News Press Releases

Inspire Veterinary Partners Reports First Quarter 2024 Financial Results

IVP | May 15, 2024

Total revenue of $4.8 million, a 13% increase compared to the prior year quarter
Same store sales growth, 3% year over year
Cost reduction initiatives implemented to improve cash management and accelerate path to free cash flow

VIRGINIA BEACH, VA / ACCESSWIRE / May 15, 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 first quarter ended March 31, 2024.

First Quarter 2024 Overview

Total revenue of $4.8 million, an increase of 13%
Services revenue of $3.5 million, an increase of 15%
Product revenue of $1.3 million, an increase of 6%

"2024 is off to a good start as we drove solid 13 percent top-line growth and believe our results highlight the broad-based growth and strong pet parent demand for our service and product offerings," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "In addition to record quarterly revenue, we achieved a positive same store revenue comp of 3%. We saw improvements via our focus on profitability which resulted in enhanced flow through and at clinic level. We've made important strategic decisions to help us increase operating efficiencies and focus our spending on the areas of our business where we are seeing the most favorable returns. Our team is committed to delivering operating discipline and high-quality execution and remains optimistic about our opportunities to increase growth and efficiencies across our business. Our field leaders have collaborated with our hospital teams to build more efficient team schedules which have resulted in high productivity per labor hour and a reduction in excess labor cost. Together with measures we are exploring to bolster our balance sheet, we continue to work to position 2024 as a pivotal year as we strive to achieve sustainable and profitable operations."

Carr added, "We are excited to see the business continue to evolve, and we remain focused on integrating and executing our newly acquired animal hospitals to provide more value to our customers. As we move through 2024,we remain confident in the sustainable, underlying demand for animal health, based on the strength of the human-animal bond and people's willingness to spend on pet health. Furthermore, we are excited about the strategic opportunities ahead and our role in continuing to drive innovation across the pet health category. The pet care industry continues to grow, and we believe we have opportunities to take advantage of that growth and drive higher returns to our shareholders."

First Quarter 2024 Operating Results

Total revenue was $4.8 million for the three months of 2024, an increase of 13% compared to total revenue of $4.3 million in the first three months of 2023, driven by an increase in sales in both Service and Product revenue. Service revenue for the three months of 2024 increased 15% to $3.5 million compared to the first three months of 2023, primarily driven by organic growth in existing clinic and animal hospital services and one new animal hospital acquired in the first quarter of 2023. Product revenue of $1.3 million increased 6% compared to the first three months of 2023 driven primarily by the acquisition of an animal hospital during the fourth quarter of 2023.

General and administrative expenses were $2.9 million for the first three months of 2024 compared to $1.8 million in the prior year period. Approximately $900k of the increased G&A is due to non-cash expenses the Company incurred related to stock/warrants issued for services in lieu of cash.

Net loss was $3.4 million for the first three months of 2024 compared to a net loss of $1.5 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 first quarter of 2024, and other third-party consulting arrangements entered into to increase investor communications, customer outreach and improve operations.

Balance Sheet

As of March 31, 2024, the Company had cash and cash equivalents of approximately $69,000.

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

	March 31,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	69,077	$	178,961
Accounts receivable, net		341,488		28,573
Due from former owners		-		32,519
Inventory		545,660		571,512
Refundable income tax		151,796		151,796
Prepaid expenses and other current assets		2,031,311		388,759
Total current assets		3,139,332		1,352,120

Restricted cash - non-current		200,000		200,000
Property and equipment, net		7,966,721		7,949,144
Right-of-use assets		1,562,367		1,616,198
Other intangibles, net		2,305,014		2,513,028
Goodwill		8,147,590		8,147,590
Other assets		73,989		12,895
Total assets	$	23,395,013	$	21,790,975

Liabilities and Stockholder's Deficit
Current liabilities:
Accounts payable	$	3,521,759	$	3,206,594
Accrued expenses		455,227		858,334
Cumulative Series A preferred stock dividends payable		2,250		92,322
Operating lease liabilities		133,113		141,691
Loan payable, net of discount		2,338,067		1,713,831
Bridge note, net of discount		-		-
Convertible note payable		500,000		-
Convertible debentures, net of issuance costs		-		100,000
Notes payable, net of discount		1,501,562		1,469,043
Total current liabilities		8,451,978		7,581,815

