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 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 WASHINGTON,
DC 20549

 Form

 (Mark
One)

 ANNUAL
 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the fiscal year ended December 31, 2023

 or

 TRANSITION
 REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the transition period from to

 Commission
file number: 001-38797

 IMAC

 (Exact
Name of Registrant as Specified in its Charter)

 Delaware

 83-0784691

 (State
 or Other Jurisdiction

 of
 Incorporation or Organization)

 (I.R.S.
 Employer

 Identification
 No.)

 3401
 Mallory Lane, Suite 100, Franklin, Tennessee

 37067

 (Address
 of Principal Executive Offices)

 (Zip
 Code)

 (844) 266-4622

 (Registrant's
Telephone Number, Including Area Code)

registered pursuant to Section 12(b) of the Act:

 Title
 of each class

 Trading
 Symbol(s)

 Name
 of each exchange on which registered

 Common
 Stock, par value $0.001 per share

 BACK

 The
 NASDAQ Stock Market LLC

registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted posted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

 The
aggregate market value of the registrant's voting common stock held by non-affiliates based on the closing stock price on June
30, 2023, was approximately $ 3.3 million. For purposes of this computation only, all executive officers and directors have been deemed
affiliates.

 The
number of outstanding shares of the registrant's common stock, par value $0.001 per share, as of April 16, 2024 was 1,148,321.

 DOCUMENTS
INCORPORATED BY REFERENCE

 None.

 IMAC
HOLDINGS, INC.

 FORM
10-K—ANNUAL REPORT

 For
the Fiscal Year Ended December 31, 2023

 Table
of Contents

 Page

 Item

 Business

 Item
 1A

 Risk Factors

 Item
 1B

 Unresolved Staff Comments

 Item

 Properties

 Item

 Legal Proceedings

 Item

 Mine Safety Disclosures

 Item

 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item

 [Reserved]

 Item

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item
 7A

 Quantitative and Qualitative Disclosures About Market Risk

 Item

 Financial Statements and Supplementary Data

 Item

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

 Item
 9A

 Controls and Procedures

 Item
 9B

 Other Information

 Item
 9C

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item

 Directors, Executive Officers and Corporate Governance

 Item

 Executive Compensation

 Item

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item

 Certain Relationships and Related Transactions, and Director Independence

 Item

 Principal Accounting Fees and Services

 Item

 Exhibits, Financial Statement Schedules

 Item

 Form 10-K Summary

 Signatures

 PART
I

 Cautionary
Statement Regarding Forward-Looking Statements

 Portions
of this Annual Report on Form 10-K (including information incorporated by reference) include "forward-looking statements"
based on our current beliefs, expectations, and projections regarding our business strategies, market potential, future financial performance,
industry, and other matters. This includes, in particular, "Item 7 — Management's Discussion and Analysis of Financial
Condition and Results of Operations" of this Annual Report on Form 10-K, as well as other portions of this Annual Report on Form
10-K. The words "believe," "expect," "anticipate," "project," "could," "would,"
and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date the
statements were made. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors
that could cause our actual results to differ materially from those projected, anticipated, or implied in the forward-looking statements.
The most significant of these risks, uncertainties, and other factors are described in "Item 1A — Risk Factors" of
this Annual Report on Form 10-K. Except to the limited extent required by applicable law, we undertake no obligation to update or revise
any forward-looking statements, whether as a result of new information, future events, or otherwise.

 Unless
the context requires otherwise, references herein to "we," "us," "our," "our company,"
"our business" or "IMAC Holdings" are to IMAC Holdings, Inc., a Delaware corporation, and prior to the Corporate
Conversion discussed herein, IMAC Holdings, LLC, a Kentucky limited liability company, and in each case, their consolidated subsidiaries.

 ITEM
 1.

 BUSINESS

 Overview

 We
were a provider and manager of value-based, conservative medical care combining life science advancements with traditional medical care
for movement-restricting diseases and conditions in IMAC Regeneration Centers and BackSpace clinics. Our Innovative Medical Advancements
and Care (IMAC) Regeneration Centers combine medical and physical procedures to improve patient experiences and outcomes and reduce healthcare
costs as compared to other available treatment options. As of December 31, 2023, we closed or sold our outpatient clinics that provide
regenerative, orthopedic and minimally invasive procedures and therapies. Our treatments were performed by licensed medical practitioners
through our regenerative rehabilitation protocols designed to improve the physical health, to advance the quality of life and to lessen
the pain of our patients. We did not prescribe opioids, but instead offered an alternative to conventional surgery or joint replacement
surgery by delivering minimally invasive medical treatments to help patients with sports injuries, back pain, knee pain, joint pain,
ligament and tendon damage, and other related soft tissue conditions. Our employees focused on providing exceptional customer service
to give our patients a memorable and caring experience.

 Our
licensed healthcare professionals have historically provided each patient a custom treatment plan that integrated innovative
regenerative medicine protocols (representing 9% of our revenue) with traditional, minimally invasive (minimizing skin punctures)
medical procedures (representing 63% of our revenue) in combination with physical therapies (representing 22% of our revenue),
chiropractic care (representing 5% of our revenue) and the remaining 1% of our revenue from memberships based on historical averages. We did not use or offer
opioid-based prescriptions as part of our treatment options in order to help our patients avoid the dangers of opioid abuse and
addiction. We have successfully treated patients that were previously addicted to opioids because of joint or soft tissue related
pain. Further, our procedures comply with all professional athletic league drug restriction policies, including the NFL, NBA, NHL
and MLB.

 Dr.
Matthew Wallis, DC, our former President, opened the first IMAC Regeneration Center in Paducah, Kentucky in August 2000, which was our
flagship location. Dr. Jason Brame, DC joined Dr. Wallis in 2008. In 2015, Drs. Wallis and Brame hired Jeffrey S. Ervin as our Chief
Executive Officer to collectively create and implement their growth strategy. The result was the formal creation of IMAC Holdings, Limited
Liability Company ("LLC") to expand IMAC clinics outside of western Kentucky, with such facilities to remain owned or operated
under the group using the IMAC Regeneration Center name and services. In June 2018, we completed a corporate conversion in which IMAC
Holdings, LLC was converted to IMAC Holdings, Inc. to consolidate ownership of existing clinics and implement our growth strategy. In
February 2019, we completed an initial public offering and our shares commenced trading on the Nasdaq Capital Market.

 We
focused on providing natural, non-opioid solutions to pain as consumers increasingly demand conservative treatments for an aging population.
The demand for our services grew fueled by consumer preferences for organic healthcare solutions over traditionally invasive orthopedic
practices. We believed that our regenerative rehabilitation treatments were provided to patients at a much lower price than our primary
competitors, including orthopedic surgeons, pain management clinics and hospital systems targeting invasive joint reconstruction. Surgical
joint replacements cost several times more than our therapies initially treating the same condition. The U.S. government has recently
adopted strict surgery pre-approval initiatives to reduce the cost for CMS and limit the proliferation of opioids since they accompany
substantially all joint replacement surgeries.

 We
believed patient satisfaction was driven by our five fundamental beliefs:

 We
 believe that the body has the ability to heal itself, and better results occur with our solutions to unlock the body's natural
 healing process;

 We
 believe in the power of doctors, from many different specializations, working together for the best patient care possible;

 We
 believe that employees should know patients by their face, not by a chart number;

 We
 believe consumers have a choice regardless of physician referral or insurance coverage; and

 We
 believe a medical setting should be comforting.

 We
are led by senior executive officers who together have more than 100 years of combined experience in the healthcare services industry.
Jeffrey S. Ervin, co-founder of IMAC Holdings and our Chief Executive Officer, joined us in March 2015. Mr. Ervin has a history of sourcing
private equity investments and managing private equity operations in the healthcare and other growth industries. Mr. Ervin earned an
M.B.A. degree from Vanderbilt University. The founder of our company, Matthew C. Wallis, DC, a licensed chiropractor, was our President
through November 2023. Dr. Wallis had implemented strategies in the company to create consistent operating efficiencies for our sales,
marketing and service delivery operations. Sheri F. Gardzina serves as our Chief Financial Officer and joined the company in November
2017. Mrs. Gardzina earned an M.B.A. and M.S. from Northeastern University and is a licensed Certified Public Accountant. Ben Lerner,
DC, a licensed chiropractor, joined the team in February 2022 as our Chief Operating Officer. Dr. Lerner left the company in February
2023 to pursue other opportunities.

 Recent
Developments

 On
May 23, 2023, IMAC Holdings, Inc., a Delaware corporation (Nasdaq: BACK) (the "Company") entered into an Agreement and Plan
of Merger (the "Merger Agreement") with Theralink Technologies, Inc. (OTC: THER), a Nevada corporation ("Theralink"),
and IMAC Merger Sub, Inc., a Delaware corporation and a newly formed, wholly owned subsidiary of the Company ("Merger Sub").
Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Theralink (the "Merger"),
with Theralink continuing as the surviving entity (the "Surviving Entity") and a wholly owned subsidiary of the Company.
On May 22, 2023, the board of directors of the Company, and the board of directors of Theralink unanimously approved the Merger Agreement.

 At
the effective time of the Merger (the "Effective Time"), each share of Theralink's common stock ("Theralink Common
Stock") and each share of Theralink's preferred stock (together with the Theralink Common Stock, "Theralink Shares")
issued and outstanding as of immediately prior to the Effective Time will be converted into and will thereafter represent the right to
receive a portion of a share of the Company's common stock (the "Company Shares") such that the total number of Company
Shares issued to the holders of Theralink Shares shall equal 85% of the total number of Company Shares outstanding as of the Effective
Time (the "Merger Consideration").

 At
the Effective Time, each award of Theralink stock options (each, a "Theralink Stock Option"), whether or not then vested
or exercisable, that is outstanding immediately prior to the Effective Time, will be assumed by the Company and converted into a stock
option relating to a number of Company Shares equal to the product of: (i) the number of shares of Theralink Common Stock subject to
such Theralink Stock Option; and (ii) the ratio which results from dividing one share of Theralink Common Stock by the portion of a Company
Share issuable for such share as finally determined at the Effective Time (the "Exchange Ratio"), at an exercise price per
Company Share (rounded up to the nearest whole cent) equal to the quotient obtained by dividing (A) the exercise price per share of Theralink
Common Stock of such Theralink Stock Option by (B) the Exchange Ratio.

 The
Company and Theralink have each agreed, subject to certain exceptions with respect to unsolicited proposals, not to directly or indirectly
solicit competing acquisition proposals or to enter into discussions concerning, or provide confidential information in connection with,
any unsolicited alternative acquisition proposals. However, if such party receives an unsolicited, bona fide acquisition proposal that
did not result from a material breach of the non-solicitation provisions of the Merger Agreement and the Company's or Theralink's
board of directors, or any committee thereof, as applicable, concludes, after consultation with its financial advisors and outside legal
counsel, that such unsolicited, bona fide acquisition proposal constitutes, or could reasonably be expected to result in, a superior
offer, such party may furnish non-public information regarding it or any of its subsidiaries and engage in discussions and negotiations
with such third party in response to such unsolicited, bona fide acquisition proposal; provided that each party provides notice
and furnishes any non-public information provided to the maker of the acquisition proposal to each party substantially concurrently with
providing such non-public information to the maker of the acquisition proposal.

 The
completion of the Merger is subject to the satisfaction or waiver of customary closing conditions, including: (i) adoption of the Merger
Agreement by holders of a majority of the outstanding Theralink Shares; (ii) approval of the issuance of Company Shares in connection
with the Merger by a majority of the outstanding shares of the Company's common stock; (iii) absence of any court order or regulatory
injunction prohibiting completion of the Merger; (iv) expiration or termination of (a) all waiting periods under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the "HSR Act") and (b) any agreement with any governmental entity not to
consummate the transactions contemplated by the Merger Agreement; (v) effectiveness of the Company's registration statement on
Form S-4 to register the Company Shares to be issued in the Merger; (vi) subject to specified materiality standards, the accuracy of
the representations and warranties of the other party; (vii) the authorization for listing of Company Shares to be issued in the Merger
on Nasdaq; (viii) compliance by the other party in all material respects with its covenants; and (ix) the completion of satisfactory
due diligence by both parties.

 The
Company and Theralink have each made customary representations and warranties in the Merger Agreement. The Merger Agreement also contains
customary covenants and agreements, including covenants and agreements relating to (i) the conduct of each of the Company's and
Theralink's business between the date of the signing of the Merger Agreement and the closing date of the Merger and (ii) the efforts
of the parties to cause the Merger to be completed, including actions which may be necessary to cause the expiration or termination of
any waiting periods under the HSR Act.

 In furtherance of the proposed business combination
with Theralink, on April 12, 2024 we entered into a credit agreement, secured by the assets of Theralink and its subsidiaries, pursuant
to which Theralink may borrow from the Company up to an aggregate of $1,000,000 with an initial borrowing of $350,000. While we remain
committed to acquiring the business of Theralink, we continue to evaluate all options with respect to the structuring of the business
combination, including the Merger. We cannot give any assurance that the business combination will be consummated in accordance with the
previously disclosed terms, as opposed to other alternative structures. See Note 14 – Subsequent Events.

 On April 10, 2024, we entered into a series of transactions including the
exchange of the Company's outstanding Series B-1 Convertible Preferred Stock, par value $0.001 per share (the "Series B-1
Preferred Stock") and Series B-2 Convertible Preferred Stock, par value $0.001 per share (the "Series B-2 Preferred Stock"
and, collectively with the Series B-1 Preferred Stock, the "Series B Preferred Stock"), for new preferred stock, the exchange
of the Company's outstanding warrants (the "Existing Warrants") for new warrants, and the sale of new preferred stock
and warrants. All such transactions were consummated on April 11, 2024 and resulted in gross proceeds to the Company of $900,000. See
Note 14 – Subsequent Events.

 Our
Operations

 As
of December 31, 2023, we had closed or sold our outpatient medical clinics and BackSpace locations. Given the Company's financial position, during 2023, the Company decided to close its underperforming locations and sold The BackSpace, LLC operations and physical assets of certain locations in an effort to raise sufficient capital
to support on-going operations. Management has been actively exploring various strategic alternatives since July 2022.

 Below
is a description of each of our outpatient medical clinics as of December 31, 2023 along with each location's current status:

 Kentucky

 In
November 2015, we relocated our Paducah, Kentucky operations into a 10,200 square foot build-to-suit facility. This facility serves
as an anchor clinic for the western Kentucky market of roughly 50,000 residents. The clinic performs medical evaluations with x-ray,
fluoroscopic spine, joint and appendage injections, regenerative medicine and physical medicine. This clinic discontinued patient
care in November 2023 upon the sale of assets to The Regenerative Center. The value of the sale of assets and assumption of lease liability exceeded $450,000.

 In
March 2018, we purchased a medical practice building in Lexington, Kentucky, for $1.2 million. The Lexington, Kentucky clinic was
our seventh IMAC outpatient medical clinic, which we named the Tony Delk Center, and opened on July 2, 2018. This building was sold
in June 2020 and we then entered into a lease for the building that expires in July 2025. This clinic discontinued patient care in
January 2023 and lease obligations were settled in May 2023.

 We
opened a 4,700 square foot facility in Murray, Kentucky, a town of nearly 15,000 residents near the Tennessee border in February
2017. This facility provides medical evaluations, fluoroscopic joint and appendage injections, and physical medicine and refers
patients to Paducah for regenerative PRP medical procedures. This clinic discontinued patient care in October 2023 upon the sale of
assets and assumption of liabilities to two former providers.

 Missouri
Market, St. Louis

 In January 2016, IMAC of St. Louis, LLC, executed a lease for a 13,300
square foot facility in Chesterfield, Missouri, a suburb 18 miles west of downtown St. Louis. The clinic opened in May 2016. The clinic
performs medical evaluations with x-ray, fluoroscopic spine, joint and appendage injections, regenerative PRP medicine and physical medicine.
This clinic discontinued patient care in October 2023 upon the sale of assets to JWB Chiropractic, PC. JWB Chiropractic, PC is owned by
our co-founder, Jason Brame, DC. The Company agreed to maintain the security deposit for the facility through 2026 as part of the transition
of lease liability, resulting in the sale of assets and liabilities valued over $600,000.

 IMAC
of St. Louis opened a satellite facility in St. Peters, Missouri to assist with demand from suburbs west of the Missouri River. The
St. Peters clinic opened for business in July 2017. The facility offered patient medical
evaluations with x-ray, fluoroscopic joint and appendage injections, and physical medicine. This clinic discontinued patient care in
December 2021. The lease expired in August 2022.

 IMAC
of St. Louis acquired the chiropractic clinic Lockwood Chiropractic in Webster Groves, Missouri, a suburb of St. Louis, in
November 2020. The clinic relocated to a new medical facility in January 2022, to expand medical
services to broaden our patient base while expanding into neighboring suburbs. This clinic discontinued patient care in September
2023. The lease expires in January 2029.

 Missouri
Market, Springfield

 In
August 2018, we acquired the physical and occupational therapy provider, Advantage Therapy, which operated four locations in the Springfield,
Missouri metropolitan area. The South Springfield location originally occupied 5,000 square feet, until it was relocated in September
2019 to a 7,520 square feet location which has a lease that expires in June 2024. The North Springfield, Monett and Ozark locations function
as satellite locations. The North Springfield location functions within 2,400 square feet with a lease that expired in May 2022. The
Monett location occupied 2,200 square feet pursuant to a lease that expired in February 2021. The Ozark location operated in approximately 1,000 square feet, until it was
relocated in 2019 to a 2,740 square foot location with a lease that expires in May 2024. The North Springfield and Ozark locations discontinued patient
care in 2022 and the Springfield location discontinued patient care in May 2023. Lease obligations for Springfield and Ozark were settled in 2023, and assets
in the facilities were sold to former non-executive employees.

 Tennessee

 The
David Price Center opened in Brentwood, Tennessee in May 2017, however, this clinic discontinued patient care in April 2022. The 7,500
square foot location is leased through July 2024 and was being used as corporate office space through January 31, 2023. The lease obligation was retired and settled in 2023.

 In
November 2017, a 5,500 square foot facility was opened in Murfreesboro, Tennessee however, this clinic discontinued patient care in February
2021.

 Chicago

 In
April 2019, we acquired the non-medical assets of, and management agreements for, a regenerative medicine and physical medicine
practice operating in three locations in the Chicago, Illinois metropolitan area. The Arlington Heights location occupies 3,390
square feet and has a lease which expires in July 2023. The Elgin location occupies 3,880 square feet and has a lease which expires
in October 2023. The Elgin location was sold in November 2022. The Arlington Heights location discontinued patient care April 2023
upon the sale of assets and operations to an external buyer.

 In
November 2019, we entered into a management agreement for an occupational and physical therapy practice in Rockford, Illinois. This location
occupies 3,056 square feet and has a lease that expires in July 2023. This management agreement was terminated in 2021.

 In
June 2021, we completed an asset purchase in Naperville, Illinois. The clinic provides a wide variety of orthopedic treatments for various
conditions through a combination of medical and physical rehabilitation services. This location occupies 2,153 square feet and has a
lease that expires in July 2025. This clinic was sold in July 2022 and the lease terminated effective December 1, 2022.

 Florida

 In
January 2020, we acquired the assets and assumed the building lease liability of Chiropractic Health of Southwest Florida, Inc. in Bonita
Springs, Florida. The acquisition of this practice expanded our presence into a new market
where we have extended our service offering to incorporate medical procedures to the existing physical therapy, chiropractic care and
soft tissue therapies. This clinic discontinued patient care in March 2022. The lease liability was settled in 2022.

 In
February 2021, we acquired the business of Willmitch Chiropractic, P.A. in Tampa, Florida. This location provides chiropractic care and
occupies 3,613 square feet with a lease that expires in April 2026. This clinic discontinued patient care in January 2023.

 In
March 2021, we completed an asset purchase in Orlando, Florida. The clinic operates in 2,500 square feet with a lease that expires in
September 2023. This clinic discontinued patient care in March 2022.

 In
June 2021, we completed an asset purchase in Fort Piece, Florida. The clinic provides chiropractic care and will be incorporating
medical procedures. This clinic occupies 3,368 square feet and discontinued
patient care in January 2023. The lease liability was settled in 2023.

 IMAC
Medical of Louisiana

 In
October 2021, we acquired the assets and management agreement of IMAC Medical of Louisiana in Baton Rouge, Louisiana. The location occupies
9,000 of square feet with a lease that expires in December 2026. This clinic was sold in January 2023.

 BackSpace

 Starting
in June 2021, the Company introduced BackSpace clinics located in Walmart. They provided chiropractic adjustments, nerve and muscle stimulation,
and percussion tool therapies for soft tissue recovery, muscle relaxation, and spinal wellness. The BackSpace operations were sold in
February 2023.

 Our
Services (prior to dispositions)

 The
licensed healthcare professionals at our clinics work with each patient to create a protocol customized for each patient by utilizing
a combination of the following traditional and innovative treatments:

 Medical
Treatments. Our specialized team of doctors work together to provide the latest minimally invasive, prescription-free treatments
for movement challenges or pain related to orthopedic conditions. The treatments are customized to treat the underlying condition instead
of addressing the challenge with prescriptions or surgeries.

 Regenerative
Medicine. Regenerative therapy at IMAC Regeneration Centers utilizes undifferentiated cellular tissue to regenerate damaged tissue.
The majority of our procedures utilize cells from the patient, harvested under minimal manipulation, and applied during the same visit
to the clinic. These autologous cells help to heal degenerative soft tissue conditions, which cause pain or compromise the patient's
quality of life. Platelet therapies comprise the greatest percentage of regenerative procedures. Independent studies in this area, including
a recent safety and feasibility study published by Dr. Peter B. Fodor, "Adipose Derived Stromal Cell Injections for Pain Management
of Osteoarthritis in the Human Knee Joint" (Aesthetic Surgery Journal, February 2016), have supported claims that autologous cell
treatments using adipose and bone marrow lead to improved function and decreased pain within joints, muscles and connective tissue and
can help alleviate osteoarthritis and degenerative disease. We believe that we have followed the increasingly accepted protocols described
in this and other similar studies in connection with our regenerative therapies.

 Physical
Medicine. Our team of medical practitioners start by collaboratively building a personalized physical medicine treatment plan designed
to help patients get back to living the life they deserve.

 Physical
Therapy. With a combination of biomechanical loading and tissue mobilization, our licensed physical rehabilitation therapists
work with each patient to help the body restore skill within the joint or soft tissue.

 Spinal
Decompression. During this treatment, the spine is stretched and relaxed intermittently in a controlled manner, creating a negative
pressure in the disc area that can pull herniated or bulging tissue back into the disc. Whether caused by trauma or degeneration, we
realize the impact a spinal injury can have on the quality of one's life and are committed to providing the most innovative, minimally
invasive medical technology and care to relieve back pain and restore function.

 Chiropractic
Manipulation. Common for spine conditions, manual manipulation is used to increase range of motion, reduce nerve irritability
and improve function.

 FDA
Clinical Trial

 In
November 2017, we engaged a medical consulting group to advise us on current regenerative medicine therapy protocols and to organize
a clinical trial towards an investigational new drug application (IND) with the FDA, while pursuing a voluntary Regenerative Medicine
Advanced Therapy (RMAT) designation. This process is defined under Section 3033 of the 21st Century Cures Act. We intend to conduct an
investigator-initiated trial utilizing regenerative advancements to alleviate symptoms of debilitating, neurological conditions and diseases.
Stem cell therapy is emerging as a potentially revolutionary new way to treat disease and injury, with wide-ranging medical benefits.
It aims to repair damaged and diseased body parts with Healthy new cells provided by stem cell transplants.

 The
medical consulting group has assisted us in conducting research, establishing patient engagement tools and developing clinical strategies
to achieve the IND and RMAT. We executed a technology transfer agreement with a research university to license an FDA Phase I approved
mesenchymal stem cell drug candidate. We submitted an IND application with the FDA using this therapeutic product in May 2020, and the
FDA Office of Tissues and Advanced Therapies authorized the Phase I clinical trial in August 2020. IMAC physicians were trained to administer
treatments within IMAC facilities and the FDA approved opening enrollment for the trial in November 2020. The first enrollee was treated
in December 2020, utilizing umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson's
disease. The Phase 1 clinical trial consists of a 15-patient dose escalation safety and tolerability study. The trial is divided into
three groups: (1) five patients with bradykinesia due to Parkinson's disease received a low intravenous dose, (2) five patients
received a medium intravenous dose, (3) and five patients received a high intravenous dose. Each trial participant received an intravenous
infusion of stem cells and will be tracked for 12 months for data collection. The final patient was dosed on September 6, 2022.

 No
assurance can be given that the FDA will approve advancement beyond a Phase I study or the RMAT designation. We believe the RMAT designation
may be helpful in differentiating our services and gaining a broader collaborative connection with the FDA. Failure to earn the RMAT
designation will result in unfulfilled research expenses, but should not have a materially adverse effect on our operations or financial
condition.

 Protection
of Proprietary Information

 We
own various U.S. federal trademark registrations and applications, and unregistered trademarks, including the registered mark "IMAC
Regeneration Center." We rely on trademark laws in the United States, as well as confidentiality procedures and contractual provisions,
to protect our proprietary information and brand. We cannot assure you that existing trademark laws or contractual rights will be adequate
for protecting our intellectual property and proprietary information. Protection of confidential information, trade secrets and other
intellectual property rights in the markets in which we operate and compete is highly uncertain and may involve complex legal questions.
We cannot completely prevent the unauthorized use or infringement of our confidential information or intellectual property rights as
such prevention is inherently difficult. Costly and time-consuming litigation could be necessary to enforce and determine the scope of
our confidential information and intellectual property protection.

 We
are not aware of any claims of infringement or other challenges to our rights in our trademarks. We do not expect to need any additional
intellectual property rights to carry out our growth and expansion strategy.

 For
years ended December 31, 2023 and 2022, we did not incur any material time or labor for the development of the technology we use in our
operations.

 Government
Regulation

 Numerous
federal, state and local regulations regulate healthcare services and those who provide them. Some states into which we may expand have
laws requiring facilities employing health professionals and providing health-related services to be licensed and, in some cases, to
obtain a certificate of need (that is, demonstrating to a state regulatory authority the need for, and financial feasibility of, new
facilities or the commencement of new healthcare services). None of the states in which we currently operate require a certificate of
need for the operation of our physical therapy business functions. Our healthcare professionals and/or medical clinics, however, are
required to be licensed, as determined by the state in which they provide services. Failure to obtain or maintain any required certificates,
approvals or licenses could have a material adverse effect on our business, financial condition and results of operations.

 Regulations
Controlling Fraud and Abuse. Various federal and state laws regulate financial relationships involving providers of healthcare
services. These laws include Section 1128B(b) of the Social Security Act (42 U.S. C. § 1320a-7b(b)) (the "Fraud and Abuse
Law"), under which civil and criminal penalties can be imposed upon persons who, among other things, offer, solicit, pay or receive
remuneration in return for (i) the referral of patients for the rendering of any item or service for which payment may be made, in whole
or in part, by a Federal health care program (including Medicare and Medicaid); or (ii) purchasing, leasing, ordering, or arranging for
or recommending purchasing, leasing, ordering any good, facility, service, or item for which payment may be made, in whole or in part,
by a Federal health care program (including Medicare and Medicaid). We believe that our business procedures and business arrangements
are in compliance with these provisions. However, the provisions are broadly written and the full extent of their specific application
to specific facts and arrangements to which we are a party is uncertain and difficult to predict. In addition, several states have enacted
state laws similar to the Fraud and Abuse Law, which may be more restrictive than the federal Fraud and Abuse Law.

 Stark
Law. Provisions of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. §1395nn) (the "Stark Law") prohibit
referrals by a physician of "designated health services" which are payable, in whole or in part, by Medicare or Medicaid,
to an entity in which the physician or the physician's immediate family member has an investment interest or other financial relationship,
subject to several exceptions. Unlike the Fraud and Abuse Law, the Stark Law is a strict liability statute. Proof of intent to violate
the Stark Law is not required. Physical therapy services are among the "designated health services." Further, the Stark Law
has application to our management contracts with individual physicians and physician groups, as well as, any other financial relationship
between us and referring physicians, including medical advisor arrangements and any financial transaction resulting from a clinic acquisition.
The Stark Law also prohibits billing for services rendered pursuant to a prohibited referral. Several states have enacted laws similar
to the Stark Law. These state laws may cover all (not just Medicare and Medicaid) patients. As with the Fraud and Abuse Law, we consider
the Stark Law in planning our outpatient clinics, establishing contractual and other arrangements with physicians, marketing and other
activities, and believe that our operations are in substantial compliance with the Stark Law. If we violate the Stark Law or any similar
state laws, our financial results and operations could be adversely affected. Penalties for violations include denial of payment for
the services, significant civil monetary penalties, and exclusion from the Medicare and Medicaid programs.

 HIPAA.
 In an effort to further combat healthcare fraud and protect patient confidentially, Congress included several anti-fraud measures
in the Health Insurance Portability and Accountability Act of 1996 ("HIPAA"). HIPAA created a source of funding for fraud
control to coordinate federal, state and local healthcare law enforcement programs, conduct investigations, provide guidance to the healthcare
industry concerning fraudulent healthcare practices, and establish a national data bank to receive and report final adverse actions.
HIPAA also criminalized certain forms of health fraud against all public and private payers. Additionally, HIPAA mandates the adoption
of standards regarding the exchange of healthcare information in an effort to ensure the privacy and electronic security of patient information
and standards relating to the privacy of health information. Sanctions for failing to comply with HIPAA include criminal penalties and
civil sanctions. In February of 2009, the American Recovery and Reinvestment Act of 2009 ("ARRA") was signed into law. Title
XIII of ARRA, the Health Information Technology for Economic and Clinical Health Act ("HITECH"), provided for substantial
Medicare and Medicaid incentives for providers to adopt electronic health records ("EHRs") and grants for the development
of health information exchange ("HIE"). Recognizing that HIE and EHR systems will not be implemented unless the public can
be assured that the privacy and security of patient information in such systems is protected, HITECH also significantly expanded the
scope of the privacy and security requirements under HIPAA. Most notable are the mandatory breach notification requirements and a heightened
enforcement scheme that includes increased penalties, and which now apply to business associates as well as to covered entities. In addition
to HIPAA, a number of states have adopted laws and/or regulations applicable in the use and disclosure of individually identifiable health
information that can be more stringent than comparable provisions under HIPAA.

 We
believe that our operations comply with applicable standards for privacy and security of protected healthcare information. We cannot
predict what negative effect, if any, HIPAA/HITECH or any applicable state law or regulation will have on our business.

 Cybersecurity.
 We are a medical provider and comply with HIPAA and data sensitivity requirements as regulated by local and federal authorities.
Our patient data is hosted, managed and secured with an approved Electronic Medical Record vendor. Cybersecurity is of paramount importance
and our executive officers have implemented routine cyber breach insurance policies to protect our company from potential predatory initiatives
to access patient and company data. See "Risk Factors – Our reputation and relationships with patients would be harmed if
our patients' data, particularly personally identifying data, were to be subject to a cyber-attack or otherwise by unauthorized
persons."

 FDA
Drug Approval Process

 In
the United States, pharmaceutical products are subject to extensive regulation by the Food and Drug Administration (the "FDA").
The Federal Food, Drug, and Cosmetic Act ("FDC Act") and other federal and state statutes and regulations, govern, among
other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion and marketing, distribution,
post-approval monitoring and reporting, sampling and import and export of pharmaceutical products. Failure to comply with applicable
U.S. requirements may subject a company to a variety of administrative or judicial sanctions, such as FDA refusal to approve pending
new drug applications ("NDAs"), warning or untitled letters, product recalls, product seizures, total or partial suspension
of production or distribution, injunctions, fines, civil penalties and criminal prosecution. As a result of these regulations, pharmaceutical
product development and approval are very expensive and time consuming.

 Pharmaceutical
product development for a new product or certain changes to an approved product in the United States typically involves preclinical laboratory
and animal tests, the submission to the FDA of an investigational new drug ("IND"), which must become effective before clinical
testing may commence, and adequate and well-controlled clinical trials to establish the safety and effectiveness of the drug for each
indication for which FDA approval is sought. Satisfaction of FDA pre-market approval requirements typically takes many years and the
actual time required may vary substantially based upon the type, complexity and novelty of the product or disease.

 Clinical
trials to support NDAs for marketing approval are typically conducted in three sequential phases, but the phases may overlap. In Phase
1, the initial introduction of the drug into healthy human subjects or patients, the drug is tested to assess pharmacological actions,
side effects associated with increasing doses and, if possible, early evidence on effectiveness. For dermatology products, Phase 2 usually
involves trials in a limited patient population to determine metabolism, pharmacokinetics, the effectiveness of the drug for a particular
indication, dosage tolerance and optimum dosage, and to identify common adverse effects and safety risks. If a compound demonstrates
evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 clinical trials are undertaken to obtain the
additional information about clinical efficacy and safety in a larger number of patients, typically at geographically dispersed clinical
trial sites, to permit the FDA to evaluate the overall benefit-risk relationship of the drug and to provide adequate information for
the labeling of the drug. In most cases the FDA requires two adequate and well-controlled Phase 3 clinical trials with statistically
significant results to demonstrate the efficacy of the drug. A single Phase 3 clinical trial with other confirmatory evidence may be
sufficient in rare instances where the study is a large multicenter trial demonstrating internal consistency and a statistically very
persuasive finding of an effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious outcome and
confirmation of the result in a second trial would be practically or ethically impossible.

