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.

Facebook

https://www.facebook.com/InspireVeterinaryPartners/

LinkedIn

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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