(NASDAQ:BIMI) Shares are up more than 80% this morning on more than 38,000 trades in the pre-market. Shares are currently trading at $1.09
Revenues for the three months ended March 31, 2022 and 2021 were $5,019,748 and $2,168,004, respectively. Compared with the same period in 2021, revenue increased by $2,851,744 in 2022, mainly due to the $2,073,608 increase in sales of medical devices and $880,202 increase in medical services revenues. The increase in medical device sales is mainly due to higher demand during the first quarter of 2022. The 2022 medical services revenues reflect the revenues generated by three hospitals, which were acquired in May 2021.
Cost of revenues for the three months ended March 31, 2022 and 2021 were $3,561,278 and $1,575,743, respectively. The increase primarily reflects the costs associated with operations of the Guanzan Group and the Qiangsheng, Eurasia and Minkang hospitals.
For the three months ended March 31, 2022 and 2021, the Company had gross margins of 29% and 27%, respectively. For the three months ended March 31, 2022 and 2021, the gross profit margins of: (i) wholesale pharmaceuticals segment were 12.70% and 36.21%, respectively; (ii) wholesale medical devices segment were 14.13% and 52.73%, respectively; (iii) medical services segment were 61.52% and 9.32%, respectively; and (iv) retail pharmacy segment were 38.31% and 17.17%, respectively.
Operating expenses were $4,015,169 for the three months ended March 31, 2022 as compared to $3,832,650 for the same period in 2021, an increase of $182,519 or 5%. The increase is primarily due to the salaries of the Companys Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of $1,400,500 for the three months ended March 31, 2022. During the 2021 period the Companys operating expenses included a $771,000 expense related to the amortization of the discount relating to the convertible notes issued in 2021.
For the three months ended March 31, 2022 and 2021, the Company reported other expenses of $161,200 and $31,490, respectively. Other expenses mainly consisted of interest expense relating to the bank loans of the Guanzan Group, Zhuoda and Zhongshan.
The Company reported a net loss of $2,740,480 for the three months ended March 31, 2022, compared to a net loss of $3,290,627 for the three months ended March 31, 2021, a decrease of $550,147.
As of March 31, 2022, the Company had cash of $1,606,214 and negative working capital of $1,359,907 as compared to cash of $4,797,849 and negative working capital of $932,493 on December 31, 2021.
Our effort to improve efficiency have resulted in increased revenues and gross margins for the first quarter of 2022. As we move forward, we will continue to enhance compliance and risk management, and continue to improve service quality and brand awareness, said Mr. Tiewei Song, Chief Executive Officer of BIMI International Medical Inc.