Inspire Veterinary Partners Reports Third Quarter 2024 Financial Results
VIRGINIA BEACH, VA / ACCESSWIRE / November 13, 2024 / Inspire Veterinary Partners, Inc. (NASDAQ:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today reported its financial results for the third quarter and nine months ended September 30, 2024.
Select Third Quarter 2024 Highlights Compared to Prior Year Period
Total revenue of approximately $4.0 million, a decrease of 1.7%
Services revenue of $2.9 million, an increase of 1%
Product revenue of $1.1 million, a decrease of 9%
G&A decreased 16%
Net loss decreased 56%
Total revenue of approximately $13.3 million, an increase of 3%
Services revenue of approximately $9.7 million, an increase of 6%
Product revenue of $3.5 million, a decrease of 4%
G&A increased 11%
Net loss decreased 3%
Select Nine Month 2024 Highlights Compared to Prior Year Period
Total revenue of approximately $13.3 million, an increase of 3%
Services revenue of approximately $9.7 million, an increase of 6%
Product revenue of $3.5 million, a decrease of 4%
G&A increased 11%
Net loss decreased 3%
"Our third quarter results demonstrate the ongoing work of our dedicated teams on key initiatives to strengthen our fundamentals and accelerate the path to improved profitability," said Kimball Carr, President & Chief Executive Officer of Inspire. "While our third quarter total revenue was slightly lower on a quarterly comparative basis, we continued to streamline our operations to lower our cost structure, leading to a 16% decrease in G&A and a reduction in net loss. Looking ahead, I see tremendous opportunities for us to significantly improve our operating and financial performance and better leverage IVP's platform by continuing to add attractive single and multi-unit animal hospitals, and other synergistic products and services. We remain confident in our direction and belief that the changes and investments we are making across our business will create a more compelling, enduring value proposition for all stakeholders."
Third Quarter 2024 Highlights Compared to Prior Year Period
Total revenue was approximately $4.0 million for the third quarter of 2024, a decrease of 1.7% compared to total revenue of $4.1 million in the prior year period. Service revenue for the third quarter of 2024 increased 1% to $2.9 million compared to the prior year period, primarily driven by the acquisition of Valley Veterinary animal hospital in the fourth quarter of 2023. Product revenue of $1.1 million decreased 9% compared to the prior year period driven primarily bycustomers purchasing less products per visit.
General and administrative expenses decreased 16% to $3.0 million for the third quarter of 2024 compared to $3.5 million in the prior year period. The decrease was primarily due to the Company's decrease in payroll cost from a reduced headcount, cost associated with the initial public offering in August 2023 and termination of the consulting arrangements with Blue Herron and Star Circle.
Net loss decreased 56% to $3.5 million for the third quarter of 2024 compared to a net loss of $7.9 million for the prior year period which included the beneficial conversion feature on the convertible debenture and series A preferred stock of approximately $4.1 million recognized upon the completion of the IPO.
Balance Sheet
As of September 30, 2024, the Company had cash and cash equivalents of approximately $0.68 million. Subsequent to the end of the third quarter of 2024, the Company closed its previously announced registered direct offering on October 23 for the purchase and sale of an aggregate of 10 million shares of its Class A common stock at a purchase price of $0.25 per share. The aggregate gross proceeds to the Company from the offering were $2.5 million, prior to deducting placement agent's fees and other offering expenses payable by Inspire.
