IMAC Holdings Reports Increased Revenue for the Fourth Consecutive Quarter
BRENTWOOD, Tenn., May 13, 2022 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: IMAC) ("IMAC" or the "Company"), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, today reported its preliminary financial results for the first quarter ended March 31, 2022.
Financial and Corporate Highlights from Q1 2022:
- Total Revenue was $3.9 million, compared with $3.0 million in Q1 2021, an increase of 28%
- Patient visits were up 3.7% to 39,809 in IMAC clinics
- Completed repayment of three loans of over $4.34 million, which represented more than 95% of the company's debt
- Successfully completed its pilot program for The Back Space retail chiropractic concept at select Walmart stores, with a commitment to triple its store count with at least 20 additional locations in Walmart over the next 12 months
- Launched the The Back Company Franchise to expand our chiropractic service locations
- Engaged Dr. Ben Lerner as Chief Operating Officer, bringing decades of valuable healthcare growth experience to the executive team.
- Initiated the third and final cohort of its Phase 1 clinical trial for the treatment of bradykinesia due to Parkinson's disease.
"The first quarter of 2022 demonstrated IMAC's ability to deliver on significant commitments. For example, we started the quarter by successfully retiring debt obligations to a lending partner that helped us through challenging market conditions in 2020. Then, we finished the quarter by meeting obligations of our 10 store pilot program with Walmart, setting up substantial growth prospects for our company," said Jeffrey Ervin, CEO of IMAC.
"Our clinics realized improved pricing as revenue per visit increased over 20% from the comparable quarter in 2021. The increase came from continued operating and payor mix improvements.
"We are encouraged by the consumer adoption of The Back Space spinal health and wellness services. One of the clinics achieved operating breakeven eight weeks after opening. Recruiting quality teammates will continue to drive success with this operating model and the model's limited overhead allows us to compensate competitively in the marketplace.
"We remain excited about the progress in each of our business segments, given the revenue growth in our medical clinics, the adoption of our retail spinal health services, and the visibility to the finish line for our Phase 1 clinical trial," concluded Mr. Ervin.
About IMAC Holdings, Inc.
IMAC Holdings owns and manages health and wellness centers that deliver sports medicine, orthopedic, and life science therapies for movement restricting diseases. IMAC is comprised of three business segments: outpatient medical centers, The Back Space, and a clinical research division. With treatments to address the aging population, IMAC Holdings owns or manages more than 15 outpatient medical clinics and has partnered with several active and former professional athletes to promote a minimally invasive approach to sports medicine. IMAC's The Back Space retail spine health and wellness treatment centers deliver chiropractic care within Walmart locations. IMAC's research division is currently conducting a Phase I clinical trial evaluating a mesenchymal stem cell therapy candidate for bradykinesia due to Parkinson's disease. For more information visit www.imacholdings.com.
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Safe Harbor Statement
This press release contains forward-looking statements. These forward-looking statements, and terms such as "anticipate," "expect," "believe," "may," "will," "should" or other comparable terms, are based largely on IMAC's expectations and are subject to a number of risks and uncertainties, certain of which are beyond IMAC's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, risks and uncertainties associated with its ability to maintain and grow its business, the variability of its operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the skills and experience necessary to meet customers' requirements, and its ability to protect its intellectual property. IMAC encourages you to review other factors that may affect its future results in its public filings with the Securities and Exchange Commission. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will in fact occur. More information about IMAC Holdings, Inc. is available at www.imacregeneration.com.
