Kindly MD, Inc. reported significant financial developments in its 10-Q filing for the quarter ended September 30, 2024. The company experienced a decline in revenues, with total revenues for the three months amounting to $647,867, a decrease of 25.5% from $869,268 in the same period of 2023. For the nine months ended September 30, 2024, revenues were $2,115,953, down 29.7% from $3,009,151 in the prior year. This decline was primarily attributed to a decrease in cash-pay patient care services, alongside a notable drop in product retail sales.

Operating expenses for the third quarter increased to $1,697,685, representing 262% of revenues, compared to $1,380,865 (158.9% of revenues) in the previous year. The rise in expenses was driven by higher salaries and wages, which rose by 14.4% to $1,138,561, and a 54.8% increase in general and administrative expenses, totaling $525,758. The company reported a loss from operations of $(1,049,818) for the quarter, compared to $(511,597) in the same quarter of 2023. The net loss for the three months was $(1,014,147), up from $(515,146) in the prior year.

For the nine-month period, the net loss increased to $(2,616,126) from $(1,292,533) in 2023, with net loss per share rising to $(0.50) from $(0.29). The company also reported a significant increase in cash and cash equivalents, which rose to $3,642,944 as of September 30, 2024, compared to $525,500 at the end of 2023, largely due to net proceeds of $5,860,650 from its initial public offering (IPO) completed on June 3, 2024.

The IPO provided the company with adequate liquidity for at least the next 12 months. Additionally, the company incurred net cash used in operating activities of $(2,172,361) for the nine months, compared to $(240,806) in the same period of 2023. The company also reported a notable increase in reimbursements from insurance payers, totaling $232,842 for the nine months ended September 30, 2024, compared to none in the same period of 2023.

Strategically, Kindly MD, Inc. has focused on enhancing its operational capabilities, including staffing for Enterprise Data Management and compliance. The company has also engaged in various stock option grants and compensation strategies to align employee interests with company performance. As of September 30, 2024, the company had 5,977,476 common shares outstanding, reflecting an increase from 4,617,798 shares at the end of 2023.