Nutex Health (NUTX) - 2021 Q2 - Quarterly Report

Revenue Growth - Revenue for the three months ended June 30, 2021, was $5,290,505, a significant increase from $378,588 for the same period in 2020, primarily due to the AHP acquisition [134]. - Revenue for the six months ended June 30, 2021, was $7,304,850, compared to $844,218 for the same period in 2020, also driven by the AHP acquisition [134]. Operating Expenses - Operating expenses for the three months ended June 30, 2021, totaled $2,039,436, up from $1,796,351 in 2020, reflecting increased costs associated with the AHP and AHA acquisitions [131]. - General and administrative expenses for the six months ended June 30, 2021, were $6,200,000, up from $2,200,000 in 2020, largely due to stock-based compensation and acquisitions [140]. - Interest expense for the three months ended June 30, 2021, was $2,000,000, compared to $249,283 for the same period in 2020, primarily due to debt accretion related to the AHA acquisition [142]. - Research and Development expense for the three months ended June 30, 2021, was $59,629, down from $314,255 in 2020, reflecting a reduction in personnel [137]. - Management anticipates additional increases in operating expenses and capital expenditures related to developmental and marketing expenses [155]. Financial Position - Cash as of June 30, 2021, was $4,795,175, an increase of $4,768,244 or 177% compared to $26,931 as of December 31, 2020 [149]. - Cash used in operating activities for the six months ended June 30, 2021, was $2,392,675, compared to $1,368,229 for the same period in 2020, indicating increased operational cash outflow [151]. - Cash provided by financing activities for the six months ending June 30, 2021, was $3,272,652, a significant increase from $369,073 for the same period in 2020 [153]. - Proceeds from the sale of common stock amounted to $3,195,000, contributing to the overall financing activities [153]. Capital Raising and Concerns - The company anticipates raising capital in private markets to support business expansion, although there is no guarantee of favorable terms [150]. - The company expects working capital requirements to increase in line with business growth, funded through existing funds and further securities issuances [155]. - There is substantial doubt about the company's ability to continue as a going concern, dependent on raising additional capital and generating profitable operations [156]. - The company has no lines of credit or bank financing arrangements, relying on private placements of equity and debt instruments for funding [155]. - Additional issuances of equity or convertible debt securities may dilute current shareholders and could have senior rights that impact common stock [155]. - The company may face challenges in raising adequate funds on acceptable terms, which could restrict business operations [156]. - Future financing may not be available, impacting the company's ability to pursue new business opportunities [156]. - The financial statements have been prepared assuming the company will continue as a going concern, highlighting the need for positive cash flow [156].