of actions against the defendants including fraud in the inducement, relating to certain investments alleged to have been made by plaintiffs in Nexgen Memantine, breach of fiduciary duty, conversion and voidable transactions. The complaint related to certain investments alleged made by the plaintiffs in Nexgen Memantine and certain alleged fraudulent transfers of assets and funds alleged to have been taken by the defendants which are unrelated to the Company. The complaint sought $ 425,000 in compensatory damages and $ 1,275,000 in punitive damages. The Company and Mr. Ajjarapu denied in their entirety the plaintiffs’ allegations and filed a motion to dismiss the plaintiffs’ claims against the Company and Mr. Ajjarapu, which motion was granted in May 2020, due to the plaintiffs not being able to establish personal jurisdiction over the defendants, which motion was successful as to all defendants. The Company and Mr. Ajjarapu further refute any connections for the purpose of the suit to the other named defendants. To the Company’s and Mr. Ajjarapu’s knowledge, the complaint had no merit whatsoever. The final date for the plaintiffs to appeal the ruling to dismiss the lawsuit passed in August 2020, and there was no appeal. As such, the ruling is final. However, in September 2020, the plaintiffs filed a similar complaint (alleging substantially similar facts) in the United States District Court for the Middle District of Florida, Tampa Division (Case 8:20-cv-02263), against the same defendants but adding Westminster Pharmaceuticals, LLC, our former wholly-owned subsidiary (“Westminster”), and raising claims for alleged fraud under Section 10(b) and Rule 10b-5 of the Exchange Act; joint and several liability under 15 U.S.C. Code 78t (against Trxade, Inc.); fraudulent transactions of securities under the Florida Securities Act (against all of the defendants except Trxade); and sale of unregistered securities under the Florida Securities Act (against all of the defendants except Trxade). The total amount of damages sought is unclear but is thought to be in excess of $ 425,000 . To the Company’s and Mr. Ajjarapu’s knowledge, the complaint has no merit whatsoever and each of the Company and Mr. Ajjarapu intend to defend themselves and oppose the relief sought in the complaint. The Company is not currently accused of any direct misconduct; instead, the Company is alleged to be liable for the acts of certain or all of the other defendants. The Company would likely only incur liability if some or all of the other defendants were found liable to plaintiffs and the Company is found to be jointly and severally liable for the actions of such other defendant or defendants. The lawsuit claims approximately $ 450,000 in damages; however, based on facts currently known, the Company assesses the likelihood of any material loss as remote. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 8 – LEASES The Company elected the practical expedient under Accounting Standards Update (ASU) 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earliest comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at January 1, 2019, but without retrospective application. In addition, the Company elected the optional practical expedient permitted under the transition guidance which allows the Company to carry forward the historical accounting treatment for existing leases upon adoption. No impact was recorded to the beginning retained earnings for Topic 842. The Company has two operating leases for corporate offices. The following table outlines the details: SCHEDULE OF OPERATING LEASES Lease 1 Lease 2 Initial Lease Term December 2017 to December 2021 November 2018 to November 2023 Renewal Term January 2021 to December 2024 November 2023 to November 2028 Initial Recognition of right-of-use assets at January 1, 2019 $ 534,140 $ 313,301 Incremental Borrowing Rate 10 % 10 % The Company decided not to renew the corporate office lease (Lease 1) in January 2021; however, the parties subsequently negotiated a one-year lease at the same location. The Company determined that the decision to not renew Lease 1 changed the corresponding lease term which required remeasurement of the lease liability resulting in the reduction of the right-of-use asset and the associated lease liability by $ 384,110 . The reassessment of the lease term did not change the