WEQL WellQuest Medical and Wellness Corp (CE)

WellQuest Medical & Wellness Corporation (the “Company” or “WellQuest”) (OTCBB:WEQL), announced revenues of $940,121 in the three months ended June 30, 2009, a new record for the Company, exceeding Q1 2009’s record of $930,336. Revenues in the second quarter of 2009 increased $160,461, or 21% over 2008 first quarter revenues of $779,660.

“Our financial results, specifically record revenues and operating income, are evidence that our business model continues to gain traction with our target market. We look forward to replicating the success of our Bentonville flagship location at future sites,” stated WellQuest CEO Steve Swift.

Revenue growth was driven by increased demand for medical clinic services as evidenced in a 30% rise in medical clinic visits from 6,435 visits in the second quarter of 2008 to 8,384 visits in the second quarter of 2009.

The Company reported operating income of $14,085 in the second quarter of 2009 compared to an operating loss of $(447,315) in the second quarter of the prior year. Results were driven by increased revenues and lower operating expenses in the second quarter of the current fiscal year as compared to Q2 of fiscal 2008. Operating expenses were lower in Q2 of 2009 as compared to the prior year’s second quarter due to legal and corporate expenses associated with WellQuest becoming public.

Net loss for the second quarter of 2009 was $(49,848) or $(0.002) per share, compared to a net loss of $(513,959) or $(0.022) per share in the second quarter of 2008. Net income results were driven by a combination of increased revenues and lower corporate and legal expenses in the second quarter of the current fiscal year.

For the six month period ended June 30, 2009, revenues grew 15% to $1,870,457 as compared to $1,631,206 in the six months ended June 30, 2008. Revenue growth is attributed to increased demand for medical clinic services which grew by 19% from 13,876 client visits in the six months ended June 30, 2008 as compared to 16,550 visits in the six months ended June 30, 2009.

Operating loss was $(32,495) in the six months ended June 30, 2009 compared to an operating loss of $(342,238) in the prior year’s period. Net loss decreased in the six months of fiscal 2009 by $328,107 or 69% to $(150,352) from $(478,459) in the six months ended June 30, 2008. Operating and net income results were driven by increased revenues and decreased operating expenses in the 2009 period as compared to 2008.

About WellQuest Medical & Wellness Corporation

WellQuest offers its innovative concept in healthcare delivery by integrating conventional and complementary physician medicine with wellness, and aesthetic services in one center, creating an effective environment for the pursuit and maintenance of a healthy life. WellQuest’s unique model for healthcare helps customers get well, stay well, and look well. Currently operating in Bentonville, Arkansas, WellQuest seeks to open locations across the U.S.

In addition to historical information, this press release may contain statements that constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include the intent, belief or expectations of the Company and members of its management team with respect to the Company's future business operations and the assumptions upon which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

WELLQUEST MEDICAL & WELLNESS CORPORATION

(formerly HQHealthQuest Medical & Wellness Centers, Ltd.)

               

Consolidated Balance Sheets

  June 30 December 31 2009 2008 (Unaudited)           Assets Current assets: Cash $ 59,801 $ 103,265 Accounts receivable, less allowance of $189,190 and $235,348 at June 30, 2009 and December 31, 2008, respectively 235,342 293,363 Other current assets   57,837             50,737     Total current assets 352,980 447,365   Property and equipment, net 334,681 387,125   Deferred financing costs, net of accumulated amortization of $9,258 and $0 at June 30, 2009 and December 31, 2008, respectively   101,842             -     Total assets $ 789,503           $ 834,490     Liabilities and Stockholders' Deficit Current liabilities: Line of credit $ 185,000 $ 202,494 Accounts payable 209,859 293,312 Accrued liabilities 219,590 207,329 Due to physicians and related parties 526,816 545,823 Note payable to related party - 349,608 Current maturities of long-term debt 462,276 517,324 Current obligations under capital leases 25,942 23,902 Current maturities of subordinated debentures payable to stockholders, net of unamortized discount of $0 and $17,093 at June 30, 2009 and December 31, 2008, respectively   490,497             523,409     Total current liabilities 2,119,980 2,663,201   Long-term subordinated convertible debenture to a stockholder, less current maturities 443,123 -   Long-term obligations under capital leases, less current portion   105,144             118,646     Total liabilities   2,668,247             2,781,847     Stockholders' deficit:

Preferred stock - $.01 par value; authorized 2,500,000 shares

75,000 designated as Series A convertible preferred stock; 25,515 and 37,440 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively

255 374 Common stock - $.001 par value; authorized 150,000,000 shares; 29,010,167 and 23,716,361 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively 29,010 23,716 Additional paid-in capital 1,476,820 1,263,030 Warrants outstanding 177,000 177,000 Accumulated deficit   (3,561,829 )           (3,411,477 )   (1,878,744 )           (1,947,357 )   Total liabilities and stockholders' deficit $ 789,503           $ 834,490  

WELLQUEST MEDICAL & WELLNESS CORPORATION

(formerly HQHealthQuest Medical & Wellness Centers, Ltd.)

       

Consolidated Statements of Operations

For the three and six months ended June 30, 2009 and 2008

(Unaudited)

  Three Months Ended Six Months Ended June 30, June 30,   2009         2008         2009         2008           Net revenue $ 940,121 $ 779,660 $ 1,870,457 $ 1,631,206   Operating expenses: Salaries, wages and benefits 310,449 358,100 615,809 653,044 Rents and facility expenses 71,142 79,334 143,723 154,186 Clinic direct expenses, excluding salaries, wages and benefits

366,766

301,185

717,833 540,325 Spa direct expenses, excluding salaries, wages and benefits

78,916

77,615

156,353 135,465 General corporate expenses 69,620 383,499 211,496 436,127 Depreciation and amortization   29,143         27,242         57,738         54,297     Total operating expenses 926,036 1,226,975 1,902,952 1,973,444                     Operating income (loss) 14,085 (447,315 ) (32,495 ) (342,238 )   Interest income (expense): Interest income - 530 - 3,232 Interest expense   (63,933 )       (67,174 )       (117,857 )       (139,453 )   Net interest expense   (63,933 )       (66,644 )       (117,857 )       (136,221 )   Net loss applicable to common stock $ (49,848 )     $ (513,959 )     $ (150,352 )     $ (478,459 )   Loss per common share: Basic and diluted $ (0.002 )     $ (0.022 )     $ (0.006 )     $ (0.021 )   Weighted average number of common shares outstanding: Basic and diluted   25,177,933         23,239,394         24,451,185         23,239,394