Financial News
Inspire Veterinary Partners Reports Second Quarter 2024 Financial Results
VIRGINIA BEACH, VA / ACCESSWIRE / August 14, 2024 / Inspire Veterinary Partners, Inc. (NASDAQ:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today reported its financial results for the second quarter and six months ended June 30, 2024.
Second Quarter 2024 Revenue Highlights Compared to Prior Year Period
Total revenue of approximately 4.4 million, a decrease of 2%
Services revenue of $3.2 million, an increase of 1%
Product revenue of $1.2 million, a decrease of 9%
Six Month 2024 Revenue Highlights Compared to Prior Year Period
Total revenue of approximately $9.2 million, an increase of 5%
Services revenue of approximately $6.8 million, an increase of 8%
Product revenue of $2.4 million, a decrease of 2%
Second Quarter 2024 Compared to First Quarter 2024
Q2 2024 operating expenses down 11.8%
Q2 2024 loss from operations lower by 16.4%
Q2 2024 earnings (loss) per share improved by 17.6%, or $(0.70) vs. $(0.85)
"In the second quarter and first half of 2024, we made meaningful progress against our strategy to reposition the business for sustainable and profitable growth," said Kimball Carr, President & Chief Executive Officer of Inspire. "The steps implemented at the end of 2023 and early 2024 to improve operating efficiencies are evidenced by lower operating expenses, a reduced loss from operations, and an improvement in net loss per share, sequentially in the first half of 2024. As a result of these actions, Inspire aims to achieve clear line of sight toward a sustainable business model with the ongoing financial resources and liquidity needed to support the company's long-term strategy. After the close of the second quarter, we strengthened our balance sheet through the previously announced public offering, which is expected to provide us with the additional financial flexibility to drive revenue and earnings growth."
Carr added, "I believe the underlying value proposition of our growth strategy remains valid, and I'm confident that a renewed focus on fundamentals and effective delivery of cost transformation will restore profitability. The strategic investments and operational initiatives our team is executing across the organization are delivering results and we expect them to support our long-term growth and success. I look forward to building momentum into the second half of the year where we will remain focused on executing our acquisition strategy, building trust and preference for our best-in-class services and delivering value to shareholders."
Second Quarter 2024 Highlights Compared to Prior Year Period
Total revenue was $4.4 million for the second quarter of 2024, a decrease of 2% compared to total revenue of $4.5 million in the prior year period. Service revenue for the second quarter of 2024 increased 1% to $3.2 million compared to the prior year period, primarily driven by organic growth in existing clinic and animal hospital services and one new animal hospital acquired in the fourth quarter of 2023. Product revenue of $1.2 million decreased 9% compared to the prior year period driven primarily by customers purchasing less products per visit.
General and administrative expenses were $2.2 million for the second quarter of 2024 compared to $1.9 million in the prior year period. The increase was primarily due to the expenses generated by the Company's animal hospitals and clinics acquired, the cost of its public offering completed in the second quarter of 2024, and other third-party consulting arrangements entered into to increase investor communications, customer outreach and improve operations.
Net loss was $3.4 million for the second quarter of 2024 compared to a net loss of $1.2 million for the prior year period. The increase in net loss was attributable to the operating expenses associated with the Company's animal hospitals and clinics, the cost of its public offering completed in the second quarter of 2024, and other third-party consulting arrangements entered into to increase investor communications, customer outreach and improve operations.
Balance Sheet
As of June 30, 2024, the Company had cash and cash equivalents of approximately $7,600. Subsequent to the end of the second quarter of 2024, the Company announced on July 10th the closing of its previously announced public offering of 6,000,000 units, each unit consisting of either one share of the Company's Class A common stock or one pre-funded warrant to purchase one share of the Company's Class A common stock and one warrant to purchase one share of the Company's Class A common stock at a public offering price of $1.00 per unit.
About Inspire Veterinary Partners, Inc.
Inspire Veterinary Partners is an owner/operator of veterinary hospitals in the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.
For more information, please visit: www.inspirevet.com.
Connect with Inspire Veterinary Partners, Inc.
https://www.facebook.com/InspireVeterinaryPartners/
https://www.linkedin.com/company/inspire-veterinary-partners/
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Investor Contact
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
General Inquires
Morgan Wood
Mwood@inspirevet.com
Inspire Veterinary Partners, Inc.
