Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 30, 2017 | Jun. 30, 2016 | |
Document and Entity Information: | |||
Entity Registrant Name | TRXADE GROUP, INC. | ||
Entity Trading Symbol | trxd | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,382,574 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 31,960,827 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash | $ 14,679 | $ 78,708 |
Accounts Receivable, net | 299,113 | 354,742 |
Prepaid Assets | 22,438 | 85,549 |
Other Current Assets | 894 | 5,149 |
Total Current Assets | 337,124 | 524,148 |
Other Assets | ||
Assets Attributable to discontinued operations | 0 | 1,503,522 |
Total Assets | 337,124 | 2,027,670 |
Current Liabilities | ||
Accounts Payable | 236,849 | 220,351 |
Accrued Liabilities | 466,982 | 248,393 |
Short Term Notes Payable net of $40,306 and $15,000 discount | 392,379 | 235,000 |
Short Term Convertible Payable net of $0 and $35,697 discount | 165,000 | 164,303 |
Short Term Notes Payable - Related Party | 10,000 | 0 |
Short Term Convertible Payable - Related Party net of $48,341 and $- discount | 203,384 | 0 |
Liabilities Attributable to Discontinued Operations | 0 | 892,606 |
Total Current Liabilities | 1,474,594 | 1,760,653 |
Long Term Liabilities | ||
Convertible Note net of $152 and $ - discount | 10,587 | 0 |
Total Liabilities | 1,485,181 | 1,760,653 |
Shareholder's Equity (Deficit) | ||
Series A Preferred Stock, $.00001 par value, 10,000,000 authorized; 0 and 0 issued and outstanding, as of December 31, 2016 and 2015, respectively | 0 | 0 |
Common Stock, $0.00001 par value, 100,000,000 authorized; 31,660,827 and 31,435,827 issued and outstanding as of December 31, 2016 and 2015 respectively | 316 | 314 |
Additional Paid-in Capital | 7,260,723 | 5,915,674 |
Retained Earnings (Deficit) | (8,409,096) | (5,648,971) |
Total Shareholder's Equity (Deficit) | (1,148,057) | 267,017 |
Total Liabilities and Shareholder's Equity (Deficit) | $ 337,124 | $ 2,027,670 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Parentheticals | ||
Short Term Notes Payable, net of discount | $ 40,306 | $ 15,000 |
Short term Convertible Payable net of discount. | 0 | 35,697 |
Short Term Convertible Payable - Related Party net of discount | 48,341 | 0 |
Convertible Note net of discount | $ 152 | $ 0 |
Preferred Stock, par value | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $ 0.00001 | $ 0.00001 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 31,660,827 | 31,435,827 |
Common Stock, shares outstanding | 31,660,827 | 31,435,827 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | ||
Revenues | $ 2,481,866 | $ 2,912,525 |
Cost of Sales | 16,362 | 189,838 |
Gross Profit | 2,465,504 | 2,722,687 |
Operating Expenses | ||
General and Administrative | 3,449,533 | 2,859,757 |
Operating Loss | (984,029) | (137,070) |
Loss on Extinguishment of Debt | 37,579 | 0 |
Interest Expense | 151,500 | 119,512 |
Loss from Continuing Operations | (1,173,108) | (256,582) |
Loss from Discontinued Operations | (1,587,017) | (860,601) |
Net Loss | $ (2,760,125) | $ (1,117,183) |
Net Loss per Common Share - Basic and diluted: | ||
Continuing operations | $ (0.04) | $ (0.01) |
Discontinued operations | (0.05) | (0.03) |
Total Continuing & Discontinued operations | $ (0.09) | $ (0.04) |
Weighted Average Common Shares outstanding Basic and Diluted | 31,544,868 | 31,315,735 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholder's Equity (Deficit) - USD ($) | Preferred Stock Shares | Preferred Stock Amount | Common Stock Shares | Common Stock Amount | Additional Paid-in Capital | Accumulated Deficit | Total Shareholder's Equity (Deficit) |
Balance at Dec. 31, 2014 | 0 | 0 | 31,269,160 | 312 | 5,199,917 | (4,531,788) | 688,441 |
Warrants converted to common stock | 166,667 | 2 | 1,665 | 1,667 | |||
Options Expenses | $ 355,116 | $ 355,116 | |||||
Beneficial conversion features and relative fair value of warrant | $ 358,976 | 358,976 | |||||
Net Loss | $ (1,117,183) | $ (1,117,183) | |||||
Balance. at Dec. 31, 2015 | 0 | 0 | 31,435,827 | 314 | 5,915,674 | (5,648,971) | 267,017 |
Balance at Dec. 31, 2016 | 0 | 0 | 31,269,160 | 312 | 5,199,917 | (4,531,788) | 688,441 |
Warrants converted to common stock | 166,667 | 2 | 1,665 | 1,667 | |||
Options Expenses | $ 355,116 | $ 355,116 | |||||
Beneficial conversion features and relative fair value of warrant | $ 358,976 | 358,976 | |||||
Net Loss | $ (1,117,183) | $ (1,117,183) | |||||
Balance. at Dec. 31, 2016 | 0 | 0 | 31,435,827 | 314 | 5,915,674 | (5,648,971) | 267,017 |
Common Stock Issued for Cash | 200,000 | 2 | 299,998 | 300,000 | |||
Common Stock Issued for warrant exercise | 25,000 | 240 | 240 | ||||
Warrants Issued for debt Amendment | $ 37,579 | $ 37,579 | |||||
Warrants Issued for sale of Westminster | 688,143 | 688,143 | |||||
Options Expenses | 147,630 | 147,630 | |||||
Beneficial Conversion features and Relative fair value of warrant | $ 171,459 | 171,459 | |||||
Net Loss | $ (2,760,125) | $ (2,760,125) | |||||
Balance at Dec. 31, 2016 | 0 | 0 | 31,660,827 | 316 | 7,260,723 | (8,409,096) | (1,148,057) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | ||
Net Loss | $ (2,760,125) | $ (1,117,183) |
Loss From discontinued operations | 1,587,017 | 860,601 |
Adjustments to reconcile net loss to net cash used in Operating activities: | ||
Bad Debt Expense | 0 | 23,528 |
Recovery of Bad Debt | (150) | 0 |
Depreciation | 0 | 3,802 |
Options expense | 147,630 | 355,116 |
Loss on Debt Extinguishment | 37,579 | 0 |
Amortization of Debt Discount | 111,288 | 101,396 |
Changes in operating assets and liabilities: | ||
Accounts Receivable | 55,779 | (39,123) |
Prepaid Assets and Other Current Assets | 67,366 | (44,672) |
Accounts Payable | 16,498 | (67,796) |
Accrued Liabilities and Other Liabilities | 233,589 | 14,717 |
Net Cash provided (used) in operating activities | (503,529) | 90,386 |
Financing Activities: | ||
Cash paid as Original Issue Discount | (45,000) | 0 |
Proceeds from Debt - Related Parties | 10,000 | 0 |
Repayments of Debt Note Payable | (54,735) | 0 |
Proceeds from Debt Note Payable | 209,159 | 205,000 |
Repayments of Convertible Note | (50,000) | 0 |
Proceeds from Convertible Note | 0 | 200,000 |
Proceeds from Convertible Note - Related Parties | 251,725 | 0 |
Proceeds from Issuance of Common Stock | 300,000 | 0 |
Proceeds from Warrants exercise | 240 | 1,667 |
Net Cash provided by financing activities. | 621,389 | 406,667 |
Discontinued Operation.: | ||
Net cash used in operating activities. | (809,889) | (2,064,162) |
Net cash used in investing activities. | (78,000) | 0 |
Net cash provided by financing activities. | 550,000 | 950,000 |
Net cash used in discontinued operations | (181,889) | (1,114,162) |
Net increase or (Decrease) in Cash | (64,029) | (617,109) |
Cash at Beginning of the Year | 78,708 | 695,817 |
Cash at End of the Year | 14,679 | 78,708 |
Supplemental Cash Flow Information | ||
Cash Paid for Interest | 23,556 | 4,935 |
Cash Paid for Income Taxes | 0 | 0 |
Non-Cash Transactions | ||
Reclass from accrued interest to short term convertible notes | 15,000 | 0 |
Beneficial conversion features and relative fair value of warrant | $ 171,459 | $ 358,976 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2016 | |
GOING CONCERN | |
Organization | NOTE 1 ORGANIZATION Trxade Group, Inc. (Company) owns 100% of Trxade, Inc., and ShopRX, Ltd. The merger of Trxade, Inc. and Trxade Group, Inc. occurred in May 2013. ShopRx, Ltd. was formed in 2016. Trxade, Inc. is a web based market platform that enables trade among healthcare buyers and sellers of pharmaceuticals, accessories and services. In December 2016 the Company sold Westminster Pharmaceutical LLC. Westminster provided US state licensed pharmacies and other buying groups with FDA approved pharmaceuticals. The Westminster Pharmaceuticals LLC division, which was sold in December 2016, is included in the consolidated financial statements as discontinued operations and is fully described in Note 4 DISCONTINUED OPERATIONS. INTEGRA PHARMA SOLUTIONS, LLC (formerly Pinnacle Tek, Inc.) is a technology consultant provider that supports the programming needs of parent company and also provides other information technology consulting services. The company is no longer active. In December 2016 the Company ceased operation of ShopRX, Ltd. the Companys UK based subsidiary. The Company had hoped to establish a similar business to Trxade, Inc. in the United Kingdom under this entity. The startup costs were expensed. |