 After
completion of the required activities, including clinical testing, a NDA is prepared and submitted to the FDA. FDA approval of the NDA
is required before marketing of the product may begin in the United States.

 The
FDA also may refer applications for novel drug products, or drug products that present difficult questions of safety or efficacy, to
an advisory committee, typically a panel that includes clinicians and other experts, for review, evaluation and a recommendation as to
whether the application should be approved. The FDA is not bound by the recommendation of an advisory committee, but it generally follows
such recommendations. Before approving an NDA, the FDA will typically inspect one or more clinical sites to assure compliance with the
FDA's good clinical practice requirements. Additionally, the FDA typically inspects the facility or the facilities at which the
drug is manufactured and may inspect the sponsor company and investigator sites that participated in the clinical trials. The FDA will
not approve the product unless compliance with current good manufacturing practice ("cGMP") is satisfactory and the NDA contains
data that provide substantial evidence that the drug is safe and effective for the stated indication.

 After
the FDA evaluates the NDA and the manufacturing facilities, it issues either an approval letter or a complete response letter. A complete
response letter generally outlines the deficiencies in the submission and may require substantial additional testing, or information,
in order for the FDA to reconsider the application. If, or when, those deficiencies have been addressed to the FDA's satisfaction
following FDA review of a resubmission of the NDA, the FDA will issue an approval letter.

 An
approval letter authorizes commercial marketing of the drug with specific prescribing information for specific indications. As a condition
of NDA approval, the FDA may require a risk evaluation and mitigation strategy ("REMS"), to help ensure that the benefits
of the drug outweigh the potential risks. REMS can include medication guides, communication plans for healthcare professionals and elements
to assure safe use ("ETASU"). ETASU can include, but are not limited to, special training or certification for prescribing
or dispensing, dispensing only under certain circumstances, special monitoring and the use of patient registries. The requirement for
a REMS can materially affect the potential market and profitability of the drug. Moreover, product approval may require substantial post-approval
testing and surveillance to monitor the drug's safety or efficacy. Once granted, product approvals may be withdrawn if compliance
with regulatory standards is not maintained or problems are identified following initial marketing.

 Changes
to some of the conditions established in an approved application, including changes in indications, labeling, or manufacturing processes
or facilities, require submission and FDA approval of a new NDA or NDA supplement before the change can be implemented. An NDA supplement
for a new indication typically requires clinical data similar to that in the original application, and the FDA generally uses the same
procedures and actions in reviewing NDA supplements as it does in reviewing NDAs.

 Section
505(b)(2) New Drug Applications

 Most
drug products obtain FDA marketing approval pursuant to an NDA filed under section 505(b)(1) of the FDC Act. An alternative is a special
type of NDA, commonly referred to as a Section 505(b)(2) NDA ("505(b)(2) NDA"), which enables the applicant to rely, in part,
on the FDA's previous approval of a similar product, or published literature, in support of its application.

 505(b)(2)
NDAs often provide an alternate path to FDA approval for new or improved formulations or new uses of previously approved products. Section
505(b)(2) permits the filing of an NDA where at least some of the information required for approval comes from studies not conducted
by, or for, the applicant and for which the applicant has not obtained a right of reference. If the 505(b)(2) NDA applicant can establish
that reliance on the FDA's previous approval is scientifically appropriate, it may eliminate the need to conduct certain preclinical
or clinical studies of the new product. The FDA may also require companies to perform additional studies or measurements to support the
change from the approved product. The FDA may then approve the new product candidate for all, or some, of the label indications for which
the referenced product has been approved, as well as for any new indication sought by the Section 505(b)(2) NDA applicant.

 Biologics

 Biological
products used for the prevention, treatment or cure of a disease or condition of a human being are subject to regulation under the FDC
Act, except the section of the FDC Act which governs the approval of NDAs. Biological products are approved for marketing under provisions
of the Public Health Service Act ("PHSA"), via a Biologics License Application ("BLA"). However, the application
process and requirements for approval of BLAs and BLA supplements, including review timelines, are very similar to those for NDAs and
NDA supplements, and biologics are associated with similar approval risks and costs as other drugs.

 Post-Approval
Requirements

 Once
a NDA is approved, a product will be subject to certain post-approval requirements. For instance, the FDA closely regulates the post-approval
marketing and promotion of drugs, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored
scientific and educational activities and promotional activities involving the internet. Drugs may be marketed only for the approved
indications and in accordance with the provisions of the approved labeling.

 Adverse
event reporting and submission of periodic safety reports is required following FDA approval of a NDA. The FDA also may require post-marketing
testing, known as Phase 4 testing, REMS and surveillance to monitor the effects of an approved product, or the FDA may place conditions
on an approval that could restrict the distribution or use of the product. In addition, quality-control, drug manufacture, packaging
and labeling procedures must continue to conform to cGMPs after approval. Drug manufacturers and certain of their subcontractors are
required to register their establishments with the FDA and certain state agencies. Registration with the FDA subjects entities to periodic
unannounced inspections by the FDA, during which the agency inspects manufacturing facilities to assess compliance with cGMPs. Accordingly,
manufacturers must continue to expend time, money and effort in the areas of production and quality-control to maintain compliance with
cGMPs. Regulatory authorities may withdraw product approvals or request product recalls if a company fails to comply with regulatory
standards, if it encounters problems following initial marketing, or if previously unrecognized problems are subsequently discovered.

 Pediatric
Information

 Under
the Pediatric Research Equity Act, NDAs or supplements to NDAs must contain data to assess the safety and effectiveness of the drug for
the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation
for which the drug is safe and effective. The FDA may grant full or partial waivers, or deferrals, for submission of data.

 The
Best Pharmaceuticals for Children Act ("BPCA") provides NDA holders a six-month extension of any exclusivity, patent or non-patent,
for a drug if certain conditions are met. Conditions for exclusivity include the FDA's determination that information relating
to the use of a new drug in the pediatric population may produce health benefits in that population, the FDA making a written request
for pediatric studies and the applicant agreeing to perform, and reporting on, the requested studies within the statutory timeframe.
Applications under the BPCA are treated as priority applications, with all of the benefits that designation confers.

 Disclosure
of Clinical Trial Information

 Sponsors
of clinical trials of FDA-regulated products, including drugs, are required to register and disclose certain clinical trial information.
Information related to the product, patient population, phase of investigation, study sites and investigators and other aspects of the
clinical trial is then made public as part of the registration. Sponsors are also obligated to disclose the results of their clinical
trials after completion. Competitors may use this publicly available information to gain knowledge regarding the progress of our programs.

 Regenerative
Medicine Advanced Therapies (RMAT) Designation

 The
FDA has established a Regenerative Medicine Advanced Therapy ("RMAT") designation as part of its implementation of the 21st
Century Cures Act, or Cures Act. The RMAT designation program is intended to fulfill the Cures Act requirement that the FDA facilitate
an efficient development program for, and expedite review of, any drug that meets the following criteria: (1) it qualifies as a RMAT,
which is defined as a cell therapy, therapeutic tissue engineering product, human cell and tissue product, or any combination product
using such therapies or products, with limited exceptions; (2) it is intended to treat, modify, reverse, or cure a serious or life-threatening
disease or condition; and (3) preliminary clinical evidence indicates that the drug has the potential to address unmet medical needs
for such a disease or condition. Like breakthrough therapy designation, RMAT designation provides potential benefits that include more
frequent meetings with FDA to discuss the development plan for the product candidate, and eligibility for rolling review and priority
review. Products granted RMAT designation may also be eligible for accelerated approval on the basis of a surrogate or intermediate endpoint
reasonably likely to predict long-term clinical benefit, or reliance upon data obtained from a meaningful number of sites, including
through expansion to additional sites. RMAT-designated products that receive accelerated approval may, as appropriate, fulfill their
post-approval requirements through the submission of clinical evidence, clinical studies, patient registries, or other sources of real
world evidence (such as electronic health records); through the collection of larger confirmatory data sets; or via post-approval monitoring
of all patients treated with such therapy prior to approval of the therapy.

 Other
Regulatory Factors. Political, economic and regulatory influences are fundamentally changing the healthcare industry in the United
States. Congress, state legislatures and the private sector continue to review and assess alternative healthcare delivery and payment
systems. Potential alternative approaches could include mandated basic healthcare benefits, controls on healthcare spending through limitations
on the growth of private health insurance premiums and Medicare and Medicaid spending, the creation of large insurance purchasing groups,
and price controls. Legislative debate is expected to continue in the future and market forces are expected to demand only modest increases
or reduced costs. For instance, managed care entities are demanding lower reimbursement rates from healthcare providers and, in some
cases, are requiring or encouraging providers to accept capitated payments that may not allow providers to cover their full costs or
realize traditional levels of profitability. We cannot reasonably predict what impact the adoption of federal or state healthcare reform
measures or future private sector reform may have on our business.

 In
recent years, federal and state governments have launched several initiatives aimed at uncovering behavior that violates the federal
civil and criminal laws regarding false claims and fraudulent billing and coding practices. Such laws require providers to adhere to
complex reimbursement requirements regarding proper billing and coding in order to be compensated for their services by government payers.
Our compliance program requires adherence to applicable law and promotes reimbursement education and training; however, a determination
that our clinics' billing and coding practices are false or fraudulent could have a material adverse effect on us.

 As
a result of our participation in the Medicare and Medicaid programs, we are subject to various governmental inspections, reviews, audits
and investigations to verify our compliance with these programs and applicable laws and regulations. Managed care payers may also reserve
the right to conduct audits. An adverse inspection, review, audit or investigation could result in refunding amounts we have been paid;
fines penalties and/or revocation of billing privileges for the affected clinics; exclusion from participation in the Medicare or Medicaid
programs or one or more managed care payer network; or damage to our reputation.

 We
and our outpatient medical clinics are subject to federal and state laws prohibiting entities and individuals from knowingly and willfully
making claims to Medicare, Medicaid and other governmental programs and third-party payers that contain false or fraudulent information.
The federal False Claims Act encourages private individuals to file suits on behalf of the government against healthcare providers such
as us. As such suits are generally filed under seal with a court to allow the government adequate time to investigate and determine whether
it will intervene in the action, the implicated healthcare providers often are unaware of the suit until the government has made its
determination and the seal is lifted. Violations or alleged violations of such laws, and any related lawsuits, could result in (i) exclusion
from participation in Medicare, Medicaid and other federal healthcare programs, or (ii) significant financial or criminal sanctions,
resulting in the possibility of substantial financial penalties for small billing errors that are replicated in a large number of claims,
as each individual claim could be deemed a separate violation. In addition, many states also have enacted similar statutes, which may
include criminal penalties, substantial fines, and treble damages.

 Employees
and Human Capital Management

 As
of April 15, 2024, we employed 4 individuals, of which 2 were full-time employees. As of that date, none of our employees were governed
by collective bargaining agreements or were members of a union. We consider our relations with our employees to be good. We strive
for greater diversity and inclusion through our employment and management practices. Today, our full-time employees range in age from
41-62 years, 50% of our executive team is female, and 75% of our staff
is female. We remain further committed to increasing the diversity of our employee base.

 In
the states in which our outpatient clinics were located, persons performing designated medical or physical therapy services are required
to be licensed by the state. Based on standard employee screening systems in place, all persons currently employed by us who are required
to be licensed are licensed. We are not aware of any federal licensing requirements applicable to our employees.

 Medical
Advisory Board

 We
had a Medical Advisory Board comprised of all IMAC medical physicians. The Advisory Board met annually to discuss matters relating
to our therapies, range of medical treatments and strategic direction, and periodically presented its suggestions to our Board and to
executive management. Members of the Advisory Board were reimbursed by us for out-of-pocket expenses incurred in serving on the Advisory
Board.

 Business
Transactions

 Louisiana
Orthopaedic & Sports Rehab Institute. On January 27, 2023, the Company executed an agreement to sell all assets of IMAC of
Louisiana, PC and Louisiana Orthopaedic & Sports Rehab, LLC for a total of $1.05 million in cash. In addition, the deal included
the assignment of the associated real estate lease to the purchaser.

 Ricardo
Knight, PC. On April 4, 2023 the Company executed an agreement to sell all the assets of Ricardo Knight, PC.

 Advantage
Hand Therapy and Orthopedic Rehabilitation, LLC. During May of 2023, the Company closed operations at Springfield, MO, due to
significant staff departures and inflationary pressure on replacement personnel. Most assets were sold in June.

 IMAC
Regeneration Center of St. Louis, LLC. In October 2023, the assets of the St Louis location were sold and the lease was assumed
by JWB Healthcare, LLC.

 Integrated
Medicine and Chiropractic Regeneration Center PSC. In October 2023, the assets of the Murray location were sold and the lease
was assumed by two former employees. In November 2023, the assets were sold and the lease was assumed by The Regenerative Center.

 BackSpace.
 On March 1, 2023, the Company executed an agreement to sell The BackSpace, LLC to Curis Express, LLC. This sale eliminated IMAC
Holdings, Inc. retail chiropractic division. In addition, the deal included all associated real estate leases and the rights to certain
future potential expansion locations.

 Corporate
Information and Incorporation

 The
first IMAC Regeneration Center was organized in August 2000 as a Kentucky professional service corporation. That center was the forerunner
to our current business and remains our flagship location. Matthew C. Wallis, DC and Jason Brame, DC, together with Jeffrey S. Ervin,
became the founding members of IMAC Holdings, LLC, a Kentucky limited liability company organized in March 2015, to expand our management
team to support our clinical expansion while meeting the requirements of state healthcare practice guidelines and ownership laws.

 Our
consolidated financial statements include the accounts of IMAC Holdings, Inc. and the following entities which are consolidated due to
direct ownership of a controlling voting interest or other rights granted to us as the sole general partner or managing member of the
entity: IMAC Regeneration Center of St. Louis, LLC ("IMAC St. Louis"), IMAC Management Services, LLC ("IMAC Management"),
IMAC Regeneration Management, LLC ("IMAC Texas"), IMAC Regeneration Management of Nashville, LLC ("IMAC Nashville"),
IMAC Management of Illinois, LLC ("IMAC Illinois"), Advantage Hand Therapy and Orthopedic Rehabilitation, LLC ("Advantage
Therapy"), IMAC Management of Florida, LLC ("IMAC Florida"), Louisiana Orthopaedic & Sports Rehab ("IMAC
Louisiana") and The Back Space, LLC ("BackSpace"); the following entity which is consolidated with IMAC Regeneration
Management of Nashville, LLC due to control by contract: IMAC Regeneration Center of Nashville, PC ("IMAC Nashville PC");
the following entities which are consolidated with IMAC Management of Illinois, LLC due to control by contract: Progressive Health and
Rehabilitation, Ltd., Illinois Spine and Disc Institute, Ltd. and Ricardo Knight, P.C.; the following entities which are consolidated
with IMAC Management Services, LLC due to control by contract: Integrated Medicine and Chiropractic Regeneration Center PSC (Kentucky
PC) and IMAC Medical of Kentucky, PSC (Kentucky PSC); the following entities which are consolidated with IMAC Florida due to control
by contract: Willmitch Chiropractic, P.A. and IMAC Medical of Florida, P.A.; the following entity which is consolidated with Louisiana
Orthopaedic & Sports Rehab due to control by contract: IMAC Medical of Louisiana, a Medical Corporation; and the following entities
which are consolidated with BackSpace due to control by contract: ChiroMart LLC, ChiroMart Florida LLC, and ChiroMart Missouri LLC.

 Effective
June 1, 2018, IMAC Holdings converted into a Delaware corporation and we changed our name to IMAC Holdings, Inc., which is referred to
herein as the Corporate Conversion. In conjunction with the conversion, all of our outstanding membership interests were exchanged on
a proportional basis into shares of common stock.

 Our
principal executive offices are located at 3401 Mallory Lane, Suite 100, Franklin, Tennessee, 37067 and our telephone number is (844)
266-IMAC (4622). We maintain a corporate website at imacholdings.com.

 Available
Information

 We
file electronically with the Securities and Exchange Commission (the "SEC"), our annual reports on Form 10-K, quarterly reports
on Form 10-Q, and current reports on Form 8-K pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 ("Exchange
Act"). The public may read and copy any materials filed by us with the SEC at the SEC's Public Reference Room at 100 F Street,
NW, Washington, D.C. 20549. The public may obtain information on the operation of the SEC's Public Reference Room by calling the
SEC at 1-800-SEC-0330. The SEC maintains an Internet site ( www.sec.gov), which contains reports, proxy and information statements,
and other information regarding issuers that file electronically with the SEC.

 Our
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports are available
free of charge on our website at  as soon as reasonably practicable after such material is electronically
filed with, or furnished to, the SEC. Such reports will remain available on our website for at least 12 months and are also available
free of charge by written request or by contacting us at 844-266-4622.

 The
contents of our website or any other website are not incorporated by reference into this Annual Report.

 ITEM
 1A.

 RISK
 FACTORS

 In
addition to the information set forth at the beginning of this Form 10-K entitled "Cautionary Statement Regarding Forward-Looking
Statements," you should consider that there are numerous and varied risks, known and unknown, that may prevent us from achieving
our goals. If any of these risks actually occur, our business, financial condition or results of operation may be materially and adversely
affected. In such case, the trading price of our securities could decline and investors could lose all or part of their investment. These
risk factors may not identify all risks that we face and our operations could also be affected by factors that are not presently known
to us or that we currently consider to be immaterial to our operations.

 Risks
Relating to Our Company, Business and Industry

 We recorded a net loss for the year ended December
31, 2023 and December 31, 2022 and there can be no assurance that our future operations will result in net income; we received a going
concern qualification.

 For the year ended December 31,
2023 and December 31, 2022, we had net revenue from discontinued operations of approximately $5,197,000 and $16,186,000, respectively,
and we had net loss of approximately $9,419,000 and $18,313,000, respectively. There can be no assurance that our future operations will
result in net income. Our failure to increase our revenues or improve our gross margins will harm our business. We may not be able to
sustain or increase profitability on a quarterly or annual basis in the future. If our revenues grow more slowly than we anticipate, our
gross margins fail to improve or our operating expenses exceed our expectations, our operating results will suffer. The fee we charge
for our management services may decrease, which would reduce our revenues and harm our business. If we are unable to sell our services
at acceptable prices relative to our costs, or if we fail to develop and introduce new services on a timely basis and services from which
we can derive additional revenues, our financial results will suffer.

 As discussed in Note 3 to the
consolidated financial statements, the Company has suffered recurring losses from and net cash used in operations and has a net capital
deficiency and has discontinued its operations that raise substantial doubt about its ability to continue as a going concern.

 Acquisition-Related Risks. As
part of its growth strategy, the Company will seek to acquire or invest in complementary (including competitive) businesses, products
or technologies. Although the Company has identified potential acquisition candidates, it currently has no commitments or agreements with
respect to any such acquisitions or investments other than the Brain scientific Acquisition, and there can be no assurance that it will
eventually consummate the Brain Scientific acquisition or any other acquisition or investment. The process of integrating acquired assets
into the Company's operations may result in unforeseen operating difficulties and expenditures and may absorb significant management
attention that would otherwise be available for the ongoing development of the Company's business. In addition, the Company has
limited experience in performing acquisitions and managing growth. There can be no assurance that the anticipated benefits of any acquisition
will be realized. In addition, future acquisitions by the Company could result in potentially dilutive issuances of equity securities,
the incurrence of debt and contingent liabilities and amortization expenses related to goodwill and other intangible assets, any of which
could materially adversely affect the Company's operating results and financial position. In addition, acquisitions also involve
other risks, including risks inherent in entering markets in which the Company has no or limited prior experience and the potential loss
of key employees.

 Further,
because of our small size and limited operating history, our company is particularly susceptible to adverse effects from changes in the
law, economic conditions, consumer tastes, competition and other contingencies or events beyond our control. It may be more difficult
for us to prepare for and respond to these types of risks than it would be for a company with an established business and operating cash
flow. Due to changing circumstances or an inability to implement any portion of our growth strategy, we may be forced to dramatically
change our planned operations.

 We
have incurred significant losses since our inception. We expect to incur losses this year and may never achieve or maintain profitability.

 Our
recurring losses from operations raise substantial doubt regarding our ability to continue as a going concern.

 Our
future success depends on our ability to attract and retain qualified personnel, and changes in management may negatively affect our
business.

 We
have a need for additional funding. If we are unable to raise capital when needed, we could be forced to delay, reduce, or eliminate
our development.

 We
may form or seek strategic alliances in the future, and we may not realize the benefits of such alliances.

 We
have suffered a disruption of the operation of our business as a result of the outbreak of coronavirus in the United States. Closures
due to government orders or guidance and other related effects of the coronavirus pandemic may cause a material adverse effect on our
business.

 In
March 2020, federal, state and local government authorities issued orders and guidance in order to combat the spread of the coronavirus
pandemic. These actions have required or encouraged our patients to remain at home except for essential activities and may reduce patient
visits to our clinics. For example, the governor of Kentucky ordered all chiropractic facilities in the state of Kentucky to close effective
March 20, 2020, which caused us to close our Kentucky chiropractic facilities until such order was lifted on May 4, 2020. The full extent
and duration of such actions and their impacts over the longer term remain uncertain and dependent on future developments that cannot
be accurately predicted at this time, such as the severity and transmission rate of the coronavirus and the extent and effectiveness
of containment actions taken.

 The
coronavirus pandemic appears likely to cause significant economic harm across the United States, and the negative economic conditions
that may result in reduced patient demand in our industry. We may experience a material loss of patients and revenue as a result of the
suspension of any operations. Initiatives to implement telehealth engagement with patients may not be adopted by existing and new patients.
Patient habits may also be altered in the medium to long term. Negative economic conditions, a decrease in our revenue and consequent
longer-term trends harmful to our business may all exert pressure on our company during the pendency of emergency restrictions on our
operations and beyond. Due to such conditions, we terminated the employment of 11% of our employees on March 20, 2020, to reduce costs
associated with non-essential personnel.

 We
cannot predict with certainty when public health and economic conditions will return to normal. A decline in patient visits and/or the
possible suspension of operations mandated in response to the coronavirus, and the consequent loss of revenue and cash flow during this
period may make it difficult for us to obtain capital necessary to fund our operations.

 We
may fail completely to implement key elements of our growth and expansion strategy, which could adversely affect our operations and financial
performance.

 If
we cannot implement one or more key elements of our growth and expansion strategy, including raising sufficient capital, hiring and retaining
qualified staff, leasing and developing acceptable premises for our medical clinics, securing necessary service contracts on favorable
or adequate terms, generating sufficient revenue and achieving numerous other objectives, our projected financial performance may be
materially adversely affected. Even if all of the key elements of our growth and expansion strategy are successfully implemented, we
may not achieve the favorable results, operations and financial performance that we anticipate.

 We
may be unable to obtain financing on acceptable terms, or at all, which could materially adversely affect our operations and ability
to successfully implement our growth and expansion strategy.

 Our
growth strategy relies on obtaining sufficient financing, including one or more equipment lines to purchase medical and office equipment
and one or more lines of credit for operating and related expenses. We may not be able to obtain financing on acceptable terms or in
the amount anticipated by our growth and expansion strategy. If unable to secure the amount of financing anticipated by our growth and
expansion strategy, we may be unable to implement one or more portions of our growth and expansion strategy. If we accept less favorable
terms for our financing than anticipated, we may incur additional expenses and restrictions on operations and may be less liquid and
less profitable than expected. Should either of these events occur, we could suffer material adverse effects to our ability to implement
our growth and expansion strategy and operate successfully.

 We
may seek additional funding through a combination of equity offerings, debt financing, government or third-party funding, commercialization,
marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements. Additional funding
may not be available to us on acceptable terms or at all. In addition, the terms of any financing may adversely affect the holdings or
rights of the stockholders. Any new equity securities we issue could have rights, preferences, and privileges superior to those of holders
of our existing capital stock. In addition, the issuance of additional shares by us, or the possibility of such issuance, may cause the
market price of our shares to decline. Any debt financing secured by us in the future could involve restrictive covenants relating to
our capital-raising activities and other financial and operational matter, which may make it more difficult for us to obtain additional
capital and the pursue business opportunities.

 If
we are unable to obtain funding on a timely basis, we may be required to significantly curtail one or more of our efforts, our ability
to support our business growth and to respond to business challenges could be significantly limited, and we could be forced to halt operations.
Accordingly, our business may fail, in which case you would lose the entire amount of your investment in our common stock.

 Our
independent registered public accounting firm has indicated that our financial condition raises substantial doubt as to our ability to
continue as a going concern.

 Our consolidated financial statements
have been prepared assuming that we will continue to operate as a going concern, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. However, our independent registered public accounting firm has included
in its audit opinion for the year ended December 31, 2023 a statement that there is substantial doubt as to our ability to continue as
a going concern as a result of continued losses and financial condition at December 31, 2023, unless we are able to obtain additional
financing or enter into strategic alliances. The reaction of investors to the inclusion of a going concern statement by our auditors,
our current lack of cash resources and our potential inability to continue as a going concern may adversely affect our share price and
our ability to raise new capital or enter into strategic alliances. If we become unable to obtain additional capital and to continue as
a going concern, we may have to liquidate our assets and the values we receive for our assets in liquidation or dissolution could be significantly
lower than the values reflected in our financial statements.

 We
will manage, but will not own, certain of the medical clinics or employ the medical service providers who will treat patients at the
clinics.

 Several
of our medical clinics will be owned exclusively by a professional service corporation in order to comply with state laws regulating
the ownership of medical practices. We will, in turn, through a contractual arrangement, provide long-term, exclusive management services
to those professional service corporations and their medical professionals. All employees who provide direct medical services to patients
will be employed by the professional service corporation. These management services agreements protect us from certain liability and
provide a structured engagement to deliver non-medical, comprehensive management and administrative services to help the medical professionals
operate the business. The management services agreements authorize us to act on behalf of the professional service corporation, but do
not authorize the professional service corporations to act on our behalf or enter into contracts with third parties on our behalf. We
will employ the non-medical provider staff for the clinics and provide comprehensive management and administrative services to help the
professional service corporation operate the clinics. We may also loan money to the professional service corporation for certain payroll
and development costs, although we have no obligation to do so. This arrangement makes our financial and operational success highly dependent
on the professional service corporation. Under our management service agreements, we provide exclusive comprehensive management and related
administrative services to the professional service corporation and receive management fees. Due to this financial and operational control
by contract, our financial statements consolidate the financial results of the professional service corporations. However, we will have
little, if any, tangible assets as to those operations. These characteristics increase the risk associated with an investment in our
company.

 Our
management services agreements may be terminated.

 The
management services agreements we have with several of our clinics may be terminated by mutual agreement of us and the applicable clinic,
by a non-breaching party after 30 days following an uncured breach by the other party, upon a bankruptcy of either party or by us upon
90 days' prior written notice to the clinic. The termination of a management services agreement would result in the termination
of payment of management fees from the applicable clinic, which could have an adverse effect on our operating results and financial condition.

 We
do not control the delivery of medical care at any of our facilities.

 We
have no direct control over the medical care in any of our facilities. State medical boards govern the licensing and delivery of medical
care within a state. For this reason, the medical practitioners are solely responsible for making medical decisions with their abilities
and experience. We run the risk of being associated with a medical practitioner that performs poorly or does not comply with medical
board legislation. When we are responsible for the recruitment or staffing of medical professionals, we may hire a professional that
delivers care outside of medical protocols. Our inability to exercise control over the medical care and managed centers increases the
risks associated with an investment in our company.

 State
medical boards may amend licensing requirements for medical service providers, service delivery oversight for midlevel practitioners,
and ownership or location requirements for the delivery of medical treatments.

 We
have no direct control over the medical care in any of our facilities. State medical boards govern the licensing and delivery of medical
care within a state. Each state medical board controls the level of licensing required for each medical practitioner and the requirements
to obtain such a license to deliver medical care. Furthermore, the state medical board typically determines the required practitioner
oversight for medical practitioners based on their license achieved, earned degrees and continuing education. The current requirements
for these practitioners may change in the future and we run the risk of additional expenses necessary to meet the state medical board
requirements. The state medical board may also determine the location in which services are delivered. We risk the loss of revenue or
retrofitting expense if the state medical board amends location requirements for the delivery of certain treatments. Similarly, state
medical boards may amend ownership or management requirements for the operation of medical clinics within their respective state. The
board may also investigate or dispute the legal establishment of owned or managed medical clinics. We risk a material loss of ownership
of or management control and subsequent fee from medical clinics that are in our possession or control.

 Adverse
medical outcomes are possible with conservative and minimally invasive treatments.

 Medical
practitioners performing services at our IMAC facilities run the risk of delivering treatments for which the patient may experience a
poor outcome. This is possible with non-invasive and minimally invasive services alike, including the use of autologous treatments in
which a patient's own cells are used to regenerate damaged tissues. At our IMAC Regeneration Centers, a minimally invasive treatment
involves puncturing the skin with a needle or a minor incision which could lead to infection, bleeding, pain, nausea, or other similar
results. Non-invasive and conservative physical medicine treatments may possibly cause soft tissue tears, contusions, heart conditions,
stroke, and other physically straining conditions. The treatments or potential clinical research studies may yield further patient risks.
An adverse outcome may include but not be limited to a loss of feeling, chronic pain, long-term disability, or death. We have obtained
medical malpractice coverage in the event an adverse outcome occurs. However, the insurance limits may be exceeded or liability outside
of the coverage may adversely impact the financial performance of the business, including any potential negative media coverage on patient
volume.

 Potential
conflicts of interest exist with respect to the management services agreement that we have entered into concerning our clinics in Kentucky,
and it is possible our interests and the affiliated owners of those clinics may diverge.

 Our
medical clinics in Kentucky are held by a professional service corporation that is owned by Matthew C. Wallis, DC, our President, a director
and co-founder of our company, and Jason Brame, DC, a co-founding member of our company, in order to comply with the state's laws
regulating the ownership of medical practices. The professional service corporation directs the provision of medical services to patients
and employs the physicians and registered nurses at the clinics, we do not. Rather, pursuant to the terms of a long-term, exclusive management
services agreement, we employ the non-medical provider staff for the clinics and provide comprehensive management and administrative
services to help the professional service corporation operate the clinics. We believe that the service fees and other terms of our management
services agreement are standard in the outpatient healthcare practice area. Nonetheless, the management services agreement presents the
possibility of a conflict of interest in the event that issues arise with regard to the respective medical and non-medical services being
provided at the clinics, including quality of care issues of which we become aware and billing and collection matters that we handle
on behalf of the physician practices, where our interests may diverge from those of Drs. Wallis and Brame acting on behalf of the professional
service corporation. No such issues, however, have occurred during this arrangement.

 The
management services agreement provides that we will have the right to control the daily operations of the medical clinics subject, in
the case of practicing medicine, to the direction of Drs. Wallis and Brame acting on behalf of the professional service corporation.
Our interests with respect to such direction may be at odds with those of Drs. Wallis and Brame, requiring them to recuse themselves
from our decisions relating to such matters, or even from further involvement with our company.

 We
comply with applicable state law with respect to transactions (including business opportunities and management services agreements) involving
potential conflicts. Applicable state corporate law requires that all transactions involving our company and any director or executive
officer (or other entities with which they are affiliated) are subject to full disclosure and approval of the majority of the disinterested
independent members of our Board of Directors, approval of the majority of our stockholders or the determination that the contract or
transaction is intrinsically fair to us. More particularly, our policy is to have any related party transactions (i.e., transactions
involving a director, an officer or an affiliate of our company) be approved solely by a majority of the disinterested independent directors
serving on the Board of Directors.

 Drs.
Wallis and Brame are significant holders of our outstanding shares of common stock and we anticipate they will continue to own a significant
percentage of our outstanding shares. Dr. Wallis founded our original IMAC medical clinic in Paducah, Kentucky in August 2000 and, with
Jeffrey S. Ervin, our Chief Executive Officer, founded our current company in March 2015. Dr. Wallis, working with Mr. Ervin, will be
substantially responsible for selecting the business direction we take, the medical clinics we open in the future and the services we
may provide. The management services agreement may present Drs. Wallis and Brame with conflicts of interest.

 The
loss of the services of Jeffrey S. Ervin and Sheri F. Gardzina for any reason would materially and adversely affect our business
operations and prospects.

 Our
financial success is dependent to a significant degree upon the efforts of Jeffrey S. Ervin, our Chief Executive Officer and Sheri
F. Gardzina, our Chief Financial Officer. A voluntary or involuntary departure by Mr. Ervin and/or Mrs. Gardzina could have a
materially adverse effect on our business operations if we were not able to attract a qualified replacement for him in a timely
manner. We do not have a key-man life insurance policy for our benefit on the life of either Mr. Ervin or Mrs. Gardzina.

 We
will depend heavily on the efforts of our key personnel.

 Our
success depends, to a significant extent, upon the efforts and abilities of our officers and key employees. Loss or abatement of the services of any of these persons, could have a material adverse effect on us
and our business, operations and financial performance.

 Our
success also will depend on our ability to identify, attract, hire, train and motivate highly skilled managerial personnel. Failure to attract and retain key personnel could have a material
adverse effect on our business, prospects, financial condition and results of operation. Further, the quality, philosophy and performance
of key personnel could adversely affect our operations and performance.

 We
may fail to obtain the business licenses and any other licenses necessary to operate our medical clinics, or the necessary engineering,
building, occupancy and other permits to develop the premises for the clinics, which would materially adversely affect our growth and
expansion strategy.

