IMAC - IMAC Holdings Reports 2020 Financial Results and Corporate Update
BRENTWOOD, Tenn., March 04, 2021 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: 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 announced financial results for the year ended December 31, 2020.
Financial Highlights from 4Q20 :
- 4Q20 GAAP EPS of $0.02, compared with GAAP EPS of $(0.15) in 4Q19
Financial Highlights from FY 2020 (all comparisons are with IMAC for the year ended December 31, 2019 unless otherwise indicated):
- Cash as of December 31, 2020 was $2.6 million, compared with $0.4 million as of December 31, 2019
- Total net patient revenue was $12.8 million, compared with $15.1 million, a decline of 15%
- Net loss was $5.0 million or $0.45 per share, compared with a net loss of $6.5 million or $0.84 per share
- Billable visits to IMAC clinics declined 9% from 137,320 in 2019 to 125,633 in 2020
Corporate Highlights in Q4 2020 and Year To Date:
- Announced formation of The Back Space, a wholly owned subsidiary operating retail healthcare centers, and partnered with a Fortune 500 company. The Back Space specializes in chiropractic and spinal care services inside the partner’s locations.
- Expanded Florida presence with acquisitions of Willmitch Chiropractic and Synergy Healthcare in Tampa and Orlando, respectively
- Reached 1,000 members in its subscription-based wellness maintenance programs just one year after introducing them in January 2020
- Announced regenerative medicine service expansion to include treatment of chronic wounds through cell-based amniotic-infused mesh applications in its IMAC Regeneration Centers
- Following FDA authorization, initiated Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease and completed first of three patient cohorts
- Maurice “Mo” Evans, Michael Pruitt and Cary Sucoff joined IMAC’s board of directors
“The first half of 2020 was difficult for IMAC to navigate and our team struggled through challenges we may never experience again. The adversity was tackled as a cohesive management team, strengthening our operations to deliver on the business plan entering 2021. As a result, we completed 2020 with a cash position 600% greater than 2019, and accounts payable and accrued expenses 42% less than 2019. Additionally, we were able to consolidate debt at lower interest rates and maintain a clean equity table for our shareholders while experiencing a downturn in revenues and traffic,” commented Jeffrey Ervin, IMAC’s Chief Executive Officer.
“Our development initiatives continued despite economic headwinds allowing us to introduce new service lines (telemedicine and fall prevention), expand our payor network (US Department of Labor and self-insured employers), and grow our service footprint including our first Florida location. We believe the greatest achievement for IMAC value creation in 2020 came with the culmination of nearly three years of work which resulted in FDA authorization for our Investigational New Drug application and subsequent Phase 1 clinical trial dosing.
“Already in 2021, we have completed our first of three clinical trial cohorts and expect to complete all dosing of trial participants this year. We have also completed acquisitions of two central Florida clinics to expand the IMAC Regeneration Centers in high demand areas. Finally, we are very excited about our upcoming launch of IMAC’s newest flagship brand, The Back Space, which will provide in-store spinal health and chiropractic care in retail healthcare centers in collaboration with our Fortune 500 partner. Our newly announced partnership will open retail locations serving an underserved population in a growing market as we launch our test market in the coming months. We have come a long way in the two years since our initial public offering and look forward to providing updates on our progress.”
Results of Operations for the Twelve Months Ended December 31, 2020 Compared to the Twelve Months Ended December 31, 2019
Net patient revenue declined 15% from $15.1 million in 2019 to $12.8 million in 2020, primarily due to the COVID-19 outbreak that negatively affected patient volumes in the second, third, and fourth quarters. The decrease in operating expenses from $21.3 million in 2019 to $19.3 million in 2020 was driven primarily by a decline in direct patient expenses, advertising and marketing expenses, and general and administrative expenses. An increase in operating loss to $6.5 million in 2020 versus a loss of $6.2 million in 2019 was driven by the decline in total revenue partially offset by the decline in total operating expenses. Net loss attributable to IMAC Holdings improved to $5.0 million in 2020 from $6.5 million in 2019 primarily due to a gain on the extinguishment of debt.
For the year ended December 31, 2020, the Company reported cash and cash equivalents of $2.6 million, compared with approximately $0.4 million as of December 31, 2019.
About IMAC Holdings, Inc.
IMAC 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. IMAC owns or manages more than 15 outpatient clinics that provide regenerative, orthopedic and minimally invasive procedures and therapies. It has partnered with several active and former professional athletes including Ozzie Smith, David Price, Mike Ditka and Tony Delk. IMAC’s outpatient medical clinics emphasize treating sports and orthopedic injuries and movement-restricting diseases 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 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.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.