Unaudited Condensed Consolidated Balance Sheets
|
June 30, |
|
|
December 31, |
|
|||
|
2024 |
|
|
2023 |
|
|||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
7,658 |
|
|
$ |
178,961 |
|
Accounts receivable, net |
|
|
39,720 |
|
|
|
28,573 |
|
Due from former owners |
|
|
- |
|
|
|
32,519 |
|
Inventory |
|
|
574,593 |
|
|
|
571,512 |
|
Refundable income tax |
|
|
- |
|
|
|
151,796 |
|
Prepaid expenses and other current assets |
|
|
1,580,239 |
|
|
|
388,759 |
|
Total current assets |
|
|
2,202,210 |
|
|
|
1,352,120 |
|
|
|
|
|
|
|
|
|
|
Restricted cash - non-current |
|
|
200,000 |
|
|
|
200,000 |
|
Property and equipment, net |
|
|
7,849,271 |
|
|
|
7,949,144 |
|
Right-of-use assets |
|
|
1,349,394 |
|
|
|
1,616,198 |
|
Other intangibles, net |
|
|
2,105,229 |
|
|
|
2,513,028 |
|
Goodwill |
|
|
8,147,590 |
|
|
|
8,147,590 |
|
Other assets |
|
|
73,989 |
|
|
|
12,895 |
|
Total assets |
|
$ |
21,927,683 |
|
|
$ |
21,790,975 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholder's Deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
3,717,966 |
|
|
$ |
3,206,594 |
|
Accrued expenses |
|
|
941,076 |
|
|
|
858,334 |
|
Cumulative Series A preferred stock dividends payable |
|
|
- |
|
|
|
92,322 |
|
Operating lease liabilities |
|
|
124,580 |
|
|
|
141,691 |
|
Loans payable, net of discount |
|
|
3,313,925 |
|
|
|
1,713,831 |
|
Convertible notes payable |
|
|
1,000,000 |
|
|
|
- |
|
Convertible debentures, net of issuance costs |
|
|
- |
|
|
|
100,000 |
|
Notes payable, net of discount |
|
|
3,316,147 |
|
|
|
1,469,043 |
|
Total current liabilities |
|
|
12,413,694 |
|
|
|
7,581,815 |
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
|
1,450,332 |
|
|
|
1,514,044 |
|
Convertible debentures, net of issuance costs |
|
|
- |
|
|
|
- |
|
Notes payable - noncurrent |
|
|
11,177,975 |
|
|
|
13,483,375 |
|
Total liabilities |
|
|
25,042,001 |
|
|
|
22,579,234 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES (Note 13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDER'S EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
Common stock - Class A, $0.0001 par value, 100 million shares authorized, 1,044,055 and 70,421 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively. |
|
|
104 |
|
|
|
7 |
|
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,891,500 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively. |
|
|
389 |
|
|
|
389 |
|
Convertible series A preferred stock, $0.0001 par value, 1 million shares authorized, 27,229 and 403,640 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively. |
|
|
3 |
|
|
|
40 |
|
Additional paid in capital |
|
|
25,129,506 |
|
|
|
20,426,562 |
|
Accumulated deficit |
|
|
(28,244,320 |
) |
|
|
(21,215,257 |
) |
Total stockholder's equity (deficit) |
|
|
(3,114,318 |
) |
|
|
(788,259 |
) |
Total liabilities and stockholder's equity (deficit) |
|
$ |
21,927,683 |
|
|
$ |
21,790,975 |
|
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Service revenue |
|
$ |
3,220,238 |
|
|
$ |
3,200,694 |
|
|
$ |
6,765,837 |
|
|
$ |
6,273,579 |
|
Product revenue |
|
|
1,170,143 |
|
|
|
1,288,732 |
|
|
|
2,456,111 |
|
|
|
2,498,362 |
|
Total revenue |
|
|
4,390,381 |
|
|
|
4,489,426 |
|
|
|
9,221,948 |
|
|
|
8,771,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue (exclusive of depreciation and amortization, shown separately below) |
|
|
2,428,740 |
|
|
|
2,333,844 |
|
|
|
5,137,887 |
|
|
|
4,641,747 |
|
Cost of product revenue (exclusive of depreciation and amortization, shown separately below) |
|
|
935,997 |
|
|
|
898,730 |
|
|
|
1,952,104 |
|
|
|
1,778,130 |
|
General and administrative expenses |
|
|
2,218,734 |
|
|
|
1,885,801 |
|
|
|
5,092,077 |
|
|
|
3,687,460 |
|
Debt extinguishment loss |
|
|
859,584 |
|
|
|
- |
|
|
|
1,587,862 |
|
|
|
- |
|
Depreciation and amortization |
|
|
340,926 |
|
|
|
304,016 |
|
|
|
708,123 |
|
|
|
602,508 |
|
Total operating expenses |
|
|
6,783,981 |
|
|
|
5,422,391 |
|
|
|
14,478,053 |
|
|
|
10,709,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(2,393,600 |
) |
|
|
(932,965 |
) |
|
|
(5,256,105 |
) |
|
|
(1,937,904 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
- |
|
|
|
5 |
|
|
|
2 |
|
|
|
6 |
|
Interest expense |
|
|
(988,053 |
) |
|
|
(285,376 |
) |
|
|
(1,547,342 |
) |
|
|
(830,811 |
) |
Other expenses |
|
|
(4,768 |
) |
|
|
(9,458 |
) |
|
|
(4,768 |
) |
|
|
1,966 |
|
