Inspire Veterinary Partners Reports Full Year 2024 Financial Results

Rhea-AI Summary

Inspire Veterinary Partners (Nasdaq:IVP) reported its full year 2024 financial results, showing flat total revenue of $16.6 million. The company saw a 3% increase in services revenue to $12.2 million, while product revenue declined 8% to $4.4 million.

Operating expenses increased 7% due to the Valley Veterinary practice acquisition and consulting contracts. The net loss decreased by 4% to $14 million. The company ended 2024 with $0.5 million in cash and subsequently secured $2.0 million through a registered direct offering in March 2025, with potential for additional $4.0 million from warrant exercises.

Post-2024 developments include new leadership appointments, engagement with STNL Advisors for real estate strategy, and a non-binding LOI to acquire a Florida animal hospital potentially adding $1.8 million in revenue.

Positive

• Services revenue increased 3% to $12.2M
• Net loss decreased by 4% to $14M
• Secured $2.0M in new funding with potential for additional $4.0M
• Potential acquisition could add $1.8M in revenue

Negative

• Total revenue remained flat at $16.6M
• Product revenue declined 8% to $4.4M
• Operating expenses increased 7%
• Low cash position of $0.5M at year-end

Insights

Financial Analyst

Inspire Veterinary Partners' full year 2024 results reveal concerning financial fundamentals despite management's positive framing. The company reported $16.6 million in flat year-over-year revenue while operating expenses increased by 7%, demonstrating negative operating leverage. Though services revenue grew modestly at 3%, this was offset by an 8% product revenue decline.

The $14 million net loss represents approximately 84% of total revenue - an exceptionally high burn rate that signals severe profitability challenges, though slightly improved from 2023. This loss ratio indicates fundamental business model issues that strategic initiatives haven't yet addressed effectively.

Their precarious liquidity position is evident with just $0.5 million in cash at year-end, necessitating the subsequent $2 million registered direct offering. This financing method typically indicates challenges accessing capital through traditional channels.

The company's growth strategy appears acquisition-focused, with a letter of intent for a Florida hospital potentially adding $1.8 million in revenue. However, this approach may further stretch their already strained balance sheet in the near term.

While management highlights various operational improvements and investments, these haven't translated to meaningful financial improvement. The combination of flat revenue, increased expenses, substantial losses, and minimal cash reserves presents a troubling financial picture for investors, with little evidence of an imminent turnaround despite management's optimistic outlook.

VIRGINIA BEACH, VA / ACCESS Newswire / March 31, 2025 / Inspire Veterinary Partners, Inc. (Nasdaq:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today reported financial results for the full year ended December 31, 2024.

Select Full Year 2024 Highlights

• Total revenue of approximately $16.6 million, flat year-over -year

• Services revenue of approximately $12.2 million, an increase of 3%.

• Product revenue of $4.4 million, a decrease of 8%.

• Total operating expenses increased by 7%.

• Net loss decreased by $0.5 million or 4%.

Executive Commentary

"In 2024, we have made significant strides in our transformation journey, and believe we are making meaningful progress across our strategic priorities to build a stronger, more efficient organization. Our focused execution is already yielding results as we move through 2025, validating our direction and setting the foundation for long-term success," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "Inspire invested throughout 2024 to prepare several major drivers of future growth, differentiation, and scalable capabilities while also reducing loss and controlling expenses. While there is more work ahead, I am confident our leadership team is well-positioned to build on this momentum, deliver improved growth in 2025 and position the business for sustainable profitable growth."

Full Year 2024 Financial Overview

All comparisons are made versus the same period in 2023 unless otherwise stated.

For full year 2024, total revenue was approximately $16.6 million, or unchanged. Service revenue for full year 2024 increased $0.3 million or 3%, to $12.2 million. The increase was driven primarily by the acquisition of an animal hospital in the fourth quarter of 2023 and an increase in the price of our services slightly offset by the sale of the KVC practice in the third quarter of 2024. Product revenue for full year 2024 decreased $0.4 million, or 8%, to $4.4 million. The decrease was primarily a result of customers purchasing less products per visit and by the sale of the KVC practice in the third quarter of 2024.