Consolidated Balance Sheet
December 31, 2020 and 2019
| 2020 |
| 2019 |
| ASSETS |
| Current assets: |
| Cash |
| $ |
| 2,623,952 |
| $ |
| 373,689 |
| Accounts receivable, net |
| 1,513,683 |
| 1,258,325 |
| Deferred compensation, current portion |
| 309,375 |
| 312,258 |
| Other assets |
| 310,359 |
| 633,303 |
| Total current assets |
| 4,757,369 |
| 2,577,575 |
| Property and equipment, net |
| 1,777,042 |
| 3,692,009 |
| Other assets: |
| Goodwill |
| 2,040,696 |
| 2,040,696 |
| Intangible assets, net |
| 6,611,551 |
| 7,169,072 |
| Deferred equity costs |
| - |
| 170,274 |
| Deferred compensation, net of current portion |
| 354,906 |
| 549,563 |
| Security deposits |
| 388,074 |
| 499,488 |
| Right of use asset |
| 3,816,035 |
| 3,719,401 |
| Total other assets |
| 13,211,595 |
| 14,148,494 |
| Total assets |
| $ |
| 19,746,006 |
| $ |
| 20,418,078 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Current liabilities: |
| Accounts payable and accrued expenses |
| $ |
| 1,692,283 |
| $ |
| 2,909,666 |
| Patient deposits |
| 295,071 |
| 189,691 |
| Notes payable, current portion |
| 2,527,324 |
| 1,422,554 |
| Finance lease obligation, net of current portion |
| 18,242 |
| 17,473 |
| Lines of credit |
| - |
| 79,961 |
| Liability to issue common stock, current portion |
| 339,375 |
| 421,044 |
| Operating lease liability, current portion |
| 1,078,107 |
| 1,025,247 |
| Total current liabilities |
| 5,950,402 |
| 6,065,636 |
| Long-term liabilities: |
| Notes payable, net of current portion |
| 1,958,883 |
| 2,109,065 |
| Finance lease obligation, net of current portion |
| 48,323 |
| 66,565 |
| Liability to issue common stock, net of current portion |
| 468,760 |
| 578,866 |
| Operating lease liability, net of current portion |
| 3,506,484 |
| 3,660,654 |
| Total liabilities |
| 11,932,852 |
| 12,480,786 |
| Stockholders’ equity: |
| Preferred stock - $0.001 par value, 5,000,000 authorized, nil issued and outstanding at December 31, 2020 and 2019 |
| - |
| - |
| Common stock; $0.001 par value, 30,000,000 authorized; 12,839,972 and 8,913,258 shares issued at December 31, 2020 and 2019, respectively; 12,747,055 and 8,913,258 shares outstanding at December 31, 2020 and 2019, respectively. |
| 12,834 |
| 8,907 |
| Additional paid-in capital |
| 25,465,007 |
| 20,050,634 |
| Accumulated deficit |
| (15,045,783 |
| ) |
| (10,042,050 |
| ) |
| Non-controlling interest |
| (2,618,904 |
| ) |
| (2,080,199 |
| ) |
| Total stockholders’ equity |
| 7,813,154 |
| 7,937,292 |
| Total liabilities and stockholders’ equity |
| $ |
| 19,746,006 |
| $ |
| 20,418,078 |
IMAC Holdings, Inc.
