Scienture Holdings, Inc. (formerly TRxADE HEALTH, Inc.) reported a net loss of $9.1 million for the year ended December 31, 2024, compared to a net loss of $17.8 million in 2023. Revenues decreased significantly to $136,643 in 2024 from $1.4 million in 2023, primarily due to the February 2024 disposition of substantially all assets related to its web-based pharmaceutical marketplace previously operated through Softell. Cost of sales also decreased to $130,638 in 2024 from $1.3 million in 2023, reflecting the reduced revenue-generating operations. Operating expenses, however, increased substantially to $14.7 million in 2024 from $4.4 million in 2023, largely driven by increased wage and salary expense, professional fees, and general and administrative expenses, including a significant increase in share-based compensation.
The company's cash balance was $308,096 as of December 31, 2024, compared to $314 as of December 31, 2023. The increase resulted from proceeds received in February and May 2024 from the disposition of assets to Micro Merchant Systems, Inc., as well as convertible note and debenture issuances in August and November 2024. The company's accumulated deficit stood at $39.0 million as of December 31, 2024. The company's financial statements reflect the assumption of continued operations as a going concern, although the company acknowledges that its recurring operating losses and net capital deficiency raise substantial doubt about its ability to continue as a going concern within one year.
Significant developments during the year included the July 2024 acquisition of Scienture LLC, a specialty pharmaceutical company focused on developing and commercializing products for the treatment of CNS and CVS diseases. The acquisition resulted in the recognition of $76.4 million in intangible assets and $21.4 million in goodwill. The company also divested its interests in several subsidiaries, including Superlatus Inc. and SOSRx, LLC, during the year. The company's subsidiary, Integra Pharma Solutions, LLC, operates as a licensed pharmaceutical wholesaler, serving over 1,600 pharmacies and medical clinics across 38 states.
The company's product pipeline includes several product candidates in various stages of development, including SCN-102 (ARBLITM), which received FDA approval in March 2025. The company anticipates commercial launch of SCN-102 during the third quarter of 2025. Other product candidates, SCN-104, SCN-106, and SCN-107, are in earlier stages of development. The company is actively pursuing strategic collaborations to support commercialization efforts. The company currently employs approximately 19 employees (14 full-time and 5 part-time).
The company's outlook includes continued implementation of Scienture LLC's business plan and exploration of strategic transactions for its business-to-consumer subsidiaries. The company anticipates needing additional funding in the future, potentially through equity investments and notes payable, to support its operations and potential acquisitions. The company highlights several risk factors, including its limited operating history, dependence on additional capital, reliance on third-party manufacturers, and the inherent uncertainties associated with biopharmaceutical product development and regulatory approvals.
About Scienture Holdings, Inc.
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