IMAC Holdings Reports 2020 Financial Results and Corporate Update

March 4, 2021

BRENTWOOD, Tenn., March 04, 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 year ended December 31, 2020.

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 IMAC for the year ended December 31, 2019 unless otherwise indicated):

  • Cash as of December 31, 2020 was $2.6 million, compared with $0.4 million as of December 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 of Willmitch Chiropractic and Synergy Healthcare in Tampa and Orlando, 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 and Cary Sucoff joined IMAC’s board of directors

“The first half of 2020 was difficult for IMAC to navigate and our team struggled through challenges we may never experience again. The adversity was tackled as a cohesive management team, strengthening our operations to deliver on the business plan entering 2021. As a result, we completed 2020 with a cash position 600% greater than 2019, and accounts payable and accrued expenses 42% less than 2019. Additionally, we were able to consolidate debt at lower interest rates and maintain a clean equity table for our shareholders while experiencing a downturn in revenues and traffic,” commented Jeffrey Ervin, IMAC’s Chief Executive Officer.

“Our development initiatives continued despite economic headwinds allowing us to introduce new service lines (telemedicine and fall prevention), expand our payor network (US Department of Labor and self-insured employers), and grow our service footprint including our first Florida location. We believe the greatest achievement for IMAC value creation in 2020 came with the culmination of nearly three years of work which resulted in FDA authorization for our Investigational New Drug application and subsequent Phase 1 clinical trial dosing.

“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 Florida clinics to expand the IMAC Regeneration Centers in high demand areas. Finally, we are very excited about our upcoming launch of IMAC’s newest flagship brand, The Back Space, which will provide in-store spinal health and chiropractic care in retail healthcare centers in collaboration with our Fortune 500 partner. Our newly announced partnership will open retail locations serving an underserved population in a growing market as we launch our test market in the coming months. We have come a long way in the two years since our initial public offering and look forward to providing updates on our progress.”

Results of Operations for the Twelve Months Ended December 31, 2020 Compared to the Twelve Months Ended December 31, 2019

Net patient revenue declined 15% from $15.1 million in 2019 to $12.8 million in 2020, primarily due to the COVID-19 outbreak that negatively affected patient volumes in the second, third, and fourth quarters. The decrease in operating expenses from $21.3 million in 2019 to $19.3 million in 2020 was driven primarily by a decline in direct patient expenses, advertising and marketing expenses, and general and administrative expenses. An increase in operating loss to $6.5 million in 2020 versus a loss of $6.2 million in 2019 was driven by the decline in total revenue partially offset by the decline in total operating expenses. Net loss attributable to IMAC Holdings improved to $5.0 million in 2020 from $6.5 million in 2019 primarily due to a gain on the extinguishment of debt.

For the year ended December 31, 2020, the Company reported cash and cash equivalents of $2.6 million, compared with approximately $0.4 million as of December 31, 2019.

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

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 raise additional funding, its ability to maintain and grow its business, variability of 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

IMAC Press Contact:
Laura Fristoe

Bret Shapiro
(516) 222-2560

Financial Tables Follow

IMAC Holdings, Inc.
Consolidated Balance Sheet
December 31, 2020 and 2019

    2020     2019  
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:                
Goodwill     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  
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 - $0.001 par value, 5,000,000 authorized, nil issued and outstanding at December 31, 2020 and 2019     -       -  
Common stock; $0.001 par value, 30,000,000 authorized; 12,839,972 and 8,913,258 shares issued at December 31, 2020 and 2019, respectively; 12,747,055 and 8,913,258 shares outstanding at December 31, 2020 and 2019, respectively.     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  

IMAC Holdings, Inc.
Consolidated Statement of Operations
For the Years Ended December 31, 2020 and 2019

    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 IMAC Holdings, Inc.   $ (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  

IMAC Holdings, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2020 and 2019

    Year Ended December 31,  
    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 Florida     (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   $ -  

Primary Logo

Source: IMAC Holdings, Inc.