IMAC Holdings Reports 2020 Financial Results and Corporate Update
Financial Highlights from 4Q20:
- 4Q20 GAAP EPS of
$0.02 , compared with GAAP EPS of$(0.15) in 4Q19
Financial Highlights from FY 2020 (all comparisons are with
- Cash as of
December 31, 2020 was$2.6 million , compared with$0.4 million as ofDecember 31, 2019 - Total net patient revenue was
$12.8 million , compared with$15.1 million , a decline of 15% - Net loss was
$5.0 million or$0.45 per share, compared with a net loss of$6.5 million or$0.84 per share - Billable visits to
IMAC clinics declined 9% from 137,320 in 2019 to 125,633 in 2020
Corporate Highlights in Q4 2020 and Year To Date:
- Announced formation of The Back Space, a wholly owned subsidiary operating retail healthcare centers, and partnered with a Fortune 500 company. The Back Space specializes in chiropractic and spinal care services inside the partner’s locations.
- Expanded
Florida presence with acquisitions ofWillmitch Chiropractic and Synergy Healthcare inTampa andOrlando , respectively - Reached 1,000 members in its subscription-based wellness maintenance programs just one year after introducing them in
January 2020 - Announced regenerative medicine service expansion to include treatment of chronic wounds through cell-based amniotic-infused mesh applications in its IMAC Regeneration Centers
- Following FDA authorization, initiated Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease and completed first of three patient cohorts
- Maurice “Mo” Evans,
Michael Pruitt andCary Sucoff joined IMAC’s board of directors
“The first half of 2020 was difficult for
“Our development initiatives continued despite economic headwinds allowing us to introduce new service lines (telemedicine and fall prevention), expand our payor network (
“Already in 2021, we have completed our first of three clinical trial cohorts and expect to complete all dosing of trial participants this year. We have also completed acquisitions of two central
Results of Operations for the Twelve Months Ended
Net patient revenue declined 15% from
For the year ended
About
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 Press Contact:
lfristoe@imacrc.com
Investors:
(516) 222-2560
brets@coreir.com
Financial Tables Follow
Consolidated Balance Sheet
2020 | 2019 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 2,623,952 | $ | 373,689 | ||||
Accounts receivable, net | 1,513,683 | 1,258,325 | ||||||
Deferred compensation, current portion | 309,375 | 312,258 | ||||||
Other assets | 310,359 | 633,303 | ||||||
Total current assets | 4,757,369 | 2,577,575 | ||||||
Property and equipment, net | 1,777,042 | 3,692,009 | ||||||
Other assets: | ||||||||
2,040,696 | 2,040,696 | |||||||
Intangible assets, net | 6,611,551 | 7,169,072 | ||||||
Deferred equity costs | - | 170,274 | ||||||
Deferred compensation, net of current portion | 354,906 | 549,563 | ||||||
Security deposits | 388,074 | 499,488 | ||||||
Right of use asset | 3,816,035 | 3,719,401 | ||||||
Total other assets | 13,211,595 | 14,148,494 | ||||||
Total assets | $ | 19,746,006 | $ | 20,418,078 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 1,692,283 | $ | 2,909,666 | ||||
Patient deposits | 295,071 | 189,691 | ||||||
Notes payable, current portion | 2,527,324 | 1,422,554 | ||||||
Finance lease obligation, net of current portion | 18,242 | 17,473 | ||||||
Lines of credit | - | 79,961 | ||||||
Liability to issue common stock, current portion | 339,375 | 421,044 | ||||||
Operating lease liability, current portion | 1,078,107 | 1,025,247 | ||||||
Total current liabilities | 5,950,402 | 6,065,636 | ||||||
Long-term liabilities: | ||||||||
Notes payable, net of current portion | 1,958,883 | 2,109,065 | ||||||
Finance lease obligation, net of current portion | 48,323 | 66,565 | ||||||
Liability to issue common stock, net of current portion | 468,760 | 578,866 | ||||||
Operating lease liability, net of current portion | 3,506,484 | 3,660,654 | ||||||
Total liabilities | 11,932,852 | 12,480,786 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock - |
- | - | ||||||
Common stock; |
12,834 | 8,907 | ||||||
Additional paid-in capital | 25,465,007 | 20,050,634 | ||||||
Accumulated deficit | (15,045,783 | ) | (10,042,050 | ) | ||||
Non-controlling interest | (2,618,904 | ) | (2,080,199 | ) | ||||
Total stockholders’ equity | 7,813,154 | 7,937,292 | ||||||