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
| September 30, |
|
| December 31, |
| |||
| 2024 |
|
| 2023 |
| |||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 681,199 |
|
| $ | 178,961 |
|
Accounts receivable, net |
|
| 115,551 |
|
|
| 28,573 |
|
Due from former owners |
|
| - |
|
|
| 32,519 |
|
Inventory |
|
| 563,595 |
|
|
| 571,512 |
|
Refundable income tax |
|
| - |
|
|
| 151,796 |
|
Prepaid expenses and other current assets |
|
| 3,090,371 |
|
|
| 388,759 |
|
Total current assets |
|
| 4,450,716 |
|
|
| 1,352,120 |
|
|
|
|
|
|
|
|
| |
Restricted cash - non-current |
|
| 200,000 |
|
|
| 200,000 |
|
Property and equipment, net |
|
| 6,486,444 |
|
|
| 7,949,144 |
|
Right-of-use assets |
|
| 1,347,026 |
|
|
| 1,616,198 |
|
Other intangibles, net |
|
| 1,864,355 |
|
|
| 2,513,028 |
|
Goodwill |
|
| 8,022,082 |
|
|
| 8,147,590 |
|
Other assets |
|
| 25,115 |
|
|
| 12,895 |
|
Total assets |
| $ | 22,395,738 |
|
| $ | 21,790,975 |
|
|
|
|
|
|
|
|
| |
Liabilities and Stockholder's Equity (Deficit) |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 2,073,582 |
|
| $ | 3,206,594 |
|
Accrued expenses |
|
| 305,118 |
|
|
| 858,334 |
|
Cumulative Series A preferred stock dividends payable |
|
| - |
|
|
| 92,322 |
|
Operating lease liabilities |
|
| 164,107 |
|
|
| 141,691 |
|
Loans payable, net of discount |
|
| 2,233,004 |
|
|
| 1,713,831 |
|
Convertible notes payable |
|
| 850,000 |
|
|
| - |
|
Convertible debentures, net of issuance costs |
|
| - |
|
|
| 100,000 |
|
Notes payable, net of discount |
|
| 1,401,449 |
|
|
| 1,469,043 |
|
Total current liabilities |
|
| 7,027,260 |
|
|
| 7,581,815 |
|
|
|
|
|
|
|
|
| |
Operating lease liabilities, non-current |
|
| 1,417,372 |
|
|
| 1,514,044 |
|
Notes payable - noncurrent |
|
| 10,921,103 |
|
|
| 13,483,375 |
|
Total liabilities |
|
| 19,365,735 |
|
|
| 22,579,234 |
|
|
|
|
|
|
|
|
| |
Commitments and Contingencies (Note 15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Stockholder's Equity (Deficit) |
|
|
|
|
|
|
|
|
Common stock - Class A, $0.0001 par value, 100 million shares authorized, 13,363,688 and 70,421 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. |
|
| 1,336 |
|
|
| 7 |
|
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,891,500 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. |
|
| 389 |
|
|
| 389 |
|
Convertible series A preferred stock, $0.0001 par value, 1 million shares authorized, 0 and 403,640 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. |
|
| - |
|
|
| 40 |
|
Additional paid in capital |
|
| 34,761,924 |
|
|
| 20,426,562 |
|
Accumulated deficit |
|
| (31,733,646 | ) |
|
| (21,215,257 | ) |
Total stockholder's equity (deficit) |
|
| 3,030,003 |
|
|
| (788,259 | ) |
Total liabilities and stockholder's equity (deficit) |
| $ | 22,395,738 |
|
| $ | 21,790,975 |
|
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Service revenue |
| $ | 2,969,748 |
|
| $ | 2,935,922 |
|
| $ | 9,735,585 |
|
| $ | 9,209,501 |
|
Product revenue |
|
| 1,079,277 |
|
|
| 1,183,726 |
|
|
| 3,535,388 |
|
|
| 3,682,088 |
|
Total revenue |
|
| 4,049,025 |
|
|
| 4,119,648 |
|
|
| 13,270,973 |
|
|
| 12,891,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue (exclusive of depreciation and amortization, shown separately below) |
|
| 2,568,085 |
|
|
| 2,206,216 |
|
|
| 7,705,972 |
|
