Scienture Holdings Reports Significant Financial Changes, Including 83% Revenue Decline and 337% Operating Expense Increase in Latest Quarter

Scienture Holdings, Inc. (formerly TRxADE HEALTH, Inc.) reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenues for the three months at $64,861, down 83% from $392,286 in the same period of 2023. For the nine months, revenues decreased to $83,560 from $1,235,168, marking a 93% decline. This drop is attributed to the integration of recent acquisitions and a shift in operational focus.

Operating expenses surged dramatically, totaling $3,501,674 for the third quarter, a 337% increase from $801,270 in the prior year. For the nine-month period, operating expenses reached $10,489,633, up 355% from $2,305,844 in 2023. The increase in expenses is largely due to higher wages, professional fees, and research and development costs associated with the Scienture merger.

The company reported a net loss from continuing operations of $(3,183,601) for the third quarter, compared to a loss of $(88,136) in the same quarter of 2023. For the nine months, the net loss from continuing operations was $(11,441,764), significantly higher than $(3,429,112) in the previous year. However, the company reported a net income of $16,228,530 for the nine months ended September 30, 2024, contrasting with a net loss of $(6,177,945) for the same period in 2023, primarily due to gains from discontinued operations.

Total assets surged to $94,259,693 as of September 30, 2024, compared to $12,532,913 at the end of 2023, driven by the acquisition of Scienture and other strategic investments. Current liabilities decreased to $5,413,438 from $11,556,355, improving the company's working capital position to $1,842,478, a significant recovery from a negative working capital of $(8,803,292) at the end of 2023.

Strategically, the company underwent several significant changes, including the completion of the Scienture merger on July 25, 2024, which involved the issuance of 291,536 shares of common stock and 6,826,753 shares of Series X Preferred Stock. The merger is expected to enhance the company’s pharmaceutical research capabilities. Additionally, the company has made plans to dissolve Bonum Health, LLC, which was formed to hold telehealth assets.

The company’s cash position improved markedly, with cash increasing to $579,103 from $314 at the end of 2023. However, the company continues to face challenges, including an accumulated deficit of $31,876,241 and the need for additional capital to support ongoing operations and future acquisitions.