Financial Performance - Total revenues for Q3 2025 were $21.2 million, a decrease of 62.3% compared to $56.3 million in Q3 2024[14] - Gross profit for Q3 2025 was negative at $(102.7) million, compared to $(65.8) million in Q3 2024, indicating a significant increase in losses[14] - Operating loss for the nine months ended September 30, 2025, was $(6.8) million, up from $(3.8) million for the same period in 2024, reflecting a 78.5% increase in losses[14] - Net loss available to common stockholders for Q3 2025 was $(4.4) million, compared to $(3.4) million in Q3 2024, representing a 29.4% increase in losses[14] - The net loss for the nine months ended September 30, 2025, was $7,398,666, compared to a net loss of $3,995,271 for the same period in 2024, representing an increase of approximately 85.3%[20] - For the three months ended September 30, 2025, the Company reported net revenue of $0.02 million and a net loss of $3.1 million, which includes a one-time impairment loss of $0.75 million related to property and equipment[59] - For the nine months ended September 30, 2025, the Company had net revenue of $0.02 million and a net loss of $7.4 million, also including a one-time impairment loss of $0.75 million[59] Cash Flow and Liquidity - Cash reserves decreased significantly to $45,054 as of September 30, 2025, down from $504,189 at December 31, 2024[12] - Net cash used in operating activities from continuing operations was $3,752,128 for the nine months ended September 30, 2025, compared to $1,993,235 for the same period in 2024, indicating an increase of about 88.2%[20] - Net cash used in operations increased to $3.8 million for the nine months ended September 30, 2025, compared to $2.0 million for the same period in 2024, largely due to increased accounts payable and impairment losses[74] - Net cash provided by financing activities was $3.3 million for the nine months ended September 30, 2025, compared to $2.4 million for the same period in 2024, primarily from the sale of common stock and issuance of promissory notes[75] Liabilities and Deficits - Total current liabilities increased to $13.3 million as of September 30, 2025, from $7.2 million at December 31, 2024, marking an 84.5% rise[12] - The accumulated deficit increased to $(72.4) million as of September 30, 2025, compared to $(65.0) million at December 31, 2024[12] - The company had a working capital deficit of $(13.0) million as of September 30, 2025, compared to $(6.5) million as of December 31, 2024, driven by a $2.2 million increase in accounts payable and a $3.8 million increase in notes payable[69] - As of September 30, 2025, the company had approximately $13.3 million in current liabilities, including $4.9 million owed to vendors and $3.8 million in notes payable[71] Capital Needs and Financing - The company plans to raise additional capital through the issuance of financial instruments, including both debt and equity, to address its financial challenges[30] - The estimated capital needs for the next 12 months are approximately $5.0 million, with $3.6 million allocated for employees and related expenses[70] - The company anticipates needing to raise additional capital to fund future operations, which may not be achievable on favorable terms[72] Operational Challenges - The company has substantial doubt about its ability to continue as a going concern for the next twelve months, primarily due to expected operating losses and cash outflows[30] - The company has identified material weaknesses in its internal control over financial reporting, which could lead to misstatements in financial results[82] - Inflation had a material impact on operating results for the nine months ended September 30, 2025, particularly affecting staffing and supply costs[76] Shareholder Information - Preferred dividends declared in Q3 2025 amounted to $(1.3) million, compared to $(1.2) million in Q3 2024, indicating a 9.6% increase[14] - The number of common shares outstanding increased to 3,784,934 as of September 30, 2025, from 2,029,864 at December 31, 2024[12] - The company reported a loss per share of $(1.15) for Q3 2025, compared to $(1.71) for Q3 2024, reflecting a 32.8% improvement in loss per share[14] Impairment and Acquisitions - The company recognized an impairment loss of $748,101 on laboratory equipment acquired from Theralink Technologies, Inc., due to minimal cash flows generated from its use[33] - The company has acquired laboratory capabilities from Theralink Technologies, Inc., enhancing its technical capabilities in precision medicine for cancer treatment[23] - Operating expenses for the three months ended September 30, 2025, were $2.5 million, an increase from $1.9 million for the same period in 2024, primarily due to costs associated with the operation of a newly acquired laboratory[66] - Operating expenses for the nine months ended September 30, 2025, were $6.4 million, up from $3.7 million for the same period in 2024, primarily due to costs from the acquired laboratory[67] Revenue and Patient Revenue - The Company reported patient revenue of $21.2 million for the three months ended September 30, 2025, compared to $22.7 million for the same period in 2024[51] - The cost of revenues for the three months ended September 30, 2025, was $123.9 million, compared to $122.1 million for the same period in 2024[51] - The net revenue for the nine months ended September 30, 2025, was approximately $23,000, reflecting the company's ongoing challenges in generating revenue[33]
IMAC Holdings(BACK) - 2025 Q3 - Quarterly Report