Consolidated Statement of Operations
For the Years Ended December 31, 2020 and 2019
| 2020 |
| 2019 |
| Total patient revenue, net |
| $ |
| 12,822,711 |
| $ |
| 15,100,708 |
| Management fees |
| 12,487 |
| 25,318 |
| Total revenue |
| 12,835,198 |
| 15,126,026 |
| Operating expenses: |
| Patient expenses |
| 1,623,999 |
| 2,540,323 |
| Salaries and benefits |
| 10,495,284 |
| 10,523,409 |
| Share-based compensation |
| 392,050 |
| 392,217 |
| Advertising and marketing |
| 933,338 |
| 1,238,352 |
| Grant funds |
| (415,978 |
| ) |
| - |
| General and administrative |
| 4,566,554 |
| 5,064,437 |
| Depreciation and amortization |
| 1,722,465 |
| 1,552,919 |
| Total operating expenses |
| 19,307,712 |
| 21,311,657 |
| Operating loss |
| (6,472,514 |
| ) |
| (6,185,631 |
| ) |
| Other income (expense): |
| Interest income |
| 6,073 |
| 7,794 |
| Other income (expense) |
| 6 |
| (16,132 |
| ) |
| Beneficial conversion interest expense |
| - |
| (639,159 |
| ) |
| Gain on extinguishment of debt |
| 1,550,843 |
| - |
| Gain (loss) on sale of assets |
| (63,779 |
| ) |
| 140,074 |
| Interest expense |
| (563,067 |
| ) |
| (258,535 |
| ) |
| Total other income (expenses) |
| 930,076 |
| (765,958 |
| ) |
| Net loss before income taxes |
| (5,542,438 |
| ) |
| (6,951,589 |
| ) |
| Income taxes |
| - |
| - |
| Net loss |
| (5,542,438 |
| ) |
| (6,951,589 |
| ) |
| Net loss attributable to non-controlling interest |
| 538,705 |
| 454,359 |
| Net loss attributable to IMAC Holdings, Inc. |
| $ |
| (5,003,733 |
| ) |
| $ |
| (6,497,230 |
| ) |
| Net loss per share attributable to common stockholders |
| Basic and diluted |
| $ |
| (0.45 |
| ) |
| $ |
| (0.84 |
| ) |
| Weighted average common shares outstanding |
| Basic and diluted |
| 11,050,144 |
| 7,753,642 |
IMAC Holdings, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2020 and 2019
| Year Ended December 31, |
| 2020 |
| 2019 |
| Cash flows from operating activities: |
| Net loss |
| $ |
| (5,542,438 |
| ) |
| $ |
| (6,951,589 |
| ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
| Depreciation and amortization |
| 1,722,465 |
| 1,552,919 |
| Beneficial conversion interest expense |
| - |
| 639,159 |
| Share based compensation |
| 392,050 |
| 392,217 |
| Loss on disposition of assets |
| (63,779 |
| ) |
| Gain on extinguishment of debt |
| (1,550,843 |
| ) |
| Amortization of debt |
| 237,143 |
| (Increase) decrease in operating assets: |
| Accounts receivable, net |
| (234,518 |
| ) |
| (412,805 |
| ) |
| Other assets |
| 162,891 |
| (271,654 |
| ) |
| Security deposits |
| 111,081 |
| (111,400 |
| ) |
| Increase (decrease) in operating liabilities: |
| Accounts payable and accrued expenses |
| (1,460,376 |
| ) |
| 1,359,099 |
| Patient deposits |
| 105,380 |
| (264,689 |
| ) |
| Net cash used in operating activities |
| (5,993,386 |
| ) |
| (4,068,743 |
| ) |
| Cash flows from investing activities: |
| Purchase of property and equipment |
| (125,987 |
| ) |
| (1,200,216 |
| ) |
| Purchase of license fee |
| (243,750 |
| ) |
| - |
| Acquisition of Florida |
| (200,000 |
| ) |
| - |
| Proceeds from sale of fixed assets |
| - |
| 147,096 |
| Net cash used in investing activities |
| (569,737 |
| ) |
| (1,053,120 |
| ) |
| 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 |
| 5,181,855 |
| 1,311,697 |
| Proceeds from notes payable |
| 5,391,520 |
| 212,800 |
| Payments on notes payable |
| (1,505,055 |
| ) |
| (123,348 |
| ) |
| Payments of debt issuance costs |
| (157,500 |
| ) |
| - |
| Proceeds from line of credit |
| - |
| 20,000 |
| Payments on line of credit |
| (79,961 |
| ) |
| (300,000 |
| ) |
| Payments on finance lease obligation |
| (17,473 |
| ) |
| (16,740 |
| ) |
| Net cash provided by financing activities |
| 8,813,386 |
| 5,301,236 |
| Net increase in cash |
| 2,250,263 |
| 179,373 |
| Cash, beginning of period |
| 373,689 |
| 194,316 |
| Cash, end of period |
| $ |
| 2,623,952 |
| $ |
| 373,689 |
| Supplemental cash flow information: |
| Interest paid |
| $ |
| 63,152 |
| $ |
| 97,147 |
| Taxes paid |
| $ |
| - |
| $ |
| 18,533 |
| Non Cash Financing and Investing: |
| Business acquisition via stock issuance |
| $ |
| - |
| $ |
| 3,771,978 |
| Debt discount notes payable |
| $ |
| 305,000 |
| $ |
| - |
| Debt payments by sale of property and equipment |
| $ |
| 1,232,500 |
| $ |
| - |
| Gain on extinguishment of debt |
| $ |
| 1,700,603 |
| $ |
| - |