LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary
care services, today reported financial results for the three and
six months ended June 30, 2023.
Management Commentary
“The second quarter of 2023 was a breakout quarter for LifeMD.
Record quarterly revenue was driven by increasing demand for our
telehealth offering and we achieved positive free cash flow for the
first time in our company’s history and ahead of guidance,” said
Justin Schreiber, Chairman and Chief Executive Officer of LifeMD.
“In addition, we launched our Weight Management telehealth service
program, which is off to a tremendous start. We believe this
comprehensive approach to weight management, including GLP-1
medications for medically qualified individuals, could be a
catalyst for significant growth and enhanced profitability. It also
is the primary reason for raising 2023 revenue guidance. In
addition, I am extremely proud of the performance of our Lifestyle
telehealth businesses anchored by our men’s health brand, RexMD.
These businesses continued to exceed our expectations with a 16%
increase in average daily new patient sign-ups in the quarter.”
“Our strong second quarter financial performance coupled with
tremendous momentum in our telehealth businesses position LifeMD to
gain share within these large markets. As such, we are raising our
2023 revenue guidance and slightly lowering adjusted EBITDA
guidance given the near-term investment necessary to accelerate our
growth in the Weight Management business, which we believe will be
materially accretive beginning in 2024,” commented Marc Benathen,
Chief Financial Officer of LifeMD. “WorkSimpli continues to perform
well with active subscribers growing 35% over the prior-year
period, and remains on track to generate over $15 million of cash
flow this year that we are reinvesting in our core telehealth
offerings.”
Second Quarter Financial Highlights
- Revenue increased 18% year-over-year to $35.9 million.
- Telehealth revenue increased 11% versus the first quarter of
2023.
- Telehealth active subscribers increased 15% over the year-ago
period to approximately 193,000.
- Virtual Primary Care revenue increased 122% versus the first
quarter of 2023.
- WorkSimpli active subscribers increased 35% over the year-ago
period to approximately 171,000.
- Gross margin was 87%, up from 85% in the prior-year
period.
- GAAP net loss was $7.5 million or $0.23 per share, compared
with a GAAP net loss of $13.8 million or $0.45 per share in the
prior-year period.
- Adjusted EBITDA was $1.7 million compared with an adjusted
EBITDA loss of $6.9 million in the year-ago period (see definition
below of this non-GAAP financial measure and reconciliation to
GAAP).
- Adjusted diluted EPS was $0.05, up 123% versus the same period
a year ago (see definition below of this non-GAAP financial measure
and reconciliation to GAAP).
- Free cash flow, defined as operating cash flow less cash flow
from investing activities, was $2.3 million, reaching the milestone
of positive free cash flow ahead of guidance. Net cash flow
including debt service was also positive.
Second Quarter Key Performance Metrics
|
|
|
|
|
|
($ in
000s) |
|
Three Months Ended June 30, |
|
Y-o-Y |
Key Performance
Metrics |
|
|
2023 |
|
|
2022 |
|
|
% Growth |
Revenue |
|
|
|
|
|
Telehealth |
|
$ |
22,351 |
|
$ |
22,268 |
|
|
0 |
% |
WorkSimpli |
|
$ |
13,596 |
|
$ |
8,191 |
|
|
66 |
% |
Total
Revenue |
|
$ |
35,947 |
|
$ |
30,459 |
|
|
18 |
% |
|
|
|
|
|
|
Subscription Revenue as % of
Total |
|
|
95 |
% |
|
93 |
% |
|
2 |
% |
|
|
|
|
|
|
Active Subscribers |
|
|
|
|
|
Telehealth Active
Subscribers |
|
|
192,667 |
|
|
168,024 |
|
|
15 |
% |
WorkSimpli Active
Subscribers |
|
|
171,429 |
|
|
127,304 |
|
|
35 |
% |
Total Active
Subscribers |
|
|
364,096 |
|
|
295,328 |
|
|
23 |
% |
Financial Guidance
For the third quarter of 2023, the Company expects:
- Revenue to be between $37.5 million and $38.5 million.
