KindlyMD(R) Announces Third Quarter 2024 Financial Results
Rhea-AI Summary
KindlyMD (NASDAQ: KDLY) reported Q3 2024 financial results with insurance reimbursements of $106,567, up 16.4% sequentially. Revenue decreased 25.5% to $647,867, primarily due to shifting from cash-pay to insurance billing. The company achieved over 90% insurance coverage in Utah and introduced a $500,000 share repurchase program. Operating expenses increased 22.9% to $1,697,685, leading to a net loss of $1,014,147 ($0.17 per share). The company generated first-time service affiliate agreement earnings of $22,432 and maintained $3.6M in cash reserves.
Positive
- Insurance reimbursements increased 16.4% sequentially to $106,567
- Achieved 90% insurance coverage in Utah, including United Healthcare
- First-time service affiliate agreement revenue of $22,432
- Strong cash position of $3.6M with $3.2M working capital
- Implemented $500,000 share repurchase program
Negative
- Revenue declined 25.5% YoY to $647,867
- Operating expenses increased 22.9% YoY to $1,697,685
- Net loss widened to $1,014,147 from $515,146 YoY
- Loss per share increased to $0.17 from $0.11 YoY
News Market Reaction 1 Alert
On the day this news was published, KDLY declined 8.52%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Q3 Reimbursements from insurance payors totaled
KindlyMD now provides more than
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
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
Revenues decreased by
During the quarter, the Company generated revenue from service affiliate agreements for the first time. Service affiliate agreement earnings for the period were
Operating expenses increased by
Net loss was
As of September 30, 2024, the company had cash and cash equivalents of
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.
KINDLY MD, INC.
CONDENSED BALANCE SHEETS
| September 30, 2024 |
|
| December 31, 2023 |
| |||
| (Unaudited) |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
| $ | 3,642,944 |
|
| $ | 525,500 |
|
Accounts receivable |
|
| 45,323 |
|
|
| 28,001 |
|
Inventories, net |
|
| 2,750 |
|
|
| 63,202 |
|
Prepaid expenses and other current assets |
|
| 250,316 |
|
|
| 225 |
|
Total Current Assets |
|
| 3,941,333 |
|
|
| 616,928 |
|
|
|
|
|
|
|
|
| |
Property and equipment, net |
|
| 183,349 |
|
|
| 235,292 |
|
Operating lease right-of-use assets |
|
| 188,204 |
|
|
| 235,706 |
|
Security deposits |
|
| 11,276 |
|
|
| 11,276 |
|
TOTAL ASSETS |
| $ | 4,324,162 |
|
| $ | 1,099,202 |
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
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Current Liabilities |
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Accounts payable and accrued expenses |
| $ | 431,516 |
|
| $ | 329,810 |
|
Customer deposits |
|
| 2,750 |
|
|
| 3,425 |
|
Current portion of operating lease liabilities |
|
| 100,982 |
|
|
| 94,696 |
|
Current portion of finance lease liabilities |
|
| 2,020 |
|
|
| - |
|
Current portion of notes payable, net |
|
| 188,599 |
|
|
| 148,517 |
|
Derivative liability |
|
| - |
|
|
| 238,000 |
|
Total Current Liabilities |
|
| 725,867 |
|
|
| 814,448 |
|
|
|
|
|
|
|
|
| |
Operating lease liabilities, net of current portion |
|
| 106,114 |
|
|
| 164,295 |
|
Finance lease liabilities, net of current portion |
|
| 8,126 |
|
|
|
|
|
Notes payable, net of current portion |
|
| - |
|
|
| 228,871 |
|
TOTAL LIABILITIES |
|
| 840,107 |
|
|
| 1,207,614 |
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Stockholders' Equity (Deficit) |
|
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|
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|
Preferred Stock, |
|
| - |
|
|
| - |
|
Common stock, |
|
| 5,977 |
|
|
| 4,618 |
|
Additional paid-in capital |
|
| 10,252,258 |
|
|
| 4,045,024 |
|
Accumulated deficit |
|
| (6,774,180 | ) |
|
| (4,158,054 | ) |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) |
|
| 3,484,055 |
|
|
| (108,412 | ) |
|
|
|
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| |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
| $ | 4,324,162 |
|
| $ | 1,099,202 |
|
KINDLY MD, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
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| 2023 |
| |||||
Revenues |
| $ | 647,867 |
|
| $ | 869,268 |
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| $ | 2,115,953 |
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| $ | 3,009,151 |
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Operating Expenses |
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Cost of revenues |
|
| 7,790 |
|
|
| 20,224 |
|
|
| 77,481 |
|
|
| 128,356 |
|
Salaries and wages |
|
| 1,138,561 |
|
|
| 995,078 |
|
|
| 2,973,420 |
|
|
| 3,037,938 |
|
General and administrative |
|
| 525,758 |
|
|
| 339,559 |
|
|
| 1,312,980 |
|
|
| 1,083,278 |
|
Depreciation |
|
| 25,576 |
|
|
| 26,004 |
|
|
| 76,210 |
|
|
| 77,670 |
|
Total Operating Expenses |
|
| 1,697,685 |
|
|
| 1,380,865 |
|
|
| 4,440,091 |
|
|
| 4,327,242 |
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LOSS FROM OPERATIONS |
|
| (1,049,818 | ) |
|
| (511,597 | ) |
|
| (2,324,138 | ) |
|
| (1,318,091 | ) |
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Other Income (Expenses) |
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Other income |
|
| 45,330 |
|
|
| 9,001 |
|
|
| 71,198 |
|
|