Total liabilities and stockholders’ equity | $ | 19,746,006 | $ | 20,418,078 |
Consolidated Statement of Operations
For the Years Ended
2020 | 2019 | |||||||
Total patient revenue, net | $ | 12,822,711 | $ | 15,100,708 | ||||
Management fees | 12,487 | 25,318 | ||||||
Total revenue | 12,835,198 | 15,126,026 | ||||||
Operating expenses: | ||||||||
Patient expenses | 1,623,999 | 2,540,323 | ||||||
Salaries and benefits | 10,495,284 | 10,523,409 | ||||||
Share-based compensation | 392,050 | 392,217 | ||||||
Advertising and marketing | 933,338 | 1,238,352 | ||||||
Grant funds | (415,978 | ) | - | |||||
General and administrative | 4,566,554 | 5,064,437 | ||||||
Depreciation and amortization | 1,722,465 | 1,552,919 | ||||||
Total operating expenses | 19,307,712 | 21,311,657 | ||||||
Operating loss | (6,472,514 | ) | (6,185,631 | ) | ||||
Other income (expense): | ||||||||
Interest income | 6,073 | 7,794 | ||||||
Other income (expense) | 6 | (16,132 | ) | |||||
Beneficial conversion interest expense | - | (639,159 | ) | |||||
Gain on extinguishment of debt | 1,550,843 | - | ||||||
Gain (loss) on sale of assets | (63,779 | ) | 140,074 | |||||
Interest expense | (563,067 | ) | (258,535 | ) | ||||
Total other income (expenses) | 930,076 | (765,958 | ) | |||||
Net loss before income taxes | (5,542,438 | ) | (6,951,589 | ) | ||||
Income taxes | - | - | ||||||
Net loss | (5,542,438 | ) | (6,951,589 | ) | ||||
Net loss attributable to non-controlling interest | 538,705 | 454,359 | ||||||
Net loss attributable to |
$ | (5,003,733 | ) | $ | (6,497,230 | ) | ||
Net loss per share attributable to common stockholders | ||||||||
Basic and diluted | $ | (0.45 | ) | $ | (0.84 | ) | ||
Weighted average common shares outstanding | ||||||||
Basic and diluted | 11,050,144 | 7,753,642 |
Consolidated Statements of Cash Flows
For the Years Ended
Year Ended |
|||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (5,542,438 | ) | $ | (6,951,589 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 1,722,465 | 1,552,919 | |||||
Beneficial conversion interest expense | - | 639,159 | |||||
Share based compensation | 392,050 | 392,217 | |||||
Loss on disposition of assets | (63,779 | ) | |||||
Gain on extinguishment of debt | (1,550,843 | ) | |||||
Amortization of debt | 237,143 | ||||||
(Increase) decrease in operating assets: | |||||||
Accounts receivable, net | (234,518 | ) | (412,805 | ) | |||
Other assets | 162,891 | (271,654 | ) | ||||
Security deposits | 111,081 | (111,400 | ) | ||||
Increase (decrease) in operating liabilities: | |||||||
Accounts payable and accrued expenses | (1,460,376 | ) | 1,359,099 | ||||
Patient deposits | 105,380 | (264,689 | ) | ||||
Net cash used in operating activities | (5,993,386 | ) | (4,068,743 | ) | |||
Cash flows from investing activities: | |||||||
Purchase of property and equipment | (125,987 | ) | (1,200,216 | ) | |||
Purchase of license fee | (243,750 | ) | - | ||||
Acquisition of |
(200,000 | ) | - | ||||
Proceeds from sale of fixed assets | - | 147,096 | |||||
Net cash used in investing activities | (569,737 | ) | (1,053,120 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from initial public offering, net of related fees | - | 3,839,482 | |||||
Proceeds from warrants exercised | - | 357,345 | |||||
Proceeds from issuance of common stock | 5,181,855 | 1,311,697 | |||||
Proceeds from notes payable | 5,391,520 | 212,800 | |||||
Payments on notes payable | (1,505,055 | ) | (123,348 | ) | |||
Payments of debt issuance costs | (157,500 | ) | - | ||||
Proceeds from line of credit | - | 20,000 | |||||
Payments on line of credit | (79,961 | ) | (300,000 | ) | |||
Payments on finance lease obligation | (17,473 | ) | (16,740 | ) | |||
Net cash provided by financing activities | 8,813,386 | 5,301,236 | |||||
Net increase in cash | 2,250,263 | 179,373 | |||||
Cash, beginning of period | 373,689 | 194,316 | |||||
Cash, end of period | $ | 2,623,952 | $ | 373,689 | |||
Supplemental cash flow information: | |||||||
Interest paid | $ | 63,152 | $ | 97,147 | |||
Taxes paid | $ | - | $ | 18,533 | |||
Non Cash Financing and Investing: | |||||||
Business acquisition via stock issuance | $ | - | $ | 3,771,978 | |||
Debt discount notes payable | $ | 305,000 | $ | - | |||
Debt payments by sale of property and equipment | $ | 1,232,500 | $ | - | |||
Gain on extinguishment of debt | $ | 1,700,603 | $ | - |
Source: IMAC Holdings, Inc.