IMAC Press Contact:
Laura Fristoe
[email protected]
Financial Tables
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| March 31, 2022 | December 31, 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 4,275,251 | $ | 7,118,980 | ||||
| Accounts receivable, net | 1,725,034 | 1,209,333 | ||||||
| Deferred compensation, current portion | 196,949 | 191,657 | ||||||
| Other assets | 480,278 | 547,536 | ||||||
| Total current assets | 6,677,512 | 9,067,506 | ||||||
| Property and equipment, net | 2,285,092 | 2,323,163 | ||||||
| Other assets: | ||||||||
| Goodwill | 4,661,796 | 4,661,796 | ||||||
| Intangible assets, net | 5,552,065 | 5,797,469 | ||||||
| Deferred compensation, net of current portion | 26,472 | 73,816 | ||||||
| Security deposits | 351,819 | 357,050 | ||||||
| Right of use asset | 4,645,217 | 4,948,393 | ||||||
| Total other assets | 15,237,369 | 15,838,524 | ||||||
| Total assets | $ | 24,199,973 | $ | 27,229,193 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 3,017,799 | $ | 2,523,332 | ||||
| Patient deposits | 332,519 | 320,917 | ||||||
| Notes payable, current portion | 92,799 | 254,487 | ||||||
| Finance lease obligation, current portion | 19,258 | 19,050 | ||||||
| Liability to issue common stock, current portion | 303,855 | 337,935 | ||||||
| Operating lease liability, current portion | 1,472,245 | 1,478,140 | ||||||
| Total current liabilities | 5,238,475 | 4,933,861 | ||||||
| Long-term liabilities: | ||||||||
| Notes payable, net of current portion | 87,412 | 104,697 | ||||||
| Finance lease obligation, net of current portion | 24,379 | 29,273 | ||||||
| Liability to issue common stock, net of current portion | 189,375 | 189,375 | ||||||
| Operating lease liability, net of current portion | 3,688,249 | 4,018,926 | ||||||
| Total liabilities | 9,227,890 | 9,276,132 | ||||||
| Commitment and Contingencies – Note 14 | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock - $0.001 par value, 5,000,000 authorized, nil issued and outstanding at March 31, 2022 and December 31, 2021, respectively. | - | - | ||||||
| Common stock - $0.001 par value, 30,000,000 authorized; 27,043,409 and 26,876,409 shares issued at March 31, 2022 and December 31, 2021, respectively; and 26,385,167 and 26,218,167 outstanding at March 31, 2022 and December 31, 2021, respectively. | 26,385 | 26,218 | ||||||
| Additional paid-in capital | 46,314,757 | 46,133,777 | ||||||
| Accumulated deficit | (31,369,059 | ) | (28,206,934 | ) | ||||
| Total stockholders' equity | 14,972,083 | 17,953,061 | ||||||
| Total liabilities and stockholders' equity | $ | 24,199,973 | $ | 27,229,193 | ||||
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Patient revenues, net | $ | 3,894,987 | $ | 3,024,808 | ||||
| Other income | - | 3,377 | ||||||
| Management fees | - | 36,068 | ||||||
| Total revenue | 3,894,987 | 3,064,253 | ||||||
| Operating expenses: | ||||||||
| Patient expenses | 460,473 | 341,412 | ||||||
| Salaries and benefits | 3,710,278 | 2,754,248 | ||||||
| Share-based compensation | 189,120 | 110,607 | ||||||
| Advertising and marketing | 370,488 | 265,548 | ||||||
| General and administrative | 1,815,247 | 1,219,338 | ||||||
| Depreciation and amortization | 446,772 | 422,201 | ||||||
| Loss on disposal or impairment of assets | 47,429 | 4,043 | ||||||
| Total operating expenses | 7,039,807 | 5,117,397 | ||||||
| Operating loss | (3,144,820 | ) | (2,053,144 | ) | ||||
| Other expenses: | ||||||||
| Other expense | (13,174 | ) | ||||||
| Interest expense | (4,131 | ) | (176,279 | ) | ||||
| Total other expenses | (17,305 | ) | (176,279 | ) | ||||
| Net loss before income taxes | (3,162,125 | ) | (2,229,423 | ) | ||||
| Income taxes | - | - | ||||||
| Net loss | $ | (3,162,125 | ) | $ | (2,229,423 | ) | ||
| Net loss per share attributable to common stockholders | ||||||||
| Basic and diluted | $ | (0.12 | ) | $ | (0.17 | ) | ||
| Weighted average common shares outstanding | ||||||||
| Basic and diluted | 26,365,734 | 13,448,567 | ||||||
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (3,162,125 | ) | $ | (2,229,423 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 446,772 | 422,201 | ||||||
| Share based compensation | 189,120 | 110,607 | ||||||
| Loss on disposition or impairment of assets | 47,429 | 4,043 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (515,701 | ) | (332,471 | ) | ||||
| Other assets | 67,258 | (167,193 | ) | |||||
| Security deposits | 5,231 | (3,049 | ) | |||||
| Right of use/lease liability | (33,396 | ) | (40,994 | ) | ||||
| Accounts payable and accrued expenses | 499,819 | 367,594 | ||||||
| Patient deposits | 11,602 | 118,783 | ||||||
| Net cash from operating activities | (2,443,991 | ) | (1,749,902 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (218,139 | ) | (65,769 | ) | ||||
| Brand development | - | (55,045 | ) | |||||
| Acquisitions | - | (563,500 | ) | |||||
| Proceeds from sale of property and equipment | 2,060 | 1,250 | ||||||
| Net cash from investing activities | (216,079 | ) | (683,064 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock | - | 17,209,924 | ||||||
| Payments on notes payable | (178,973 | ) | (1,788,711 | ) | ||||
| Payments on finance lease obligation | (4,686 | ) | (4,487 | ) | ||||
| Net cash from financing activities | (183,659 | ) | 15,416,726 | |||||
| Net increase (decrease) in cash | (2,843,729 | ) | 12,983,760 | |||||
| Cash, beginning of period | 7,118,980 | 2,623,952 | ||||||
| Cash, end of period | $ | 4,275,251 | $ | 15,607,712 | ||||
| Supplemental cash flow information: | ||||||||
| Interest paid | $ | 4,599 | $ | 63,359 | ||||
