VIRGINIA BEACH, VA / ACCESS Newswire / March 31, 2025 / 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 the full year ended December 31, 2024.
Select Full Year 2024 Highlights
Total revenue of approximately $16.6 million, flat year-over -year
Services revenue of approximately $12.2 million, an increase of 3%.
Product revenue of $4.4 million, a decrease of 8%.
Total operating expenses increased by 7%.
Net loss decreased by $0.5 million or 4%.
Executive Commentary
"In 2024, we have made significant strides in our transformation journey, and believe we are making meaningful progress across our strategic priorities to build a stronger, more efficient organization. Our focused execution is already yielding results as we move through 2025, validating our direction and setting the foundation for long-term success," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "Inspire invested throughout 2024 to prepare several major drivers of future growth, differentiation, and scalable capabilities while also reducing loss and controlling expenses. While there is more work ahead, I am confident our leadership team is well-positioned to build on this momentum, deliver improved growth in 2025 and position the business for sustainable profitable growth."
Full Year 2024 Financial Overview
All comparisons are made versus the same period in 2023 unless otherwise stated.
For full year 2024, total revenue was approximately $16.6 million, or unchanged. Service revenue for full year 2024 increased $0.3 million or 3%, to $12.2 million. The increase was driven primarily by the acquisition of an animal hospital in the fourth quarter of 2023 and an increase in the price of our services slightly offset by the sale of the KVC practice in the third quarter of 2024. Product revenue for full year 2024 decreased $0.4 million, or 8%, to $4.4 million. The decrease was primarily a result of customers purchasing less products per visit and by the sale of the KVC practice in the third quarter of 2024.
Total operating expenses increased $1.9 million or 7%. The increase was primarily due to the expenses generated by the Valley Veterinary practice acquisition, and various consulting contracts the Company entered into in 2024related to the financings closed during the year.
Net loss for full year 2024 decreased $0.5 million, or 4%, to $14 million. The decrease in net loss is primarily due to the gain on sale of the KVC practice and omission of any beneficial conversion feature in 2024.
Balance Sheet
As of December 31, 2024, the Company had cash and cash equivalents of approximately $0.5 million. Subsequent to the close of the fourth quarter, the Company announced on March 26, 2025, the closing of a securities purchase agreement with an investor pursuant to a registered direct offering for aggregate gross proceeds of approximately $2.0 million Approximately $2.0 million was funded in full upon the closing of the Offering, and up to an additional $4.0 million may be funded upon full cash exercise of the warrants. No assurance can be given that any of the warrants will be exercised. Inspire intends to use the net proceeds from the Offering for working capital, general corporate purposes, strategic investments, and any additional potential future acquisitions. A final prospectus supplement and accompanying prospectus relating to the registered direct offering was filed with the SEC and may be obtained on the SEC's website at http://www.sec.gov
Post Year End 2024 Operational Highlights
Appointed Samatha A. Ciulla as Director of Business Development to oversee Inspire's business development, including the expansion into new markets, formation of partnerships and pursuit of strategic acquisitions.
Engaged STNL Advisors, a full-service net lease advisory firm, to review the Company's real estate portfolio and provide strategic guidance on opportunities to expand, update and add new facilities.
Registered the trade name ‘Family Pet Care' in the state of Maryland as part of a planned expansion in the Mid-Atlantic region. Inspire intends to replicate the design of its Texas based Family Pet Care state-of-the-art facility in new or future upgrades across the Company's platform.
Entered into an exclusive, non-binding letter of intent to acquire 100% ownership interest in one animal hospital located in central Florida. If completed, the acquisition could potentially add approximately $1.8 million in (unaudited) revenue.
Investments in Growth
Implemented new strategies and tools to attract and retain new clients, enhanced scheduling and clinic productivity.
Completed companywide integrations across accounting platforms, practice management software and key performance indicator reporting systems.
Invested in improved unit managers and built new job leveling programs which allow our leaders to progress in their careers with IVP.
Added experienced clinical recruiting leadership and revamped the talent selection process.
Onboarded experienced business development leadership and re-engineered our M&A workflow to evaluate new acquisition targets more efficiently and with improved market data.
Enhanced our relationships with major suppliers and service providers to leverage our growing scale.
About Inspire Veterinary Partners, Inc.
Inspire Veterinary Partners is an owner and provider of pet health care services throughout 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, statements by the Company relating to the completion of the offering, the satisfaction of customary closing conditions related to the offering, the intended use of proceeds from the offering, receipt of Stockholder Approval as well as 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.
Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Balance Sheets
|
Year Ended December 31, |
|
||||||
|
2024 |
|
|
2023 |
|
|||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
523,690 |
|
|
$ |
178,961 |
|
Accounts receivable, net |
|
|
40,675 |
|
|
|
28,573 |
|
Due from former owners |
|
|
- |
|
|
|
32,519 |
|
Inventory |
|
|
516,650 |
|
|
|
571,512 |
|
Refundable income tax |
|
|
- |
|
|
|
151,796 |
|
Prepaid expenses and other current assets |
|
|
942,456 |
|
|
|
388,759 |
|
Total current assets |
|
|
2,023,471 |
|
|
|
1,352,120 |
|
|
|
|
|
|
|
|
|
|
Restricted cash - non-current |
|
|
200,000 |
|
|
|
200,000 |
|
Property and equipment, net |
|
|
6,382,788 |
|
|
|
7,949,144 |
|
Right-of-use assets |
|
|
1,879,729 |
|
|
|
1,616,198 |
|
Other intangibles, net |
|
|
1,633,927 |
|
|
|
2,513,028 |
|
Goodwill |
|
|
8,022,082 |
|
|
|
8,147,590 |
|
Other assets |
|
|
53,997 |
|
|
|
12,895 |
|
Total assets |
|
$ |
20,195,994 |
|
|
$ |
21,790,975 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholder's Deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,979,503 |
|
|
$ |
3,206,594 |
|
Accrued expenses |
|
|
285,770 |
|
|
|
858,334 |
|
Cumulative Series A preferred stock dividends payable |
|
|
- |
|
|
|
92,322 |
|
Operating lease liabilities |
|
|
183,981 |
|
|
|
141,691 |
|
Loans payable, net of discount |
|
|
2,340,020 |
|
|
|
1,713,831 |
|
Convertible debentures, net of issuance costs |
|
|
- |
|
|
|
100,000 |
|
Notes payable, net of discount |
|
|
3,410,465 |
|
|
|
1,469,043 |
|
Total current liabilities |
|
|
8,199,739 |
|
|
|
7,581,815 |
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
|
1,943,487 |
|
|
|
1,514,044 |
|
Notes payable - noncurrent |
|
|
8,490,763 |
|
|
|
13,483,375 |
|
Total liabilities |
|
|
18,633,989 |
|
|
|
22,579,234 |
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies (Note 15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholder's Equity (Deficit) |
|
|
|
|
|
|
|
|
Common stock - Class A, $0.0001 par value, 4 million shares authorized, 1,176,059 and 2,817 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively. |
|
|
117 |
|
|
|
- |
|
Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,020,750 and 3,891,500 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively. |
|
|
302 |
|
|
|
389 |
|
Convertible series A preferred stock, $0.0001 par value, 1 million shares authorized, 0 and 403,640 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively. |
|
|
- |
|
|
|
40 |
|
Additional paid in capital |
|
|
37,911,867 |
|
|
|
20,426,569 |
|
Accumulated deficit |
|
|
(36,350,281 |
) |
|
|
(21,215,257 |
) |
Total stockholder's equity (deficit) |
|
|
1,562,005 |
|
|
|
(788,259 |
) |
Total liabilities and stockholder's equity (deficit) |
|
$ |
20,195,994 |
|
|
$ |
21,790,975 |
|
Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Operations
|
Year Ended December 31, |
|
||||||
|
2024 |
|
|
2023 |
|
|||
Service revenue |
|
$ |
12,188,526 |
|
|
$ |
11,879,934 |
|
Product revenue |
|
|
4,403,583 |
|
|
|
4,795,459 |
|
Total revenue |
|
|
16,592,109 |
|
|
|
16,675,393 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of service revenue (exclusive of depreciation and amortization, shown separately below) |
|
|
9,736,282 |
|
|
|
9,700,963 |
|
Cost of product revenue (exclusive of depreciation and amortization, shown separately below) |
|
|
3,563,279 |
|
|
|
3,420,515 |
|
General and administrative expenses |
|
|
11,421,352 |
|
|
|
9,476,287 |
|
Depreciation and amortization |
|
|
1,308,619 |
|
|
|
1,252,539 |
|
Impairment expense |
|
|
56,664 |
|
|
|
- |
|
Gain on sale of business |
|
|
(467,049 |
) |
|
|
- |
|
Total operating expenses |
|
|
25,619,147 |
|
|
|
23,850,304 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(9,027,038 |
) |
|
|
(7,174,911 |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
Interest income |
|
|
53 |
|
|
|
21 |
|
Interest expense |
|
|
(3,098,290 |
) |
|
|
(2,538,710 |
) |
Loss on debt extinguishment |
|
|
- |
|
|
|
(16,105 |
) |
Loss on debt modification |
|
|
(2,134,218 |
) |
|
|
(927,054 |
) |
Beneficial conversion feature |
|
|
- |
|
|
|
(4,137,261 |
) |
Other income (expenses) |
|
|
(4,768 |
) |
|
|
1,134 |
|
Total other expenses |
|
|
(5,237,223 |
) |
|
|
(7,617,975 |
) |
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(14,264,261 |
) |
|
|
(14,792,886 |
) |
|
|
|
|
|
|
|
|
|
Benefit for income taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(14,264,261 |
) |
|
|
(14,792,886 |
) |
Dividend on convertible series A preferred stock |
|
|
(220,850 |
) |
|
|
(271,245 |
) |
Net loss attributable to class A and B common stockholders |
|
$ |
