VIRGINIA BEACH, VA / ACCESSWIRE / November 13, 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 third quarter and nine months ended September 30, 2024.

Select Third Quarter 2024 Highlights Compared to Prior Year Period

  • Total revenue of approximately $4.0 million, a decrease of 1.7%

  • Services revenue of $2.9 million, an increase of 1%

  • Product revenue of $1.1 million, a decrease of 9%

  • G&A decreased 16%

  • Net loss decreased 56%

  • Total revenue of approximately $13.3 million, an increase of 3%

  • Services revenue of approximately $9.7 million, an increase of 6%

  • Product revenue of $3.5 million, a decrease of 4%

  • G&A increased 11%

  • Net loss decreased 3%

Select Nine Month 2024 Highlights Compared to Prior Year Period

  • Total revenue of approximately $13.3 million, an increase of 3%

  • Services revenue of approximately $9.7 million, an increase of 6%

  • Product revenue of $3.5 million, a decrease of 4%

  • G&A increased 11%

  • Net loss decreased 3%

“Our third quarter results demonstrate the ongoing work of our dedicated teams on key initiatives to strengthen our fundamentals and accelerate the path to improved profitability,” said Kimball Carr, President & Chief Executive Officer of Inspire. “While our third quarter total revenue was slightly lower on a quarterly comparative basis, we continued to streamline our operations to lower our cost structure, leading to a 16% decrease in G&A and a reduction in net loss. Looking ahead, I see tremendous opportunities for us to significantly improve our operating and financial performance and better leverage IVP’s platform by continuing to add attractive single and multi-unit animal hospitals, and other synergistic products and services. We remain confident in our direction and belief that the changes and investments we are making across our business will create a more compelling, enduring value proposition for all stakeholders.”

Third Quarter 2024 Highlights Compared to Prior Year Period

Total revenue was approximately $4.0 million for the third quarter of 2024, a decrease of 1.7% compared to total revenue of $4.1 million in the prior year period. Service revenue for the third quarter of 2024 increased 1% to $2.9 million compared to the prior year period, primarily driven by the acquisition of Valley Veterinary animal hospital in the fourth quarter of 2023. Product revenue of $1.1 million decreased 9% compared to the prior year period driven primarily bycustomers purchasing less products per visit.

General and administrative expenses decreased 16% to $3.0 million for the third quarter of 2024 compared to $3.5 million in the prior year period. The decrease was primarily due to the Company’s decrease in payroll cost from a reduced headcount, cost associated with the initial public offering in August 2023 and termination of the consulting arrangements with Blue Herron and Star Circle.

Net loss decreased 56% to $3.5 million for the third quarter of 2024 compared to a net loss of $7.9 million for the prior year period which included the beneficial conversion feature on the convertible debenture and series A preferred stock of approximately $4.1 million recognized upon the completion of the IPO.

Balance Sheet

As of September 30, 2024, the Company had cash and cash equivalents of approximately $0.68 million. Subsequent to the end of the third quarter of 2024, the Company closed its previously announced registered direct offering on October 23 for the purchase and sale of an aggregate of 10 million shares of its Class A common stock at a purchase price of $0.25 per share. The aggregate gross proceeds to the Company from the offering were $2.5 million, prior to deducting placement agent’s fees and other offering expenses payable by Inspire.

Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets

September 30,

December 31,

2024

2023

Assets
Current assets:
Cash and cash equivalents

$

681,199

$

178,961

Accounts receivable, net

115,551

28,573

Due from former owners

32,519

Inventory

563,595

571,512

Refundable income tax

151,796

Prepaid expenses and other current assets

3,090,371

388,759

Total current assets

4,450,716

1,352,120

Restricted cash – non-current

200,000

200,000

Property and equipment, net

6,486,444

7,949,144

Right-of-use assets

1,347,026

1,616,198

Other intangibles, net

1,864,355

2,513,028

Goodwill

8,022,082

8,147,590

Other assets

25,115

12,895

Total assets

$

22,395,738

$

21,790,975

Liabilities and Stockholder’s Equity (Deficit)
Current liabilities:
Accounts payable

