U.S. Markets open in 8 hrs 42 mins

IMAC Holdings Reports First Quarter 2020 Financial Results, Including 19% Growth of Patient Services Revenue Compared to 2019

BRENTWOOD, Tenn, May 14, 2020 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (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 announces first quarter financial results ending March 31, 2020.

Financial and Select Corporate Highlights from Q1 2020 (all comparisons are with IMAC for the year quarter ending March 31, 2019 unless otherwise indicated):

  • Patient service revenues increased 19% to $3.3 million for the three months ended March 31, 2020, compared to $2.8 million for the three months ended March 31, 2019.
     
  • Visits to clinics increased 2% to 31,603 for the three months ended March 31, 2020 compared to 30,824 during the three months ended March 31, 2019.
     
  • Net Revenue per visit increased from $89.86 per visit to $109.54 per visit from March 31, 2019 to March 31, 2020, respectively.
     
  • IMAC implemented a new telehealth option to allow active care patients direct and consistent communications with IMAC medical professionals even while observing “shelter in place” status.
     
  • The U.S. Department of Labor (DOL) has named IMAC Regeneration Centers as an approved provider of medical treatment, physical therapy and chiropractic services for their Office of Workers’ Compensation Programs (OWCP).
     
  • The company further expanded geographic reach with its first clinic operation in Florida with the purchase of Chiropractic Health of Southwest Florida, Inc. in Bonita Springs.
     
  • IMAC appointed Gerald M. Hayden, Jr. to its Board of Directors.         

“Despite the challenges of COVID-19, IMAC continued to serve clients and execute on its business plan. Earlier in the year we announced the initiation of our telehealth option, just as the ‘shelter in place’ orders began. Since then, we have logged over 1,000 telehealth appointments to supplement lost service days,” said Jeff Ervin, IMAC Holdings chief executive officer. “Based on the gradual flattening of the curve and the easing of temporary government restrictions where IMAC Regeneration Centers are located, all of our facilities have reopened to full operation as of May 4, 2020. In addition, the response to our membership program launched in January has been impressive, with nearly 500 active membership plans at the end of the quarter.”

Results of Operations for the Three Months Ended March 31, 2020 Compared to the Three Months Ended March 31, 2019

Patient service revenues increased 19% to $3.3 million for the three months ended March 31, 2020, compared to $2.8 million for the three months ended March 31, 2019. These increases were primarily due to the 2019 acquisitions of ISDI Holdings II and PHR Holdings.

Net cash provided by financing activities during the three months ended March 31, 2020 was $2.3 million, including proceeds from notes payable, net of related fees, which totaled $1.2 million and proceeds from the issuance of common stock of $1.4 million. Net cash provided by financing activities during the three months ended March 31, 2019 was $3.8 million, including proceeds from our initial public offering, net of related fees.

About IMAC Holdings, Inc.
IMAC Holdings 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. It owns or manages 14 outpatient clinics that provide regenerative, orthopedic and minimally invasive procedures and therapies. It has partnered with several active and former professional athletes, opening two Ozzie Smith IMAC Regeneration Centers, two David Price IMAC Regeneration Centers, one Tony Delk IMAC Regeneration Center, and three IMAC Regeneration Centers sponsored by Mike Ditka. IMAC’s outpatient medical clinics emphasize its focus around treating sports and orthopedic injuries without surgery or opioids.

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 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. More information about IMAC Holdings, Inc. is available at www.imacregeneration.com

IMAC Press Contact:
Laura Fristoe
lfristoe@imacrc.com

Investors:
Bret Shapiro
(516) 222-2560
brets@coreir.com

Financial Tables Follow.

IMAC HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

    March 31, 2020     December 31, 2019  
ASSETS                
Current assets:                
Cash   $ 1,281,940     $ 373,689  
Accounts receivable, net     1,421,131       1,258,325  
Deferred compensation, current portion     265,677       312,258  
Other assets     572,559       633,303  
Total current assets     3,541,307       2,577,575  
                 
Property and equipment, net     3,530,767       3,692,009  
                 
Other assets:                
Goodwill     2,040,696       2,040,696  
Intangible assets, net     7,072,302       7,169,072  
Deferred equity costs     143,655       170,274  
Deferred compensation, net of current portion     422,544       549,563  
Security deposits     551,284       499,488  
Right of use asset     3,800,997       3,719,401  
Total other assets     14,031,478       14,148,494  
                 
Total assets   $ 21,103,552     $ 20,418,078  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current liabilities:                
Accounts payable and accrued expenses   $ 3,278,967     $ 2,909,666  
Patient deposits     292,475       189,691  
Notes payable, current portion, net of deferred loan costs     4,089,567       1,422,554  
Finance lease obligation, current portion     17,662       17,473  
Line of credit     79,961       79,961  
Liability to issue common stock, current portion     501,844       421,044  
Operating lease liability, current portion     1,024,491       1,025,247  
Total current liabilities     9,284,967       6,065,636  
                 
Long-term liabilities:                
Notes payable, net of current portion     320,352       2,109,065  
Finance lease obligation, net of current portion     62,078       66,565  
Liability to issue common stock, net of current portion     417,266       578,866  
Operating lease liability, net of current portion     3,691,169       3,660,654  
Other non-current liabilities     45,000       -  
                 
