COMMUNIQUÉ DE PRESSE

par INSPIRE VETERINARY PARTNERS, INC.

Inspire Veterinary Partners Reports Third Quarter 2024 Financial Results

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

)

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