Good Clinic, launched in Minneapolis last year by the founder of the MinuteClinic chain, is now struggling to survive.
Its parent company, called Mitesco, is trying to raise capital after borrowing nearly $7 million from company executives and others to stay afloat this year, according to a filing with the U.S. Securities and Exchange Commission.
"There is substantial doubt about the ability of the company to continue as a going concern for one year," Mitesco said in the filing. "The company's continuance is dependent on raising capital and generating revenues sufficient to sustain operations."
Mitesco reported cash of $6,000 on Sept. 30, current liabilities of $14.4 million and a net loss of $11.7 million so far in 2022, according to the SEC filing.
An unspecified number of employees have been furloughed, following missed paychecks in November. Four of its six clinics have closed.
Mitesco CEO Larry Diamond declined comment this week.
Good Clinic is precluded from commenting publicly while trying to raise capital and also gain a listing on the Nasdaq stock exchange, an attorney for the company said.
Mitesco's stock price has fallen from 42 cents per share to 6 cents, giving it a market value of about $14 million. It trades over-the-counter; a so-called "pink sheets" company.