IMAC Holdings Reports Record Revenue of $5M in Second Quarter
08/15/2022 - 11:30 AM
Fifth c onsecutive q uarter of c omparable r evenue g rowth from sustainable price improvements
BRENTWOOD, Tenn., Aug. 15, 2022 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: BACK) (“IMAC” “BACK” or the “Company”), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic and neurological treatments, today reported its preliminary financial results for the second quarter ended June 30, 2022.
Financial and Corporate Highlights from Q2 2022 :
Total Revenue was $5.0 million , compared with $3.5 million in Q2 2021, an increase of 45% Patient visits to IMAC clinics 42,495, down 5.1% from Q2 2021; same store increase .9% Sequential quarter The BackSpace visit growth of 207% 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 certified organic vitamin and supplement product line Amended NASDAQ trading symbol from “IMAC” to “BACK” Completed a $3.9m Registered Direct offering “We achieved record revenue during the second quarter of 2022. The team executed several initiatives to improve operating efficiency in the IMAC Regeneration Centers while also driving greater recognition and adoption of The BackSpace, our retail spinal health clinics,” said Jeffrey Ervin, CEO of BACK.
“The IMAC medical clinics continued price improvements as revenue per visit increased substantially from the comparable quarter in 2021. The increase came from operating and payor mix improvements as we are finding greater success by lessening the dependence on Medicare as a payor.
“We are encouraged by the consumer adoption of The BackSpace spinal health and wellness services. The BackSpace experienced over 200% sequential quarter growth, and over 1,000% same store growth from the comparable quarter. We expect The BackSpace to have a greater impact on total revenue in the second half of the year based on continued growth and a ten percent price increase for chiropractic memberships. Additionally, we believe the recent addition of stretching services expands our universe of prospective patients,” concluded Mr. Ervin.
About IMAC Holdings, Inc. IMAC Holdings owns and manages health and wellness centers that deliver sports medicine, orthopedic care, and restorative joint and tissue therapies for movement restricting pain and neurodegenerative diseases. IMAC is comprised of three business segments: outpatient medical centers, The Back Space, and a clinical research division. With treatments to address both young and aging populations, IMAC Holdings owns or manages outpatient medical clinics that deliver regenerative rehabilitation services as a minimally invasive approach to acute and chronic musculoskeletal and neurological health problems. IMAC’s The Back Company retail spinal 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.imacholdings.com .
IMAC Press Contact: Laura Fristoelfristoe@imacrc.com
Financial Tab les
IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2022 (Unaudited) December 31, 2021 ASSETS Current assets: Cash $ 1,614,190 $ 7,118,980 Accounts receivable, net 3,055,017 1,209,333 Deferred compensation, current portion 173,963 191,657 Other assets 528,769 547,536 Total current assets 5,371,939 9,067,506 Property and equipment, net 2,050,074 2,323,163 Other assets: Goodwill 4,661,796 4,661,796 Intangible assets, net 5,351,779 5,797,469 Deferred compensation, net of current portion - 73,816 Security deposits 351,819 357,050 Right of use assets 4,280,675 4,948,393 Total other assets 14,646,069 15,838,524 Total assets $ 22,068,082 $ 27,229,193 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and accrued expenses $ 2,100,709 $ 2,523,332 Patient deposits 506,495 320,917 Notes payable, current portion 78,618 254,487 Finance lease obligation, current portion 19,469 19,050 Liability to issue common stock, current portion 387,230 337,935 