GOING CONCERN
GOING CONCERN | 12 Months Ended |
Dec. 31, 2016 | |
GOING CONCERN | |
GOING CONCERN | NOTE 2 GOING CONCERN These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The ability of the Company to continue as a going concern is dependent on raising additional capital and generating future profitable operations. There can be no assurance that the Company will be able to raise the necessary funds when needed to finance its ongoing costs. The Companys future capital requirements will depend on many factors, including cash flow from operations, costs to complete platform improvements, if warranted, and competition and market conditions. The Companys recurring operating losses and working capital needs will require that it obtain additional capital to operate its business. Given the Companys limited operating history, lack of revenues, and its operating losses, there can be no assurance that it will be able to achieve and maintain profitability. Accordingly, these factors raise substantial doubt about the Companys ability to continue as a going concern. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Summary Of Significant Accounting Policies: | |
Summary Of Significant Accounting Policies | NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and include all the notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for fair presentation of the financial statements have been included. The summary of significant accounting policies presented below is designed to assist in understanding the Companys financial statements. Such financial statements and accompanying notes are the representations of the Companys management, who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (GAAP) in all material respects, and have been consistently applied in preparing the accompanying financial statements. Use of Estimates In preparing these financial statements, management is required to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Principle of Consolidation The Company financial statements include the accounts of Trxade Group, Inc., Trxade, Inc., and INTEGRA PHARMA SOLUTIONS, LLC (formerly Pinnacle Tek, Inc). All significant intercompany accounts and transactions have been eliminated. The Westminster Pharmaceuticals LLC division, which was sold in December 2016, is included in the consolidated financial statements as discontinued operations and is fully described in Note 4 - DISCONTINUED OPERATIONS. Cash and Cash Equivalents Cash in bank accounts are at risk to the extent that they exceed U.S. Federal Deposit Insurance Corporation insured amounts. All investments purchased with a maturity of three months or less are cash equivalents. Cash and cash equivalents are available on demand and are generally within of FDIC insurance limits for 2016. Accounts Receivable The Companys receivables are from customers and are collected within 90 days. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. During the year ended December 31, 2016 and 2015, $150 of recovery of bad debt and $23,528 of bad debt expense was recognized, respectively. Inventory - Inventories are stated at the lower of cost or market. Cost, is determined on a first-in, first-out basis. On a quarterly basis, we analyze our inventory levels and reserve for inventory that is expected to expire prior to being sold, inventory that has a cost basis in excess of its expected net realizable value, inventory in excess of expected sales requirements, or inventory that fails to meet commercial sale specifications. Expired inventory is disposed of and the related costs are written off to the reserve for inventory obsolescence. Beneficial Conversion Features The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. Derivative financial instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a Black-Scholes option pricing model, assuming maximum value, in accordance with ASC 815-15 Derivative and Hedging to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. Level 2 Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. Level 3 Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. Revenue Recognition In general the Company accounts for revenue recognition in accordance with ASC 605, Revenue Recognition. Trxade, Inc. generates net fee income as a percentage of the total transactions between the buyer (independent pharmacies) and the seller (wholesaler) of pharmaceutical drugs on the Trxade web-based platform. Revenue is recognized when four steps are met: (1) the price is fixed and determined as the buyer orders the drugs from the wholesaler; (2) The wholesaler has signed a contract with Trxade, Inc. which recognizes that an arrangement exists; (3) The wholesaler delivers the drugs purchased to the buyer, products are delivered; (4) The collectability is reasonably assured by the wholesaler through prior credit checks and payment experience. In 2016, three customers each generated more than 10% of total revenue. Westminster Pharmaceutical LLC generated gross revenues from the sale of pharmaceutical drugs to independent pharmacies or wholesalers. The revenue recognized when four steps are met: (1) the price is fixed and determinable at the time of the transaction with an invoice; (2) The invoice is also persuasive evidence that an arrangement exists; (3) The products are delivered to the buyer; (4) The collectability of the resulting receivable is reasonably assured by credit check prior to the transaction and experience with the customer. The Westminster revenue is presented as discontinued operations and is fully described in Note 4 - DISCONTINUED OPERATIONS. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provision of ASC 505, Equity Based Payments to Non-Employees (ASC 505), Share Based Payments to Non-Employees, and ASC 505 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying instruments vest. The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. Income Taxes The Company accounts for income taxes utilizing ASC 740, Income Taxes (SFAS No. 109). 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. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Companys financial statements or tax returns. The Company currently has substantial net operating loss carry forwards. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income (loss) Per Share Basic net loss per common share is computed by dividing net loss available to commons stockholders by the weighted average number of common shares outstanding. Diluted net loss per common share is computed similar to basic net loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilute. At December 31, 2016 and 2015 diluted net loss per share is equivalent to basic net loss per share as the inclusion of any shares committed to be issued would be anti-dilutive. The following table sets forth the computation of basic and diluted Loss per Share: December 31, 2016 December 31, 2015 Numerator: Net Loss $ (2,760,125) $ (1,117,183) Net Loss from discontinued operations (1,587,017) (860,601) Net Loss from continuing operations (1,173,108) (256,582) Numerator for basic and diluted EPS income (loss) Available to common shareholders (2,760,125) (1,117,183) Numerator for basic and diluted EPS income (loss) From discontinued operations (1,587,017) (860,601) Numerator for basic and diluted EPS income (loss) From continuing operations (1,173,108) (256,582) Denominator: Denominator for basic EPS Weighted average shares 31,544,868 31,315,735 Denominator for diluted EPS adjusted Weighted-average shares and assumed Conversions 31,544,868 31,315,735 Basic and Diluted loss per common share $ (.09) $ (.04) Basic and Diluted loss per common share From discontinued Operations $ (.05) $ (.03) Basic and Diluted loss per common share From continuing Operations $ (.04) $ (.01) Concentration Of Credit Risks Financial instruments that potentially subject the company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corp. limits. At December 31, 2016 and 2015, there was no uninsured cash. Other financial instruments include accounts payable and amounts due on notes payable, the carrying value of these instruments represent their fair value. Recent Accounting Pronouncements The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. The pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operation | |
