TRxADE HEALTH, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TRAXAID Health's second quarter 2021 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. The earnings press release accompanying this conference call was issued at the close of the market today. The quarterly report, which includes additional information regarding the company's results of operations for the quarter, ended June 30th, 2021, was filed with the SEC earlier today. On our call today is TraxAid Health's founder, chairman and chief executive officer, Sharan Jarapu, 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 Meds 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 second quarter 2021 financial results conference call. Our press release announcing our second quarter financial results was issued after the close of the market today and is posted on our website. We've also furnished such press release to the SEC on Form 8K. Statements made on this call and webcasts 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 continued 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 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 annual report on Form 10-K and the subsequently filed quarterly reports on Form 10-Q, including the Form 10-Q for the second quarter. For information on risks and uncertainties and assumptions that may cause actual results to differ, materially from those set forth in such statements. In addition, during today's call and webcast, we will discuss non-GAAP financial measures, which we believe are useful to supplement 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 gap 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 fiscal 2020. At this time, I'd like to turn the call over to Surin Ajarapu, the company's chief executive officer. Surin, the floor is yours.

Thank you, Howard. 2021 has been a year of foundation building. as we continue to drive forward telehealth innovation, supporting the core strength of our pharmaceutical exchange platform. Despite the ongoing challenges to the pharmaceutical supply chain posted by the COVID-19 pandemic, we were able to drive strong incremental margin growth while working to position the company for future success in its complementary telehealth business segments. In addition, our exciting suite of affiliated services from our exchange platform to comprehensive telehealth solution continue to broaden our reach as a company, empowering independent pharmacies with technology to make them indispensable local health hubs. Before we do a more detailed walkthrough of 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 digitalizing the retail pharmacy experience through the optimization of drug procurement, the prescription journey, and patient engagement. Prior to the launch of TraxAid, 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, and create a difficult conundrum for approximately 21,000 independent pharmacies nationwide. We identified this market inefficiency as well as the incredible potential in these independent pharmacies, which together maintain around $73.7 billion in annual purchasing power and proceeded to launch TraxSafe. We design, own, and operate a business-to-business, web-based market platform, bringing together the nation's independent pharmacies with accredited national pharmaceutical suppliers 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 and a fair payment terms, often with next-day delivery. We believe this radical price transparency, economy of scale, and competition among the suppliers leads up to a 10% reduction in a pharmacy's total annual drug purchasing costs. The drug level savings of up to 90% on certain pharmaceutical products. Our platform saves pharmacists 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're paid an administrative fee of up to 6% of the buying prices on our genetic pharmaceuticals and up to 1% on brand pharmaceuticals that pass through our pharmaceutical platform, similar to PayPal or Visa-like model. To date, we have seen incredible success in garnering attention from independent pharmacies nationwide, validating our business model. We currently have around 12,700 plus registered members on our platform, with approximately 195 new registered members added in Q2. To further grow the exchange, we have begun to partner with group purchasing organizations, also known as GPOs, which allows to secure dozens, if not hundreds, of pharmacies at once. These GPO agreements can result in pharmacies purchasing a majority of their pharmaceuticals from TractAid rather than smaller portions, as many do, giving them an outsized impact on our transaction volume, therefore revenue growth. We announced our first GPO deal with QualityCare in May 2021, a GPO spanning 10 states and expect to land additional GPOs in the coming months. We expect these GPOs will continue to drive pharmacies to purchase more products through the platform. We have leveraged our significant success since the launch of the aforementioned marketplace to move into adjacent complementary business where we can leverage our strong retail pharmacy network and core competency in technology. These include Bonham Health, our telehealth subsidiary, as well as the mail-order pharmacy and Rx distribution. In 2021, we are focused on driving forward adoption channels to broaden the reach of our Bonham Health telehealth partnerships, signing strategic partnerships with brand-name nationwide stores such as Big Y, Kenny Drugs, ProAct, Berkshire Grocery, Spartan Mass, and most recently, Winn-Dixie. to build a truly national platform of partners to complement our independent pharmacy network. Approximately 500 stores offer Bonham Health services to thousands of users in all 50 states. We expect to continue to grow in the quarters to come in as we ramp up our strategic partnerships and anticipate an increasing number of employers turning to our turnkey telehealth solutions. Bonham Health Telehealth in the second quarter had approximately 7,724 application downloads with an approximately 6.3% patient registration rate. The total application downloads for the year are over 12,900 with an approximately 6.8% patient registration rate. Many of our relationships are still in the rollout phase, but we expect these numbers to increase into 2022. We continue to integrate exciting new solutions into the Bonham Health offering, including a direct-to-patient prescription drug coupon platform through our partnership with SingleCare, the capability to stream patient lab results directly into the Bonham Health virtual electronic medical records, and remote patient monitoring. These product enhancements paid with our digital marketing strategy that we're ramping up provide us with accelerated access into new key markets alongside our enterprise retail partners. Our new subsidiary, MedChex, which has developed a health passport app, has encountered headwinds as the government, local, national, and international continue to change the requirements regarding COVID-19, which include testing mask mandates. We're evaluating the next steps needed for any additional rollouts at this time. On the capital market, friends, we were proactive throughout the second quarter of 2021, attending two investor conferences, the LD Microinvitational and the Planet Microcap Showcase, all with the goal of enhancing broader investor awareness of our outgoing company. I'd like to now turn the call over to our Chief Financial Officer, Howard Das, to walk through some key financial highlights from the second quarter of 2021.