Empower Clinics Inc. (CSE: CBDT)(OTC PINK: EPWCF) released its audited consolidated financial statements in United States dollars. Empower Clinics reported total revenues grew 58% to $3,209,196 for the fiscal year 2020 versus revenues of $2,031,581 for the fiscal year 2021. The company had a net loss of $17,066,311 or $0.09 per share compared to $4,301,663 or $0.04 per share for the fiscal year 2019. the company said this was primarily driven by a non-cash loss on the fair value adjustment related to its warrants outstanding that were impacted by the significant appreciation of the company’s share price (a key input in determining the fair value).
Operating costs were lowered to $4,489,427 for the year from $6,151,214 for 2019, representing a reduction of 27%. Cash on December 31, 2020, was $4,889,824, compared to cash of $179,152 on December 31, 2019, which increase was primarily driven by the proceeds generated on the exercise of share purchase warrants.
“2020 presented our company with unexpected challenges, yet through the pandemic, we discovered and experienced growth. Among other initiatives, we were able to expand the impact of our integrated health model through a successful pivot towards the COVID testing space through our acquisition of Kai Medical Laboratory and our big step into the Canadian healthcare market with the acquisition of Lawrence Park and Atkinson clinics,” said Steven McAuley, Chairman, and CEO of Empower Clinics. “I look forward to the year ahead as we continue to expand the portfolio of direct-to-consumer testing products through Kai Medical and the Kai Care brand. Finally, I am so encouraged by our partnerships with best-in-market brands in the pharmacy and airlines industries as well as securing additional reputable clients and acquisitions for our future growth”.
As part of total revenues, Empower said that the clinic services revenues for the fourth-quarter and full-year 2020 were $848,190 and $3,154,301, respectively, compared to Q4 and full-year 2019 revenues of $542,677 and $1,949,549, respectively. The company said the increase over the prior year was attributable to the impact of COVID-19, along with the acquisition of Kai on October 5, 2020, partially offset by the reduction in patients visiting the Sun Valley Health clinics as a result of State legalization of cannabis in November 2020. The company acquired Kai Medical Laboratory in June, which operates a high-complexity CLIA and COLA accredited laboratory that provides reliable and accurate testing solutions to hospitals, medical clinics, pharmacies, and employer groups.
Since the quarter and year ended, Empower said it paid off in full certain secured loans and promissory notes in the amount of $1,353,188. In June 2021, Empower signed a non-binding term sheet to acquire Medisure + Sure Canada Inc. who is a leading Canadian manufacture of medical devices for patients managing diabetes.