DISCONTINUED OPERATIONS | NOTE 4 DISCONTINUED OPERATIONS On December 31, 2016, the Company entered into and consummated the sale of 100% of its equity interests in its wholly-owned subsidiary, Westminster Pharmaceuticals, LLC, a Delaware limited liability company (Westminster). The purchase price was the transfer of $1,197,354 assets, the transfer of $(3,908,296) of liabilities, 1,500,000 warrants issued with a fair market value of $688,143 which was calculated based on Black-Scholes model, cancellation of $1,557,810 intercompany balance due to Trxade Group, Inc. and remaining debt discount of $267,381 being written off. The transaction resulted in a gain of $197,608. The schedule below summarizes the sale arrangement: Assets transferred $ 1,197,354 Liabilities transferred $ (3,908,296) Cancellation of intercompany payables $ 1,557,810 Write-off unamortized debt discount $ 267,381 Issuance of 1,500,000 warrants $ 688,143 Gain on sale of Westminster $ (197,608) Results of Discontinued Operations for the: Year Ended December 31, 2016 Year Ended December 31, 2015 Revenue $ 2,966,411 $ 2,087,499 Cost of Goods Sold $ 2,673,338 $ 1,746,050 Operating Expenses $ 2,077,698 $ 1,202,050 Loss from discontinued operations $ (1,784,625) $ (860,601) Assets and Liabilities of Discontinued Operations as of December 31, 2016 December 31, 2015 Cash $ 65,386 $ 781,423 Accounts Receivable 30,499 143,359 Inventory, net of $30,413 obsolescence reserve 641,525 284,718 Prepaid Assets and other advances 75,221 115,812 Fixed Assets, net of accumulated amortization 65,000 - Other Assets 319,723 178,210 Total Assets $ 1,197,354 $ 1,503,522 Intercompany payable $ 1,557,810 $ - Accounts payable 620,881 135,810 Accrued Liabilities 229,605 48,408 Convertible Note 1,500,000 708,388 Total Liabilities $ 3,908,296 $ 892,606 In July 2016, the purchase of ERP software was completed. The cost of the acquisition was $78,000. The depreciation for the current year is $13,000. Convertible Promissory Note Assumed Secured convertible promissory notes were issued in the aggregate amount of $950,000 in November and December 2015. The original term of the notes was three years. In June 2016, the note was extended to a four-year maturity for consideration of a senior secured position on the assets of the Company. Interest rate is a Royalty Payment which consists of a percentage of net Profit of certain transactions, payable within 45 days of the end of each quarter. Prior to maturity the notes may be converted for common stock at a conversion price of $2.50. The holders of the notes were granted a warrant to purchase 316,667 shares of common stock at a strike price of $0.01 and an expiration date of five years from date of issuance. In June, October and December 2016, an additional $250,000, $200,000 and $100,000, respectively, was issued under the secured convertible promissory notes. The holders of the notes were granted additional warrants (under the same terms above) to purchase 83,334, 66,667 and 33,334, respectively, shares of common stock at a strike price of $0.01. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815-40 and determined embedded conversion feature does not meet the definition of a liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable. The Company also uses the Black-Scholes pricing model to estimate the fair value of the warrants issued along with convertible notes on the date of grant. The Company accounted for relative fair value of the warrants issued and a total debt discount of $251,883 was recorded in 2015. An additional discount of $106,069 was recorded in 2016. As part of the purchase and sale agreement the $1,500,000 note was cancelled and the remaining debt discount of $267,381 was expensed immediately at December 31, 2016. |
Short-Term Debt And Related Par
Short-Term Debt And Related Parties Debt | 12 Months Ended |
Dec. 31, 2016 | |
Short-Term Debt And Related Parties Debt | |
Short-Term Debt And Related Parties Debt | NOTE 5 DEBT AND RELATED PARTIES DEBT Convertible Promissory Note Convertible promissory notes were issued in the aggregate amount of $200,000 in April and May 2015. The term of the notes was one year. Simple interest of 10% was payable at the maturity date of the note. Prior to maturity the notes may be converted for common stock at a conversion price of $1.50. The holders of the notes were granted warrants at one share of common stock for every $4.00 of the note principal amount, which totaled a warrant to purchase 50,000 shares of common stock. These warrants were issued at a strike price of $1.50 and an expiration date of five years from date of issuance. In April and May 2016, $50,000 of the $200,000 in convertible promissory notes (plus $5,000 in interest) was repaid. A one-year extension was executed on the remaining notes and the interest owed, totaling $15,000 became part of the adjusted principal of notes and the balance of $165,000 is due May 2017. In connection with the one-year extension of the maturity date of the outstanding notes, the holders of the notes were granted warrants at one common stock for $4.00 of the note amount, and warrants to purchase 41,250 shares of common stock were issued at a strike price of $1.50 and an expiration date of five years from date of issuance. The amendment of the note was considered a debt extinguishment and a loss on extinguishment of debt was booked in the amount of $37,579. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815-40 and determined that the embedded conversion feature does not meet the definition of a derivative liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and a total debt discount of $53,546 was recorded in 2015 and $0 as of the date of the debt modification. The Company also uses the Black-Scholes pricing model to estimate the fair value of the warrants issued along with convertible notes on the date of grant. The Company accounted for the relative fair value of the warrants issued and a total debt discount $53,546 and $0 was recorded in 2015 and 2016 respectively. During 2016, a debt discount of $ $35,697 was amortized. As of December 31, 2016, the short term convertible notes had a principal balance of $165,000 with an unamortized debt discount of $0. During 2015, debt discount of $71,396 was amortized. As of December 31, 2015, convertible note has a balance of $164,303, net of $35,697 unamortized debt discount. Promissory Note In May 2015, a promissory note was issued in the face amount of $250,000. The term of that note was one year. The note has an original issuance discount of $45,000, thus the cash proceeds from the promissory note is $205,000, During 2015, debt discount of $30,000 was amortized. As of December 31, 2015, promissory note has a balance of $235,000, net of $15,000 unamortized debt discount. In May 2016, the promissory note was renewed in the face amount of $250,000 and the term was extended an additional year. The note has an original issuance discount of $45,000 and this amount was paid in cash at the renewal. During 2016, a debt discount of $45,000 was amortized. As of December 31, 2016, the promissory note has a balance of $235,000 with an unamortized debt discount of $15,000. In October 2016, a promissory note was issued in the face amount of $12,159. The term of the note was 30 days. It was paid in November of 2016. In October 2016, a promissory note was issued in the face amount of $47,000. The term of the note was one year. Payments are made daily and $3,917 of principal was paid in 2016. At December 31, 2016 the balance was $43,083. In September 2016, a promissory note was issued for $189,000. The term of the note is 494 days. The debt discount was $39,000 thus the initial net proceeds were $150,000. At December 31, 2016, $139,602 was classified as short term with a discount of $25,306 and $10,739 was classified as long term with a discount of $152. Payments are made each weekday in the amount of $537. During 2016, $38,659 was paid off by cash, a debt discount of $13,542 was amortized. As of December 31, 2016, short term promissory note has a balance of $392,379, net of $40,306 unamortized debt discount and long term promissory note has a balance of $10,587 net of $152 unamortized debt discount Related Party Convertible Promissory Note In August 2016, $40,000 in promissory notes were issued to Mr. Shilpa Patel, a relative of Mr. Prashant Patel. The term of the note was one year. Simple interest of 10% is payable at the maturity date of the note. Prior to maturity the note may be converted for common stock at a conversion price of $1.50. