HealthLynked
Announces Fourth Quarter and Full Year 2022 Results
Ending a challenging financial year
with optimistic prospects for 2023
Naples, Fla. --
April 3, 2023 -- InvestorsHub NewsWire --
HealthLynked Corp. (OTCQB: HLYK), a global healthcare network
dedicated to care management of its members and a provider of
healthcare technologies connecting doctors, patients, and medical
data, announced its financial results for the fourth quarter and
full year ended December 31, 2022.
Full Year 2022 Financial
Results
For the
year ended December 31, 2022, HealthLynked reported revenue of
$5.86 million, a 10% decrease compared to $6.50 million in 2021.
The decline is primarily attributed to decreases in patient service
revenue at our Naples Women's Center and Bridging the Gap
facilities, as well as lower product revenue from MedOfficeDirect.
However, this was partially offset by revenue increases at our
Naples Center for Functional Medicine facility and revenue from the
newly-acquired Aesthetics Enhancements Unlimited practice.
A full
impairment charge of $2.75 million was recognized to write off the
carrying value of intangible assets related to our MedOfficeDirect
business, $1.98 million of which would have been amortized over the
next 34 months. The impairment charge resulted primarily from
declining revenues and ongoing losses since the acquisition of
MedOfficeDirect in October 2020. Despite the impairment charge,
recent key initiatives, including pricing overhaul, partnership
with Synchrony Bank's CareCredit, flexible payment options, and
targeted marketing initiatives such as its reward points program,
have positioned MedOfficeDirect for potential significant revenue
growth and profitability from product sales in 2023 and beyond.
Our
ACO/MSO business was moved to discontinued operations in 2022
following the sale of the business in January 2023. The sale
included an initial payment of $750,000. HealthLynked is still
expecting additional payments of up to $1,750,000 by July 2023,
potential 2022 performance year net shared savings paid in October
2023, and a final payment of up to $500,000 in October 2024.
Moreover, HealthLynked could earn potential equity consideration in
the event that the buyer completes an IPO by August 2024 of up to
$7 million in IPO shares.
Net
losses decreased by 15% from ($10.41) million in 2021 to ($8.82)
million in 2022, largely due to debt extinguishment charges of
$4.96 million in 2021 and higher non-cash income from changes in
fair value of contingent acquisition consideration in 2022, offset
by higher operating losses driven by the impairment charge in
2022.
Fourth Quarter 2022 Financial
Results
For the
fourth quarter of 2022, HealthLynked reported revenue of $1.41
million, an 11% decrease compared to $1.59 million in the fourth
quarter of 2021, primarily due to decreases in patient service
revenue at our Naples Women's Center and Bridging the Gap
facilities, and lower product revenue from MedOfficeDirect. This
was partially offset by revenue increases at our Naples Center for
Functional Medicine facility and revenue from the newly-acquired
Aesthetics Enhancements Unlimited practice.
Net
losses increased from ($1.72) million in the fourth quarter of 2021
to ($4.27) million in the fourth quarter of 2022, primarily due to
the MedOfficeDirect impairment charge.
Dr.
Michael Dent, HealthLynked's Chairman and Chief Executive Officer,
stated, "Despite the financial challenges of the past year, we
remain committed to providing top-quality care management services
and healthcare technologies to our members. With our innovative
technology solutions and focus on quality care, we are
well-positioned to achieve our goals and drive long-term value for
our shareholders."
George
O'Leary, HealthLynked's Chief Financial Officer, added, "The sale
of ACO Health Partners and the partnership with Palm Beach ACO is
one of our most significant initiatives of 2023 to date, with a
considerable reduction in our cash burn and milestones during 2023
and 2024 that should provide not only additional significant cash
on the balance sheet but also potential substantial value in the
event of the buyer's IPO transaction. All of these factors would
strengthen our balance sheet and offset the non-cash MOD impairment
recorded this quarter."
About HealthLynked
HealthLynked Corp. provides a solution for both patient members and
providers to improve healthcare through the efficient exchange of
medical information. The HealthLynked Network is a cloud-based
platform that allows members to connect with
their healthcare providers and
take more control of their healthcare. Members enter
their medical information, including medications, allergies, past
surgeries, and personal health records, in one convenient online
and secure location, free of charge. Participating
healthcare providers can
connect with their current and future patients through
the system. Benefits to in-network providers include the ability to
utilize the HealthLynked patent-pending patient access
hub "PAH" for patient analytics. Other benefits for
preferred providers include HLYK marketing tools to connect with
their active and inactive patients to improve patient retention,
access more accurate and current patient information, provide more
efficient online
scheduling, and to fill last-minute cancelations using the
Company's "real-time appointment scheduling" all within its mobile
application. Preferred
providers pay a monthly fee to access these
HealthLynked services. For additional information about
HealthLynked Corp., please visit www.healthlynked.com and
connect with HealthLynked on Twitter, Facebook, Instagram,
and LinkedIn.
Forward-Looking Statements &
Risk Factors
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Our actual
results, including as a result of any acquisitions, performance, or
achievements may differ materially from those expressed or implied
by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as
"may," "could," "expect," "intend," "plan," "seek," "anticipate,"
"believe," "estimate," "predict," "potential," "continue,"
"likely," "will," "would" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by our
management, and us are inherently uncertain. We caution you not to
place undue reliance on any forward-looking statements, which are
made as of the date of this press release. We undertake no
obligation to update publicly any of these forward-looking
statements to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward-looking statements, except to the extent required
by applicable laws. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements. Certain risks and uncertainties applicable to our
operations and us are described in the "Risk Factors" section of
our most recent Annual Report on Form 10-K and in other filings we
have made with the U.S. Securities and Exchange Commission. These
reports are publicly available at www.sec.gov.
HLYK Contact:
George O'Leary
Chief Financial Officer
goleary@healthlynked.com
+1 (800)-928-7144, ext. 103
HealthLynked Corp.
Selected Consolidated Financial
Data
Year and Quarter Ended December
31, 2022 and 2021
|
Year Ended December
31,
|
|
Quarter Ended December
31,
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
Statement of Operations
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
$
|
5,858,202
|
|
$
|
6,497,131
|
|
$
|
1,406,178
|
|
$
|
1,593,619
|
Loss from continuing operations
|
$
|
(8,067,482)
|
|
$
|
(10,700,238)
|
|
$
|
(4,077,090)
|
|
$
|
(1,524,038)
|
Income (loss) from operations of discontinued operations
|
$
|
(748,262)
|
|
$
|
287,656
|
|
$
|
(196,909)
|
|
$
|
(191,310)
|
Net loss
|
$
|
(8,815,744)
|
|
$
|
(10,700,238)
|
|
$
|
(4,273,999)
|
|
$
|
(1,715,348)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from continuing operations, basic and diluted:
|
$
|
(0.03)
|
|
$
|
(0.05)
|
|
$
|
(0.02)
|
|
$
|
(0.01)
|
Net loss per share, basic and diluted
|
$
|
(0.04)
|
|
$
|
(0.05)
|
|
$
|
(0.02)
|
|
$
|
(0.01)
|
Weighted average number of common shares, basic and diluted
|
|
243,419,736
|
|
|
224,658,709
|
|
|
253,548,126
|
|
|
237,308,625
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
Total Assets
|
$
|
4,580,716
|
|
$
|
10,694,556
|
|
|
|
|
|
|
Total Liabilities
|
$
|
4,266,266
|
|
$
|
3,490,662
|
|
|
|
|
|
|
Total Shareholders' Equity
|
$
|
314,450
|
|
$
|
7,203,894
|
|
|
|
|
|
|