Empower Clinics Inc. (CSE:EPW, OTCQB:EPWCF) has said it held $193,144 in cash at end-2022 as it announced its interim results for the fourth quarter to 31 December 2022.
The company has previously said it is changing its fiscal year end from December 31 to March 31.
"I am proud of our team and their efforts to maintain growth initiatives, all while managing costs going into 2023," said Steven McAuley, chairman and CEO in the results statement.
"Going forward, we continue to develop our US healthcare initiatives focusing on offering clinical trial services, with the stated objective of becoming an established Site Management Organization (SMO) for the pharmaceutical, biotechnology and medical device industries."
WATCH: Empower Clinics agrees to partnership to launch a U.S. clinical trial management service
Empower reported total revenues from continuing operations of $426,786 for the fourth quarter, compared with $1,142,581 in the same period in 2021. The 63% year-over-year decline was mainly due to the decrease in COVID-19 testing services.
Revenues from the Health & Wellness segment fell to $151,659 in Q4 2022 from $256,254 in the year-earlier period following lower revenues from Medi-Collective's clinics.
Diagnostics & Technology revenues, which include the sale of MediSure products and laboratory testing services conducted by MediSure Laboratory and Empower Clinics, declined to $275,127 in Q4 2022 from $886,327 in Q4 2021. The decrease in revenue was due to reduced Covid-19 testing in the US as well as other laboratory services in the current year period, Empower noted. Of the total revenue in Q4 2022, 98% was attributable to the sale of medical equipment in MediSure.
Net losses from continuing operations were $$2,370,651, or $0.01 per share, compared to a loss of $4,684,114, or $0.01 per share, in the year-earlier period, when the company recognized aggregate impairment charges of $5,222,249.
The gross margin from continuing operations was 16% compared to a negative gross margin of 25%, with the improvement resulting from savings in personnel costs.
Direct expenses excluding depreciation and amortization for Q4 2022 were $359,668 compared to Q4 2021 direct clinic expenses of $1,428,074. The reduction in direct expenses was due to the decrease in operating activities, primarily personnel costs, associated with providing Covid-19 testing services.
Loss from operations for Q4 2022 was $1,194,869 compared to Q4 2021 of $2,361,586, with the decrease attributable to reduced advertising and promotion activities and legal and professional fees.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization ) loss in Q4 2022 was $863,284 compared to $2,250,620 in Q4 2021. Adjusted EBITDA is a metric used by management to monitor the company's revenues compared to its cash operating costs in an effort to trend toward improved profitability, Empower explained.
Empower is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and world-class medical diagnostics laboratories. Supported by an experienced leadership team, Empower is aggressively growing its clinical and digital presence across North America.
The companyâs 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.
Contact the author at jon.hopkins@proactiveinvestors.com