IMAC Holdings Announces Third Quarter Results

Rhea-AI Summary

IMAC Holdings, Inc. (BACK) reported strong financial results for Q3 2022 with total revenue increasing 9% to $3.78 million compared to $3.48 million in Q3 2021. The company achieved record visits of 1,818% growth at The BackSpace retail chiropractic centers. Notable achievements include completing a $3.9 million funding round and concluding the Phase 1 clinical study for Parkinson's treatment. The company reduced liabilities by $1 million and introduced new medical services aimed at driving future revenues.

Positive

• Total revenue increased 9% to $3.78 million.
• The BackSpace reported 1,818% year-over-year increase in visits.
• Successfully completed a $3.9 million registered direct and private placement offering.
• Reduced liabilities by $1 million.
• Launched new medical weight loss and hormone optimization services expected to generate significant revenue.

Negative

• None.

Company Reports Sixth Consecutive Quarter of Comparable Revenue Growth

BRENTWOOD, Tenn., Nov. 15, 2022 (GLOBE NEWSWIRE) -- IMAC Holdings, Inc. (Nasdaq: BACK) (“IMAC” “BACK” or the “Company”), today reported its preliminary financial results for the third quarter ended September 30, 2022.

Financial and Corporate Highlights from Q3 2022:

• Total Revenue increased 9% to $3.78 million, compared with $3.48 million in the third quarter 2021
• The BackSpace grew visits 1,818% and 28% for the comparable and sequential quarter, respectively
• Completed the third and final cohort of our Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease
• Completed a $3.9 million Registered Direct and Private Placement offering
• Amended NASDAQ trading symbol from “IMAC” to “BACK”
  

“The entire IMAC team worked hard to produce a solid quarter and achieved our sixth consecutive comparable quarter of revenue growth. We delivered same-store revenue growth in our outpatient medical clinics while The BackSpace retail chiropractic centers achieved record quarter visits and revenue. Additionally, we were able to reduce liabilities by $1 million during the quarter and finish the quarter with immaterial note payable balances,” said Jeffrey Ervin, CEO of BACK.

“We continue to work towards optimizing performance while leveraging our consumer reach to launch complementary services. The orthopedic business remains our core service offering and we recognized that obesity is a significant contributor to joint pain and inflammation our orthopedic patients experience. As a result, we implemented a medical weight loss and hormone optimization service during the quarter which we anticipate generating material revenue during the first quarter, 2023. We also launched a custom vitamin and supplement product line, Vita Eternum, to offer USDA certified organic vitamins to our orthopedic and weight loss patients in store and through our ecommerce platform.”

“Overall, I’m proud of the effort our team demonstrated by executing initiatives we said we would accomplish. Perhaps our greatest achievement for the quarter was administering the final dose of the third and final cohort of our Phase 1 clinical study of umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s Disease,” 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
lfristoe@imacrc.com

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

		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Patient revenues, net		$	3,786,228			$	3,487,482			$	12,714,302			$	9,975,104
Other income			-				14				-				6,092
Management fees			-				-				-				36,068
Total revenue			3,786,228				3,487,496				12,714,302				10,017,264
Operating expenses:
Patient expenses			279,800				361,141				1,137,508				1,042,504
Salaries and benefits			3,326,481				3,377,070				10,819,277				9,127,992
Share-based compensation			84,105				188,490				353,795				422,266
Advertising and marketing			244,583				294,046				857,633				875,123
General and administrative			1,866,037				1,603,056				5,539,198				4,483,587
Depreciation and amortization			481,526				450,579				1,366,912				1,314,584
Loss on disposal or impairment of assets			3,849,855				-				3,932,116				-
Total operating expenses			10,132,387				6,274,382				24,006,439				17,266,056
Operating loss			(6,346,159	)			(2,786,886	)			(11,292,137	)			(7,248,792	)
Other income (expense):
Interest income			2,792				1,754				4,114				1,754
Other income			-				-				-				135
Other expense			12,718	)			816				(39,986	)			(3,070	)
Interest expense			(2,976	)			(108,315	)			(11,840	)			(410,822	)
Total other expenses			12,534	)			(105,745	)			(47,712	)			(412,003	)
Net loss before income taxes			(6,333,625	)			(2,892,631	)			(11,339,849	)			(7,660,795	)
Income taxes			-				-				-				-
Net loss			(6,333,625	)			(2,892,631	)			(11,339,849	)			(7,660,795	)
Net loss per share attributable to common stockholders
Basic and diluted		$	(0.23	)		$	(0.07	)		$	(0.42	)		$	(0.27	)
Weighted average common shares outstanding
Basic and diluted			27,424,985				25,322,356				26,865,713				21,446,726

IMAC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

		September 30, 2022 (Unaudited)				December 31, 2021
ASSETS
Current assets:
Cash		$	2,833,391			$	7,118,980
Accounts receivable, net			3,155,550				1,209,333
Deferred compensation, current portion			121,227				191,657
Other assets			373,812				547,536
Total current assets			6,483,980				9,067,506
Property and equipment, net			1,767,005				2,323,163
Other assets:
Goodwill			4,499,796				4,661,796
Intangible assets, net			1,432,493				5,797,469
Deferred compensation, net of current portion			-				73,816
Security deposits			301,720				357,050
Right of use assets			4,047,245				4,948,393
Total other assets			10,281,254				15,838,524
Total assets		$	18,532,239			$	27,229,193
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	1,578,738			$	2,523,332
Patient deposits			552,027				320,917
Notes payable, current portion			58,904				254,487
Finance lease obligation, current portion			19,682				19,050
Liability to issue common stock, current portion			197,855				337,935
Operating lease liability, current portion			1,446,662				1,478,140
Total current liabilities			3,853,868				4,933,861
Long-term liabilities:
Notes payable, net of current portion			62,862				104,697
Finance lease obligation, net of current portion			14,431				29,273
Liability to issue common stock, net of current portion			-				189,375
Operating lease liability, net of current portion			3,046,176				4,018,926
Total liabilities			6,977,337				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 September 30, 2022 and December 31, 2021, respectively.			-				-
Common stock - $0.001 par value, 60,000,000 authorized; 32,754,757 and 26,876,409 shares issued at September 30, 2022 and December 31, 2021, respectively; and 32,503,349 and 26,218,167 outstanding at September 30, 2022 and December 31, 2021, respectively.			32,503				26,218
Additional paid-in capital			51,069,182				46,133,777
Accumulated deficit			(39,546,783	)			(28,206,934	)
Total stockholders’ equity			11,554,902				17,953,061
Total liabilities and stockholders’ equity		$	18,532,239			$	27,229,193

FAQ

What are the Q3 2022 revenue results for IMAC Holdings, Inc. (BACK)?

IMAC Holdings reported a revenue increase of 9% for Q3 2022, totaling $3.78 million.

How did the visits at The BackSpace perform in Q3 2022?

Visits at The BackSpace grew by 1,818% compared to the same period last year.

What clinical study milestone did IMAC achieve in Q3 2022?

IMAC completed the third cohort of its Phase 1 clinical study for Parkinson's Disease treatment.

What new services did IMAC introduce in Q3 2022?

IMAC launched medical weight loss and hormone optimization services, along with a custom vitamin line.

What was the outcome of IMAC's funding efforts in Q3 2022?

IMAC successfully completed a $3.9 million registered direct and private placement offering.