(14,485,111 |
) |
|
$ |
(15,064,131 |
) |
|
|
|
|
|
|
|
|
|
Net loss per Class A and B common shares: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(2.61 |
) |
|
$ |
(3.50 |
) |
Weighted average shares outstanding per Class A and B common shares: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
5,550,959 |
|
|
|
4,309,796 |
|
Inspire Veterinary Partners, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
|
Year Ended December 31, |
|
||||||
|
2024 |
|
|
2023 |
|
|||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(14,264,261 |
) |
|
$ |
(14,792,886 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,337,723 |
|
|
|
1,252,540 |
|
Amortization of debt issuance costs |
|
|
15,825 |
|
|
|
128,583 |
|
Amortization of debt discount |
|
|
2,275,594 |
|
|
|
864,350 |
|
Amortization of operating right of use assets |
|
|
329,878 |
|
|
|
162,298 |
|
Stock-based compensation |
|
|
23,647 |
|
|
|
- |
|
Issuance of warrants to CEO |
|
|
- |
|
|
|
2,701 |
|
Issuance of class A common stock for services |
|
|
376,696 |
|
|
|
397,892 |
|
Debt extinguishment loss |
|
|
- |
|
|
|
16,105 |
|
Loss on debt modification |
|
|
2,134,218 |
|
|
|
927,054 |
|
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 |
|
|
|
- |
|
Bad debt provision |
|
|
- |
|
|
|
123,513 |
|
Beneficial conversion feature |
|
|
- |
|
|
|
4,137,261 |
|
Gain on disposal of business |
|
|
(467,049 |
) |
|
|
- |
|
Impairment expense |
|
|
56,664 |
|
|
|
- |
|
Changes in operating assets and liabilities, net of effect of acquisitions: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(12,102 |
) |
|
|
(152,086 |
) |
Due from former owners |
|
|
32,519 |
|
|
|
237,364 |
|
Inventory |
|
|
12,418 |
|
|
|
84,912 |
|
Refundable income tax |
|
|
151,796 |
|
|
|
40,343 |
|
Prepaid expenses and other current assets |
|
|
(553,697 |
) |
|
|
(134,964 |
) |
Other assets |
|
|
(41,102 |
) |
|
|
- |
|
Accounts payable |
|
|
(1,227,091 |
) |
|
|
2,187,663 |
|
Accrued expenses |
|
|
(593,544 |
) |
|
|
813,144 |
|
Cumulative Series A preferred stock dividends payable |
|
|
(92,322 |
) |
|
|
- |
|
Other assets, net |
|
|
- |
|
|
|
16,561 |
|
Operating lease liabilities |
|
|
(121,676 |
) |
|
|
(133,119 |
) |
Net cash used in operating activities |
|
|
(10,005,866 |
) |
|
|
(3,820,771 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(237,983 |
) |
|
|
(383,730 |
) |
Payment for acquisition of businesses |
|
|
- |
|
|
|
(1,485,800 |
) |
Net cash used in investing activities |
|
|
(237,983 |
) |
|
|
(1,869,530 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of class A common stock and warrants, net of issuance costs |
|
|
5,460,000 |
|
|
|
5,439,571 |
|
Proceeds from issuance of class A common stock and pre-funded warrants, net of issuance costs |
|
|
5,227,039 |
|
|
|
- |
|
Repurchase and cancellation of the class B common stock |
|
|
(650,000 |
) |
|
|
- |
|
Net proceeds from loans payable |
|
|
1,981,585 |
|
|
|
2,038,531 |
|
Payments on loans payable |
|
|
(5,113,947 |
) |
|
|
(1,923,474 |
) |
Proceeds from issuance of convertible series A preferred stock |
|
|
200,000 |
|
|
|
- |
|
Proceeds from convertible note payable |
|
|
1,000,000 |
|
|
|
650,000 |
|
Payments on convertible note payable |
|
|
(294,118 |
) |
|
|
(250,000 |
) |
Repayment of note payable |
|
|
(1,121,981 |
) |
|
|
(329,620 |
) |
Proceeds from exercise of warrants |
|
|
4,000,000 |
|
|
|
- |
|
Repayment of convertible debentures |
|
|
(100,000 |
) |
|
|
- |
|
Net cash provided by financing activities |
|
|
10,588,578 |
|
|
|
5,625,009 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in Cash, cash equivalents and restricted cash |
|
|
344,729 |
|
|
|
(65,292 |
) |
Cash, cash equivalents and restricted cash, beginning of period |
|
|
378,961 |
|
|
|
444,253 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
723,690 |
|
|
$ |
378,961 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
$ |
271,245 |
|
Acquisition of assets through operating leases |
|
|
593,409 |
|
|
|
1,031,523 |
|
Issuance of class A common stock for conversion of convertible notes payable |
|
|
1,357,143 |
|
|
|
- |
|
Issuance of common stock in connection with business acquisition |
|
|
- |
|
|
|
400,000 |
|
Issuance of convertible series A preferred stock due to conversion of bridge note |
|
|
- |
|
|
|
4,440,688 |
|
Issuance of class A common stock due to conversion of convertible debentures |
|
|
- |
|
|
|
4,414,317 |
|
Investor Contact
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
General Inquires
Morgan Wood
Mwood@inspirevet.com
SOURCE: Inspire Veterinary Partners, Inc.
View the original press release on ACCESS Newswire