 If
we cannot obtain approval for business licenses or any other licenses necessary to operate our medical clinics, it could materially adversely
affect our growth and expansion strategy and could result in a failure to implement our growth and expansion strategy. Failure to obtain
the necessary engineering, building, occupancy and other permits from applicable governmental authorities to develop the premises for
our medical clinics could also materially adversely affect our growth and expansion strategy and could result in a failure to implement
our growth and expansion strategy.

 We
may face strong competition from other providers in our primary service areas, and increased competition from new competitors, which
may hinder our ability to obtain and retain customers.

 We
will be in competition with other more established companies using a variety of treatments for the conditions and ailments that our services
are intended to treat, including orthopedic surgeons, pain management clinics, hospital systems and outpatient surgery centers providing
joint reconstruction and related surgeries. These companies may be better capitalized and have more established name recognition than
us. We may face additional competition in the future if other providers enter our primary service areas. Competition from existing providers
and providers that may begin competing with us in the future could materially adversely affect our operations and financial performance.

 Further,
the services provided by our company are relatively new and unique. We cannot be certain that our services will achieve or sustain market
acceptance, or that a sufficient volume of patients in the Florida, Illinois, Kentucky, Louisiana, Missouri and Tennessee areas will
utilize our services. We will be in competition with alternative treatment methods, including those presently existing and those that
may develop in the future. As such, our growth and expansion strategy carries many unknown factors that subject us and our investors
to a high degree of uncertainty and risk.

 We
are competing in a dynamic market with risk of technological change.

 The
market for medical, physical therapy and chiropractic services is characterized by frequent technological developments and innovations,
new product and service introductions, and evolving industry standards. The dynamic character of these products and services will require
us to effectively use leading and new technologies, develop our expertise and reputation, enhance our current service offerings and continue
to improve the effectiveness, feasibility and consistency of our services. There can be no assurance that we will be successful in responding
quickly, cost-effectively and sufficiently to these and other such developments.

 Our
success will depend largely upon general economic conditions and consumer acceptance in our primary service areas.

 Our
current primary service areas are located in certain geographical areas in the states of Florida, Illinois, Kentucky, Louisiana and Missouri.
Our operations and profitability could be adversely affected by a local economic downturn, changes in local consumer acceptance of our
approach to healthcare, and discretionary spending power, and other unforeseen or unexpected changes within those areas.

 We
are required to comply with numerous government laws and regulations, which could change, increasing costs and adversely affecting our
financial performance and operations.

 Medical
and chiropractic service providers are subject to extensive federal, state and local regulation, including but not limited to regulation
by the U.S. Food and Drug Administration, Centers for Medicare & Medicaid Services, and other government entities. We are subject
to regulation by these entities as well as a variety of other laws and regulations. Compliance with such laws and regulations could require
substantial capital expenditures. Such regulations may be changed from time to time, or new regulations adopted, which could result in
additional or unexpected costs of compliance.

 Changes
to national health insurance policy and third-party insurance carrier fee schedules for traditional medical treatments could decrease
patient revenue and adversely affect our financial performance and operations.

 Political,
economic and regulatory influences are subjecting medical and chiropractic service providers, health insurance providers and other participants
in the healthcare industry in the United States to potential fundamental changes. Potential changes to nationwide health insurance policy
are currently being debated. We cannot predict what impact the adoption of any federal or state healthcare reform or private sector insurance
reform may have on our business.

 We
receive payment for the services we render to patients from their private health insurance providers and from Medicare and Medicaid.
If third-party payers change the expected fee schedule (the amount paid by such payers for services rendered by us), we could experience
a loss of revenue, which could adversely affect financial performance.

 At
the present time, most private health insurance providers do not cover the regenerative medical treatments provided at our medical clinics.
However, traditional physical medical treatments provided at our medical clinics, such as physical therapy, chiropractic services and
medical evaluations, are covered by most health insurance providers. Medicare and Medicaid take the same position as private insurers
and reimburse patients for traditional physical medical treatments but not for regenerative medical treatments. If private health insurance
providers and Medicare and Medicaid were to begin covering regenerative medical treatments, the revenue we would receive on a per-treatment
basis would likely decline given their tighter fee schedules. Further, such a change might result in increased competition as additional
healthcare providers begin offering our customized services.

 We
could be adversely affected by changes relating to the IMAC Regeneration Center brand name.

 We
are a holding company in which our medical clinics are formed in separate subsidiaries. Our subsidiaries are currently operating in Florida,
Illinois, Kentucky, Louisiana and Missouri. As a consequence of this entity structure, any adverse change to the brand, reputation, financial
performance or other aspects of the IMAC Regeneration Center brand at any one location could adversely affect the operations and financial
performance of the entire company.

 We
may incur losses that are not covered by insurance.

 We
maintain insurance policies against professional liability, general commercial liability and other potential losses of our company.
All of the regenerative, medical, physical therapy and chiropractic treatments performed at our clinics are covered by our
malpractice insurance; however, there is an upper limit to the payout allowable in the event of our malpractice. Poor patient
outcomes for healthcare providers may result in legal actions and/or settlements outside of the scope of our malpractice insurance
coverage. Regenerative medicine represents approximately 2% of our patient visits and 9% of our discontinued revenue. Future
innovations in regenerative medicine may require review or approval of such innovations by governmental regulators. During formal
research studies performed in collaboration with regulators, we may be required to obtain new insurance policies and there is no
assurance that insurance policy underwriters will provide coverage for such research initiatives. If an uninsured loss or a loss in
excess of insured limits occurs, our financial performance and operation could suffer material adverse effects.

 We
are susceptible to risks relating to investigation or audit by the Centers for Medicare & Medicaid Services ("CMS"),
health insurance providers and the IRS.

 We
may be audited by CMS or any health insurance provider that pays us for services provided to patients. Any such audit may result in reclaimed
payments, which would decrease our revenue and adversely affect our financial performance. Our federal tax returns may be audited by
the IRS and our state tax returns may be audited by applicable state government authorities. Any such audit may result in the challenge
and disallowance of some of our deductions or an increase in our taxable income. No assurance can be made with regard to the deductibility
of certain tax items or the position taken by us on our tax returns. Further, an audit or any litigation resulting from an audit could
unexpectedly increase our expenses and adversely affect financial performance and operations.

 We
are subject to the possible repayment of a claimed CMS overpayment, but we cannot predict the outcome.

 On
April 15, 2021, the Company received notification from Covent Bridge Group, a Center for Medicare & Medicaid Services
("CMS") contractor, that they are recommending to CMS that the Company was overpaid in the amount of $2,921,868. This
amount represents a statistical extrapolation of $11,530 of charges from a sample of 40 claims for the periods February 2017 to
November 2020. On June 3, 2021, the Company received a request for payment from CMS in the amount of $2,918,472. The Company
began its own internal audit process and initiated the appropriate appeals. The Company received a notification dated September 30,
2021, from CMS that they "found the request to be favorable by reversing the extrapolation to actual". The Company
received a separate notification stating "the extrapolated overpayment was reduced to the actual overpayment amount for the
sampled denied claims $5,327.73," which had been paid as of December 31, 2021.

 On October 21, 2021, the Company received
notification from Covent Bridge Group, a Center for Medicare & Medicaid Services ("CMS") contractor, that they are
recommending to CMS that the Company was overpaid in the amount of $2,716,056.33. This amount represents a statistical extrapolation
of $6,791.33 of charges from a sample of 38 claims for the periods July 2017 to November 2020 for Progressive Health &
Rehabilitation, Ltd ("Progressive Health"). The Company entered into a management agreement with Progressive Health in
April 2019 and therefore liable for only a portion of the sampled claims. There were a total of 38 claims reviewed, 25 of these
claims were from the period prior to the management agreement with the Company and the remaining 13 claims were related to the
period that Progressive Health was managed by the Company. In December 2021, the Company received a request for payment from CMS in
the amount of $2,709,265. The Company has begun its own internal audit process and has initiated the appropriate appeals. The
Company submitted a redetermination request in March 2022, which was denied. The Company submitted a reconsideration request
February 27, 2023. On July 5, 2023, the Company received a reconsideration decision from the second appeal. The Qualified
Independent Contractor provided a "partially favorable" decision that medical necessity supported 15 of 38 appealed
claims. The Company filed a timely appeal and a hearing with an Administrative Law Judge was conducted November 29, 2023. The ALJ
decision received on February 7, 2024, failed to address appeal and partially favorable decision impact on the extrapolated charges.
The Company timely filed an appeal to Medicare Appeals Council on April 5, 2024.

 On May 17, 2022, the Company received notification
from Covent Bridge Group, a Center for Medicare & Medicaid Services ("CMS") contractor, that they are recommending to
CMS that the Company was overpaid in the amount of $492,086.22 related to Advantage Therapy. This amount represents a statistical extrapolation
of charges from a sample, the actual amount found to be overpaid was $10,420.22. On May 27, 2022 the Company received a request for payment
from CMS in the amount of $481,666.00. The Company has begun its own internal audit process and has initiated the appropriate appeals.
Prior to this May 2022 notification, CMS had implemented a pre-payment audit for Advantage Therapy. As of June 30, 2023, this audit had
resulted in a recoupment balance of approximately $0.1 million of Medicare accounts receivable. The Company submitted a reconsideration
request in May 2023. On August 4, 2023, the Company received a reconsideration decision from the second appeal. The Qualified Independent
Contractor provided a "partially favorable" decision supporting 31 of 65 appealed claims. The Company filed a timely appeal
and conducted a hearing with an Administrative Law Judge February 20, 2024 and awaits the response from the hearing. As of December 31,
2023, this audit had resulted in a recoupment balance of approximately $138,000 of Medicare accounts receivable which has been fully reserved.

 On December 9, 2022, the Company
received a suspension of payment notification from Covent Bridge Group, a Center for Medicare & Medicaid Services contractor, for
IMAC Regeneration Center of Kentucky. On December 22, 2022, the Company responded to the payment suspension with a Rebuttal of Notice.
The suspension of payment will remain in effect until the Rebuttal of Notice is answered. The Company provided medical records for 10
beneficiaries. Neither CMS nor Covent Bridge has responded to the Company regarding the records, although they initiated the Kepro audit
noted in the following paragraph. As of December 31, 2023, the payment suspension resulted in a recoupment balance of approximately $90,000
of Medicare accounts receivable which has been fully reserved.

 On October 2, 2023 the Company received notice from
Kepro, "Initial Sanction Notice of Failure in a Substantial Number of Cases". Kepro has recommended a Corrective Action Plan
(CAP). (i) Perform a root cause analysis (RCA) and describe the underlying cause of the failure. Submit a copy of the RCA performed. (ii)
Identify goals (desired outcomes) of the CAP. These goals must be measurable-containing a numerator and denominator-attainable, and meaningful.
(iii) Explain how the process(es) will be created or modified to correct the underlying root cause. (iv) Explain how the process(es) will
be implemented, including time frames for implementation. (v) Explain how the implemented process(es) and outcomes will be monitored and
reported. (vi) Identify the person who will be responsible for monitoring the CAP's specified time frame. The Company intends on
complying with the recommendations of the CAP. In addition, after further review, the Company will appeal the recommendation and outcomes
of the audit by Kepro. A meeting with Kepro was conducted on November 20, 2023 to review findings, CAP, and appeal of findings. The meeting
resulted in a CAP and communication to medical providers regarding the audit. There is no financial recoupment request.

 Other smaller denials the Company is appealing aggregate approximately $25,000 as of December 31, 2023.

 The Food and Drug administration has pursued
bad actors in the regenerative medicine therapy industry, and we could be included in any broad investigation.

 The U.S. Food and Drug Administration
has pursued bad actors in the regenerative medicine therapy industry. Since we provide regenerative medicine treatments, we may be subject
to broad investigations from the FDA or state medical boards regarding the marketing and medical delivery of our treatments. In November
2017, we engaged a medical consulting group to advise us on current protocols in this area and to organize a clinical trial towards an
investigational new drug application with the FDA, while pursuing a voluntary regenerative medicine advanced therapy (RMAT) designation
under Section 3033 of the 21 st Century Cures Act.

 We
depend on enrollment of patients in our clinical trials for our product candidates. If we experience delays or difficulties enrolling
in our clinical trials, our research and development efforts and business, financial condition, and results of operations could be materially
adversely affected.

 Successful
and timely completion of the clinical trial will require that we enroll a sufficient number of patient candidates. This trial and other
trials we may conduct may be subject to delays for a variety of reasons, including as a result of patient enrollment taking longer than
anticipated, patient withdrawal or adverse events. These types of developments could cause us to delay the trial or halt further development.

 Our
clinical trial will compete with other clinical trials that are in the same therapeutic areas as our product candidates, and this competition
reduces the number and types of patients available to us, as some patients who might have opted to enroll in our trials may instead opt
to enroll in a trial being conducted by one of our competitors. In addition, there may be limited patient pools from which to draw for
clinical studies. In addition to the rarity of some diseases, the eligibility criteria of our clinical studies will further limit the
pool of available study participants as we will require that patients have specific characteristics that we can measure or to assure
their disease is either severe enough or not too advanced to include them in a study. Patient enrollment depends on many factors, including:

 the
 size and nature of the patient population;

 the
 severity of the disease under investigation;

 eligibility
 criteria for the trial;

 the
 proximity of patients to clinical sites;

 the
 design of the clinical protocol;

 the
 ability to obtain and maintain patient consents;

 the
 ability to recruit clinical trial investigators with the appropriate competencies and experience;

 the
 risk that patients enrolled in clinical trials will drop out of the trials before the administration of our product candidates or
 trial completion;

 the
 availability of competing clinical trials;

 the
 availability of new drugs approved for the indication the clinical trial is investigating; and

 clinicians'
 and patients' perceptions as to the potential advantages of the drug being studied in relation to other available therapies.

 These
factors may make it difficult for us to enroll enough patients to complete our clinical trial in a timely and cost-effective manner.
In addition, our clinical trial has experienced, and continues to experience, some delays in patient enrollment as a result of the COVID-19
pandemic, as some clinical sites in high impact areas have delayed new patient enrollment as dictated by local conditions. Such delays
have impacted and could further adversely affect the expected timelines for our product development and approval process and may adversely
affect our business, financial condition and results of operations. Delays in the completion of any clinical trial increases our costs.

 We
rely on Contract Research Organizations ("CROs") to conduct our preclinical studies and clinical trials. If these third parties
do not successfully carry out their contractual duties or meet expected deadlines, we may be delayed in completing this phase of the
clinical trial.

 We
have relied and will continue to rely on CROs for the execution of our preclinical and clinical studies and monitor and manage data for
our clinical programs. We control only certain aspects of our CROs' activities, but we are responsible for ensuring that each of
our studies is conducted in accordance with the applicable protocol and legal, regulatory and scientific standards. Our reliance on the
CROs does not relieve us of these regulatory responsibilities. We and our CROs are required to comply with the FDA's regulations,
which are regulations and guidelines enforced by the FDA and comparable regulatory authorities meant to protect the rights and health
of clinical trial subjects. The FDA and comparable regulatory authorities enforce their regulations through periodic inspections of trial
sponsors, principal investigators and clinical trial sites. If we or our CROs fail to comply with applicable good clinical practices
("GCPs"), the clinical data generated in our clinical trials may be deemed unreliable, and the FDA (or similar foreign authorities)
may require us to perform additional clinical trials before approving our product candidates. We cannot assure you that, upon inspection,
the FDA (or similar foreign authorities) will determine that any of our clinical trials comply with GCPs.

 In
addition, our CROs are not our employees, and we cannot control whether or not they devote sufficient time and resources to our non-clinical,
preclinical or clinical programs. Our CROs may also have relationships with other commercial entities, including our competitors, for
whom they may also be conducting clinical studies or other drug development activities, which could impede their ability to devote appropriate
time to our clinical programs. If our CROs do not successfully carry out their contractual duties or obligations or meet expected deadlines,
if they need to be replaced, or if the quality or accuracy of the clinical data they obtain is compromised due to the failure to adhere
to our clinical protocols or regulatory requirements, or for other reasons, our clinical trials may be extended, delayed or terminated.
As a result, our financial results and the commercial prospects for the clinical trial would be harmed, our costs could increase and
our ability to generate revenues could be delayed or ended.

 If
any of our relationships with these CROs change or terminate, we may not be able to enter into arrangements with alternative CROs or
clinical study management organizations, or be able to do so on commercially reasonable terms. Switching or adding additional CROs or
other clinical study management organizations involves additional cost and requires management time and focus. In addition, there is
a natural transition period when a new CRO or clinical study management organization commences work. As a result, delays could occur,
which could compromise our ability to meet our desired development timelines.

 We
have no experience as a company in bringing a drug to regulatory approval.

 As
a company, we have never obtained regulatory approval for, or commercialized, a drug or biologic. It is possible that the FDA may refuse
to accept any or all of our planned BLAs for substantive review or may conclude after review of our data that our application is insufficient
to obtain regulatory approval of any product candidate. If the FDA does not accept or approve any or all of our planned BLAs, it may
require that we conduct additional preclinical, clinical or manufacturing validation studies, which may be costly, and submit that data
before it will reconsider our applications. Depending on the extent of these or any other FDA required studies, approval of any BLA or
application that we submit may be significantly delayed, possibly for several years, or may require us to expend more resources than
we have available.

 We
may be subject, directly or indirectly, to foreign, federal and state healthcare laws, including applicable anti-kickback, fraud and
abuse and other healthcare laws and regulations, which could expose us to criminal sanctions, civil penalties, contractual damages, reputational
harm and diminished profits and future earnings.

 Healthcare
providers, physicians and third-party payors play a primary role in the recommendation and prescription of any product candidates for
which we obtain marketing approval. Our business operations and current and future arrangements with third-party payors, healthcare providers
and customers may expose us to broadly applicable fraud and abuse and other healthcare laws and regulations that may constrain the business
or financial arrangements and relationships through which we research, develop, market, sell and distribute our products for which we
obtain marketing approval. Restrictions under applicable federal and state healthcare laws and regulations include the following:

 the
 federal healthcare Anti-Kickback Statute prohibits, among other things, persons from knowingly and willfully soliciting, offering,
 receiving or providing remuneration, directly or indirectly, in cash or in kind, to induce or reward either the referral of an individual
 for, or the purchase, order or recommendation of, any good or service, for which payment may be made under federal and state healthcare
 programs such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the federal Anti-Kickback Statute
 or specific intent to violate it to have committed a violation;

 the
 federal False Claims Act imposes criminal and civil penalties, including through civil whistleblower or qui tam actions, against
 individuals or entities for knowingly presenting, or causing to be presented, to the federal government, claims for payment that
 are false or fraudulent or making a false statement to avoid, decrease or conceal an obligation to pay money to the federal government.
 In addition, the government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback
 Statute constitutes a false or fraudulent claim for purposes of the False Claims Act;

 HIPAA,
 as amended by the Health Information Technology for Economic and Clinical Health Act, imposes criminal and civil liability for executing
 a scheme to defraud any healthcare benefit program;

 the
 federal false statements statute prohibits knowingly and willfully falsifying, concealing or covering up a material fact or making
 any materially false statement in connection with the delivery of or payment for healthcare benefits, items or services. Similar
 to the federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge of the statute or specific intent
 to violate it to have committed a violation;

 the
 federal transparency requirements under the ACA requires certain manufacturers of drugs, devices, biologics and medical supplies
 for which payment is available under Medicare, Medicaid or the Children's Health Insurance Program (with certain exceptions)
 to report to the Department of Health and Human Services information related to physician payments and other transfers of value and
 ownership and investment interests held by physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors),
 certain non-physician practitioners (physician assistants, nurse practitioners, clinical nurse specialists, certified nurse anesthetists,
 anesthesiologist assistants and certified nurse midwives), and their immediate family members and payments or other transfers of
 value made to such physician owners;

 analogous
 state laws and regulations, such as state anti-kickback and false claims laws, and transparency laws, may apply to sales or marketing
 arrangements and claims involving healthcare items or services reimbursed by non-governmental third-party payors, including private
 insurers, and some state laws require pharmaceutical companies to comply with the pharmaceutical industry's voluntary compliance
 guidelines and the relevant compliance guidance promulgated by the federal government in addition to requiring drug manufacturers
 to report information related to payments to physicians and other health care providers or marketing expenditures and pricing information;
 and

 efforts
 to ensure that our business arrangements with third parties will comply with applicable healthcare laws and regulations will involve
 substantial costs. It is possible that governmental authorities will conclude that our business practices may not comply with current
 or future statutes, regulations or case law involving applicable fraud and abuse or other healthcare laws and regulations. If our
 operations are found to be in violation of any of these laws or any other governmental regulations that may apply to us, we may be
 subject to significant civil, criminal and administrative penalties, damages, fines, exclusion from government funded healthcare
 programs, such as Medicare and Medicaid, additional reporting obligations and oversight if we become subject to a corporate integrity
 agreement or other agreement to resolve allegations of non-compliance with these laws, imprisonment and the curtailment or restructuring
 of our operations. Further, defending against any such actions, even if successful, can be costly, time-consuming and may require
 significant personnel resources. If any of the physicians or other providers or entities with whom we expect to do business are found
 to be not in compliance with applicable laws, they may be subject to criminal, civil or administrative sanctions, including exclusions
 from government funded healthcare programs.

 Any
significant disruption in our computer systems or those of third parties that we utilize in our operations could result in a loss or
degradation of service and could adversely impact our business.

 Our
reputation and ability to attract, retain and serve our patients and users is dependent upon the reliable performance of our computer
systems and those of third parties that we utilize in our operations. These systems may be subject to damage or interruption from earthquakes,
adverse weather conditions, other natural disasters, terrorist attacks, power loss, telecommunications failures, computer viruses, computer
denial of service attacks or other attempts to harm these systems. Interruptions in these systems, or to the internet in general, could
make our service unavailable or impair our ability to deliver content to our customers. Service interruptions, errors in our software
or the unavailability of computer systems used in our operations could diminish the overall attractiveness of our services to existing
and potential patients. In addition, during the second half of 2019, we began the implementation of an updated medical and financial
platform in our clinics.

 Our
servers and those of third parties we use in our operations are vulnerable to computer viruses, physical or electronic break-ins and
similar disruptions and periodically experience directed attacks intended to lead to interruptions and delays in our service and operations
as well as loss, misuse or theft of data. Any attempt by hackers to disrupt our service or otherwise access our systems, if successful,
could harm our business, be expensive to remedy and damage our reputation. We have implemented certain systems and processes to thwart
hackers and, to date, hackers have not had a material impact on our service or systems. However, this is no assurance that hackers may
not be successful in the future. Efforts to prevent hackers from disrupting our service or otherwise accessing our systems are expensive
to implement and may limit the functionality of or otherwise negatively impact our service offering and systems. Any significant disruption
to our service or access to our systems could result in a loss of patients and adversely affect our business and results of operation.

 We
utilize our own communications and computer hardware systems located either in our facilities or in that of a third-party data center.
In addition, we utilize third-party internet-based or "cloud" computing services in connection with our business operations.
We also utilize third-party content delivery networks to help us stream content to our patients and other parties over the internet.
Problems faced by us or our service providers, including technological or business-related disruptions, could adversely impact the experience
of our audiences and users.

 During
the normal course of business, we may choose to pursue services with a different third-party vendor or pursue a change in systems which
could result in interruptions and delays in our service and operations as well as loss, misuse, or theft of data. We have implemented
systems and processes to mitigate these risks and, to date, have not experienced a material impact on our services or systems due to
change in systems or third-party. However, this is no assurance that a change in systems or services used by us or a change in third-party
vendors may not have a material impact in the future. Any significant disruption to our service or access to our systems could result
in a loss of patients and adversely affect our business and results of operations.

 Our
reputation and relationships with patients would be harmed if our patients' data, particularly personally identifying data, were
to be subject to a cyber-attack or otherwise accessed by unauthorized persons.

 We
maintain personal data regarding our patients, including their names and other information. With respect to personally identifying data,
we rely on licensed encryption and authentication technology to secure such information. We also take measures to protect against unauthorized
intrusion into our patients' data. Despite these measures, we could experience, though we have not to date experienced, a cyber-attack
or other unauthorized intrusion into our patients' data. Our security measures could also be breached due to employee error, malfeasance,
system errors or vulnerabilities, or otherwise. In the event our security measures are breached, or if our services are subject to attacks
that impair or deny the ability of patients to access our services, current and potential patients may become unwilling to provide us
the information necessary for them to become users of our services or may curtail or stop using our services. In addition, we could face
legal claims for such a breach. The costs relating to any data breach could be material and exceed the limits of the insurance we maintain
against the risks of a data breach. For these reasons, should an unauthorized intrusion into our patients' data occur, our business
could be adversely affected. Changes to operating rules could increase our operating expenses and adversely affect our business and results
of operations.

 Changes
in accounting principles or guidance, or in their interpretations, could result in unfavorable accounting charges or effects, including
changes to our previously filed consolidated financial statements, which could cause our stock price to decline.

 We
prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America.
These principles are subject to interpretation by the SEC and various bodies formed to interpret and create appropriate accounting principles
and guidance. A change in these principles or guidance, or in their interpretations, may have a significant negative effect on our reported
results and retrospectively affect previously reported results, which, in turn, could cause our stock price to decline.

 Our
management has identified material weaknesses in our internal controls over our financial reporting.

 Our
Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are not effective because of certain
material weaknesses in our internal control over financial reporting. The material weaknesses relates to the absence of in-house accounting
personnel with the ability to properly account for complex transactions and the lack of separation of duties between accounting and other
functions.

 We
anticipate expanding our accounting functions with dedicated staff and improving our internal accounting procedures and separation of
duties when we can absorb the costs of such expansion and improvement with additional capital resources. In the meantime, management
will continue to observe and assess our internal accounting function and make necessary improvements whenever they may be required. If
our remedial measures are insufficient to address the material weakness, or if additional material weaknesses or significant deficiencies
in our internal control over financial reporting are discovered or occur in the future, our consolidated financial statements may contain
material misstatements, and we could be required to restate our financial results. In addition, if we are unable to successfully remediate
this material weakness and if we are unable to produce accurate and timely financial statements, our stock price may be adversely affected
and we may be unable to maintain compliance with applicable stock exchange listing requirements.

 We
are an "emerging growth company" and our election to delay adoption of new or revised accounting standards applicable to
public companies may result in our consolidated financial statements not being comparable to those of some other public companies. As
a result of this and other reduced disclosure requirements applicable to emerging growth companies, our securities may be less attractive
to investors.

 As
a public reporting company with less than $1.07 billion in revenue during our last fiscal year, we qualify as an "emerging growth
company" under the JOBS Act. An emerging growth company may take advantage of specified reduced reporting requirements that are
otherwise generally applicable to public companies. In particular, as an emerging growth company, we:

 are
 not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over
 financial reporting pursuant to the Sarbanes-Oxley Act;

 are
 not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing
 how those elements fit with our principles and objectives (commonly referred to as "compensation discussion and analysis");

 are
 not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements
 (commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute" votes);

 are
 exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

 may
 present only two years of audited financial statements and only two years of related Management's Discussion & Analysis
 of Financial Condition and Results of Operations, or MD and

 are
 eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the
 JOBS Act.

 We
intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the
adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may
make it difficult to compare our consolidated financial statements to those of non-emerging growth companies and other emerging growth
companies that have opted out of the phase-in periods under §107 of the JOBS Act.

 Certain
of these reduced reporting requirements and exemptions were already available to us due to the fact that we also qualify as a "smaller
reporting company" under SEC rules. For instance, smaller reporting companies are not required to obtain an auditor attestation
and report regarding management's assessment of internal control over financial reporting, are not required to provide a compensation
discussion and analysis, are not required to provide a pay-for-performance graph or CEO pay ratio disclosure, and may present only two
years of audited financial statements and related MD&A disclosure.

 Under
the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our
initial sale of common equity pursuant to a registration statement declared effective under the Securities Act, or such earlier time
that we no longer meet the definition of an emerging growth company. In this regard, the JOBS Act provides that we would cease to be
an "emerging growth company" if we have more than $1.07 billion in annual revenue, have more than $700 million in market
value of our common stock held by non-affiliates, or issue more than $1.0 billion in principal amount of non-convertible debt over a
three-year period. Under current SEC rules, however, we will continue to qualify as a "smaller reporting company" for so
long as we have a public float ( i.e., the market value of common equity held by non-affiliates) of less than $250 million as of
the last business day of our most recently completed second fiscal quarter.

 Risks
Relating to Ownership of Our Common Stock

 Our
stock price is volatile and an investment could decline in value.

 The
market price of our common stock fluctuates substantially as a result of many factors, some of which are beyond our control. During
the 52-week period prior to the filing of this Annual Report, the market price of our common stock ranged from a low of $1.22 per
share to a high of $10.62 per share, and as of April 11, 2024, was $3.27 per share. These fluctuations could cause you to lose
all or part of the value of your investment in our common stock and/or warrants. Factors that could cause fluctuations in the market
price of our common stock include the following:

 quarterly
 variations in our results of operations;

 results
 of operations that vary from the expectations of securities analysts and investors;

 results
 of operations that vary from those of our competitors;

 changes
 in expectations as to our future financial performance, including financial estimates by securities analysts;

 publication
 of research reports about us or the outpatient medical clinic business;

 announcements
 by us or our competitors of significant contracts, acquisitions or capital commitments;

 announcements
 by third parties of significant claims or proceedings against us;

 changes
 affecting the availability of financing in the outpatient medical services market;

 regulatory
 developments in the outpatient medical clinic business;

 significant
 future sales of our common stock;

 additions
 or departures of key personnel;

 the
 realization of any of the other risk factors presented in this prospectus; and

 general
 economic, market and currency factors and conditions unrelated to our performance.

 In
addition, the stock market in general has experienced significant price and volume fluctuations that have often been unrelated or disproportionate
to operating performance of individual companies. These broad market factors may seriously harm the market price of our common stock,
regardless of our operating performance. In the past, following periods of volatility in the market price of a company's securities,
securities class action litigation has often been instituted. A class action suit against us could result in significant liabilities
and, regardless of the outcome, could result in substantial costs and the diversion of our management's attention and resources.

 Our
stock price was below $1.00 per share and was subject to delisting from The Nasdaq Capital Market.

 Our
common stock closed below the required minimum $1.00 per share for 30 consecutive business days and we received a deficiency notice from
Nasdaq regarding our failure to comply with Nasdaq Marketplace Rule 5550(a)(2) on September 21, 2022. When the notice was received, pursuant
to Marketplace Rule 5810(c)(3)(A), we become subject to a period of 180 calendar days to regain compliance with Rule 5550(a)(2). If at
any time the bid price of our common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, we will regain
compliance with Rule 5550(a)(2). We did not regain compliance with Rule 5550(a)(2) prior to the expiration of the Nasdaq compliance period.
We appealed the delisting determination to a Nasdaq hearing panel and the panel stayed the delisting. The Company received an extension
through September 18, 2023. Effective September 7, 2023, the Company implemented a 30-for-1 stock split of the issued and outstanding
shares of common stock. Under the reverse split, every thirty shares of outstanding shares issued and outstanding were automatically
converted into one share of ordinary share, with a par value of $0.001 each.

 Our stockholders'
equity is below $2,500,000, and if it continues, our common stock may be subject to delisting from The Nasdaq Capital Market.

 On
May 31, 2023, the Company received notice from Nasdaq that the Company has failed to maintain a required minimum of $2,500,000 in stockholders'
equity for continued listing, as required under Listing Rule 5550(b)(1) (the "Minimum Equity Rule"). On August 3, 2023, the
Company submitted a plan to Nasdaq to grant the Company an extension of time until November 27, 2023 to provide evidence of compliance
with the Minimum Equity Rule, and by filing this Current Report on Form 8-K, which includes (1) disclosure of Nasdaq's deficiency
letter and the specific deficiency or deficiencies cited; (2) a description of the completed transaction or event that enabled the Company
to satisfy the stockholders' equity requirement for continued listing; (3) an affirmative statement that, as of the date of the
report, the Company believes it has regained compliance with the stockholders' equity requirement based upon the specific transaction
or event referenced in item (2) above; and (4) a disclosure stating that Nasdaq will continue to monitor the Company's ongoing compliance
with the stockholders' equity requirement and, if at the time of its next periodic report the Company does not evidence compliance,
that it may be subject to delisting. The Company attended a Nasdaq Listing Hearing on February 20, 2024. Nasdaq agreed to extend the Company's listing
based on specific conditions for continued listing.

 Our
ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.

 We
may experience ownership changes in the future as a result of subsequent shifts in our stock ownership. Thus, our ability to utilize
carryforwards of our net operating losses and other tax attributes to reduce future tax liabilities may be substantially restricted.
Further, U.S. tax laws limit the time during which these carryforwards may be applied against future taxes. Therefore, we may not be
able to take full advantage of these carryforwards for federal or state tax purposes. As of December 31, 2023, we had federal and state
net operating loss carryforwards of approximately $45.3 million and $46.6 million, respectively.

 If
securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they
change their recommendations regarding our stock adversely, or if our actual results differ significantly from our guidance, our stock
price and trading volume could decline.

 The
trading market for our common stock will be influenced by the research and reports that industry or securities analysts may publish about
us, our business, our market or our competitors. If any of the analysts who may cover us change their recommendation regarding our stock
adversely, or provide more favorable relative recommendations about our competitors, our stock price would likely decline. If any analyst
who may cover us were to cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial
markets, which in turn could cause our stock price or trading volume to decline.

 In
addition, from time to time, we may release earnings guidance or other forward-looking statements in our earnings releases, earnings
conference calls or otherwise regarding our future performance that represent our management's estimates as of the date of release.
Some or all of the assumptions of any future guidance that we furnish may not materialize or may vary significantly from actual future
results. Any failure to meet guidance or analysts' expectations could have a material adverse effect on the trading price or volume
of our stock.

