Replies to post #146733 on Rennova Health Inc (RNVA)

[jmoney360]

From recently 10Q
Net Revenues



Net revenues were $4.9 million for the three months ended March 31, 2023, as compared to net revenues of $1.1 million for the three months ended March 31, 2022, an increase of $3.8 million. We attribute the increase in net revenues to increased billings related primarily to greater inpatient admissions and increased collections 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 July 1, 2021.



Direct Cost of Revenues



Direct costs of revenues increased by $0.5 million for the three months ended March 31, 2023 compared to the three months ended March 31, 2022. We attribute the increase primarily to higher professional fees and salaries and wages. Professional fees increased due to greater inpatient admissions and to the restructuring of our relationships with certain professional service firms. Salaries and wages increased due to greater inpatient admissions, increased non-clinical staffing and reduced contract labor.



General and Administrative Expenses



General and administrative expenses increased by $0.6 million in the three months ended March 31, 2023 compared to the three months ended March 31, 2022. Our hospitals’ general and administrative expenses contributed approximately $0.4 million of the increase due primarily to increased salaries and wages and professional and purchased services. In addition, we incurred $0.1 million of additional corporate related expenses and $0.1 million of startup expenses associated with our newly-formed behavioral health subsidiary.
Income (loss) from Continuing Operations Before Other Income (Expense) and Income Taxes



Income from continuing operations before other income (expense) and income taxes for the three months ended March 31, 2023 was $0.8 million compared to a loss of $1.9 million for the three months ended March 31, 2022. We attribute the income in the three months ended March 31, 2023 compared to the loss in the three months ended March 31, 2022 to the $3.8 million increase in net revenues in the three months ended March 31, 2023 compared to the comparable 2022 period, partially offset by higher direct costs of net revenues and general and administrative expense in the three months ended March 31, 2023 versus the 2022 period.

[jmoney360]

From recently filed 10-k

Net revenues were $13.0 million for the year ended December 31, 2022, as compared to $3.2 million for the year ended December 31, 2021, an increase of $9.8 million. We attribute the increase in net revenues primarily due to retroactive and current billings and collections and increased inpatient admissions 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 July 1, 2021.

Direct Costs of Revenues

Direct costs of revenues increased by $1.5 million for the year ended December 31, 2022 compared to 2021. We attribute the increase in 2022 primarily to higher professional fees and salaries and wages, partially offset by lower costs at Jellico due to the lease termination in March 2021. Professional fees increased due to greater inpatient admissions and to the restructuring of our relationships with certain professional service firms. Salaries and wages increased due to greater inpatient admissions, increased non-clinical staffing and reduced contract labor.

Loss from Continuing Operations Before Other Income (Expense) and Income Taxes


Our loss from continuing operations before other income (expense) and income taxes for the year ended December 31, 2022 was $1.4 million compared to a loss of $12.5 million for the year ended December 31, 2021. We attribute the decrease in the operating loss primarily to the increase in net revenues, the asset impairment charge in 2021 as well as the reduction in general and administrative expenses.