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815-40 and determined that the embedded conversion feature does not meet the definition of a derivative liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and $0 was recorded as of the grant date. In September and October 2016, convertible promissory notes were issued in the aggregate amount of $211,725 to a related party, Mr. Nitel Patel, the brother of Mr. Prashant Patel. The term of the notes was one year. Simple interest of 10% is payable at the maturity date of the notes. Prior to maturity the notes may be converted for common stock at a conversion price of $.62. In connection with the notes, the holders of the notes were granted warrants to purchase 52,861 shares of common stock. These warrants were issued at a strike price of $.62 and an expiration date of five years from date of issuance. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815-40 and determined that the embedded conversion feature does not meet the definition of a derivative liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and a total debt discount of $65,390 was recorded as of the grant date. During 2016, a debt discount of $17,049 was amortized. As of December 31, 2016, the short term related party convertible notes had a principal balance of $251,725 with an unamortized debt discount of $48,341. Related Party Promissory Note In November 2016, Mr. Prashant Patel loaned the Company $10,000. The term of the loan is 90 days and is at zero percent interest. The balance at December 31, 2016 was $10,000. |
Stockholders'Equity
Stockholders'Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders'Equity | |
Stockholders'Equity | NOTE 6 STOCKHOLDERS EQUITY 2015 During fiscal year 2015, 166,667 warrants were exercised for common stock at $0.01 per share for total proceed of $1,667. 2016 Under a Private Offer Memorandum, 200,000 shares of common stock were issued for $300,000 cash, which included 100,000 shares in June 2016 and 100,000 shares in August. The common stock was sold at $1.50 per share. In connection with this common stock offering warrants to purchase 50,000 shares of common stock were issued at a strike price of $0.01 and an expiration date of five years. During fiscal year 2016, 25,000 warrants were exercised for common stock at $0.01 per share for total proceed of $240. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Warrants | |
Warrants | NOTE 7 - WARRANTS In 2015, from April to May, 50,000 warrants were issued along with convertible debt. In November and December 2015, 326,667 warrants were issued along with convertible debt. See Note 4 and 5. In 2016, 41,250 warrants were issued as the consideration of the debt amendment. See Note 5. In 2016, 236,196 warrants were issued along with convertible debt. See Note 4 and 5. In 2016, 25,000 warrants were exercised at the price of $240 and 50,000 warrants were issued along with stock subscription, refer to Note 6. In December 2016, 1,500,000 warrants were issued in connection to the sale of Westminster. The fair value of the warrants were calculated based on Black-Scholes model. See Note 4. The following table summarizes the assumptions used to estimate the fair value of warrants granted during the years ended December 31, 2016 and 2015: 2016 and 2015 Expected dividend yield 0% Weighted-average expected volatility 200% Weighted-average risk-free interest rate 0.48% - 1.36% Expected life of warrants 5 years The Companys outstanding and exercisable warrants as of December 31, 2016 and 2015 are presented below: Number Weighted Average Contractual Intrinsic Outstanding Exercise Price Life in Years Value Warrants Outstanding as of December 31, 2014 635,000 $0.69 4.15 $ 515,500 Warrants Granted 376,667 $0.21 5.00 - Warrants Forfeited - - - - Warrants Exercised (166,667) $0.01 - - Warrants Outstanding as of December 31, 2015 845,000 $0.61 3.77 $ 435,900 Warrants Granted 1,827,446 $0.06 5.0 - Warrants Forfeited - - - - Warrants Exercised (25,000) $0.01 - - Warrants Outstanding as of December 31, 2016 2,647,446 $0.24 4.24 $ 930,751 |
Options
Options | 12 Months Ended |
Dec. 31, 2016 | |
Options | |
Options | NOTE 8 - OPTIONS The company maintains a stock option plan under which certain employees and management are awarded option grants based on a combination of performance and tenure. All options may be exercised for a period up to four ½ years following the grant date, after which they expire. Options are vested up to 5 years from the grant date. The Board has authorized the use of 2,000,000 shares for option grants. Stock Options were granted during 2016 and 2015 to employees totaling, 189,000 and 740,000 respectfully. These options vest in up to 5 years and are granted with an exercise price of between $.75 - $1.60 and the expiration date up to five years after the last vesting period. The last options expire December 2026. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant. The assumptions employed in the calculation of the fair value of share-based compensation expense were calculated as follows for all years presented: Under the Black-Scholes option price model, fair value of the option granted is estimated at $1,013,620 at December 31, 2015. Under the Black-Scholes option price model, fair value of the option granted is estimated at $184,697 at December 31, 2016. During the year ended December 31, 2016, 300,750 options were forfeited due to employee resignation. The options were not vested and the option expense reversed was $139,954. During the year ended December 31, 2016, another 43,750 options expired. The following table summarizes the assumptions used to estimate the fair value of stock options granted during the Years Ended December 31, 2016 and 2015: 2016 and 2015 Expected dividend yield 0% Weighted-average expected volatility 200% Weighted-average risk-free interest rate 0.48% - 2.11% Expected life of options 2 - 7 years Total compensation cost related to stock options was $147,630 and $355,116 for the years ended December 31, 2016 and 2015. As of December 31, 2016, there was $163,687 of unrecognized compensation costs related to stock options, which is expected to be recognized over a weighted average period of 5.55 years. The following table represents stock option activity as of and for the two years ended December 31, 2016: Number of Options Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Outstanding at December 31, 2014 900,000 1.00 3.41 Exercisable at December 31, 2014 112,500 1.00 3.16 $ 56,250 Forfeited (420,000) 1.37 6.68 Granted 740,000 1.32 9.34 Expired (20,000) 1.00 2.08 Outstanding at December 31, 2015 1,200,000 1.07 5.19 Exercisable at December 31, 2015 332,000 1.04 3.34 $ 28,000 Forfeited (300,750) 1.03 7.87 Granted 189,000 1.00 9.25 Expired (43,750) 1.16 8.08 Outstanding at December 31, 2016 1,044,500 0.92 3.38 Exercisable at December 31, 2016 584,000 1.05 3.02 $ - |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes: | |
Income Tax Disclosure | NOTE 9 INCOME TAXES At December 31, 2016 and 2015 deferred tax assets consist of the following: December 31, 2016 December 31, 2015 Federal loss carry forwards $ 1,840,249 $ 990,169 Less: valuation allowance ( 1,840,249 ) (990,169) $ - $ - The Company has established a valuation allowance equal to the full amount of the deferred tax asset primarily due to uncertainty in the utilization of the net operating loss carry forwards. The estimated net operating loss carry forwards of approximately $5,257,856 begin to expire in 2033 for both federal and state purposes. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Related Parties | |
