Mr. Adam Ho reports
ARCPOINT REPORTS Q1 2025 FINANCIAL RESULTS
Arcpoint Inc. has filed its unaudited Q1 2025 financial statements and related management
discussion and analysis as summarized below.
Interim chief financial officer and director Adam Ho commented: "In addition to a year-over-year reduction in overall costs
as a result of the Cresso transaction, we have also recently enacted additional temporary reductions in
overall compensation and professional services costs of approximately $57,000 (U.S.) per month. These
temporary reductions are a testament to the commitment of our team members in our pursuit of
increasing value for our shareholders and other stakeholders."
Beginning in mid-April of this year, the company enacted temporary reductions in overall compensation
and professional services costs totalling approximately $57,000 (U.S.) on a monthly basis. These temporary
reductions represent approximately 40 per cent of total monthly compensation and key, monthly recurring
professional services costs. The reductions are temporary and are intended to help the company manage
its finances while it works to increase revenues through the addition of new users of the company's
MyArcpointLabs (MAPL) technology platform.
Mr. Ho added, "Although a reduction in costs is important and we are grateful for the sacrifices our team
members are making, we remain focused on adding new users of our MAPL platform and look forward to
reporting on our progress in this regard soon".
On Aug. 20, 2024, the company announced that it had entered into a transaction with Any Lab Test Now
(ALTN) to bring together the franchise operations of both Any Lab Test Now and Arcpoint into a new joint
venture company, Cresso Brands LLC. ALTN, based in Atlanta, Ga., was founded in 1992 and at the time
of the Aug. 20, 2024, transaction, had more than 235 United States franchise locations, providing direct
access to clinical, DNA, and drug and alcohol lab testing services, as well as phlebotomy and other
specimen collection services, through its retail storefront business model. When combined with the more
than 135 Arcpoint franchise group locations, also at the time of the transaction, Cresso is now the largest
franchise network of its kind in the United States. At the time of the Cresso transaction, ALTN and
Arcpoint also agreed to make Arcpoint's MyArcpointLabs technology platform (MAPL) the systems
choice for Cresso brand franchisees. Given that the company now holds a 29.5-per-cent interest in the Cresso,
Arcpoint's interest is accounted for using the equity method. As a result, revenues and costs previously
attributable to the company's franchise operations are no longer consolidated into the Arcpoint's
financial statements.
All results below are reported under international financial reporting standards and in United States dollars. The
company reminds readers to take into consideration that the Cresso transaction was concluded in the
third quarter of 2024 on Aug. 20, 2024. For accounting purposes, the company has deconsolidated
Arcpoint Franchise Group and recorded its 29.5-per-cent interest in Cresso as an equity investment going
forward. The company advises readers to see its unaudited interim financial statements and the interim management discussion and analysis of the company (MD&A) under the
company's profile.
On Jan. 3, 2025, the company completed the sale of its 68-per-cent share ownership interest in ABH
Greenville, as originally announced on Dec. 30, 2024. In exchange for its ownership interest in ABH
Greenville, the company received a cash consideration of $360,000.
As at March 31, 2025, the company had total cash on hand of approximately $230,000 (U.S.).
All results below are reported under international financial reporting standards and in U.S. dollars.
Summary of 2025 Q1 financial results
- Total revenues for the three months ended March 31, 2025, were $180,000 compared with $1.61-million for the three months ended March 31, 2024. The decrease in revenue was primarily due
to decreased royalty and franchising revenues as no royalties and brand fund revenues were
included after the Cresso joint venture transaction on Aug. 20, 2024.
- Net loss for the three months ended March 31, 2025, was $620,000 compared with a net loss of
$1.5-million for the three months ended March 31, 2024. The decrease in net loss was primarily
due to a decrease in cost of revenue of $600,000, a decrease in salary and wages of $700,000,
a decrease in general and administrative expenses of $100,000, and a decrease in sales and
marketing costs of $100,000, partially offset by a gain in the disposal of ABH Greenville of $300,000 and a gain in the share of income of Cresso of $200,000.
- Operating cash flow for the three months ended March 31, 2025, was negative $900,000
compared with negative $1.3-million for the three months ended March 31, 2024.
- EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended March 31, 2025, was negative $400,000 compared with
negative $1.2-million for the three months ended March 31, 2024.
- Adjusted EBITDA for the three months ended March 31, 2025, was negative $600,000
compared with negative $1.0-million for the three months ended March 31, 2024.
About Arcpoint Inc.
Arcpoint is a leading United States-based health care company that leverages technology along with brick-and-mortar locations to give businesses and individual consumers access to convenient, cost-effective
health care information and solutions with transparent, upfront pricing, so that they can be pro-active and
preventative with their health and well-being. Arcpoint is based in Greenville, S.C., United States.
Arcpoint Corporate Labs LLC develops corporate-owned labs committed to providing accurate, cost-effective solutions for customers, businesses and physicians. AFG Services LLC serves as the innovation
center of the Arcpoint group of companies as it builds a proprietary technology platform and a physician
network to equip all Arcpoint labs with best-in-class tools and solutions to better serve their customers.
The platform also digitalizes and streamlines administrative functions such as materials purchasing,
compliance, billing and physician services for Arcpoint franchise labs and other clients.
We seek Safe Harbor.
© 2025 Canjex Publishing Ltd. All rights reserved.