BRENTWOOD, Tenn., Aug. 14, 2020 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: IMAC) (“IMAC” or the “Company”), a provider of innovative medical advancements and care, specializing in regenerative rehabilitation treatments without the use of surgery or opioids, today announces its financial results for its second quarter ended June 30, 2020.
Recent Financial and Select Corporate Highlights:
Completed a $2.65 million offering of common stock
Received more than $2.1 million in financial aid from the US Department of Health and Human Services and Small Business Administration
Announced results from an internal analysis of treatment outcomes for musculoskeletal conditions showing over 80% of IMAC patients reported improvement in movement
Wellness Membership subscribers increased 30% during the quarter to 637 members
Headcount was 133 employees at June 30, down 16% for the year
On July 24, 2020, sold real estate in Lexington, Kentucky in a sale-leaseback transaction for a sale price of $1,300,000, eliminating $1,232,000 of liabilities, while entering into a five-year lease of the property with the purchaser
Received U.S. Food and Drug Administration authorization to initiate a clinical study of its umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s disease
“The COVID-19 pandemic impacted on our day-to-day business, as reflected in decreases in key financial measurements compared to the previous quarter and the same period during 2019. While there was a decrease in patient visits and revenue, our implementation of advanced telemedicine therapy, acceleration of expense synergies, and utilization of government-sponsored aid helped us avoid a catastrophic reduction in business. We have already witnessed a recovery in business as evidenced in same-store visit growth of 7% in June 2020 as compared to June 2019,” noted Jeffrey Ervin, IMAC’s Chief Executive Officer.
“In addition, we received clearance to initiate a Phase 1 clinical trial of our umbilical cord-derived allogenic mesenchymal stem cells to improve movement for Parkinson’s disease patients. We appreciate the FDA for authorizing the trial to be conducted in IMAC clinics and our medical doctors are excited to be part of the process, which will significantly reduce trial costs. We are working to combine our already established movement and balance services with proprietary neurological services to expand our patient profile and competitive advantage beyond traditional rehabilitation centers. Furthermore, we believe our stem cell product could provide us with revenue expansion opportunities if our trial is successful.”
Results of Operations for the Three and Six Months Ended June 30, 2020
Patient service revenues decreased 32% to $2.6 million for the three months ended June 30, 2020, compared to $3.8 million for the three months ended June 30, 2019. This decrease was primarily due to the impact of COVID-19. Patient service revenues decreased 10% to $5.9 million for the six months ended June 30, 2020, compared to $6.5 million for the six months ended June 30, 2019. This decrease is attributable to the IMAC Chicago and IMAC Florida acquisitions that occurred in April 2019 and January 2020, respectively, along with the impact of COVID-19.
Net cash provided by financing activities during the six months ended June 30, 2020 was $5.9 million, including proceeds from notes payable, net of related fees and payments, which totaled $2.1 million, and proceeds from the issuance of common stock of $3.8 million. Net cash provided by financing activities during the six months ended June 30, 2019 was $4.1 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 15 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. 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 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.
IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, 2020
December 31, 2019
ASSETS
Current assets:
Cash
$
2,802,769
$
373,689
Accounts receivable, net
1,489,872
1,258,325
Deferred compensation, current portion
263,859
312,258
Other assets
336,958
633,303
Total current assets
4,893,458
2,577,575
Property and equipment, net
3,293,992
3,692,009
Other assets:
Goodwill
2,040,696
2,040,696
Intangible assets, net
7,081,218
7,169,072
Deferred equity costs
143,655
170,274
Deferred compensation, net of current portion
356,085
549,563
Security deposits
451,284
499,488
Right of use asset
3,600,198
3,719,401
Total other assets
13,673,136
14,148,494
Total assets
$
21,860,586
$
20,418,078
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
2,543,165
$
2,909,666
Patient deposits
351,142
189,691
Notes payable, current portion, net of deferred loan costs
4,471,874
1,422,554
Finance lease obligation, current portion
17,853
17,473
Line of credit
79,961
79,961
Liability to issue common stock, current portion
326,356
421,044
Operating lease liability, current portion
980,967
1,025,247
Total current liabilities
8,771,318
6,065,636
Long-term liabilities:
Notes payable, net of current portion
1,232,677
2,109,065
Finance lease obligation, net of current portion
57,542
66,565
Liability to issue common stock, net of current portion
362,979
578,866
Operating lease liability, net of current portion
3,482,242
3,660,654
Other non-current liabilities
30,000
-
Total liabilities
13,936,758
12,480,786
Stockholders’ equity:
Preferred stock - $0.001 par value, 5,000,000 authorized, nil issued and outstanding at June 30, 2020 and December 31, 2019
-
-
Common stock - $0.001 par value, 30,000,000 authorized, 11,839,973 and 8,913,258 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
11,834
8,907
Additional paid-in capital
24,079,504
20,050,634
Accumulated deficit
(13,806,283
)
(10,042,050
)
Non-controlling interest
(2,361,227
)
(2,080,199
)
Total stockholders’ equity
7,923,828
7,937,292
Total liabilities and stockholders’ equity
$
21,860,586
$
20,418,078
See accompanying notes to the unaudited condensed consolidated financial statements.
IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Patient revenues, net
$
2,572,580
$
3,756,755
$
5,881,649
$
6,526,583
Management fees
-
-
12,487
-
Total revenue
2,572,580
3,756,755
5,894,136
6,526,583
Operating expenses:
Patient expenses
405,367
927,778
785,184
1,363,907
Salaries and benefits
2,334,249
2,593,209
5,260,399
4,657,832
Share-based compensation
121,945
171,590
203,029
175,339
Advertising and marketing
174,350
349,328
416,167
696,344
Grant funds
(415,978
)
-
(415,978
)
-
General and administrative
1,208,457
1,429,822
2,444,595
2,407,191
Depreciation and amortization
453,651
396,989
904,146
682,556
Total operating expenses
4,282,041
5,868,716
9,597,542
9,983,169
Operating loss
(1,709,461
)
(2,111,961
)
(3,703,406
)
(3,456,586
)
Other income (expense):
Interest income
39
5
39
5
Other income (expenses)
-
665
-
(15,290
)
Beneficial conversion interest expense
-
-
-
(639,159
)
Loss on extinguishment of debt
(109,544
)
-
(109,544
)
-
Loss on disposal of assets
(21,225
)
-
(21,225
)
-
Interest expense
(134,921
)
(85,210
)
(211,125
)
(115,881
)
Total other (expenses)
(265,651
)
(84,540
)
(341,855
)
(770,325
)
Net loss before income taxes
(1,975,112
)
(2,196,501
)
(4,045,261
)
(4,226,911
)
Income taxes
-
-
-
-
Net loss
(1,975,112
)
(2,196,501
)
(4,045,261
)
(4,226,911
)
Net loss (income) attributable to the non-controlling interest
(55,576
)
295,733
281,028
726,956
Net loss attributable to IMAC Holdings, Inc.
$
(2,030,688
)
$
(1,900,768
)
$
(3,764,233
)
$
(3,499,955
)
Net loss per share attributable to common stockholders
Basic and diluted
$
(0.20
)
$
(0.23
)
$
(0.38
)
$
(0.50
)
Weighted average common shares outstanding
Basic and diluted
10,184,294
8,106,177
9,897,773
7,018,559
See accompanying notes to the unaudited condensed consolidated financial statements.
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
Issuance of common stock in connection with acquisitions
1,002,306
1,002
4,072,436
-
-
4,073,438
Exercise of warrants
61,569
62
307,783
-
-
307,845
Issuance of employee stock options
-
-
16,216
-
-
16,216
Net loss
-
-
-
(295,733
)
(1,900,768
)
(2,351,875
)
Balance, June 30, 2019
8,316,798
$
8,317
$
18,676,639
$
(2,352,796
)
$
(7,044,775
)
$
9,287,385
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
Issuance of common stock
1,830,875
1,831
2,576,820
-
-
2,578,651
Issuance of employee stock options
-
-
37,569
-
-
37,569
Net income (loss)
-
-
-
55,576
(2,030,688
)
(1,975,112
)
Balance, June 30, 2020
11,839,973
$
11,834
$
24,079,504
$
(2,361,227
)
$
(13,806,283
)
$
7,923,828
See accompanying notes to unaudited condensed consolidated financial statements.
IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended June 30,
2020
2019
Cash flows from operating activities:
Net loss
$
(4,045,261
)
$
(4,226,911
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
904,146
682,556
Beneficial conversion interest expense
-
639,159
Share based compensation
203,030
175,339
Loss on disposition of assets
(16,577
)
-
(Increase) decrease in operating assets:
Accounts receivable, net
(210,707
)
(259,712
)
Other assets
299,721
(98,685
)
Security deposits
48,204
(70,773
)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses
(329,056
)
675,820
Patient deposits
161,451
861,409
Lease incentive obligation
-
(57,262
)
Net cash used in operating activities
(2,985,049
)
(1,679,060
)
Cash flows from investing activities:
Purchase of property and equipment
(10,511
)
(389,469
)
Purchase of license fee
(243,750
)
-
Acquisition of IMAC Florida (Note 6)
(200,000
)
-
Net cash used in investing activities
(454,261
)
(389,469
)
Cash flows from financing activities:
Proceeds from initial public offering, net of related fees
-
3,839,482
Proceeds from warrants exercised
-
357,345
Proceeds from issuance of common stock
3,774,617
-
Proceeds from notes payable
2,891,520
100,000
Payments on notes payable
(719,104
)
(54,377
)
Payments of debt issuance costs
(70,000
)
-
Proceeds from line of credit
-
20,000
Payments on line of credit
-
(150,000
)
Payments on finance lease obligation
(8,643
)
(6,835
)
Net cash provided by financing activities
5,868,390
4,105,615
Net increase in cash
2,429,080
2,037,086
Cash, beginning of period
373,689
194,316
Cash, end of period
$
2,802,769
$
2,231,402
Supplemental cash flow information:
Interest paid
$
56,058
$
30,671
Non cash financing and investing:
Debt discount notes payable
$
115,000
$
-
Business acquisition via stock issuance
$
-
$
3,771,978
See accompanying notes to the unaudited condensed consolidated financial statements.