Related Parties | NOTE 10 RELATED PARTIES Rental Payments were made to Sansur Associates in December 31, 2015 of $1,000. Trxade Group, Inc. owed management wages to Mr. Prashant Patel and Mr. Suren Ajjarapu at December 31, 2016 of $132,012 and $76,971, respectively and at December 31, 2015 of $87,500 and $50,000, respectively. See related party debt activities in Note 5. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitment and Contingencies: | |
Commitments and Contingencies Disclosure | NOTE 11 Commitments and Contingencies The Company leases its premises in Odessa, Florida under an operating lease that expires in 2018. Future minimum rental payments under these non-cancelable operating leases as of December 31, 2016 are: 2017 $ 71,922 2018 $ 11,988 Total $ 83,910 On November 19, 2015, Family Medicine Pharmacy, LLC filed a class-action claim against Trxade Group, Inc. and its wholly owned subsidiary Westminster Pharmaceutical, LLC, Inc. (Family Medicine Pharmacy, LLC v. Trxade Group, Inc. and Westminster, Inc., Case No.: 1:15-CV-00590-KD-B, United States District Court, Southern District of Alabama, Mobile Division). Family Medicine has served Trxade for allegedly utilizing a junk fax advertising program. On June 6, 2016, we entered a binding memorandum of understanding with the plaintiff related to this litigation to resolve all claims in exchange for Trxade funding a settlement fund in the amount of $200,000. The final judgment and approval was entered into on March 17, 2017 for $200,000. An accrual of $200,000 is recorded on book as of December 31, 2016. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS In January 2017 Mr. Ajjarapu and Mr. Patel suspended their executive salaries of $165,000 and $125,000, respectively, for a period of four months. All of our executives are at-will employees or consultants. Each of Messrs. Ajjarapu and Patel are parties to an at-will executive employment agreement. In January 2017 under a Private Offer Memorandum, 250,000 shares of common stock were issued for $250,000 cash. The common stock was sold at $1.00 per share. In connection with this common stock offering warrants to purchase 87,500 shares of common stock were issued at a strike price of $0.01 and an expiration date of five years. In March 2017, 50,000 shares were issued for legal services. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies (Policies): | |
Use of Estimates, Policy | Use of Estimates In preparing these financial statements, management is required to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Reclassification, Policy | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Principal of Consolidation | Principle of Consolidation The Company financial statements include the accounts of Trxade Group, Inc., Trxade, Inc., and INTEGRA PHARMA SOLUTIONS, LLC (formerly Pinnacle Tek, Inc). All significant intercompany accounts and transactions have been eliminated. The Westminster Pharmaceuticals LLC division, which was sold in December 2016, is included in the consolidated financial statements as discontinued operations and is fully described in Note 4 - DISCONTINUED OPERATIONS. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents Cash in bank accounts are at risk to the extent that they exceed U.S. Federal Deposit Insurance Corporation insured amounts. All investments purchased with a maturity of three months or less are cash equivalents. Cash and cash equivalents are available on demand and are generally within of FDIC insurance limits for 2016. |
Accounts Receivable | Accounts Receivable The Companys receivables are from customers and are collected within 90 days. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. During the year ended December 31, 2016 and 2015, $150 of recovery of bad debt and $23,528 of bad debt expense was recognized, respectively. |
Inventory, Policy | Inventory - Inventories are stated at the lower of cost or market. Cost, is determined on a first-in, first-out basis. On a quarterly basis, we analyze our inventory levels and reserve for inventory that is expected to expire prior to being sold, inventory that has a cost basis in excess of its expected net realizable value, inventory in excess of expected sales requirements, or inventory that fails to meet commercial sale specifications. Expired inventory is disposed of and the related costs are written off to the reserve for inventory obsolescence. |
Beneficial Conversion Features | Beneficial Conversion Features The intrinsic value of a beneficial conversion feature inherent to a convertible note payable, which is not bifurcated and accounted for separately from the convertible note payable and may not be settled in cash upon conversion, is treated as a discount to the convertible note payable. This discount is amortized over the period from the date of issuance to the date the note is due using the effective interest method. If the note payable is retired prior to the end of its contractual term, the unamortized discount is expensed in the period of retirement to interest expense. In general, the beneficial conversion feature is measured by comparing the effective conversion price, after considering the relative value of detachable instruments included in the financing transaction, if any, to the fair value of the common shares at the commitment date to be received upon conversion. |
Derivative financial instruments | Derivative financial instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a Black-Scholes option pricing model, assuming maximum value, in accordance with ASC 815-15 Derivative and Hedging to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. |
Fair Value of Financial Instruments, Policy | Fair Value of Financial Instruments The Company measures its financial assets and liabilities in accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows: Level 1 Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities. Level 2 Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars. Level 3 Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in managements best estimate of fair value. |
Revenue Recognition, Policy | Revenue Recognition In general the Company accounts for revenue recognition in accordance with ASC 605, Revenue Recognition. Trxade, Inc. generates net fee income as a percentage of the total transactions between the buyer (independent pharmacies) and the seller (wholesaler) of pharmaceutical drugs on the Trxade web-based platform. Revenue is recognized when four steps are met : (1) the price is fixed and determined as the buyer orders the drugs from the wholesaler. (2) The wholesaler has signed a contract with Trxade, Inc. which recognizes that an arrangement exists. (3) The wholesaler delivers the drugs purchased to the buyer, products are delivered. (4) The collectability is reasonably assured by the wholesaler through prior credit checks and payment experience. In 2016, three customers each generated more than 10% of total revenue. Westminster Pharmaceutical LLC generated gross revenues from the sale of pharmaceutical drugs to independent pharmacies or wholesalers. The revenue recognized when four steps are met : (1) the price is fixed and determinable at the time of the transaction with an invoice. (2) The invoice is also persuasive evidence that an arrangement exists. (3) The products are delivered to the buyer. (4) The collectability of the resulting receivable is reasonably assured by credit check prior to the transaction and experience with the customer. The Westminster revenue is presented as discontinued operations and is fully described in Note 4 - DISCONTINUED OPERATIONS. |
Stock-based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the provision of ASC 505, Equity Based Payments to Non-Employees (ASC 505), Share Based Payments to Non-Employees, and ASC 505 which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of stock-based compensation is subject to periodic adjustment as the underlying instruments vest. The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. |
