KindlyMD(R) Announces Third Quarter 2024 Financial Results

Q3 Reimbursements from insurance payors totaled $106,567 an increase of 16.4% sequentially

KindlyMD now provides more than 90% in-network insurance coverage in Utah

SALT LAKE CITY, UT / ACCESSWIRE / November 13, 2024 / ("KindlyMD" or the "Company") (NASDAQ:KDLY), a patient-first healthcare and healthcare data company redefining value-based care and patient-centered medical services, today announced its financial results for the third quarter ended September 30, 2024.

"We are pleased with the progress made during the third quarter to expand our credentialing and increase insurance visits, resulting in a 16.4% growth sequentially. This greatly improves the accessibility of our services, making them available to a broader patient base and allowing financial flexibility for our patients to visit more often," Tim Pickett, PA-C, KindlyMD Founder and CEO, stated. "Our strategic focus on expanding capacity and network has proven our model can achieve in-network status with the largest payers. We can use this status to help grow the number of lives we treat in Utah and beyond. We have also begun to develop enterprise-level data analytics and are excited to drive more personalized and effective care in the fight to improve health outcomes faster and at lower patient cost. We now also have the ability to aggregate and analyze disjointed data from many sources, uncovering drug usage trends, product effectiveness, patient risk factors, and opportunities to enhance therapies."

Operational Highlights:

• Achieved above 90% statewide insurance coverage in Utah with the addition of the largest health insurer in the United States, United Healthcare Insurance.

• Introduced $500,000 share repurchase program to enhance shareholder value.

• Recognized as one of the winners of the Healthcare AI Impact Award 2024.

• Appointed Jeremy Joyal as Medical Director & Nancy Pratt as Behavioral Health Program Director.

Financial Highlights for the Quarterly Period Ended September 30, 2024
The Company earned $106,567 in reimbursements from insurance payers during the three months ended September 30, 2024, representing a 16.4% increase compared to the $91,553 earned during the three months ended June 30, 2024. The Company earned $232,892 in reimbursements from insurance payers during the nine months ended September 30, 2024, and $0 during the three and nine months ended September 30, 2023.

Revenues decreased by $221,401, or 25.5%, to $647,867 for the three months ended September 30, 2024, from $869,268 for the three months ended September 30, 2023. The decrease in revenues is primarily attributed to a decrease in cash-pay patient care services as KindlyMD continues to shift toward insurance billing with commercial and governmental payers including Medicare, Medicaid, Select Health, Blue Cross Blue Shield, Cigna, and other commercial payers compared to the prior period.

During the quarter, the Company generated revenue from service affiliate agreements for the first time. Service affiliate agreement earnings for the period were $22,432.

Operating expenses increased by $316,820, or 22.9%, to $1,697,685 for the three months ended September 30, 2024, from $1,380,865 for the three months ended September 30, 2023. The increase in operating expenses is primarily attributable to an increase in general and administrative expenses, salaries and wages, and cost of revenues.

Net loss was $1,014,147 for the three months ended September 30, 2024, compared to a net loss of $515,146 for the three months ended September 30, 2023. Net loss per share decreased by $0.06, or 54.5%, to $(0.17) for the three months ended September 30, 2024, compared to $(0.11) for the three months ended September 30, 2023. KindlyMD management strives to look for opportunities to optimize revenue by increasing sales, acquiring additional clinics, improving margins, and controlling ongoing operating expenses.

As of September 30, 2024, the company had cash and cash equivalents of $3,642,944 and total working capital of $3,215,466.

As of November 8, 2024, the Company had 5,977,476 common shares outstanding.

About KindlyMD
KindlyMD is a patient-first healthcare and healthcare data company redefining value-based care and patient-centered medical services. Kindly MD leverages data analysis to deliver evidence-based, personalized solutions in order to reduce opioid use, improve health outcomes faster, and provide algorithmic guidance on the use of alternative medicine in healthcare. We collect and analyze valuable data on alternative treatments as well as biopsychosocial factors to provide better health outcomes faster. This results in valuable data for patients, the company, and the company's investors as we aim to become a leading source of evidence-based assessment and treatment data in the fight for patients against the opioid epidemic and as we strive to be a leader in redefined value-based care.

KindlyMD provides a patient-focused healthcare experience that integrates traditional medical evaluation and management with mental health integration and compliant alternative medicine education and inclusion. We focus on creating personalized care plans for each individual that get people back to work and life faster, reduce opioid use, and have high patient satisfaction.

Its specialty outpatient clinical services are reimbursed by Medicare, Medicaid, and commercial insurance contracts as well as offered on a fee-for-service basis. 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.

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

SOURCE: KindlyMD, Inc.