Total liabilities     13,820,832       12,480,786  
                 
Stockholders’ equity:                
Preferred stock - $0.001 par value, 5,000,000 authorized, nil issued and outstanding at March 31, 2020 and December 31, 2019     -       -  
Common stock - $0.001 par value, 30,000,000 authorized, 10,009,098 and 8,913,258 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively     10,003       8,907  
Additional paid-in capital     21,465,115       20,050,634  
Accumulated deficit     (11,775,595 )     (10,042,050 )
Non-controlling interest     (2,416,803 )     (2,080,199 )
Total stockholders’ equity     7,282,720       7,937,292  
                 
Total liabilities and stockholders’ equity   $ 21,103,552     $ 20,418,078  


 

IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

    Three Months Ended
March 31,
 
    2020     2019  
Patient revenues, net   $ 3,309,069     $ 2,769,828  
                 
Management fees     12,487       -  
Total revenue     3,321,556       2,769,828  
                 
Operating expenses:                
Patient expenses     379,817       436,129  
Salaries and benefits     2,926,150       2,064,623  
Share-based compensation     81,084       3,749  
Advertising and marketing     241,817       347,016  
General and administrative     1,236,138       977,369  
Depreciation and amortization     450,495       285,567  
Total operating expenses     5,315,501       4,114,453  
                 
Operating loss     (1,993,945 )     (1,344,625 )
                 
Other expenses:                
Other expenses     -       (15,955 )
Beneficial conversion interest expense     -       (639,159 )
Interest expense     (76,204 )     (30,671 )
Total other expenses     (76,204 )     (685,785 )
                 
Net loss before income taxes     (2,070,149 )     (2,030,410 )
                 
Income taxes     -       -  
                 
Net loss     (2,070,149 )     (2,030,410 )
                 
Net loss attributable to the non-controlling interest     336,604       431,223  
                 
Net loss attributable to IMAC Holdings, Inc.   $ (1,733,545 )   $ (1,599,187 )
                 
Net loss per share attributable to common stockholders                
Basic and diluted   $ (0.18 )   $ (0.27 )
                 
Weighted average common shares outstanding                
Basic and diluted     9,611,252       5,919,856  
 

 

IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)

    Common Stock     Additional     Non-              
    Number of
Shares
    Par     Paid-In-
Capital
    Controlling
Interest
    Accumulated Deficit     Total  
                                     
Balance, December 31, 2018     4,553,623     $ 4,534     $ 1,233,966     $ (1,625,840 )   $ (3,544,820 )     (3,932,160 )
Common stock issued for initial public offering proceeds, net of related fees     850,000       850       3,503,314                       3,504,164  
Issuance of common stock in connection with convertible notes     449,217       449       2,245,636                       2,246,085  
Issuance of common stock in connection with acquisitions     1,410,183       1,410       7,247,798                       7,249,208  
Exercise of warrants     9,900       10       49,490                       49,500  
Net loss                             (431,223 )     (1,599,187 )     (2,030,410 )
Balance, March 31, 2019     7,252,923     $ 7,253     $  14,280,204     $ (2,057,063 )   $ (5,144,007 )   $ 7,086,387  


    Common Stock     Additional     Non-              
    Number of
Shares
    Par     Paid-In-
Capital
    Controlling
Interest
    Accumulated Deficit     Total  
                                     
Balance, December 31, 2019     8,913,258     $ 8,907     $ 20,050,634     $ (2,080,199 )   $ (10,042,050 )     7,937,292  
Issuance of common stock     1,095,840       1,096       1,376,122                       1,377,218  
Issuance of employee stock options                     38,359                       38,359  
Net loss                             (336,604 )     (1,733,545 )     (2,070,149 )
Balance, March 31, 2020      10,009,098     $ 10,003     $  21,465,115     $ (2,416,803 )   $ (11,775,595 )   $ 7,282,720  


IMAC HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

    Three Months Ended
March 31,
 
    2020     2019  
Cash flows from operating activities:                
Net loss   $ (2,070,149 )   $ (2,030,410 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     450,495       285,567  
Beneficial conversion interest expense     -       639,159  
Share based compensation     81,084       -  
Deferred rent     -       (12,969 )
(Increase) decrease in operating assets:                
Accounts receivable, net     (141,966 )     (361,450 )
Other assets     64,120       (230,796 )
Security deposits     (51,796 )     (3,310 )
Increase (decrease) in operating liabilities:                
Accounts payable and accrued expenses     408,221       361,428  
Patient deposits     102,784       485,392  
Lease incentive obligation     -       (26,759 )
Net cash used in operating activities     (1,157,207 )     (894,149 )
                 
Cash flows from investing activities:                
Purchase of property and equipment     (7,243 )     (42,426 )
Acquisition of IMAC Florida (Note 7)     (200,000 )     -  
Net cash used in investing activities     (207,243 )     (42,426 )
                 
Cash flows from financing activities:                
Proceeds from initial public offering, net of related fees     -       3,839,482  
Proceeds from warrants exercised     -       49,500  
Proceeds from issuance of common stock     1,403,837       -  
Proceeds from notes payable     1,200,000       100,000  
Payments on notes payable     (256,838 )     (27,053 )
Payments of debt issuance costs     (70,000 )     -  
Payments on line of credit     -       (150,000 )
Payments on finance lease obligation     (4,298 )     (4,118 )
Net cash provided by financing activities     2,272,701       3,807,811  
                 
Net increase in cash     908,251       2,871,237  
                 
Cash, beginning of period     373,689       194,316  
                 
Cash, end of period   $ 1,281,940     $ 3,065,553  
                 
Supplemental cash flow information:                
Interest paid   $ 27,412     $ 30,671  
Non cash financing and investing:                
Debt discount notes payable   $ 115,000     $ -