Note 3 - Discontinued Operations

6 Months Ended

Jun. 30, 2017

Notes

Note 3 - Discontinued Operations

NOTE 3 – DISCONTINUED OPERATIONS

On December 31, 2016, the Company entered into a contract and consummated the sale of 100% of its equity interests in its wholly-owned subsidiary, Westminster Pharmaceuticals, LLC, a Delaware limited liability company (“Westminster”). The purchase price was the transfer of $1,197,354 of assets, the transfer of $(3,908,296) of liabilities, 1,500,000 warrants issued with a fair market value of $688,143 which was calculated based on Black-Scholes model, cancellation of $1,557,810 intercompany balance due to Trxade Group, Inc. and remaining debt discount of $267,381 being written off. The transaction resulted in a gain of $197,608. The schedule below summarizes the sale arrangement:

Assets transferred	$	1,197,354
Liabilities transferred	$	(3,908,296)
Cancellation of intercompany payables	$	1,557,810
Write-off unamortized debt discount	$	267,381
Issuance of 1,500,000 warrants	$	688,143
Gain on sale of Westminster	$	(197,608)

Results of Discontinued Operations for the:

		Three months ended June 30, 2016		Six months ended June 30, 2016
Revenue	$	1,100,494	$	2,303,130
Cost of Goods Sold	$	1,039,119	$	2,039,609
Operating Expenses	$	497,193	$	878,806
Interest Expense	$	21,046	$	42,754
Loss from discontinued operation	$	(456,864)	$	(658,039)

Assets and Liabilities of Discontinued Operations as of

		December 31, 2016
Cash	$	65,386
Accounts Receivable		30,499
Inventory, net of $30,413 obsolescence reserve		641,525
Prepaid Assets and other advances		75,221
Fixed Assets, net of accumulated amortization		65,000
Other Assets		319,723
Total Assets	$	1,197,354
Intercompany payable	$	1,557,810
Accounts payable		620,881
Accrued Liabilities		229,605
Convertible Note		1,500,000
Total Liabilities	$	3,908,296