- Adjusted EBITDA to be between $2.5 million and $3.5
million.
For the full year 2023, the Company expects:
- Revenue to be between $146 million and $152 million.
- Adjusted EBITDA to be between $10 and $13 million.
Excluding the launch of the Weight Management program, revenue
and adjusted EBITDA guidance for 2023 would be within the
previously stated guidance ranges of $140 million to $150 million
for revenue and $12 million to $18 million for adjusted EBITDA. The
company’s preliminary estimates suggest its new Weight Management
business could be substantially accretive to 2024 and beyond
results.
Conference Call
LifeMD’s management will host a conference call today at 4:30
p.m. Eastern time to discuss the Company’s financial results and
outlook, and answer questions. Details for the call are as
follows:
Toll-free
dial-in number: |
|
1-877-704-4453 |
International dial-in number: |
|
1-201-389-0920 |
Conference ID: |
|
13739131 |
Webcast: |
|
https://viavid.webcasts.com/starthere.jsp?ei=1618274&tp_key=9d49d282dd |
|
|
|
A replay of the webcast will be available in the Investors
section of the Company’s website at ir.lifemd.com.
About LifeMD
LifeMD is a direct-to-patient telehealth company with a
portfolio of brands that offer virtual primary care, diagnostics
and specialized treatment for men’s and women’s health, allergy
& asthma and dermatologic conditions. By leveraging its
proprietary technology platform, 50-state affiliated medical group
and nationwide mail-order pharmacy network, LifeMD is making
top-notch healthcare available and affordable to anyone. To learn
more, go to LifeMD.com.
Cautionary Note Regarding Forward Looking
Statements
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended;
Section 21E of the Securities Exchange Act of 1934, as amended; and
the safe harbor provision of the U.S. Private Securities Litigation
Reform Act of 1995. Forward-looking statements contained in this
news release may be identified by the use of words such as:
“believe,” “expect,” “anticipate,” “project,” “should,” “plan,”
“will,” “may,” “intend,” “estimate,” predict,” “continue,” and
“potential,” or, in each case, their negative or other variations
or comparable terminology referencing future periods. Examples of
forward-looking statements include, but are not limited to,
statements regarding our financial outlook and guidance, short and
long-term business performance and operations, future revenues and
earnings, regulatory developments, legal events or outcomes,
ability to comply with complex and evolving regulations, market
conditions and trends, new or expanded products and offerings,
growth strategies, underlying assumptions, and the effects of any
of the foregoing on our future results of operations or financial
condition.
Forward-looking statements are not historical facts and are not
assurances of future performance. Rather, these statements are
based on our current expectations, beliefs, and assumptions
regarding future plans and strategies, projections, anticipated and
unanticipated events and trends, the economy, and other future
conditions, including the impact of any of the aforementioned on
our future business. As forward-looking statements relate to the
future, they are subject to inherent risk, uncertainties, and
changes in circumstances and assumptions that are difficult to
predict, including some of which are out of our control.
Consequently, our actual results, performance, and financial
condition may differ materially from those indicated in the
forward-looking statements. These risks and uncertainties include,
but are not limited to, “Risk Factors” identified in our filings
with the Securities and Exchange Commission, including, but not
limited to, our most recently filed Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and any amendments thereto. Even if
our actual results, performance, or financial condition are
consistent with forward-looking statements contained in such
filings, they may not be indicative of our actual results,
performance, or financial condition in subsequent periods.
Any forward-looking statement made in the news release is based
on information currently available to us as of the date on which
this release is made. We undertake no obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable law or regulation.
Company Contact:LifeMD, Inc.Marc Benathen,
CFOmarc@lifemd.com
LIFEMD, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash |
$ |
11,906,741 |
|
|
$ |
3,958,957 |
|
Accounts receivable, net |
|
3,668,543 |
|
|
|
2,834,750 |
|
Product deposit |
|
235,115 |
|
|
|
127,265 |
|
Inventory, net |
|
3,698,302 |
|
|
|
3,703,363 |
|
Other current assets |
|
672,195 |
|
|
|
687,022 |
|
Total Current Assets |
|
20,180,896 |
|
|
|
11,311,357 |
|
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
|
Equipment, net |
|
444,226 |
|
|
|
476,441 |
|
Right of use asset |
|
928,696 |
|
|
|
1,206,009 |
|
Capitalized software, net |
|
10,391,372 |
|
|
|
8,840,187 |
|
Intangible assets, net |
|
3,501,199 |
|
|
|
3,831,859 |
|
Total Non-current Assets |
|
15,265,493 |
|
|
|
14,354,496 |
|
|
|
|
|
|
|
Total Assets |
$ |
35,446,389 |
|
|
$ |
25,665,853 |
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS'
DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Accounts payable |
$ |
9,593,379 |
|
|
$ |
10,106,793 |
|
Accrued expenses |
|
14,761,756 |
|
|
|
12,166,509 |
|
Notes payable, net |
|
735,534 |
|
|
|
2,797,250 |
|
Current operating lease liabilities |
|
758,927 |
|
|
|
756,093 |
|
Deferred revenue |
|
5,668,210 |
|
|
|
5,547,506 |
|
Total Current Liabilities |
|
31,517,806 |
|
|
|
31,374,151 |
|
|
|
|
|
|
|
Long-term Liabilities |
|
|
|
|
|
Long-term debt, net |
|
13,538,502 |
|
|
|
- |
|
Noncurrent operating lease liabilities |
|
276,340 |
|
|
|
574,136 |
|
Contingent consideration |
|
318,750 |
|
|
|
443,750 |
|
Purchase price payable |
|
- |
|
|
|
579,319 |
|
Total Liabilities |
|
45,651,398 |
|
|
|
32,971,356 |
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
Mezzanine Equity |
|
|
|
|
|
Preferred Stock, $0.0001 par value; 5,000,000 shares
authorized |
|
|
|
|
|
Series B Preferred Stock, $0.0001 par value; 5,000 shares
authorized, 3,500 and 3,500 shares issued and outstanding,
liquidation value approximately, $1,438 and $1,305 per share as of
June 30, 2023 and December 31, 2022, respectively |
|
5,032,929 |
|
|
|
4,565,822 |
|
|
|
|
|
|
|
Stockholders’ Deficit |
|
|
|
|
|
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares
authorized, 1,400,000 shares issued and outstanding, liquidation
value approximately $28.94 and $27.84 per share as of June 30, 2023
and December 31, 2022, respectively |
|
140 |
|
|
|
140 |
|
Common Stock, $0.01 par value; 100,000,000 shares authorized,
32,564,835 and 31,552,775 shares issued, 32,461,795 and 31,449,735
outstanding as of June 30, 2023 and December 31, 2022,
respectively |
|
325,649 |
|
|
|
315,528 |
|
Additional paid-in capital |
|
186,673,930 |
|
|
|
179,015,250 |
|
Accumulated deficit |
|
(202,857,575 |
) |
|
|
(190,562,994 |
) |
Treasury stock, 103,040 and 103,040 shares, at cost, as of June 30,
2023 and December 31, 2022, respectively |
|
(163,701 |
) |
|
|
(163,701 |
) |
Total LifeMD, Inc. Stockholders’ Deficit |
|
(16,021,557 |
) |
|
|
(11,395,777 |
) |
Non-controlling interest |
|
783,619 |
|
|
|
(475,548 |
) |
Total Stockholders’ Deficit |
|
(15,237,938 |
) |
|
|
(11,871,325 |