 Anti-takeover
provisions in our charter documents could discourage, delay or prevent a change in control of our company and may affect the trading
price of our common stock.

 Our
corporate documents and the Delaware General Corporation Law contain provisions that may enable our board of directors to resist a change
in control of our company even if a change in control were to be considered favorable by you and other stockholders. These provisions:

 authorize
 the issuance of "blank check" preferred stock that could be issued by our board of directors to help defend against a
 takeover attempt;

 establish
 advance notice requirements for nominating directors and proposing matters to be voted on by stockholders at stockholder meetings;

 provide
 that stockholders are only entitled to call a special meeting upon written request by 33 1 / 3 % of the outstanding
 common stock; and

 require
 supermajority stockholder voting to effect certain amendments to our certificate of incorporation and bylaws.

 In
addition, Delaware law prohibits large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging
or consolidating with us except under certain circumstances. These provisions and other provisions under Delaware law could discourage,
delay or prevent a transaction involving a change in control of our company. These provisions could also discourage proxy contests and
make it more difficult for you and other stockholders to elect directors of your choosing and cause us to take other corporate actions
you desire.

 We
have 5,000,000 authorized and 4,995,450 unissued shares of preferred stock, and our board has the ability to designate the rights and
preferences of this preferred stock without your vote.

 Our
certificate of incorporation authorizes our board of directors to issue "blank check" preferred stock and to fix the rights,
preferences, privileges and restrictions, including voting rights, of these shares, without further stockholder approval. The rights
of the holders of common stock will be subject to and may be adversely affected by the rights of holders of any preferred stock that
may be issued in the future. As indicated in the preceding risk factor, the ability to issue preferred stock without stockholder approval
could have the effect of making it more difficult for a third party to acquire a majority of the voting stock of our company thereby
discouraging, delaying or preventing a change in control of our company. We currently have 4,550 outstanding shares of preferred stock.

 On
July 25, 2023, the Company entered into a definitive Securities Purchase Agreement with several institutional and accredited investors,
including existing significant investors of Theralink Technologies, Inc., its previously announced merger partner ("Theralink"),
and Theralink's Chairman, for the sale of its convertible preferred stock and warrants (the "Private Placement"). The
Company sold an aggregate of 2,500 shares of its Series A-1 Convertible Preferred Stock, stated value $1,000 per share ("Series
A-1 Convertible Preferred Stock"), 1,800 shares of its Series A-2 Convertible Preferred Stock, stated value $1,000 per share ("Series
A-2 Convertible Preferred Stock"), and warrants ("Warrants") to purchase up to 2,075,702 shares of the Company's
common stock for aggregate gross proceeds of $4,300,000, before deducting placement agent fees and other offering expenses. The shares
of Series A-1 Convertible Preferred Stock bear a 12% dividend and are initially convertible into an aggregate of 763,126 shares of common
stock of the Company, and the shares of Series A-2 Convertible Preferred Stock are initially convertible into an aggregate of 549,451
shares of common stock of the Company, in each case, at a conversion price of $3.276 per share. The Series A-1 and Series A-2 Convertible
Preferred Stock cannot be converted at the option of the holder into shares of the Company's common stock until shareholder approval
is received in compliance with the applicable rules and regulations of The Nasdaq Stock Market. The Warrants have an exercise price of
$3.276 per share, are exercisable on or after the date that shareholder approval of the Private Placement is received and will expire
five years from the date such shareholder approval is received. It is expected that approximately $3.0 million of the proceeds of the
Private Placement will be used to make a loan to Theralink for investment into sales and marketing efforts and general working capital
purposes as the companies continue to take formal steps together in advancing their planned merger previously announced on May 23, 2023.
* Retrospectively restated for the effect of 30-for-1 reverse stock split.

 The
Company also entered into a Registration Rights Agreement, pursuant to which it agreed to file a registration statement with the Securities
and Exchange Commission (the "SEC") covering the resale of the shares of the Company's common stock underlying the
Series A-1 Convertible Preferred Stock, Series A-2 Convertible Preferred Stock and Warrants no later than 45 days following the closing
of the planned merger.

 On July 27, 2023, the Company
filed Certificates of Designation of Preferences, Rights and Limitations establishing two series of preferred stock designated as the
Series A-1 Convertible Preferred Stock and the Series A-2 Convertible Preferred Stock with the Secretary of the State of Delaware.

 On December 20, 2023,
the Company entered into a letter agreement with several institutional and accredited investors providing for the sale of an
additional aggregate $250,000 of convertible preferred stock (the "Private Placement"). Pursuant to the letter
agreement, the Company exchanged its Series A-1 Convertible Preferred Stock and Series A-2 Convertible Preferred stock for a
corresponding number of shares of the Company's newly-created Series B-1 Convertible Preferred Stock and the Company's
newly-created Series B-2 Convertible Preferred Stock, respectively. Shares of the Series B-1 Convertible Preferred Stock and Series
B-2 Convertible Preferred Stock are convertible into shares of common stock of the Company at a conversion price of $1.84 per share,
which is above the most recent closing price of the Company's common stock and represents a reduction in the conversion price
from the Series A-1 Convertible Preferred Stock and Series A-2 Convertible Preferred Stock. Therefore, the Series B-1 and B-2
preferred stock is convertible into 1,437,500 and 1,035,326 common shares, respectively. In addition, the exercise price of the Warrants was
reduced to $1.84 pursuant to the letter agreement. The reduction in the conversion price and the exercise price was made in
consideration of the additional purchase amount, therefore there was no accounting effect of this exchange. It is expected that the
proceeds of the Private Placement will be used for general working capital and general corporate purposes.

 All terms other than the conversion price are the
same as the Series A-1 and A-2.

 There are a number of risks and uncertainties
that could impact the completion of the IMAC Merger with Theralink.

 The Merger is structured as a
stock for stock reverse merger whereby all of Theralink's outstanding equity interests are to be exchanged for shares of IMAC common
stock. Theralink stakeholders are expected to own approximately 85% of the combined company, and pre-merger IMAC equity holders are expected
to own approximately 15% of the combined company, on a fully diluted basis calculated using the treasury stock method, subject to certain
adjustments provided for in the Merger Agreement. The boards of directors of both companies have unanimously approved the Merger Agreement.
However, there can be no guarantee of the dilutive impact to shareholders prior to or as part of the Merger process. Additionally, there
is a risk that cost savings, synergies and growth from the proposed Merger may not be fully realized or may take longer to realize than
expected; the possibility that shareholders of IMAC may not approve the issuance of new shares of IMAC common stock in the proposed Merger
or that shareholders of IMAC may not approve the proposed Merger; the risk that a condition to closing of the proposed Merger may not
be satisfied, that either party may terminate the Merger Agreement or that the closing of the proposed Merger might be delayed or not
occur at all; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement
or completion of the proposed Merger; the occurrence of any other event, change or other circumstances that could give rise to the termination
of the Merger Agreement relating to the proposed Merger; the risk that changes in IMAC's capital structure and governance could
have adverse effects on the market value of its securities and its ability to access the capital markets; the ability of IMAC to retain
its Nasdaq listing; the ability of Theralink to retain customers and retain and hire key personnel and maintain relationships with their
suppliers and customers and on Theralink's operating results and business generally; the risk the proposed Merger could distract
management from ongoing business operations or cause IMAC and/or Theralink to incur substantial costs; the risk that Theralink may be
unable to reduce expenses; the impact of any related economic downturn; the risk of changes in regulations effecting the healthcare industry;
and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult
to predict and may be beyond IMAC's or Theralink's control.

 In furtherance of the proposed business combination with Theralink, on
April 12, 2024 we entered into a credit agreement, secured by the assets of Theralink and its subsidiaries, pursuant to which Theralink
may borrow from the Company up to an aggregate of $1,000,000 with an initial borrowing of $350,000. While we remain committed to acquiring
the business of Theralink, we continue to evaluate all options with respect to the structuring of the business combination, including
the Merger. We cannot give any assurance that the business combination will be consummated in accordance with the previously disclosed
terms, as opposed to other alternative structures. See Note 14 – Subsequent Events.

 We
do not expect to pay any dividends on our common stock for the foreseeable future.

 We
currently expect to retain all future earnings, if any, for future operation, expansion and debt repayment and have no current plans
to pay any cash dividends to holders of our common stock for the foreseeable future. Any decision to declare and pay dividends in the
future will be made at the discretion of our board of directors and will depend on, among other things, our operating results, financial
condition, cash requirements, contractual restrictions and other factors that our board of directors may deem relevant. In addition,
we must comply with the covenants in our credit agreements in order to be able to pay cash dividends, and our ability to pay dividends
generally may be further limited by covenants of any future outstanding indebtedness we or our subsidiaries incur. As a result, you may
not receive any return on an investment in our common stock unless you sell our common stock for a price greater than that which you
paid for it.

 We
may issue additional shares of common stock, warrants or other securities to finance our growth.

 We
may finance the business development or generate additional working capital through additional equity financing. Therefore, subject to
the rules of the Nasdaq, we may issue additional shares of our common stock, warrants and other equity securities of equal or senior
rank, with or without stockholder approval, in a number of circumstances from time to time. The issuance by us of shares of our common
stock, warrants or other equity securities of equal or senior rank will have the following effects:

 the
 proportionate ownership interest in us held by our existing stockholders will decrease;

 the
 relative voting strength of each previously outstanding share of common stock may be diminished; and

 the
 market price of our common stock may decline.

 In
addition, if we issue shares of our common stock and/or warrants in a future offering (or, in the case of our common stock, the exercise
of outstanding warrants to purchase our common stock), it could be dilutive to our security holders.

 There
can be no assurance that we will ever provide liquidity to our investors through a sale of our company.

 While
acquisitions of healthcare companies like ours are not uncommon, potential investors are cautioned that no assurances can be given that
any form of merger, combination, or sale of our company will take place, or that any merger, combination, or sale, even if consummated,
would provide liquidity or a profit for our investors. You should not invest in our company with the expectation that we will be able
to sell the business in order to provide liquidity or a profit for our investors.

 We
have broad discretion in the use of the net proceeds from our public offerings and private placement and may not use them effectively.

 Our
management has broad discretion in the application of the net proceeds from our public offerings and private placement and could spend
the proceeds in ways that do not enhance the value of our common stock. Because of the number and variability of factors that will determine
our use of the net proceeds from our completed offerings, their ultimate use may vary substantially from their currently intended use.
The failure by our management to apply these funds effectively could have a material adverse effect on our business. Pending their use,
we may invest the net proceeds from the offerings in a manner that does not produce income or that loses value. If we do not apply or
invest the net proceeds from the offerings in ways that enhance stockholder value, we may fail to achieve expected financial results,
which could cause the price of our securities to decline.

 ITEM
 1B.

 UNRESOLVED
 STAFF COMMENTS

 None.

 Item 1C.

 CYBERSECURITY

 Risk
Management and Strategy Disclosure.

 We
have established processes for assessing, identifying, and managing material risk from cybersecurity threats, and have integrated these
processes into our overall risk management systems and processes. We routinely assess material risks from cybersecurity threats, including
any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality,
integrity, or availability of our information systems or any information residing therein.

 We
conduct periodic risk assessments to identify cybersecurity threats, as well as assessments in the event of a material change in our
business practices that may affect information systems that are vulnerable to such cybersecurity threats. These risk assessments include
identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such
risks, and the sufficiency of existing procedures, systems, and safeguards in place to manage such risks.

 Following
these risk assessments, we re-design, implement, and maintain reasonable safeguards to minimize identified risks; reasonably address
any identified gaps in existing safeguards; and regularly monitor the effectiveness of our safeguards. Primary responsibility for assessing,
monitoring and managing our cybersecurity risks rests with an IT consultant who reports to our Chief Executive Officer, to manage the
risk assessment and mitigation process.

 As
part of our overall risk management system, we monitor and test our safeguards and train our employees on these safeguards, in collaboration
with IT and management. Personnel at all levels and departments are made aware of our cybersecurity processes through trainings.

 We
engage consultants, or other third parties in connection with our risk assessment processes. These service providers assist us to design
and implement our cybersecurity procedures, as well as to monitor and test our safeguards. We require each third-party service provider
to certify that it has the ability to implement and maintain appropriate security measures, consistent with all applicable laws, to implement
and maintain reasonable security measures in connection with their work with us, and to promptly report any suspected breach of its security
measures that may affect our company.

 We
have not encountered cybersecurity challenges that have materially impaired our operations or financial standing. For additional information
regarding risks from cybersecurity threats, please refer to Item 1A, "Risk Factors," in this Annual Report on Form 10-K.

 Governance
Disclosure.

 Our
Board is periodically informed of our risk management process, including risks from cybersecurity threats. Our Board is responsible for
monitoring and assessing strategic risk exposure, and our executive officers are responsible for the day-to-day management of the material
risks we face.

 Our
Chief Executive Officer and Chief Financial Officer are primarily responsible to assess and manage our material risks from cybersecurity
threats with assistance from third-party service providers.

 Our
Chief Executive Officer and Chief Financial Officer oversee our cybersecurity processes, including those described in "Risk Management
and Strategy" above. The cybersecurity risk management program includes tools and activities to prevent, detect, and analyze current
and emerging cybersecurity threats, and plans and strategies to address threats and incidents.

 ITEM
 2.

 PROPERTIES

 We
manage our business operations from our principal executive office in Franklin, Tennessee. Our executive office lease is on a month-to-month
basis. Our total rent expense was $0.7 million under our office and medical clinic leases for 2023. For more information about our outpatient
locations and the terms of their leases, see Item 1, "Business - Our Operations" above.

 We
believe our present office space are adequate for our current operations.

 ITEM
 3.

 LEGAL
 PROCEEDINGS

 From
time to time, we may become involved in various lawsuits and legal proceedings that arise in the ordinary course of our business, as
described below. Litigation is, however, subject to inherent uncertainties, and an adverse result in these or other matters may arise
from time to time that may harm our business. We are currently not aware of any legal proceedings or claims that we believe would or
could have, individually or in the aggregate, a material adverse effect on us. Regardless of final outcomes, however, any such proceedings
or claims may nonetheless impose a significant burden on management and employees and may come with costly defense costs or unfavorable
preliminary interim rulings.

 ITEM
 4.

 MINE
 SAFETY DISCLOSURES

 Not
applicable.

 PART
II

 ITEM
 5.

 MARKET
 FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Information

 In
connection with the completion of our initial public offering, our common stock and warrants began trading on the Nasdaq Capital Market
on February 13, 2019, under the symbols "IMAC" and "IMACW", respectively. On August 8, 2022, the Company changed
its "IMAC" ticker symbol to "BACK". Our warrants expired in February 2024 and are no longer listed for trading.

 As
of April 16, 2024, there were approximately 36 holders of record of our common stock. We believe that the number of beneficial owners
is substantially greater than the number of record holders because a large portion of our common stock is held of record through brokerage
firms in "street name."

 Dividend
Policy

 Our
board of directors will determine our future dividend policy based on our result of operations, financial condition, capital requirements
and other circumstances. We have not previously declared or paid any cash dividends on our common stock. We anticipate that we will retain
earnings to support operations and finance the growth of our business. Accordingly, it is not anticipated that any cash dividends will
be paid on our common stock in the foreseeable future.

Authorized for Issuance Under Equity Compensation Plans

 See
"2018 Incentive Compensation Plan" under Item 11 in Part III of this Annual Report.

 ITEM
 6.

 RESERVED

 ITEM
 7.

 MANAGEMENT'S
 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 The
following discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially
from those anticipated in these forward-looking statements as a result of various factors, including those set forth previously under
the caption "Risk Factors." This Management's Discussion and Analysis of Financial Condition and Results of Operations
should be read in conjunction with our audited consolidated financial statements and related notes included elsewhere in this report.

 The
results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods.

 References
in this MD&A to "we," "us," "our," "our company," "our business" and
"IMAC Holdings" are to IMAC Holdings, Inc., a Delaware corporation and prior to the Corporate Conversion (defined below),
IMAC Holdings, LLC, a Kentucky limited liability company, and the following entities which are consolidated due to direct ownership of
a controlling voting interest or other rights granted to us as the sole general partner or managing member of the entity: IMAC Regeneration
Center of St. Louis, LLC ("IMAC St. Louis"), IMAC Management Services, LLC ("IMAC Management"), IMAC Regeneration
Management, LLC ("IMAC Texas") IMAC Regeneration Management of Nashville, LLC ("IMAC Nashville") IMAC Management
of Illinois, LLC ("IMAC Illinois"), Advantage Hand Therapy and Orthopedic Rehabilitation, LLC ("Advantage Therapy"),
IMAC Management of Florida, LLC ("IMAC Florida"), Louisiana Orthopaedic & Sports Rehab ("IMAC Louisiana")
and The Back Space, LLC ("BackSpace"); the following entity which is consolidated with IMAC Regeneration Management of Nashville,
LLC due to control by contract: IMAC Regeneration Center of Nashville, PC ("IMAC Nashville PC"); the following entities which
are consolidated with IMAC Management of Illinois, LLC due to control by contract: Progressive Health and Rehabilitation, Ltd., Illinois
Spine and Disc Institute, Ltd. and Ricardo Knight, P.C.; the following entities which are consolidated with IMAC Management Services,
LLC due to control by contract: Integrated Medicine and Chiropractic Regeneration Center PSC (Kentucky PC) and IMAC Medical of Kentucky,
PSC (Kentucky PSC); the following entities which are consolidated with IMAC Florida due to control by contract: Willmitch Chiropractic,
P.A. and IMAC Medical of Florida, P.A.; the following entity which is consolidated with Louisiana Orthopaedic & Sports Rehab due
to control by contract: IMAC Medical of Louisiana, a Medical Corporation; and the following entities which are consolidated with BackSpace
due to control by contract: ChiroMart LLC, ChiroMart Florida LLC, and ChiroMart Missouri LLC.

 Overview

 We
were a provider of movement and orthopedic therapies and minimally invasive procedures performed through our regenerative and rehabilitative
medical treatments to improve the physical health of our patients at our chain of IMAC Regeneration Centers and BackSpace clinics which
we owned or managed. Our outpatient medical clinics provided conservative, minimally invasive medical treatments to help patients with
back pain, knee pain, joint pain, ligament and tendon damage, and other related soft tissue conditions. Our licensed healthcare professionals
evaluated each patient and provided a custom treatment plan that integrated traditional medical procedures and innovative regenerative
medicine procedures in combination with physical medicine. We did not use or offer opioid-based prescriptions as part of our treatment
options in order to help our patients avoid the dangers of opioid abuse and addiction. The original IMAC Regeneration Center opened in
Kentucky in August 2000 and remained the flagship location of our business, which was formally organized in March 2015 until it's
asset sale in November 2023. As of December 31, 2023, we have sold or discontinued patient care at all our locations including The BackSpace
LLC. The BackSpace operated healthcare centers specializing in chiropractic and spinal care services inside Walmart retail locations.

 Given
the Company's current financial position, during 2023 the Company decided to close its underperforming locations and in addition
sold its Louisiana Orthopedic practice, The BackSpace, LLC operations and sold physical assets of certain locations in an effort to raise
sufficient capital to support on-going operations. Management has been actively exploring various strategic alternatives in an effort
to support operations in 2024 and beyond.

 We
owned our medical clinics directly or had entered into long-term management services agreements to operate and control certain of our
medical clinics by contract. Our preference was to own the clinics; however, some state laws restrict the corporate practice of medicine
and require a licensed medical practitioner to own the clinic. Accordingly, our managed clinics are owned exclusively by a medical professional
within a professional service corporation (formed as a limited liability company or corporation) and are under common control with us
in order to comply with state laws regulating the ownership of medical practices. We are compensated under management services agreements
through service fees based on the cost of the services provided, plus a specified markup percentage, and a discretionary annual bonus
determined in the sole discretion of each professional service corporation.

 Significant
financial metrics

 Our
significant financial metrics of the Company for the year ended December 31, 2023 are set forth in the bullets below.

 Net
 loss of $9.4 million in the year ended 2023 compared to a net loss of $18.3 million in the year ended 2022.

 Adjusted
 EBITDA 1 of ($3.8 million) for the year ended December 31, 2023 compared to ($7.8 million) for the year ended December 31,
 2022.

 The
 Company incurred $2,000 in FDA related expenses for the year ended December 31, 2023 compared to $523,000 for the year ended December
 31, 2022.

 The
 Company had one-time expenses of $1.2 million in impairment loss related to the Company's intangible assets for the year ended
 December 31, 2023 and a $2.3 million write-down of a note receivable.

 (1)

 Adjusted
 EBITDA is a non-GAAP financial measure most closely comparable to the GAAP measure of net loss. See "Reconciliation of Non-GAAP
 Financial Matters" below for a full reconciliation of the GAAP and non-GAAP measures.

 Matters
that May or Are Currently Affecting Our Business

 We
believe that the growth of our business and our future success depend on various opportunities, challenges, trends and other factors,
including the following:

 Our
 ability to obtain additional financing for the projected costs associated with the acquisition and the personnel involved, if and
 when needed;

 Our
 ability to attract competent, skilled medical and sales personnel for our operations at acceptable prices to manage our overhead;
 and

 Our
 ability to control our operating expenses; our ability to consummate the proposed Theralink Technologies merger and, if consummated,
 whether it will prove to be beneficial to our Company and stockholders.

 On
May 23, 2023, IMAC Holdings, Inc., a Delaware corporation (Nasdaq: BACK) (the "Company") entered into an Agreement and Plan
of Merger (the "Merger Agreement") with Theralink Technologies, Inc. (OTC: THER), a Nevada corporation ("Theralink"),
and IMAC Merger Sub, Inc., a Delaware corporation and a newly formed, wholly owned subsidiary of the Company ("Merger Sub").
Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Theralink (the "Merger"),
with Theralink continuing as the surviving entity (the "Surviving Entity") and a wholly owned subsidiary of the Company.
On May 22, 2023, the board of directors of the Company, and the board of directors of Theralink unanimously approved the Merger Agreement.

 At
the effective time of the Merger (the "Effective Time"), each share of Theralink's common stock ("Theralink Common
Stock") and each share of Theralink's preferred stock (together with the Theralink Common Stock, "Theralink Shares")
issued and outstanding as of immediately prior to the Effective Time will be converted into and will thereafter represent the right to
receive a portion of a share of the Company's common stock (the "Company Shares") such that the total number of Company
Shares issued to the holders of Theralink Shares shall equal 85% of the total number of Company Shares outstanding as of the Effective
Time (the "Merger Consideration").

 At
the Effective Time, each award of Theralink stock options (each, a "Theralink Stock Option"), whether or not then vested
or exercisable, that is outstanding immediately prior to the Effective Time, will be assumed by the Company and converted into a stock
option relating to a number of Company Shares equal to the product of: (i) the number of shares of Theralink Common Stock subject to
such Theralink Stock Option; and (ii) the ratio which results from dividing one share of Theralink Common Stock by the portion of a Company
Share issuable for such share as finally determined at the Effective Time (the "Exchange Ratio"), at an exercise price per
Company Share (rounded up to the nearest whole cent) equal to the quotient obtained by dividing (A) the exercise price per share of Theralink
Common Stock of such Theralink Stock Option by (B) the Exchange Ratio.

 The
Company and Theralink have each agreed, subject to certain exceptions with respect to unsolicited proposals, not to directly or indirectly
solicit competing acquisition proposals or to enter into discussions concerning, or provide confidential information in connection with,
any unsolicited alternative acquisition proposals. However, if such party receives an unsolicited, bona fide acquisition proposal that
did not result from a material breach of the non-solicitation provisions of the Merger Agreement and the Company's or Theralink's
board of directors, or any committee thereof, as applicable, concludes, after consultation with its financial advisors and outside legal
counsel, that such unsolicited, bona fide acquisition proposal constitutes, or could reasonably be expected to result in, a superior
offer, such party may furnish non-public information regarding it or any of its subsidiaries and engage in discussions and negotiations
with such third party in response to such unsolicited, bona fide acquisition proposal; provided that each party provides notice
and furnishes any non-public information provided to the maker of the acquisition proposal to each party substantially concurrently with
providing such non-public information to the maker of the acquisition proposal.

 The
completion of the Merger is subject to the satisfaction or waiver of customary closing conditions, including: (i) adoption of the Merger
Agreement by holders of a majority of the outstanding Theralink Shares; (ii) approval of the issuance of Company Shares in connection
with the Merger by a majority of the outstanding shares of the Company's common stock; (iii) absence of any court order or regulatory
injunction prohibiting completion of the Merger; (iv) expiration or termination of (a) all waiting periods under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the "HSR Act") and (b) any agreement with any governmental entity not to
consummate the transactions contemplated by the Merger Agreement; (v) effectiveness of the Company's registration statement on
Form S-4 to register the Company Shares to be issued in the Merger; (vi) subject to specified materiality standards, the accuracy of
the representations and warranties of the other party; (vii) the authorization for listing of Company Shares to be issued in the Merger
on Nasdaq; (viii) compliance by the other party in all material respects with its covenants; and (ix) the completion of satisfactory
due diligence by both parties.

 The
Company and Theralink have each made customary representations and warranties in the Merger Agreement. The Merger Agreement also contains
customary covenants and agreements, including covenants and agreements relating to (i) the conduct of each of the Company's and
Theralink's business between the date of the signing of the Merger Agreement and the closing date of the Merger and (ii) the efforts
of the parties to cause the Merger to be completed, including actions which may be necessary to cause the expiration or termination of
any waiting periods under the HSR Act.

 In furtherance of the proposed business combination with Theralink, on
April 12, 2024 we entered into a credit agreement, secured by the assets of Theralink and its subsidiaries, pursuant to which Theralink
may borrow from the Company up to an aggregate of $1,000,000 with an initial borrowing of $350,000. While we remain committed to acquiring
the business of Theralink, we continue to evaluate all options with respect to the structuring of the business combination, including
the Merger. We cannot give any assurance that the business combination will be consummated in accordance with the previously disclosed
terms, as opposed to other alternative structures. See Note 14 – Subsequent Events.

 Critical
Accounting Policies and Estimates

 The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses at the date
and for the periods that the consolidated financial statements are prepared. On an ongoing basis, we evaluate our estimates, including
those related to insurance adjustments and provisions for doubtful accounts, useful lives of intangibles, property and equipment, and
valuation of goodwill. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable
under the circumstances. Actual results could materially differ from those estimates.

 We
believe that, of the significant accounting policies discussed in our Notes to the Consolidated Financial Statements, the following accounting
policies require our most difficult, subjective or complex judgments in the preparation of our financial statements.

 Discontinued
Operations

 In
accordance with ASC 205-20 "Discontinued Operations" establishes that the disposal or abandonment of a component of an entity
or a group of components of an entity should be reported in discontinued operations if the disposal represents a strategic shift that
has (or will have) a major effect on an entity's operations and financial results. As a result, the Company's component's
results of operations have been classified as discontinued operations on a retrospective basis for all periods presented. Accordingly,
the results of operations of this component, for all periods, are separately reported as "discontinued operations" on the
consolidated statements of operations.

 In
2023, the Company decided to discontinue business activities related to its underperforming clinic locations and BackSpace retail stores.
As of December 31, 2023, all locations had been closed and all assets had been sold. The major classes of assets and liabilities of discontinued
operations on the consolidated balance sheet are as follows:

 31,

 2023

 2022

 receivable, net

 $

 -

 $

 2,881,239

 Other
 current assets

 1,028

 176,265

 and equipment, net

 1,579,327

 Intangible assets, net

 -

 1,121,707

 Other
 assets

 95,040

 3,920,839

 Net
 assets from discontinued operations

 $

 96,830

 $

 9,679,377

 Liabilities

 payable and accrued expenses

 $

 860,221

 $

 1,134,099

 deposits

 -

 241,666

 Other
 current liabilities

 108,088

 1,439,571

 Other
 liabilities

 344,402

 2,716,519

 Net
 liabilities from discontinued operations

 $

 1,312,711

 $

 5,531,855

 The
following table shows the results of income from discontinued operations:

 31,

 2023

 2022

 revenues, net

 $

 5,197,352

 $

 16,186,256

 Salaries and benefits

 3,271,816

 10,387,802

 General and administrative

 2,344,549

 4,815,847

 Other
 expenses

 2,524,214

 7,464,426

 Total
 costs and expenses

 8,140,579

 22,668,075

 Loss
 from discontinued operations, net of income taxes

 $

 (2,943,227

)

 $

 (6,481,819

)

 Intangible

 The
Company capitalizes the fair value of intangible assets acquired in business combinations. Intangible assets are amortized on a straight-line
basis over their estimated economic useful lives, generally the contract term. The Company performs valuations of assets acquired and
liabilities assumed on each acquisition accounted for as a business combination and allocates the purchase price of each acquired business
to its respective net tangible and intangible assets. Acquired intangible assets include trade names, non-compete agreements, customer
relationships and contractual agreements. Intangible assets are subject to annual impairment tests. An impairment loss of $0.06 million
was recorded in January 2023 related to the sale of Louisiana. An impairment loss of $0.06 million was recorded in February 2023 related
to the sale of BackSpace. An impairment loss of $0.27 million was recorded in April 2023 related to the Illinois asset sale. An impairment
loss of $0.63 million was recorded in October 2023 related to our Kentucky asset sale. An impairment loss of $0.24 million was recorded
in December 2023 related to the Company's investigational new drug. An impairment loss of $3.8 million was recorded in September
2022 related to our Illinois and Kentucky acquisitions.

 Goodwill

 Our
goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations.
The goodwill generated from the business combinations is primarily related to the value placed on the employee workforce and expected
synergies. Judgment is involved in determining if an indicator or change in circumstances relating to impairment has occurred. Such changes
may include, among others, a significant decline in expected future cash flows, a significant adverse change in the business climate,
and unforeseen competition.

 The
goodwill test is performed at least annually, or more frequently if events or changes in circumstances indicate that the asset might
be impaired. The annual impairment test includes an option to perform a qualitative assessment of whether it is more likely than not
that a reporting unit's fair value is less than its carrying value; the qualitative test may be performed prior to, or as an
alternative to, performing a quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, the
Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the
Company is required to perform the quantitative goodwill impairment test. Otherwise, no further analysis is required. A goodwill
impairment loss of $0 and $4.5 million was recorded in December 2023 and 2022, respectively.

Recognition

 The Company's patient service revenue was derived
from non-surgical procedures performed at our outpatient medical clinics. The fees for such services were billed either to the patient
or a third-party payer, including Medicare.

 The Company recognized service revenues based upon
the estimated amounts the Company expects to be entitled to receive from patients and third-party payers. Estimates of contractual adjustments
are based upon the payment terms specified in the related contractual agreements. The Company also records estimated implicit price concessions
(based primarily on historical collection experience) related to uninsured accounts to record these revenues at the estimated amounts
expected to be collected.

 Starting in January 2020, the Company implemented
wellness maintenance programs on a subscription basis. There were four membership plans offered with different levels of service for each
plan. The Company recognized membership revenue on a monthly basis. Enrollment in the wellness maintenance program can occur at any time
during the month and can be dis-enrolled at any time.

 Starting in June 2021, the Company introduced BackSpace
and began offering outpatient chiropractic and spinal care services as well as memberships services in Walmart retail locations. The fees
for such services were paid and recognized as incurred.

 Starting in September 2022, the Company introduced
hormone replacement therapy "HRT" and medical weight loss programs. The Company recognized HRT and medical weight loss revenue
as the services are provided.

 Other management service fees are derived from management
services where the Company provides billings and collections support to the clinics and where management services were provided based
on state specific regulations known as the corporate practice of medicine ("CPM"). Under the CPM, a business corporation is
precluded from practicing medicine or employing a physician to provide professional medical services. In these circumstances, the Company
provides all administrative support to the physician-owned PC through a LLC. The PC is consolidated due to control by contract (an "MSA"
– Management Services Agreement). The fees we derive from these management arrangements are either based on a predetermined percentage
of the revenue of each clinic or a percentage mark up on the costs of the LLC. The company recognized other management service revenue
in the period in which services were rendered. These revenues are earned by IMAC Nashville, IMAC Management, IMAC Illinois, IMAC Florida,
IMAC Louisiana and the Back Space and are eliminated in consolidation to the extent owned.

 Accounts Receivable

 Accounts receivable primarily
consists of amounts due from third-party payers (non-governmental), governmental payers and private pay patients and is recorded net of
allowances for doubtful accounts and contractual discounts. Our ability to collect outstanding receivables is critical to our results
of operations and cash flows. Accordingly, accounts receivable reported in our consolidated financial statements are recorded at the net
amount expected to be received. Our primary collection risks are (i) the risk of overestimation of net revenues at the time of billing
that may result in our receiving less than the recorded receivable, (ii) the risk of non-payment as a result of commercial insurance companies'
denial of claims, (iii) the risk that patients will fail to remit insurance payments to us when the commercial insurance company pays
out-of-network claims directly to the patient, (iv) resource and capacity constraints that may prevent us from handling the volume of
billing and collection issues in a timely manner, (v) the risk that patients do not pay us for their self-pay balances (including co-pays,
deductibles and any portion of the claim not covered by insurance), and (vi) the risk of non-payment from uninsured patients.

 Our accounts receivable from third-party
payers are recorded net of estimated contractual adjustments and allowances from third-party payers, which are estimated based on the
historical trend of our facilities' cash collections and contractual write-offs, accounts receivable aging, established fee schedules,
relationships with payers and procedure statistics. While changes in estimated reimbursement from third-party payers remain a possibility,
we expect that any such changes would be minimal and, therefore, would not have a material effect on our financial condition or results
of operations. Our collection policies and procedures are based on the type of payor, size of claim and estimated collection percentage
for each patient account. The operating systems used to manage our patient accounts provide for an aging schedule in 30-day increments,
by payer, physician and patient. We analyze accounts receivable at each of the facilities to ensure the proper collection and aged category.
The operating systems generate reports that assist in the collection efforts by prioritizing patient accounts. Collection efforts include
direct contact with insurance carriers or patients and written correspondence.

 Results of Operations for the Year Ended December
31, 2023 Compared to the Year Ended December 31, 2022

 We owned our medical clinics directly
or have entered into long-term management services agreements to operate and control these medical clinics by contract. Our preference
is to own the clinics; however, some state laws restrict the corporate practice of medicine and require a licensed medical practitioner
to own the clinic. Accordingly, our managed clinics are owned exclusively by a medical professional within a professional service corporation
(formed as a limited liability company or corporation) under common control with us or eligible members of our company in order to comply
with state laws regulating the ownership of medical practices. We were compensated under management services agreements through service
fees based on the cost of the services provided, plus a specified markup percentage, and a discretionary annual bonus determined in the
sole discretion of each professional service corporation.

 Revenues – Discontinued Operations

 Our revenue mix is diversified
between medical treatments and physiological treatments. Our medical treatments are further segmented into traditional medical and regenerative
medicine practices. We are an in-network provider for traditional physical medical treatments, such as physical therapy, chiropractic
services and medical evaluations, with most private health insurance carriers. Regenerative medical treatments are typically not covered
by insurance, but paid by the patient. For more information on our revenue recognition policies, see "Critical Accounting Policies
and Estimates - Revenue Recognition."

 Revenues from discontinued operations
for the years ended December 31, 2023 and 2022 were as follows:

 2023

 2022

 ( in thousands)

 Revenues:

 Outpatient facility services

 $
 4,644

 $
 14,824

 Memberships

 Retail clinics

 Total revenues

 $
 5,197

 $
 16,186

 See
the table below for more information regarding our revenue breakdown by service type for discontinued operations.

 Year Ended December 31,

 2023

 2022

 Revenues:

 Medical treatments

 %

 %

 Physical therapy

 %

 %

 Chiropractic care

 %

 %

 Memberships

 %

 %

 %

 %

Results

 Total
revenues decreased $11 million due to the closure or sale of all locations.

 IMAC
Clinics

 The
revenue decrease attributed to IMAC Clinics was $10.2 million due to the closure or sale of all locations.

 Retail
Clinics

 The
Company began opening retail clinics in Walmart in June 2021. The retail clinics provided outpatient chiropractic and spinal care services. The revenue decrease attributed to the
retail clinics was $0.6 million due to the closure or sale of all locations.

 Memberships

 A
wellness membership program was implemented at IMAC Clinics in January 2020 and this wellness program had different plan levels that
included services for chiropractic care and medical treatments on a monthly subscription basis. Therefore, memberships could have multiple
visits in one month, however only one payment was received for these visits. BackSpace also had a membership plan for chiropractic care on a monthly subscription
basis. As of December 31, 2023, 83% of the BackSpace revenue was related to memberships.

 Operating
Expenses – Continuing Operations

 Operating
expenses consist of salaries and benefits, share based compensation, advertising and marketing, general and administrative expenses and
depreciation expenses.

 Salaries
and benefits consist of payroll, benefits and related party contracts.

 Salaries and Benefits

 2023

 2022

 Percent

 Year Ended December 31

 $
 1,348,000

 $
 4,129,000

 $
 (2,781,000
)

 (67.3
)%

 Salaries
and benefits expenses for the year ended December 31, 2023, as compared to the year ended December 31, 2022, decreased by 67.32%. A
decrease would have been expected considering the Company sold or closed all locations.

 Advertising
and marketing consist of marketing, business promotion and brand recognition.

 Advertising and Marketing

 2023

 2022

 Percent

 Year Ended December 31

 $
 8,000

 $
 74,000

 $
 (66,000
)

 (89.6
)%

 Advertising
and marketing expenses decreased $66,000 for the year ended December 31, 2023, as compared to the year ended December 31, 2022. Advertising and marketing efforts were terminated when the decision was
made to sale or close all locations.

 General
and administrative expense ("G&A") consist of all other costs than advertising and marketing, salaries and benefits,
patient expenses and depreciation.

 General and Administrative

 2023

 2022

 Percent

 Year Ended December 31

 $
 1,459,000

 $
 2,466,000

 $
 (1,007,000
)

 (40.8
)%

 G&A
decreased increased in the year ended December 31, 2023 as compared to the year ended December 31, 2022 due to the sale or closure
of all locations.

 FDA
Clinical Trial

 In
August 2020, the United States Food and Drug Administration (the "FDA") approved the Company's investigational new
drug application. The Company has completed Phase 1 of the clinical trial, which was conducted over a 12-month period. The Company
incurred $(3,000) in expenses related to a credit from consultants, supplies, software and travel for the clinical trial during
2023, which is included in the G&A totals above. This is compared to $360,000 that was incurred for the trial in
2022.

 Depreciation
is related to our property and equipment purchases to use in the course of our business activities. Amortization is related to our business
acquisitions.

 Depreciation and Amortization

 2023

 2022

 Percent

 Year Ended December 31

 $
 126,000

 $
 655,000

 $
 (529,000
)

 (80.7
)%

 Depreciation
and amortization decreased due to the sale of assets and impairment of intangible assets for the year ended December 31, 2023
compared to the year ended December 31, 2022.

 The Company recognized a loss on disposition or impairment of $3.4 million in 2023 and $4.5 million in 2022 as a result of intangible
write-offs and location closures in 2023 and largely goodwill impairment in 2022.

 Analysis
of Cash Flows

 The primary source of our operating
cash flow is the collection of accounts receivable from patients, private insurance companies, government programs, self-insured employers
and other payers.

 During the year ended December
31, 2023, net cash used in operations decreased to $2.8 million compared to $10.3 million for the year ended December 31, 2022. This decrease
was primarily attributable to our lower net loss in 2023 and discontinuance of our operations.

 Net cash used in investing activities
during the years ended December 31, 2023 and 2022 was $1.8 million and $0.3 million, respectively. The increase was primarily due to $3
million in loans made to Theralink offset by $1.2 million proceeds from the sale of assets and practices.

 Net cash provided by financing
activities during the year ended December 31, 2023 was $4.0 million, which was primarily proceeds from the sale of preferred stock, net
of related fees, which totaled $4.0 million. Net cash provided by financing activities during the year ended December 31, 2022 was $4.2
million, including proceeds from the sale of common stock, net of related fees, which totaled $4.4 million, reduced by principal repayments
of $0.3 million.

 Liquidity
and Capital Resources

 As of December 31, 2023, we had
$0.2 million in cash and a working capital deficit of $(0.8) million. As of December 31, 2022, we had cash of $0.8 million and working
capital of $3.2 million. The decrease in working capital was primarily due to a $8.6 million decrease in current assets and a $4.5 million
decrease in current liabilities.

 As of December 31, 2023, we had
approximately $1.9 million in current liabilities. Approximately $0.8 million of our current liabilities outstanding were to our vendors,
which we have historically paid down in the normal course of our business and accrued payroll. The current portion of our operating lease
liability accounted for approximately $0.1 million of our current liabilities.

 As of December 31, 2023, we had
an accumulated deficit of $55.9 million. We anticipate that we will need to raise additional capital to fund future operations. However,
we may be unable to raise additional funds or enter into such arrangements when needed or favorable terms, or at all, which would have
a negative impact on our financial condition and could force us to delay, limit, reduce or terminate our development or acquisition activity.
Failure to receive additional funding could also cause us to cease operations, in part or in full. Furthermore, even if we believe we
have sufficient funds for our current of future operating plans, we may seek additional capital due to favorable market conditions or
strategic considerations. Our management team has determined that our financial condition raises substantial doubt as to our ability to
continue as a going concern.

 Iliad
Note

 On
October 29, 2020, the Company entered into the Note Purchase Agreement with Iliad pursuant to which the Company agreed to issue and sell
to Iliad a secured promissory note in an initial principal amount of $2,690,000, which is payable on or before April 29, 2022. The October
Principal Amount includes an original discount of $175,000 and $15,000 that the Company agreed to pay to Iliad to cover legal fees, accounting
costs, due diligence and other transaction costs. In exchange for the October Note, Iliad paid a purchase price of $2,500,000. The October
Purchase Agreement also provides for indemnification of Iliad and its affiliates in the event that they incur loss or damage related
to, amount other things, breach by the Company of any of its representations, warranties or covenants under the October Purchase Agreement.
In connection with the October Purchase Agreement and the October Note, the Company entered into a Security Agreement with Iliad, pursuant
to which the obligations of the Company is secured by all of the assets of the Company, excluding the Company's accounts receivable
and intellectual property. Upon an event of default under the October Note, the October Security Agreement entitles the Holder to take
possession of such collateral; provided that Iliad's security interest and remedies with respect to the collateral are junior in
priority to the security interest previously granted by the Company to Iliad in connection with a separate financing entered into by
them on March 25, 2020, for which Iliad holds a senior, first-priority security interest in the same collateral. The Company repaid the
note in January 2022.

 Public
Offering

 On
August 16, 2022, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with institutional
accredited investors (the "Purchasers") pursuant to which the Company offered for sale to the Purchasers an aggregate of
5,164,474 shares (the "Shares") of its common stock at a purchase price of $0.76, in a registered direct offering (the "Registered
Direct Offering"). In a concurrent private placement, the Company also agreed to issue to the investors Series 1 warrants to purchase
5,164,474 shares of common stock that will become exercisable on the date that is six months following the date of issuance of the shares
of common stock in the Registered Direct Offering (the "Exercise Date") and expire on the five year anniversary of the Exercise
Date, at an exercise price of $0.95 per share, and Series 2 warrants to purchase 5,164,474 shares of common stock that will become exercisable
on the Exercise Date and expire on the one year anniversary of the Exercise Date, at an exercise price of $0.95 per share. The Shares
were offered by the Company pursuant to its shelf registration statement on Form S-3 (File No. 333-237455) originally filed with the
SEC on March 27, 2020 (as amended, the "Registration Statement"), which was declared effective on April 3, 2020. The Company
received gross proceeds of both transactions of $3.9 million. The Company intends to use the net proceeds from this offering for working
capital and other general corporate purposes, including financing the costs of implementing the Company's strategic alternative
activities.

 Contractual
Obligations

 The
following table summarizes our contractual obligations by period as of December 31, 2023:

 Payments Due by Period

 Total

 Less Than
 1 Year

 1-3 Years

 4-5 Years

 Finance lease obligations, including interest

 $
 1,916

 $
 1,916

 $
 -

 $
 -

 Operating lease obligations, including interest

 523,356

 134,567

 307,098

 81,691

 $
 525,272

 $
 136,483

 $
 307,098

 $
 81,691

 Impact
of Inflation

 We
believe that inflation had a material impact on our results of operations for the years ended December 31, 2023. Inflation was evident
in staffing and supply costs related to the delivery of patient care. We cannot assure you that future inflation will not have an adverse
impact on our operating results and financial condition.

 ITEM
 7A.

 QUANTITATIVE
 AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Not
applicable for smaller reporting companies.

 ITEM
8.

TO CONSOLIDATED FINANCIAL STATEMENTS

 Page

 Report of Independent Registered Public Accounting Firm (Salberg
& Company, PA, PCAOB ID 106)

 Report of Independent Registered Public Accounting Firm (Cherry Bekaert LLP, PCAOB ID 00 677)

 Consolidated Balance Sheets at December 31, 2023 and 2022

 Consolidated Statements of Operations for the Years Ended December 31, 2023 and 2022

 Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2023 and 2022

 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

 Notes to Consolidated Financial Statements

 Report
of Independent Registered Public Accounting Firm

 To
the Stockholders and the Board of Directors of:

 IMAC

 Opinion
on the Financial Statements

 We
have audited the accompanying consolidated balance sheet of IMAC Holdings, Inc. and Subsidiaries (the "Company") as of December
31, 2023, the related consolidated statements of operations, changes in stockholders' equity (deficit), and cash flows, for the
year then ended, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion,
the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as
of December 31, 2023, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting
principles generally accepted in the United States of America.

 Going
Concern

 The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 3 to the consolidated financial statements, the Company has had historical net losses and net cash used in operating activities,
has discontinued operations and will require additional financing to continue operations in 2024. These matters raise substantial doubt
about the Company's ability to continue as a going concern. Management's Plans in regard to these matters are also described
in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 Basis
for Opinion

 These
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion
on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

 We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to
error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of internal control over financial
reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for
the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.

 Our
audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audit provides a reasonable basis for our opinion.

 Critical
Audit Matters

 The
critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated
financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical
audit matters.

 /s/
Salberg & Company, P.A.

 SALBERG
& COMPANY, P.A.

 We
have served as the Company's auditor since 2024

 Boca
Raton, Florida

 April

 2295
NW Corporate Blvd., Suite 240 Boca Raton, FL 33431-7326

 Phone:
(561) 995-8270 Toll Free: (866) CPA-8500 Fax: (561) 995-1920

 www.salbergco.com
 info@salbergco.com

 Member
National Association of Certified Valuation Analysts Registered with the PCAOB

 Member
CPAConnect with Affiliated Offices Worldwide Member AICPA Center for Audit Quality

 Report
of Independent Registered Public Accounting Firm

 To
the Board of Directors and Shareholders

of IMAC Holdings, Inc.

 Brentwood,
Tennessee

 Opinion
on the Consolidated Financial Statements

 We
have audited the accompanying consolidated balance sheet of IMAC Holdings, Inc. (the "Company"), as of December 31, 2022,
and the related consolidated statements of operations, stockholders' equity, and cash flows for the year then ended, and the related
notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations
and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States
of America.

 The
Company's Ability to Continue as a Going Concern

 The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 3 to the consolidated financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency
that raise substantial doubt about its ability to continue as a going concern. Management's plans, in regard to these matters,
are also described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome
of this uncertainty.

 Basis
for Opinion

 The
consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion
on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

 We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part
of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing
an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our
audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that our audit provides a reasonable basis for our opinion.

 /s/
 Cherry Bekaert LLP

 We
served as the Company's auditor for 2021 and 2022.

 Nashville,
Tennessee

 March
31, 2023, with exception of Notes 10 and 15 for which the date is September 29, 2023, and

 Note
2 for which the date is April 16, 2024

 IMAC

Balance Sheets

31, 2023 and 2022

 2023

 2022

 ASSETS

 Current assets:

 Cash

 $
 221,511

 $
 763,211

 Deferred compensation, current portion

 -

 196,119

 Other assets

 94,711

 191,093

 Note receivable

 731,067

 -

 Assets of discontinued operations

 96,830

 9,679,377

 Total current assets

 1,144,119

 10,829,800

 Property and equipment, net

 -

 5,386

 Other assets:

 Intangible assets, net

 -

 243,750

 Security deposits

 -

 2,670

 Total other assets

 -

 246,420

 Total assets

 $
 1,144,119

 $
 11,081,606

 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 Current liabilities:

 Accounts payable and accrued expenses

 $
 584,055

 $
 568,640

 Liability to issue common stock, current portion

 -

 329,855

 Liabilities of discontinued operations

 1,312,711

 5,531,855

 Total current liabilities

 1,896,766

 6,430,350

 Total liabilities

 1,896,766

 6,430,350

 Commitment and Contingencies – Note 13

 -

 -

 Stockholders' equity (deficit):

 Preferred stock - $ 0.001 par
 value, 5,000,000
 authorized, 2,645 Series B-1 and 1,905 Series B-2
 and nil
 issued and outstanding at December 31, 2023 and 2022

 -

 Common stock; $ 0.001 par value, 2,000,000 authorized; 1,148,321 and 1,100,592 shares issued at December 31, 2023 and 2022, respectively; 1,148,321 and 1,097,843 shares outstanding at December 31, 2023 and 2022, respectively.

 1,149

 1,098

 Additional paid-in capital

 55,184,524

 51,169,898

 Accumulated deficit

 ( 55,938,325
)

 ( 46,519,740
)

 Total stockholders' equity (deficit)

 ( 752,647
)

 4,651,256

 Total liabilities and stockholders' equity (deficit)

 $
 1,144,119

 $
 11,081,606

 See
notes to consolidated financial statements

 IMAC

Statements of Operations

 For
the Years Ended December 31, 2023 and 2022

 2023

 2022

 Patient revenue, net

 $
 -

 $
 -

 Other income

 -

 -

 Management fees

 -

 -

 Total revenue

 -

 -

 Operating expenses:

 Salaries and benefits

 1,348,382

 4,129,451

 Advertising and marketing

 7,732

 74,011

 General and administrative

 1,459,372

 2,465,628

 Depreciation and amortization

 126,138

 654,819

 Loss on disposition or impairment

 3,433,884

 4,513,189

 Total operating expenses

 6,375,508

 11,837,098

 Operating loss

 ( 6,375,508
)

 ( 11,837,098
)

 Other income (expense):

 Interest income

 27,156

 9,839

 Other income (expense)

 ( 2,040
)

 ( 574
)

 Interest expense

 ( 124,966
)

 ( 3,152
)

 Total other income (expenses)

 ( 99,850
)

 6,113

 Net loss before income taxes

 ( 6,475,358
)

 ( 11,830,985
)

 Income taxes

 -

 -

 Net loss from continuing operations

 ( 6,475,358
)

 ( 11,830,985
)

 Discontinued Operations:

 Loss from operations of discontinued component

 ( 1,707,342
)

 ( 2,563,204
)

 Loss on disposal of discontinued operations

 ( 1,235,885

)

 ( 3,918,615

)

 Loss on discontinued operations

 ( 2,943,227

)

 ( 6,481,819

)

 Net loss

 $
 ( 9,418,585
)

 $
 ( 18,312,806
)

 Net loss per share from continuing operations – Basic and diluted

 $
 ( 5.82

)

 $
 ( 12.55

)

 Loss per share from discontinued operations – Basic and diluted

 $
 ( 2.65

)

 $
 ( 6.88

)

 Net loss per share – Basic and diluted

 $
 ( 8.47

)

 $
 ( 19.43

)

 Weighted average common shares outstanding

 Basic and diluted

 1,111,844

 942,463

 See
notes to consolidated financial statements

 IMAC

Statement Changes in Stockholders' Equity (Deficit)

 For
the Years Ended December 31, 2023 and 2022

 Par

 Par

 Paid-In-
 Capital

 Accumulated

 Deficit

 Total

 Preferred Stock

 Common Stock

 Par

 Par

 Additional

 Paid-In-
 Capital

 Accumulated

 Deficit

 Total

 Balance, December 31, 2021

 -

 $

 -

 873,939

 $

 $
 46,159,121

 $
 ( 28,206,934
)

 $
 17,953,061

 Issuance of common stock

 -

 -

 223,904

 4,915,707

 -

 4,915,931

 Issuance of employee stock options

 -

 -

 -

 -

 95,070

 -

 95,070

 Net loss

 -

 -

 -

 -

 -

 ( 18,312,806
)

 ( 18,312,806
)

 Balance, December 31, 2022

 -

 -

 1,097,843

 1,098

 51,169,898

 ( 46,519,740
)

 4,651,256

 Balance, value

 -

 -

 1,097,843

 1,098

 51,169,898

 ( 46,519,740
)

 4,651,256

 Issuance of common stock for cash

 -

 -

 2,725

 16,647

 -

 16,650

 Issuance of fractional shares with reverse stock split

 -

 -

 37,753

 ( 38

)

 -

 -

 Issuance of employee stock options

 -

 -

 -

 -

 40,131

 -

 40,131

 Issuance of RSU's for service

 -

 -

 10,000

 42,890

 -

 42,900

 Issuance of preferred stock net of issuance costs

 4,550

 -

 -

 4,044,996

 -

 4,045,001

 Dividends declared

 -

 -

 -

 -

 ( 130,000
)

 -

 ( 130,000
)

 Net loss

 -

 -

 -

 -

 -

 ( 9,418,585
)

 ( 9,418,585
)

 Balance, December 31, 2023

 4,550

 $

 1,148,321

 $
 1,149

 $
 55,184,524

 $
 ( 55,938,325
)

 $
 ( 752,647
)

 B alance, value

 4,550

 1,148,321

 $
 1,149

 $
 55,184,524

 $
 ( 55,938,325
)

 $
 ( 752,647
)

 See
notes to consolidated financial statements

 IMAC

Statements of Cash Flows

 For
the Years Ended December 31, 2023 and 2022

 2023

 2022

 Year Ended December 31,

 2023

 2022

 Cash flows from operating activities:

 Net loss

 $
 ( 9,418,585
)

 $
 ( 18,312,806
)

 Adjustments to reconcile net loss to net cash from operating activities:

 Depreciation and amortization

 403,593

 1,626,614

 Share based compensation

 83,031

 444,503

 Loss on disposition of assets

 1,475,289

 98,116

 Loss on impairment

 3,519,322

 8,333,687

 Bad debt expense

 431,671

 82,500

 Gain on extinguishment of debt

 ( 94,346

)

 -

 Changes in operating assets and liabilities:

 Accounts receivable, net

 1,449,569

 ( 1,754,406
)

 Other assets

 265,553

 180,178

 Deferred compensation

 196,121

 -

 Security deposits

 205,389

 56,620

 Liability to issue common stock

 ( 329,855

)

 -

 Right of use/lease liability

 ( 346,770
)

 ( 149,631
)

 Accounts payable and accrued expenses

 ( 388,467
)

 ( 820,592
)

 Patient deposits

 ( 241,666
)

 ( 79,251
)

 Net cash used in operating activities

 ( 2,790,151
)

 ( 10,294,468
)

 Cash flows from investing activities:

 Purchase of property and equipment

 -

 ( 331,382
)

 Note receivable

 ( 3,000,000

)

 -

 Proceeds from sale of practices

 224,700

 -

 Proceeds from sale of property and equipment

 1,000,000

 71,400

 Net cash used in investing activities

 ( 1,775,300
)

 ( 259,982
)

 Cash flows from financing activities:

 Proceeds from issuance of common stock

 16,650

 4,472,219

 Proceeds from issuance of preferred stock, net of offering costs

 4,045,000

 -

 Payments on notes payable

 ( 10,350
)

 ( 254,488
)

 Payments on finance lease obligation

 ( 27,549
)

 ( 19,050
)

 Net cash from financing activities

 4,023,751

 4,198,681

 Net (decrease) in cash

 ( 541,700
)

 ( 6,355,769
)

 Cash, beginning of year

 763,211

 7,118,980

 Cash, end of year

 $
 221,511

 $
 763,211

 Supplemental cash flow information:

 Interest paid

 $
 129,981

 $
 14,191

 Income Tax

 $
 -

 $
 -

 Non-cash investing and financing activities:

 Accrued dividends

 $
 130,000

 $
 -

 See
notes to consolidated financial statements

 Note
1 – Description of Business

 IMAC
Holdings, Inc. is a holding company for IMAC Regeneration Centers, The Back Space retail stores and our Investigational New Drug
division. IMAC Holdings, Inc. and its affiliates (collectively, the "Company") provided movement, orthopedic and
neurological therapies through its chain of IMAC Regeneration Centers. Through its consolidated and equity owned entities, its
outpatient medical clinics provided conservative, non-invasive medical treatments to help patients with back pain, knee pain, joint
pain, ligament and tendon damage, and other related soft tissue conditions. As of December 31, 2023, the Company has sold or
discontinued patient care at all our locations and has accordingly presented this component as discontinued operations. (See Note
2.) The Company delivered sports medicine treatments without opioids. The BackSpace operated healthcare centers specializing in
chiropractic and spinal care services inside Walmart retail locations. The Company's Investigational New Drug division
conducted a clinical trial for its investigational compound utilizing umbilical cord-derived allogenic mesenchymal stem cells for
the treatment of bradykinesia due to Parkinson's disease.

 Planned Merger

 On May 23, 2023, IMAC Holdings, Inc., a Delaware corporation
(Nasdaq: BACK) (the "Company") entered into an Agreement and Plan of Merger (the "Merger Agreement") with Theralink
Technologies, Inc. (OTC: THER), a Nevada corporation ("Theralink"), and IMAC Merger Sub, Inc., a Delaware corporation and
a newly formed, wholly owned subsidiary of the Company ("Merger Sub"). Upon the terms and subject to the conditions set forth
in the Merger Agreement, Merger Sub will merge with and into Theralink (the "Merger"), with Theralink continuing as the surviving
entity (the "Surviving Entity") and a wholly owned subsidiary of the Company. On May 22, 2023, the board of directors of the
Company, and the board of directors of Theralink unanimously approved the Merger Agreement.

 At the effective time of the Merger (the "Effective
Time"), each share of Theralink's common stock ("Theralink Common Stock") and each share of Theralink's
preferred stock (together with the Theralink Common Stock, "Theralink Shares") issued and outstanding as of immediately prior
to the Effective Time will be converted into and will thereafter represent the right to receive a portion of a share of the Company's
common stock (the "Company Shares") such that the total number of Company Shares issued to the holders of Theralink Shares
shall equal 85% of the total number of Company Shares outstanding as of the Effective Time (the "Merger Consideration").

 At the Effective Time, each award of Theralink stock
options (each, a "Theralink Stock Option"), whether or not then vested or exercisable, that is outstanding immediately prior
to the Effective Time, will be assumed by the Company and converted into a stock option relating to a number of Company Shares equal to
the product of: (i) the number of shares of Theralink Common Stock subject to such Theralink Stock Option; and (ii) the ratio which results
from dividing one share of Theralink Common Stock by the portion of a Company Share issuable for such share as finally determined at the
Effective Time (the "Exchange Ratio"), at an exercise price per Company Share (rounded up to the nearest whole cent) equal
to the quotient obtained by dividing (A) the exercise price per share of Theralink Common Stock of such Theralink Stock Option by (B)
the Exchange Ratio.

 The Company and Theralink have each agreed, subject
to certain exceptions with respect to unsolicited proposals, not to directly or indirectly solicit competing acquisition proposals or
to enter into discussions concerning, or provide confidential information in connection with, any unsolicited alternative acquisition
proposals. However, if such party receives an unsolicited, bona fide acquisition proposal that did not result from a material breach of
the non-solicitation provisions of the Merger Agreement and the Company's or Theralink's board of directors, or any committee
thereof, as applicable, concludes, after consultation with its financial advisors and outside legal counsel, that such unsolicited, bona
fide acquisition proposal constitutes, or could reasonably be expected to result in, a superior offer, such party may furnish non-public
information regarding it or any of its subsidiaries and engage in discussions and negotiations with such third party in response to such
unsolicited, bona fide acquisition proposal; provided that each party provides notice and furnishes any non-public information
provided to the maker of the acquisition proposal to each party substantially concurrently with providing such non-public information
to the maker of the acquisition proposal.

 The completion of the Merger is subject to the satisfaction
or waiver of customary closing conditions, including: (i) adoption of the Merger Agreement by holders of a majority of the outstanding
Theralink Shares; (ii) approval of the issuance of Company Shares in connection with the Merger by a majority of the outstanding shares
of the Company's common stock; (iii) absence of any court order or regulatory injunction prohibiting completion of the Merger; (iv)
expiration or termination of (a) all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR
Act") and (b) any agreement with any governmental entity not to consummate the transactions contemplated by the Merger Agreement;
(v) effectiveness of the Company's registration statement on Form S-4 to register the Company Shares to be issued in the Merger;
(vi) subject to specified materiality standards, the accuracy of the representations and warranties of the other party; (vii) the authorization
for listing of Company Shares to be issued in the Merger on Nasdaq; (viii) compliance by the other party in all material respects with
its covenants; and (ix) the completion of satisfactory due diligence by both parties.

 The Company and Theralink have each made customary
representations and warranties in the Merger Agreement. The Merger Agreement also contains customary covenants and agreements, including
covenants and agreements relating to (i) the conduct of each of the Company's and Theralink's business between the date of
the signing of the Merger Agreement and the closing date of the Merger and (ii) the efforts of the parties to cause the Merger to be completed,
including actions which may be necessary to cause the expiration or termination of any waiting periods under the HSR Act.

 Note
2 – Summary of Significant Accounting Policies

 Basis
of Presentation – Discontinued Operations

 In accordance with ASC 205-20 "Discontinued
Operations" establishes that the disposal or abandonment of a component of an entity or a group of components of an entity should
be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's
operations and financial results. As a result, the Company's component's results of operations have been classified as discontinued
operations on a retrospective basis for all periods presented. Accordingly, the results of operations of this component, for all periods,
are separately reported as "discontinued operations" on the consolidated statements of operations.

 In 2023, the Company decided to
discontinue business activities related to its underperforming clinic locations and BackSpace retail stores. As of December 31,
2023, all locations had been closed and all assets had been sold. The major classes of assets and liabilities of discontinued
operations on the consolidated balance sheet are as follows:

 Schedule
of Discontinued Operations on Consolidated Balance Sheet and Income Statement

 2023

 2022

 31,

 2023

 2022

 receivable, net

 $
 -

 $
 2,881,239

 Other
 current assets

 1,028

 176,265

 and equipment, net

 1,579,327

 Intangible assets, net

 -

 1,121,707

 Other
 assets

 95,040

 3,920,839

 Net
assets from discontinued operations

 $
 96,830

 $
 9,679,377

 Liabilities

 payable and accrued expenses

 $
 860,221

 $
 1,134,099

 deposits

 -

 241,666

 Other
 current liabilities

 108,088

 1,439,571

 Other
 liabilities

 344,402

 2,716,519

 Net
liabilities from discontinued operations

 $
 1,312,711

 $
 5,531,855

 The following table shows the results of loss from discontinued operations:

 2023

 2022

 31,

 2023

 2022

 revenues, net

 $
 5,197,352

 $
 16,186,256

 Operating
 expenses

 6,498,928

 18,710,263

 Other
 expenses

 1,641,651

 3,957,812

 Total
costs and expenses

 8,140,579

 22,668,075

 Loss
from discontinued operations, net of income taxes

 $
 ( 2,943,227
)

 $
 ( 6,481,819
)

 Principles
of Consolidation

 The
accompanying consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP")
in the United States of America ("U.S.") as promulgated by the Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") and with the rules and regulations of the U.S. Securities and Exchange Commission
("SEC").

 The
accompanying consolidated financial statements include the accounts of IMAC Holdings, Inc. and the following entities which are consolidated
due to direct ownership of a controlling voting interest or other rights granted to us as the sole general partner or managing member
of the entity: IMAC Regeneration Center of St. Louis, LLC ("IMAC St. Louis"), IMAC Management Services, LLC ("IMAC
Management"), IMAC Regeneration Management, LLC ("IMAC Texas") IMAC Regeneration Management of Nashville, LLC ("IMAC
Nashville") IMAC Management of Illinois, LLC ("IMAC Illinois"), Advantage Hand Therapy and Orthopedic Rehabilitation,
LLC ("Advantage Therapy"), IMAC Management of Florida, LLC ("IMAC Florida"), Louisiana Orthopaedic & Sports
Rehab ("IMAC Louisiana") and The Back Space, LLC ("BackSpace"); the following entity which is consolidated with
IMAC Regeneration Management of Nashville, LLC due to control by contract: IMAC Regeneration Center of Nashville, PC ("IMAC Nashville
PC"); the following entities which are consolidated with IMAC Management of Illinois, LLC due to control by contract: Progressive
Health and Rehabilitation, Ltd., Illinois Spine and Disc Institute, Ltd. and Ricardo Knight, P.C.; the following entities which are consolidated
with IMAC Management Services, LLC due to control by contract: Integrated Medicine and Chiropractic Regeneration Center PSC ("Kentucky
PC") and IMAC Medical of Kentucky, PSC ("Kentucky PSC"); the following entities which are consolidated with IMAC Florida
due to control by contract: Willmitch Chiropractic, P.A. and IMAC Medical of Florida, P.A.; the following entity which is consolidated
with Louisiana Orthopaedic & Sports Rehab due to control by contract: IMAC Medical of Louisiana, a Medical Corporation; and the following
entities which are consolidated with BackSpace due to control by contract: ChiroMart LLC, ChiroMart Florida LLC, and ChiroMart Missouri
LLC.

 Use
of Estimates

 The
preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses at the date and for the periods that the consolidated
financial statements are prepared. On an ongoing basis, the Company evaluates its estimates, including those related to contractual
insurance adjustments on revenues and provisions for doubtful accounts, impairment of long-lived assets including intangible assets, valuation
of loans receivable and valuation of stock-based compensation. The Company bases its estimates on historical experience and
on various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from
those estimates.

 Reclassifications

 Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on
the reported results of operations. Specifically we retrospectively reclassified certain amounts in 2022 to present as discontinued operations.

Recognition

 The
Company's patient service revenue was derived from non-surgical procedures performed at our outpatient medical clinics. The fees
for such services were billed either to the patient or a third-party payer, including Medicare.

 The
Company recognized service revenues based upon the estimated amounts the Company expects to be entitled to receive from patients and
third-party payers. Estimates of contractual adjustments are based upon the payment terms specified in the related contractual agreements.
The Company also records estimated implicit price concessions (based primarily on historical collection experience) related to uninsured
accounts to record these revenues at the estimated amounts expected to be collected.

 Starting
in January 2020, the Company implemented wellness maintenance programs on a subscription basis. There were four membership plans
offered with different levels of service for each plan. The Company recognized membership revenue on a monthly basis. Enrollment in the
wellness maintenance program can occur at any time during the month and can be dis-enrolled at any time.

