Financial Performance - Net loss for the nine months ended September 30, 2024 was $3,995,271, compared to $7,959,631 in the same period of 2023, representing a 49.8% improvement[14] - Net loss for the nine months ended September 30, 2024, was $3,995,271, compared to $7,960,429 in the same period in 2023, showing a significant improvement[20] - Net loss per share improved from $7.28 in the nine months ended September 30, 2023 to $3.64 in the same period of 2024, a 50.0% enhancement[14] - Revenues for the nine months ended September 30, 2024 were $72,050, compared to $0 in the same period of 2023[14] - Revenues from continuing operations for the three months and nine months ended September 30, 2024 were $56,300 and $72,050, respectively[81] - Net cash used in operating activities for the nine months ended September 30, 2024, was $2,025,227, compared to $2,957,156 in the same period in 2023[20] - Net cash used in operations decreased to approximately $2.0 million for the nine months ended September 30, 2024, compared to $3.0 million for the same period in 2023[92] Assets and Liabilities - Cash decreased from $221,511 in December 2023 to $195,511 in September 2024, a decline of 11.7%[12] - Total current assets dropped from $1,144,119 in December 2023 to $510,738 in September 2024, a significant decrease of 55.4%[12] - Accumulated deficit increased from $55,938,325 in December 2023 to $59,933,596 in September 2024, a growth of 7.1%[12] - Additional paid-in capital decreased slightly from $55,184,524 in December 2023 to $55,133,084 in September 2024, a marginal decline of 0.1%[12] - Working capital deficit increased to ($5.5 million) as of September 30, 2024, compared to ($0.8 million) as of December 31, 2023[74] - As of September 30, 2024, the company had $0.2 million in cash and negative working capital of $5.8 million[95] - The company had an accumulated deficit of $59.9 million as of September 30, 2024[97] - Operating lease obligations as of September 30, 2024 totaled $506,547, with $117,758 due within one year[98] Equity and Stock - Preferred stock increased from 4,550 shares in December 2023 to 45,826 shares in September 2024, a substantial growth of 907.1%[12] - Weighted average common shares outstanding increased from 1,102,738 in the nine months ended September 30, 2023 to 1,414,912 in the same period of 2024, a rise of 28.3%[14] - Preferred stock sales generated gross proceeds of $1.35 million during the nine months ended September 30, 2024[36] - Total liquidation value of preferred shares outstanding as of September 30, 2024, was $52,241,000[40] - The company amended its 2018 Incentive Compensation Plan to increase the number of shares authorized for issuance from 66,667 to 566,667 shares[24] - The company issued common stock purchase warrants with a total value of $8.4 million, with a weighted average exercise price of $2.60[37] - The Company entered into a Common Stock Purchase Agreement with Keystone Capital Partners, LLC, allowing the sale of up to $60 million of newly issued shares of Common Stock[63] Expenses and Costs - Total operating expenses for the nine months ended September 30, 2024 were $3,684,636, a decrease of 35.3% from $5,697,144 in the same period of 2023[14] - Laboratory supplies for the three months and nine months ended September 30, 2024 were approximately $70,000 and $107,000, respectively[84] - Laboratory depreciation for the three months and nine months ended September 30, 2024 was approximately $52,000 and $87,000, respectively[85] - Salaries and benefits expenses increased by $277,000 in the three months ended September 30, 2024 compared to the same period in 2023[88] - General and administrative expenses increased by $707,000 in the three months ended September 30, 2024 compared to the same period in 2023[90] Acquisitions and Financing - The company acquired Theralink assets, resulting in the recording of long-lived assets of $1.1 million and the settlement of note receivables of $1.1 million[34] - The company issued promissory notes totaling $2.0 million, with cash proceeds of approximately $1.4 million during the nine months ended September 30, 2024[35] - The Company issued promissory notes in October 2024 with an aggregate principal amount of $0.3 million, maturing on the earlier of June 18, 2025, or the consummation of a securities offering[60] - The Company entered into a PIPE Financing agreement, issuing 4,676 shares of Series G convertible preferred stock and 2,977,711 warrants for aggregate proceeds of $3,740,000[61] - The Company used $2.2 million of the PIPE Financing proceeds to repay outstanding promissory notes[62] Discontinued Operations - The company has discontinued operations related to IMAC Regeneration Centers, The BackSpace retail stores, and the Investigational New Drug division[25] - Discontinued operations resulted in a net loss of $31,992 for September 30, 2024, compared to a net loss of $2,196,405 for the same period in 2023[44] Internal Controls and Reporting - The company identified material weaknesses in internal control over financial reporting, leading to ineffective disclosure controls and procedures as of September 30, 2024[105] - No changes in internal control over financial reporting were identified during the most recent fiscal quarter that materially affected or are likely to affect the company's financial reporting[106] - Insufficient resources in the accounting department restrict the company's ability to gather, analyze, and review financial reporting information in a timely manner[107] - The company faces challenges in segregating conflicting duties due to its size and nature, which has been identified as a material weakness in internal controls[107] Legal and Regulatory Matters - The Company received a recommendation from Covent Bridge Group for overpayment of $2.7 million related to Progressive Health, with 38 claims reviewed and 15 claims supported by medical necessity[50][51][52] - The Company received a recommendation from Covent Bridge Group for overpayment of $0.5 million related to Advantage Therapy, with a partially favorable decision supporting the appealed claims[55][56] - The Company received a notification from Covent Bridge Group estimating an overpayment of $1.1 million at a patient center in MO, with plans to appeal by filing a redetermination request[65] - The Company has not recorded a provision for any claims as of September 30, 2024, due to the inability to estimate a possible loss or range of loss[59] Strategic Focus - The company's continuing operations focus on precision medicine in cancer treatment, leveraging acquired laboratory capabilities from Theralink Technologies, Inc[23]
IMAC Holdings(BACK) - 2024 Q3 - Quarterly Report