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Inspire Veterinary Partners Reports First Quarter 2025 Financial Results

1. IVP's Q1 2025 revenue fell 25% year-over-year, totaling $3.6 million. 2. Entered intent to acquire an animal hospital, potentially adding $1.8 million revenue. 3. Significant operational expense reductions of 27% helped decrease net loss by 29%. 4. Surged doctor hires set up IVP for expanded operations and new clinics. 5. Strategic steps taken to enhance market presence and real estate portfolio.

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Why Bullish?

While revenues decreased significantly, effective cost management and strategic acquisitions signal potential recovery. Historical trends show similar companies rebound after operational shifts.

How important is it?

The article outlines IVP's strategic initiatives and financial management; active expansion signals growth potential, yet immediate revenue losses are concerning.

Why Long Term?

The focus on acquiring new facilities and expanding operations will likely take time to positively impact revenue. Past performance shows sustained efforts yield growth over several quarters.

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CVETZGENSNDL
Friday, 16 May 2025 08:00 AM VIRGINIA BEACH, VA / ACCESS Newswire / May 16, 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 first quarter ended March 31, 2025.First Quarter 2025 Financial Highlights Compared to Prior Year PeriodTotal revenue of approximately $3.6 million, a decrease of 25%Services revenue of approximately $2.7 million, a decrease of 23%Product revenue of $0.9 million, a decrease of 30%Total operating expenses decreased by 27%Net loss decreased by $1.0 million or 29%First Quarter 2025 Operational HighlightsEntered 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 up to approximately $1.8 million in (unaudited) revenueOversaw a 400% increase in doctor hires over all of 2024, setting the company up to expand operating days in several clinicsCompleted a registered direct offering for aggregate gross proceeds of approximately $2.0 millionAppointed 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 acquisitionsEngaged 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 facilitiesRegistered 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 platformExecutive Commentary"During the first quarter of 2025 Inspire continued to be margin minded and reduce our losses despite the challenges with year over year revenues across our industry," said Kimball Carr, Chairman, President & Chief Executive Officer of Inspire. "We also turned the corner on the crucial hiring of clinicians with doctor hires already outpacing all of last year. We believe our work in 2024, and the first quarter of this year sets IVP up for growth with our existing portfolio and expansion to new markets through a return to acquisitions."First Quarter 2025 Financial OverviewAll comparisons are made versus the same period in 2023 unless otherwise stated.For the first quarter of 2025, total revenue was approximately $3.6 million, a decrease of 25%.Service revenue for first quarter of 2025 decreased $0.8 million or 23%, to $2.7 million. The decrease in service revenue is mainly attributed to the sale of the company's former Kauai location and its exclusion from 2025 results. On a comparable basis, service revenue declined year-over-year, primarily due to reduced DVM capacity and operational disruptions in January.Product revenue for first quarter 2025 decreased $0.4 million, or 30%, to $0.9 million. The overall decrease was a result of customers purchasing less products per visit and the exclusion of the Kauai location from 2025 results.Total operating expenses decreased $2.1 million or 27%. The decrease was primarily due to the sale of the Kauai location and its exclusion from 2025 results and the decreases in IR agency contracts and marketing agreements the Company entered during the first quarter of 2024 following the February 2024 public acquisition.Net loss for the first quarter of 2025 decreased $1.0 million, or 29%, to $2.4 million. The decline in net loss is primarily attributable to the exclusion of the operating expenses associated with a clinic sale, decreases in operating expenses associated with the cost associated with the February 2024 public raise during the period, and the IR agency consulting agreementBalance SheetAs of March 31, 2025, the Company had cash and cash equivalents of approximately $1.7 million.