 Starting
in June 2021, the Company introduced BackSpace and began offering outpatient chiropractic and spinal care services as well as memberships
services in Walmart retail locations. The fees for such services were paid and recognized as incurred.

 Starting
in September 2022, the Company introduced hormone replacement therapy "HRT" and medical weight loss programs. The Company
recognized HRT and medical weight loss revenue as the services are provided.

 Other
management service fees are derived from management services where the Company provided billings and collections support to the clinics
and where management services were provided based on state specific regulations known as the corporate practice of medicine ("CPM").
Under the CPM, a business corporation is precluded from practicing medicine or employing a physician to provide professional medical
services. In these circumstances, the Company provides all administrative support to the physician-owned PC through a LLC. The PC is
consolidated due to control by contract (an "MSA" – Management Services Agreement). The fees we derive from these management
arrangements are either based on a predetermined percentage of the revenue of each clinic or a percentage mark up on the costs of the
LLC. The company recognized other management service revenue in the period in which services were rendered. These revenues are earned
by IMAC Nashville, IMAC Management, IMAC Illinois, IMAC Florida, IMAC Louisiana and the Back Space and are eliminated in consolidation
to the extent owned.

Deposits

deposits were derived from patient payments in advance of services delivered. Our service lines included traditional and regenerative medicine.
Regenerative medicine procedures are rarely paid by insurance carriers; therefore, the Company typically requires up-front payment from
the patient for regenerative services and any co-pays and deductibles as required by the patient specific insurance carrier. For some
patients, credit is provided through an outside vendor. In this case, the Company is paid from the credit card company and the risk is
transferred to the credit card company for collection from the patient. These funds were accounted for as patient deposits until the procedures
were performed at which point the patient deposit was recognized as patient service revenue.

 Fair
Value of Financial Instruments

 The
carrying amount of accounts receivable and accounts payable approximate their respective fair values due to the short-term nature. The
carrying amount of the line of credit and note payable approximates fair values due to their market interest rates. Financial instruments
that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable.

 Variable
Interest Entities

 Certain
states prohibit the "corporate practice of medicine," which restricts business corporations from practicing medical care
by exercising control over clinical decisions by doctors. In states which prohibit the corporate practice of medicine, the Company entered
into long-term management agreements with professional corporations ("PCs") that are owned by licensed doctors, which, in
turn employ or contract with doctors who provide professional care in its clinics. Under these management agreements with PCs, the Company
provided, on an exclusive basis, all non-clinical services of the practice.

 The
consolidated financial statements include the accounts of variable interest entities ("VIE") in which the Company is the
primary beneficiary under the provisions of the FASB Accounting Standards Codification 810, " Consolidation ". The Company
has the power to direct the activities that most significantly impact a VIE's economic performance. Additionally, the Company would
absorb the substantially all of the expected losses from any of these entities should such expected losses occur. As of December 31,
2023 and 2022, the Company's consolidated VIE's include 12 PCs and 13 PCs respectively.

 The
total assets (excluding goodwill and intangible assets, net) of the consolidated VIEs included in the accompanying consolidated balance
sheets as of December 31, 2023 and 2022, were approximately ($ 3.9) million and $ 1.8 million respectively, and the total liabilities of
the consolidated VIEs were approximately $ 0.2 million and $ 0.5 million, respectively.

 Cash
and Cash Equivalents

 The
Company considers all short-term investments with an original maturity of three months or less to be cash equivalents. The Company had
 no cash equivalents at December 31, 2023 and 2022.

Receivable

receivable primarily consists of amounts due from third-party payers (non-governmental), governmental payers and private pay patients
and is recorded net of allowances for doubtful accounts and contractual discounts. The Company's ability to collect outstanding
receivables is critical to its results of operations and cash flows. Accordingly, accounts receivable reported in the Company's
consolidated financial statements is recorded at the net amount expected to be received.

 The
Company's accounts receivable from third-party payers are recorded net of estimated contractual adjustments and allowances
from third-party payers, which are estimated based on the historical trend of the Company's facilities' cash collections
and contractual write-offs, accounts receivable aging, established fee schedules, relationships with payers and procedure
statistics. While changes in estimated reimbursement from third-party payers remain a possibility, the Company expects that any such
changes would be minimal and, therefore, would not have a material effect on the Company's consolidated financial condition or
results of operations. The Company's collection policies and procedures are based on the type of payor, size of claim and
estimated collection percentage for each patient account. The Company analyzes accounts receivable at each of the facilities to
ensure the proper collection and aged category. The operating systems generate reports that assist in the collection efforts by
prioritizing patient accounts. Collection efforts include direct contact with insurance carriers or patients and written
correspondence.

 Allowance
for Contractual, Other Discounts and Doubtful Accounts

 Management
estimates the allowance for contractual and other discounts based on its historical collection experience and contracted relationship
with the payers. The services authorized and provided and related reimbursement are often subject to interpretation and negotiation that
could result in payments that differ from the Company's estimates.

 In June 2016, the FASB issued Accounting Standards
Update (ASU) 2016-13, "Financial Instruments – Credit Losses." This ASU added a new impairment model (known as the current
expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance,
an entity recognizes as an allowance its estimate of expected credit losses. As a result, the Company changed its accounting policy for
allowance for doubtful accounts using an expected losses model rather than using incurred losses. The new model is based on the credit
losses expected to arise over the life of the asset based on the Company's expectations as of the balance sheet date through analyzing
historical customer data as well as taking into consideration current economic trends.

 As a smaller reporting Company pursuant to Rule 12b-2
of the Securities Exchange Act of 1934, as amended, these changes became effective for the Company on January 1, 2023. The adoption of
ASU 2016-13 did not have a material financial impact on the Company's consolidated financial statements.

 The roll forward of the allowance for doubtful accounts
for the year ended December 31, 2023 and 2022 was as follows:

 Schedule of Allowance for Doubtful Accounts

 December 31, 2023

 December 31, 2022

 Beginning balance

 $
 163,479

 $

 80,979

 Bad debt expense

 431,671

 82,500

 Write-offs

 ( 155,852
)

 -

 Ending balance

 $
 439,298
 *

 $

 163,479

 *

 *
 As discussed in Note 1, the Company decided to discontinue business activities related to
its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed amount.

 Note
Receivable

 Note Receivable
is a subordinated promissory note and a convertible promissory note that the Company's merger partner, Theralink Technologies,
Inc. ("THER") entered into during July of 2023 and August of 2023, respectively. Each note is due to be repaid within one
year and contains interest compounding at 6.0 %.
The convertible promissory note also contains a convertible feature at the option of the Company into THER common stock at a fixed price
of $ 0.00313 per share. The total amount loaned between
the two notes was $ 3.0 million. The Company determined
the fair value of the notes and related accrued interest owed as of December 31, 2023 was approximately $ 0.7
 million (their principal balance less a credit loss allowance under ASU 2016-13 of approximately $ 2.3
 million which was recorded as an impairment of assets in 2023) given the current financial position of THER and their perceived
lack of ability to re-pay these notes as of December 31, 2023.

and Equipment

and equipment are stated at cost, less accumulated depreciation. Additions and improvements to property and equipment are capitalized
at cost. Depreciation of owned assets are computed using the straight-line method over the estimated useful lives and amortization of
leasehold improvements are computed using the straight-line method over the shorter of the estimated useful lives of the related assets
or the lease term. The cost of assets sold or retired, and the related accumulated depreciation are removed from the accounts and any
resulting gains or losses are reflected in other income (expense) for the year. Expenditures for maintenance and repairs are charged
to expense as incurred.

 Intangible

 The
Company capitalizes the fair value of intangible assets acquired in business combinations. Intangible assets are amortized on a
straight-line basis over their estimated economic useful lives, generally the contract term. The Company performs valuations of
assets acquired and liabilities assumed on each acquisition accounted for as a business combination and allocates the purchase price
of each acquired business to its respective net tangible and intangible assets. The Company records an impairment loss when the
carrying amount of the asset is not recoverable and exceeds its fair value. An impairment loss of $ 0.06
million was recorded in January 2023 related to the sale of Louisiana. An impairment loss of $ 0.06
million was recorded in February 2023 related to the sale of BackSpace. An impairment loss of $ 0.27
million was recorded in April 2023 related to the Illinois asset sale. An impairment loss of $ 0.613
million was recorded in October 2023 related to our Kentucky asset sale. An impairment loss of $ 0.24
million was recorded in December 2023 related to the Company's investigational new drug. In March 2022 the Company decided to
close a clinic in Florida with a total intangible carrying amount of approximately $ 34,000,
which was written off as impaired. As a result, the Company recorded a noncash impairment loss for this amount during the three
months ended March 31, 2022. Due to a significant drop in share price in the three months ended September 30, 2022, the Company
determined that a triggering event occurred. It was determined that there was an impairment loss of $ 2,128,000
on the IMAC Illinois MSA and $ 1,672,000
on the IMAC Kentucky MSA. In the three months ended December 31, 2022, the Company recorded an impairment loss of $ 1,000
on the IMAC Florida MSA. An impairment loss of $ 0.12
million and $ 0.03
million was charged to discontinued operations for the years ended December 31, 2023 and 2022. The remaining impairment loss
was charged to continuing operations.

 Goodwill

 Our
goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired and liabilities assumed
in business combinations. The goodwill generated from the business combinations is primarily related to the value placed on the employee
workforce and expected synergies. Judgment is involved in determining if an indicator or change in circumstances relating to impairment
has occurred. Such changes may include, among others, a significant decline in expected future cash flows, a significant adverse change
in the business climate, and unforeseen competition.

 The
goodwill test is performed at least annually, or more frequently if events or changes in circumstances indicate that the asset might
be impaired. The annual impairment test includes an option to perform a qualitative assessment of whether it is more likely than not
that a reporting unit's fair value is less than its carrying value; the qualitative test may be performed prior to, or as an alternative
to, performing a quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, the Company determines
that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then the Company is required
to perform the quantitative goodwill impairment test. Otherwise, no further analysis is required.

 The
Company operates under one reporting unit. The quantitative impairment test involves the comparison of the fair value of the reporting
unit to the Company's carrying value. The Company calculates the fair value of each reporting unit using either (i) a discounted
cash flows analysis that converts future cash flow amounts into a single discounted present value amount or (ii) a market approach. The
Company assesses the valuation methodology based upon the relevance and availability of the data at the time that the valuation is performed.
The Company compares the estimate of fair value for the reporting unit to the carrying value of the reporting unit. If the carrying value
is greater than the estimate of fair value, an impairment loss will be recognized in the amount of the excess.

 The
Company performs its annual impairment test during the fourth quarter of the fiscal year. For the year ended December 31, 2022 the Company
elected not to perform a qualitative impairment test and instead went straight to a quantitative assessment. As a result, the Company
concluded that it was more-likely-than-not that the carrying value would be greater than the estimated fair value as of December 31,
2022. In addition, given the lack of viable long-term solvency it was determined that it was appropriate to fully impair goodwill. A
goodwill impairment loss of $ 4.5 million was recorded as of December 31, 2022.

 Long-Lived

 Long-lived
assets such as property and equipment, operating lease assets and intangible assets are evaluated for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable.

 Some
of the events or changes in circumstances that would trigger an impairment test include, but are not limited to:

 the Company's expectation
 to dispose of long-lived assets before the end of their estimated useful lives, even though the assets do not meet the criteria to
 be classified as "Held for Sale";

 significant changes in the Company's stock price
 per share;

 significant negative industry or economic trends.

 Advertising
and Marketing

 The
Company uses advertising and marketing to promote its services. Advertising and marketing costs are expensed as incurred. Advertising
and marketing expense was approximately $ 7,732 and $ 74,011 *
for the years ended December 31, 2023 and 2022, respectively.

 *
 As discussed in Note 1, the Company decided to discontinue business activities related to
its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed amount.

 Net
Loss Per Share

 Basic
net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted-average number of common
shares outstanding during the year. Diluted net loss per common share is determined using the weighted-average of common shares outstanding
during the year, adjusted for the dilutive effect of common stock equivalents, consisting of the conversion option embedded in convertible
debt. The weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would have an
anti-dilutive effect. Dilutive shares not included in the computation of dilutive loss per share because the effect would be anti-dilutive
due to the Company's net loss were as follows:

 Schedule
of Net Loss Per Share

 31,

 2023

 2022

 Stock
 options

 1,312

 11,216

 RSUs

 -

 24,029

 Warrants

 2,474,284

 398,582

 Preferred
 shares B-1

 1,437,500

 -

 Preferred
 shares B-2

 1,035,326

 -

 Net
loss

 4,948,422

 433,827

 Income
Taxes

 Income
taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax basis and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect
on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 Deferred
tax assets are required to be reduced by a valuation allowance to the extent that, based on the weight of available evidence, it is more
likely than not that the deferred tax assets will not be realized.

 Note
3 – Capital Requirements, Liquidity and Going Concern Considerations

 The
Company's consolidated financial statements are prepared in accordance with GAAP and includes the assumption of a going
concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
However, as shown in the accompanying consolidated financial statements, the Company has sustained substantial losses from
operations since inception and has discontinued its operations as of December 31, 2023 which raises substantial doubt regarding the
Company's ability to continue as a going concern for twelve months from the issuance date of this report. The Company had a
working capital deficit of approximately ($ 0.8)
million at December 31, 2023. The Company had a net loss of approximately $ 9.4 million
for the year ended December 31, 2023, and used cash in operations of approximately $ 2.8 million
for the year ended December 31, 2023. The Company expects to continue to incur expenditures for working capital.

 Management's
plans are to merge with an operating company or acquire a new business (See Note 1). Management recognizes that the Company may need
to obtain additional resources to successfully implement its business plans. No assurances can be given that we will be successful.
If management is not able to timely and successfully raise additional capital if needed, the implementation of the Company's
business plan, financial condition and results of operations will be materially affected. These consolidated financial statements do
not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of
liabilities that might be necessary should the Company be unable to continue as a going concern.

 Note
4 – Concentration of Credit Risks

 Cash

 The
Company maintains its cash in accounts at financial institutions, which may, at times, exceed federally-insured limits of $ 250,000. No amounts were in excess of FDIC limits at December 31, 2023.

and Accounts Receivable Concentration

 As
of December 31, 2023 and 2022, the Company had discontinued operations revenue and accounts receivable concentration related to
payments from Medicare as outlined in the table below:

 Schedule
of Concentration Risk

 2023

 2022

 % of

 % of
 Receivable

 % of

 % of
 Receivable

 Medicare payments

 %

 %

 %

 %

 Note
5 – Accounts Receivable

receivable consisted of the following at December 31:

 Schedule
of Accounts Receivable

 2023 *

 2022 *

 Accounts receivable, net of contractual adjustments

 $
 439,298

 $
 3,044,718

 Less: allowance for doubtful accounts

 ( 439,298
)

 ( 163,479
)

 Accounts receivable, net

 $
 -

 $
 2,881,239

 *
 As discussed in Note 1, the Company decided to discontinue business activities
related to its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed
amount.

 Note
6 – Property and Equipment

and equipment consisted of the following at December 31:

 Schedule of Property and Equipment

 Estimated

 Useful Life in Years

 2023 *

 2022 *

 Leasehold improvements

 Shorter of asset or lease term

 $
 -

 $
 2,233,603

 Equipment

 1.5 – 10

 2,820,166

 Total property and equipment

 5,053,769

 Less: accumulated depreciation

 -

 ( 3,476,977
)

 Property and equipment, excluding
 construction in progress

 1,576,792

 Construction in progress

 -

 7,922

 Total property and equipment, net

 $

 $
 1,584,714

 Depreciation
was $ 282,458 and $ 867,364 *
for the years ended December 31, 2023 and 2022, respectively.*

 *
 As discussed in Note 1, the Company decided to discontinue business activities
related to its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed
amount.

 Note
7 – Intangibles Assets and Goodwill

 The Company's intangible assets and goodwill consisted of the following at December 31, 2023 and 2022:

 Schedule of Intangible Assets and Goodwill

 December 31, 2023

 Estimated

 Accumulated
 Amortization and

 Useful Life

 Cost

 Impairment

 Net

 Intangible assets:

 Management service agreements

 10 years

 $
 -

 $
 -

 $
 -

 Non-compete agreements

 3 years

 -

 -

 -

 Intellectual property agreements

 2 years

 -

 -

 -

 Brand development

 15 years

 -

 -

 -

 Definite lived assets

 -

 -

 -

 Research and development

 -

 -

 -

 Goodwill

 -

 -

 -

 Total intangible assets and goodwill

 $
 -

 $
 -

 $
 -

 31, 2022*

 Estimated

 Accumulated

 Useful
 Life

 Cost

 Amortization

 Net

 Intangible assets:

 Management service
 agreements

 10 years

 $

 7,940,398

 $

 ( 6,939,916

)

 $

 1,000,482

 Non-compete agreements

 3 years

 391,000

 ( 359,125

)

 31,875

 Customer lists

 3 years

 77,000

 ( 48,125

)

 28,875

 Brand
 development

 years

 69,071

 ( 8,596

)

 60,475

 Definite lived assets

 8,477,469

 ( 7,355,762

)

 1,121,707

 Research and development

 243,750

 -

 243,750

 Goodwill

 4,499,796

 ( 4,499,796

)

 -

 Total intangible assets
 and goodwill

 $

 13,221,015

 $

 ( 11,855,558

)

 $

 1,365,457

 *
 As discussed in Note 1, the Company decided to discontinue business activities related to
its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed amount.

 In January 2023, the Company sold the Louisiana Market
which had a total intangible carrying amount of approximately $ 61,000 which was written off as impaired.

 In February 2023, the Company sold the BackSpace retail
clinics which had a total intangible carrying amount of approximately $ 60,000 which was written off as impaired.

 On April 1, 2023, the Company executed an agreement
to sell all the assets of Ricardo Knight, PC which had a total intangible carrying amount of approximately $ 265,000 which was written
off as impaired.

 In October 2023, the Company executed an agreement
to sell all the assets of the Kentucky Market which has a total intangible carrying amount of approximately $ 614,000 which was written
off as impaired.

 In December, 2023, the Company determined that the
intangible asset for the investigational new drug which had a total intangible carrying amount of approximately $ 244,000 was impaired
and was written off.

 In
March 2022 the Company decided to close a clinic in Florida with a total intangible carrying amount of approximately $ 34,000, which was
written off as impaired. As a result, the Company recorded a noncash impairment loss for this amount during the three months ended March
31, 2022. Due to a significant drop in share price in the three months ended September 20, 2022, the Company determined that a triggering
event occurred. It was determined that there was an impairment loss of $ 2,128,000 on the IMAC Illinois MSA and $ 1,672,000 on the IMAC
Kentucky MSA.

 The
Company performs its annual impairment test during the fourth quarter of the fiscal year. For the year ended December 31,
2023, the Company closed or sold all locations. The Company performed a qualitative impairment test and based on the totality of
information available for the reporting units, the Company concluded that it was more-likely-than-not that the carrying value is
greater than the estimated fair values of the reporting units at December 31, 2023. An intangible impairment loss of approximately
$ 1.2 million was recorded in 2023.

 For the year ended December 31, 2022, the Company
performed a qualitative impairment test and, based on the totality of information available for the reporting units, the Company concluded
that it was more-likely-than-not that the carrying value is greater than the estimated fair values of the reporting units as of December
31, 2022. A goodwill impairment loss of $ 4.5 million was recorded in December 2022 related to our Florida, Tennessee, Missouri and Louisiana
acquisitions.

 Amortization
expense was $ 121,135
and $ 759,250 *
for the years ended December 31, 2023 and 2022, respectively.

 *
 As discussed in Note 1, the Company decided to discontinue business activities related to
its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed amount.

 Note
8 – Operating Leases

 On
January 1, 2019, the Company adopted Topic ASC 842 using the modified retrospective method applied to leases that were in place at January
1, 2019. The Company's leases consist of operating leases that relate to real estate rental agreements. Most of the value of the
Company's lease portfolio upon adoption relates to real estate lease agreements that were entered into starting March 2017.

 Discount
Rate Applied to Property Operating Lease

 To
determine the present value of minimum future lease payments for operating leases at January 1, 2019, the Company was required to estimate
a rate of interest that we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments
in a similar economic environment (the "incremental borrowing rate" or "IBR").

 The
Company determined the appropriate IBR by identifying a reference rate and making adjustments that take into consideration financing
options and certain lease-specific circumstances. For the reference rate of leases added during the years ended December 31, 2023
and December 31, 2022, the Company used a weighted average interest rate.

 Total
operating lease cost

 Individual
components of the total lease cost incurred by the Company is as follows:

 Schedule of Operating Lease Cost

 2023

 31,
 2022*

 Operating lease expense

 $
 933,085

 $
 1,622,466

 Minimum
rental payments under operating leases are recognized on a straight light basis over the term of the lease.

 Maturity
of operating leases

 The
amount of future minimum lease payments under operating are as follows:

 Schedule of Future Minimum Lease Payments

 Operating
 Leases

 Undiscounted future minimum lease payments:

 2024

 $
 134,567

 2025

 138,104

 2026

 95,171

 2027

 73,823

 2028

 73,823

 Thereafter

 7,868

 Total

 523,356

 Amount representing imputed interest

 ( 72,591
)

 Total operating lease liability

 450,765

 Current portion of operating lease liability

 ( 106,363
)

 Operating lease liability, non-current

 $
 344,402
 *

 *
 As discussed in Note 1, the Company decided to discontinue business activities
related to its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed
amount.

 Note
9 – Notes Payable

 Set
forth below is a summary of the Company's outstanding debt as of December 31, 2023 and December 31, 2022:

 Schedule of Notes Payable

 2023

 2022 *

 Note payable to a financial institution in the amount of $ 200,000 dated November 15, 2017. The note requires 66 consecutive monthly installments of $ 2,652 including principal and interest at 5 %, with a balloon payment of $ 60,000 which was paid on June 15, 2018. The note matures on May 15, 2023, and is secured by the personal guarantees of certain Company executives.

 $
 -

 $
 13,093

 Note payable to a financial institution in the amount of $ 131,400 dated August 1, 2016. The note requires 120 monthly installments of $ 1,394 including principal and interest at 5 %. The note matures on July 1, 2026, and is secured by a letter of credit.

 -

 54,763

 $ 112,800 payable to a landlord of Advantage Therapy, LLC pursuant to a lease dated March 1, 2019. The debt is payable in 60 monthly installments of $ 2,129, including principal and interest at 5 %. The debt matures on June 1, 2024.

 -

 36,840

 Note payable to a financial institution in the amount of $ 140,000, dated September 25, 2019. The note requires 36 consecutive monthly installments of $ 4,225 including principal and interest at 5.39 %. The note matures on September 19, 2022 and is secured by a personal guarantee of the Vice President of Business Development of the Company.

 -

 -

 Note payable in the amount of $ 2,690,000, dated October 29, 2020. The note is payable on or before April 29, 2022. The interest on the note accrues at a rate of 7 % per annum and is payable on the maturity date or otherwise in accordance with the note.

 -

 -

 Notes payable

 -

 104,696

 Less: current portion:

 -

 ( 51,657
)

 Notes payable, net of
 current portion

 $
 -

 $
 53,039

 *
 As discussed in Note 1, the Company decided to discontinue business activities
related to its underperforming clinic locations and BackSpace retail stores. See Note 2 for the resulting impact on this previous disclosed
amount.

 Note
10 – Shareholders' Equity (Deficit)

 Reverse Stock Split

 Effective on September 7, 2023, the Company implemented
a 30-for-1 reverse stock split of the issued and outstanding shares of common stock. Under the reverse split, every thirty shares of outstanding
shares issued and outstanding were automatically converted into one share of ordinary share, with a par value of $ 0.001 each. Except as
otherwise indicated, all information in the consolidated financial statements concerning share and per share data reflects the
retroactive effect to the 30-for-1 reverse stock split.

 2018
Incentive Compensation Plan

 The
Company's board of directors and holders of a majority of outstanding shares approved and adopted the Company's 2018 Incentive
Compensation Plan ("2018 Plan") in May 2018, reserving the issuance of up to 2,000,000 shares of common stock (subject to
certain adjustments) upon exercise of stock options and grants of other equity awards. The 2018 Plan provides for the grant of incentive
stock options ("ISOs"), nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock
unit awards, performance-based stock awards, other forms of equity compensation and performance cash awards. ISOs may be granted only
to employees. All other awards may be granted to employees, including officers, and to the Company's non-employee directors and
consultants, and affiliates.

 Stock
Options

 During
2023 and 2022, the Company did not issue any new stock options. Most options vested over a period of four
years, with 25 %
vesting after one year and the remaining 75 %
vesting in equal monthly installments over the following 36 months and are exercisable for a period of ten years. Stock based compensation for stock options is
estimated at the grant date based on the fair value calculated using the Black-Scholes method. The per-share fair values of these
options is calculated based on the Black-Scholes-Merton pricing model.

 The
information below summarizes the stock options:

 Schedule of Stock Option Activity

 Weighted
 Average
 Exercise Price

 Weighted
 Average
 Remaining
 Contractual
 Life

 Outstanding at December 31, 2021

 12,235

 $
 96.90

 3.58

 -

 -

 -

 Exercised

 -

 -

 -

 Cancelled

 ( 1,020
)

 97.80

 1.65

 Outstanding at December 31, 2022

 11,216

 $
 96.90

 3.75

 -

 -

 -

 Exercised

 -

 -

 -

 Cancelled

 ( 9,904

)

 92.40

 2.77

 Outstanding at December 31, 2023

 1,312

 $
 118.33

 1.35

 Restricted
Stock Units

 On
February 21, 2022, the Company granted 3,333 RSUs to an executive that vested immediately.

 On October 15, 2022, the Company granted an aggregate of 10,000 RSUs to
Board members with these RSUs vesting immediately.

 On May 19, 2023, the Company granted
an aggregate of 10,000 RSUs to Board members with these RSU's vesting immediately with a fair value of $ 42,900 based on the grant date stock price.

 Schedule of Restricted Stock Units

 Weighted
 Average Grant
 Date Fair Value

 Outstanding at December 31, 2021

 8,692

 $
 60.06

 30,400

 15.3

 Vested

 ( 14,896
)

 28.8

 Cancelled

 ( 167
)

 13.2

 Outstanding at December 31, 2022

 24,029

 $
 23.4

 10,000

 4.29

 Vested

 ( 10,000
)

 4.29

 Cancelled

 ( 24,029
)

 23.4

 Outstanding at December 31, 2023

 -

 $
 -

 Preferred Stock

 On July 25, 2023, the Company
entered into a definitive securities purchase agreement with several institutional and accredited investors, including existing
significant investors of Theralink Technologies, Inc., its previously announced merger partner (OTC:THER) ("Theralink"),
and Theralink's Chairman, for the sale of its preferred stock and warrants. IMAC sold an aggregate of 2,500 shares of its
Series A-1 Convertible Preferred Stock, stated value $ 1,000 per share, 1,800 shares of its Series A-2 Convertible Preferred Stock,
stated value $ 1,000 per share, and Warrants to purchase up to 2,075,702 shares of its common stock for aggregate gross proceeds of
$ 4.3 million before deducting placement agent fees and other offering expenses of $480,000. The shares of A-1 Convertible Preferred
Stock, shall bear a 12 % dividend based on stated, value have no voting rights, and are initially convertible into an aggregate of
 763,126 shares of common stock of the Company, and the shares of Series A-2 Convertible Preferred Stock are initially convertible
into an aggregate of 549,451 shares of common stock of the Company, in each case, at a conversion price of $ 3.276 per share. The
Warrants have an exercise price of $ 3.276 per share, are exercisable immediately, and will expire five years from the date of
shareholder approval of this private placement. The shares contain price protection provisions and beneficial ownership limitation
provisions upon conversion as defined in the certificates of designation. Approximately $ 3.0 million of the proceeds of the offering
was used to make two loans to Theralink for investment into sales and marketing efforts and general working capital purposes as the
companies continue to take formal steps together in advancing their merger previously announced on May 23, 2023. As of December 31,
2023 dividends of approximately $ 130,000 have been declared and accrued on the Series A-1 Convertible Preferred Stock.

 The Company also entered into a Registration Rights
Agreement, pursuant to which it agreed to file a registration statement with the Securities and Exchange Commission (the "SEC")
covering the resale of the shares of the Company's common stock underlying the Series A-1 Convertible Preferred Stock, Series A-2
Convertible Preferred Stock and Warrants no later than 45 days following the closing of the planned merger.

 On
December 20, 2023, the Company entered into a letter agreement with several institutional and accredited investors providing for the
sale of an additional aggregate $ 250,000
of convertible preferred stock (the "Private Placement") with offering expenses of approximately $ 25,000. Pursuant to
the letter agreement, the Company exchanged its Series A-1 Convertible Preferred Stock and Series A-2 Convertible Preferred stock
for a corresponding number of shares of the Company's newly-created Series B-1 Convertible Preferred Stock and the
Company's newly-created Series B-2 Convertible Preferred Stock, respectively. Shares of the Series B-1 Convertible Preferred
Stock and Series B-2 Convertible Preferred Stock are convertible into shares of common stock of the Company at a conversion price of
$ 1.84
per share, which is above the most recent closing price of the Company's common stock and represents a reduction in the
conversion price from the Series A-1 Convertible Preferred Stock and Series A-2 Convertible Preferred Stock. Therefore, the Series
B-1 and B-2 preferred stock is convertible into 1,437,500
and 1,035,326 common shares,
respectively. In addition, the exercise price of the Warrants was reduced to $ 1.84
pursuant to the letter agreement. The reduction in the conversion price and the exercise price was made in consideration of the
additional purchase amount, therefore there was no accounting effect of this exchange. It is expected that the proceeds of the
Private Placement will be used for general working capital and general corporate purposes.

 All
terms other than the conversion price are the same as the Series A-1 and A-2.

 In 2024, the Series B-1 and B-2 preferred
shares were exchanged for Series C shares (See Note 14).

 Common Stock

 On July 6, 2022, the Company's shareholders
approved the Board of Directors' proposal to increase the number of authorized shares of the Company's common stock to 60,000,000
shares from 30,000,00 0 shares.

 On August 16, 2022, the Company entered into a securities
purchase agreement (the "Securities Purchase Agreement") with institutional accredited investors (the "Purchasers")
pursuant to which the Company offered for sale to the Purchasers an aggregate of 172,149 shares (the "Shares") of its common
stock at a purchase price of $ 22.80, in a registered direct offering (the "Registered Direct Offering"). In a concurrent private
placement, the Company also agreed to issue to the investors Series 1 warrants to purchase 172,149 shares of common stock that will become
exercisable on the date that is six months following the date of issuance of the shares of common stock in the Registered Direct Offering
(the "Exercise Date") and expire on the five year anniversary of the Exercise Date, at an exercise price of $ 28.5 per share,
and Series 2 warrants to purchase 172,149 shares of common stock that will become exercisable on the Exercise Date and expire on the one
year anniversary of the Exercise Date, at an exercise price of $ 28.50 per share. The Shares were offered by the Company pursuant to its
shelf registration statement on Form S-3 originally filed with the SEC on March 27, 2020 (as amended, the "Registration Statement"),
which was declared effective on April 3, 2020. The Company received gross proceeds of both transactions of $ 3.9 million. The Company used
the net proceeds from this offering for working capital and other general corporate purposes, including financing the costs of implementing
the Company's strategic alternative activities.

 In
January 2023, the Company issued 2,725 common shares for cash of $ 16,650 under its At The Market (ATM) offering.

 On
December 27, 2023, issued an aggregate of 10,000
 common shares for the Board members valued at
$ 4.29
 per share or $ 42,900
 based on the quoted trading price on the grant
date which was May 2023.

 Warrants

 In
August 2022, the Company issued 344,298 warrants in conjunction with the common stock offering discussed above.

 In
July 2023, the Company issued 2,075,702 warrants in conjunction with the preferred stock offering discussed above.

 SCHEDULE OF WARRANTS

 Number of Warrants

 Weighted Average Exercise Price Per Share

 December 31, 2021

 54,284

 $
 150.00

 344,298

 28.50

 December 31, 2022

 398,582

 45.05

 2,075,702

 1.84

 December 31, 2023

 2,474,284

 $
 8.80

 Note
11 – Retirement Plan

 The
Company offers a 401(k) plan that covers eligible employees. The plan provides for voluntary salary deferrals for eligible
employees. Additionally, the Company is required to make matching contributions of 100% up to 3% and 50% of the next 2% of total
compensation for those employees making salary deferrals. The Company made contributions of $ 39,192 and $ 134,534 during 2023 and
2022, respectively. The Company terminated the matching contributions during 2023.