Income Tax, Policy | Income Taxes The Company accounts for income taxes utilizing ASC 740, Income Taxes (SFAS No. 109). 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. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax law. The effects of future changes in tax rates are not included in the measurement. The Company recognizes the amount of taxes payable or refundable for the current year and recognizes deferred tax liabilities and assets for the expected future tax consequences of events and transactions that have been recognized in the Companys financial statements or tax returns. The Company currently has substantial net operating loss carry forwards. The Company has recorded a 100% valuation allowance against net deferred tax assets due to uncertainty of their ultimate realization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. |
Income (loss) Per Share | Income (loss) Per Share Basic net loss per common share is computed by dividing net loss available to commons stockholders by the weighted average number of common shares outstanding. Diluted net loss per common share is computed similar to basic net loss per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilute. At December 31, 2016 and 2015 diluted net loss per share is equivalent to basic net loss per share as the inclusion of any shares committed to be issued would be anti-dilutive. The following table sets forth the computation of basic and diluted Loss per Share: December 31, 2016 December 31, 2015 Numerator: Net Loss $ (2,760,125) $ (1,117,183) Net Loss from discontinued operations (1,587,017) (860,601) Net Loss from continuing operations (1,173,108) (256,582) Numerator for basic and diluted EPS income (loss) Available to common shareholders (2,760,125) (1,117,183) Numerator for basic and diluted EPS income (loss) From discontinued operations (1,587,017) (860,601) Numerator for basic and diluted EPS income (loss) From continuing operations (1,173,108) (256,582) Denominator: Denominator for basic EPS Weighted average shares 31,544,868 31,315,735 Denominator for diluted EPS adjusted Weighted-average shares and assumed Conversions 31,544,868 31,315,735 Basic and Diluted loss per common share $ (.09) $ (.04) Basic and Diluted loss per common share From discontinued Operations $ (.05) $ (.03) Basic and Diluted loss per common share From continuing Operations $ (.04) $ (.01) |
Concentration Of Credit Risks | Concentration Of Credit Risks Financial instruments that potentially subject the company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corp. limits. At December 31, 2016 and 2015, there was no uninsured cash. Other financial instruments include accounts payable and amounts due on notes payable, the carrying value of these instruments represent their fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has implemented all new relevant accounting pronouncements that are in effect through the date of these financial statements. The pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial position or results of operations. |
Computation of basic and dilute
Computation of basic and diluted Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share: | |
Schedule of computation of basic and diluted Loss per Share | The following table sets forth the computation of basic and diluted Loss per Share: December 31, 2016 December 31, 2015 Numerator: Net Loss $ (2,760,125) $ (1,117,183) Net Loss from discontinued operations (1,587,017) (860,601) Net Loss from continuing operations (1,173,108) (256,582) Numerator for basic and diluted EPS income (loss) Available to common shareholders (2,760,125) (1,117,183) Numerator for basic and diluted EPS income (loss) From discontinued operations (1,587,017) (860,601) Numerator for basic and diluted EPS income (loss) From continuing operations (1,173,108) (256,582) Denominator: Denominator for basic EPS Weighted average shares 31,544,868 31,315,735 Denominator for diluted EPS adjusted Weighted-average shares and assumed Conversions 31,544,868 31,315,735 Basic and Diluted loss per common share $ (.09) $ (.04) Basic and Diluted loss per common share From discontinued Operations $ (.05) $ (.03) Basic and Diluted loss per common share From continuing Operations $ (.04) $ (.01) |
Schedule of Discontinued Operat
Schedule of Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Discontinued Operations | |
Summarizes the sale arrangement | The transaction resulted in a gain of $197,608. The schedule below summarizes the sale arrangement: Assets transferred $ 1,197,354 Liabilities transferred $ (3,908,296) Cancellation of intercompany payables $ 1,557,810 Write-off unamortized debt discount $ 267,381 Issuance of 1,500,000 warrants $ 688,143 Gain on sale of Westminster $ (197,608) |
Results of Discontinued Operations | Results of Discontinued Operations for the: Year Ended December 31, 2016 Year Ended December 31, 2015 Revenue $ 2,966,411 $ 2,087,499 Cost of Goods Sold $ 2,673,338 $ 1,746,050 Operating Expenses $ 2,077,698 $ 1,202,050 Loss from discontinued operations $ (1,784,625) $ (860,601) |
Assets and Liabilities of Discontinued Operations | Assets and Liabilities of Discontinued Operations as of December 31, 2016 December 31, 2015 Cash $ 65,386 $ 781,423 Accounts Receivable 30,499 143,359 Inventory, net of $30,413 obsolescence reserve 641,525 284,718 Prepaid Assets and other advances 75,221 115,812 Fixed Assets, net of accumulated amortization 65,000 - Other Assets 319,723 178,210 Total Assets $ 1,197,354 $ 1,503,522 Intercompany payable $ 1,557,810 $ - Accounts payable 620,881 135,810 Accrued Liabilities 229,605 48,408 Convertible Note 1,500,000 708,388 Total Liabilities $ 3,908,296 $ 892,606 |
Schedule of Warrants (Tables)
Schedule of Warrants (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of warrants | |
Summarizes the assumptions used to estimate the fair value of warrants | The following table summarizes the assumptions used to estimate the fair value of warrants granted during the years ended December 31, 2016 and 2015: 2016 and 2015 Expected dividend yield 0% Weighted-average expected volatility 200% Weighted-average risk-free interest rate 0.48% - 1.36% Expected life of warrants 5 years |
Schedule of outstanding and exercisable warrants | The Companys outstanding and exercisable warrants as of December 31, 2016 and 2015 are presented below: Number Weighted Average Contractual Intrinsic Outstanding Exercise Price Life in Years Value Warrants Outstanding as of December 31, 2014 635,000 $0.69 4.15 $ 515,500 Warrants Granted 376,667 $0.21 5.00 - Warrants Forfeited - - - - Warrants Exercised (166,667) $0.01 - - Warrants Outstanding as of December 31, 2015 845,000 $0.61 3.77 $ 435,900 Warrants Granted 1,827,446 $0.06 5.0 - Warrants Forfeited - - - - Warrants Exercised (25,000) $0.01 - - Warrants Outstanding as of December 31, 2016 2,647,446 $0.24 4.24 $ 930,751 |
Schedule of Stock Options, Acti
Schedule of Stock Options, Activity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Stock Options, Activity | |
Schedule of Stock Options, Activity | The following table summarizes the assumptions used to estimate the fair value of stock options granted during the Years Ended December 31, 2016 and 2015: 2016 and 2015 Expected dividend yield 0% Weighted-average expected volatility 200% Weighted-average risk-free interest rate 0.48% - 2.11% Expected life of options 2 - 7 years |
Summarizes the assumptions used to estimate the fair value of stock options granted | The following table represents stock option activity as of and for the two years ended December 31, 2016: Number of Options Weighted Average Exercise Price Contractual Life in Years Intrinsic Value Outstanding at December 31, 2014 900,000 1.00 3.41 Exercisable at December 31, 2014 112,500 1.00 3.16 $ 56,250 Forfeited (420,000) 1.37 6.68 Granted 740,000 1.32 9.34 Expired (20,000) 1.00 2.08 Outstanding at December 31, 2015 1,200,000 1.07 5.19 Exercisable at December 31, 2015 332,000 1.04 3.34 $ 28,000 Forfeited (300,750) 1.03 7.87 Granted 189,000 1.00 9.25 Expired (43,750) 1.16 8.08 Outstanding at December 31, 2016 1,044,500 0.92 3.38 Exercisable at December 31, 2016 584,000 1.05 3.02 $ - |
Schedule of Income Taxes (Table
Schedule of Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Income Taxes (Tables): | |
Schedule of Income Taxes (Tables): | At December 31, 2016 and 2015 deferred tax assets consist of the following: December 31, 2016 December 31, 2015 Federal loss carry forwards $ 1,840,249 $ 990,169 Less: valuation allowance ( 1,840,249 ) (990,169) $ - $ - |
Schedule of commitments and con
Schedule of commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of commitments and contingencies (Tables): | |
