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BRENTWOOD, Tenn., May 13, 2021 (GLOBE NEWSWIRE) — IMAC Holdings, Inc. (Nasdaq: IMAC) (“IMAC” or the “Company”), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, today announced financial results for the first quarter ended March 31, 2021.
Financial Highlights from 1Q 2021 (all comparisons are for the quarter ended March 31, 2020, unless otherwise indicated):
- Cash as of March 31, 2021 was $15.6 million compared to $2.6 million as of December 31, 2020
- Total revenue was $3.1 million, compared with $3.3 million, a decline of 8%
- Net loss was $2.0 million or $0.15 per share, compared with a net loss of approximately $1.7 million or $0.18 per share
Corporate Highlights in Q1 2021 and Year To Date:
- Announced the formation of The Back Space, a wholly owned subsidiary, operating retail healthcare centers within a Fortune 500 partner’s retail setting. The Back Space opened its first location in Murfreesboro, Tennessee, and announced a ten-store test market to deliver chiropractic and spinal care services to alleviate neck and back pain.
- Completed a fully subscribed public offering and 15% over-allotment generating $18.9 million of gross proceeds
- Completed the first of three patient cohorts of its FDA-authorized, Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease
- Finalized the acquisition of two Florida clinics, Willmitch Chiropractic and Synergy Healthcare in Tampa and Orlando, respectively
- Announced regenerative medicine service expansion to include treatment of chronic wounds through cell-based amniotic-infused mesh applications in its IMAC Regeneration Centers
- Appointed Sheri Gardzina as Chief Financial Officer and Secretary
- Reached 1,000 members in its subscription-based wellness maintenance programs just one year after introducing them in January 2020
“While the beginning of 2021 still presented a COVID impact to our service mix, our lengthy development efforts advanced our asset portfolio in multiple ways. We increased our cash position with the strength of several new institutional investors, executed two acquisitions at favorable valuations in strategic markets, advanced our clinical trial with the first cohort completion, and implemented our brand strategy with the launch of our retail chiropractic centers,” commented Jeffrey Ervin, IMAC’s Chief Executive Officer.
“The soft launch of our newest flagship brand, The Back Space, provides in-store spinal health and chiropractic care in retail healthcare centers in collaboration with our Fortune 500 partner. Our newly announced partnership has initiated the opening of 10 retail locations serving an underserved population in a growing market and we are proud to have already generated revenue with the opening of our first location.
“In addition, we completed our first of three clinical trial cohorts and expect to complete all dosing of trial participants this year, which will position us to continue the development of our umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease. This comes on the heels of a recently announced additional offering of cell-based amniotic-infused mesh applications for chronic wounds, which we are providing for patients in our IMAC Regeneration Centers.
“We also continue to strategically expand the presence of our medical clinics throughout the United States as industry valuations remain at a discount to historical valuations. We have built a robust pipeline of targets and anticipate continued expansion in Florida to meet growing demand for non-surgical sports medicine.
“Finally, we believe we are very well positioned to resume our steady growth with our strongest cash position in history. I’m most excited about the quality of investors that participated in our recent financing, which grossed $18.9 million including a 15% over-allotment,” added Mr. Ervin.
Results of Operations for the Three Months Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020
Net patient revenue declined 9% from $3.3 million in 2020 to $3.0 million in 2020, despite a year-over-year increase in visits by 21%. The decrease in operating expenses from $5.3 million in 2020 to $5.1 million in 2021 was driven primarily by a decline in direct patient expenses, advertising and marketing expenses, and general and administrative expenses. The operating loss of $2.0 million in 2021 compared to a loss of $2.0 million in 2020. This also resulted in a net loss attributable to IMAC Holdings of $2.0 million in 2021 from $1.7 million in 2020 and was driven by the decline in total revenue and addition of expenses related to the launch of The Back Space, executing the first cohort of the clinical trial, and non-APIC charges related to the sale of equity.
For the period ended March 31, 2021, the Company reported cash and cash equivalents of $15.6 million, compared with approximately $1.3 million as of March 31, 2020.
About IMAC Holdings, Inc.
IMAC was created in March 2015 to expand on the footprint of the original IMAC Regeneration Center, which opened in Kentucky in August 2000. IMAC Regeneration Centers combine life-science advancements with traditional medical care for movement restricting diseases and conditions. IMAC owns or manages more than 15 outpatient clinics that provide regenerative, orthopedic and minimally invasive procedures and therapies. It has partnered with several active and former professional athletes including Ozzie Smith, David Price, Mike Ditka and Tony Delk. IMAC’s outpatient medical clinics emphasize treating sports and orthopedic injuries and movement-restricting diseases without surgery or opioids. More information about IMAC Holdings, Inc. is available at www.imacregeneration.com.
