Fifth consecutive quarter of comparable revenue growth 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 Fristoe
lfristoe@imacrc.com
Financial Tables
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 - $0.001 par value, 5,000,000 authorized, none issued and outstanding at June 30, 2022 and December 31, 2021, respectively. | - | - | ||||||
| Common stock - $0.001 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 | ||||