Schedule of commitments and contingencies (Tables) | Future minimum rental payments under these non-cancelable operating leases as of December 31, 2016 are: 2017 $ 71,922 2018 $ 11,988 Total $ 83,910 |
Organization (Details)
Organization (Details) | May 31, 2013 |
Organization Details | |
Company owns Trxade Inc and ShopRX, Ltd | 100.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable Details | ||
Bad debt expense | $ 0 | $ 23,528 |
Computation of basic and dilu28
Computation of basic and diluted Loss per Share (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Numerator: | ||
Net Loss | $ (2,760,125) | $ (1,117,183) |
Net Loss from discontinued operations | (1,587,017) | (860,601) |
Net Loss from continuing operations | (1,173,108) | (256,582) |
Numerator for basic and diluted EPS - income (loss) Available to common shareholders | (2,760,125) | (1,117,183) |
Numerator for basic and diluted EPS - income (loss) From discontinued operations | (1,587,017) | (860,601) |
Numerator for basic and diluted EPS - income (loss) From continuing operations | $ (1,173,108) | $ (256,582) |
Denominator: | ||
Denominator for basic EPS - Weighted average shares | 31,544,868 | 31,315,735 |
Denominator for diluted EPS - adjusted Weighted-average shares and assumed Conversions | 31,544,868 | 31,315,735 |
Basic and Diluted loss per common share | $ (0.09) | $ (0.04) |
Basic and Diluted loss per common share From discontinued Operations | (0.05) | (0.03) |
Basic and Diluted loss per common share From continuing Operations | $ (0.04) | $ (0.01) |
Summarizes the sale arrangement
Summarizes the sale arrangement (Details) | Dec. 31, 2016USD ($) |
Summarizes the sale arrangement Details | |
Assets transferred | $ 1,197,354 |
Liabilities transferred | (3,908,296) |
Cancellation of intercompany payables | 1,557,810 |
Write-off unamortized debt discount | 267,381 |
Issuance of 1,500,000 warrants | 688,143 |
Gain on sale of Westminster | $ (197,608) |
Results of Discontinued Operati
Results of Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Results of Discontinued Operations Details | ||
Revenue | $ 2,966,411 | $ 2,087,499 |
Cost of Goods Sold | 2,673,338 | 1,746,050 |
Operating Expenses | 2,077,698 | 1,202,050 |
Loss from discontinued operations | $ (1,784,625) | $ (860,601) |
Assets and Liabilities of Disco
Assets and Liabilities of Discontinued Operations (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets and Liabilities of Discontinued Operations Details | ||
Cash | $ 65,386 | $ 781,423 |
Accounts Receivable | 30,499 | 143,359 |
Inventory, net of $30,413 obsolescence reserve | 641,525 | 284,718 |
Prepaid Assets and other advances | 75,221 | 115,812 |
Fixed Assets, net of accumulated amortization | 65,000 | |
Other Assets | 319,723 | 178,210 |
Total Assets | 1,197,354 | 1,503,522 |
Intercompany payable | 1,557,810 | |
Accounts payable | 620,881 | 135,810 |
Accrued Liabilities | 229,605 | 48,408 |
Convertible Note | 1,500,000 | 708,388 |
Total Liabilities | $ 3,908,296 | $ 892,606 |
Assets and Liabilities of Dis32
Assets and Liabilities of Discontinued Operations Parentheticals (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets and Liabilities of Discontinued Operations Parentheticals Details | ||
Inventory obsolescence reserve | $ 30,413 | $ 30,413 |
Cost of the acquisition | 78,000 | |
Depreciation for the current year | $ 13,000 |
Convertible Promissory Note Ass
Convertible Promissory Note Assumed (Details) | Dec. 31, 2016USD ($)$ / sharesshares | Oct. 31, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Nov. 30, 2015USD ($)$ / sharesshares |
Convertible Promissory Note Assumed Details | |||||
Secured convertible promissory notes were issued | $ 500,000 | $ 450,000 | |||
Original term of the notes in years | 3 | 3 | |||
Notes may be converted for common stock at a conversion price of | 2.5 | 2.5 | |||
Notes were granted a warrant to purchase shares of common stock | shares | 116,667 | 160,000 | |||
Notes were granted a warrant to purchase shares of common stock at a strike price | $ / shares | $ 0.01 | $ 0.01 | |||
An additional was issued under the secured convertible promissory notes | $ 100,000 | $ 200,000 | $ 250,000 | ||
Notes were granted additional warrants to purchase shares of common stock | shares | 33,334 | 66,667 | 83,334 | ||
Notes were granted additional warrants to purchase shares of common stock at a strike price | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Total debt discount was recorded | $ 106,069 | $ 251,883 | |||
As part of the purchase and sale agreement the note was cancelled | 1,500,000 | ||||
Remaining debt discount was expensed immediately | $ 267,381 |
Debt and Related Parties Debt (
Debt and Related Parties Debt (Details) | Dec. 31, 2016USD ($) | May 31, 2016USD ($)$ / sharesshares | Apr. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | May 31, 2015USD ($)$ / sharesshares | Apr. 30, 2015USD ($) |
Debt and Related Parties Debt Details | ||||||
Convertible promissory notes were issued | $ 100,000 | $ 100,000 | ||||
Term notes in year | 1 | 1 | ||||
Simple interest payable | 10.00% | 10.00% | ||||
Common stock at a conversion price | $ / shares | $ 1.50 | $ 1.50 | ||||
Notes were granted warrants at one common stock | 4 | 4 | ||||
Warrants were issued | shares | 25,000 | 25,000 | ||||
Warrants were issued at a strike price | $ / shares | $ 1.50 | $ 1.50 | ||||
Convertible promissory notes was repaid | $ 150,000 | $ 50,000 | ||||
Remaining notes and the interest owed, totaling | 15,000 | |||||
Adjusted principal of notes and the balance | $ 165,000 | |||||
Warrants to purchase shares of common stock | shares | 41,250 | |||||
Warrants to purchase shares of common stock at a strike price | $ / shares | $ 1.50 | |||||
Debt extinguishment and a loss on extinguishment of debt was booked | $ 37,579 | |||||
Convertible note payable and a total debt discount of was recorded | $ 53,546 | |||||
Fair value of the warrants issued and a total debt discount was recorded | $ 0 | |||||
Debt discount was amortized | 35,697 | 71,396 | ||||
Short term convertible notes had a principal balance | 165,000 | 164,303 | ||||
Unamortized debt discount | $ 0 | $ 35,697 |
Promissory Note (Details)
Promissory Note (Details) | Dec. 31, 2016USD ($) | Oct. 31, 2016USD ($) | Sep. 30, 2016USD ($) | May 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 31, 2015USD ($) |
Promissory Note Details | ||||||
Promissory note was issued in the face amount | $ 12,159 | $ 250,000 | ||||
The term of that note in year | 1 | 1 | ||||
Note has an original issuance discount | $ 45,000 | |||||
Cash proceeds from the promissory note | $ 205,000 | |||||
Debt discount was amortized | $ 45,000 | $ 39,000 | $ 30,000 | |||
Promissory note has a balance | 235,000 | 235,000 | ||||
Net of unamortized debt discount | 15,000 | $ 15,000 | ||||
Promissory note was renewed in the face amount | $ 250,000 | |||||
Note has an original issuance discount | $ 45,000 | |||||
Promissory note was issued in the face amount of | $ 47,000 | |||||
Payments are made daily and of principal | 3,917 | |||||
Balance of promissory note | $ 43,083 | |||||
Promissory note was issued | $ 189,000 | |||||
Term of the note in days | 494 | |||||
Initial net proceeds | $ 150,000 | |||||
Cassified as short term with a discount | 25,306 | |||||
Classified as long term with a discount | 152 | |||||
Payments are made each weekday in the amount | 537 | |||||
Note paid off by cash | 38,659 | |||||
Debt discount of was amortized during 2016 | $ 13,542 | |||||
Short term promissory note has a balance | 392,379 | |||||
Net of unamortized debt discount and long term promissory note | 40,306 | |||||
Long term promissory note has a balance | 10,587 | |||||
Long term promissory note Net of unamortized debt discount | $ 152 |
Related Party Convertible Promi
Related Party Convertible Promissory Note (Details) - USD ($) | Dec. 31, 2016 | Nov. 30, 2016 | Oct. 31, 2016 | Sep. 30, 2016 | Aug. 31, 2016 |
Related Party Convertible Promissory Note Details | |||||
Promissory notes were issued to Mr. Shilpa Patel | $ 40,000 | ||||
Simple interest is payable at the maturity date of the note | 10.00% | 10.00% | 10.00% | ||
Note may be converted for common stock at a conversion price | $ 0.62 | $ 0.62 | $ 1.50 | ||
