Empower Clinics Inc. (CSE:CBDT, OTCQB:EPWCF) has unveiled strong revenue growth and positive net income in the second quarter of 2022, boosted by the launch of its COVID-19 testing clinics for cruise ship passengers.
In a statement, Steven McAuley, Chairman and CEO of Empower Clinics said: “With strong revenue growth and positive net income, this is exactly the type of quarter that we need to deliver for our shareholders. Our COVID-19 testing solutions and centres received full certification and launched services early in Q2, making us the first fully certified solution in the Vancouver waterfront area."
“In partnership with CERES Terminals, we served thousands of cruise ship travellers as well as tour operators and tourists. We also saw continued healthy sales of MediSure Canada solutions that was buoyed in part by the launch of the first Health Canada-approved At-Home Vitamin D testing kit," he added.
READ: Empower Clinics says it continues to invest in future growth as it releases Q1 2022 results
MediSure Canada, the company's medical device unit launched its new MediSure Empower Blood Glucose Monitor (BGM) in the second quarter with pre-launch orders secured from pharmacies and distributors.
“We introduced MediSure Labs as a rebrand of our medical laboratory business in the US, reduced operating costs and launched a search for a new and experienced leadership team to leverage our state-of-the-art facility.
“The Medi-Collective is continuing its efforts to recruit doctors and paramedical professionals to launch new and complimentary integrated healthcare solutions," McAuley noted.
Q2 2022 highlights
The company saw total revenues from continuing operations rise by 80% to $1,553,980 in Q2 compared to $861,826 in the corresponding quarter in 2021, driven primarily by the launch of Empower Clinic's COVID-19 testing clinics for cruise ship passengers.
Diagnostics & Technology revenue, which included the sale of MediSure products and COVID-19 testing conducted by Kai Medical Laboratory and Empower Clinics, came in at $1,320,560, with 64% attributable to COVID-19 testing, compared to $600,011 a year ago.
The gross margin from continuing operations was 47% for Q2 2022, compared to 4% the year before. Net income from continuing operations of $2,165,855 or $0.01 per share compared to a net loss from continuing operations of $412,209 or $(0.00) per share for Q2 2021, attributed mostly to a non-cash gain on the fair value adjustment related to the company's conversion feature and warrant liability outstanding that were impacted by the significant depreciation of the company's share price.
Loss from operations for Q2 2022 was $1,236,941, compared to $1,374,941 in Q2 2021. This was attributed to an increase in total revenue, partially offset by additional expenses related to insurance, travel and recruitment expenses. Adjusted EBITDA loss in Q2 2022 was narrower at $1,009,382 from $1,033,225 in Q2 2021.
Cash as of June 30, 2022, stood at $793,935, compared to $866,170 as of December 31, 2021.
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.