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: Laura Fristoe
lfristoe@imacrc.com
Investors:Bret Shapiro(516)
222-2560brets@coreir.com
Financial Tables Follow
IMAC HOLDINGS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(Unaudited)
|
|
March 31,2021 |
|
|
December 31,2020 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
15,607,712 |
|
|
$ |
2,623,952 |
|
Accounts receivable, net |
|
|
1,846,154 |
|
|
|
1,513,683 |
|
Deferred compensation, current portion |
|
|
330,364 |
|
|
|
309,375 |
|
Other assets |
|
|
514,772 |
|
|
|
310,359 |
|
Total current assets |
|
|
18,299,002 |
|
|
|
4,757,369 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
1,830,693 |
|
|
|
1,777,042 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Goodwill |
|
|
2,040,696 |
|
|
|
2,040,696 |
|
Intangible assets, net |
|
|
6,821,940 |
|
|
|
6,611,551 |
|
Deferred compensation, net of current portion |
|
|
287,562 |
|
|
|
354,906 |
|
Security deposits |
|
|
391,456 |
|
|
|
388,407 |
|
Right of use asset |
|
|
3,956,697 |
|
|
|
3,816,035 |
|
Total other assets |
|
|
13,498,351 |
|
|
|
13,211,595 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
33,628,046 |
|
|
$ |
19,746,006 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
2,018,883 |
|
|
$ |
1,692,283 |
|
Patient deposits |
|
|
413,854 |
|
|
|
295,071 |
|
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 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
10,795,339 |
|
|
|
11,932,852 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
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 |
|
Accumulated deficit |
|
|
(17,035,818 |
) |
|
|
(15,045,783 |
) |
Non-controlling interest |
|
|
(2,858,292 |
) |
|
|
(2,618,904 |
) |
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(Unaudited)
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
2020 |
|
Patient revenues, net |
|
$ |
3,024,808 |
|
|
$ |
3,309,069 |
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
3,377 |
|
|
|
- |
|
Management fees |
|
|
36,068 |
|
|
|
12,487 |
|
Total revenue |
|
|
3,064,253 |
|
|
|
3,321,556 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Patient expenses |
|
|
341,412 |
|
|
|
379,817 |
|
Salaries and benefits |
|
|
2,754,248 |
|
|
|
2,926,150 |
|
Share-based compensation |
|
|
110,607 |
|
|
|
81,084 |
|
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 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(2,049,101 |
) |
|
|
(1,993,945 |
) |
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
Gain/loss on disposition of assets |
|
|
(4,043 |
) |
|
|
- |
|
Interest expense |
|
|
(176,279 |
) |
|
|
(76,204 |
) |
Total other expenses |
|
|
(180,322 |
) |
|
|
(76,204 |
) |
|
|
|
|
|
|
|
|
|
Net loss before income
taxes |
|
|
(2,229,423 |
) |
|
|
(2,070,149 |
) |
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(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(Unaudited)
|
|
Three Months EndedMarch 31, |
|
|
|
2021 |
|
|
2020 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,229,423 |
) |
|
$ |
(2,070,149 |
) |
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 |
) |
Other assets |
|
|
(167,193 |
) |
|
|
64,120 |
|
Security deposits |
|
|
(3,049 |
) |
|
|
(51,796 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
326,600 |
|
|
|
408,221 |
|
Patient deposits |
|
|
118,783 |
|
|
|
102,784 |
|
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 |
) |
Brand development |
|
|
(55,045 |
) |
|
|
- |
|
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: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
63,359 |
|
|
$ |
27,412 |
|
Non cash financing and
investing: |
|
|
|
|
|
|
|
|
Debt discount notes
payable |
|
$ |
- |
|
|
$ |
115,000 |
|
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