Health

Empower Clinics Reports Q3 2022 Results

Revenues grew by 288% in the third quarter of 2022, year-over-year

VANCOUVER, BC / ACCESSWIRE / November 28, 2022 / EMPOWER CLINICS INC (CSE:EPW)(Frankfurt:8EC)(OTCQB:EPWCF) (“Empower” or the “Company”) An integrated healthcare company that serves patients via medical centers, telemedicine platforms and a high-complex medical diagnostics laboratory, announced today that it had filed its unaudited condensed interimconsolidated financial statements and Management’s Discussion and analysis for the three and nine month ended September 30, 2022. Both are available at www.SEDAR.com. Except where otherwise noted, all financial information in this press release will be reported in United States Dollars.

We are happy to have achieved significant revenue growth with revenues nearly tripling from a year ago. Steven McAuley is Empower Clinics’ Chairman and CEO. “This is the second consecutive quarter of strong revenue growth compared to last. We realized strong returns from our investment to open fully certified COVID-19 testing services and centers in Vancouver’s waterfront area. MediSure Canada continues experiencing strong sales growth for its entire range of medical devices, at-home testing solutions and products. MediSure Labs is now headed by a veteran leader who has proven success in maximizing its revenue potential. Medi-Collective is attracting doctors and adding specialty services such as dermatology and cardiology. We recognize macro-economic challenges and will operate as efficiently and looking forward to 2023. We will concentrate our growth efforts on U.S. healthcare opportunity in large markets and in sectors we already invest in.

Highlights Q3 2022

  • The total revenues from continuing operations were $1,573,809 in Q3 2022, compared to $405,707 in Q3 2021. This represents a 288% increase over the previous year. The launch of Empower Clinic’s COVID-19 testing clinics on cruise ship passengers and the increased sales at MediSure are both major factors in this increase in revenue.
  • The gross margin from continuing activities was 59% in Q3 2022, 95% in Q3 20201, a 37% decrease.
  • Net loss from continuing activities was $457,066, or $0.00 per shares, as compared with a net loss of $1711,659, or $0.01 each share, for Q3 2021. The current period net loss was primarily due to an increase in operating expenses for Empower Clinic’s COVID-19 test site and continued operations in MediCollective clinics.
  • Cash at September 30, 2022, $469,712, as compared to cash at $866,170 December 31, 2021.
  • The amount of cash used in continuing operations and operating activities was $94,075 in Q3 2022, as opposed to $1,247,000.009 in Q3 2021.

Financial Summary

$, except where otherwise noted

It was three months ago
September 30,

Nine months have elapsed
September 30,

2022

2021

2022

2021

Total revenues

1,573,809

405,707

4,234,739

3,226,335

Direct clinic costs

(642,187)

(18,377)

(2,333,834)

(1,592,338)

Operations losses

(906,315)

(601,979)

(3,759,444)

(3,080,366)

Net loss in continuing operations

(457,066)

(1,711,659)

(590,136)

(27,052,131)

Adjusted EBITDA loss

(775,927)

(28,732)

(3,024,784)

(1,609,747)

Net loss per share for continuing operations, basic, and diluted

(0.00)

(0.01)

(0.00)

(0.08)

Financial Performance

As part of total revenues, revenues from the Health & Wellness segment for Q3 2022 were $284,001 compared to Q3 2021 revenues of $244,752. This is due to MediCollective’s higher revenue from its clinics.

Diagnostics & Technology revenue includes the sale of MediSure products and COVID-19 testing conducted by Kai Medical Laboratory and Empower Clinics. Diagnostics & Technology revenue for Q3 2022 were $1,289,808 with 58% attributable to COVID-19 testing, compared to Q3 2021 revenues of $160,955. This is due to the COVID-19 cruise passenger testing solution in Vancouver, Canada.

Direct expenses for Q3 2022, excluding amortization and depreciation, were $642 187 as compared to Q3 2020 direct clinic expenses which were $18,377. Direct expenses rose due to increased personnel costs resulting from the launch of COVID-19 testing at Vancouver, Canada.

Q3 2022’s loss from operations was $906,315 as compared to Q3 2020 of $601,979. This is due to higher expenses associated with insurance, travel, and recruitment within clinic operating costs.

Q3 2022 net loss from continuing operations was $457066, which is compared to Q3 2021 net loss of $1711,659. The Company incurred impairment charges totaling $4,342,373 for Q3 2021. No such impairment was recorded in Q3 2022. This was offset by a gain of change in fair worth of the warrant liability of 3,131,006 Q3 2021, compared to a higher gain of $354,582 Q3 2022 and an addition of gain on change of fair value associated with convertible debtors issued by the Company.

Adjusted EBITDA, a non-GAAP financial indicator, is net loss from continuing operations before interest, depreciation, amortization, share-based compensation and changes in fair value of derivative liabilities. The Adjusted EBITDA Loss in Q3 2022 was $775.927, compared with $28,732 during Q3 2020. The adjusted EBITDA is a measure that management uses to compare the Company’s cash operating expenses and its revenues in order to determine if there are any trends toward better profitability.

The Company spent $94,075 in cash during Q3 2022 on continuing operations and operating activities. The Company spent $3,103 cash on furniture and equipment purchases and $236,098 cash to finance lease payments and the repayment of loans and notes payable.

You can review the operation in detail by reviewing the condensed interimconsolidated financial statement, the related notes and the accompanying Management Discussion and Analysis.

About Empower

Empower, a healthcare company, provides holistic care to patients. The clinics offer digital and telemedicine, as well as world-class diagnostics and medical services. Empower has an experienced leadership team that is accelerating its digital and clinical presence in North America. Our Health & Wellness and Diagnostics & Technology business units are positioned to positively impact the integrated health of our patients, while simultaneously providing long term value for our shareholders.

IN HOUSE OF THE BOARD DIRECTORS
Steven McAuley
Chief Executive Officer

CONTACTS:

Investors

Tamara Mason

Steven McAuley

Business Development & Communications

CEO

1-855-855-9058

1-855-855-9058

[email protected]

[email protected]

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

This news release includes certain “forward-looking statement” or “forwardlooking information” (collectively “forward-looking messages”), within the meanings of applicable Canadian securities law. Forward-looking statements, which are not statements of historical fact, are based on expectations and projections as of the date of the news release. They include statements about the Company’s ability to positively affect the integrated health of its patient while also providing long term value and return for shareholders. Forward-looking statements may be identified by words like “continues”,” “expects”,”projects”,”believes”,”anticipates”,”estimates”,”may”,”will”,”potential”,”proposed” and similar words. These statements are projections based on assumptions made by management at this point. Actual results, performance and developments could differ materially from the forward-looking statements. It is impossible to predict the outcome of any of the events or the benefits that the Company may derive from them. The forward-looking statements contained in this release are subject to caution and should not be relied upon. The Company expressly disclaims any obligation and assumes no responsibility to revise or update any forward-looking statements contained in this release, regardless of whether they are based on new information, future events, or other factors, except as required by applicable laws.

SOURCE: Empower Clinics Inc.

Show More

Merry

Merry C. Vega is a highly respected and accomplished news author. She began her career as a journalist, covering local news for a small-town newspaper. She quickly gained a reputation for her thorough reporting and ability to uncover the truth.

Related Articles

Back to top button