IMAC Holdings' Losses Mount Amid Revenue Collapse, Impairment Charges

Ticker: BACK · Form: 10-Q · Filed: Dec 17, 2025 · CIK: 1729944

Imac Holdings, INC. 10-Q Filing Summary
FieldDetail
CompanyImac Holdings, INC. (BACK)
Form Type10-Q
Filed DateDec 17, 2025
Risk Levelhigh
Pages15
Reading Time18 min
Key Dollar Amounts$0.001, $0.5 million
Sentimentbearish

Sentiment: bearish

Topics: Going Concern, Net Loss, Revenue Decline, Asset Impairment, Liquidity Crisis, Increased Debt, Shareholder Deficit

TL;DR

**BACK is a burning dumpster fire, avoid at all costs as its cash is gone and its new business is a bust.**

AI Summary

IMAC Holdings, Inc. (BACK) reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $7,398,666, up from $3,995,271 in the prior year, primarily driven by a substantial operating loss and increased interest expense. Revenue plummeted to $22,723 for the nine-month period in 2025, a sharp decline from $72,050 in 2024, indicating severe operational challenges in its new precision medicine focus. The company recognized a $748,101 impairment loss on laboratory equipment acquired from Theralink Technologies, Inc., due to a revenue shortfall and minimal cash flows, effectively valuing the equipment at $0. Cash reserves dwindled from $504,189 at December 31, 2024, to $45,054 by September 30, 2025. Total current liabilities surged to $13,286,935 from $7,227,546, largely due to a new note payable of $3,828,599 and increased accounts payable. The company issued $4,442,000 in promissory notes for an aggregate purchase price of $3,203,000, with $0.5 million already unpaid by the November 14, 2025 maturity date. The accumulated deficit expanded to $72,382,818, and the total stockholders' deficit worsened to $(12,976,880).

Why It Matters

IMAC Holdings' dire financial state, marked by a massive net loss and near-zero revenue from its new precision medicine segment, signals extreme risk for investors. The $748,101 impairment of lab equipment acquired from Theralink Technologies, Inc. underscores a failed strategic pivot and inability to generate cash flow, raising serious questions about management's execution. Competitors in the precision medicine space, particularly those with established revenue streams and robust R&D, will likely see IMAC's struggles as an opportunity to consolidate market share. For employees and customers, the 'going concern' warning suggests significant operational instability and potential disruption, making future viability highly uncertain.

Risk Assessment

Risk Level: high — The company explicitly states "there is substantial doubt to continue as a going concern" due to historical and expected operating losses and cash outflows. Cash plummeted from $504,189 to $45,054, and revenue from continuing operations for the nine months ended September 30, 2025, was a mere $22,723, leading to a $7,398,666 net loss. A $748,101 impairment loss on recently acquired lab equipment further highlights operational failure.

Analyst Insight

Investors should immediately divest any holdings in IMAC Holdings (BACK). The 'going concern' warning, combined with collapsing revenue, significant losses, and a failed strategic pivot, indicates an extremely high probability of further value erosion or bankruptcy. Do not attempt to 'buy the dip' as there is no clear path to profitability or solvency.

Financial Highlights

debt To Equity
N/A
revenue
$22,723
operating Margin
N/A
total Assets
N/A
total Debt
N/A
net Income
-$7,398,666
eps
-$3.11
gross Margin
N/A
cash Position
$45,054
revenue Growth
-68.4%

Revenue Breakdown

SegmentRevenueGrowth
Precision Medicine$22,723-68.4%

Key Numbers

Key Players & Entities

FAQ

What is IMAC Holdings' current financial viability?

IMAC Holdings' financial viability is severely challenged, with management explicitly stating "substantial doubt to continue as a going concern." The company reported a net loss of $7,398,666 for the nine months ended September 30, 2025, and cash reserves of only $45,054, down from $504,189 at December 31, 2024.

How has IMAC Holdings' revenue changed in 2025?

IMAC Holdings' net revenue from continuing operations drastically declined to $22,723 for the nine months ended September 30, 2025, a significant drop from $72,050 in the same period of 2024. This represents a 68.46% decrease in revenue.

What caused the impairment loss on IMAC Holdings' assets?

IMAC Holdings recognized a $748,101 impairment loss on laboratory equipment acquired from Theralink Technologies, Inc. during the three months ended September 30, 2025. This impairment was triggered by a revenue shortfall, with net revenue of only $22,723 for the nine months ended September 30, 2025, resulting in minimal cash flows from the equipment's use.

What is IMAC Holdings' strategy to address its 'going concern' issues?

IMAC Holdings' management plans to raise additional capital through the issuance of financial instruments, including both debt and equity, to mitigate the conditions and events that raise substantial doubt about its ability to continue as a going concern.

How much debt did IMAC Holdings incur in 2025?

