Attached files
| file | filename |
|---|---|
| EX-99.1 - TRxADE HEALTH, INC | ex99-1.htm |
| 8-K/A - TRxADE HEALTH, INC | form8-ka.htm |
Exhibit 99.2
TRXADE GROUP, INC.
and
COMMUNITY SPECIALTY PHARMACY, LLC
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Table of Contents
| PF-1 |
TRXADE GROUP, INC. and COMMUNITY SPECIALTY PHARMACY, LLC
PRO FORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2018
(UNAUDITED)
Trxade |
CSP | Pro forma Adjustments | Pro forma Consolidated | |||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||
| Cash | $ | 592,765 | $ | 127,432 | $ | (377,705 | ) | a | $ | 342,492 | ||||||
| Accounts receivable Net | 419,578 | 57,779 | 60,676 | a | 538,033 | |||||||||||
| Inventory | 13,865 | 99,710 | (26,228 | ) | a | 87,347 | ||||||||||
| Prepaid Assets | 172,289 | 20,816 | (17,816 | ) | a | 175,289 | ||||||||||
| Other Assets | 22,500 | - | - | 22,500 | ||||||||||||
| Total current assets | 1,220,997 | 305,737 | (361,073 | ) | 1,165,661 | |||||||||||
| OTHER ASSETS: | ||||||||||||||||
| Other Assets | 10,000 | - | - | 10,000 | ||||||||||||
| Goodwill | - | - | 726,483 | a | 726,483 | |||||||||||
| TOTAL ASSETS | $ | 1,230,997 | $ | 305,737 | $ | 365,410 | $ | 1,902,144 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||||
| Accounts Payable | $ | 106,332 | $ | 153,428 | $ | 47,253 | a | $ | 307,013 | |||||||
| Accrued Liabilities | 255,023 | 153 | 52,500 | c | 307,676 | |||||||||||
| Lines of Credit | - | 85,886 | (46,139 | ) | a | - | ||||||||||
| (39,747 | ) | b | ||||||||||||||
| Short Term Convertible Payable | 181,500 | - | - | 181,500 | ||||||||||||
| Short Term Convertible Payable – Related Party | 140,000 | - | - | 140,000 | ||||||||||||
| Total Current Liabilities | 682,855 | 239,467 | (13,867 | ) | 936,189 | |||||||||||
| LONG TERM LIABILITIES | ||||||||||||||||
| Notes Payable | - | 300,000 | a | 300,000 | ||||||||||||
| Notes Payable – Related Party | 222,552 | - | - | 222,552 | ||||||||||||
| Total Liabilities | 905,407 | 239,467 | 313,867 | 1,458,741 | ||||||||||||
| SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||
| Series A Preferred Stock, $0.00001 par value; 10,000,000 shares authorized; 0 issued and outstanding | - | |||||||||||||||
| Common Stock, $0.00001 par value; 100,000,000 shares authorized; 32,285,827 issued and Outstanding | 323 | - | - | 323 | ||||||||||||
| Member’s Equity | - | 59,276 | (59,276 | ) | a | - | ||||||||||
| Additional Paid in Capital | 8,248,349 | - | 8,418,662 | |||||||||||||
| 170,313 | a | |||||||||||||||
| (52,500 | ) | c | ||||||||||||||
| Retained Earnings (Deficit) | (7,923,082 | ) | 6,994 | (6,994 | ) | a | (7,975,582 | ) | ||||||||
| Total Shareholders’ Equity | 325,590 | 66,270 | 51,543 | 443,403 | ||||||||||||
| TOTAL LIABILTIES AND SHAREHOLDERS’ EQUITY | $ | 1,230,997 | $ | 305,737 | $ | 365,410 | $ | 1,902,144 | ||||||||
The accompanying notes are an integral part of these proforma consolidated financial statements.
| PF-2 |
TRXADE GROUP, INC. and COMMUNITY SPECIALTY PHARMACY. LLC
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018
(UNAUDITED)
Trxade |
CSP | Pro forma Adjustments |
Consolidated | |||||||||||||
| Revenue | $ | 2,538,082 | $ | 1,985,620 | $ | - | $ | 4,523,702 | ||||||||
| Cost of revenue | 2,345 | 1,614,523 | - | 1,616,868 | ||||||||||||
| Gross Profit | 2,535,737 | 371,097 | - | 2,906,834 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative expenses | 2,313,734 | 268,741 | - | 2,582,475 | ||||||||||||
| Income from operations | 222,003 | 102,356 | - | 324,359 | ||||||||||||
| Other Income | 22,500 | 239 | - | 22,739 | ||||||||||||
| Loss on Extinguishment of debt | (7,444 | ) | - | - | (7,444 | ) | ||||||||||
| Interest Expense | (40,028 | ) | (5,222 | ) | (22,500 | ) | c | (67,750 | ) | |||||||
| Net Income | $ | 197,031 | $ | 97,373 | $ | (22,500 | ) | $ | 271,904 | |||||||
| Net Income per common share – basic | $ | 0.01 | $ | 0.01 | ||||||||||||
| Net Income per common share - diluted | $ | 0.01 | $ | 0.01 | ||||||||||||
| Weighted average common shares - basic | 32,083,629 | 32,083,629 | ||||||||||||||
| Weighted average common shares - diluted | 34,732,540 | 403,940 | 35,136,480 | |||||||||||||
The accompanying notes are an integral part of these proforma consolidated financial statements.