Operating lease liabilities, non-current		1,482,514		1,514,044
Notes payable - noncurrent		13,190,668		13,483,375
Total liabilities		23,125,160		22,579,234

COMMITMENTS AND CONTINGENCIES (Note 12)

STOCKHOLDER'S EQUITY (DEFICIT)
Common stock - Class A, $0.0001 par value, 1 million shares authorized, 742,563 and 70,421 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively.		74		7
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,891,500 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively.		389		389

Convertible series A preferred stock, $0.0001 par value, 2,000,000 shares authorized, 81,142 and 403,640 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively.		8			40
Additional paid in capital		25,118,701			20,426,562
Accumulated deficit		(24,849,319	)		(21,215,257	)
Total stockholder's equity (deficit)		269,853			(788,259	)
Total liabilities and stockholder's equity (deficit)	$	23,395,013		$	21,790,975

Inspire Veterinary Partners, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

	For the Three Months Ended March 31,
	2024			2023
Service revenue	$	3,545,599		$	3,072,885
Product revenue		1,285,968			1,209,630
Total revenue		4,831,567			4,282,515

Operating expenses
Cost of service revenue (exclusive of depreciation and amortization, shown separately below)		2,709,147			2,307,903
Cost of product revenue (exclusive of depreciation and amortization, shown separately below)		1,016,107			879,400
General and administrative expenses		2,873,343			1,801,659
Debt extinguishment loss		728,278			-
Depreciation and amortization		367,197			298,492
Total operating expenses		7,694,072			5,287,454

Loss from operations		(2,862,505	)		(1,004,939	)

Other income (expenses):
Interest income		2			1
Interest expense		(559,289	)		(545,435	)
Other income		-			11,424
Total other expenses		(559,287	)		(534,010	)

Loss before income taxes		(3,421,792	)		(1,538,949	)

Benefit for income taxes		-			-

Net loss		(3,421,792	)		(1,538,949	)
Dividend on convertible series A preferred stock		(214,520	)		-
Net loss attributable to class A and B common stockholders	$	(3,636,312	)	$	(1,538,949	)

Net loss per Class A and B common shares:
Basic and diluted	$	(8.97	)	$	(29.20	)
Weighted average shares outstanding per Class A and B common shares:
Basic and diluted		405,484			52,705

Inspire Veterinary Partners, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

	For the Three Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(3,421,792	)	$	(1,538,949	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		347,382			298,492
Amortization of debt issuance costs		15,825			70,212
Amortization of debt discount		379,313			242,631
Amortization of operating right of use assets		53,831			59,036
Issuance of warrants to CEO		-			2,701
Issuance of class A common stock for services		286,696			-
Loss on debt modification		728,278			-
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		(312,915	)		(70,553	)
Due from former owners		32,519			37,425
Inventory		25,852			(18,459	)
Prepaid expenses and other current assets		(1,642,552	)		60,414
Other assets		(61,094	)		(70,431	)
Accounts payable		315,165			550,043
Accrued expenses		(403,107	)		118,450
Cumulative Series A preferred stock dividends payable		(92,322	)		-
Operating lease liabilities		(40,108	)		(50,467	)
Net cash used in operating activities		(3,169,029	)		(309,455	)

Cash flows from investing activities:
Purchase of property and equipment		(156,945	)		(14,002	)
Net cash used in investing activities		(156,945	)		(14,002	)

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 loan payable		549,185			-
Payments on loan payable		(1,032,540	)		-
Proceeds from issuance of convertible series A preferred stock		200,000			-
Proceeds from convertible note payable		500,000			-
Repayment of note payable		(276,013	)		(176,931	)
Proceeds from issuance of convertible debentures		-			650,000
Repayment of convertible debentures		(100,000	)		-
Net cash provided by financing activities		3,216,090			473,069

Net increase (decrease) in cash, cash equivalents and restricted cash		(109,884	)		149,612
Cash, cash equivalents and restricted cash, beginning of period		378,961			444,253
Cash, cash equivalents and restricted cash, end of period	$	269,077		$	593,865

Supplemental Disclosure of Cash Flow Information
Interest payments during the year	$	1,316,378		$	239,430
Income taxes paid (refunded)	$	-		$	(188,952	)

Noncash investing and financing activity
Series A Preferred Stock Dividend Paid-in-Kind	$	212,270		$	-