Empower Clinics sees fiscal 2020 revenue pop by 58% as its diagnostics lab churns through coronavirus tests

Empower Clinics Inc (CSE:CBDT) (OTCPINK:EPWCF) (FRA:8EC) posted fiscal 2020 results that saw its revenue jump 58% year-over-year, driven by medical diagnostics lab processing thousands of coronavirus (COVID-19) specimens. 

For the year ended December 31, 2020, the Vancouver-headquartered integrated healthcare company reported revenue of $3,209,196, compared to $2,031,581 in the year ended December 31, 2019. 

As part of total revenue, clinic services revenue for the fourth quarter and full-year 2020 were $848,190 and $3,154,301, respectively, compared to fourth quarter and full-year 2019 revenue of $542,677 and $1,949,549, respectively. 

READ: Empower Clinics partners with Pharmachoice to offer Kai Care COVID-19 testing solutions

“This increase over the prior year is 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,” noted the company.

Significantly, Empower lowered operating costs by 27% to $4,489,427 for 2020 from $6,151,214 in 2019.

Empower had $4,889,824 in cash as of December 31, 2020, compared to $179,152 in cash on December 31, 2019. The firm chalked up the increase to proceeds generated on the exercise of share purchase warrants.

In a statement accompanying the numbers, Empower Clinics CEO Steven McAuley said: “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 coronavirus (COVID-19) 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.”

He added: “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.”

For the full year 2020, Empower reported a net loss of $17,066,311 of $0.09 per share, compared to $4,301,663 or $0.04 per share for full-year 2019. The net loss for the fourth quarter was $15,685,996, compared to $1,942,084 in the same quarter a year earlier. The company explained that this was primarily driven by “a non-cash loss on the fair value adjustment related to the company’s warrants outstanding that were impacted by the significant appreciation of the company’s share price (a key input in determining the fair value).”

In October 2020, Empower acquired Kai Medical Laboratory LLC, which operates high-complexity accredited labs that provide reliable and accurate testing solutions to hospitals, medical clinics, pharmacies, and employer groups.

As a result, Empower now not only serves patients through medical centers, telemedicine platforms, but through its advanced medical diagnostics lab, which processes thousands of COVID-19 specimens. US patients can purchase Kai Care’s at-home COVID-19 saliva test kits with same-day shipping at the company’s website.

Empower noted that in June this year, it struck a six-month pilot program with PharmaChoice to sell Kai Care saliva test kits. PharmaChoice is a Canadian Pharmacy network with more than 900 locations covering the PharmaChoice and RxHealthMed brands.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors