EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

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   $-