existing classification and the lease is still classified as an operating lease. The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the operating lease liabilities recorded in the Consolidated Balance Sheet as of September 30, 2021. SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASE LIABILITIES Amounts due within twelve months of September 30 2021 $ 88,000 2022 50,196 2023 51,704 2024 53,255 2025 54,853 Thereafter 119,553 Total minimum lease payments 417,561 Less: effect of discounting (112,056 ) Present value of future minimum lease payments 305,505 Less: current obligations under leases 63,560 Long-term lease obligations $ 241,945 For the nine months ended September 30, 2021, and 2020, amortization of Right of Use Assets was $ 97,436 and $ 60,600 , respectively. For the nine months ended September 30, 2021, and 2020, amortization of Lease Liability was $ 96,954 and $ 64,522 , respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 9 – SEGMENT REPORTING The Company classifies its business interests into reportable segments which are Trxade, Inc., Community Specialty Pharmacy, LLC, Integra Pharma, LLC and Other. Operating segments are defined as the components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision makers in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision makers direct the allocation of resources to operating segments based on the profitability, cash flows, and growth opportunities of each respective segment. SCHEDULE OF BUSINESS INTERESTS INTO REPORTABLE SEGMENTS Nine Months Ended September 30, 2021 Trxade, Inc. Community Specialty Pharmacy, LLC Integra Pharma, LLC Other Total Revenue $ 3,653,269 $ 1,287,296 $ 2,511,270 $ 49,700 $ 7,501,535 Gross Profit $ 3,652,015 $ 123,470 $ (319,104 ) $ 49,362 $ 3,505,743 Segment Assets $ 1,487,657 $ (404,174 ) $ 563,396 $ 3,867,221 $ 5,514,101 Segment Profit (Loss) $ 1,511,809 $ (89,025 ) $ (2,500,032 ) $ (3,454,295 ) $ (4,531,543 ) Nine Months Ended September 30, 2020 Trxade, Inc. Community Specialty Pharmacy, LLC Integra Pharma, LLC Other Total Revenue $ 4,268,619 $ 1,287,197 $ 9,548,512 $ 23,898 $ 15,128,226 Gross Profit $ 4,268,619 $ 119,946 $ 1,162,030 $ 23,615 $ 5,574,210 Segment Assets $ 1,828,345 $ 257,495 $ 3,118,945 $ 6,649,226 $ 11,854,011 Segment Profit (Loss) $ 2,655,734 $ (88,756 ) $ 762,149 $ (3,553,020 ) $ (223,893 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to through October 25, 2021 the date that the financial statements were issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF BASIC AND DILUTIVE INCOME (LOSS) PER SHARE | The following table sets forth the computation of basic and diluted Income (Loss) per Share: SCHEDULE OF BASIC AND DILUTIVE INCOME (LOSS) PER SHARE 2021 2020 2021 2020 For three months ended September 30, For nine months ended September 30, 2021 2020 2021 2020 Numerator: Net Income (Loss) $ (1,301,748 ) $ 138,391 $ (4,531,543 ) $ (223,893 ) Numerator for basic and diluted EPS - income (loss) available to common Shareholders $ (1,301,748 ) $ 138,391 $ (4,531,543 ) $ (223,893 ) Denominator: Denominator for basic EPS – Weighted average shares 8,163,522 8,063,043 8,126,689 7,572,954 Basic Income (Loss) per common share $ (0.16 ) $ 0.02 $ (0.56 ) $ (0.03 ) |
WARRANTS (Tables)
WARRANTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Warrants | |
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS | The Company’s outstanding and exercisable warrants as of September 30, 2021, are presented below: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS Number Outstanding Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Warrants Outstanding as of December 31, 2020 82,751 $ 1.33 2.73 $ 352,951 Warrants granted 5,000 $ 3.00 1.48 - Warrants expired or forfeited (35,655 ) $ 2.43 - - Warrants exercised (5,000 ) $ 3.00 - - Warrants Outstanding as of September 30, 2021 47,096 $ 0.51 1.14 $ 208,078 Warrants Exercisable as of September 30, 2021 47,096 $ 0.51 1.14 $ 208,078 |
OPTIONS (Tables)
OPTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SCHEDULE OF ESTIMATE FAIR VALUE OF STOCK OPTIONS | The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of the grant. The following table summarizes the assumptions used to estimate the fair value of the stock options granted during the quarter ended September 30, 2021: SCHEDULE OF ESTIMATE FAIR VALUE OF STOCK OPTIONS Expected dividend yield 0 % Weighted-average expected volatility 102 - 207 % Weighted-average risk-free interest rate 0.25 % Expected life of options 5 years |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table represents stock option activity for the nine-month period ended September 30, 2021: SCHEDULE OF STOCK OPTION ACTIVITY Number Outstanding Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Options Outstanding as of December 31, 2020 425,817 $ 4.44 5.33 $ 597,322 Options Exercisable as of December 31, 2020 282,167 $ 4.52 4.56 $ 384,226 Options granted 36,700 $ 5.74 4.44 - Options forfeited - $ - - - Options expired - $ - - - Options exercised (30,353 ) $ 0.06 - - Options Outstanding as of September 30, 2021 432,164 $ 4.86 4.89 $ 368,613 Options Exercisable as of September 30, 2021 295,015 $ 4.90 4.58 $ 245,551 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
SCHEDULE OF OPERATING LEASES | SCHEDULE OF OPERATING LEASES Lease 1 Lease 2 Initial Lease Term December 2017 to December 2021 November 2018 to November 2023 Renewal Term January 2021 to December 2024 November 2023 to November 2028 Initial Recognition of right-of-use assets at January 1, 2019 $ 534,140 $ 313,301 Incremental Borrowing Rate 10 % 10 % |
SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASE LIABILITIES | SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASE LIABILITIES Amounts due within twelve months of September 30 2021 $ 88,000 2022 50,196 2023 51,704 2024 53,255 2025 54,853 Thereafter 119,553 Total minimum lease payments 417,561 Less: effect of discounting (112,056 ) Present value of future minimum lease payments 305,505 Less: current obligations under leases 63,560 Long-term lease obligations $ 241,945 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF BUSINESS INTERESTS INTO REPORTABLE SEGMENTS | SCHEDULE OF BUSINESS INTERESTS INTO REPORTABLE SEGMENTS Nine Months Ended September 30, 2021 Trxade, Inc. Community Specialty Pharmacy, LLC Integra Pharma, LLC Other Total Revenue $ 3,653,269 $ 1,287,296 $ 2,511,270 $ 49,700 $ 7,501,535 Gross Profit $ 3,652,015 $ 123,470 $ (319,104 ) $ 49,362 $ 3,505,743 Segment Assets $ 1,487,657 $ (404,174 ) $ 563,396 $ 3,867,221 $ 5,514,101 Segment Profit (Loss) $ 1,511,809 $ (89,025 ) $ (2,500,032 ) $ (3,454,295 ) $ (4,531,543 ) Nine Months Ended September 30, 2020 Trxade, Inc. Community Specialty Pharmacy, LLC Integra Pharma, LLC Other Total Revenue $ 4,268,619 $ 1,287,197 $ 9,548,512 $ 23,898 $ 15,128,226 Gross Profit $ 4,268,619 $ 119,946 $ 1,162,030 $ 23,615 $ 5,574,210 Segment Assets $ 1,828,345 $ 257,495 $ 3,118,945 $ 6,649,226 $ 11,854,011 Segment Profit (Loss) $ 2,655,734 $ (88,756 ) $ 762,149 $ (3,553,020 ) $ (223,893 ) |
SCHEDULE OF BASIC AND DILUTIVE
SCHEDULE OF BASIC AND DILUTIVE INCOME (LOSS) PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||||||||
Net Income (Loss) | $ (1,301,748) | $ (2,578,276) | $ (651,519) | $ 138,391 | $ (542,587) | $ 180,303 | $ (4,531,543) | $ (223,893) |
Numerator for basic and diluted EPS - income (loss) available to common Shareholders | $ (1,301,748) | $ 138,391 | $ (4,531,543) | $ (223,893) | ||||
Denominator for basic EPS – Weighted average shares | 8,163,522 | 8,063,043 | 8,126,689 | 7,572,954 | ||||
Basic Income (Loss) per common share | $ (0.16) | $ 0.02 | $ (0.56) | $ (0.03) |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Equity Method Investment, Ownership Percentage | 100.00% | ||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 616,215 | $ 35,539 | |
Accounts Receivable, after Allowance for Credit Loss, Current | 1,008,816 | $ 805,043 | |
Warrants and Rights Outstanding | $ 47,096 | ||
Number of options outstanding | 432,164 | ||
Single Customer [Member] | |||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 630,000 | ||
Bonum Health Hub [Member] | |||
Investment Company, Gain (Loss) on Investment Not Meeting Guidelines | $ 143,891 |
SHORT TERM DEBT _ RELATED PAR_2
SHORT TERM DEBT – RELATED PARTIES (Details Narrative) - USD ($) | 1 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Sep. 30, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||||
Related party debt | $ 225,000 | |||
Community Specialty Pharmacy, LLC [Member] | Related Party Promissory Note [Member] | Nikul Panchal [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt, Current | $ 300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||
Debt Instrument, Maturity Date | Oct. 15, 2021 | |||
