from INSPIRE VETERINARY PARTNERS, INC.
Inspire Veterinary Partners Reports Third Quarter 2023 Financial Results
VIRGINIA BEACH, VA / ACCESSWIRE / November 14, 2023 / 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 financial results for its third quarter and nine months ended September 30, 2023.
"We are pleased to report strong third quarter 2023 results as a newly public company with total revenue growing 41 percent year-over-year," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "The positive momentum in our business has continued through the third quarter making us optimistic about our overall growth prospects in 2023. Looking forward, we believe there is significant opportunity ahead of us in the large, growing, and unconsolidated pet care market."
Mr. Carr added, "With our successful initial public offering behind us, we are very excited about the opportunity to accelerate the pace of our animal hospital acquisition program. We recently completed the acquisition of our first animal hospital in Pennsylvania, Valley Veterinary Service, whose 2022 gross revenues exceeded $1.7 million.Our team is focused on building a robust pipeline of acquisition targets. With 14 hospitals in 10 states, we believe there is a lot of growth potential ahead of us both organically and through acquisition. We are excited to execute our growth strategy and deliver enhanced value for our shareholders."
Third Quarter 2023
Total revenue was $4.1 million for the third quarter of 2023, an increase of 42% compared to total revenue of $2.9 million in the prior year period, driven by an increase in sales in both Service and Product revenue which were significantly positively impacted by acquisitions. Service revenue for the third quarter of 2023 increased 30% to $2.9 million, driven primarily by three new animal hospitals and clinics acquired in 2023. Product revenue of $1.2 million increased 76% compared to the prior year period also driven primarily by the acquisition of additional animal hospitals and clinics in 2023.
General and administrative expenses increased $1.8 million or 103%, to $3.6 million for the three months ended September 30, 2023 compared to $1.8 million for the three months ended September 30, 2022. The increase was primarily due to the expenses generated by the Company's acquired animal hospitals and clinics, the start-up and organizational expenses associated with the acquisitions and the costs associated with the Company's initial public offering and listing on the Nasdaq Capital Market.
Net loss was $7.9 million for the third quarter of 2023 compared to net loss of $1.4 million for the prior year period. The increase in net loss was primarily attributable to the additional operating expenses, the non-cash beneficial conversion feature of $4.1 million on the convertible debenture and series A preferred stock recognized upon the completion of the IPO and the acquisition costs associated with the Company's recently acquired animal hospitals and clinics. The Company also incurred additional costs associated with the initial public offering that closed on August 31, 2023.
First Nine Months of 2023
Total revenue was $12.9 million for the nine months of 2023, an increase of 93% compared to total revenue of $6.7 million in the prior year period, driven by an increase in sales in both Service and Product revenue which were significantly positively impacted by acquisitions. Service revenue for the nine months of 2023 increased 88% to $9.2 million primarily driven by acquisitions of animal hospitals and clinics accumulated since the prior period. Product revenue of $3.7 million increased 110% compared to the prior year period driven primarily by acquisitions of animal hospitals and clinics in 2023.
General and administrative expenses were $7.2 million for the first nine months of 2023 compared to $3.7 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 start-up and organizational expenses associated with acquisitions and the costs associated with the Company's initial public offering and Nasdaq listing.
Net loss was $10.6 million for the first nine months of 2023 compared to a net loss of $3.0 million for the prior year period. The increase in net loss was primarily attributable to the additional operating expenses, the non-cash beneficial conversion feature of $4.1 million on the convertible debenture and series A preferred stock recognized upon the completion of the IPO and the acquisition costs associated with the Company's recently acquired animal hospitals and clinics. The Company also incurred additional costs associated with its initial public offering.
Balance Sheet
As of September 30, 2023, the Company had cash and cash equivalents of approximately $1.9 million.
