Ending a challenging financial year with optimistic prospects for 2023
NAPLES, Fla., April 3, 2023 /PRNewswire/ — HealthLynked Corp. (OTCQB: HLYK), a global healthcare network dedicated to care management of its members and a provider of healthcare technologies connecting doctors, patients, and medical data, announced its financial results for the fourth quarter and full year ended December 31, 2022.
Full Year 2022 Financial Results
For the year ended December 31, 2022, HealthLynked reported revenue of $5.86 million, a 10% decrease compared to $6.50 million in 2021. The decline is primarily attributed to decreases in patient service revenue at our Naples Women’s Center and Bridging the Gap facilities, as well as lower product revenue from MedOfficeDirect. However, this was partially offset by revenue increases at our Naples Center for Functional Medicine facility and revenue from the newly-acquired Aesthetics Enhancements Unlimited practice.
A full impairment charge of $2.75 million was recognized to write off the carrying value of intangible assets related to our MedOfficeDirect business, $1.98 million of which would have been amortized over the next 34 months. The impairment charge resulted primarily from declining revenues and ongoing losses since the acquisition of MedOfficeDirect in October 2020. Despite the impairment charge, recent key initiatives, including pricing overhaul, partnership with Synchrony Bank’s CareCredit, flexible payment options, and targeted marketing initiatives such as its reward points program, have positioned MedOfficeDirect for potential significant revenue growth and profitability from product sales in 2023 and beyond.
Our ACO/MSO business was moved to discontinued operations in 2022 following the sale of the business in January 2023. The sale included an initial payment of $750,000. HealthLynked is still expecting additional payments of up to $1,750,000 by July 2023, potential 2022 performance year net shared savings paid in October 2023, and a final payment of up to $500,000 in October 2024. Moreover, HealthLynked could earn potential equity consideration in the event that the buyer completes an IPO by August 2024 of up to $7 million in IPO shares.
Net losses decreased by 15% from ($10.41) million in 2021 to ($8.82) million in 2022, largely due to debt extinguishment charges of $4.96 million in 2021 and higher non-cash income from changes in fair value of contingent acquisition consideration in 2022, offset by higher operating losses driven by the impairment charge in 2022.
Fourth Quarter 2022 Financial Results
For the fourth quarter of 2022, HealthLynked reported revenue of $1.41 million, an 11% decrease compared to $1.59 million in the fourth quarter of 2021, primarily due to decreases in patient service revenue at our Naples Women’s Center and Bridging the Gap facilities, and lower product revenue from MedOfficeDirect. This was partially offset by revenue increases at our Naples Center for Functional Medicine facility and revenue from the newly-acquired Aesthetics Enhancements Unlimited practice.
Net losses increased from ($1.72) million in the fourth quarter of 2021 to ($4.27) million in the fourth quarter of 2022, primarily due to the MedOfficeDirect impairment charge.
Dr. Michael Dent, HealthLynked’s Chairman and Chief Executive Officer, stated, “Despite the financial challenges of the past year, we remain committed to providing top-quality care management services and healthcare technologies to our members. With our innovative technology solutions and focus on quality care, we are well-positioned to achieve our goals and drive long-term value for our shareholders.”
George O’Leary, HealthLynked’s Chief Financial Officer, added, “The sale of ACO Health Partners and the partnership with Palm Beach ACO is one of our most significant initiatives of 2023 to date, with a considerable reduction in our cash burn and milestones during 2023 and 2024 that should provide not only additional significant cash on the balance sheet but also potential substantial value in the event of the buyer’s IPO transaction. All of these factors would strengthen our balance sheet and offset the non-cash MOD impairment recorded this quarter.”
HealthLynked Corp. provides a solution for both patient members and providers to improve healthcare through the efficient exchange of medical information. The HealthLynked Network is a cloud-based platform that allows members to connect with their healthcare providers and take more control of their healthcare. Members enter their medical information, including medications, allergies, past surgeries, and personal health records, in one convenient online and secure location, free of charge. Participating healthcare providers can connect with their current and future patients through the system. Benefits to in-network providers include the ability to utilize the HealthLynked patent-pending patient access hub “PAH” for patient analytics. Other benefits for preferred providers include HLYK marketing tools to connect with their active and inactive patients to improve patient retention, access more accurate and current patient information, provide more efficient online scheduling, and to fill last-minute cancelations using the Company’s “real-time appointment scheduling” all within its mobile application. Preferred providers pay a monthly fee to access these HealthLynked services. For additional information about HealthLynked Corp., please visit www.healthlynked.com and connect with HealthLynked on Twitter, Facebook, Instagram, and LinkedIn.
Forward-Looking Statements & Risk Factors
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, including as a result of any acquisitions, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by our management, and us are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Certain risks and uncertainties applicable to our operations and us are described in the “Risk Factors” section of our most recent Annual Report on Form 10-K and in other filings we have made with the U.S. Securities and Exchange Commission. These reports are publicly available at www.sec.gov.
Chief Financial Officer
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