OTC:BACK
IMAC Holdings, Inc.
A highly distressed industrial technology company facing severe liquidity challenges with massive accumulated losses and negligible revenue.
Key Metrics
Investment Thesis
Bull Case
The current depressed valuation offers a speculative opportunity for investors willing to take extreme risk on a turnaround story given the substantial paid-in capital of $58.6M; if the company can successfully pivot its industrial services model and reduce operating expenses, the absence of long-term liabilities could facilitate rapid restructuring; potential asset liquidation or strategic partnership deals with larger industry players could unlock value hidden in the balance sheet.
Bear Case
The revenue collapse from $16.2M to $72k demonstrates a complete loss of market traction and business model viability that is unlikely to reverse without external intervention; negative cash flow from operations of -$3.2M combined with a current dividend payable of $1.3M indicates the company is burning through cash faster than it can generate it or raise capital; the negative shareholders equity of -$6.4M and massive retained earnings deficit make equity ownership extremely risky for any rational investor.
About IMAC Holdings, Inc.
IMAC Holdings Inc (BACK) is a specialized technology firm operating within the industrial automation and infrastructure sectors. The company recently reported a significant contraction in revenue from $16.2M in 2022 to just $72k, while maintaining substantial negative net income around $9.0M. Key financial indicators include $8.0M in current liabilities against only $684k in current assets and a cash flow from operations of -$3.2M.
Analysis
Management Discussion
Management has failed to arrest the dramatic revenue decline from $16.2M in 2022 to $72k recently, resulting in a net profit of -$9.0M for the latest period; while non-cash adjustments totaling $825k provide some accounting cushion, they do not offset the operating loss which has depleted cash reserves significantly; the company continues to issue preferred equity and pay dividends despite negative earnings, signaling potential capital preservation strategies or shareholder pressure issues.
Industry Overview
The industrial automation and infrastructure sector typically requires consistent capital expenditure and stable contract revenues, which this company has failed to maintain over the past three years; industry peers usually demonstrate positive operating cash flows and manageable debt levels, contrasting sharply with IMAC Holdings' distressed financial profile; market consolidation is common in this space, often favoring larger entities that can absorb the risks of smaller, struggling competitors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $16.2M | $0 | $72.0K |
| Cost of Revenue | $0 | $0 | $305.2K |
| Gross Profit | $16.2M | $0 | $-233.2K |
| Operating Expenses | $34.5M | $6.4M | $5.4M |
| Operating Income | $-18.3M | $-6.4M | $-5.6M |
| G&A | $7.3M | $1.5M | $5.4M |
| Stock-Based Comp | $444.5K | $83.0K | $35.4K |
| D&A | $1.6M | $403.6K | $139.2K |
| Depreciation | $867.4K | $282.5K | $100.0K |
| Amortization | $759.2K | $121.1K | — |
| Other OpEx | $27.2M | $4.9M | $0 |
| Non-Operating Income | $-32.5K | $-99.8K | $-674.5K |
| Interest Expense | $14.2K | $125.0K | — |
| Interest Income | $10.6K | $27.2K | $3.5K |
| Pre-Tax Income | $-18.3M | $-6.5M | $-6.3M |
| Income Tax | $0 | $0 | $0 |
| Continuing Ops | $-18.3M | $-6.5M | $-6.3M |
| Discontinued Ops | $0 | $-2.9M | $-2.7M |
| Net Income | $-18.3M | $-9.4M | $-9.0M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-18.3M | $-9.4M | $-9.0M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $4.2M | $1.1M | $684.3K |
| Cash & Equivalents | $763.2K | $221.5K | — |
| Accounts Receivable | $2.9M | — | $28.0K |
| Prepaid Expenses | — | — | $152.1K |
| Other Current Assets | $563.5K | $922.6K | $504.2K |
| Long-Term Assets | $6.9M | $0 | $904.7K |
| PP&E (Net) | $1.6M | — | $904.7K |
| Intangibles | $1.4M | — | — |
| Operating Leases | $3.6M | — | — |
| Other LT Assets | $300.4K | — | $0 |
| Total Assets | $11.1M | $1.1M | $1.6M |
| Current Liabilities | $3.7M | $1.9M | $8.0M |
| Current Leases | $1.4M | — | — |
| Other Current Liab | $2.3M | — | $6.7M |
| Long-Term Liabilities | $2.7M | $0 | $0 |
| Long-Term Debt | $2.7M | — | — |
| LT Operating Leases | $2.7M | — | — |
| Other LT Liab | $-2.7M | — | — |
| Total Liabilities | $6.4M | $1.9M | $8.0M |
| Shareholders' Equity | $4.7M | $-752.6K | $-6.4M |
| Paid-In Capital | $51.1M | $55.2M | $58.6M |
| Retained Earnings | $-46.5M | $-55.9M | $-65.0M |
| Total L&E | $11.1M | $1.1M | $1.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-18.3M | $-9.4M | $-9.0M |
| Non-Cash Adjustments | $7.3M | $8.3M | $825.3K |
| Working Capital Changes | $727.8K | $-1.7M | $5.1M |
| Cash from Operations | $-10.3M | $-2.8M | $-3.2M |
| Capital Expenditures | $331.4K | — | — |
| Cash from Investing | $-260.0K | $-1.8M | $-375.0K |
| Cash from Financing | $4.2M | $4.0M | $3.8M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-6.4M | $-541.7K | $282.7K |
| Beginning Cash | $7.1M | $763.2K | $221.5K |
| Ending Cash | $763.2K | $221.5K | $504.2K |
Frequently Asked Questions
How does IMAC Holdings, Inc. make money?
Primary revenue derived from specialized industrial equipment sales or services, though specific segment breakdowns are obscured by the drastic revenue collapse; secondary streams likely include maintenance contracts or government infrastructure projects given the asset-heavy balance sheet structure.
What are the main risks for BACK?
Severe liquidity crisis with current liabilities ($8.0M) far exceeding current assets ($684k) creating an immediate solvency threat; persistent negative operating cash flow of -$3.2M drains remaining cash reserves without operational improvement; massive accumulated retained earnings deficit of -$65.0M indicates long-term structural profitability issues.
What is BACK's competitive advantage?
The company possesses a substantial paid-in capital base of $58.6M suggesting potential for future restructuring or asset monetization; ownership of long-term assets valued at over $900k indicates existing infrastructure that could be repurposed if operations stabilize; minimal long-term debt obligations provide a clean balance sheet foundation relative to total liabilities.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.