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 Registration Statement on Form S-1 filed with the SEC. 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
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,956,385 | $ | 444,253 | ||||
Accounts receivable | 241,631 | - | ||||||
Due from former owners | - | 269,883 | ||||||
Inventory | 680,313 | 582,019 | ||||||
Refundable income tax | 151,796 | 192,139 | ||||||
Prepaid expenses and other current assets | 507,469 | 253,795 | ||||||
Total current assets | 3,537,594 | 1,742,089 | ||||||
Property and equipment, net | 7,314,924 | 7,323,050 | ||||||
Right-of-use assets | 630,187 | 746,973 | ||||||
Other intangibles, net | 2,185,974 | 2,729,574 | ||||||
Goodwill | 7,614,553 | 7,614,553 | ||||||
Other assets | 13,640 | 29,456 | ||||||
Total assets | $ | 21,296,872 | $ | 20,185,695 | ||||
Liabilities and Stockholder's Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,301,452 | $ | 1,018,931 | ||||
Accrued expenses | 547,588 | 690,740 | ||||||
Cumulative Series A preferred stock dividends payable | 133,828 | - | ||||||
Operating lease liabilities | 89,579 | 91,152 | ||||||
Loan payable | 859,600 | - | ||||||
Bridge note, net of discount | - | 3,899,156 | ||||||
Convertible debentures, net of issuance costs | 100,000 | - | ||||||
Notes payable, net of discount | 1,061,580 | 1,549,861 | ||||||
Total current liabilities | 5,093,627 | 7,249,840 | ||||||
Operating lease liabilities, non-current | 569,262 | 666,179 | ||||||
Convertible debentures, net of issuance costs | - | 3,688,805 | ||||||
Notes payable - noncurrent | 12,921,607 | 13,716,352 | ||||||
Total liabilities | 18,584,496 | 25,321,176 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Stockholder's equity (deficit) | ||||||||
Common stock - Class A, $0.0001 par value, 100 million shares authorized, 4,605,077 and 970,457 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 461 | 98 | ||||||
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,891,500 and 4,300,000 shares issued and outstanding as of September 30,2023 and December 31, 2022, respectively | 389 | 430 | ||||||
Convertible series A preferred stock, $0.0001 par value, 1,000,000 shares authorized, 442,458 and 0 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 44 | - | ||||||
Additional paid in capital | 19,605,675 | 1,107,439 | ||||||
Accumulated deficit | (16,894,193 | ) | (6,243,448 | ) | ||||
Total stockholder's equity (deficit) | 2,712,376 | (5,135,481 | ) | |||||
Total liabilities and stockholder's equity (deficit) | $ | 21,296,872 | $ | 20,185,695 | ||||
Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Service revenue | $ | 2,935,922 | $ | 2,253,400 | $ | 9,209,501 | $ | 4,898,599 | ||||||||
Product revenue | 1,183,726 | 670,679 | 3,682,088 | 1,756,758 | ||||||||||||
Total revenue | 4,119,648 | 2,924,079 | 12,891,589 | 6,655,357 | ||||||||||||
Operating expenses | ||||||||||||||||
Cost of service revenue (exclusive of depreciation and amortization, shown separately below) | 2,206,216 | 1,717,483 | 6,847,963 | 3,583,420 | ||||||||||||
Cost of product revenue (exclusive of depreciation and amortization, shown separately below) | 853,622 | 457,068 | 2,631,752 | 1,166,353 | ||||||||||||
General and administrative expenses | 3,561,790 | 1,757,511 | 7,249,250 | 3,745,867 | ||||||||||||
Debt extinguishment loss | 16,105 | - | 16,105 | - | ||||||||||||
Depreciation and amortization | 313,316 | 163,208 | 915,824 | 325,563 | ||||||||||||
Total operating expenses | 6,951,049 | 4,095,270 | 17,660,894 | 8,821,203 | ||||||||||||
Loss from operations | (2,831,401 | ) | (1,171,191 | ) | (4,769,305 | ) | (2,165,846 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income | 12 | 981 | 18 | 1,019 | ||||||||||||
Interest expense | (914,604 | ) | (241,531 | ) | (1,745,415 | ) | (842,866 | ) | ||||||||
Beneficial conversion feature | (4,137,261 | ) | - | (4,137,261 | ) | - | ||||||||||
Other income | (748 | ) | 4,416 | 1,218 | (180 | ) | ||||||||||
Total other expense | (5,052,601 | ) | (236,134 | ) | (5,881,440 | ) | (842,027 | ) | ||||||||
Loss before income taxes | (7,884,002 | ) | (1,407,325 | ) | (10,650,745 | ) | (3,007,873 | ) | ||||||||
Benefit for income taxes | - | - | - | 30,094 | ||||||||||||