Debt Conversion, Converted Instrument, Amount | $ 75,000 | |||
Debt Conversion, Converted Instrument, Shares Issued | 25,000 | |||
Debt Instrument, Convertible, Conversion Price | $ 3 | |||
Notes Payable, Current | $ 225,000 | |||
Gain (Loss) on Extinguishment of Debt | $ 76,500 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Jul. 18, 2021 | May 27, 2021 | Apr. 15, 2021 | Apr. 14, 2020 | Aug. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 5,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3 | |||||||
Proceeds from Warrant Exercises | $ 15,001 | $ 15,001 | $ 36,255 | |||||
Number of common shares issued for warrants exercised | $ 5,000 | |||||||
Share-based Payment Arrangement, Noncash Expense | 36,667 | |||||||
Howard A.Doss [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 12,500 | |||||||
Mr.Donald G.Fell, Dr. Pamela Tenaerts and Mr. Michael L. Peterson [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 8,987 | |||||||
Board of Directors [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Sale of Stock, Consideration Received on Transaction | $ 9,000,000 | |||||||
Board of Directors [Member] | Stock Repurchase Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program description | There is no time frame for the repurchase program, and such program will remain in place until a maximum of $1.0 million of the Company’s common stock has been repurchased or until such program is suspended or discontinued by the Board of Directors. | |||||||
Board of Directors [Member] | Stock Repurchase Program [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchased During Period, Value | $ 1,000,000 | |||||||
Board of Directors [Member] | 2021 Equity Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 17,500 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 4.76 | |||||||
Mr. Donald G. Fell, Dr. Pamela Tenaerts, and Mr. Michael L. Peterson [Member] | 2021 Equity Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 10,721 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 55,000 | 165,000 | ||||||
Share-based Payment Arrangement, Noncash Expense | 55,000 | |||||||
Shares Issued, Price Per Share | $ 5.13 | |||||||
Mr. Peterson and Ms. Tenaerts [Member] | 2021 Equity Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Redeemed or Called During Period, Shares | 16,082 | |||||||
Michael L. Peterson and Dr. Pamela Tenaert [Member] | 2021 Equity Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 2,680 | |||||||
Charles L. Pope, and Christine L. Jennings [Member] | 2021 Equity Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 10,912 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 41,250 | |||||||
Shares Issued, Price Per Share | $ 3.78 | |||||||
Suren Ajjarapu [Member] | Employment Agreement [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 49,020 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 300,000 | |||||||
Share-based Payment Arrangement, Noncash Expense | $ 391,841 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 49,020 | |||||||
Incremental value | $ 72,062 | |||||||
Legal Counsel [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 5,000 | |||||||
Two Thousand Twenty Equity Compensation Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 107,100 | |||||||
Share-based Payment Arrangement, Noncash Expense | 26,775 | |||||||
Independent Director Compensation Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 165,000 | |||||||
Share-based Payment Arrangement, Noncash Expense | $ 41,250 |
SCHEDULE OF OUTSTANDING AND EXE
SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS (Details) | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Warrants | |
Number of Outstanding Shares, Warrants, Outstanding Beginning | shares | 82,751 |
Weighted Average Exercise Price, Outstanding Beginning | $ / shares | $ 1.33 |
Contractual Life in Years, Warrants Outstanding | 2 years 8 months 23 days |
Intrinsic Value, Warrants, Outstanding Beginning | $ | $ 352,951 |
Number of Outstanding Shares, Warrants granted | shares | 5,000 |
Weighted Average Exercise Price, Warrants granted | $ / shares | $ 3 |
Contractual Life in Years, Warrants Granted | 1 year 5 months 23 days |
Number of Outstanding Shares, Warrants expired or forfeited | shares | (35,655) |
Weighted Average Exercise Price, Warrants expired or forfeited | $ / shares | $ 2.43 |