Operating lease liability, current portion 1,470,241 1,478,140 Total current liabilities 4,562,762 4,933,861 Long-term liabilities: Notes payable, net of current portion 72,562 104,697 Finance lease obligation, net of current portion 19,432 29,273 Liability to issue common stock, net of current portion - 189,375 Operating lease liability, net of current portion 3,318,566 4,018,926 Total liabilities 7,973,322 9,276,132 Commitments and Contingencies – Note 14 Stockholders’ equity: Preferred stock - $0.00 1 par value, 5,000,000 authorized, none issued and outstanding at June 30, 2022 and December 31, 2021, respectively. - - Common stock - $0.00 1 par value, 30,000,000 authorized; 27,543,409 and 26,876,409 shares issued at June 30, 2022 and December 31, 2021, respectively; and 27,289,911 and 26,218,167 outstanding at June 30, 2022 and December 31, 2021, respectively. 27,290 26,218 Additional paid-in capital 47,280,628 46,133,777 Accumulated deficit (33,213,158 ) (28,206,934 ) Total stockholders’ equity 14,094,760 17,953,061 Total liabilities and stockholders’ equity $ 22,068,082 $ 27,229,193
IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Patient revenues, net $ 5,033,088 $ 3,462,814 $ 8,928,075 $ 6,487,622 Other income - 2,701 - 6,078 Management fees - - - 36,068 Total revenue 5,033,088 3,465,515 8,928,075 6,529,768 Operating expenses: Patient expenses 397,235 339,951 857,708 681,363 Salaries and benefits 3,782,518 2,996,674 7,492,796 5,750,922 Share-based compensation 80,571 123,169 269,691 233,776 Advertising and marketing 242,562 315,529 613,050 581,077 General and administrative 1,857,915 1,661,193 3,673,162 2,880,531 Depreciation and amortization 438,612 441,804 885,384 864,005 (Gain) loss on disposal or impairment of assets 34,832 (49 ) 82,261 3,994 Total operating expenses 6,834,245 5,878,271 13,874,052 10,995,668 Operating loss (1,801,157 ) (2,412,756 ) (4,945,977 ) (4,465,900 ) Other income (expense): Interest income 1,321 - 1,321 - Other expense (39,530 ) 243 (52,704 ) 243 Interest expense (4,733 ) (126,228 ) (8,864 ) (302,507 ) Total other expenses (42,942 ) (125,985 ) (60,247 ) (302,264 ) Net loss before income taxes (1,844,099 ) (2,538,741 ) (5,006,224 ) (4,768,164 ) Income taxes - - - - Net loss (1,844,099 ) (2,538,741 ) (5,006,224 ) (4,768,164 ) Net loss per share attributable to common stockholders Basic and diluted $ (0.07 ) $ (0.10 ) $ (0.19 ) $ (0.24 ) Weighted average common shares outstanding Basic and diluted 26,800,926 25,143,201 26,584,532 19,476,793
IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30, 2022 2021 Cash flows from operating activities: Net loss $ (5,006,224 ) $ (4,768,164 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 885,384 864,005 Share based compensation 269,691 233,776 Loss on disposition of assets 82,261 3,994 Changes in operating assets: Accounts receivable, net (1,845,684 ) 173,340 Other assets 18,767 (630,626 ) Security deposits 5,231 (7,349 ) Right of use/lease liability (40,541 ) - Accounts payable and accrued expenses (417,271 ) (317,776 ) Patient deposits 185,578 118,172 Net cash from operating activities (5,862,808 ) (4,330,628 ) Cash flows from investing activities: Purchase of property and equipment (256,279 ) (240,938 ) Brand development - (66,495 ) Acquisitions - (731,909 ) Proceeds from sale of property and equipment 2,060 2,650 Net cash from investing activities (254,219 ) (1,036,692 ) Cash flows from financing activities: Proceeds from issuance of common stock 829,663 19,005,323 Payments on notes payable (208,004 ) (2,624,102 ) Payments on finance lease obligation (9,422 ) (16,243 ) Net cash from financing activities 612,237 16,364,978 Net increase in cash (5,504,790 ) 10,997,658 Cash, beginning of period 7,118,980 2,623,952 Cash, end of period $ 1,614,190 $ 13,621,610 Supplemental cash flow information: Interest paid $ 8,864 $ 183,849