HealthLynked (OTCQB:HLYK) Corp reported results for the full year 2022 that showed the company decreased net losses by 15% and had ended a challenging financial year with optimistic prospects for 2023.
For the full year ended December 31, 2022, the Naples, Florida-based healthcare network company decreased its net losses to $8.82 million in 2022, from $10.41 million in 2021.
The company said this was due largely 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.
For the full year year 2022, HealthLynked (OTCQB:HLYK) reported revenue of $5.86 million, a 10% decrease, compared to $6.50 million in 2021. The company chalked up the decline to a decreases in patient service revenue at its Naples Women's Center and Bridging the Gap facilities, as well as lower product revenue from MedOfficeDirect. However, this was partially offset by revenue rises at its Naples Center for Functional Medicine facility and revenue from its newly-acquired Aesthetics Enhancements Unlimited practice.
HealthLynked said “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.
Gains from ACO Health Partners sale
In 2019, HealthLynked entered the rapidly-growing Accountable Care Organization (ACO) space through the acquisition of Cura Health Management LLC, which owns ACO Health Partners LLC.
HealthLynked’s 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 $1.75 million 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 initial public offering (IPO) by August 2024 of up to $7 million in IPO shares.
In a statement, HealthLynked CFO George O'Leary said: "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."
For the 4Q ended December 31, 2022, HealthLynked reported revenue of $1.41 million driven by revenue increases at the firm’s Naples Center for Functional Medicine and revenue from its newly-acquired Aesthetics Enhancements Unlimited practice.
Meanwhile, HealthLynked founder and CEO Michael Dent noted that despite the financial challenges of the past year, the company remains committed to providing “top-quality” care management services and healthcare technologies to its 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," Dr Dent added.
HealthLynked connects patients, doctors and data through its global healthcare network using technology to reduce costs and improve patient outcomes.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive