Company provides nearly 80% statewide comprehensive insurance coverage in Utah under contract with providers such as Medicare, Select Health, Medicaid, and Blue Cross Blue Shield
Reimbursement from insurance payors increased 163.7% sequentially and is expected to increase as a percentage of total revenue going forward
Reimbursements from insurance payors totaled $126,325 in first half of 2024 as compared to $0 during the first half of 2023
SALT LAKE CITY, UT / ACCESSWIRE / August 14, 2024 / KindlyMD, Inc. ("KindlyMD" or the "Company") (NASDAQ:KDLY), a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies, today announced its financial results for the second quarter ended June 30, 2024 and is providing a shareholder update.
Tim Pickett, PA-C, KindlyMD Founder and CEO, stated, "During the second quarter we successfully closed on our IPO for gross proceeds of approximately $6 million. While from a total revenue perspective during the quarter we did not yet yield the return on investment from the additional working capital we received, we are very pleased with the 163.7% sequential growth in reimbursement from insurance payors. As Utah's first alternative medical treatment company to contract under the state's top insurance payors, we are laser focused on growing this segment of our revenue stream. We are now proud to provide nearly 80% of statewide comprehensive insurance coverage to the Utah community, through top providers including Medicare, Select Health, Medicaid, and Blue Cross Blue Shield, according to the 2023 Utah Health Insurance Market Report. We are working to continue this growth trend, particularly as we invest in the acquisition of new patients to our facilities."
"Our team is also focused on aggressive growth via accretive acquisitions of clinics in Utah to expand our footprint. As a leader in the market, we see significant opportunity to potentially acquire profitable locations and integrate onto our platform driving operational synergies and margin expansion. The market is highly fragmented, and our potential pipeline remains robust. We look forward to updating our shareholders on our progress in the near future."
Operational Highlights:
Completed IPO in June 2024 for net proceeds of $6.02 million
Achieved nearly 80% statewide comprehensive insurance coverage in Utah according to the 2023 Utah Health Insurance Market Report
Became Utah's first alternative medical treatment company to contract under the state's top insurance payors, which now include Medicare, Select Health and Medicaid and Blue Cross Blue Shield
Collaborated with Curaleaf to expand patient education on medical cannabis care in Utah with community care events held at multiple Curaleaf Utah medical cannabis pharmacies
Successfully registered on SAM.gov, the official U.S. federal funding platform
Subsequent Events:
Submitted a comment to the U.S. Department of Justice, following its recent proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act
Financial Highlights for the Quarterly Period Ended June 30, 2024
The Company earned $91,553 in reimbursements from insurance payors during the three months ending June 30, 2024, an increase of 163.7% over the $34,722 earned for the three months ending March 31, 2024. The Company earned $126,325 in reimbursements from insurance payors during the six months ended June 30, 2024, as compared to $0 during the three and six months ended June 30, 2023.
Revenues decreased by $340,481, or 34.8%, to $639,057 for the three months ended June 30, 2024, from $979,538 for the three months ended June 30, 2023. The decrease in revenues is primarily attributed to a decrease in cash-pay patient care services as KindlyMD continues to shift toward insurance billing with commercial and governmental payers including Medicare, Medicaid, Select Health, Blue Cross Blue Shield, and other commercial payers compared to the prior period.
Operating expenses increased by $95,423, or 6.0%, to $1,676,250 for the three months ended June 30, 2024, from $1,580,827 for the three months ended June 30, 2023. The increase in operating expenses is primarily attributable to an increase in general and administrative expenses, salaries and wages, and cost of revenues.
Net loss per share decreased by $0.13, or 100.0%, to $(0.26) for the three months ended June 30, 2024, compared to $(0.13) for the three months ended June 30, 2023. KindlyMD management strives to look for opportunities to optimize revenue by increasing sales, acquiring additional clinics, improving margins, and controlling ongoing operating expenses.
As of June 30, 2024, the Company had cash and cash equivalents of $4.74 million and total working capital of $4.11 million.
In June 2024, KindlyMD completed its IPO for total net proceeds of $6.02 million, providing adequate liquidity and cash reserves to meet its obligations for at least the 12-month period following June 30, 2024, and to assist the Company in implementing its strategic operational business plans to create sustained cash flow generation thereafter.
As of August 9, 2024, the Company had 5,947,169 common shares outstanding.
About KindlyMD
KindlyMD™️ is a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies to offer patients comprehensive care and reduce the addiction and dependency of opioid use in the U.S. KindlyMD currently operates four centers, including the largest alternative pain treatment center in Utah. With a focus on holistic pain management through its specialty outpatient clinical services, including, where appropriate, the recommendation of medical cannabis by KindlyMD healthcare providers, KindlyMD is providing better patient health outcomes.
For more information, please visit www.kindlymd.com.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in KindlyMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. KindlyMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
Investor Relations Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
(212) 896-1254
KindlyMD@KCSA.com
KINDLY MD, INC.
CONDENSED BALANCE SHEETS
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
||
|
|
(Unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Current Assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
4,740,006 |
|
|
$ |
525,500 |
|
Accounts receivable |
|
|
5,182 |
|
|
|
28,001 |
|
Inventories, net |
|
|
3,825 |
|
|
|
63,202 |
|
Prepaid expenses and other current assets |
|
|
305,655 |
|
|
|
225 |
|
Total Current Assets |
|
|
5,054,668 |
|
|
|
616,928 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
206,816 |
|
|
|
235,292 |
|
Operating lease right-of-use assets |
|
|
184,177 |
|
|
|
235,706 |
|
Security deposits |
|
|
11,276 |
|
|
|
11,276 |
|
TOTAL ASSETS |
|
$ |
5,456,937 |
|
|
$ |
1,099,202 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
628,749 |
|
|
$ |
329,810 |
|
Customer deposits |
|
|
4,150 |
|
|
|
3,425 |
|
Current portion of operating lease liabilities |
|
|
79,973 |
|
|
|
94,696 |
|
Current portion of finance lease liabilities |
|
|
2,010 |
|
|
|
- |
|
Current portion of notes payable, net |
|
|
228,061 |
|
|
|
148,517 |
|
Derivative liability |
|
|
- |
|
|
|
238,000 |
|
Total Current Liabilities |
|
|
942,943 |
|
|
|
814,448 |
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, net of current portion |
|
|
124,651 |
|
|
|
164,295 |
|
Finance lease liabilities, net of current portion |
|
|
8,635 |
|
|
|
|
|
Notes payable, net of current portion |
|
|
- |
|
|
|
228,871 |
|
TOTAL LIABILITIES |
|
|
1,076,229 |
|
|
|
1,207,614 |
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity (Deficit) |
|
|
|
|
|
|
|
|
Preferred Stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding as of June 30, 2024 and December 31, 2023 |
|
|
- |
|
|
|
- |
|
Common stock, $0.001 par value, 100,000,000 shares authorized; 5,939,516 and 4,617,798 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively |
|
|
5,940 |
|
|
|
4,618 |
|
Additional paid-in capital |
|
|
10,134,801 |
|
|
|
4,045,024 |
|
Accumulated deficit |
|
|
(5,760,033 |
) |
|
|
(4,158,054 |
) |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
4,380,708 |
|
|
|
(108,412 |
) |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|
$ |
5,456,937 |
|
|
$ |
1,099,202 |
|
KINDLY MD, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenues |
|
$ |
639,057 |
|
|
$ |
979,538 |
|
|
$ |
1,468,086 |
|
|
$ |
2,139,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
61,947 |
|
|
|
59,508 |
|
|
|
69,691 |
|
|
|
108,132 |
|
Salaries and wages |
|
|
1,126,893 |
|
|
|
1,109,559 |
|
|
|
1,834,859 |
|
|
|
2,042,860 |
|
General and administrative |
|
|
461,677 |
|
|
|
385,536 |
|
|
|
787,222 |
|
|
|
743,719 |
|
Depreciation |
|
|
25,733 |
|
|
|
26,224 |
|
|
|
50,634 |
|
|
|
51,666 |
|
Total Operating Expenses |
|
|
1,676,250 |
|
|
|
1,580,827 |
|
|
|
2,742,406 |
|
|
|
2,946,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS FROM OPERATIONS |
|
|
(1,037,193 |
) |
|
|
(601,289 |
) |
|
|
(1,274,320 |
) |
|
|
(806,494 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
13,828 |
|
|
|
13,075 |
|
|
|
25,868 |
|
|
|
37,301 |
|
Interest expense |
|
|
(318,450 |
) |
|
|
(8,194 |
) |
|
|
(375,689 |
) |
|
|
(8,194 |
) |
Loss on extinguishment of debt |
|
|
(38,889 |
) |
|
|
|
|
|
|
(38,889 |
) |
|
|
|
|
Gain on change in fair value of derivative liability |
|
|
61,051 |
|
|
|
- |
|
|
|
61,051 |
|
|
|
- |
|
Total Other Income (Expenses) |
|
|
(282,460 |
) |
|
|
4,881 |
|
|
|
(327,659 |
) |
|
|
29,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS BEFORE INCOME TAXES |
|
|
(1,319,653 |
) |
|
|
(596,408 |
) |
|
|
(1,601,979 |
) |
|
|
(777,387 |
) |
INCOME TAX EXPENSE |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
NET LOSS |
|
$ |
(1,319,653 |
) |
|
$ |
(596,408 |
) |
|
$ |
(1,601,979 |
) |
|
$ |
(777,387 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER COMMON SHARE - BASIC AND DILUTED |
|
$ |
(0.26 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED |
|
|
5,009,956 |
|
|
|
4,455,912 |
|
|
|
4,813,877 |
|
|
|
4,445,714 |
|
KINDLY MD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
For the Six Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net loss |
|
$ |
(1,601,979 |
) |
|
$ |
(777,387 |
) |
Adjustments to reconcile loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
15,500 |
|
|
|
338,021 |
|
Depreciation expense |
|
|
50,634 |
|
|
|
51,666 |
|
Loss on extinguishment of debt |
|
|
38,889 |
|
|
|
- |
|
Gain on change in fair value of derivative liability |
|
|
(61,051 |
) |
|
|
- |
|
Amortization of debt discounts |
|
|
357,439 |
|
|
|
876 |
|
Amortization of right-of-use assets |
|
|
51,529 |
|
|
|
61,589 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
22,819 |
|
|
|
4,161 |
|
Inventories |
|
|
59,377 |
|
|
|
(9,822 |
) |
Prepaid expenses and other current assets |
|
|
(305,430 |
) |
|
|
11,039 |
|
Security deposits |
|
|
- |
|
|
|
731 |
|
Accounts payable and accrued expenses |
|
|
298,939 |
|
|
|
106,668 |
|
Customer deposits |
|
|
725 |
|
|
|
300 |
|
Operating lease liabilities |
|
|
(54,367 |
) |
|
|
(62,806 |
) |
Net cash used in operating activities |
|
|
(1,126,976 |
) |
|
|
(274,964 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(11,182 |
) |
|
|
(14,420 |
) |
Net cash used in investing activities |
|
|
(11,182 |
) |
|
|
(14,420 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Net proceeds from issuance of notes payable |
|
|
45,000 |
|
|
|
- |
|
Net proceeds from issuance of related party note payable |
|
|
|
|
|
|
233,373 |
|
Net proceeds from issuance of common shares and warrants in connection with a public offering |
|
|
5,860,650 |
|
|
|
- |
|
Repayments of related party note payable |
|
|
- |
|
|
|
(20,282 |
) |
Repayments of notes payable |
|
|
(552,655 |
) |
|
|
- |
|
Repayments of finance lease liabilities |
|
|
(331 |
) |
|
|
- |
|
Net cash provided by financing activities |
|
|
5,352,664 |
|
|
|
213,091 |
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
4,214,506 |
|
|
|
(76,293 |
) |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
|
|
Beginning of the period |
|
|
525,500 |
|
|
|
186,918 |
|
End of the period |
|
$ |
4,740,006 |
|
|
$ |
110,625 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
19,089 |
|
|
$ |
- |
|
Cash paid for income taxes |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Debt discounts on notes payable |
|
$ |
10,556 |
|
|
$ |
- |
|
Debt discount on related party note payable |
|
$ |
- |
|
|
$ |
16,627 |
|
Fair value of derivative liability recognized upon issuance of notes payable |
|
$ |
38,000 |
|
|
$ |
- |
|
Extinguishment of derivative liability upon settlement of notes payable |
|
$ |
214,949 |
|
|
$ |
- |
|
Finance purchases of property and equipment |
|
$ |
10,976 |
|
|
$ |
- |
|
SOURCE: KindlyMD, Inc
View the original press release on accesswire.com
