TRxADE Health Inc. (NASDAQ: MEDS) announced today that it has regained compliance with Nasdaq listing rules following the filing of its Quarterly Report on Form 10-Q for the period ending March 31, 2024. The company reported a net income of over $21 million for this period, driven largely by the sale of most of the assets of its wholly-owned subsidiary, Trxade, Inc.
On May 23, 2024, TRxADE Health received a standard noncompliance notice from the Nasdaq Listing Qualifications Department. This notice indicated that the company had failed to timely file its Form 10-Q for the first quarter of 2024, thus falling out of compliance with Nasdaq Listing Rule 5250(c)(1). This rule mandates the timely submission of all required periodic financial reports to the Securities and Exchange Commission. TRxADE Health believes that with the recent filing of its Form 10-Q, it has now met the compliance requirements of Nasdaq Listing Rule 5250(c)(1).
The substantial net income reported in Q1 2024 is attributed to the asset sale agreement made on February 16, 2024. TRxADE Health, in collaboration with Trxade, Inc., and Micro Merchant Systems, Inc. (MMS), finalized an asset purchase agreement (APA). According to the APA, MMS agreed to purchase nearly all of the assets of Trxade, Inc. for cash. The closing of this transaction occurred on the same day. Trxade, Inc. operated a web-based marketplace facilitating trade among healthcare buyers and sellers of pharmaceuticals, accessories, and services. The sale fetched $22,660,182 at closing, and TRxADE Health received an additional payment of $7,500,000 in May 2024. This transaction was a significant contributor to the company’s positive net income for the first quarter.
Source: IBN