Total other expenses |
|
|
(992,821 |
) |
|
|
(294,829 |
) |
|
|
(1,552,108 |
) |
|
|
(828,839 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(3,386,421 |
) |
|
|
(1,227,794 |
) |
|
|
(6,808,213 |
) |
|
|
(2,766,743 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit for income taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(3,386,821 |
) |
|
|
(1,227,794 |
) |
|
|
(6,808,213 |
) |
|
|
(2,766,743 |
) |
Dividend on convertible series A preferred stock |
|
|
(6,330 |
) |
|
|
- |
|
|
|
(220,850 |
) |
|
|
- |
|
Net loss attributable to class A and B common stockholders |
|
|
(3,392,751 |
) |
|
|
(1,227,794 |
) |
|
$ |
(7,029,063 |
) |
|
$ |
(2,766,743 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per Class A and B common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.70 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.56 |
) |
|
$ |
(0.64 |
) |
Weighted average shares outstanding per Class A and B common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
4,821,424 |
|
|
|
4,309,705 |
|
|
|
4,508,452 |
|
|
|
4,309,705 |
|
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
|
Six Months Ended June 30, |
|
||||||
|
2024 |
|
|
2023 |
|
|||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(6,808,213 |
) |
|
$ |
(2,766,743 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
688,308 |
|
|
|
602,508 |
|
Amortization of debt issuance costs |
|
|
15,825 |
|
|
|
85,347 |
|
Amortization of debt discount |
|
|
984,924 |
|
|
|
488,896 |
|
Amortization of operating right of use assets |
|
|
266,804 |
|
|
|
87,911 |
|
Issuance of warrants to CEO |
|
|
- |
|
|
|
2,701 |
|
Issuance of class A common stock for services |
|
|
286,696 |
|
|
|
- |
|
Loss on debt modification |
|
|
1,587,862 |
|
|
|
- |
|
Issuance of class A common stock in connection with general release agreement |
|
|
20,000 |
|
|
|
- |
|
Issuance of Class A common stock and pre-funded warrants in connection with commitment shares |
|
|
600,000 |
|
|
|
- |
|
Changes in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(11,147 |
) |
|
|
(99,217 |
) |
Due from former owners |
|
|
32,519 |
|
|
|
210,804 |
|
Inventory |
|
|
(3,081 |
) |
|
|
(119,856 |
) |
Refundable income tax |
|
|
151,796 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
|
(1,191,480 |
) |
|
|
117,872 |
|
Other assets |
|
|
(61,094 |
) |
|
|
(94,224 |
) |
Accounts payable |
|
|
511,372 |
|
|
|
1,078,457 |
|
Accrued expenses |
|
|
82,742 |
|
|
|
(27,291 |
) |
Cumulative Series A preferred stock dividends payable |
|
|
(92,322 |
) |
|
|
- |
|
Operating lease liabilities |
|
|
(80,823 |
) |
|
|
(74,125 |
) |
Net cash used in operating activities |
|
|
(3,019,312 |
) |
|
|
(506,960 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(180,636 |
) |
|
|
(119,532 |
) |
Purchase of intangible assets |
|
|
- |
|
|
|
(4,016 |
) |
Net cash used in investing activities |
|
|
(180,636 |
) |
|
|
(123,548 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of class A common stock and pre-funded warrants, net of issuance costs |
|
|
3,375,458 |
|
|
|
- |
|
Net proceeds from loans payable |
|
|
1,467,935 |
|
|
|
1,000,000 |
|
Payments on loans payable |
|
|
(2,440,627 |
) |
|
|
(229,384 |
) |
Proceeds from issuance of convertible series A preferred stock |
|
|
200,000 |
|
|
|
- |
|
Proceeds from convertible note payable |
|
|
1,000,000 |
|
|
|
- |
|
Repayment of note payable |
|
|
(474,121 |
) |
|
|
(371,183 |
) |
Proceeds from issuance of convertible debentures |
|
|
- |
|
|
|
650,000 |
|
Repayment of convertible debentures |
|
|
(100,000 |
) |
|
|
- |
|
Net cash provided by financing activities |
|
|
3,028,645 |
|
|
|
1,049,433 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in Cash, cash equivalents and restricted cash |
|
|
(171,303 |
) |
|
|
418,925 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
378,961 |
|
|
|
444,253 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
207,658 |
|
|
$ |
863,178 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
Interest payments during the year |
|
$ |
1,552,313 |
|
|
$ |
188,952 |
|
Income tax refund |
|
$ |
151,796 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Noncash investing and financing activity |
|
|
|
|
|
|
|
|
Series A Preferred Stock Dividend |
|
$ |
220,850 |
|
|
$ |
- |
|
SOURCE: Inspire Veterinary Partners, Inc.
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