Number of Outstanding Shares, Warrants exercised | shares | (5,000) |
Weighted Average Exercise Price, Warrants exercised | $ / shares | $ 3 |
Number of Outstanding Shares, Warrants, Outstanding Ending | shares | 47,096 |
Weighted Average Exercise Price, Outstanding Ending | $ / shares | $ 0.51 |
Contractual Life in Years, Warrants, Outstanding Ending | 1 year 1 month 20 days |
Intrinsic Value, Warrants, Outstanding Ending | $ | $ 208,078 |
Number of Outstanding Shares, Warrants, Exercisable Ending | shares | 47,096 |
Weighted Average Exercise Price, Warrants, Exercisable Ending | $ / shares | $ 0.51 |
Contractual Life in Years, Warrants Exercisable Ending | 1 year 1 month 20 days |
Intrinsic Value, Warrants Exercisable Ending | $ | $ 208,078 |
WARRANTS (Details Narrative)
WARRANTS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 5,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 5,000 | |
Share-based Payment Arrangement, Noncash Expense | $ 36,667 | |
Warrant [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 5,000 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 35,655 | |
Share-based Payment Arrangement, Noncash Expense | $ 21,640 | $ 149,158 |
SCHEDULE OF ESTIMATE FAIR VALUE
SCHEDULE OF ESTIMATE FAIR VALUE OF STOCK OPTIONS (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 0.25% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 102.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 207.00% |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options Outstanding, Beginning Balance | shares | 425,817 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 4.44 |
Contractual Life in Years Outstanding, Beginning Balance | 5 years 3 months 29 days |
Intrinsic Value Outstanding, Beginning Balance | $ | $ 597,322 |
Number of Options Exercisable, Beginning Balance | shares | 282,167 |
Weighted Average Exercise Price Exercisable, Beginning Balance | $ / shares | $ 4.52 |
Contractual Life in Years Exercisable, Beginning Balance | 4 years 6 months 21 days |
Intrinsic Value Exercisable, Beginning Balance | $ | $ 384,226 |
Number of Options, Granted | shares | 36,700 |
Weighted Average Exercise Price, Granted | $ / shares | $ 5.74 |
Contractual Life in Years, Granted | 4 years 5 months 8 days |
Number of Options, Forfeited | shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | |
Number of Options, Expired | shares | |
Weighted Average Exercise Price, Expired | $ / shares | |
Number of Options, Exercised | shares | (30,353) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.06 |
Number of Options Outstanding, Ending Balance | shares | 432,164 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 4.86 |
Contractual Life in Years Outstanding, Ending Balance | 4 years 10 months 20 days |
Intrinsic Value Outstanding, Ending Balance | $ | $ 368,613 |
Number of Options Exercisable, Ending Balance | shares | 295,015 |
Weighted Average Exercise Price Exercisable, Ending Balance | $ / shares | $ 4.90 |
Contractual Life in Years Exercisable, Ending Balance | 4 years 6 months 29 days |
Intrinsic Value Exercisable, Ending Balance | $ | $ 245,551 |
OPTIONS (Details Narrative)
OPTIONS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |
Proceeds from Issuance of Common Stock | $ 5,994,424 | |
Share-based Payment Arrangement, Noncash Expense | $ 36,667 | |
Share-based Payment Arrangement [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 36,700 | |
Options vesting period | four-year | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 5.74 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years | |
Number of options, exercised | 30,353 | |
Proceeds from Issuance of Common Stock | $ 1,821 | |
Share-based Payment Arrangement, Noncash Expense | $ 137,130 | $ 372,900 |
Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 2,333,333 | |
Second Amended and Restated 2019 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Issued During Period, Shares, New Issues | 2,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Description | beginning in 2021 and ending in 2029 (each a “Date of Determination”), in each case subject to the approval and determination of the administrator of the plan (the Board of Directors or Compensation Committee) on or prior to the applicable Date of Determination, equal to the lesser of (A) ten percent (10%) of the total shares of common stock of the Company outstanding on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the administrator. |
