TRxADE HEALTH, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to TraxAid Health's second quarter 2022 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 the operations for the quarter ended June 30, 2022, was filed with the SEC earlier today. On our call today is TraxAid Health's founder, chairman, and chief executive officer, Surin Ajayrapu, and Janet Huffman, its 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 Janet Huffman, the company's chief financial officer. Janet, the floor is yours.

Thank you, operator, and thank you for joining us today. I'd like to welcome you to our 2022 second quarter financial results conference call. A press release announcing our 2022 second quarter financial results was issued after the close of market today and is posted on our website. We have also furnished such press release to the SEC on form 8K. Statements made on this call and webcast will 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. These statements speak only as of the date hereof, and the company assumes no obligation, except as required by law, to revise any forward-looking statements that may be made in today's press release, call, or webcast. These statements do not guarantee future performance and are subject to risks, uncertainties, and assumptions. For information on risks, uncertainties, and assumptions that may cause actual results to differ materially from forward-looking statements, please refer to the press release, the risk factors included in our most recent quarterly report, and our most recent annual report. and other documents we file with the Securities and Exchange Commission. These documents include, but are not limited to, our most recent quarterly report on Form 10-Q and any subsequently filed periodic report or current report on Form 8-K. In addition, during today's call and webcast, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of TrexAID's 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 at the end of our earnings press release. Unless otherwise stated, all financial comparisons in this call will be to our results for the comparable period of fiscal 2021. During the question and answer portion of today's call, please limit yourself to no more than one question and one follow-up. At this time, I'd like to turn the call over to Saren Ajarapu, the company's Chief Executive Officer. Saren?

Thank you, Janet. We continue to see revenue improvement in 2022. and our revenue base continues to return to the core track feed pharmaceutical market platform. Our nationwide footprint continues to grow as we relentlessly focus on exciting new ways to support our large growing network of registered users, developing technology and products that better enable them to service their respective customers, the end users. strengthening their loyalty to their local retail pharmacy. Before we do a more detailed walkthrough of financial and operational results of the quarter, for those of you who are new to the company, I'd like to walk you through who we are and how we are digitalizing the retail pharmacy experience for 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 inefficient process with no insight or transparency into 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 the approximate 19,400 independent pharmacies nationwide. We identified this market inefficiency as well as incredible potential in these independent pharmacies, which together maintain an estimated approximately 67.1 billion in the annual purchasing power and proceeded to launch TracSafe. We designed, 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 and often with next day delivery. We believe this radical price transparency, economy of scale, and competition among suppliers leads up to a 10% reduction in a pharmacy's total annual drug purchase costs with a drug level savings of up to 90% on some 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 reimbursements or fulfilling a prescription at a loss. Our revenue model is simple. We're paying an administrative fee of up to 6% of the buying price on a generic pharmaceutical and up to 1% on branded pharmaceuticals that pass through our pharmaceutical platform similar to PayPal or Visa-like model. To date, we've seen incredible success in garnering attention from these independent pharmacies nationwide validating our business model. Our TracSafe platform currently has over 13,815 registered members. New registered members in 2022 represent approximately 658 new members in the first half of 2022, with 339 new members added in the second quarter of 2022 itself. This is compared to 198 for the second quarter of 2021, and 420 for the first half of 2021. Another exciting growth metric on our TrackSafe platform includes a 21% increase in sales volume processed across our platform in the second quarter of 2022 compared to the same quarter of 2021. Our TrackSafe platform revenue also increased 11% in the second quarter of 2022 compared to the second quarter of 2021. Tract Shared Prime has also experienced exciting growth in the quarter. Comparing the second quarter of 2022 to 2021 reflects a 1.4 million increase in revenue and increases in the number of orders processed by approximately 330%. Tract Shared Prime also reflected a 713% increase in the number of units sold for the second quarter of 2022, compared to the same quarter in 2021. We expect this growth to continue in 2022. TraxAid Prime also announced a preferred distribution agreement with the Galt Pharmaceutical in July of 2022. The agreement with Galt adds single source and multi-source products to the TraxAid Prime catalog directly the manufacturer of Galt Pharmaceuticals. The partnerships add to the mission of helping our independent pharmacies and their members access top medication products as a part of the TractSafe Health Network. The partnership with the Gold Pharmaceutical will diversify our product offering, renews our commitment to our independent pharmacies. On the capital markets front, we continue to be initiative-taking. I presented at the Maxim Virtual Growth Conference on the panel Technology Improving Healthcare held on March 30th. I also attended the LD microinvitational held June 7th through June 9th. We attended conferences with the goal of enhancing broader investor awareness for our company. I'd like to now turn the call over to our Chief Financial Officer Janet Huffman to walk through some key financial highlights from the second quarter of 2022. Janet Huffman Thank you, Saran.