|
| 6,847,963 |
|
Cost of product revenue (exclusive of depreciation and amortization, shown separately below) |
|
| 854,921 |
|
|
| 853,622 |
|
|
| 2,807,025 |
|
|
| 2,631,752 |
|
General and administrative expenses |
|
| 2,988,122 |
|
|
| 3,561,790 |
|
|
| 8,080,199 |
|
|
| 7,249,250 |
|
Debt extinguishment loss |
|
| - |
|
|
| 16,105 |
|
|
| 1,587,862 |
|
|
| 16,105 |
|
Depreciation and amortization |
|
| 340,167 |
|
|
| 313,316 |
|
|
| 1,048,290 |
|
|
| 915,824 |
|
Gain on sale of business |
|
| (467,049 | ) |
|
| - |
|
|
| (467,049 | ) |
|
| - |
|
Total operating expenses |
|
| 6,284,246 |
|
|
| 6,951,049 |
|
|
| 20,762,299 |
|
|
| 17,660,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss from operations |
|
| (2,235,221 | ) |
|
| (2,831,401 | ) |
|
| (7,491,326 | ) |
|
| (4,769,305 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| 44 |
|
|
| 12 |
|
|
| 46 |
|
|
| 18 |
|
Interest expense |
|
| (1,254,149 | ) |
|
| (914,604 | ) |
|
| (2,801,491 | ) |
|
| (1,745,415 | ) |
Beneficial conversion feature |
|
| - |
|
|
| (4,137,261 | ) |
|
| - |
|
|
| (4,137,261 | ) |
Other expenses |
|
| - |
|
|
| (748 | ) |
|
| (4,768 | ) |
|
| 1,218 |
|
Total other expenses |
|
| (1,254,105 | ) |
|
| (5,052,601 | ) |
|
| (2,806,213 | ) |
|
| (5,881,440 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Loss before income taxes |
|
| (3,489,326 | ) |
|
| (7,884,002 | ) |
|
| (10,297,539 | ) |
|
| (10,650,745 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Benefit for income taxes |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss |
|
| (3,489,326 | ) |
|
| (7,884,002 | ) |
|
| (10,297,539 | ) |
|
| (10,650,745 | ) |
Dividend on convertible series A preferred stock |
|
| - |
|
|
| (133,828 | ) |
|
| (220,850 | ) |
|
| (133,828 | ) |
Net loss attributable to class A and B common stockholders |
| $ | (3,489,326 | ) |
| $ | (8,017,830 | ) |
| $ | (10,518,389 | ) |
| $ | (10,784,573 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss per Class A and B common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | (0.38 | ) |
| $ | (1.86 | ) |
| $ | (1.75 | ) |
| $ | (2.50 | ) |
Weighted average shares outstanding per Class A and B common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
| 9,070,371 |
|
|
| 4,321,507 |
|
|
| 6,019,913 |
|
|
| 4,313,683 |
|
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit)
| Convertible Series A |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Preferred Stock |
| Class A Common Stock |
| Class B Common Stock |
| Additional |
| Accumulated |
|
| Stockholders' |
| ||||||||||||||||
No. of |
| Amount |
| No. of |
| Amount |
| No. of |
| Amount |
| Paid-in Capital |
| Deficit (As Restated) |
|
| (Deficit) (As Restated) |
| ||||||||||
Balance as of December 31, 2022 |
| - |
| $ | - |
|
| 9,705 |
| $ | 1 |
|
| 4,300,000 |
| $ | 430 |
| $ | 1,107,536 |
| $ | (6,243,448 | ) |
| $ | (5,135,481 | ) |
Issuance of warrants to CEO |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 2,701 |
|
| - |
|
|
| 2,701 |
|
Net loss |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (1,538,949 | ) |
|
| (1,538,949 | ) |
Balance as of March 31, 2023 |
| - |
| $ | - |
|
| 9,705 |
| $ | 1 |
|
| 4,300,000 |
| $ | 430 |
| $ | 1,110,237 |
| $ | (7,782,397 | ) |
| $ | (6,671,729 | ) |