| 46,302 |
|
Interest expense |
|
| (9,659 | ) |
|
| (12,550 | ) |
|
| (385,348 | ) |
|
| (20,744 | ) |
Loss on extinguishment of debt |
|
| - |
|
|
| - |
|
|
| (38,889 | ) |
|
| - |
|
Gain on change in fair value of derivative liability |
|
| - |
|
|
| - |
|
|
| 61,051 |
|
|
| - |
|
Total Other Income (Expenses) |
|
| 35,671 |
|
|
| (3,549 | ) |
|
| (291,988 | ) |
|
| 25,558 |
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NET LOSS BEFORE INCOME TAXES |
|
| (1,014,147 | ) |
|
| (515,146 | ) |
|
| (2,616,126 | ) |
|
| (1,292,533 | ) |
INCOME TAX EXPENSE |
|
| - |
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|
| - |
|
|
| - |
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|
| - |
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NET LOSS |
| $ | (1,014,147 | ) |
| $ | (515,146 | ) |
| $ | (2,616,126 | ) |
| $ | (1,292,533 | ) |
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LOSS PER COMMON SHARE - BASIC AND DILUTED |
| $ | (0.17 | ) |
| $ | (0.11 | ) |
| $ | (0.50 | ) |
| $ | (0.29 | ) |
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WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED |
|
| 5,944,590 |
|
|
| 4,521,242 |
|
|
| 5,193,533 |
|
|
| 4,445,714 |
|
KINDLY MD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Nine Months Ended |
| ||||||
| 2024 |
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| 2023 |
| |||
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CASH FLOWS FROM OPERATING ACTIVITIES |
|
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Net loss |
| $ | (2,616,126 | ) |
| $ | (1,292,533 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
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|
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Stock-based compensation |
|
| 132,994 |
|
|
| 719,169 |
|
Depreciation expense |
|
| 76,210 |
|
|
| 77,670 |
|
Loss on extinguishment of debt |
|
| 38,889 |
|
|
| - |
|
Gain on change in fair value of derivative liability |
|
| (61,051 | ) |
|
| - |
|
Amortization of debt discounts |
|
| 367,046 |
|
|
| 1,912 |
|
Amortization of right-of-use assets |
|
| 75,226 |
|
|
| 52,415 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (17,322 | ) |
|
| 4,161 |
|
Inventories |
|
| 60,452 |
|
|
| (47,131 | ) |
Prepaid expenses and other current assets |
|
| (250,091 | ) |
|
| 33,398 |
|
Security deposits |
|
| - |
|
|
| 3,229 |
|
Accounts payable and accrued expenses |
|
| 101,706 |
|
|
| 262,667 |
|
Customer deposits |
|
| (675 | ) |
|
| (2,050 | ) |
Operating lease liabilities |
|
| (79,619 | ) |
|
| (53,713 | ) |
Net cash used in operating activities |
|
| (2,172,361 | ) |
|
| (240,806 | ) |
|
|
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CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
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Purchases of property and equipment |
|
| (13,291 | ) |
|
| (14,420 | ) |
Net cash used in investing activities |
|
| (13,291 | ) |
|
| (14,420 | ) |
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|
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CASH FLOWS FROM FINANCING ACTIVITIES |
|
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Net proceeds from issuance of notes payable |
|
| 45,000 |
|
|
| - |
|
Net proceeds from issuance of related party note payable |
|
| - |
|
|
| 250,373 |
|
Net proceeds from issuance of common shares and warrants in connection with a public offering |
|
| 5,860,650 |
|
|
| - |
|
Repayments of related party note payable |
|
| - |
|
|
| (30,820 | ) |
Repayments of notes payable |
|
| (601,724 | ) |
|
| - |
|
Repayments of finance lease liabilities |
|
| (830 | ) |
|
| - |
|
Net cash provided by financing activities |
|
| 5,303,096 |
|
|
| 219,553 |
|
|
|
|
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NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
| 3,117,444 |
|
|
| (35,673 | ) |
|
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CASH AND CASH EQUIVALENTS |
|
|
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|
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Beginning of the period |
|
| 525,500 |
|
|
| 186,918 |
|
End of the period |
| $ | 3,642,944 |
|
| $ | 151,245 |
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
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Cash paid for interest |
| $ | 19,177 |
|
| $ | 16,133 |
|
Cash paid for income taxes |
| $ | - |
|
| $ | - |
|
|
|
|
|
|
|
|
| |
NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Debt discounts on notes payable |
| $ | 10,556 |
|
| $ | - |
|
Debt discount on related party note payable |
| $ | - |
|
| $ | 16,627 |
|
Fair value of derivative liability recognized upon issuance of notes payable |
| $ | 38,000 |
|
| $ | - |
|
Extinguishment of derivative liability upon settlement of notes payable |
| $ | 214,949 |
|
| $ | - |
|
Finance purchases of property and equipment |
| $ | 10,976 |
|
| $ | - |
|
Operating lease right-of-use asset and liability measurement |
| $ | 27,724 |
|
| $ | - |
|
Contact Information
Valter Pinto
Managing Director, KCSA
kindlymd@kcsa.com
(212) 896-1254
SOURCE: KindlyMD, Inc.
View the original press release on accesswire.com
FAQ
What was KindlyMD's (KDLY) Q3 2024 revenue?
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What was KindlyMD's (KDLY) net loss in Q3 2024?
What is KindlyMD's (KDLY) insurance coverage in Utah as of Q3 2024?
