TRxADE HEALTH, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TRAX-A Group's third quarter 2020 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. This conference is being recorded today, October 26, 2020, and earnings press release accompanying this conference call was issued at the close of the market today. The quarterly report, which includes the company results of operations for the quarter, ended September 30, 2020. was filed with the SEC today. On our call today is TrackSafe Group's founder, chairman, and chief executive officer, Surin Bajarapu, and Howard Doss, his chief financial officer. The replay of this call and webcast will be available for the next 30 days on the company's website under the NASDAQ MEVS link. The company's website also includes more supporting industry information. At this time, I'd like to turn the call over to Howard Doss, the company's chief financial officer. Howard, The floor is yours.

Thank you, Operator, and thank you for joining us today. I'd like to welcome you to our third quarter 2020 financial results conference call. Our press release announcing our third quarter financial results was issued after the close of market today and is posted on our website. We have also published a copy of the presentation that accompanies this call and webcast on our website and furnished such press release and presentation to the SEC on Form 8-K. Statements made on this call and webcast include forward-looking statements. These statements include, but are not limited to, our outlook for the company and statements that estimate or project future results of operations or the performance of the company, including the potential impact of COVID-19 on the company's business and results of operations. These statements speak only as of the date hereof, and the company assumes no obligation to revise any forward-looking statements that may be made today in today's press release, call, or webcast. These statements do not guarantee future performance and are subject to risks, uncertainties, and assumptions. Please refer to the press release and the risk factors and documents we file with the Securities and Exchange Commission, including our most recent quarterly report on Form 10Q, for information on risks, uncertainties, and assumptions that may cause actual results to differ materially from those set forth in such statements. In addition, today's call and webcast, we discussed non-GAAP financial measures, which we believe are useful as supplemental measures of TRAX-H performance. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP results in our earnings press release. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of our fiscal year 2019. At this time, I'd like to turn the call over to Suren Ajarpu, the company's chief executive officer. Suren, the floor is yours.

Thank you, Howard. Before we walk through our financial and operational results for the quarter, for those of you new to the company, I'd like to walk you through who we are, how we are revolutionizing the way independent pharmacies procure drugs. Prior to the launch of our company, obtaining drug codes as an independent pharmacy was an extremely laborious and time-efficient process with no insight or transparency into a fair market price or what others are paying for the same drug. Traditional wholesalers would provide unfavorable payment terms, slow delivery, create a difficult conundrum for the opportunity for approximately 22,000 independent pharmacies nationwide. We identified this market inefficiency as well as the incredible potential in these independent pharmacies, which together maintain approximately 78 billion in annual purchasing power and proceeded to launch TrackSafe. We design, own, and operate a business-to-business, web-based market platform, bringing together the nation's independent pharmacies with accredited national pharmaceutical supplies to provide a uniquely efficient and transparent buying and selling process. Our platform lets independent pharmacies know that they are receiving a fair price from competing suppliers in payment terms, and often with next-day delivery. We believe this radical price transparency and economy of scale and competition among suppliers leads up to a 10% reduction in pharmacies' total annual drug purchase cost, with a drug-level savings of up to 90% on certain pharmaceutical products. Our platform saves pharmacies from having to manually compare prices across distributors saving hundreds of hours of unnecessary labor annually and eliminating negative reimbursement or fulfilling a prescription at a loss. Our revenue model is simple. We charge a 3% to 4% transaction fee based on the value of our drug purchases transacted on our platform, similar to a PayPal or Visa-like model. To date, we've seen incredible success in garnering attention from independent pharmacies nationwide validating our business model. We currently have around 11,800 pharmacies on our platform, so presenting over 50% market penetration into the 22,000 independent pharmacies nationwide. Our growth drivers for the TrackSafe platform are twofold. One, increasing the average purchases per pharmacy so that pharmacies transact an increasingly high percentage of their total drug purchases to the TrackSafe platform. Second, continuing to expand our market penetration, adding new independent pharmacies to our network. Now proceeding to our third quarter 2020 financial and operational results, we continue to see strong revenue and net income growth compared to the same quarter in 2019, while returning to profitability and continuing to grow average spend for pharmacy on our proprietary platforms. We continue to expand our affiliated services offering during Q3 with our telemedicine subsidiary Bonham Health launching Bonham Plus, a B2B platform that bundles telehealth, a COVID-19 assessment tool, and a personal protective equipment purchasing tool through a secure mobile dashboard for corporate clients. We're excited about this platform as it involves fundamental trust problem that impacts employer safety and security policies to more effectively combat COVID-19 in the workplace. Bonham also announced a prescription savings partnership with Single Care, a free prescription savings service. This partnership enhances Bonham's enterprise telehealth solutions with prescription discounts offered to national, regional, or local pharmacies to promote the benefits to uninsured patients and underserved communities. On the capital market front, we were proactive throughout the third quarter attending three investor conferences, the LD500 Virtual Conference, the 2020 Collier Institutional Investor Conference, and H.C. Wainwright's 22nd Annual Global Investment Conference, all with the goal of enhancing broader investments investor awareness of our ongoing company. I'd like to now turn the call over to our Chief Financial Officer, Howard Doss, to walk through some key financial highlights from the third quarter of 2020.