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.imacregeneration.com
IMAC Press Contact:
Financial Tables Follow
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|Accounts receivable, net||1,846,154||1,513,683|
|Deferred compensation, current portion||330,364||309,375|
|Total current assets||18,299,002||4,757,369|
|Property and equipment, net||1,830,693||1,777,042|
|Intangible assets, net||6,821,940||6,611,551|
|Deferred compensation, net of current portion||287,562||354,906|
|Right of use asset||3,956,697||3,816,035|
|Total other assets||13,498,351||13,211,595|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and accrued expenses||$||2,018,883||$||1,692,283|
|Notes payable, current portion, net of deferred loan costs||2,595,498||2,527,324|
|Finance lease obligation, current portion||25,661||18,242|
|Liability to issue common stock, current portion||364,575||339,375|
|Operating lease liability, current portion||1,182,383||1,078,107|
|Total current liabilities||6,600,854||5,950,402|
|Notes payable, net of current portion||180,212||1,958,883|
|Finance lease obligation, net of current portion||43,637||48,323|
|Liability to issue common stock, net of current portion||468,760||468,760|
|Operating lease liability, net of current portion||3,501,876||3,506,484|
|Preferred stock – $0.001 par value, 5,000,000 authorized, nil issued and outstanding at March 31, 2021 and December 31, 2020, respectively.||–||–|
|Common stock – $0.001 par value, 30,000,000 authorized; 24,664,973 and 12,839,972 shares issued at March 31, 2021 and December 31, 2020, respectively; and 24,006,731 and 12,747,055 outstanding at March 31, 2021 and December 31, 2020, respectively.||24,007||12,747|
|Additional paid-in capital||42,702,810||25,465,094|
|Total stockholders’ equity||22,832,707||7,813,154|
|Total liabilities and stockholders’ equity||$||33,628,046||$||19,746,006|
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|Three Months Ended
|Patient revenues, net||$||3,024,808||$||3,309,069|
|Salaries and benefits||2,754,248||2,926,150|
|Advertising and marketing||265,548||241,817|
|General and administrative||1,219,338||1,236,138|
|Depreciation and amortization||422,201||450,495|
|Total operating expenses||5,113,354||5,315,501|
|Gain/loss on disposition of assets||(4,043||)||–|
|Total other expenses||(180,322||)||(76,204||)|
|Net loss before income taxes||(2,229,423||)||(2,070,149||)|
|Net loss attributable to the non-controlling interest||239,388||336,604|
|Net loss attributable to IMAC Holdings, Inc.||$||(1,990,035||)||$||(1,733,545||)|
|Net loss per share attributable to common stockholders|
|Basic and diluted||$||(0.15||)||$||(0.18||)|
|Weighted average common shares outstanding|
|Basic and diluted||13,448,567||9,611,252|
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|Three Months Ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||422,201||450,495|
|Share based compensation||110,607||81,084|
|Loss on disposition of assets||4,043||–|
|(Increase) decrease in operating assets:|
|Accounts receivable, net||(332,471||)||(141,966||)|
|Increase (decrease) in operating liabilities:|
|Accounts payable and accrued expenses||326,600||408,221|
|Net cash used in operating activities||(1,749,902||)||(1,157,207||)|
|Cash flows from investing activities:|
|Purchase of property and equipment||(65,769||)||(7,243||)|
|Acquisitions in Florida (Note 6)||(563,500||)||(200,000||)|
|Proceeds from sale of fixed assets||1,250||–|
|Net cash used in investing activities||(683,064||)||(207,243||)|
|Cash flows from financing activities:|
|Proceeds from issuance of common stock||17,209,924||1,403,837|
|Proceeds from notes payable||–||1,200,000|
|Payments on notes payable||(1,788,711||)||(256,838||)|
|Payments of debt issuance costs||–||(70,000||)|
|Payments on finance lease obligation||(4,487||)||(4,298||)|
|Net cash provided by financing activities||15,416,726||2,272,701|
|Net increase in cash||12,983,760||908,251|
|Cash, beginning of period||2,623,952||373,689|
|Cash, end of period||$||15,607,712||$||1,281,940|
|Supplemental cash flow information:|
|Non cash financing and investing:|
|Debt discount notes payable||$||–||$||115,000|