Total operating expenses increased $1.9 million or 7%. The increase was primarily due to the expenses generated by the Valley Veterinary practice acquisition, and various consulting contracts the Company entered into in 2024related to the financings closed during the year.

Net loss for full year 2024 decreased $0.5 million, or 4%, to $14 million. The decrease in net loss is primarily due to the gain on sale of the KVC practice and omission of any beneficial conversion feature in 2024.

Balance Sheet

As of December 31, 2024, the Company had cash and cash equivalents of approximately $0.5 million. Subsequent to the close of the fourth quarter, the Company announced on March 26, 2025, the closing of a securities purchase agreement with an investor pursuant to a registered direct offering for aggregate gross proceeds of approximately $2.0 million Approximately $2.0 million was funded in full upon the closing of the Offering, and up to an additional $4.0 million may be funded upon full cash exercise of the warrants. No assurance can be given that any of the warrants will be exercised. Inspire intends to use the net proceeds from the Offering for working capital, general corporate purposes, strategic investments, and any additional potential future acquisitions. A final prospectus supplement and accompanying prospectus relating to the registered direct offering was filed with the SEC and may be obtained on the SEC's website at http://www.sec.gov

Post Year End 2024 Operational Highlights

• Appointed Samatha A. Ciulla as Director of Business Development to oversee Inspire's business development, including the expansion into new markets, formation of partnerships and pursuit of strategic acquisitions.

• Engaged STNL Advisors, a full-service net lease advisory firm, to review the Company's real estate portfolio and provide strategic guidance on opportunities to expand, update and add new facilities.

• Registered the trade name ‘Family Pet Care' in the state of Maryland as part of a planned expansion in the Mid-Atlantic region. Inspire intends to replicate the design of its Texas based Family Pet Care state-of-the-art facility in new or future upgrades across the Company's platform.

• Entered into an exclusive, non-binding letter of intent to acquire 100% ownership interest in one animal hospital located in central Florida. If completed, the acquisition could potentially add approximately $1.8 million in (unaudited) revenue.

Investments in Growth

• Implemented new strategies and tools to attract and retain new clients, enhanced scheduling and clinic productivity.

• Completed companywide integrations across accounting platforms, practice management software and key performance indicator reporting systems.

• Invested in improved unit managers and built new job leveling programs which allow our leaders to progress in their careers with IVP.

• Added experienced clinical recruiting leadership and revamped the talent selection process.

• Onboarded experienced business development leadership and re-engineered our M&A workflow to evaluate new acquisition targets more efficiently and with improved market data.

• Enhanced our relationships with major suppliers and service providers to leverage our growing scale.

About Inspire Veterinary Partners, Inc.

Inspire Veterinary Partners is an owner and provider of pet health care services throughout the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.

For more information, please visit: www.inspirevet.com.

Connect with Inspire Veterinary Partners, Inc.

Facebook

https://www.facebook.com/InspireVeterinaryPartners/

LinkedIn

https://www.linkedin.com/company/inspire-veterinary-partners/

Forward-Looking Statements

This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, statements by the Company relating to the completion of the offering, the satisfaction of customary closing conditions related to the offering, the intended use of proceeds from the offering, receipt of Stockholder Approval as well as risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Balance Sheets

		Year Ended December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	523,690			$	178,961
Accounts receivable, net			40,675				28,573
Due from former owners			-				32,519
Inventory			516,650				571,512
Refundable income tax			-				151,796
Prepaid expenses and other current assets			942,456				388,759
Total current assets			2,023,471				1,352,120
Restricted cash - non-current			200,000				200,000
Property and equipment, net			6,382,788				7,949,144
Right-of-use assets			1,879,729				1,616,198
Other intangibles, net			1,633,927				2,513,028
Goodwill			8,022,082				8,147,590
Other assets			53,997				12,895
Total assets		$	20,195,994			$	21,790,975
Liabilities and Stockholder's Deficit
Current liabilities:
Accounts payable		$	1,979,503			$	3,206,594
Accrued expenses			285,770				858,334
Cumulative Series A preferred stock dividends payable			-				92,322
Operating lease liabilities			183,981				141,691
Loans payable, net of discount			2,340,020				1,713,831
Convertible debentures, net of issuance costs			-				100,000
Notes payable, net of discount			3,410,465				1,469,043
Total current liabilities			8,199,739				7,581,815
Operating lease liabilities, non-current			1,943,487				1,514,044
Notes payable - noncurrent			8,490,763				13,483,375
Total liabilities			18,633,989				22,579,234
Commitments and Contingencies (Note 15)
Stockholder's Equity (Deficit)
Common stock - Class A, $0.0001 par value, 4 million shares authorized, 1,176,059 and 2,817 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.			117				-
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,020,750 and 3,891,500 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.			302				389
Convertible series A preferred stock, $0.0001 par value, 1 million shares authorized, 0 and 403,640 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively.			-				40
Additional paid in capital			37,911,867				20,426,569
Accumulated deficit			(36,350,281	)			(21,215,257	)
Total stockholder's equity (deficit)			1,562,005				(788,259	)
Total liabilities and stockholder's equity (deficit)		$	20,195,994			$	21,790,975

Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Operations

		Year Ended December 31,
		2024				2023
Service revenue		$	12,188,526			$	11,879,934
Product revenue			4,403,583				4,795,459
Total revenue			16,592,109				16,675,393
Operating expenses
Cost of service revenue (exclusive of depreciation and amortization, shown separately below)			9,736,282				9,700,963
Cost of product revenue (exclusive of depreciation and amortization, shown separately below)			3,563,279				3,420,515
General and administrative expenses			11,421,352				9,476,287
Depreciation and amortization			1,308,619				1,252,539
Impairment expense			56,664				-
Gain on sale of business			(467,049	)			-
Total operating expenses			25,619,147				23,850,304
Loss from operations			(9,027,038	)			(7,174,911	)
Other income (expenses):
Interest income			53				21
Interest expense			(3,098,290	)			(2,538,710	)
Loss on debt extinguishment			-				(16,105	)
Loss on debt modification			(2,134,218	)			(927,054	)
Beneficial conversion feature			-				(4,137,261	)
Other income (expenses)			(4,768	)			1,134
Total other expenses			(5,237,223	)			(7,617,975	)
Loss before income taxes			(14,264,261	)			(14,792,886	)
Benefit for income taxes			-				-
Net loss			(14,264,261	)			(14,792,886	)
Dividend on convertible series A preferred stock			(220,850	)			(271,245	)
Net loss attributable to class A and B common stockholders		$	(14,485,111	)		$	(15,064,131	)
Net loss per Class A and B common shares:
Basic and diluted		$	(2.61	)		$	(3.50	)
Weighted average shares outstanding per Class A and B common shares:
Basic and diluted			5,550,959				4,309,796

Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

		Year Ended December 31,
		2024				2023
Cash flows from operating activities:
Net loss		$	(14,264,261	)		$	(14,792,886	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			1,337,723				1,252,540
Amortization of debt issuance costs			15,825				128,583
Amortization of debt discount			2,275,594				864,350
Amortization of operating right of use assets			329,878				162,298
Stock-based compensation			23,647				-
Issuance of warrants to CEO			-				2,701
Issuance of class A common stock for services			376,696				397,892
Debt extinguishment loss			-				16,105
Loss on debt modification			2,134,218				927,054
Issuance of class A common stock in connection with general release agreement			20,000				-
Issuance of Class A common stock and pre-funded warrants in connection with commitment shares			600,000				-
Bad debt provision			-				123,513
Beneficial conversion feature			-				4,137,261
Gain on disposal of business			(467,049	)			-
Impairment expense			56,664				-
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable			(12,102	)			(152,086	)
Due from former owners			32,519				237,364
Inventory			12,418				84,912
Refundable income tax			151,796				40,343
Prepaid expenses and other current assets			(553,697	)			(134,964	)
Other assets			(41,102	)			-
Accounts payable			(1,227,091	)			2,187,663
Accrued expenses			(593,544	)			813,144
Cumulative Series A preferred stock dividends payable			(92,322	)			-
Other assets, net			-				16,561
Operating lease liabilities			(121,676	)			(133,119	)
Net cash used in operating activities			(10,005,866	)			(3,820,771	)
Cash flows from investing activities:
Purchase of property and equipment			(237,983	)			(383,730	)
Payment for acquisition of businesses			-				(1,485,800	)
Net cash used in investing activities			(237,983	)			(1,869,530	)
Cash flows from financing activities:
Proceeds from issuance of class A common stock and warrants, net of issuance costs			5,460,000				5,439,571
Proceeds from issuance of class A common stock and pre-funded warrants, net of issuance costs			5,227,039				-
Repurchase and cancellation of the class B common stock			(650,000	)			-
Net proceeds from loans payable			1,981,585				2,038,531
Payments on loans payable			(5,113,947	)			(1,923,474	)
Proceeds from issuance of convertible series A preferred stock			200,000				-
Proceeds from convertible note payable			1,000,000				650,000
Payments on convertible note payable			(294,118	)			(250,000	)
Repayment of note payable			(1,121,981	)			(329,620	)
Proceeds from exercise of warrants			4,000,000				-
Repayment of convertible debentures			(100,000	)			-
Net cash provided by financing activities			10,588,578				5,625,009
Net increase (decrease) in Cash, cash equivalents and restricted cash			344,729				(65,292	)
Cash, cash equivalents and restricted cash, beginning of period			378,961				444,253
Cash, cash equivalents and restricted cash, end of period		$	723,690			$	378,961
Supplemental Disclosure of Cash Flow Information
Interest payments during the year		$	1,552,313			$	188,952
Income tax refund		$	151,796			$	-
Noncash investing and financing activity
Series A Preferred Stock Dividend		$	220,850			$	271,245
Acquisition of assets through operating leases			593,409				1,031,523
Issuance of class A common stock for conversion of convertible notes payable			1,357,143				-
Issuance of common stock in connection with business acquisition			-				400,000
Issuance of convertible series A preferred stock due to conversion of bridge note			-				4,440,688
Issuance of class A common stock due to conversion of convertible debentures			-				4,414,317

Investor Contact
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

General Inquires
Morgan Wood
Mwood@inspirevet.com

SOURCE: Inspire Veterinary Partners, Inc.

View the original press release on ACCESS Newswire

FAQ

What were Inspire Veterinary Partners (IVP) key financial metrics for 2024?

IVP reported $16.6M total revenue (flat YoY), $12.2M services revenue (+3%), $4.4M product revenue (-8%), and reduced net loss by 4% to $14M.

How much funding did IVP secure in March 2025?

IVP secured $2.0M through a registered direct offering, with potential for additional $4.0M from warrant exercises.

What acquisition is IVP pursuing in Florida as of 2025?

IVP entered a non-binding LOI to acquire a central Florida animal hospital that could add approximately $1.8M in unaudited revenue.

What caused IVP's product revenue decline in 2024?

The 8% product revenue decline was due to customers purchasing fewer products per visit and the sale of the KVC practice in Q3 2024.

What operational improvements did IVP implement in 2024?

IVP integrated accounting platforms, practice management software, enhanced KPI reporting systems, and improved recruitment processes.