Financial Performance - Total revenue for the three months ended June 30, 2023, was $1,343,975, a significant decrease from $5,033,088 in the same period of 2022[12] - Operating loss for the three months ended June 30, 2023, was $(1,380,950), compared to $(1,801,157) for the same period in 2022, indicating an improvement[13] - Net loss for the six months ended June 30, 2023, was $(5,101,960), compared to $(5,006,224) for the same period in 2022, showing a slight increase in losses[13] - Patient revenues for the six months ended June 30, 2023, totaled $3,437,337, down from $8,928,075 in the same period of 2022[13] - The company reported a significant reduction in operating expenses, totaling $2,724,925 for the three months ended June 30, 2023, compared to $6,834,245 in the same period of 2022[13] - The net loss for the second quarter of 2023 was $5,101,960, compared to a net loss of $5,006,224 in the same period of 2022[17] - Cash flows from operating activities resulted in a net cash outflow of $1,670,284 for the second quarter of 2023, an improvement from $5,862,808 in the prior year[17] - The company raised $64,032 from the issuance of common stock during the second quarter of 2023, compared to $829,663 in the same period of 2022[17] Assets and Liabilities - Total current assets decreased to $1,276,336 as of June 30, 2023, from $4,207,927 at the end of 2022[9] - Total liabilities as of June 30, 2023, were $5,003,970, down from $6,430,350 at the end of 2022[9] - Cash reserves decreased to $247,002 as of June 30, 2023, compared to $763,211 at the end of 2022[9] - As of June 30, 2023, the company had negative working capital of approximately $2.6 million, compared to $0.5 million at December 31, 2022[57] - The company reported total notes payable of $74,579,000 as of June 30, 2023, down from $104,696,000 as of December 31, 2022, reflecting a decrease of approximately 29%[82] Shareholder Information - The weighted average common shares outstanding for the three months ended June 30, 2023, were 33,141,324, an increase from 26,800,926 in the same period of 2022[13] - As of June 30, 2023, the total number of common shares outstanding was 33,280,049, with an accumulated deficit of $51,621,700[15] - The company had issued stock options to purchase 131,050 shares of common stock, with most options vesting over four years[87] - The company granted 263,000 restricted stock units (RSUs) to Board members on May 19, 2023, all vesting immediately[88] Mergers and Acquisitions - The company is currently pursuing a merger with Theralink Technologies, which may impact future financial performance[6] - IMAC Holdings, Inc. plans to merge with Theralink Technologies, with Theralink shareholders receiving 85% of the total number of Company Shares outstanding post-merger[21][22] - The merger agreement was unanimously approved by the boards of both companies on May 22, 2023[21] - The merger agreement stipulates that holders of Theralink shares will receive Company shares representing 85% of the total number of Company shares outstanding at the effective time of the merger[99] - The Merger is subject to customary closing conditions, including majority approval from Theralink shareholders and the Company's common stock holders[103] Operational Changes - The company closed five underperforming locations in the first half of 2023 to support ongoing operations[20] - The Company closed operations at four underperforming clinic locations in January 2023[31] - As of June 30, 2023, the company operated three medical clinics located in Kentucky and Missouri[19] Clinical and Service Developments - The company is conducting a clinical trial for an investigational compound for the treatment of bradykinesia due to Parkinson's disease[19] - The Company implemented wellness maintenance programs on a subscription basis starting January 2020, with four membership plans currently offered[36] - The Company introduced hormone replacement therapy (HRT) and medical weight loss programs starting September 2022, recognizing revenue as services are provided[37] - The Company’s patient service revenue is derived from non-surgical procedures performed at outpatient medical clinics, billed to patients or third-party payers[35] Financial Management and Taxation - The Company has accrued a potential overpayment liability of approximately $492,086 related to Advantage Therapy, with ongoing appeals regarding this amount[96] - The company has no unrecognized tax benefits recorded as of June 30, 2023, indicating a comprehensive review of its uncertain tax positions[91] - The Company recorded a goodwill impairment loss of $4.5 million in December 2022, following a significant drop in share price[71] Lease and Operating Expenses - Total operating lease liability as of June 30, 2023, was $1,990,312, with current portion of $947,657[79] - The Company incurred operating lease expense of $747,698 for the six months ended June 30, 2023, compared to $830,373 for the same period in 2022[77] - Future minimum lease payments under operating leases total $2,133,592, with the largest portion due in 2024 at $734,612[79]
IMAC Holdings(BACK) - 2023 Q2 - Quarterly Report