| PF-3 |
TRXADE GROUP, INC. and COMMUNITY SPECIALTY PHARMACY. LLC
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2017
(UNAUDITED)
Trxade |
CSP | Pro forma Adjustments |
Consolidated | |||||||||||||
| Revenue | $ | 2,931,280 | $ | 2,633,914 | $ | - | $ | 5,565,194 | ||||||||
| Cost of revenue | - | 2,265,902 | - | 2,265,902 | ||||||||||||
| Gross Profit | 2,931,280 | 368,012 | - | 3,299,292 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative expenses | 2,536,185 | 423,267 | - | 2,959,452 | ||||||||||||
| Income from operations | 395,095 | (55,255 | ) | - | 339,840 | |||||||||||
| Other Income | 67,500 | 912 | - | 68,412 | ||||||||||||
| Loss on Extinguishment of debt | (16,556 | ) | - | - | (16,556 | ) | ||||||||||
| Interest Expense | (157,056 | ) | (8,789 | ) | (30,000 | ) | c | (195,845 | ) | |||||||
| Net Income | $ | 288,983 | $ | (63,132 | ) | $ | (30,000 | ) | $ | 195,851 | ||||||
| Net Income per common share – basic | $ | 0.01 | $ | 0.01 | ||||||||||||
| Net Income per common share - diluted | $ | 0.01 | $ | 0.01 | ||||||||||||
| Weighted average common shares - basic | 31,955,416 | 31,955,416 | ||||||||||||||
| Weighted average common shares - diluted | 34,086,251 | 405,507 | 34,491,758 | |||||||||||||
The accompanying notes are an integral part of these proforma consolidated financial statements.
| PF-4 |
TRXADE GROUP. INC. and COMMUNITY SPECIALTY PHARMACY, LLC
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1 – Basis of Presentation
On October 15, 2018, Trxade Group, Inc., a Delaware corporation (the “Company”) entered into and consummated the purchase of 100% of the equity interests of Community Specialty Pharmacy, LLC, a Florida limited liability company, (“CSP”), pursuant to the terms and conditions of the Membership Interest Purchase Agreement (“Purchase Agreement”), entered into by and among the Company as the buyer, and CSP, and Nikul Panchal, the sole equity owner of CSP (collectively the “Seller”).
The accompanying pro forma consolidated balance sheets presents the accounts of the Company and CSP as if the acquisition occurred as of September 30, 2018. The accompanying pro forma consolidated statements of operations presents the accounts of Trxade and CSP for the nine months ended September 30, 2018, and the year ended December 31, 2017, as if the acquisition occurred on January 1, 2018 and January 1, 2017, respectively. The unaudited pro forma consolidated financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with, the historical financial statements of Trxade Group, Inc and CSP.
The following adjustments would be required if the acquisition occurred as indicated above:
| a. | To allocate the purchase price of $770,313 consisting of $300,000 in cash, a promissory note from the Company 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 the Common Stock of the Company (“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 for the warrants calculated under the Black-Scholes calculation was $170,313. |
| Purchase Price Allocation | ||||
| Cash | $ | 49,727 | ||
| Accounts Receivable | 118,455 | |||
| Inventory | 73,482 | |||
| Prepaid | 3,000 | |||
| Goodwill | 726,483 | |||
| Accounts Payable | (200,681 | ) | ||
| Accrued Expenses | (153 | ) | ||
| $ | 770,313 | |||
| b. | To record payment of Lines of Credit at closing – Cash used from company and contribution by Mr. Panchal. |
| c. | To record interest on the $300,000 promissory note |
The unaudited consolidated pro forma financial information is presented for informational purposes only and is subject to a number of uncertainties and assumptions and do not purport to represent what Trxade Group, Inc. actual performance or financial position would have been had the transaction occurred on the dates indicated and does not purport to indicate the financial position or result of operations as of any future date or for any future period.
| PF-5 |