Financial Performance - Total revenues for Q1 2024 were $829,029, a decrease of 28.5% compared to $1,160,345 in Q1 2023[8] - Net loss for Q1 2024 was $282,326, compared to a net loss of $180,979 in Q1 2023, representing a 56.0% increase in losses[8] - Loss per common share for Q1 2024 was $0.06, compared to $0.04 in Q1 2023[8] - Revenues decreased by $331,316, or 28.6%, to $829,029 for the three months ended March 31, 2024, compared to $1,160,345 for the same period in 2023[59] - Net loss was $282,326 for the three months ended March 31, 2024, compared to $180,979 for the same period in 2023, representing a net loss increase of 56.0%[64] Operating Expenses - Operating expenses for Q1 2024 totaled $1,066,156, a decrease of 21.9% from $1,365,550 in Q1 2023[8] - Operating expenses decreased by $299,394, or 21.9%, to $1,066,156 for the three months ended March 31, 2024, from $1,365,550 for the same period in 2023[61] - Total operating expenses as a percentage of revenues increased to 128.6% for the three months ended March 31, 2024, compared to 117.7% for the same period in 2023[58] - Salaries and wages decreased by $225,335, or 24.1%, to $707,966 for the three months ended March 31, 2024, due to reduced need for employee and contract labor[61] - General and administrative expenses decreased by $32,638, or 9.1%, to $325,545 for the three months ended March 31, 2024, attributed to lower marketing and advertising spending[61] - Cost of revenues decreased by $40,880, or 84.1%, to $7,744 for the three months ended March 31, 2024, due to a decline in product revenues[61] Cash and Assets - Cash and cash equivalents decreased to $287,383 as of March 31, 2024, down 45.2% from $525,500 as of December 31, 2023[7] - Total current assets decreased to $356,019 as of March 31, 2024, down 42.3% from $616,928 as of December 31, 2023[7] - The company reported a total working capital deficit of $505,419 as of March 31, 2024[15] - Cash and cash equivalents as of March 31, 2024, were $287,383, down from $525,500 as of December 31, 2023, reflecting a decrease of $238,117, or 45.3%[69] - Total inventories, net, as of March 31, 2024, were $55,872, down from $63,202 at December 31, 2023[19] Liabilities and Equity - Total liabilities decreased to $1,182,437 as of March 31, 2024, down 2.1% from $1,207,614 as of December 31, 2023[7] - Total stockholders' deficit increased to $383,122 as of March 31, 2024, compared to $108,412 as of December 31, 2023[7] - The accumulated deficit increased to $(4,440,380) as of March 31, 2024, compared to $(4,158,054) at December 31, 2023[9] - The company reported a weighted-average number of shares outstanding of 4,617,798 for Q1 2024, compared to 4,434,596 for Q1 2023, an increase of 4.1%[8] Initial Public Offering (IPO) - The company completed an initial public offering (IPO) on June 3, 2024, raising total net proceeds of $6.02 million[16] - The IPO completed on June 3, 2024, resulted in gross proceeds of approximately $6.8 million and net proceeds of approximately $6.0 million after deducting expenses[56] - The company repaid all outstanding 10% OID promissory notes totaling $463,534 and issued 80,808 shares of restricted common stock at the IPO price of $5.50 per share[40] Insurance and Revenue Sources - Patient care services revenue for the three months ended March 31, 2024, was $785,843, down from $1,067,955 in 2023, representing a decline of 26.4%[18] - The company recognized $34,722 in reimbursements from insurance payers during the three months ended March 31, 2024, compared to $0 in the same period of 2023[18] - The company is shifting to insurance billing with commercial and governmental payers, impacting cash-pay patient care services[59] Strategic Initiatives - The company aims to reduce opioid use through an integrated model of prescriber and therapist teams, focusing on evidence-based behavioral therapy and non-opioid alternatives[45] - The company has established a medical advisory committee to evaluate the efficacy of care programs and set impact goals against national benchmarks[49] - The company is actively involved in the Biden-Harris opioid initiative, emphasizing decreased overprescribing and improved access to addiction treatment[48] Other Financial Metrics - Interest expense was $57,239 for the three months ended March 31, 2024, primarily due to accrued interest and amortization of debt discounts[63] - Other income decreased by $12,186, or 50.3%, to $12,040 for the three months ended March 31, 2024, from $24,226 for the same period in 2023[62] - The company incurred cash flows used in operating activities of $213,439 for the three months ended March 31, 2024, compared to cash flows provided by operating activities of $167,100 for the same period in 2023[69]
Kindly MD, Inc.(KDLY) - 2024 Q1 - Quarterly Report