Issuance of convertible series A preferred stock in exchange for bridge note (contingent upon a qualified offering as of or before September 1, 2023 (See note 8)) |
| 442,458 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
|
| - |
|
Net loss |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (1,227,794 | ) |
|
| (1,227,794 | ) |
Balance as of June 30, 2023 |
| 442,458 |
| $ | - |
|
| 9,705 |
| $ | 1 |
|
| 4,300,000 |
| $ | 430 |
| $ | 1,110,237 |
| $ | (9,010,191 | ) |
| $ | (7,899,523 | ) |
Issuance of class A common stock in connection with initial public offering, net of issuance costs |
| - |
|
| - |
|
| 16,000 |
|
| 2 |
|
| - |
|
| - |
|
| 5,439,569 |
|
| - |
|
|
| 5,439,571 |
|
Recognition of convertible series A preferred stock issuance upon initial public offering |
| - |
|
| 44 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 4,440,644 |
|
| - |
|
|
| 4,440,688 |
|
Conversion of convertible debentures into class A common stock |
| - |
|
| - |
|
| 14,959 |
|
| 1 |
|
| - |
|
| - |
|
| 4,414,316 |
|
| - |
|
|
| 4,414,317 |
|
Conversion of class B common stock into class A common stock |
| - |
|
| - |
|
| 4,085 |
|
| - |
|
| (408,500 | ) |
| (41 | ) |
| 41 |
|
| - |
|
|
| - |
|
Convertible series A preferred stock cumulative dividends |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (133,828 | ) |
| - |
|
|
| (133,828 | ) |
Issuance of common stock for services |
| - |
|
| - |
|
| 1,302 |
|
| - |
|
| - |
|
| - |
|
| 197,892 |
|
| - |
|
|
| 197,892 |
|
Beneficial conversion feature on convertible debentures |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 1,569,395 |
|
| - |
|
|
| 1,569,395 |
|
Beneficial conversion feature on convertible series A preferred stock |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 2,567,866 |
|
| - |
|
|
| 2,567,866 |
|
Net loss |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (7,884,002 | ) |
|
| (7,884,002 | ) |
Balance as of September 30, 2023 |
| 442,458 |
| $ | 44 |
|
| 46,051 |
| $ | 5 |
|
| 3,891,500 |
| $ | 389 |
| $ | 19,606,132 |
| $ | (16,894,193 | ) |
| $ | 2,712,376 |
|
Convertible Series A |
| Class A Common Stock |
| Class B Common Stock |
|
|
|
|
|
|
|
| ||||||||||||||||
No. of |
| Amount |
| No. of |
| Amount |
| No. of |
| Amount |
| Additional |
| Accumulated Deficit |
|
| Stockholder' |
| ||||||||||
Balance as of December 31, 2023 |
| 403,640 |
| $ | 40 |
|
| 70,421 |
| $ | 7 |
|
| 3,891,500 |
| $ | 389 |
| $ | 20,426,562 |
| $ | (21,215,257 | ) |
| $ | (788,259 | ) |
Issuance of class A common stock and pre-funded warrants, net of issuance costs |
| - |
|
| - |
|
| 28,599 |
|
| 3 |
|
| - |
|
| - |
|
| 3,375,455 |
|
| - |
|
|
| 3,375,458 |
|
Exercise of pre-funded warrants |
| - |
|
| - |
|
| 441,989 |
|
| 44 |
|
| - |
|
| - |
|
| (44 | ) |
| - |
|
|
| - |
|
Issuance of Class A common stock and pre-funded warrants in connection with commitment shares |
| - |
|
| - |
|
| 12,143 |
|
| 1 |
|
| - |
|
| - |
|
| 599,999 |
|
| - |
|
|
| 600,000 |
|
Issuance of convertible series A preferred stock |
| 20,000 |
|
| 2 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 199,998 |
|
| - |
|
|
| 200,000 |
|
Issuance of class A common stock for services |
| - |
|
| - |
|
| 39,051 |
|
| 4 |
|
| - |
|
| - |
|
| 286,692 |
|
| - |
|
|
| 286,696 |
|
Issuance of class A common stock in connection with general release agreement |
| - |
|
| - |
|
| 2,460 |