OTHER RECEIVABLES (Details Narr
OTHER RECEIVABLES (Details Narrative) | Aug. 14, 2020Integer | Aug. 31, 2020USD ($)Integer | Jul. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) |
Loss on Inventory Investment | $ 1,285 | $ 1,226,426 | ||||||
Integra [Member] | Studebaker Defense Group, LLC [Member] | ||||||||
Down payment | $ 500,000 | |||||||
Number of nitrile gloves delivered | Integer | 180,000 | |||||||
Loss Contingency, Damages Sought, Value | $ 500,000 | |||||||
Loss on Inventory Investment | $ 500,000 | |||||||
Integra [Member] | Sandwave Group Dsn Bhd [Member] | ||||||||
Down payment | $ 581,250 | |||||||
Number of nitrile gloves delivered | Integer | 150,000 | |||||||
Loss Contingency, Damages Sought, Value | $ 581,250 | |||||||
Loss on Inventory Investment | $ 581,250 | |||||||
Integra [Member] | Crecom Burj Group SDN BHD [Member] | ||||||||
Loss Contingency, Damages Sought, Value | $ 581,250 |
CONTINGENCIES (Details Narrativ
CONTINGENCIES (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended |
Jan. 31, 2020 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Paid, Value | $ 450,000 | |
Compensatory Damages [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 425,000 | |
Punitive Damages [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 1,275,000 | |
Damages Sought is Unclear [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 425,000 |
SCHEDULE OF OPERATING LEASES (D
SCHEDULE OF OPERATING LEASES (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Initial Recognition of right-of-use assets at January 1, 2019 | $ 289,935 | $ 387,371 |
Lease 1 [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lessee, Operating Lease, Description | December 2017 to December 2021 | |
Renewal Term | January 2021 to December 2024 | |
Initial Recognition of right-of-use assets at January 1, 2019 | $ 534,140 | |
Incremental Borrowing Rate | 10.00% | |
Lease 2 [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lessee, Operating Lease, Description | November 2018 to November 2023 | |
Renewal Term | November 2023 to November 2028 | |
Initial Recognition of right-of-use assets at January 1, 2019 | $ 313,301 | |
Incremental Borrowing Rate | 10.00% |
SCHEDULE OF FUTURE MINIMUM PAYM
SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASE LIABILITIES (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 88,000 | |
2022 | 50,196 | |
2023 | 51,704 | |
2024 | 53,255 | |
2025 | 54,853 | |
Thereafter | 119,553 | |
Total minimum lease payments | 417,561 | |
Less: effect of discounting | (112,056) | |
Present value of future minimum lease payments | 305,505 | |
Less: current obligations under leases | 63,560 | $ 131,153 |
Long-term lease obligations | $ 241,945 | $ 271,306 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||
Reduction in lease liability | $ 384,110 | |
Operating Lease, Right-of-Use Asset, Amortization Expense | 97,436 | $ 60,600 |
Amortization of lease liability | $ 96,954 | $ 64,522 |
SCHEDULE OF BUSINESS INTERESTS
SCHEDULE OF BUSINESS INTERESTS INTO REPORTABLE SEGMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 2,550,046 | $ 6,332,269 | $ 7,501,535 | $ 15,128,226 |
Gross Profit | 1,281,041 | 1,929,302 | 3,505,743 | 5,574,210 |
Segment Assets | 5,514,101 | 11,854,011 | 5,514,101 | 11,854,011 |
Segment Profit (Loss) | (4,531,543) | (223,893) | ||
Trxade, Inc. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,653,269 | 4,268,619 | ||
Gross Profit | 3,652,015 | 4,268,619 | ||
Segment Assets | 1,487,657 | 1,828,345 | 1,487,657 | 1,828,345 |
Segment Profit (Loss) | 1,511,809 | 2,655,734 | ||
Community Specialty Pharmacy, LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,287,296 | 1,287,197 | ||
Gross Profit | 123,470 | 119,946 | ||
Segment Assets | (404,174) | 257,495 | (404,174) | 257,495 |
Segment Profit (Loss) | (89,025) | (88,756) | ||
Integra Pharma, LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,511,270 | 9,548,512 | ||
Gross Profit | (319,104) | 1,162,030 | ||
Segment Assets | 563,396 | 3,118,945 | 563,396 | 3,118,945 |
Segment Profit (Loss) | (2,500,032) | 762,149 | ||
Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 49,700 | 23,898 | ||
Gross Profit | 49,362 | 23,615 | ||
Segment Assets | $ 3,867,221 | $ 6,649,226 | 3,867,221 | 6,649,226 |
Segment Profit (Loss) | $ (3,454,295) | $ (3,553,020) |