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

Fifthconsecutivequarter ofcomparablerevenuegrowthfrom 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.

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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

[email protected]

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  

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