|
| - |
|
| - |
|
| - |
|
| 20,000 |
|
| - |
|
|
| 20,000 |
|
Conversion of convertible series A preferred stock into class A common stock |
| (363,725 | ) |
| (36 | ) |
| 147,900 |
|
| 15 |
|
| - |
|
| - |
|
| 21 |
|
| - |
|
|
| - |
|
Convertible series A preferred stock cumulative dividends |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (2,250 | ) |
| - |
|
|
| (2,250 | ) |
Convertible series A preferred stock dividend |
| 21,227 |
|
| 2 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 212,268 |
|
| (212,270 | ) |
|
| - |
|
Net loss |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (3,421,792 | ) |
|
| (3,421,792 | ) |
Balance as of March 31, 2024 |
| 81,142 |
| $ | 8 |
|
| 742,563 |
| $ | 74 |
|
| 3,891,500 |
| $ | 389 |
| $ | 25,118,701 |
| $ | (24,849,319 | ) |
| $ | 269,853 |
|
Exercise of pre-funded warrants |
| - |
|
| - |
|
| 102,500 |
|
| 10 |
|
| - |
|
| - |
|
| (10 | ) |
| - |
|
|
| - |
|
Conversion of convertible series A preferred stock into class A common stock |
| (54,771 | ) |
| (5 | ) |
| 198,992 |
|
| 20 |
|
| - |
|
| - |
|
| (15 | ) |
| - |
|
|
| - |
|
Convertible series A preferred stock dividend |
| 858 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 10,830 |
|
| (8,580 | ) |
|
| 2,250 |
|
Net loss |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (3,386,421 | ) |
|
| (3,386,421 | ) |
Balance as of June 30, 2024 |
| 27,229 |
| $ | 3 |
|
| 1,044,055 |
| $ | 104 |
|
| 3,891,500 |
| $ | 389 |
| $ | 25,129,506 |
| $ | (28,244,320 | ) |
| $ | (3,114,318 | ) |
Issuance of class A common stock and warrants, net of issuance costs |
| - |
|
| - |
|
| 146,475 |
|
| 15 |
|
| - |
|
| - |
|
| 5,459,985 |
|
| - |
|
|
| 5,460,000 |
|
Exercise of pre-funded warrants |
| - |
|
| - |
|
| 5,853,846 |
|
| 585 |
|
| - |
|
| - |
|
| (585 | ) |
| - |
|
|
| - |
|
Exercise of class A common stock warrants |
| - |
|
| - |
|
| 3,500,000 |
|
| 350 |
|
| - |
|
| - |
|
| 3,499,650 |
|
| - |
|
|
| 3,500,000 |
|
Conversion of convertible series A preferred stock into class A common stock |
| (27,229 | ) | $ | (3 | ) |
| 272,290 |
| $ | 27 |
|
| - |
|
| - |
|
| (24 | ) |
| - |
|
|
| - |
|
Conversion of convertible notes payable |
| - |
|
| - |
|
| 2,547,022 |
|
| 255 |
|
| - |
|
| - |
|
| 649,745 |
|
| - |
|
|
| 650,000 |
|
Stock-based compensation |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 23,647 |
|
| - |
|
|
| 23,647 |
|
Net loss |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (3,489,326 | ) |
|
| (3,489,326 | ) |
Balance as of September 30, 2024 |
| - |
| $ | - |
|
| 13,363,688 |
| $ | 1,336 |
|
| 3,891,500 |
| $ | 389 |
| $ | 34,761,924 |
| $ | (31,733,646 | ) |
| $ | 3,030,003 |
|
About Inspire Veterinary Partners, Inc.
Inspire Veterinary Partners is an owner/operator of veterinary hospitals in the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.
For more information, please visit: www.inspirevet.com.
Connect with Inspire Veterinary Partners, Inc.
https://www.facebook.com/InspireVeterinaryPartners/
https://www.linkedin.com/company/inspire-veterinary-partners/
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Investor Contact
TraDigital IR
Kevin McGrath
+1-646-418-7002
[email protected]
General Inquires
Morgan Wood
[email protected]
SOURCE: INSPIRE VETERINARY PARTNERS, INC.
View the original press release on accesswire.com