Inspire Veterinary Partners(IVP) - 2023 Q3 - Quarterly Report

PART I - FINANCIAL INFORMATION This section presents the Company's unaudited interim consolidated financial information, covering financial statements, management's discussion, market risk, and controls Item 1. Financial Statements This section presents the unaudited interim consolidated financial statements of Inspire Veterinary Partners, Inc., prepared in accordance with GAAP and SEC rules, including balance sheets, statements of operations, changes in stockholders' equity (deficit), cash flows, and accompanying notes, with management confirming all necessary adjustments for fair presentation - Unaudited interim financial statements prepared in accordance with GAAP and SEC rules[9] - Management's opinion: all adjustments are normal recurring adjustments, necessary for fair presentation[9] - Results for presented periods are not necessarily indicative of full-year results[9] Unaudited Condensed Consolidated Balance Sheets This section presents the Company's unaudited condensed consolidated balance sheets, detailing assets, liabilities, and equity for the periods presented Total Assets: | Date | Amount ($) | | :--- | :--- | | September 30, 2023 | $21,296,872 | | December 31, 2022 | $20,185,695 | Total Liabilities: | Date | Amount ($) | | :--- | :--- | | September 30, 2023 | $18,584,496 | | December 31, 2022 | $25,321,176 | Total Stockholders' Equity (Deficit): | Date | Amount ($) | | :--- | :--- | | September 30, 2023 | $2,712,376 | | December 31, 2022 | $(5,135,481) | - Cash and cash equivalents increased significantly from $444,253 at December 31, 2022, to $1,956,385 at September 30, 2023[13] Unaudited Condensed Consolidated Statements of Operations This section presents the Company's unaudited condensed consolidated statements of operations, detailing revenues, expenses, and net loss for the periods presented Revenue Summary: | Period | 2023 ($) | 2022 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended Sep 30 | $4,119,648 | $2,924,079 | $1,195,569 | 41% | | Nine Months Ended Sep 30 | $12,891,589 | $6,655,357 | $6,236,232 | 94% | Net Loss Summary: | Period | 2023 ($) | 2022 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Three Months Ended Sep 30 | $(7,884,002) | $(1,407,325) | $(6,476,677) | 460% | | Nine Months Ended Sep 30 | $(10,650,745) | $(2,977,779) | $(7,672,966) | 258% | Basic and Diluted Net Loss Per Share: | Period | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $(1.25) | $(0.25) | | Nine Months Ended Sep 30 | $(1.90) | $(0.58) | - Beneficial conversion feature of $4,137,261 recognized in both three and nine months ended September 30, 2023, contributing to increased other expense and net loss[15][192][195] Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) This section presents the Company's unaudited condensed consolidated statements of changes in stockholders' equity (deficit) for the periods presented - Total stockholder's equity (deficit) improved from $(5,135,481) at December 31, 2022, to $2,712,376 at September 30, 2023[17] - Issuance of Class A common stock in connection with IPO, net of issuance costs, contributed $5,439,571 to additional paid-in capital[17] - Accumulated deficit increased from $(6,243,448) at December 31, 2022, to $(16,894,193) at September 30, 2023, primarily due to net losses[17] Unaudited Condensed Consolidated Statements of Cash Flows This section presents the Company's unaudited condensed consolidated statements of cash flows, detailing cash movements from operating, investing, and financing activities for the periods presented Cash Flow Summary: | Activity | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Operating Activities | $(3,065,990) | $(2,317,926) | | Investing Activities | $(364,098) | $(8,991,350) | | Financing Activities | $4,942,220 | $9,425,726 | | Net Increase (Decrease) in Cash | $1,512,132 | $(1,883,550) | - Cash and cash equivalents at the end of the period increased from $444,253 (beginning of 2023) to $1,956,385[21] - Significant financing activities in 2023 included $5,439,571 from IPO proceeds and $1,507,460 from loan payable, offset by repayments[222] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed notes accompanying the unaudited condensed consolidated financial statements, explaining accounting policies, debt, equity, and other disclosures 1. Description of Business Inspire Veterinary Partners, Inc. is a Nevada C-corporation that owns and operates veterinary hospitals across the United States, specializing in small animal general practice with expanding offerings to include equine care. The Company acquires existing hospitals with strong financial track records and growth potential, operating through various holding companies for practice and real estate acquisitions - Inspire Veterinary Partners, Inc. owns and operates veterinary hospitals throughout the United States[23] - Specializes in small animal general practice, expanding to include equine care and emergency/specialty services[23][24][149] - Operates 14 clinics in 10 states as of the filing date, acquiring hospitals with financial track records and growth potential[24][150] - Closed its IPO on August 31, 2023, issuing 1.6 million shares of Class A common stock at $4.00 per share, generating approximately $5.4 million in net proceeds[29] 2. Significant Accounting Policies and Basis of Presentation This section outlines the Company's significant accounting policies, including the basis of presentation for its unaudited interim condensed consolidated financial statements, which conform to GAAP. It also addresses the Company's going concern status due to recurring losses and accumulated deficit, and its election as an Emerging Growth Company to delay new accounting standards - Unaudited interim condensed consolidated financial statements are prepared in conformity with GAAP for interim financial information[33] - The Company has incurred recurring losses and an accumulated deficit of $16,894,193 as of September 30, 2023, raising substantial doubt about its ability to continue as a going concern for the next twelve months[36] - Continuation as a going concern is contingent upon obtaining additional financing and generating revenue and cash flow[36] - The Company is an Emerging Growth Company and has elected to use the extended transition period for complying with new or revised accounting standards[43] 3. Property and equipment This note details the Company's property and equipment, net, as of September 30, 2023, and December 31, 2022, and reports depreciation expenses for the three and nine months ended September 30, 2023, and 2022 Property and Equipment, Net: | Date | Amount ($) | | :--- | :--- | | September 30, 2023 | $7,314,924 | | December 31, 2022 |