Convertible promissory notes were issued in the aggregate amount | $ 61,725 | $ 150,000 | |||
Term of the notes | 1 | 1 | 1 | ||
Notes were granted warrants to purchase shares of common stock | $ 15,361 | $ 37,500 | |||
Warrants were issued at a strike price | $ 0.62 | $ 0.62 | |||
Expiration date of years from date of issuance | 5 | 5 | |||
Convertible note payable and a total debt discount was recorded as of the grant date | $ 24,417 | $ 40,973 | |||
Debt discount was amortized | $ 17,049 | ||||
Short term related party convertible notes had a principal balance | 251,725 | ||||
An unamortized debt discount | $ 48,341 | ||||
Related Party Promissory Note | |||||
Mr. Prashant Patel loaned the Company | $ 10,000 | ||||
Term of the notes in days | 90 | ||||
Balance of note | $ 10,000 |
Capital Stock Transactions (Det
Capital Stock Transactions (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Capital Stock Transactions Details | ||
Warrants were exercised for common stock | 166,667 | |
Warrants were exercised for common stock per share | $ 0.01 | |
Warrants were exercised for common stock total proceed | 1,667 | |
Shares of common stock were issued | 200,000 | |
Shares of common stock were issued for cash | $ 300,000 | |
Common stock were issued shares in June | 100,000 | |
Common stock were issued shares in August | 100,000 | |
Common stock was sold at per share | $ 1.50 | |
Warrants to purchase shares of common stock | 50,000 | |
Warrants to purchase shares of common stock were issued at a strike price | $ 0.01 | |
Warrants were exercised for common stock | 25,000 | |
Warrants were exercised for common stock per share | $ 0.01 | |
Warrants were exercised for common stock for total proceed | $ 240 |
Warrants (Details)
Warrants (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Warrants Details | ||
Warrants were issued along with convertible debt | 236,196 | 50,000 |
Warrants were issued along with convertible debt | 326,667 | |
Warrants were issued as the consideration of the debt amendment | $ 41,250 | |
Warrants were exercised | 25,000 | |
Warrants were exercised at price | 240 | |
Warrants were issued along with stock subscription | 50,000 | |
Warrants were issued in connection to the sale of Westminster | $ 1,500,000 |
Assumptions of fair value of wa
Assumptions of fair value of warrants granted (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions of fair value of warrants granted | ||
Expected dividend yield | 0.00% | 0.00% |
Weighted-average expected volatility | 200.00% | 200.00% |
Weighted-average risk-free interest rate Maximum | 1.36% | 1.36% |
Weighted-average risk-free interest rate Minimum | 0.48% | 0.48% |
Expected life of warrants | 5 | 5 |
Outstanding and Exercisable War
Outstanding and Exercisable Warrants {Stockholders Equity} (Details) | 12 Months Ended |
Dec. 31, 2016shares | |
Number Outstanding | |
Warrants Outstanding 2014 | 635,000 |
Warrants Granted 2014 | 376,667 |
Warrants Forfeited 2014 | 0 |
Warrants Exercised 2014 | (166,667) |
Warrants Outstanding 2015 | 845,000 |
Warrants Granted 2015 | 1,827,446 |
Warrants Forfeited 2015 | 0 |
Warrants Exercised 2015 | (25,000) |
Warrants Outstanding 2016 | 2,647,446 |
Weighted Average Exercise Price | |
Warrants Outstanding 2014 | 0.69 |
Warrants Granted 2014 | 0.21 |
Warrants Exercised 2014 | 0.01 |
Warrants Outstanding 2015 | 0.61 |
Warrants Granted 2015 | 0.06 |
Warrants Exercised 2015 | 0.01 |
Warrants Outstanding 2016 | 0.24 |
Contractual Life in Years | |
Warrants Outstanding 2014 | 4.15 |
Warrants Granted 2014 | 5 |
Warrants Outstanding 2015 | 3.77 |
Warrants Granted 2015 | 5 |
Warrants Outstanding 2016 | 4.24 |
Intrinsic Value | |
Warrants Outstanding 2014 | 515,500 |
Warrants Outstanding 2015 | 435,900 |
Warrants Outstanding 2016 | 930,751 |
Options (Details)
Options (Details) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015shares |
Options Details | ||
Options exercised in years | 4.5 | |
Options vested in years | 5 | |
Shares for option grants | 2,000,000 | |
Stock Options were granted to employees | 189,000 | 740,000 |
Minimum options exercise price | $ / shares | $ 0.75 | |
Maximum options exercise price | $ / shares | $ 1.60 | |
Fair value of the option granted | 184,697 | 1,013,620 |
Options were forfeited | 300,750 | |
Option expense reversed | $ | $ 139,954 | |
Options expired | 43,750 | |
Compensation | ||
Total compensation cost related to stock options | 147,630 | 355,116 |
Unrecognized compensation costs | 163,687 | |
Weighted average period in years | 5.55 |
Assumptions used to estimate th
Assumptions used to estimate the fair value of stock options granted (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions used to estimate the fair value of stock options granted: | ||
Expected dividend yield | 0.00% | 0.00% |
Weighted-average expected volatility | 200.00% | 200.00% |
Minimum Weighted-average risk-free interest rate | 0.48% | 0.48% |
Maximum Weighted-average risk-free interest rate | 2.11% | 2.11% |
Expected life of options in years Minimum | 2 | 2 |
Expected life of options in years Maximum | 7 | 7 |
Stock option activity {Stockhol
Stock option activity {Stockholders Equity} (Details) | 12 Months Ended |
Dec. 31, 2016shares | |
Number of Options | |
Option Outstanding 2014 | 900,000 |
Option Exercisable 2014 | 112,500 |
Option Forfeited 2014 | (420,000) |
Option Granted 2014 | 740,000 |
Option Exercised 2014 | (20,000) |
Option Outstanding 2015 | 1,200,000 |
Option Exercisable 2015 | 332,000 |
Option Forfeited 2015 | (300,750) |
Option Granted 2015 | 189,000 |
Option Expired 2015 | (43,750) |
Option Outstanding 2016 | 1,044,500 |
Option Exercisable 2016 | 584,000 |
Weighted Average Exercise Price | |
Option Outstanding 2014 | 1 |
Option Exercisable 2014 | 1 |
Option Forfeited 2014 | 1.37 |
Option Granted 2014 | 1.32 |
Option Exercised 2014 | 1 |
Option Outstanding 2015 | 1.07 |
Option Exercisable 2015 | 1.04 |
Option Forfeited 2015 | 1.03 |
Option Granted 2015 | 1 |
Option Expired 2015 | 1.16 |
Option Outstanding 2016 | 0.92 |
Option Exercisable 2016 | 1.05 |
Contractual Life in Years | |
Option Outstanding 2014 | 3.41 |
Option Exercisable 2014 | 3.16 |
Option Forfeited 2014 | 6.68 |
Option Granted 2014 | 9.34 |
Option Exercised 2014 | 2.08 |
Option Outstanding 2015 | 5.19 |
Option Exercisable 2015 | 3.34 |
Option Forfeited 2015 | 7.87 |
Option Granted 2015 | 9.25 |
Option Expired 2015 | 8.08 |
Option Outstanding 2016 | 3.38 |
Option Exercisable 2016 | 3.02 |
Intrinsic Value | |
Option Exercisable 2014 | 56,250 |
Option Exercisable 2015 | 28,000 |
Deferred Tax Assets (Details)
Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
Federal loss carry forwards | $ 1,840,249 | $ 990,169 |
Less: valuation allowance | (1,840,249) | $ (990,169) |
Total Deferred Tax Assets | 0 | |
Net operating loss carry forwards | $ 5,257,856 |
Related Parties (Details)
Related Parties (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Related Parties Details | ||
Management wages Mr. Prashant Patel | $ 132,012 | $ 87,500 |
Rental payments to Sansur Associates | 0 | 1,000 |
Management wages Mr. Suren Ajjarapu | $ 76,971 | $ 50,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Dec. 31, 2016USD ($) |
Commitments and Contingencies Details | |
operating leases 2017 | $ 71,922 |
operating leases 2018 | 11,988 |
operating leases Total | $ 83,910 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) | Dec. 31, 2016USD ($) |
Commitments and Contingencies Narrative Details | |
Trxade funding a settlement fund | $ 200,000 |
Final judgment and approval | 200,000 |
Accrual is recorded on book | $ 200,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 31, 2017 | Jan. 31, 2017 |
Subsequent Events Details | ||
Mr. Ajjarapu suspended their executive salaries for a period of four months | $ 165,000 | |
Mr. Patel suspended their executive salaries for a period of four months | $ 125,000 | |
Under a Private Offer Memorandum,shares of common stock were issued | 250,000 | |
Under a Private Offer Memorandum,shares of common stock were issued for cash | $ 250,000 | |
Common stock was sold per share | $ 1 | |
Warrants to purchase shares of common stock | 87,500 | |
Warrants to purchase shares of common stock were issued at a strike price | $ 0.01 | |
Shares were issued for legal services | 50,000 |