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.Facebookhttps://www.facebook.com/InspireVeterinaryPartners/LinkedInhttps://www.linkedin.com/company/inspire-veterinary-partners/Forward-Looking StatementsThis 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.Investor ContactCoreIRMatt Blazei516-386-0430[email protected]General InquiresMorgan Wood[email protected]Inspire Veterinary Partners, Inc. and SubsidiariesConsolidated Balance SheetsMarch 31,December 31,20252024AssetsCurrent assets:Cash and cash equivalents$1,738,033$523,690Accounts receivable, net4,37640,675Inventory475,152516,650Prepaid expenses and other current assets683,687942,456Total current assets2,901,2482,023,471Restricted cash - non-current120,000200,000Property and equipment, net6,280,2466,382,788Right-of-use assets1,802,0061,879,729Intangibles assets1,481,3521,633,927Goodwill8,022,0828,022,082Other assets53,99753,997Total assets$20,660,931$20,195,994Liabilities and Stockholder's EquityCurrent liabilities:Accounts payable$1,769,991$1,979,503Accrued expenses643,311285,770Operating lease liabilities163,193183,981Loans payable, net of discount1,737,8462,340,020Notes payable, net of discount3,157,6413,410,465Total current liabilities7,471,9828,199,739Operating lease liabilities, non-current1,901,0831,943,487Notes payable - noncurrent8,283,9108,490,763Total liabilities17,656,97518,633,989Commitments and Contingencies (Note 15)Stockholder's EquityCommon stock - Class A, $0.0001 par value, 4 million shares authorized, 2,119,551 and 1,176,059 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.211117Common stock - Class B, $0.0001 par value, 20 million shares authorized, 3,020,750 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.302302Additional paid-in capital41,768,76037,911,867Accumulated deficit(38,765,317)(36,350,281)Total stockholder's equity3,003,9561,562,005Total liabilities and stockholder's equity$20,660,931$20,195,994Inspire Veterinary Partners, Inc. and SubsidiariesConsolidated Statements of OperationFor the Three Months EndedMarch 31,20252024Service revenue$2,741,029$3,545,599Product revenue898,1801,285,968Total revenue3,639,2094,831,567Operating expensesCost of service revenue (exclusive of depreciation and amortization, shown separately below)2,139,2782,709,147Cost of product revenue (exclusive of depreciation and amortization, shown separately below)785,4091,016,107General and administrative expenses2,446,4382,873,343Depreciation and amortization275,392367,197Debt extinguishment loss-728,278Total operating expenses5,646,5177,694,072Loss from operations(2,007,308)(2,862,505)Other income (expenses):Interest income82Interest expense(407,736)(559,289)Total other expenses(407,728)(559,287)Loss before income taxes(2,415,036)(3,421,792)Benefit for income taxes--Net loss(2,415,036)(3,421,792)Net loss per Class A and B common shares:Basic and diluted$(0.43)$(0.88)Weighted average shares outstanding per Class A and B common shares:Basic and diluted5,555,5883,894,331Inspire Veterinary Partners, Inc. and SubsidiariesConsolidated Statements of Cash FlowsFor the Three Months Ended March 31,20252024Cash flows from operating activities:Net loss$(2,415,036)$(3,421,792)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization275,392347,382Amortization of debt issuance costs4,455-Amortization of debt discount261,766379,313Amortization of operating right of use assets77,72353,831Amortization of issuance costs-15,825Issuance of class A common stock for services-286,696Loss on debt modification-728,278Issuance of class A common stock in connection with general release agreement-20,000Issuance of Class A common stock and pre-funded warrants in connection with commitment shares-600,000Changes in operating assets and liabilities, net of effect of acquisitions:Accounts receivable36,299(312,915)Due from former owners-32,519Inventory41,49825,852Prepaid expenses and other current assets258,769(1,642,552)Accounts payable(209,512)315,165Accrued expenses357,541(403,107)Cumulative Series A preferred stock dividends payable-(92,322)Other assets, net-(61,094)Operating lease liabilities(63,192)(40,108)Net cash used in operating activities(1,374,297)(3,169,029)Cash flows from investing activities:Purchase of property and equipment(20,275)(156,945)Net cash used in investing activities(20,275)(156,945)Cash flows from financing activities:Proceeds from issuance of class A common stock and warrants, net of issuance costs2,145,521-Proceeds from issuance of class A common stock and pre-funded warrants, net of issuance costs1,711,4663,375,458Net proceeds from loans payable-549,185Payments on loans payable(863,940)(1,032,540)Proceeds from issuance of convertible series A preferred stock-200,000Proceeds from convertible note payable-500,000Repayment of note payable(464,132)(276,013)Repayment of convertible debentures-(100,000)Net cash provided by financing activities2,528,9153,216,090Net increase (decrease) in Cash, cash equivalents and restricted cash1,134,343(109,884)Cash, cash equivalents and restricted cash, beginning of period723,690378,961Cash, cash equivalents and restricted cash, end of period$1,858,033$269,077Supplemental Disclosure of Cash Flow InformationInterest payments during the year$1,552,313$188,952Income tax refund$151,796$-Noncash investing and financing activitySeries A Preferred Stock Dividend$-$271,245Acquisition of assets through operating leases$-$1,031,523Issuance of common stock in connection with business acquisition$-$400,000Issuance of convertible series A preferred stock due to conversion of bridge note$-$4,440,688Issuance of class A common stock due to conversion of convertible debentures$-$4,414,317SOURCE: INSPIRE VETERINARY PARTNERS, INC.

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