KindlyMD Announces First Quarter 2024 Financial Results and Provides Shareholder Update
KindlyMD, a healthcare company integrating primary care and pain management, announced its Q1 2024 financial results after its IPO on June 3, 2024.
Key highlights include:
- Revenue of $829,029, a 28.6% decrease from Q1 2023, due to a shift to insurance billing.
- First-time insurance reimbursements of $34,722, compared to $0 in Q1 2023.
- Operating expenses decreased by 21.9% to $1,066,156.
- Net loss per share reduced by 50% to $(0.06).
Post-IPO, KindlyMD raised $6.02 million, ensuring sufficient funding for the next 12 months. Additionally, the company secured contracts with major insurers, providing nearly 80% statewide coverage in Utah and plans to expand through acquisitions and marketing investments.
- First-time insurance reimbursements of $34,722.
- Operating expenses decreased by 21.9% to $1,066,156.
- Net loss per share reduced by 50% to $(0.06).
- IPO raised $6.02 million, ensuring funding for 12 months.
- Secured major insurance contracts, offering 80% coverage in Utah.
- Revenue decreased by 28.6% to $829,029.
- Working capital deficit of $505,419 as of March 31, 2024.
Insights
The first quarter financial results and recent IPO of KindlyMD provide significant insights for investors. The key takeaway here is the company's shift from cash-pay patient care to insurance billing, which has caused a decrease in revenues for this period ($829,029 compared to $1,160,345 last year). However, the initiation of insurance reimbursements ($34,722 this quarter) is a new revenue stream that can grow substantially as the company scales. The net loss per share has decreased from $(0.04) to $(0.02), indicating some improvement in operational efficiency, despite the fall in revenue.
Importantly, KindlyMD's IPO has provided sufficient capital to fund operations for the next year, eliminating short-term financial fears and providing a buffer for strategic investments. This should give investors confidence in the company's financial stability and growth potential.
In summary, while there are short-term revenue declines, the long-term prospects look promising with the new insurance billing model and additional capital from the IPO.
The strategic expansion into insurance reimbursements is a major development. Being the first alternative medical treatment company in Utah to contract with top insurance payors like Medicare, Select Health and Blue Cross Blue Shield can significantly expand KindlyMD's patient base. Nearly 80% statewide insurance coverage could drive substantial patient growth and revenue, diversifying income streams away from cash-pay patients.
This move aligns with the industry's shift towards inclusive healthcare coverage, positioning KindlyMD well against competitors. Moreover, their work with Curaleaf on patient education about medical cannabis indicates a commitment to community engagement and expanding their influence in specialized healthcare segments.
However, the firm must effectively manage the transition to this business model to maintain profitability and continue innovative growth strategies.
Received reimbursement from insurance payors for the first time in Company history during first quarter, which is expected to increase as a percentage of total revenue going forward
Following its IPO in early June, the Company has sufficient capital to fund operations and execute on its growth strategy for at least the next 12 months
SALT LAKE CITY, UT / ACCESSWIRE / June 28, 2024 / KindlyMD, Inc. ("KindlyMD" or the "Company") (NASDAQ:KDLY), a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies, today announced its financial results for the first quarter ended March 31, 2024 and provided an update to shareholders after closing its initial public offering on June 3, 2024.
"We are pleased to report our first quarter of financial results as a public company following the successful closing of our IPO in early June. During the quarter, we were constrained by working capital as we prepared for our IPO; however, we began receiving reimbursement from insurance payors for the first time in our company history during that period. Subsequent to the end of the quarter, we announced the Company became Utah's first alternative medical treatment company to contract under the state's top insurance payors, including Select Health, Medicare and more recently, Blue Cross Blue Shield. We now provide nearly
Mr. Pickett continued, "The working capital we received from our IPO will provide us with the opportunity to invest across many growth levers in line with our strategic priorities. Beyond the additional marketing budget to continue attracting a larger patient population, we see significant merger and acquisition opportunity to acquire additional clinics in Utah, integrate those locations into our platform, and increase our patient population where we currently treat more than
Operational Highlights Subsequent to March 31, 2024:
- Closed IPO on June 3, 2024 for net proceeds of
$6.02 million - Collaborated with Curaleaf to expand patient education on medical cannabis care in Utah with community care events held at multiple Curaleaf Utah medical cannabis pharmacies
- Became Utah's first alternative medical treatment company to contract under the state's top insurance payors which include Medicare, Select Health and Medicaid
- Also contracted with Blue Cross Blue Shield insurance payor
- The Company now provides nearly
80% statewide comprehensive insurance coverage in Utah - Announced the successful registration on SAM.gov, the official U.S. federal funding platform
Financial Highlights for the Quarterly Period Ended March 31, 2024
Revenues for the period ended March 31, 2024 totaled
The Company earned
Operating expenses decreased by
Net loss per share decreased by
As of March 31, 2024, the Company had cash and cash equivalents of
As of June 24, 2024, the Company had 5,939,516 common shares outstanding.
About KindlyMD
KindlyMD™️ is a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies to offer patients comprehensive care and reduce the addiction and dependency of opioid use in the U.S. KindlyMD currently operates four centers, including the largest alternative pain treatment center in Utah. With a focus on holistic pain management through its specialty outpatient clinical services, including, where appropriate, the recommendation of medical cannabis by KindlyMD healthcare providers, KindlyMD is providing better patient health outcomes.