$

2,073,582

$

3,206,594

Accrued expenses

305,118

858,334

Cumulative Series A preferred stock dividends payable

92,322

Operating lease liabilities

164,107

141,691

Loans payable, net of discount

2,233,004

1,713,831

Convertible notes payable

850,000

Convertible debentures, net of issuance costs

100,000

Notes payable, net of discount

1,401,449

1,469,043

Total current liabilities

7,027,260

7,581,815

Operating lease liabilities, non-current

1,417,372

1,514,044

Notes payable – noncurrent

10,921,103

13,483,375

Total liabilities

19,365,735

22,579,234

Commitments and Contingencies (Note 15)
Stockholder’s Equity (Deficit)
Common stock – Class A, $0.0001 par value, 100 million shares authorized, 13,363,688 and 70,421 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.

1,336

7

Common stock – Class B, $0.0001 par value, 20 million shares authorized, 3,891,500 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.

389

389

Convertible series A preferred stock, $0.0001 par value, 1 million shares authorized, 0 and 403,640 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.

40

Additional paid in capital

34,761,924

20,426,562

Accumulated deficit

(31,733,646

)

(21,215,257

)

Total stockholder’s equity (deficit)

3,030,003

(788,259

)

Total liabilities and stockholder’s equity (deficit)

$

22,395,738

$

21,790,975

Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations

For the Three Months Ended
September 30,

For the Nine Months Ended
September 30,

2024

2023

2024

2023

Service revenue

$

2,969,748

$

2,935,922

$

9,735,585

$

9,209,501

Product revenue

1,079,277

1,183,726

3,535,388

3,682,088

Total revenue

4,049,025

4,119,648

13,270,973

12,891,589

Operating expenses
Cost of service revenue (exclusive of depreciation and amortization, shown separately below)

2,568,085

2,206,216

7,705,972

6,847,963

Cost of product revenue (exclusive of depreciation and amortization, shown separately below)

854,921

853,622

2,807,025

2,631,752

General and administrative expenses

2,988,122

3,561,790

8,080,199

7,249,250

Debt extinguishment loss

16,105

1,587,862

16,105

Depreciation and amortization

340,167

313,316

1,048,290

915,824

Gain on sale of business

(467,049

)

(467,049

)

Total operating expenses

6,284,246

6,951,049

20,762,299

17,660,894

Loss from operations

(2,235,221

)

(2,831,401

)

(7,491,326

)

(4,769,305

)

Other income (expenses):
Interest income

44

12

46

18

Interest expense

(1,254,149

)

(914,604

)

(2,801,491

)

(1,745,415

)

Beneficial conversion feature

(4,137,261

)

(4,137,261

)

Other expenses

(748

)

(4,768

)

1,218

Total other expenses

(1,254,105

)

(5,052,601

)

(2,806,213

)

(5,881,440

)

Loss before income taxes

(3,489,326

)

(7,884,002

)

(10,297,539

)

(10,650,745

)

Benefit for income taxes

Net loss

(3,489,326

)

(7,884,002

)

(10,297,539

)

(10,650,745

)

Dividend on convertible series A preferred stock

(133,828

)

(220,850

)

(133,828

)

Net loss attributable to class A and B common stockholders

$

(3,489,326

)

$

(8,017,830

)

$

(10,518,389

)

$

(10,784,573

)

Net loss per Class A and B common shares:
Basic and diluted

$

(0.38

)

$

(1.86

)

$

(1.75

)

$

(2.50

)

Weighted average shares outstanding per Class A and B common shares:
Basic and diluted

9,070,371

4,321,507

6,019,913

4,313,683

Inspire Veterinary Partners, Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

Convertible Series A

Preferred Stock

Class A Common Stock

Class B Common Stock

Additional

Accumulated

Stockholders’
Equity

No. of
Shares

Amount

No. of
Shares

Amount

No. of
Shares

Amount

Paid-in Capital

Deficit
(As Restated)
(Deficit)
(As Restated)
Balance as of December 31, 2022

$

9,705

$

1

4,300,000

$

430

$

1,107,536

$

(6,243,448

)

$

(5,135,481

)

Issuance of warrants to CEO

2,701

2,701

Net loss

(1,538,949

)

(1,538,949

)

Balance as of March 31, 2023

$

9,705

$

1

4,300,000

$

430

$

1,110,237

$

(7,782,397

)