) |
Total Liabilities, Mezzanine Equity and Stockholders’ Deficit |
$ |
35,446,389 |
|
|
$ |
25,665,853 |
|
|
|
|
|
|
|
LIFEMD, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Telehealth revenue, net |
|
$ |
22,351,128 |
|
|
$ |
22,267,963 |
|
|
$ |
42,553,931 |
|
|
$ |
44,866,024 |
|
WorkSimpli revenue, net |
|
|
13,595,785 |
|
|
|
8,190,535 |
|
|
|
26,519,317 |
|
|
|
14,635,311 |
|
Total revenues, net |
|
|
35,946,913 |
|
|
|
30,458,498 |
|
|
|
69,073,248 |
|
|
|
59,501,335 |
|
Cost of
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of telehealth
revenue |
|
|
4,125,945 |
|
|
|
4,453,126 |
|
|
|
8,046,126 |
|
|
|
9,539,194 |
|
Cost of WorkSimpli
revenue |
|
|
422,485 |
|
|
|
182,185 |
|
|
|
717,273 |
|
|
|
344,292 |
|
Total cost of revenues |
|
|
4,548,430 |
|
|
|
4,635,311 |
|
|
|
8,763,399 |
|
|
|
9,883,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
31,398,483 |
|
|
|
25,823,187 |
|
|
|
60,309,849 |
|
|
|
49,617,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses |
|
|
19,567,903 |
|
|
|
21,817,966 |
|
|
|
36,285,548 |
|
|
|
43,727,791 |
|
General and administrative
expenses |
|
|
12,119,573 |
|
|
|
13,159,937 |
|
|
|
22,722,336 |
|
|
|
25,372,680 |
|
Other operating expenses |
|
|
1,313,789 |
|
|
|
2,041,976 |
|
|
|
3,018,554 |
|
|
|
3,459,445 |
|
Customer service expenses |
|
|
1,912,078 |
|
|
|
1,006,363 |
|
|
|
3,467,482 |
|
|
|
1,939,670 |
|
Development costs |
|
|
1,380,686 |
|
|
|
701,070 |
|
|
|
2,564,285 |
|
|
|
1,129,403 |
|
Goodwill impairment
charge |
|
|
- |
|
|
|
2,735,000 |
|
|
|
- |
|
|
|
2,735,000 |
|
Change in fair value of
contingent consideration |
|
|
- |
|
|
|
(2,735,000 |
) |
|
|
- |
|
|
|
(2,735,000 |
) |
Total expenses |
|
|
36,294,029 |
|
|
|
38,727,312 |
|
|
|
68,058,205 |
|
|
|
75,628,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
(4,895,546 |
) |
|
|
(12,904,125 |
) |
|
|
(7,748,356 |
) |
|
|
(26,011,140 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(995,670 |
) |
|
|
(132,236 |
) |
|
|
(1,260,135 |
) |
|
|
(300,170 |
) |
Gain (loss) on debt
extinguishment |
|
|
- |
|
|
|
63,400 |
|
|
|
(325,198 |
) |
|
|
63,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(5,891,216 |
) |
|
|
(12,972,961 |
) |
|
|
(9,333,689 |
) |
|
|
(26,247,910 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
|
|
841,784 |
|
|
|
46,001 |
|
|
|
1,407,767 |
|
|
|
70,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to LifeMD, Inc. |
|
|
(6,733,000 |
) |
|
|
(13,018,962 |
) |
|
|
(10,741,456 |
) |
|
|
(26,318,637 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
(776,562 |
) |
|
|
(776,562 |
) |
|
|
(1,553,125 |
) |
|
|
(1,553,125 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to LifeMD, Inc. common stockholders |
|
$ |
(7,509,562 |
) |
|
$ |
(13,795,524 |
) |
|
$ |
(12,294,581 |
) |
|
$ |
(27,871,762 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share
attributable to LifeMD, Inc. common stockholders |
|
$ |
(0.23 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.91 |
) |
Diluted loss per share
attributable to LifeMD, Inc. common stockholders |