 Note
12 – Income Taxes

 For
the year ended December 31, 2023, and December 31, 2022, no income tax expense or benefit was recorded related to income taxes due to
the Company's overall operating results and the change in the valuation allowance. The components of income tax expense (benefit)
for the year ended December 31, 2023, and December 31, 2022, are as follows:

 Schedule of Components of Income Tax Benefits

 2023

 2022

 Current income tax expense (refund) – federal

 $
 -

 $
 -

 Current income tax expense (refund) – state

 -

 -

 Total current income tax expense (refund)

 -

 -

 Deferred income tax expense (benefit) – federal

 -

 -

 Deferred income tax expense (benefit) – state

 -

 -

 Total deferred income tax expense (benefit)

 -

 -

 Total provision for income taxes

 $
 -

 $
 -

 The
tax effects of temporary differences which give rise to the significant portions of deferred tax assets or liabilities at December 31,
2023 and 2022 are as follows:

 Schedule of Deferred Tax Assets and Liabilities

 2023

 2022

 Deferred tax assets:

 Reserves & allowances

 $
 108,584

 $
 20,738

 Charitable contribution carry-forward

 2,895

 3,000

 Net operating loss carry-forward – federal

 9,524,275

 7,778,105

 Net operating loss carry-forward – state

 2,194,071

 2,294,317

 Amortization

 2,014,677

 2,029,833

 Non-qualified stock options

 430,577

 459,093

 Total deferred tax assets

 $
 14,275,079

 $
 12,585,086

 Deferred tax liabilities:

 Depreciation

 $
 ( 2,813
)

 $
 ( 2,914
)

 Amortization

 -

 -

 Total deferred tax liabilities

 $
 ( 2,813
)

 $
 ( 2,914
)

 Less valuation allowance

 ( 14,272,266
)

 ( 12,582,172
)

 Total net deferred tax assets

 $
 -

 $
 -

 The
Company has federal net operating loss carry-forward of approximately $ 45.3
million and state net operating losses of approximately $ 46.6
million as of December 31, 2023. There is no expiration of the federal loss carry-forwards as all federal net operating loss carry-forwards were generated
after December 31, 2017. The state operating loss carry-forwards are subject to expiration beginning on December 31, 2031. Net
deferred tax assets are mainly comprised of temporary differences between financial statement carrying amount and tax basis of
assets and liabilities.

 ASC
740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. At December 31, 2023 and 2022, a full valuation allowance
was required.

 In
addition, the Company performed a comprehensive review of its uncertain tax positions and determined that no adjustments were necessary
relating to unrecognized tax benefits as December 31, 2023. The Company's federal and state income tax returns are subject to examination
by taxing authorities for three years after the returns are filed, and the Company's federal and state income tax returns for 2020
through 2023 remain open to examination.

 The
reconciliation of the income tax (benefit) to the U.S. federal statutory income tax rate is as follows:

 Schedule of Effective Income Tax Rate Reconciliation

 2023

 2022

 Federal statutory income tax

 21.00
 %

 21.00
 %

 Permanent differences

 0.00
 %

 ( 0.01
)%

 Change in Tax Credits

 0.00
 %

 0.00
 %

 Change in Tax Rate

 0.00
 %

 0.00
 %

 Change in valuation allowance

 ( 23.23
)%

 ( 25.20
)%

 State income taxes, net of federal benefit

 3.72
 %

 4.61
 %

 Prior year adjustments

 ( 1.49
)%

 ( 0.40
 %

 Total

 0.00
 %

 0.00
 %

 Note
13 – Commitments and Contingencies

 The
Company accrues a liability and charges operations for the estimated costs of contingent liabilities, including adjudication or
settlement of various asserted and unasserted claims existing as of the consolidated balance sheet date, when it is probable that a
loss has been incurred and the loss (or range of probable loss) is estimable.

 From
time to time the Company may become subject to threatened and/or asserted claims arising in the ordinary course of our business. Other
than the matter described below, management is not aware of any matters, either individually or in the aggregate, that are reasonably
likely to have a material impact on the Company's financial condition, results of operations or liquidity.

 Third
Party Audit

 From
time to time, in the ordinary course of business, we are subject to audits under various governmental programs in which third party firms
engaged by the Center for Medicare & Medicaid Services ("CMS") conduct extensive reviews of claims data to identify potential
improper payments. We cannot predict the ultimate outcome of any regulatory reviews or other governmental audits and investigations.

 On
April 15, 2021, the Company received notification from Covent Bridge Group, a Center for Medicare & Medicaid Services ("CMS")
contractor, that they are recommending to CMS that the Company was overpaid in the amount of $ 2,921,868. This amount represents a statistical
extrapolation of $ 11,530 of charges from a sample of 40 claims for the periods February 2017 to November 2020. On June 3, 2021, the Company
received a request for payment from CMS in the amount of $ 2,918,472. The Company began its own internal audit process and initiated the
appropriate appeals. The Company received a notification dated September 30, 2021, from CMS that they "found the request to be
favorable by reversing the extrapolation to actual". The Company received a separate notification stating "the extrapolated
overpayment was reduced to the actual overpayment amount for the sampled denied claims $ 5,327.73," which had been paid as of December
31, 2021.

 On
October 21, 2021, the Company received notification from Covent Bridge Group, a Center for Medicare & Medicaid Services
("CMS") contractor, that they are recommending to CMS that the Company was overpaid in the amount of $ 2,716,056.33.
This amount represents a statistical extrapolation of $ 6,791.33 of
charges from a sample of 38 claims for the periods July 2017 to November 2020 for Progressive Health & Rehabilitation, Ltd
("Progressive Health"). The Company entered into a management agreement with Progressive Health in April 2019 and
therefore liable for only a portion of the sampled claims. There were a total of 38 claims reviewed, 25 of these claims were from
the period prior to the management agreement with the Company and the remaining 13 claims were related to the period that
Progressive Health was managed by the Company. In December 2021, the Company received a request for payment from CMS in the amount
of $ 2,709,265.
The Company has begun its own internal audit process and has initiated the appropriate appeals. The Company submitted a
redetermination request in March 2022, which was denied. The Company submitted a reconsideration request February 27, 2023. On July
5, 2023, the Company received a reconsideration decision from the second appeal. The Qualified Independent Contractor provided a
"partially favorable" decision that medical necessity supported 15 of 38 appealed claims. The Company filed a
timely appeal and a hearing with an Administrative Law Judge was conducted November 29, 2023. The ALJ decision received on February
7, 2024, failed to address appeal and partially favorable decision impact on the extrapolated charges. The Company timely filed an
appeal to Medicare Appeals Council on April 5, 2024.

 On
May 17, 2022, the Company received notification from Covent Bridge Group, a Center for Medicare & Medicaid Services
("CMS") contractor, that they are recommending to CMS that the Company was overpaid in the amount of $ 492,086.22
related to Advantage Therapy. This amount represents a statistical extrapolation of charges from a sample, the actual amount found
to be overpaid was $ 10,420.22.
On May 27, 2022 the Company received a request for payment from CMS in the amount of $ 481,666.00.
The Company has begun its own internal audit process and has initiated the appropriate appeals. Prior to this May 2022 notification,
CMS had implemented a pre-payment audit for Advantage Therapy. As of June 30, 2023, this audit had resulted in a recoupment balance
of approximately $ 0.1 million of Medicare accounts receivable. The Company submitted a reconsideration request in May 2023. On
August 4, 2023, the Company received a reconsideration decision from the second appeal. The Qualified Independent Contractor
provided a "partially favorable" decision supporting 31 of 65 appealed claims. The Company filed a timely appeal and
conducted a hearing with an Administrative Law Judge February 20, 2024, and awaits the response from the hearing. As of December 31, 2023, this audit had
resulted in a balance of approximately $ 138,000
of Medicare accounts receivable which has been fully reserved.

 On December 9, 2022, the Company received a suspension
of payment notification from Covent Bridge Group, a Center for Medicare & Medicaid Services contractor, for IMAC Regeneration Center
of Kentucky. On December 22, 2022, the Company responded to the payment suspension with a Rebuttal of Notice. The suspension of payment
will remain in effect until the Rebuttal of Notice is answered. The Company provided medical records for 10 beneficiaries. Neither CMS
nor Covent Bridge have responded to the Company regarding the records, although they initiated the Kepro audit noted in the following
paragraph. As of December 31, 2023, the payment suspension resulted in a recoupment balance of approximately $ 90,000 of Medicare accounts
receivable which has been fully reserved.

 On October 2, 2023, the Company received notice from
Kepro, "Initial Sanction Notice of Failure in a Substantial Number of Cases". Kepro has recommended a Corrective Action Plan
(CAP). (i) Perform a root cause analysis (RCA) and describe the underlying cause of the failure. Submit a copy of the RCA performed. (ii)
Identify goals (desired outcomes) of the CAP. These goals must be measurable-containing a numerator and denominator-attainable, and meaningful.
(iii) Explain how the process(es) will be created or modified to correct the underlying root cause. (iv) Explain how the process(es) will
be implemented, including time frames for implementation. (v) Explain how the implemented process(es) and outcomes will be monitored and
reported. (vi) Identify the person who will be responsible for monitoring the CAP's specified time frame. The Company intends on
complying with the recommendations of the CAP. In addition, after further review, the Company will appeal the recommendation and outcomes
of the audit by Kepro. A meeting with Kepro was conducted on November 20, 2023 to review findings, CAP, and appeal of findings. The meeting
resulted in a CAP and communication to medical providers regarding the audit. There was no financial recoupment request.

 Other smaller denials the Company is appealing aggregate approximately $ 25,000 as of December 31, 2023.

 At
this stage of the appeals process, based on the information currently available to the Company, the Company is unable to predict the
timing and ultimate outcomes of these matters and therefore is unable to estimate the range of possible loss. Any potential loss may
be classified as errors and omissions for which insurance coverage was in place during a majority of the years being evaluated.

 As
of December 31, 2023, the Company has not recorded a provision for any of these claims, as management does not believe that an estimate
of a possible loss or range of loss can reasonably be made at this time.

 Note
14 – Subsequent Events

 On
April 10, 2024, we entered into a series of transactions including the exchange of the Company's outstanding Series B-1 Convertible
Preferred Stock, par value $ 0.001 per share (the "Series B-1 Preferred Stock") and Series B-2 Convertible Preferred Stock,
par value $ 0.001 per share (the "Series B-2 Preferred Stock" and, collectively with the Series B-1 Preferred Stock, the "Series
B Preferred Stock"), for new preferred stock, the exchange of the Company's outstanding warrants (the "Existing Warrants")
for new warrants, and the sale of new preferred stock and warrants. All such transactions were consummated on April 11, 2024.

 Exchange

 On
April 11, 2024, the Company entered into an exchange agreement (each, an "Exchange Agreement") with holders of Series B
Preferred Stock, pursuant to which the holders would exchange (i) 4,550
shares of Series B Preferred Stock, with a conversion price of $ 1.84,
for 4,750
shares of Series C-1 Convertible Preferred Stock, par value $ 0.001
per share, of the Company (the "Series C-1 Preferred Stock"), with a conversion price of $ 2.561
and (ii) their Existing Warrants, with an exercise price of $ 1.84,
for new warrants, with an exercise price of $ 2.561,
(the "Exchange Warrants" and, together with the Series C-1 Convertible Preferred Stock, the "Exchange
Securities"), on a one-for-one basis. Such exchanges were made without any additional consideration having been paid by the
Holders. All of the outstanding shares of Series B Preferred Stock and all outstanding Existing Warrants were terminated upon the
exchange. If at the time of exercise of the Exchange Warrants, there is no effective registration statement registering the shares of the Common
Stock underlying the Exchange Warrants, such Exchange Warrants may be exercised on a cashless basis pursuant to their terms.

 PIPE
Financing

 On
April 10, 2024, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with
accredited investors (the "Investors"), pursuant to which the Company agreed to issue and sell, and the Investors agreed
to purchase, 1,276
shares of Series C-2 convertible preferred stock (the "Series C-2 Preferred Stock" and, together with the Series C-1
Preferred Stock, the "Series C Preferred Stock"), at a price of $ 1,000 per share or an aggregate $ 1,276,000, and 498,243
warrants, with an exercise price of $ 2.561 (the "PIPE Warrants" and, together with the Exchange Warrants, the
"Warrants"), to purchase our common stock for aggregate cash proceeds (after giving effect to the Settlement and Release
payment of $376,000 (as discussed below) of $ 900,000. If at the time of exercise of the PIPE Warrants, there is no effective registration statement registering the shares of the Common Stock
underlying the PIPE Warrants, such PIPE Warrants may be exercised on a cashless basis pursuant to their terms.

 Rights
and Preferences of Series C Preferred Stock

 The
rights and preferences of the Series C-1 Preferred Stock and the Series C-2 Convertible Stock are identical in all material respects;
however, the Series C-1 Convertible Preferred Stock was issued in exchange for Series B Preferred Stock without the payment of any additional
consideration and, for the purpose of Rule 144 of the Securities Act of 1933, as amended, ownership of the Series C-1 Preferred Stock
shall tack back to December 20, 2024.

 Authorized;
Stated Value. The Company authorized 4,750 shares of Series C-1 Preferred Stock and 5,376 shares of Series C-2 Preferred Stock.
Each share of Series C Preferred Stock has a stated value of $ 1,000 (subject to increase upon any capitalization of dividends –
See " Dividends " below).

 Ranking.
The Series C Preferred Stock, with respect to the payment of dividends, distributions and payments upon the liquidation, dissolution
and winding up of the Company, ranks senior to all capital stock of the Company unless the Required Holders (as defined in the Securities
Purchase Agreement) consent to the creation of other capital stock of the Company that is senior or equal in rank to the Series C Preferred
Stock.

 Liquidation
Preference. In the event of a Liquidation Event, as defined in the certificates of designations for the Series C-1 Preferred
Stock and the Series C-2 Preferred Stock, the holders thereof shall be entitled to receive payment in an amount per share equal to
the greater of (A)
110% of the sum of the stated value of the share plus any amount owed to the holder by the Company in connection with the share,
including all declared and unpaid dividends thereon, on the date of such payment and (B) the amount per share such holders would
receive if such shares had been converted into Common Stock immediately prior to the date of such payment; provided, however that if
the funds available for such payment to the holders of Series C-1 Preferred Stock, the Series C-2 Preferred Stock, and any other
capital stock of the Company ranking on par with them for liquidation purposes are insufficient, all such holders shall be paid proportionally to
their holdings out of available funds.

 Dividends.
 Dividends on the Series C Preferred Stock equal to 10% per annum (subject to adjustment) will begin to accrue upon issuance and,
subject to the satisfaction of certain customary equity conditions, will be payable in shares of Common Stock, provided, however, that
the Company may elect to capitalize dividends in lieu of issuing shares of Common Stock by increasing the stated value of each applicable
share of Series C Preferred Stock. If the Company fails to properly satisfy such equity conditions, such dividends will be capitalized
for each holder of Series C Preferred Stock (unless such holder waives such failure in order to receive shares of Common Stock as payment
for such dividend). Notwithstanding the foregoing, unless the Company obtains the Stockholder Approval (see " Stockholder Approval "
below), all dividends shall be capitalized dividends.

 Conversion
Rights

 Conversion
at Option of Holder. Each holder of Series C Preferred Stock may convert all, or any part, of their outstanding Series C Preferred
Stock, at any time at such holder's option, into shares of Common Stock (which converted shares of Common Stock are referred to
as "Conversion Shares" herein) based on the fixed "Conversion Price" of $ 2.561.

 Adjustments to Conversion Price. The Conversion
Price is subject to proportional adjustment upon the occurrence of any stock split, stock dividend, stock combination and/or similar transactions.
Although the Series C Preferred Stock does not initially have antidilution protection for issuances below the conversion price then in
effect in subsequent placements, if the Company obtains the Stockholder Approval (see " Stockholder Approval " below),
thereafter the Series C Preferred Stock shall have full ratchet antidilution protection. Subject to the rules and regulations of the Principal
Market, the Company may, at any time, with the written consent of the Required Holders, lower the fixed conversion price to any amount
and for any period of time deemed appropriate by the Company's board of directors.

 Mandatory
Conversion. If the closing price of the Common Stock on the principal trading market, if any, in which the shares of Common Stock
then trade (the "Principal Market"), equals at least 300% of the Conversion Price for twenty (20 consecutive trading days
and no Equity Conditions Failure exists, the Company may require each holder of Series C Preferred Stock, on a pro rata basis among all
such holders, to convert all, or any number, of the shares of Series C Preferred Stock based on the then-current Conversion Price.

 Alternate Conversion
Upon a Triggering Event. Solely if the Company has obtained the Stockholder Approval (see "Stockholder Approval" below), following
the occurrence and during the continuance of a Triggering Event (as defined in the Series C Certificates of Designations), each holder
may alternatively elect to convert the Series C Preferred Stock at the "Alternate Conversion Price" equal to the lesser of
(A) the Conversion Price, and (B) the greater of (x) the floor price of $ 0.5122, and (y) 80% of the volume weighted average price of
the Common Stock during the 5 consecutive trading days immediately prior to such conversion.

 Company
Redemption. At any time the Company shall have the right to redeem in cash all, but not less than all, the shares of Series C Preferred
Stock then outstanding at the greater of (x) 110% of the amount of shares being redeemed, and (y) the equity value of the Common Stock
underlying the Series C Preferred Stock. The equity value of the Common Stock underlying the Series C Preferred Stock is calculated using
the greatest closing sale price of the Common Stock on any trading day immediately preceding the date the Company notifies the holders
of its election to redeem and the date the Company makes the entire payment required.

 Voting
Rights. The holders of the Series C Preferred Stock have no voting power and no right to vote on any matter at any time, either as
a separate series or class or together with any other series or class of share of capital stock, and shall not be entitled to call a
meeting of such holders for any purpose nor shall they be entitled to participate in any meeting of the holders of Common Stock, except
as provided in the Series C Certificates of Designations (or as otherwise required by applicable law).

 Stockholder
Approval

 The Company has agreed to seek the approval of the Company's stockholders to the issuance of all of the securities issuable pursuant
to the Series C Preferred Stock and the Warrants in compliance with the rules and regulations of the Nasdaq Capital Market (the "Stockholder
Approval"), which, if obtained, would permit the issuance of more than 20% of the outstanding capital stock of the Company at a
price less than $ 0.561, by no later than July 31, 2024. If the Company fails to obtain the Stockholder Approval, the Company has agreed
to cause an additional meeting to be held to seek Stockholder Approval on or prior to October 31, 2024 and, if not obtained, semi-annually
thereafter.

 Settlement
and Release Agreements

 In
connection with the exchange and PIPE financing transactions, each holder of Series B-1 Preferred Stock entered into a Settlement and
Release Agreement with the Company, pursuant to which the Company agreed to pay to each such holder a cash amount equal to the damages
claimed to have been suffered by such holder upon the attempted conversion and then unwinding of such conversion of shares of such holders
Series B-1 Preferred Stock, in exchanged for a release by the holder in favor of the Company of all claims related to such unwinding.
All amounts paid pursuant to the Settlement and Release Agreements were reinvested, in full, into the Company pursuant to the Securities
Purchase Agreement.

 Registration
Rights

 In
connection with the exchange and PIPE financing transactions, the Investors received registration rights customary for such transactions.

 Loan
to Theralink

 On
April 11, 2024, the Company entered into a credit agreement (the "Theralink Credit Agreement") with Theralink Technologies,
Inc. ("Theralink"), pursuant to which Theralink may borrow from the Company up to $ 1,000,000 (the "Term Loans"),
with an initial borrowing of $ 350,000 made on April 12, 2024. The Term Loans have a maturity date of October 12, 2024 and bear interest
at 9 % per annum for interest to be paid in cash and 11 % per annum for any portion of the accrued interest that is paid in kind, which
"PIK Interest" will be added to the then-outstanding principal amount of the Term Loans. The Term Loans are secured by a
first priority interest, subject to permitted liens in accordance with the Theralink Credit Agreement, in the assets of Theralink and
its subsidiaries pursuant to a Security and Pledge Agreement dated April 12, 2024 made by Theralink and each of its subsidiaries party
thereto as Grantors, in favor of the Company (the "Security and Pledge Agreement").

 ITEM 9.

 CHANGES IN AND DISAGREEMENTS
 WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

 None.

 ITEM 9A.

 CONTROLS AND PROCEDURES

 (1)

 Evaluation of Disclosure
 Controls and Procedures

 We
maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange
Act of 1934 (the "Exchange Act") reports is recorded, processed, summarized, and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management,
including our chief executive officer and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosure.
In designing and evaluating the disclosure controls and procedures, we recognize that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required
to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 As
further discussed below, we carried out an evaluation, under the supervision and with the participation of our management, including
our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls
and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, our chief executive officer
and chief financial officer concluded that, because of certain material weaknesses in our internal control over financial reporting our
disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act were not effective as of December
31, 2023, due to material weaknesses discussed below.

 (2)

 Management's Report
 on Internal Control over Financial Reporting

 Our
management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined
in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including our
chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial
reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission ("COSO"). Because of its inherent limitations, internal control over financial reporting may not
prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation. Based on our evaluation under the framework in Internal Control—Integrated Framework
(2013), our management concluded that, because our internal controls over financial report were not effective as of December 31, 2023, our
disclosure controls and procedures as defined in Rule 12a-15E and 15d-15E under the Exchange Act were not effective as of December
31, 2023 and 2022.

 The
material weaknesses relate to the absence of in-house accounting personnel with the ability to properly account for complex transactions
and a lack of separation of duties between accounting and other functions.

 We
hired a consulting firm to advise on technical issues related to U.S. GAAP as related to the maintenance of our accounting books and
records and the preparation of our consolidated financial statements. Although we are aware of the risks associated with not having dedicated
accounting personnel, we are also at an early stage in the development of our business. We anticipate expanding our accounting functions
with dedicated staff and improving our internal accounting procedures and separation of duties when we can absorb the costs of such expansion
and improvement with additional capital resources. In the meantime, management will continue to observe and assess our internal accounting
function and make necessary improvements whenever they may be required. If our remedial measures are insufficient to address the material
weakness, or if additional material weaknesses or significant deficiencies in our internal control over financial reporting are discovered
or occur in the future, our consolidated financial statements may contain material misstatements, and we could be required to restate
our financial results. In addition, if we are unable to successfully remediate this material weakness and if we are unable to produce
accurate and timely financial statements, our stock price may be adversely affected and we may be unable to maintain compliance with
applicable stock exchange listing requirements.

 (3)

 Changes in Internal
 Control over Financial Reporting

 There
has been no change in our internal control over financial reporting identified in connection with the evaluation required by paragraph
(d) of Rules 13a-15 or 15d-15 under the Exchange Act that occurred during our most recent fiscal quarter that has materially affected,
or is reasonably likely to materially affect, our internal control over financial reporting.

 ITEM 9B.

 OTHER INFORMATION

 None.

 ITEM 9C.

 DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT
 PREVENT INSPECTIONS

 None.

 PART
III

 ITEM 10.

 DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

 The
names and ages of our executive officers and directors, and their positions with us, are as follows:

 Name

 Age

 Position

 Chief
 Executive Officer and Director

 Matthew C. Wallis, DC

 Sheri F. Gardzina, CPA

 Chief
 Financial Officer

 Maurice E. Evans

 Michael D. Pruitt

 Cary W. Sucoff

 Jeffrey
S. Ervin co-founded our company in March 2015 and serves as our Chief Executive Officer and served as a member of our Board of Directors.
Mr. Ervin resigned from the Board of Directors in March 2024. Mr. Ervin earned his M.B.A. from Vanderbilt University and has a history
of working within strategic finance roles in the healthcare and high tech industries. Following his M.B.A., Mr. Ervin was the Senior
Financial Analyst and Vice President of Finance for the Baptist Hospital System of Nashville from 2006 to September 2011, responsible
for sourcing and managing direct investments to satisfy pension obligations. After these five years, Mr. Ervin joined Medicare.com parent
Medx Publishing in October 2011 as the senior financial officer tasked with building administrative functions to satisfy rapid growth
in the CMS education sector. During this time through March 2015, Medicare.com earned INC. 500 recognition and he was instrumental in
the acquisition of Medicaid.com which was sold to United Healthcare Group. Mr. Ervin was also responsible for the disposition and ultimate
sale of Medicare.com to eHealth Insurance. Since February 2024, Mr. Ervin serves as an independent director for Cingulate, Inc. (CING), a biopharmaceutical company.

 As
our Chief Executive Officer and Chairman, Mr. Ervin led the Board and currently manages our company. Mr. Ervin brings extensive
healthcare services industry knowledge and a deep background in growing early-stage companies, mergers and acquisitions and capital
market activities. His service as the Chief Executive Officer and a director created a critical link between management and our
Board of Directors.

 Matthew
C. Wallis, DC co-founded our company in March 2015 and served as our President/Chief Operating Officer and is currently a member
of our Board of Directors. Dr. Wallis resigned as President and Chief Operating Officer in November 2023. Dr. Wallis established the first Integrated Medicine and Chiropractic (IMAC) Regeneration Center in
August 2000 and has led the Paducah, Kentucky center since then. Prior to establishing the first IMAC medical clinic, Dr. Wallis
practiced as a licensed chiropractor in Kentucky. As our Chief Operating Officer, Dr. Wallis, has implemented consistent operating
efficiencies for our sales, marketing and serviced delivery operations. Dr. Wallis received a Doctor of Chiropractic (DC) degree
from Life University.

 Dr.
Wallis' 23 years of experience in the healthcare services industry, day-to-day operational leadership of our initial Paducah, Kentucky
medical clinic and in-depth knowledge of our company's rehabilitative services make him well qualified as a member of the Board.

 Sheri
F. Gardzina, CPA joined our company in November 2017 and serves as our Chief Financial Officer. Prior to joining IMAC, Ms. Gardzina
served as the controller or member of the accounting executive team of Smile Direct Club, LLC, a marketer of invisible aligners, from
June 2016 to September 2017, Adoration Health, a home health and hospice company, from October 2015 to June 2016, Lattimore, Black, Morgan
& Cain, an accounting and consulting firm where she provided temporary chief financial officer services to Peak Health Solutions,
from August to September 2015, EB Employee Solutions, LLC, a healthcare self-insurance product developer, from May to December 2014,
and Inspiris Inc., a start-up care management company sold to Optum, from November 2003 to May 2014. Ms. Gardzina started her career
as an auditor with Ernst & Young, where she worked from October 1994 to August 1997. Ms. Gardzina earned a B.S. degree in business
administration and finance from Purdue University and an M.S. in accountancy and M.B.A. from Northeastern University.

 Ben
S. Lerner, DC joined our company in February 2022 and served as our Chief Operating Officer. Prior to joining IMAC, Dr. Lerner was
founder of UIG in February, 2017, and Maximized Living, a national chiropractic consulting, franchising, and lifestyle brand organization
until its sale in January, 2017. As CEO, he managed five interconnected companies, consulted for thousands of doctors and chiropractic
students, opened more than 100 franchises, created 500 licensees, and built and sustained a large supplement and spinal rehab equipment
manufacturing business. Dr. Lerner, holds a Doctor of Chiropractic from Life University. Dr. Lerner left the company in February 2023
to pursue other opportunities.

 Maurice
E. (Mo) Evans joined our Board of Directors in October 2020. Mr. Evans. is a business leader, advisor, consultant, investor and speaker
to businesses in the sports business vertical. He is the co-founder of ELOS Sports and Entertainment, LLC ("ELOS"), a provider
of brand management services to athletes and businesses in the sports and entertainment industry. Mr. Evans has served as the principal
of ELOS since 2014. Prior to that, from 2001 to 2012, he was a professional basketball player, playing for the Washington Wizards, Atlanta
Hawks, Orlando Magic, Los Angeles Lakers, Detroit Pistons and Sacramento Kings. He also served as Executive Vice President of the NBA
Players Association from 2010 to 2013. Mr. Evans received a B.A. degree from the University of Texas at Austin. Mr. Evans provides more
than a decade of experience in leading and managing customer-centric personal service organizations such as the NBA Players Association
and ELOS Sports and Entertainment, which is highly relevant to our business, making him well qualified as a member of our Board. He also
brings to our company a unique perspective of how an athlete addresses a sports injury.

 Michael
D. Pruitt joined our Board of Directors in October 2020. He founded Avenel Financial Group, a boutique financial services firm concentrating
on emerging technology company investments in 1999. In 2001, he formed Avenel Ventures, a technology investment and private venture capital
firm. In February 2005, Mr. Pruitt formed Chanticleer Holdings, Inc., then a public holding company (now known as Sonnet BioTherapeutics
Holdings, Inc.), and he served as Chairman of the Board of Directors and Chief Executive Officer until April 1, 2020, at which time the
restaurant operations of Chanticleer Holdings were spun out into a new public entity, Amergent Hospitality Group, Inc., where Mr. Pruitt
has served as its Chairman and Chief Executive Officer to date. Mr. Pruitt also served as a director on the board of Hooters of America,
LLC from 2011 to 2019. Mr. Pruitt received a B.A. degree from Costal Carolina University. He currently sits on the Board of Visitors
of the E. Craig Wall Sr. College of Business Administration, the Coastal Education Foundation Board, and the Athletic Committee of the
Board of Trustees. Mr. Pruitt's over 15 years of day-to-day operational leadership and service as a board member at public companies
Chanticleer Holdings and Amergent Hospitality Group make him well qualified as a member of the Board. He also brings transactional expertise
in mergers and acquisitions and capital markets.

 Cary
W. Sucoff joined our Board of Directors in October 2020. Mr. Sucoff has more than 30 years of securities industry experience encompassing
supervisory, banking and sales responsibilities. He has participated in the financing of more than 100 public and private companies.
Since 2011, Mr. Sucoff has owned and operated Equity Source Partners LLC, an advisory and consulting firm. Mr. Sucoff currently serves
on the board of directors of ContraFect Corporation, Legacy Education Alliance Inc., First Wave Technologies, Inc. and Galimedix Pharmaceuticals
Inc. In addition, Mr. Sucoff currently serves as a consultant to Sapience Therapeutics. Mr. Sucoff is the past President of New England
Law|Boston, has been a member of its Board of Trustees for over 25 years and is the current Chairman of its Endowment Committee. Mr.
Sucoff received a B.A. degree from the State University of New York at Binghamton and a J.D. from New England School of Law, where he
was managing editor of the Law Review and graduated magna cum laude. He has been a member of the Bar of the State of New York since 1978.
Mr. Sucoff demonstrates knowledge of our company's business due to his many years of experience as an investor, consultant and
board member with a range of companies in the healthcare industry, making his input invaluable to the board's discussion of our
growth and expansion strategy. He also brings experience in corporate controls and governance as a lawyer.

 Code
of Ethics

 We
have adopted a Code of Business Ethics and Conduct ("Ethics Code") that applies to all our officers, directors, employees,
and contractors. The Ethics Code contains general guidelines for conducting our business consistent with the highest standards of business
ethics and compliance with applicable law, and is intended to qualify as a "code of ethics" within the meaning of Section
406 of the Sarbanes-Oxley Act of 2002 and Item 406 of Regulation S-K. Day-to-day compliance with the Ethics Code is overseen by the Company
compliance officer appointed by our Board of Directors. If we make any substantive amendments to the Ethics Code or grant any waiver
from a provision of the Ethics Code to any director or executive officer, we will promptly disclose the nature of the amendment or waiver
on our website at

 Board
Composition

 Our
business and affairs are managed under the direction of our board of directors. The number of directors is determined by our board of
directors, subject to the terms of our certificate of incorporation and bylaws. Our board of directors currently consists of five members.

Independence

 Or
common stock and warrants are listed for trading on The NASDAQ Capital Market. Under Nasdaq rules, independent directors must comprise
a majority of a listed company's board of directors. In addition, Nasdaq rules require that, subject to specified exceptions, each
member of a listed company's audit, compensation and nominating and governance committees must be independent. Under Nasdaq rules,
a director will only qualify as an "independent director" if, in the opinion of that company's board of directors,
that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities
of a director.

 Audit
committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. In order to be considered
independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity
as a member of the audit committee, the board of directors, or any other board committee: (i) accept, directly or indirectly, any consulting,
advisory, or other compensatory fee from the listed company or any of its subsidiaries; or (ii) be an affiliated person of the listed
company or any of its subsidiaries.

 Our
board of directors undertook a review of its composition, the composition of its committees and the independence of each director. Based
upon information requested from and provided by each director concerning his or her background, employment and affiliations, including
family relationships, our board of directors has determined that Messrs. Evans, Pruitt and Sucoff, representing a majority of our directors,
do not have any relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of
a director and that each of these directors is "independent" as that term is defined under Nasdaq rules. In making these
determinations, our board of directors considered the relationships that each non-employee director has with our company and all other
facts and circumstances our board of directors deemed relevant in determining their independence, including the beneficial ownership
of our capital stock by each non-employee director.

 Board
Committees

 Our
board of directors has three standing committees: an audit committee, a compensation committee and a nominating and corporate governance
committee. Under Nasdaq rules, the membership of the audit committee is required to consist entirely of independent directors, subject
to applicable phase-in periods. The following is a brief description of our committees.

 Audit
committee. In accordance with our audit committee charter, our audit committee oversees our corporate accounting and financial
reporting processes and our internal controls over financial reporting; evaluates the independent public accounting firm's qualifications,
independence and performance; engages and provides for the compensation of the independent public accounting firm; approves the retention
of the independent public accounting firm to perform any proposed permissible non-audit services; reviews our consolidated financial
statements; reviews our critical accounting policies and estimates and internal controls over financial reporting; and discusses with
management and the independent registered public accounting firm the results of the annual audit and the reviews of our quarterly consolidated
financial statements. We believe that our audit committee members meet the requirements for financial literacy under the current requirements
of the Sarbanes-Oxley Act, Nasdaq and SEC rules and regulations. In addition, the board of directors has determined that Michael D. Pruitt
is qualified as an audit committee financial expert within the meaning of SEC regulations. We have made this determination based on information
received by our board of directors, including questionnaires provided by the members of our audit committee. The audit committee is composed
of Messrs. Pruitt (Chairman), Evans and Sucoff.

committee. In accordance with our compensation committee charter, our compensation committee reviews and recommends policies
relating to compensation and benefits of our officers and employees, including reviewing and approving corporate goals and objectives
relevant to compensation of the Chief Executive Officer and other senior officers, evaluating the performance of these officers in light
of those goals and objectives and setting compensation of these officers based on such evaluations. The compensation committee also administers
the issuance of stock options and other awards under our equity-based incentive plans. We believe that the composition of our compensation
committee meets the requirements for independence under, and the functioning of our compensation committee complies with, any applicable
requirements of the Sarbanes-Oxley Act, Nasdaq and SEC rules and regulations. We intend to comply with future requirements to the extent
they become applicable to us. The compensation committee is composed of Messrs. Evans (Chairman) and Pruitt.