$

(6,671,729

)

Issuance of convertible series A preferred stock in exchange for bridge note (contingent upon a qualified offering as of or before September 1, 2023 (See note 8))

442,458

Net loss

(1,227,794

)

(1,227,794

)

Balance as of June 30, 2023

442,458

$

9,705

$

1

4,300,000

$

430

$

1,110,237

$

(9,010,191

)

$

(7,899,523

)

Issuance of class A common stock in connection with initial public offering, net of issuance costs

16,000

2

5,439,569

5,439,571

Recognition of convertible series A preferred stock issuance upon initial public offering

44

4,440,644

4,440,688

Conversion of convertible debentures into class A common stock

14,959

1

4,414,316

4,414,317

Conversion of class B common stock into class A common stock

4,085

(408,500

)

(41

)

41

Convertible series A preferred stock cumulative dividends

(133,828

)

(133,828

)

Issuance of common stock for services

1,302

197,892

197,892

Beneficial conversion feature on convertible debentures

1,569,395

1,569,395

Beneficial conversion feature on convertible series A preferred stock

2,567,866

2,567,866

Net loss

(7,884,002

)

(7,884,002

)

Balance as of September 30, 2023

442,458

$

44

46,051

$

5

3,891,500

$

389

$

19,606,132

$

(16,894,193

)

$

2,712,376

Convertible Series A
Preferred Stock

Class A Common Stock

Class B Common Stock

No. of
Shares

Amount

No. of
Shares

Amount

No. of
Shares

Amount

Additional
Paid-in
Capital

Accumulated
Deficit

Stockholder’
Equity
(Deficit)

Balance as of December 31, 2023

403,640

$

40

70,421

$

7

3,891,500

$

389

$

20,426,562

$

(21,215,257

)

$

(788,259

)

Issuance of class A common stock and pre-funded warrants, net of issuance costs

28,599

3

3,375,455

3,375,458

Exercise of pre-funded warrants

441,989

44

(44

)

Issuance of Class A common stock and pre-funded warrants in connection with commitment shares

12,143

1

599,999

600,000

Issuance of convertible series A preferred stock

20,000

2

199,998

200,000

Issuance of class A common stock for services

39,051

4

286,692

286,696

Issuance of class A common stock in connection with general release agreement

2,460

20,000

20,000

Conversion of convertible series A preferred stock into class A common stock

(363,725

)

(36

)

147,900

15

21

Convertible series A preferred stock cumulative dividends

(2,250

)

(2,250

)

Convertible series A preferred stock dividend

21,227

2

212,268

(212,270

)

Net loss

(3,421,792

)

(3,421,792

)

Balance as of March 31, 2024

81,142

$

8

742,563

$

74

3,891,500

$

389

$

25,118,701

$

(24,849,319

)

$

269,853

Exercise of pre-funded warrants

102,500

10

(10

)

Conversion of convertible series A preferred stock into class A common stock

(54,771

)

(5

)

198,992

20

(15

)

Convertible series A preferred stock dividend

858

10,830

(8,580

)

2,250

Net loss

(3,386,421

)

(3,386,421

)

Balance as of June 30, 2024

27,229

$

3

1,044,055

$

104

3,891,500

$

389

$

25,129,506

$

(28,244,320

)

$

(3,114,318

)

Issuance of class A common stock and warrants, net of issuance costs

146,475

15

5,459,985

5,460,000

Exercise of pre-funded warrants

5,853,846

585

(585

)

Exercise of class A common stock warrants

3,500,000

350

3,499,650

3,500,000

Conversion of convertible series A preferred stock into class A common stock

(27,229

)

$

(3

)

272,290

$

27

(24

)

Conversion of convertible notes payable

2,547,022

255

649,745

650,000

Stock-based compensation

23,647

23,647

Net loss

(3,489,326

)

(3,489,326

)

Balance as of September 30, 2024

$

13,363,688

$

1,336

3,891,500

$

389

$

34,761,924

$

(31,733,646

)

$

3,030,003

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
[email protected]

General Inquires

Morgan Wood
[email protected]

SOURCE: INSPIRE VETERINARY PARTNERS, INC.

View the original press release on accesswire.com