|
$ |
(0.23 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
32,560,035 |
|
|
|
30,804,465 |
|
|
|
32,189,954 |
|
|
|
30,777,377 |
|
Diluted |
|
|
32,560,035 |
|
|
|
30,804,465 |
|
|
|
32,189,954 |
|
|
|
30,777,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEMD, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(5,891,216 |
) |
|
$ |
(12,972,961 |
) |
|
$ |
(9,333,689 |
) |
|
$ |
(26,247,910 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of debt discount |
|
|
115,381 |
|
|
|
- |
|
|
|
153,842 |
|
|
|
- |
|
Amortization of capitalized software |
|
|
1,260,022 |
|
|
|
592,214 |
|
|
|
2,348,667 |
|
|
|
976,026 |
|
Amortization of
intangibles |
|
|
245,968 |
|
|
|
226,893 |
|
|
|
479,528 |
|
|
|
341,287 |
|
Accretion of consideration payable |
|
|
48,738 |
|
|
|
135,368 |
|
|
|
114,216 |
|
|
|
135,368 |
|
Depreciation of fixed assets |
|
|
48,783 |
|
|
|
40,770 |
|
|
|
96,434 |
|
|
|
73,247 |
|
(Gain) loss on debt extinguishment |
|
|
- |
|
|
|
(63,400 |
) |
|
|
325,198 |
|
|
|
(63,400 |
) |
Change in fair value of contingent consideration |
|
|
- |
|
|
|
(2,735,000 |
) |
|
|
- |
|
|
|
(2,735,000 |
) |
Goodwill impairment charge |
|
|
- |
|
|
|
2,735,000 |
|
|
|
- |
|
|
|
2,735,000 |
|
Operating lease payments |
|
|
186,095 |
|
|
|
171,838 |
|
|
|
370,428 |
|
|
|
290,362 |
|
Stock compensation expense |
|
|
2,861,969 |
|
|
|
4,041,006 |
|
|
|
5,525,483 |
|
|
|
8,513,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Assets and Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(731,544 |
) |
|
|
(717,125 |
) |
|
|
(833,793 |
) |
|
|
(1,533,572 |
) |
Product deposit |
|
|
11,164 |
|
|
|
174,452 |
|
|
|
(107,850 |
) |
|
|
(237,285 |
) |
Inventory |
|
|
(315,720 |
) |
|
|
(1,725,208 |
) |
|
|
5,061 |
|
|
|
(1,341,474 |
) |
Other current assets |
|
|
401,868 |
|
|
|
(30,216 |
) |
|
|
14,827 |
|
|
|
(80,015 |
) |
Change in operating lease liability |
|
|
(194,531 |
) |
|
|
(164,950 |
) |
|
|
(388,077 |
) |
|
|
(210,451 |
) |
Deferred revenue |
|
|
(227,335 |
) |
|
|
203,947 |
|
|
|
120,704 |
|
|
|
492,622 |
|
Accounts payable |
|
|
2,690,345 |
|
|
|
376,345 |
|
|
|
(513,414 |
) |
|
|
2,853,811 |
|
Accrued expenses |
|
|
4,134,337 |
|
|
|
(387,938 |
) |
|
|
4,232,140 |
|
|
|
(2,152,511 |
) |
Other operating activity |
|
|
- |
|
|
|
- |
|
|
|
(579,319 |
) |
|
|
- |
|
Net cash provided by (used in) operating activities |
|
|
4,644,324 |
|
|
|
(10,098,965 |
) |
|
|
2,030,386 |
|
|
|
(18,190,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for capitalized software costs |
|
|
(2,121,869 |
) |
|
|
(2,424,785 |
) |
|
|
(3,899,852 |
) |
|
|
(4,522,928 |
) |
Purchase of equipment |
|
|
(30,563 |
) |
|
|
(90,180 |
) |
|
|
(64,219 |
) |
|
|
(357,331 |
) |
Purchase of intangible assets |
|
|
(148,868 |
) |
|
|
- |
|
|
|
(148,868 |
) |
|
|
(4,000,500 |
) |
Acquisition of business, net of cash acquired |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,012,395 |
) |
Net cash used in investing activities |
|
|
(2,301,300 |
) |
|
|
(2,514,965 |
) |
|
|
(4,112,939 |
) |
|
|
(9,893,154 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt, net |
