IMAC Holdings Reports Year End 2022 Financial Results and Corporate Update
March 31 2023 - 8:00PM
IMAC Holdings, Inc. (Nasdaq: BACK) (“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 reported its financial
results for the year ended December 31, 2022.
Financial Highlights from FY
2022 (all
comparisons are with IMAC for the year
ended December 31 unless otherwise indicated):
- Annual revenue was $16.1 million,
up 14.3% from $14.1 million in 2021
- Patient revenue increased to $105
per visit compared to $84 per visit in 2021
Corporate Highlights in Q4
2022 and Year
To Date
2023:
- Completed the sale of The BackSpace
to Curis Functional Health.
- Completed the third and final
cohort dosing of our Phase 1 clinical study of umbilical
cord-derived allogenic mesenchymal stem cells for the treatment of
bradykinesia due to Parkinson’s Disease.
- Sold one clinic and closed four
small clinics while reducing corporate salaries and headcount.
- Executed a Letter of Intent to
merge with Brain Scientific, Inc.
“We ended 2022 and started 2023 by taking steps
to right-size the company in anticipation of executing a strategic
merger. Earlier this month, we executed a Letter of Intent to merge
with Brain Scientific, Inc. in the summer of 2023 and believe the
companies have the ability to combine resources to provide
neurological solutions, from diagnosis to treatment, for
Parkinson’s, Alzheimer’s, and stroke. The combination of IMAC and
Brain Scientific provides a pathway to become a leader,
destination, and trusted supplier in the growing field of neuro
deficit disorders, diagnosis and treatment,” said Jeff Ervin, CEO
of IMAC.
“I am excited about the team’s efforts to
complete a number of initiatives in the face of adverse situations
to establish a platform for a merger and an amended vision for the
company. Completing the dosing of our final patient in our Clinical
Trial for Bradykinesia due to Parkinson’s Disease is a testament to
our medical doctors and regulatory advisors over a long process to
advance stem cell research. We expect immaterial costs to complete
the Phase I trial data collection. Other company initiatives were
related to patient service delivery and locations. Inflationary
pressures on staff retention during 2022 pressured our smaller
clinic performance. As a result, we sold and closed select clinics
outside of a concentrated geographic region to focus on medical
clinics that have historically generated consistent earnings.
Additionally, we sold The BackSpace during the first quarter of
2023 which allowed us to further reduce corporate costs while
concentrating efforts towards the remaining medical clinics.”
“Financially, we ended 2022 with record annual
revenue, 14% revenue growth over 2021, and continued improvement of
patient expenses as a percentage of revenue to increase our gross
margin percentage. Going forward, the reduction of our service
locations will impact revenue, although we anticipate a greater
reduction in salaries and G&A to improve our overall operating
margins in 2023. Additionally, we incurred a one-time $0.30 per
share impairment loss in 2022 due to the decline in equity value
which will reduce future amortization costs by greater than 60
percent.”
“Finally, we believe that we have taken
necessary steps to execute a strategic merger while focusing our
efforts on IMAC’s core strength. IMAC will continue to deliver
non-opioid, non-surgical treatments for optimal movement and
function without pain. Our orthopedic business will continue to
lead the company in the near term. We often find obesity to be a
contributing factor to orthopedic pain. The addition of medical
weight loss services has provided a widely accepted complement to
our orthopedic care that guides users to better spinal health and
physical function. We also expect to grow our neurological services
and expand our sales footprint with the addition of Brain
Scientific diagnostic tools and see further synergies if we are
able to complete the combination of both company’s resources in
2023.”
Results of Operations for the Twelve
Months Ended December 31,
2022 Compared to the
Twelve Months Ended December 31,
2021
Total revenue increased 14% from $14.1 million
in 2021 to $16.1 million in 2022. Total revenues increased $2.0
million due to a full year of service from one acquisition,
same-store growth, and the opening of retail chiropractic clinics.
The increase in operating expenses from $24.4 million in 2021
to $34.4 million in 2022 was driven by an $8.4 million loss on
impairment, resulting in an increase in operating loss
to $18.2 million versus a loss of $10.0 million in
2021.
For the year ended December 31, 2022, the
Company reported cash and cash equivalents of $0.8 million,
compared with approximately $7.1 million as
of December 31, 2021.
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 two
business segments: outpatient medical centers 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 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, variability of operating
results, its ability to maintain and enhance its brand, its
development and introduction of new products and services, its
ability to secure capital funding, 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 registration statement
and in its other 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.
IMAC Press Contact:Laura Fristoelfristoe@imacrc.com
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