 Nominating
and governance committee. In accordance with our nominating and governance committee charter, our nominating and governance committee
recommends to the board of directors nominees for election as directors, and meets as necessary to review director candidates and nominees
for election as directors; recommends members for each committee of the board; oversee corporate governance standards and compliance
with applicable listing and regulatory requirements; develops and recommends to the board governance principles applicable to the company;
and oversee the evaluation of the board and its committees. We believe that the composition of our nominating and governance committee
meets the requirements for independence under, and the functioning of our compensation committee complies with, any applicable requirements
of the Sarbanes-Oxley Act, Nasdaq and SEC rules and regulations. We intend to comply with future requirements to the extent they become
applicable to us. The nominating and governance committee is composed of Messrs. Sucoff (Chairman) and Evans.

Committee Interlocks and Insider Participation

 None
of the members of our compensation committee is an executive officer or employee of our company. None of our executive officers serves
as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on our
board of directors or compensation committee.

 Limitations
on Director and Officer Liability and Indemnification

 Our
certificate of incorporation limits the liability of our directors to the maximum extent permitted by Delaware law. Delaware law provides
that directors of a corporation will not be personally liable for monetary damages for breach of their fiduciary duties as directors,
except liability for:

 any breach of their duty
 of loyalty to the corporation or its stockholders;

 acts or omissions not in
 good faith or which involve intentional misconduct or a knowing violation of law;

 unlawful payments of dividends
 or unlawful stock repurchases or redemptions; or

 any transaction from which
 the director derived an improper personal benefit.

 Our
certificate of incorporation and our bylaws provide that we are required to indemnify our directors and officers, in each case to the
fullest extent permitted by Delaware law. Any repeal of or modification to our certificate of incorporation and our bylaws may not adversely
affect any right or protection of a director or officer for or with respect to any acts or omissions of such director or officer occurring
prior to such amendment or repeal. Our bylaws will also provide that we shall advance expenses incurred by a director or officer in advance
of the final disposition of any action or proceeding, and permit us to secure insurance on behalf of any officer, director, employee
or other agent for any liability arising out of his or her actions in connection with their services to us, regardless of whether our
bylaws permit such indemnification.

 We
intend to enter into separate indemnification agreements with our directors and executive officers, in addition to the indemnification
provided for in our bylaws. These agreements, among other things, provide that we will indemnify our directors and executive officers
for certain expenses (including attorneys' fees), judgments, fines, penalties and settlement amounts incurred by a director or
executive officer in any action or proceeding arising out of such person's services as one of our directors or executive officers,
or any other company or enterprise to which the person provides services at our request. We believe that these provisions and agreements
are necessary to attract and retain qualified persons as directors and executive officers.

 The
limitation of liability and indemnification provisions that are contained in our certificate of incorporation and our bylaws may discourage
stockholders from bringing a lawsuit against our directors for breach of their fiduciary duty. They may also reduce the likelihood of
derivative litigation against our directors and officers, even though an action, if successful, might benefit us and other stockholders.
Further, a stockholder's investment may be adversely affected to the extent that we pay the costs of settlement and damage awards
against directors and officers as required by these indemnification provisions. There is no pending litigation or proceeding involving
one of our directors or executive officers as to which indemnification is required or permitted, and we are not aware of any threatened
litigation or proceeding that may result in a claim for indemnification.

 The
Board of Directors' Role in Risk Oversight

 Our
Board of Directors, as a whole and also at the committee level, has an active role in managing enterprise risk. The members of our Board
of Directors participate in our risk oversight assessment by receiving regular reports from members of senior management and the Company
compliance officer appointed by our Board of Directors on areas of material risk to us, including operational, financial, legal and regulatory,
and strategic and reputational risks. The Compensation Committee is responsible for overseeing the management of risks relating to our
executive compensation plans and arrangements. The Audit Committee oversees management of financial risks, as well as our policies with
respect to risk assessment and risk management. The Nominating and Governance Committee manages risks associated with the independence
of our Board of Directors and potential conflicts of interest. Members of the management team report directly to our Board of Directors
or the appropriate committee. The directors then use this information to understand, identify, manage, and mitigate risk. Once a committee
has considered the reports from management, the chairperson will report on the matter to our full Board of Directors at the next meeting
of the Board of Directors, or sooner if deemed necessary. This enables our Board of Directors and its committees to effectively carry
out its risk oversight role.

 Communications
with our Board of Directors

 Any
stockholder may send correspondence to our Board of Directors, c/o IMAC Holdings, Inc., 3401 Mallory Lane, Suite 100, Franklin, Tennessee
37067 and our telephone number is (844) 266-IMAC (4622). Our management will review all correspondence addressed to our Board of Directors,
or any individual director, and forward all such communications to our Board of Directors or the appropriate director prior to the next
regularly scheduled meeting of our Board of Directors following the receipt of the communication, unless the corporate secretary decides
the communication is more suitably directed to Company management and forwards the communication to Company management. Our management
will summarize all stockholder correspondence directed to our Board of Directors that is not forwarded to our Board of Directors and
will make such correspondence available to our Board of Directors for its review at the request of any member of our Board of Directors.

 Indebtedness
of Directors and Executive Officers

 None
of our directors or executive officers or their respective associates or affiliates is currently indebted to us.

 Compliance
with Section 16(a) of the Exchange Act

 Section
16(a) of the Exchange Act requires our executive officers, directors and holders of more than 10% of our equity securities to file reports
of ownership and changes in ownership of our securities (Forms 3, 4 and 5) with the SEC. To the best of our knowledge, based solely on
a review of the Section 16(a) reports and written statements from executive officers and directors, for the years ended December 31,
2023 and 2022, all required reports of executive officers, directors and holders of more than 10% of our equity securities were filed
on time, except for any such reports which may have been filed late due to administrative delays.

 Family
Relationships

 There
are no family relationships among our directors and executive officers.

 ITEM 11.

 EXECUTIVE COMPENSATION

 Summary
Compensation Table

 The
following table sets forth summary compensation information for the following persons: (i) all persons serving as our principal executive
officer during the years ended December 31, 2023 and 2022, and (ii) our two other most highly compensated executive officers who received
compensation during the years ended December 31, 2023 and 2022 of at least $100,000 and who were executive officers on December 31, 2023
and 2022. We refer to these persons as our "named executive officers" in this prospectus. The following table includes all
compensation earned by the named executive officers for the respective period, regardless of whether such amounts were actually paid
during the period:

 Name and Position

 Years

 Salary

 Bonus

 Stock Awards

 Option Awards

 Non- equity Incentive Plan Comp

 Non- qualified Deferred Comp

 All Other Comp

 Total

 Jeffrey S. Ervin,

 2023

 $
 200,000

 $
 12,500

 $
 -

 $
 -

 $
 -

 $
 -

 $
 -

 $
 212,500

 Chief Executive Officer

 2022

 371,492

 -

 -

 -

 -

 -

 -

 371,492

 Matthew C. Wallis, DC,

 2023

 167,115

 -

 -

 -

 -

 -

 -

 167,115

 Former President

 2022

 300,000

 -

 -

 -

 -

 -

 -

 300,000

 Sheri Gardzina,

 2023

 203,846

 6,250

 -

 -

 -

 -

 -

 210,096

 Chief Financial Officer

 2022

 251,300

 -

 -

 -

 -

 -

 -

 251,300

 Employment
Agreements

 We
entered into employment agreements effective March 1, 2019 with each of Jeffrey Ervin and Matthew Wallis. The employment agreements
with Messrs. Ervin and Wallis were extended for a term expiring on February 28, 2023. Mr. Ervin is currently employed on an at-will
basis. Mr. Wallis resigned from the Company in November 2023.

 Pursuant
to their employment agreements, Messrs. Ervin and Wallis have agreed to devote substantially all of their business time, attention and
ability, to our business as our Chief Executive Officer and Chief Operating Officer, respectively. In addition, each executive may be
entitled to receive, at the sole discretion of our board of directors, cash bonuses based on the executive meeting and exceeding performance
goals of the company. Each executive is entitled to participate in our 2018 Incentive Compensation Plan. We have also agreed to pay or
reimburse each executive up to $100 per month for the business use of their personal cell phone.

 The
employment agreements also provide for termination by us upon death or disability of the executive (defined as three aggregate months
of incapacity during any 365-consecutive day period) or upon conviction of a felony crime of moral turpitude or a material breach of
their obligations to us. In the event any of the employment agreements are terminated by us without cause, such executive will be entitled
to compensation for the balance of the term.

 In
the event of a change of control of our company, Messrs. Ervin and Wallis may terminate their employment within six months after such
event and will be entitled to continue to be paid pursuant to the terms of their respective employment agreements.

 The
employment agreements also contain covenants (a) restricting the executive from engaging in any activities competitive with our business
during the terms of such employment agreements and one year thereafter, (b) prohibiting the executive from disclosure of confidential
information regarding us at any time and (c) confirming that all intellectual property developed by the executive and relating to our
business constitutes our sole and exclusive property.

 Grants
of Plan-Based Awards

 As
of December 31, 2023, the Company had outstanding stock options to purchase 9,139 shares of its common stock which were granted as
non-qualified stock options to various employees of the Company. These options vest over a period of four years, with 25% vesting after
one year and the remaining 75% vesting in equal monthly installments over the following 36 months, are exercisable for a period of ten
years, and enable the holders to purchase shares of the Company's common stock at the exercise price of award. The per-share fair
values of these options are range from $35.70 to $121.20 based on Black-Scholes-Merton pricing model.

 On
October 20, 2020, the Company granted an aggregate of 10,000 RSUs to Board members with these RSUs vesting in eight equal quarterly
installments commencing on February 1, 2021, provided the Board members remain directors of the Company. Effective October 2021, the
vesting schedule was amended to a one-year vesting period. As of March 31, 2022, all these granted RSUs were vested and issued to the
Board members.

 On
January 30, 2021, the Company granted an aggregate of 567 RSUs to non-executive staff and contractors with these RSUs vesting after
one year. As of March 31, 2022, all these granted RSUs were vested and issued.

 On
October 27, 2021 the Company granted 333 RSUs to a consultant that vested immediately.

 On
February 21, 2022, the Company granted 3,333 RSUs to an executive that vested immediately.

 On
September 22, 2022, the Company granted an aggregate of 10,000 RSUs to Board members with immediate vesting.

 On
October 1, 2022, the Company reserved an aggregate of 17,067 Restricted Stock Units ("RSUs") to certain employees and executives
with a one-year vesting period.

 Outstanding
Equity Awards at December 31, 2023

 No
stock options were granted to any of our named executive officers during the year ended December 31, 2023. A total of 14,667 RSUs were
reserved for named executive officers during the year. Mr. Ervin and Ms. Gardzina were awarded 5,000 and 1,250 restricted stock units
and 5,000 and 1,250 stock options, respectively, during the year ended December 31, 2019.

 The
following table presents the outstanding equity awards held by each of the named executive officers as of the fiscal year ended December
31, 2023, including the value of the stock awards.

 Option Awards

 Stock Awards

 Name

 Grant
 Date

 Underlying
 Unexercised
 Options
 (#)
 Exercisable

 Underlying
 Unexercised
 Options
 (#)
 Unexercisable

 Option
 Exercise
 Price
 ($)

 Option
 Expiration
 Date

 Shares or Units
 of Stock That
 Have Not Vested
 (#)

 Market Value of Shares or Units
 That Have Not
 Vested
 ($)

 Jeffrey Ervin

 5/21/2019

 (1)

 $

 -

 (1)

 $

 Sheri Gardzina

 5/21/2019

 1,250

 (1)

 $
 121.20

 5/21/2029

 (1)

 $

 (1)

 Four-year vesting with four equal annual installments

 2018
Incentive Compensation Plan

 Under
our 2018 Incentive Compensation Plan (the "Plan"), adopted by our board of directors and holders of a majority of our outstanding
shares of common stock in May 2018, 2,000,000 shares of common stock (subject to certain adjustments) are reserved for issuance upon
exercise of stock options and grants of other equity awards. The Plan is designed to serve as an incentive for attracting and retaining
qualified and motivated employees, officers, directors, consultants and other persons who provide services to us. The compensation committee
of our board of directors administers and interprets the Plan and is authorized to grant stock options and other equity awards thereunder
to all eligible employees of our company, including non-employee consultants to our company and directors.

 The
Plan provides for the granting of "incentive stock options" (as defined in Section 422 of the Code), non-statutory stock
options, stock appreciation rights, shares of restricted stock, restricted stock units, deferred stock, dividend equivalents, bonus stock
and awards in lieu of cash compensation, other stock-based awards and performance awards. Options may be granted under the Plan on such
terms and at such prices as determined by the compensation committee of the board, except that the per share exercise price of the stock
options cannot be less than the fair market value of our common stock on the date of grant. Each option will be exercisable after the
period or periods specified in the stock option agreement, but all stock options must be exercised within ten years from the date of
grant. Options granted under the Plan are not transferable other than by will or by the laws of descent and distribution. The compensation
committee of the board has the authority to amend or terminate the Plan, provided that no amendment shall be made without stockholder
approval if such stockholder approval is necessary to comply with any tax or regulatory requirement. Unless terminated sooner, the Plan
will terminate ten years from its effective date.

 Equity
Compensation Plan Summary

 The
following table provides information as of December 31, 2023, relating to our equity compensation plan:

 Plan Category

 Securities to
 be Issued Upon
 Exercise
 of Outstanding
 Equity Grants

 Weighted-
 Average
 Exercise Price of
 Outstanding
 Options

 Remaining
 Available for
 Further
 Issuance Under
 Equity
 Plans (Excluding
 Reflected
 in the First
 Column)

 Equity compensation plan approved by security holders (1)

 1,312

 $
 118.33

 1,952,704

 Equity compensation plans not approved by security holders

 -

 $
 -

 -

 Total

 1,312

 $
 118.33

 1,952,704

 (1)

 Consists solely of the
 2018 Incentive Compensation Plan.

 We
compensate each non-employee director through annual stock option grants and by paying a cash fee for each board of directors and
committee meeting attended. Our directors, Messrs. Evans, Pruitt, and Sucoff, were paid $11,250 each per quarter The directors were
also awarded 100,000 restricted stock units each. In 2023 and 2022, the Company awarded 100,000 RSUs to each director
with immediate vesting.

 Non-Employee
Director Compensation Table

 The
following table sets forth summary information concerning compensation paid or accrued for services rendered to us in all capacities
by the non-employee members of our Board of Directors for the fiscal year ended December 31, 2023.

 Name

 Fees Paid
 in Cash
 ($)

 Stock
 Awards
 ($) (1)

 Option
 Awards
 ($)

 Non-Equity
 Incentive
 Plan
 ($)

 Nonqualified
 Deferred
 Earnings
 ($)

 All Other
 Comp
 ($)

 Total
 ($)

 Maurice E. Evans

 $
 45,000

 $
 14,300

 -

 -

 -

 -

 $
 59,300

 Michael D. Pruitt

 $
 45,000

 $
 14,300

 -

 -

 -

 -

 $
 59,300

 Cary W. Sucoff

 $
 45,000

 $
 14,300

 -

 -

 -

 -

 $
 59,300

 (1)

 Represents full fair value
 at grant date of RSUs granted to our directors, computed in accordance with FASB ASC Topic 718.

 ITEM 12.

 SECURITY OWNERSHIP OF
 CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 The
following table sets forth information as of April 12, 2024 regarding the beneficial ownership of our common stock by (i) each person
we know to be the beneficial owner of 5% or more of our common stock, (ii) each of our current executive officers, (iii) each of our
directors, and (iv) all of our current executive officers and directors as a group. Information with respect to beneficial ownership
has been furnished by each director, executive officer or 5% or more stockholder, as the case may be. The address for all executive officers
and directors is c/o IMAC Holdings, Inc., 3401 Mallory Lane, Franklin, Tennessee 37067.

 Percentage
of beneficial ownership in the table below is calculated based on 1,148,321 shares of common stock outstanding as of April 12, 2024.
Beneficial ownership is determined in accordance with the rules of the SEC, which generally attribute beneficial ownership of securities
to persons who possess sole or shared voting power or investment power with respect to those securities and includes shares of our common
stock issuable pursuant to the exercise of stock options, warrants or other securities that are immediately exercisable or convertible
or exercisable or convertible within 60 days of April 12, 2024. Unless otherwise indicated, the persons or entities identified in this
table have sole voting and investment power with respect to all shares shown as beneficially owned by them.

 Name of Beneficial Owner

 Beneficially
 Owned

 Percentage
 Beneficially
 Owned

 12,380

 *
 %

 Matthew C. Wallis

 58,390

 4.12
 %

 Sheri Gardzina

 *

 Michael Pruitt

 8,808

 *

 Maurice Evans

 14,737

 1.04
 %

 Cary Sucoff

 10,000

 *

 All directors and executive officers as a group (7 persons)

 105,259

 7.42
 %

 *

 Less than 1% of outstanding
 shares.

 ITEM 13.

 CERTAIN RELATIONSHIPS
 AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 Policies
and Procedures for Transactions with Related Persons

 Our
board of directors intends to adopt a written related person transaction policy to set forth the policies and procedures for the review
and approval or ratification of related person transactions. Related persons include any executive officer, director or a holder of more
than 5% of our common stock, including any of their immediate family members and any entity owned or controlled by such persons. Related
person transactions refers to any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships
in which (i) we were or are to be a participant, (ii) the amount involved exceeds $120,000, and (iii) a related person had or will have
a direct or indirect material interest. Related person transactions include, without limitation, purchases of goods or services by or
from the related person or entities in which the related person has a material interest, indebtedness, guarantees of indebtedness, and
employment by us of a related person, in each case subject to certain exceptions set forth in Item 404 of Regulation S-K under the Securities
Act.

 We
expect that the policy will provide that in any related person transaction, our audit committee and board of directors will consider
all of the available material facts and circumstances of the transaction, including: the direct and indirect interests of the related
persons; in the event the related person is a director (or immediate family member of a director or an entity with which a director is
affiliated), the impact that the transaction will have on a director's independence; the risks, costs and benefits of the transaction
to us; and whether any alternative transactions or sources for comparable services or products are available. After considering all such
facts and circumstances, our audit committee and board of directors will determine whether approval or ratification of the related person
transaction is in our best interests. For example, if our audit committee determines that the proposed terms of a related person transaction
are reasonable and at least as favorable as could have been obtained from unrelated third parties, it will recommend to our board of
directors that such transaction be approved or ratified. In addition, if a related person transaction will compromise the independence
of one of our directors, our audit committee may recommend that our board of directors reject the transaction if it could affect our
ability to comply with securities laws and regulations or Nasdaq listing requirements.

 Each
transaction described in this section was entered into prior to the adoption of our audit committee charter and the foregoing policy
proposal.

 Corporate
Conversion

 Prior
to June 1, 2018, we were a Kentucky limited liability company named IMAC Holdings, LLC. Effective June 1, 2018, we converted into a Delaware
corporation pursuant to a statutory merger (the "Corporate Conversion") and changed our name to IMAC Holdings, Inc. All of
our outstanding membership interests were exchanged on a proportional basis into shares of common stock of IMAC Holdings, Inc.

 Related
Party Transactions

 On
June 1, 2018, we entered into a note payable to the Edward S. Bredniak Revocable Trust, the trustee of which is Edward S. Bredniak, a
former director of our company, in the amount of up to $2,000,000. An existing note payable with this entity with an outstanding balance
of $379,675.60 was combined into a new note payable. The note carried an interest rate of 10% per annum and all outstanding balances
were due and payable 13 months after the closing of this offering. On June 28, 2019, we entered into an amendment to this note (the "Amendment").
Among other things, the Amendment provided for the extension of the maturity of the note to January 5, 2021, reduced the principal amount
of the note from $2,000,000 to $1,750,000, corrected the name of the lender under the note from The Edward S. Bredniak Revocable Trust
u/a dated 8/14/2015 to Edward S. Bredniak, and provided for the payment of any outstanding amounts under the note which exceed $1,750,000
as of the date of the Amendment. The proceeds of this note were used to satisfy ongoing working capital needs, expenses related to the
preparation for our initial public offering, equipment and construction costs related to new clinic locations, and potential business
combination and transaction expenses. In November 2020, we entered into an amendment to this note (the "Amendment 2.0") that
provided for the extension of the maturity of the note to January 5, 2022. This note was paid in full on March 29, 2021.

 Effective
October 2022, the Company signed an agreement for The Molo Agency to provide marketing services including project management and reporting,
content management and social media management. The MOLO Agency is owned by Maurice Evans, an independent Board Member of the Company.
The Company paid $0 and $27,000 to The MOLO Agency for services provided in 2023 and 2022, respectively.

 Indemnification
Agreements

 We
have entered into an indemnification agreement with each of our directors and executive officers. The indemnification agreements and
our certificate of incorporation and bylaws require us to indemnify our directors and executive officers to the fullest extent permitted
by Delaware law.

Independence

 Our
Board of Directors has determined that Messrs. Evans, Pruitt and Sucoff, representing a majority of our directors, are independent directors
(as currently defined in Rule 5605(a)(2) of the NASDAQ listing rules). In determining the independence of our directors, the Board of
Directors considered all transactions in which the Company and any director had any interest, including those discussed above. The independent
directors meet as often as necessary to fulfill their responsibilities, including meeting at least twice annually in executive session
without the presence of non-independent directors and management.

 ITEM 14.

 PRINCIPAL ACCOUNTING FEES AND SERVICES

 On December 28, 2023, Cherry Bekaert
LLP resigned as the independent registered public accounting firm of the Company. Neither the Company's board of directors nor the
audit committee of the Company's board of directors took part in Cherry Bekaert's decision to resign.

 The report of Cherry Bekaert regarding
the Company's financial statements for the fiscal year ended December 31, 2022 did not contain an adverse opinion or disclaimer
of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles.

 During the fiscal year ended December
31, 2022, and subsequent interim periods through the date of Cherry Bekaert's resignation, there were no disagreements with Cherry
Bekaert on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements,
if not resolved to the satisfaction of Cherry Bekaert, would have caused it to make reference to such disagreement in its reports.

 The audit
committee of the Board of the Company conducted a search to determine the Company's independent registered public accounting firm
following the resignation of Cherry Bekaert LLP. On February 8, 2024, the Committee approved the appointment of Salberg & Company,
P.A. as the Company's independent registered public accounting firm, subject to satisfactory completion of standard engagement acceptance
procedures, which were subsequently completed.

 During the Company's two most recent fiscal years and the subsequent
interim period preceding Salberg's engagement, neither the Company nor anyone acting on its behalf consulted Salberg regarding
(1) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that
might be rendered on the Company's consolidated financial statements, and Salberg did not provide either a written report or oral
advice to the Company that was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or
financial reporting issue, or (2) any matter that was either the subject of a disagreement (as that term is used in Item 304(a)(1)(iv)
of Regulation S-K and the related instructions to Item 304 of Regulation S-K) on accounting principles or practices, financial statement
disclosure or auditing scope or procedures or a "reportable event" (as described in Item 304(a)(1)(v) of Regulation S-K).

 The following table sets forth the aggregate accounting
fees paid by us for the year ended December 31, 2023 and the year ended December 31, 2022. The below audit fees were paid to the firm
Salberg & Company, PA for the year ended December 31, 2023 and Cherry Bekaert, LLP for the year ended December 31, 2022. All non-audit
related services in the table were pre-approved and/or ratified by the Audit Committee of our Board of Directors.

 Salberg & Company, PA

 Cherry Bekaert, LLP

 Cherry Bekaert, LLP

 Type of Fees

 2023

 2023

 2022

 Audit fees

 $
 60,000

 $
 165,000

 $
 217,000

 Audit related fees

 -

 74,000

 45,240

 Total

 $
 60,000

 $
 239,000

 $
 262,240

 Types
of Fees Explanation

 Audit
Fees. Audit fees were incurred for accounting services rendered for the audit of our consolidated financial statements for the
years ended December 31, 2023 and 2022 and reviews of quarterly consolidated financial statements.

 Audit
Related Fees. We incurred fees in connection with accounting reviews for S-4 filings and agreed-upon
procedures.

 Audit
Committee Pre-Approval of Services by Independent Registered Public Accounting Firm

 Section
10A(i)(1) of the Exchange Act and related SEC rules require that all auditing and permissible non-audit services to be performed by our
principal accountants be approved in advance by the Audit Committee of the Board. Pursuant to Section 10A(i)(3) of the Exchange Act and
related SEC rules, the Audit Committee has established procedures by which the Chairman of the Audit Committee may pre-approve such services
provided that the pre-approval is detailed as to the particular service or category of services to be rendered and the Chairman reports
the details of the services to the full Audit Committee at its next regularly scheduled meeting.

 The audit committee has considered the services provided
by Salberg & Company, PA and Cherry Bekaert LLP as disclosed above in the captions "audit fees" and has concluded that
such services are compatible with the independence of Salberg & Company, PA and Cherry Bekaert LLP as our principal accountants for
the year ended December 31, 2023 and December 31, 2022, respectively.

 Our Board has considered the nature and amount of
fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible
with maintaining our independent auditors' independence.

 PART
IV

 ITEM 15.

 EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 Exhibit
 Number

 Description

 2.1

 Agreement
 and Plan of Merger by IMAC Holdings, Inc. and Theralink Technologies, Inc. (filed as Exhibit 2.1 to the Company's Current
 Report on Form 8-K filed with the SEC on May 26, 2023 and incorporated herein by reference).

 3.1

 of Incorporation of IMAC Holdings, Inc. (filed as Exhibit 3.1 to the Company's Registration Statement on Form S-1 filed with
 the SEC on September 17, 2018 and incorporated herein by reference).

 3.2

 of Amendment to the Certificate of Incorporation of IMAC Holdings, Inc. (filed as Exhibit 3.2 to the Company's Registration
 Statement on Form S-1/A filed with the SEC on December 10, 2018 and incorporated herein by reference).

 3.3

 of Correction of the Certificate of Incorporation of IMAC Holdings, Inc. filed with the Delaware Secretary of State on August 8,
 2019 (filed as Exhibit 3.4 to the Company's Current Report on Form 8-K filed with the SEC on August 9, 2019 and incorporated
 herein by reference).

 3.4

 Bylaws
 of IMAC Holdings, Inc. (filed as Exhibit 3.2 to the Company's Registration Statement on Form S-1 filed with the SEC on September
 17, 2018 and incorporated herein by reference).

 3.5

 of Designation of Preferences, Rights and Limitations of Series A-1 Convertible Preferred Stock of IMAC Holdings, Inc. (filed as
 Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on July 28, 2023 and incorporated herein by
 reference).

 3.6

 of Designation of Preferences, Rights and Limitations of Series A-2 Convertible Preferred Stock of IMAC Holdings, Inc. (filed as
 Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the SEC on July 28, 2023 and incorporated herein by
 reference).

 3.7

 of Designation of Preferences, Rights and Limitations of Series B-1 Convertible Preferred Stock of IMAC Holdings, Inc. (filed as
 Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on December 27, 2023 and incorporated herein by
 reference).

 3.8

 of Designation of Preferences, Rights and Limitations of Series B-2 Convertible Preferred Stock of IMAC Holdings, Inc. (filed as
 Exhibit 3.2 to the Company's Current Report on Form 8-K filed with the SEC on December 27, 2023 and incorporated herein by
 reference).

 4.1

 Specimen Common Stock Certificate (filed as Exhibit 4.1 to the Company's Registration Statement on Form S-1 filed with the SEC on September 17, 2018 and incorporated herein by reference).

 4.2

 Form of Common Stock Warrant certificate (filed as Exhibit 4.2 to the Company's Registration Statement on Form S-1/A filed with the SEC on December 3, 2018 and incorporated herein by reference).

 4.3

 Form of Warrant Agency Agreement between IMAC Holdings, Inc. and Equity Stock Transfer, LLC (filed as Exhibit 4.3 to the Company's Registration Statement on Form S-1/A filed with the SEC on December 3, 2018 and incorporated herein by reference).

 4.4

 Form of Underwriters' Unit Purchase Option (filed as Exhibit 4.4 to the Company's Registration Statement on Form S-1/A filed with the SEC on February 8, 2019 and incorporated herein by reference).

 4.5

 Description of the Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (filed as Exhibit 4.5 to the Company's Annual Report on Form 10-K filed with the SEC on March 26, 2020 and incorporated herein by reference).

 4.6

 Description
 of Registered Direct Offering, Series 1 Warrants and Series 2 Warrants filed with the SEC on August 15, 2022.

 10.1

 2018 Incentive Compensation Plan (filed as Exhibit 10.1 to the Company's Registration Statement on Form S-1 filed with the SEC on September 17, 2018 and incorporated herein by reference).

 10.2

 Form of Indemnification Agreement (filed as Exhibit 10.2 to the Company's Registration Statement on Form S-1 filed with the SEC on September 17, 2018 and incorporated herein by reference).

 10.4

 Management Services Agreement between IMAC Holdings, LLC and Integrated Medicine and Chiropractic Regeneration Center PSC (filed as Exhibit 10.4 to the Company's Registration Statement on Form S-1 filed with the SEC on September 17, 2018 and incorporated herein by reference).

 10.7

 Commercial Line of Credit Agreement, dated May 1, 2018, between Integrated Medicine and Chiropractic Regeneration Center of St. Louis, LLC and Independence Bank of Kentucky (filed as Exhibit 10.12 to the Company's Registration Statement on Form S-1 filed with the SEC on September 17, 2018 and incorporated herein by reference).

 10.11

 Addendum to Merger Agreement with Clinic Management Associates, LLC (filed as Exhibit 10.18 to the Company's Registration Statement on Form S-1 filed with the SEC on October 26, 2018 and incorporated herein by reference).

 10.12

 Addendum to Unit Purchase Agreement among IMAC Holdings, Inc., IMAC of St. Louis, LLC and certain unitholders of IMAC of St. Louis LLC (filed as Exhibit 10.19 to the Company's Registration Statement on Form S-1 filed with the SEC on October 26, 2018 and incorporated herein by reference).

 10.13

 Employment Agreement, dated as of March 1, 2019, between IMAC Holdings, Inc. and Jeffrey S. Ervin (filed as Exhibit 10.13 to the Company's Current Report on Form 10-K filed with the SEC on April 16, 2019 and incorporated herein by reference).

 10.14

 Employment Agreement, dated as of March 1, 2019, between IMAC Holdings, Inc. and Matthew C. Wallis (filed as Exhibit 10.14 to the Company's Current Report on Form 10-K filed with the SEC on April 16, 2019 and incorporated herein by reference).

 10.15

 Employment Agreement, dated as of April 19, 2019, between IMAC Holdings, Inc. and Jason Hui (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on April 25, 2019 and incorporated herein by reference).

 10.17

 Lease, dated as of March 1, 2019, by and between Advantage Therapy, LLC and Sagamore Hill Development Company, LLC (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2019 and incorporated herein by reference).

 10.20

 Amended and Restated Term Note, dated as of September 19, 2019, made by Progressive Health and Rehabilitation, LTD in favor of PNC Bank, National Association (filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2019 and incorporated herein by reference).

 10.21

 Form of 10% Promissory Note issued by IMAC Holdings, Inc. (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 9, 2020 and incorporated herein by reference).

 10.22

 Employment Agreement, dated as of February 4, 2022 and commencing February 21, 2022, between IMAC Holdings, Inc. and Dr. Ben Lerner. (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 21, 2022 and incorporated herein by reference).

 21.1*

 List of subsidiaries.

 31.1*

 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 31.2*

 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 32.1*

 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 32.2*

 Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 97.1*

 IMAC Holdings, Inc. Dodd-Frank Clawback Policy

 Compensatory plan or agreement.

 *

 Filed herewith

 +

 The certifications attached
 as Exhibits 32.1 and 32.2 that accompany this Annual Report on Form 10-K are not deemed filed with the Securities and Exchange Commission
 and are not to be incorporated by reference into any filing of IMAC Holdings, Inc. under the Securities and Exchange Act of 1933,
 as amended, or the Securities and Exchange Act of 1934, as amended, whether made before or after the date of this 10-K, irrespective
 of any general incorporation language contained in such filings.

 All
other schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements
or notes thereto.

 ITEM 16.

 FORM 10-K SUMMARY

 None.

 SIGNATURES

 Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.

 IMAC HOLDINGS, INC.

 Dated: April 16, 2024

 By:

 /s/

 Name:

 Title:

 Chief Executive Officer

 Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant
and in the capacities and on the dates indicated:

 Name

 Title

 Date

 /s/

 Director and Chief Executive
 Officer

 April

 (Principal Executive
 Officer)

 /s/
 Sheri Gardzina

 Chief Financial Officer

 April

 Sheri Gardzina

 (Principal Financial
 and Accounting Officer)

 /s/
 Matthew C. Wallis

 April

 Matthew C. Wallis

 /s/
 Maurice E. Evans

 April

 Maurice E. Evans

 /s/
 Michael D. Pruitt

 April

 Michael D. Pruitt

 /s/
 Cary W. Sucoff

 April

 Cary W. Sucoff