Steven McAuley, chairman and CEO of Empower Clinics said: “We continue to be impressed with the operating precision of Medisure Canada as it continues to receive government approvals to launch innovative medical devices
Empower Clinics Inc, which unveiled its first-quarter 2022 results, said it has continued to invest in the company’s future growth during the period.
Steven McAuley, chairman and CEO of Empower Clinics said in a statement: “We continued to invest in future growth in Q1 2022.
“We continue to be impressed with the operating precision of Medisure Canada as it continues to receive government approvals to launch innovative medical devices.
“In addition, we put forth an incredible team effort in Vancouver to secure accreditation for the cruise ship COVID-19 testing program commencing April 2022. This effort followed an agreement with CERES Terminal to offer services to the cruise ship industry.
“We also completed the divesture of Sun Valley Health which allows Empower to only and fully focus on our integrated healthcare vision.
“We also endured pandemic-related supply chain issues at The Medi-Collective and an operating environment at the Dallas laboratory that we were not satisfied with,” McAuley added.
Q1 2022 highlights
- Total revenues from continuing operations were $1,106,950 for Q1 2022 compared to Q1 2021 of $1,958,802, down 43% while gross margin from continuing operations stood at 21% for Q1 2022, compared to 62% the corresponding quarter, down 41%.
- Revenues from the Health & Wellness segment for the first quarter were $472,221 compared to $244,131 previously, with the increase attributable to the launch of The Medi-Collective and revenues from Canadian clinics.
- Diagnostics & Technology revenue included the sale of MediSure products and COVID-19 testing conducted by Kai Medical Laboratory. Diagnostics & Technology revenue for Q1 2022 was $634,729 with 24% attributable to COVID-19 testing, compared to the corresponding quarter of $1,714,671, mainly due to the relaxing of COVID-19 health restrictions.
- Direct expenses excluding depreciation and amortization for Q1 2022 were $872,079 compared to Q1 2021 direct clinic expenses of $742,367. This increase over the prior year was attributable to the ramping up of operations in The Medi-Collective, investment in the launch of Vancouver testing facilities and was primarily driven by salaries and wages.
- Loss from operations for Q1 2022 of $1,616,188 compared to Q1 2021 of $1,104,446. This increase in loss from the prior year was primarily attributable to the increase in direct expenses and operating expenses, as well as a reduced gross margin resulting from lower margin operations in The Medi-Collective.
- Net loss from continuing operations came in at $2,298,925 or $0.01 per share compared to $24,928,263 or $0.08 per share for Q1 2021, primarily driven by a non-cash loss on the fair value adjustment related to the company’s warrants outstanding that were impacted by the significant appreciation of its share price.
Empower said cash as at March 31, 2022 stood at $2,518,743, compared to cash of $866,170 as at December 31, 2021 as a result of completed financings since year-end.
Cash used in operating activities of continuing operations was $1,969,588 for Q1 2022, compared to $1,215,767 the year before.
The company generated net cash from investing activities of $113,342 from the sale of Sun Valley, net of purchases of property and equipment and raised net cash from financing activities of $3,573,057 via proceeds from various issuances of units, convertible debentures, the exercise of warrants and stock options, which was partially offset by lease payments and repayments of loans and notes payable.
Subsequent to the period ended March 31, 2022, Empower closed the Hamilton and Mississauga Medi-Collective clinics after concluding that they did not meet its expansion goals following an operational review.
The Medi-Collective has six remaining clinic locations.
Empower is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and world-class medical diagnostics laboratories.
The company is aggressively growing its clinical and digital presence across North America.
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