Revenue Performance: IMAC's revenue for Q3 2024 stood at $56,300, marking a 257.46% rise from Q2 2024 but a staggering 96.40% decline year-over-year. It's critical to note that this recovery from the previous quarter can be misleading without sustained customer engagement.
Profitability: The gross profit margin fell drastically to -1.17, indicating an unsustainable cost structure. Operating income showed slight improvement, deteriorating at a lower rate (-35.45% operating income ratio), but the company continues to grapple with rising operational expenses amounting to $1,930,314.
Balance Sheet Health: Total liabilities encompass $6,266,926 against total assets of $1,467,611, illustrating a concerning solvency issue (debt ratio of 1.036).
Cash Flow: Though the net cash used in operating activities is -$1,095,099, active management of accounts payable led to an increase in operational cash flow. Cash at the end of Q3 was $195,511, emphasizing the urgent need for better cash preservation strategies.