Company Reports Sixth Consecutive Quarter of Comparable Revenue Growth
BRENTWOOD, Tenn., Nov. 15, 2022 (GLOBE NEWSWIRE) — IMAC Holdings, Inc. (Nasdaq: BACK) (“IMAC” “BACK” or the “Company”), today reported its preliminary financial results for the third quarter ended September 30, 2022.
Financial and Corporate Highlights from Q3 2022:
- Total Revenue increased 9% to $3.78 million, compared with $3.48 million in the third quarter 2021
- The BackSpace grew visits 1,818% and 28% for the comparable and sequential quarter, respectively
- Completed the third and final cohort of our Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease
- Completed a $3.9 million Registered Direct and Private Placement offering
- Amended NASDAQ trading symbol from “IMAC” to “BACK”
“The entire IMAC team worked hard to produce a solid quarter and achieved our sixth consecutive comparable quarter of revenue growth. We delivered same-store revenue growth in our outpatient medical clinics while The BackSpace retail chiropractic centers achieved record quarter visits and revenue. Additionally, we were able to reduce liabilities by $1 million during the quarter and finish the quarter with immaterial note payable balances,” said Jeffrey Ervin, CEO of BACK.
“We continue to work towards optimizing performance while leveraging our consumer reach to launch complementary services. The orthopedic business remains our core service offering and we recognized that obesity is a significant contributor to joint pain and inflammation our orthopedic patients experience. As a result, we implemented a medical weight loss and hormone optimization service during the quarter which we anticipate generating material revenue during the first quarter, 2023. We also launched a custom vitamin and supplement product line, Vita Eternum, to offer USDA certified organic vitamins to our orthopedic and weight loss patients in store and through our ecommerce platform.”
“Overall, I’m proud of the effort our team demonstrated by executing initiatives we said we would accomplish. Perhaps our greatest achievement for the quarter was administering the final dose of the third and final cohort of our Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease,” concluded Mr. Ervin.
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 three business segments: outpatient medical centers, The Back Space, 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 The Back Company retail spinal health and wellness treatment centers deliver chiropractic care within Walmart locations. 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, 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.imacholdings.com.
IMAC Press Contact:
Laura Fristoe
lfristoe@imacrc.com
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Patient revenues, net | $ | 3,786,228 | $ | 3,487,482 | $ | 12,714,302 | $ | 9,975,104 | ||||||||
| Other income | – | 14 | – | 6,092 | ||||||||||||
| Management fees | – | – | – | 36,068 | ||||||||||||
| Total revenue | 3,786,228 | 3,487,496 | 12,714,302 | 10,017,264 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Patient expenses | 279,800 | 361,141 | 1,137,508 | 1,042,504 | ||||||||||||
| Salaries and benefits | 3,326,481 | 3,377,070 | 10,819,277 | 9,127,992 | ||||||||||||
| Share-based compensation | 84,105 | 188,490 | 353,795 | 422,266 | ||||||||||||
| Advertising and marketing | 244,583 | 294,046 | 857,633 | 875,123 | ||||||||||||
| General and administrative | 1,866,037 | 1,603,056 | 5,539,198 | 4,483,587 | ||||||||||||
| Depreciation and amortization | 481,526 | 450,579 | 1,366,912 | 1,314,584 | ||||||||||||
| Loss on disposal or impairment of assets | 3,849,855 | – | 3,932,116 | – | ||||||||||||
| Total operating expenses | 10,132,387 | 6,274,382 | 24,006,439 | 17,266,056 | ||||||||||||
| Operating loss | (6,346,159 | ) | (2,786,886 | ) | (11,292,137 | ) | (7,248,792 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 2,792 | 1,754 | 4,114 | 1,754 | ||||||||||||
| Other income | – | – | – | 135 | ||||||||||||
| Other expense | 12,718 | ) | 816 | (39,986 | ) | (3,070 | ) | |||||||||
| Interest expense | (2,976 | ) | (108,315 | ) | (11,840 | ) | (410,822 | ) | ||||||||
| Total other expenses | 12,534 | ) | (105,745 | ) | (47,712 | ) | (412,003 | ) | ||||||||
| Net loss before income taxes | (6,333,625 | ) | (2,892,631 | ) | (11,339,849 | ) | (7,660,795 | ) | ||||||||
| Income taxes | – | – | – | – | ||||||||||||
| Net loss | (6,333,625 | ) | (2,892,631 | ) | (11,339,849 | ) | (7,660,795 | ) | ||||||||
| Net loss per share attributable to common stockholders | ||||||||||||||||
| Basic and diluted | $ | (0.23 | ) | $ | (0.07 | ) | $ | (0.42 | ) | $ | (0.27 | ) | ||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic and diluted | 27,424,985 | 25,322,356 | 26,865,713 | 21,446,726 | ||||||||||||
IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2022 (Unaudited) |
December 31, 2021 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,833,391 | $ | 7,118,980 | ||||
| Accounts receivable, net | 3,155,550 | 1,209,333 | ||||||
| Deferred compensation, current portion | 121,227 | 191,657 | ||||||
| Other assets | 373,812 | 547,536 | ||||||
| Total current assets | 6,483,980 | 9,067,506 | ||||||
| Property and equipment, net | 1,767,005 | 2,323,163 | ||||||
| Other assets: | ||||||||
| Goodwill | 4,499,796 | 4,661,796 | ||||||
| Intangible assets, net | 1,432,493 | 5,797,469 | ||||||
| Deferred compensation, net of current portion | – | 73,816 | ||||||
| Security deposits | 301,720 | 357,050 | ||||||
| Right of use assets | 4,047,245 | 4,948,393 | ||||||
| Total other assets | 10,281,254 | 15,838,524 | ||||||
| Total assets | $ | 18,532,239 | $ | 27,229,193 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,578,738 | $ | 2,523,332 | ||||
| Patient deposits | 552,027 | 320,917 | ||||||
| Notes payable, current portion | 58,904 | 254,487 | ||||||
| Finance lease obligation, current portion | 19,682 | 19,050 | ||||||
| Liability to issue common stock, current portion | 197,855 | 337,935 | ||||||
| Operating lease liability, current portion | 1,446,662 | 1,478,140 | ||||||
| Total current liabilities | 3,853,868 | 4,933,861 | ||||||
| Long-term liabilities: | ||||||||
| Notes payable, net of current portion | 62,862 | 104,697 | ||||||
| Finance lease obligation, net of current portion | 14,431 | 29,273 | ||||||
| Liability to issue common stock, net of current portion | – | 189,375 | ||||||
| Operating lease liability, net of current portion | 3,046,176 | 4,018,926 | ||||||
| Total liabilities | 6,977,337 | 9,276,132 | ||||||
| Commitments and Contingencies – Note 14 | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock – $0.001 par value, 5,000,000 authorized, none issued and outstanding at September 30, 2022 and December 31, 2021, respectively. | – | – | ||||||
| Common stock – $0.001 par value, 60,000,000 authorized; 32,754,757 and 26,876,409 shares issued at September 30, 2022 and December 31, 2021, respectively; and 32,503,349 and 26,218,167 outstanding at September 30, 2022 and December 31, 2021, respectively. | 32,503 | 26,218 | ||||||
| Additional paid-in capital | 51,069,182 | 46,133,777 | ||||||
| Accumulated deficit | (39,546,783 | ) | (28,206,934 | ) | ||||
| Total stockholders’ equity | 11,554,902 | 17,953,061 | ||||||
| Total liabilities and stockholders’ equity | $ | 18,532,239 | $ | 27,229,193 | ||||