For more information, please visit www.kindlymd.com.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in KindlyMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. KindlyMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
Investor Relations Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
(212) 896-1254
kindlymd@kcsa.com
KINDLY MD, INC.
CONDENSED BALANCE SHEETS
| March 31, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 287,383 | $ | 525,500 | ||||
Accounts receivable | 7,554 | 28,001 | ||||||
Inventory, net | 55,872 | 63,202 | ||||||
Prepaid expenses and other current assets | 5,210 | 225 | ||||||
Total Current Assets | 356,019 | 616,928 | ||||||
Property and equipment, net | 221,573 | 235,292 | ||||||
Operating lease right-of-use assets | 210,447 | 235,706 | ||||||
Security deposits | 11,276 | 11,276 | ||||||
TOTAL ASSETS | $ | 799,315 | $ | 1,099,202 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 297,728 | $ | 329,810 | ||||
Customer deposits | 3,044 | 3,425 | ||||||
Current portion of operating lease liabilities | 88,702 | 94,696 | ||||||
Current portion of notes payable, net | 195,964 | 148,517 | ||||||
Derivative liability | 276,000 | 238,000 | ||||||
Total Current Liabilities | 861,438 | 814,448 | ||||||
Operating lease liabilities, net of current portion | 143,713 | 164,295 | ||||||
Notes payable, net of current portion | 177,286 | 228,871 | ||||||
TOTAL LIABILITIES | 1,182,437 | 1,207,614 | ||||||
Stockholders' Deficit | ||||||||
Preferred Stock, | - | - | ||||||
Common stock, | 4,618 | 4,618 | ||||||
Additional paid-in capital | 4,052,640 | 4,045,024 | ||||||
Accumulated deficit | (4,440,380 | ) | (4,158,054 | ) | ||||
TOTAL STOCKHOLDERS' DEFICIT | (383,122 | ) | (108,412 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ | 799,315 | $ | 1,099,202 | ||||
KINDLY MD, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
Revenues | $ | 829,029 | $ | 1,160,345 | ||||
Operating Expenses | ||||||||
Cost of revenues | 7,744 | 48,624 | ||||||
Salaries and wages | 707,966 | 933,301 | ||||||
General and administrative | 325,545 | 358,183 | ||||||
Depreciation | 24,901 | 25,442 | ||||||
Total Operating Expenses | 1,066,156 | 1,365,550 | ||||||
LOSS FROM OPERATIONS | (237,127 | ) | (205,205 | ) | ||||
Other Income (Expense) | ||||||||
Other income | 12,040 | 24,226 | ||||||
Interest expense | (57,239 | ) | - | |||||
Total Other Income (Expense) | (45,199 | ) | 24,226 | |||||
NET LOSS BEFORE INCOME TAXES | (282,326 | ) | (180,979 | ) | ||||
INCOME TAX BENEFIT | - | - | ||||||
NET LOSS | $ | (282,326 | ) | $ | (180,979 | ) | ||
LOSS PER COMMON SHARE - BASIC AND DILUTED | $ | (0.06 | ) | $ | (0.04 | ) | ||
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED | 4,617,798 | 4,434,596 | ||||||
KINDLY MD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (282,326 | ) | $ | (180,979 | ) | ||
Adjustments to reconcile loss to net cash provided by (used in) operating activities: | ||||||||
Stock-based compensation | 7,616 | 101,250 | ||||||
Depreciation expense | 24,901 | 25,442 | ||||||
Amortization of debt discounts | 47,358 | - | ||||||
Amortization of right-of-use assets | 25,259 | 32,266 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 20,447 | 313 | ||||||
Inventory | 7,330 | (34,298 | ) | |||||
Prepaid expenses and other current assets | (4,985 | ) | 26,256 | |||||
Security deposits | - | 731 | ||||||
Accounts payable and accrued expenses | (32,082 | ) | 230,761 | |||||
Customer deposits | (381 | ) | 275 | |||||
Operating lease liabilities | (26,576 | ) | (34,917 | ) | ||||
Net cash provided by (used in) operating activities | (213,439 | ) | 167,100 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property and equipment | (11,182 | ) | (12,695 | ) | ||||
Net cash used in investing activities | (11,182 | ) | (12,695 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net proceeds from issuance of notes payable | 45,000 | - | ||||||
Repayments of related party note payable | - | (10,000 | ) | |||||
Repayments of notes payable | (58,496 | ) | - | |||||
Net cash used in financing activities | (13,496 | ) | (10,000 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (238,117 | ) | 144,405 | |||||
CASH AND CASH EQUIVALENTS | ||||||||
Beginning of the period | 525,500 | 186,918 | ||||||
End of the period | $ | 287,383 | $ | 331,323 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Cash paid for interest | $ | - | $ | - | ||||
Cash paid for income taxes | $ | - | $ | - | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
Debt discounts on notes payable | $ | 10,556 | $ | -- | ||||
Fair value of derivative liability recognized upon issuance of notes payable | $ | 38,000 | $ | -- | ||||
SOURCE: KindlyMD, Inc.
View the original press release on accesswire.com
FAQ
What were KindlyMD's Q1 2024 revenues?
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How much did KindlyMD receive in insurance reimbursements in Q1 2024?