|
|
- |
|
|
|
- |
|
|
|
14,473,002 |
|
|
|
- |
|
Proceeds from notes payable |
|
|
- |
|
|
|
- |
|
|
|
2,000,000 |
|
|
|
- |
|
Repayment of notes payable, net of prepayment penalty |
|
|
(1,086,956 |
) |
|
|
- |
|
|
|
(4,386,915 |
) |
|
|
- |
|
Cash proceeds from exercise of options |
|
|
- |
|
|
|
90,400 |
|
|
|
- |
|
|
|
90,400 |
|
Cash proceeds from exercise of warrants |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
38,500 |
|
Preferred stock dividends |
|
|
(776,562 |
) |
|
|
(776,562 |
) |
|
|
(1,553,125 |
) |
|
|
(1,553,125 |
) |
Contingent consideration payment for ResumeBuild |
|
|
(62,500 |
) |
|
|
(31,250 |
) |
|
|
(125,000 |
) |
|
|
(31,250 |
) |
Net payments for membership
interest of WorkSimpli |
|
|
889 |
|
|
|
- |
|
|
|
(305,625 |
) |
|
|
- |
|
Distributions to non-controlling interest |
|
|
(36,000 |
) |
|
|
(36,000 |
) |
|
|
(72,000 |
) |
|
|
(72,000 |
) |
Net cash (used in) provided by financing activities |
|
|
(1,961,129 |
) |
|
|
(753,412 |
) |
|
|
10,030,337 |
|
|
|
(1,527,475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash |
|
|
381,895 |
|
|
|
(13,367,342 |
) |
|
|
7,947,784 |
|
|
|
(29,610,737 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of period |
|
|
11,524,846 |
|
|
|
25,084,644 |
|
|
|
3,958,957 |
|
|
|
41,328,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of period |
|
$ |
11,906,741 |
|
|
$ |
11,717,302 |
|
|
$ |
11,906,741 |
|
|
$ |
11,717,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
495,188 |
|
|
$ |
- |
|
|
$ |
768,188 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Warrants issued for debt instruments |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,088,343 |
|
|
$ |
- |
|
Cashless exercise of options |
|
$ |
165 |
|
|
$ |
255 |
|
|
$ |
165 |
|
|
$ |
255 |
|
Consideration payable for Cleared acquisition |
|
$ |
- |
|
|
$ |
8,079,367 |
|
|
$ |
- |
|
|
$ |
8,079,367 |
|
Consideration payable for ResumeBuild acquisition |
|
$ |
- |
|
|
$ |
500,000 |
|
|
$ |
- |
|
|
$ |
500,000 |
|
Stock issued for nontcontingent consideration payment |
|
$ |
642,000 |
|
|
$ |
- |
|
|
$ |
1,284,000 |
|
|
$ |
- |
|
Principal of Paycheck Protection Program loans forgiven |
|
$ |
- |
|
|
$ |
63,400 |
|
|
$ |
- |
|
|
$ |
63,400 |
|
Right of use asset |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
93,115 |
|
|
$ |
- |
|
Right of use lease liability |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
93,115 |
|
|
$ |
- |
|
|
About the Use of Non-GAAP
Financial Measures:To supplement our financial information
presented in accordance with GAAP, we use adjusted EBITDA and
adjusted EPS as non-GAAP financial measures to clarify and enhance
an understanding of past performance. We believe that the
presentation of these financial measures enhances an investor’s
understanding of our financial performance. We further believe that
these financial measures are useful financial metrics to assess our
operating performance from period-to-period by excluding certain
items that we believe are not representative of our core business.
