KindlyMD Announces First Quarter 2024 Financial Results and Provides Shareholder Update

Received reimbursement from insurance payors for the first time in Company history during first quarter, which is expected to increase as a percentage of total revenue going forward

Following its IPO in early June, the Company has sufficient capital to fund operations and execute on its growth strategy for at least the next 12 months

SALT LAKE CITY, UT / ACCESSWIRE / June 28, 2024 / KindlyMD, Inc. ("KindlyMD" or the "Company") (NASDAQ:KDLY), a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies, today announced its financial results for the first quarter ended March 31, 2024 and provided an update to shareholders after closing its initial public offering on June 3, 2024.

"We are pleased to report our first quarter of financial results as a public company following the successful closing of our IPO in early June. During the quarter, we were constrained by working capital as we prepared for our IPO; however, we began receiving reimbursement from insurance payors for the first time in our company history during that period. Subsequent to the end of the quarter, we announced the Company became Utah's first alternative medical treatment company to contract under the state's top insurance payors, including Select Health, Medicare and more recently, Blue Cross Blue Shield. We now provide nearly 80% statewide comprehensive insurance coverage to Utah residents, taking into account overlapping coverages and based on information from the 2023 Utah Health Insurance Market Report. We hope that our reimbursement revenue as a percentage of total revenue will continue to increase going forward, offering a much larger patient population with the opportunity to receive all the benefits of our integrated behavioral and alternative therapies outside of out-of-pocket payors for the first time," said KindlyMD Founder and CEO Tim Pickett, PA-C.

Mr. Pickett continued, "The working capital we received from our IPO will provide us with the opportunity to invest across many growth levers in line with our strategic priorities. Beyond the additional marketing budget to continue attracting a larger patient population, we see significant merger and acquisition opportunity to acquire additional clinics in Utah, integrate those locations into our platform, and increase our patient population where we currently treat more than 16% of the medical cannabis patient population according to a Utah Department of Health and Human Services Center for Medical Cannabis Report dated May 2024. We will continue to update our shareholders as we make progress."

Operational Highlights Subsequent to March 31, 2024:

• Closed IPO on June 3, 2024 for net proceeds of $6.02 million
• Collaborated with Curaleaf to expand patient education on medical cannabis care in Utah with community care events held at multiple Curaleaf Utah medical cannabis pharmacies
• Became Utah's first alternative medical treatment company to contract under the state's top insurance payors which include Medicare, Select Health and Medicaid
• Also contracted with Blue Cross Blue Shield insurance payor
• The Company now provides nearly 80% statewide comprehensive insurance coverage in Utah
• Announced the successful registration on SAM.gov, the official U.S. federal funding platform

Financial Highlights for the Quarterly Period Ended March 31, 2024

Revenues for the period ended March 31, 2024 totaled $829,029, a decrease of $331,316, or 28.6%, as compared to $1,160,345 for the three months ended March 31, 2023. The decrease in revenues is primarily attributed to a decrease in cash-pay patient care services as KindlyMD shifts to insurance billing with commercial and governmental payors including Medicare, Medicaid, Select Health, Blue Cross Blue Shield and other commercial payors compared to the prior period.

The Company earned $34,722 in reimbursements from insurance payors in the three-months ended March 31, 2024, as compared to $0 in the corresponding period in 2023.

Operating expenses decreased by $299,394, or 21.9%, to $1,066,156 for the three months ended March 31, 2024, from $1,365,550 for the three months ended March 31, 2023, primarily attributable to a decrease in salaries and wages, general and administrative expenses, and cost of revenues.

Net loss per share decreased by $0.02 or 50%, to $(0.06) for the three months ended March 31, 2024, compared to $(0.04) for the three months ended March 31, 2023. Management continues to look for opportunities to increase sales, acquire additional clinics, improve margins and control ongoing operating expenses.

As of March 31, 2024, the Company had cash and cash equivalents of $287,383 and total working capital deficit of $505,419. Subsequent to the quarter on June 3, 2024, the Company completed its IPO for total net proceeds of $6.02 million. The IPO provided the Company with adequate liquidity and cash reserves to meet its obligations for at least the 12-month period following March 31, 2024, and to assist in implementing its growth strategy.

As of June 24, 2024, the Company had 5,939,516 common shares outstanding.

About KindlyMD

KindlyMD™️ is a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies to offer patients comprehensive care and reduce the addiction and dependency of opioid use in the U.S. KindlyMD currently operates four centers, including the largest alternative pain treatment center in Utah. With a focus on holistic pain management through its specialty outpatient clinical services, including, where appropriate, the recommendation of medical cannabis by KindlyMD healthcare providers, KindlyMD is providing better patient health outcomes.

For more information, please visit www.kindlymd.com.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in KindlyMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. KindlyMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

Investor Relations Contact:

Valter Pinto, Managing Director
KCSA Strategic Communications
(212) 896-1254
[email protected]

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SOURCE: KindlyMD, Inc.