Rennova Health Inc (RNVA)

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RNVA Net Revenues



Net revenues were $11.3 million for the six months ended June 30, 2023, as compared to $4.8 million for the six months ended June 30, 2022, an increase of $6.5 million. We attribute the increase in net revenues to greater inpatient admissions, increased outpatient services, higher reimbursement rates and certain collections from prior periods related to Critical Access Hospital designation at our Big South Fork Medical Center. We began billing as a Critical Access Hospital in the three months ended June 30, 2022 retroactive to June 30, 2021.



Direct Costs of Revenues



Direct costs of revenue increased by $0.7 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022. We attribute the increase primarily to higher salaries and wages and professional fees. Salaries and wages increased primarily due to greater inpatient admissions and increased non-clinical staffing, partially offset by reduced contract labor. Professional fees increased as a result of the restructuring of our relationships with certain professional service firms.



General and Administrative Expenses



General and administrative expenses increased by $1.1 million in the six months ended June 30, 2023 compared to the 2022 period. Our hospital operations general and administrative expenses increased by approximately $0.9 million primarily due to increased salaries and wages, professional and purchased services and property taxes. In addition, we incurred $146,000 of startup expenses associated with Myrtle and a $54,000 increase in corporate related expenses.



Depreciation and Amortization Expense



Depreciation and amortization expense remained relatively constant at approximately $0.2 million and $0.2 million in the six months ended June 30, 2023 and 2022, respectively.



Income (Loss) from Continuing Operations Before Other Income (Expense), Income Taxes and Net Loss Attributable to Noncontrolling Interest



Our income from continuing operations before other income (expense), income taxes and net loss attributable to noncontrolling interest for the six months ended June 30, 2023 was $2.8 million compared to a loss of $1.9 million for the six months ended June 30, 2022. We attribute the $4.7 million improvement in the six months ended June 30, 2023 to the $6.5 million increase in net revenues in the six months ended June 30, 2023 compared to the comparable 2022 period, partially offset by higher direct costs of net revenues and general and administrative expenses in the six months ended June 30, 2023 versus the 2022 period.