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BOCA RATON, Fla., June 29, 2017 (GLOBE NEWSWIRE) --

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Inspira Financial Inc. (TSX-V:LND) ("Inspira"), a company focused on providing revolving lines of credit, as well as billing and collection services, to the highly fragmented U.S. mental health and addiction services market, released its audited consolidated financial statements the year-ending February 28, 2017.

Audited year-end financial statements ended February 28, 2017 and accompanying Management's Discussion & Analysis (MD&A) are available at www.sedar.com.

Summary of Audited Financial Statements:

• Total revenue increased to $3,944,408 from $2,102,617 in the last fiscal year, an increase 87.6% year-over-year.
• The billing and collection acquisition generated $565,206 or 14.3% of annual sales; with less than a half a year of revenue of this fiscal year’s financials.
• Generated a loss of $466,378 for the year excluding items such as legal and audit, goodwill impairment and stock-based compensation ¹ 
  - Exited Management team, resulting in a total expense of $1,205,084 for the fiscal year.
• Notwithstanding revenues and financial margin provided by the acquisition, the Company completed IFRS accounting impairment procedure for the acquisition, leading to a one-time expense in the year-end financials.

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Inspira's audited year-end financial statements ended February 28, 2017 and accompanying Management's Discussion & Analysis (MD&A) are available at www.sedar.com.

“The business continues to evolve toward the vision of being a leader in offering lending, billing and collecting services through improved technology in the addiction market in the US,” said Jaime Geber, Chairman of Inspira. “While the business is in the formative stages, it seems well positioned for growth over time. In the current quarter and beyond, we are focused on delivering increased shareholder value in a number of ways. First, we continue to build and invest in the billing and collections automation. While this may take several quarters, the market is large and growing and the business seems well positioned to be a leader once the technology build out is complete. Second, the Board continues to look at ways to leverage our large and growing cash balance to improve shareholder returns. Lastly, during the transition of old management to new, we are working to reduce overhead and operate leanly. We are focused on protecting our cash balance which will give us growing options to deliver shareholder value in the future.”

About Inspira Financial
The mental health and substance abuse market in the U.S. is a rapidly expanding industry, with current spending exceeding $35 billion. Within this industry, thousands of businesses have annual revenues in the $1 million to $50 million range. Due to the significant increase in addiction treatment as a result of the Parity Act, the large and permanently elevated volumes of claims has led Payors to impose upon facilities in the mental health sector similarly complex reimbursement requirements as those imposed in the physical healthcare sector. Substance abuse facilities tend to use several software applications and a non-automated billing company to document services provided and bill insurance companies. This cumbersome process slows down the tracking, billing and collection process as the customer's billings increase, and were not designed to handle the volume, or level of detail, now required by Payors for prompt payment. As a result, across the mental health and substance abuse industry there are collection delays and consequently a need for capital.

Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Inspira, narrowing of the sales focus resulting in renewed sales growth, and building shareholder value through both increasing revenues and profits, are intended to identify forward-looking information. All figures are in Canadian dollars. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Inspira's current views and intentions with respect to future events, and current information available to Inspira, and are subject to certain risks, uncertainties and assumptions, including; continues to look at ways to leverage our large and growing cash balance to improve shareholder returns; attracting clients by having a more targeted sales and marketing strategy; existing clients not decreasing in size; adding new clients will increase revenue; increasing revenue and profits improves share price; the continued existence of billing/collection contracts; the demand for addiction treatment continuing to increase; the new service line being complimentary to existing Inspira clients; Inspira being successful in its integration of the billing company; Inspira's clients maintaining revenue regardless of overall industry demand; Inspira's sales and marketing efforts resulting in more clients; increasing total clients serviced will result in Inspira's ability to attract larger clients which will have a significant positive impact on revenue; sales and marketing effectively growing the total client base; Inspira being able to use the scale of multiple clients and a larger operation to reduce costs; and the ability of Inspira to successfully create, including its ability to retain and employ the necessary talent, the effective software that results in automation. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include changes in law, competition, the ability to implement business strategies and pursue business opportunities, state of the capital markets, the availability of funds and resources to pursue operations, dependence on debt markets and interest rates, demand for the lending products Inspira offers at interest rates higher than at which Inspira can borrow, a novel business model, granting of permits and licenses in a highly regulated business, difficulty integrating newly acquired businesses (including the billing company), risks of performance by the target, new technologies, risk of billing irregularities by borrowers, low profit market segments, as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in Inspira's annual Management's Discussion and Analysis for the year ended February 28, 2017, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect Inspira in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Inspira does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Inspira undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.

All amounts herein are in Canadian dollars and are based on our interim consolidated financial statements and accompanying MD&A for the period ended February 28, 2017 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

CONTACT: Inspira Financial Inc.
Edward Brann
Executive Director
1 (844) 877-7562
[email protected]
www.inspirafin.com