During the nine months ended September 30, 2025, IMAC Holdings issued promissory notes totaling an aggregate principal amount of $4,442,000, for which the company received an aggregate purchase price of $3,203,000 from lenders.

What is the status of IMAC Holdings' discontinued operations?

As of December 31, 2023, IMAC Holdings, Inc. sold or discontinued patient care at all its IMAC Regeneration Centers and The BackSpace retail stores. These operations are now presented as discontinued operations in the financial statements.

What is the total stockholders' deficit for IMAC Holdings?

As of September 30, 2025, IMAC Holdings reported a total stockholders' deficit of $(12,976,880). This is a significant worsening from a deficit of $(5,638,525) at December 31, 2024.

Were there any defaults on IMAC Holdings' notes payable?

Yes, notes totaling $0.5 million were not paid by their maturity date of November 14, 2025, indicating a default on a portion of IMAC Holdings' promissory notes.

How many common shares does IMAC Holdings have outstanding?

As of December 16, 2025, IMAC Holdings, Inc. had 3,784,966 shares of common stock, par value $0.001 per share, outstanding.

What are the primary services of IMAC Holdings' continuing operations?

The continuing operations of IMAC Holdings focus on precision medicine in cancer treatment based on activated protein analysis. This includes clinical testing of breast cancer patients to determine effective medications and treatments, and collaborations with biopharmaceutical companies for drug target identification, clinical trial design, and execution.

Risk Factors

Industry Context

The precision medicine sector is characterized by rapid technological advancements and significant R&D investment. Companies in this space often face long development cycles, regulatory hurdles, and intense competition from both established players and innovative startups. Success hinges on effective clinical validation, market adoption, and securing substantial funding.

Regulatory Implications

As a company operating in the healthcare and biotechnology space, IMAC Holdings is subject to stringent regulations from bodies like the FDA. Compliance with evolving healthcare laws, data privacy regulations (e.g., HIPAA), and clinical trial protocols is critical. Non-compliance can lead to significant fines, product recalls, and reputational damage.

What Investors Should Do

  1. Monitor cash burn rate and future financing activities.
  2. Assess the viability of the precision medicine strategy.
  3. Evaluate the risk of default on outstanding notes.
  4. Scrutinize any further asset impairments.

Key Dates

Glossary

Accumulated Deficit
The total cumulative net losses of a company since its inception that have not been offset by net income. (The company's accumulated deficit has grown to $72,382,818, indicating a long history of unprofitability.)
Stockholders' Deficit
The negative difference between a company's total liabilities and its total assets, meaning liabilities exceed assets. (IMAC Holdings has a total stockholders' deficit of $(12,976,880), signifying insolvency.)
Impairment Loss
A reduction in the carrying value of an asset when its fair value falls below its book value. (A $748,101 impairment loss on laboratory equipment highlights the failure of this asset to generate expected returns.)
Note Payable
A written promise to pay a specific amount of money on demand or at a specified future date. (The company incurred a new note payable of $3,828,599, contributing to its increased debt burden.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, IMAC Holdings has experienced a severe downturn. Revenue has plummeted by 68.4% to $22,723, while the net loss has nearly doubled to $7,398,666. This indicates a significant deterioration in operational performance and financial health. Furthermore, liquidity has drastically worsened, with cash falling from $504,189 to $45,054, and total current liabilities have nearly doubled, signaling increased financial risk and a worsening solvency position.

Filing Stats: 4,525 words · 18 min read · ~15 pages · Grade level 15.9 · Accepted 2025-12-17 16:58:51

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 4

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 4

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 18

Controls and Procedures

Item 4. Controls and Procedures 18

OTHER INFORMATION

PART II. OTHER INFORMATION 19

Legal Proceedings

Item 1. Legal Proceedings 19

Risk Factors

Item 1A. Risk Factors 19

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 19

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 19

Other Information

Item 5. Other Information 19

Exhibits

Item 6. Exhibits 20 2 Important Information Regarding Forward-Looking Statements Portions of this Quarterly Report on Form 10-Q (including information incorporated by reference) include "forward-looking statements" based on our current beliefs, expectations, and projections regarding our business strategies, market potential, future financial performance, industry, and other matters. This includes, in particular, "Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report on Form 10-Q, as well as other portions of this Quarterly Report on Form 10-Q. The words "believe," "expect," "anticipate," "project," "could," "would," and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date the statements were made. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause our actual results to differ materially from those projected, anticipated, or implied in the forward-looking in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission on May 2, 2024. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking 3 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL IMAC HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 December 31, 2024 (As Restated) ASSETS Current assets: Cash $ 45,054 $ 504,189 Accounts receivable, net - 28,030 Prepaid expenses and other current assets 265,001 152,122 Total current assets 310,055 684,341 Property and equipment, net - 904

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing