IMAC Holdings Reports Record Revenue of $5M in Second Quarter

·8 min read
IMAC Holdings, Inc.
IMAC Holdings, Inc.

Fifth consecutive quarter of comparable revenue growth from sustainable price improvements

BRENTWOOD, Tenn., Aug. 15, 2022 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: BACK) (“IMAC” “BACK” or the “Company”), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic and neurological treatments, today reported its preliminary financial results for the second quarter ended June 30, 2022.

Financial and Corporate Highlights from Q2 2022:

  • Total Revenue was $5.0 million, compared with $3.5 million in Q2 2021, an increase of 45%

  • Patient visits to IMAC clinics 42,495, down 5.1% from Q2 2021; same store increase .9%

  • Sequential quarter The BackSpace visit growth of 207%

  • Successfully completed its pilot program for The Back Space retail chiropractic concept at select Walmart stores, with a commitment to triple its store count with at least 20 additional locations in Walmart over the next 12 months

  • Launched certified organic vitamin and supplement product line

  • Amended NASDAQ trading symbol from “IMAC” to “BACK”

  • Completed a $3.9m Registered Direct offering

“We achieved record revenue during the second quarter of 2022. The team executed several initiatives to improve operating efficiency in the IMAC Regeneration Centers while also driving greater recognition and adoption of The BackSpace, our retail spinal health clinics,” said Jeffrey Ervin, CEO of BACK.

“The IMAC medical clinics continued price improvements as revenue per visit increased substantially from the comparable quarter in 2021. The increase came from operating and payor mix improvements as we are finding greater success by lessening the dependence on Medicare as a payor.

“We are encouraged by the consumer adoption of The BackSpace spinal health and wellness services. The BackSpace experienced over 200% sequential quarter growth, and over 1,000% same store growth from the comparable quarter. We expect The BackSpace to have a greater impact on total revenue in the second half of the year based on continued growth and a ten percent price increase for chiropractic memberships. Additionally, we believe the recent addition of stretching services expands our universe of prospective patients,” 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.

###

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

Financial Tables


IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

June 30,
2022
(Unaudited)

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,614,190

 

 

$

7,118,980

 

Accounts receivable, net

 

 

3,055,017

 

 

 

1,209,333

 

Deferred compensation, current portion

 

 

173,963

 

 

 

191,657

 

Other assets

 

 

528,769

 

 

 

547,536

 

Total current assets

 

 

5,371,939

 

 

 

9,067,506

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

2,050,074

 

 

 

2,323,163

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

4,661,796

 

 

 

4,661,796

 

Intangible assets, net

 

 

5,351,779

 

 

 

5,797,469

 

Deferred compensation, net of current portion

 

 

-

 

 

 

73,816

 

Security deposits

 

 

351,819

 

 

 

357,050

 

Right of use assets

 

 

4,280,675

 

 

 

4,948,393

 

Total other assets

 

 

14,646,069

 

 

 

15,838,524

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

22,068,082

 

 

$

27,229,193

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

2,100,709

 

 

$

2,523,332

 

Patient deposits

 

 

506,495

 

 

 

320,917

 

Notes payable, current portion

 

 

78,618

 

 

 

254,487

 

Finance lease obligation, current portion

 

 

19,469

 

 

 

19,050

 

Liability to issue common stock, current portion

 

 

387,230

 

 

 

337,935

 

Operating lease liability, current portion

 

 

1,470,241

 

 

 

1,478,140

 

Total current liabilities

 

 

4,562,762

 

 

 

4,933,861

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Notes payable, net of current portion

 

 

72,562

 

 

 

104,697

 

Finance lease obligation, net of current portion

 

 

19,432

 

 

 

29,273

 

Liability to issue common stock, net of current portion

 

 

-

 

 

 

189,375

 

Operating lease liability, net of current portion

 

 

3,318,566

 

 

 

4,018,926

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

7,973,322

 

 

 

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 June 30, 2022 and December 31, 2021, respectively.

 

 

-

 

 

 

-

 

Common stock - $0.001 par value, 30,000,000 authorized; 27,543,409 and 26,876,409 shares issued at June 30, 2022 and December 31, 2021, respectively; and 27,289,911 and 26,218,167 outstanding at June 30, 2022 and December 31, 2021, respectively.

 

 

27,290

 

 

 

26,218

 

Additional paid-in capital

 

 

47,280,628

 

 

 

46,133,777

 

Accumulated deficit

 

 

(33,213,158

)

 

 

(28,206,934

)

Total stockholders’ equity

 

 

14,094,760

 

 

 

17,953,061

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

22,068,082

 

 

$

27,229,193

 


IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patient revenues, net

 

$

5,033,088

 

 

$

3,462,814

 

 

$

8,928,075

 

 

$

6,487,622

 

Other income

 

 

-

 

 

 

2,701

 

 

 

-

 

 

 

6,078

 

Management fees

 

 

-

 

 

 

-

 

 

 

-

 

 

 

36,068

 

Total revenue

 

 

5,033,088

 

 

 

3,465,515

 

 

 

8,928,075

 

 

 

6,529,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patient expenses

 

 

397,235

 

 

 

339,951

 

 

 

857,708

 

 

 

681,363

 

Salaries and benefits

 

 

3,782,518

 

 

 

2,996,674

 

 

 

7,492,796

 

 

 

5,750,922

 

Share-based compensation

 

 

80,571

 

 

 

123,169

 

 

 

269,691

 

 

 

233,776

 

Advertising and marketing

 

 

242,562

 

 

 

315,529

 

 

 

613,050

 

 

 

581,077

 

General and administrative

 

 

1,857,915

 

 

 

1,661,193

 

 

 

3,673,162

 

 

 

2,880,531

 

Depreciation and amortization

 

 

438,612

 

 

 

441,804

 

 

 

885,384

 

 

 

864,005

 

(Gain) loss on disposal or impairment of assets

 

 

34,832

 

 

 

(49

)

 

 

82,261

 

 

 

3,994

 

Total operating expenses

 

 

6,834,245

 

 

 

5,878,271

 

 

 

13,874,052

 

 

 

10,995,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(1,801,157

)

 

 

(2,412,756

)

 

 

(4,945,977

)

 

 

(4,465,900

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1,321

 

 

 

-

 

 

 

1,321

 

 

 

-

 

Other expense

 

 

(39,530

)

 

 

243

 

 

 

(52,704

)

 

 

243

 

Interest expense

 

 

(4,733

)

 

 

(126,228

)

 

 

(8,864

)

 

 

(302,507

)

Total other expenses

 

 

(42,942

)

 

 

(125,985

)

 

 

(60,247

)

 

 

(302,264

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss before income taxes

 

 

(1,844,099

)

 

 

(2,538,741

)

 

 

(5,006,224

)

 

 

(4,768,164

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(1,844,099

)

 

 

(2,538,741

)

 

 

(5,006,224

)

 

 

(4,768,164

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.07

)

 

$

(0.10

)

 

$

(0.19

)

 

$

(0.24

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

26,800,926

 

 

 

25,143,201

 

 

 

26,584,532

 

 

 

19,476,793

 


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

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(5,006,224

)

 

$

(4,768,164

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

885,384

 

 

 

864,005

 

Share based compensation

 

 

269,691

 

 

 

233,776

 

Loss on disposition of assets

 

 

82,261

 

 

 

3,994

 

Changes in operating assets:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(1,845,684

)

 

 

173,340

 

Other assets

 

 

18,767

 

 

 

(630,626

)

Security deposits

 

 

5,231

 

 

 

(7,349

)

Right of use/lease liability

 

 

(40,541

)

 

 

-

 

Accounts payable and accrued expenses

 

 

(417,271

)

 

 

(317,776

)

Patient deposits

 

 

185,578

 

 

 

118,172

 

Net cash from operating activities

 

 

(5,862,808

)

 

 

(4,330,628

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(256,279

)

 

 

(240,938

)

Brand development

 

 

-

 

 

 

(66,495

)

Acquisitions

 

 

-

 

 

 

(731,909

)

Proceeds from sale of property and equipment

 

 

2,060

 

 

 

2,650

 

Net cash from investing activities

 

 

(254,219

)

 

 

(1,036,692

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

829,663

 

 

 

19,005,323

 

Payments on notes payable

 

 

(208,004

)

 

 

(2,624,102

)

Payments on finance lease obligation

 

 

(9,422

)

 

 

(16,243

)

Net cash from financing activities

 

 

612,237

 

 

 

16,364,978

 

 

 

 

 

 

 

 

 

 

Net increase in cash

 

 

(5,504,790

)

 

 

10,997,658

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

7,118,980

 

 

 

2,623,952

 

 

 

 

 

 

 

 

 

 

Cash, end of period

 

$

1,614,190

 

 

$

13,621,610

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

Interest paid

 

$

8,864

 

 

$

183,849