We use certain financial measures for business planning purposes
and in measuring our performance relative to that of our
competitors.
Adjusted EBITDA is defined as income (loss) attributable to
common shareholders before interest, taxes, depreciation,
amortization, accretion, financing transaction expense,
non-controlling interests, foreign currency translation, inventory
valuation, sales return reserves, litigation costs, loss on debt
extinguishment, dividends, insurance acceptance readiness,
acquisition costs, severance expenses and stock-based compensation
expense. We have provided below a reconciliation of adjusted EBITDA
to net loss attributable to common shareholders, its most directly
comparable GAAP financial measure.
Adjusted EPS is defined as the diluted net loss attributable to
LifeMD, Inc common shareholders before interest, taxes,
depreciation, amortization, accretion, financing transaction
expense, non-controlling interests, foreign currency translation,
inventory valuation, sales return reserves, litigation costs, loss
on debt extinguishment, dividends, insurance acceptance readiness,
acquisition costs, severance expenses and stock-based compensation
expense. We have provided below a reconciliation of adjusted EPS to
Diluted loss per share attributable to LifeMD, Inc common
shareholders, its most directly comparable GAAP financial
measure.
We believe the above financial
measures are commonly used by investors to evaluate our performance
and that of our competitors. However, our use of the terms adjusted
EBITDA and adjusted EPS may vary from that of others in our
industry. Adjusted EBITDA and adjusted EPS should not be considered
as an alternative to net loss before taxes, net loss per share,
operating loss or any other performance measures derived in
accordance with GAAP as measures of performance.
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Loss to Adjusted
EBITDA |
(in whole numbers, unaudited) |
|
|
Three Months Ended June
30, |
|
Six Months Ended June
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss attributable to common shareholders |
|
$ |
(7,509,562 |
) |
|
$ |
(13,795,524 |
) |
|
$ |
(12,294,581 |
) |
|
$ |
(27,871,762 |
) |
|
|
|
|
|
|
|
|
Interest expense (excluding
amortization of debt discount) |
|
|
525,374 |
|
|
|
18,798 |
|
|
|
639,186 |
|
|
|
74,540 |
|
Depreciation, amortization and
accretion expense |
|
|
1,603,511 |
|
|
|
995,245 |
|
|
|
3,038,845 |
|
|
|
1,525,928 |
|
Amortization of debt
discount |
|
|
115,381 |
|
|
|
- |
|
|
|
153,842 |
|
|
|
- |
|
(Gain) loss on debt
extinguishment |
|
|
- |
|
|
|
(63,400 |
) |
|
|
325,198 |
|
|
|
(63,400 |
) |
Financing transactions
expense |
|
|
285,626 |
|
|
|
- |
|
|
|
430,077 |
|
|
|
152,015 |
|
Litigation costs |
|
|
933,126 |
|
|
|
655,494 |
|
|
|
1,005,926 |
|
|
|
704,359 |
|
Inventory and reserve
adjustment |
|
|
132,991 |
|
|
|
13,708 |
|
|
|
232,630 |
|
|
|
230,661 |
|
Severance costs |
|
|
- |
|
|
|
77,241 |
|
|
|
- |
|
|
|
179,090 |
|
Acquisitions expenses |
|
|
15,070 |
|
|
|
240,153 |
|
|
|
40,196 |
|
|
|
265,153 |
|
Insurance acceptance
readiness |
|
|
58,540 |
|
|
|
- |
|
|
|
58,540 |
|
|
|
- |
|
Accrued interest on Series B
Convertible Preferred Stock |
|
|
354,915 |
|
|
|
113,438 |
|
|
|
467,107 |
|
|
|
225,630 |
|
Foreign exchange (gain)
loss |
|
|
168,098 |
|
|
|
- |
|
|
|
523,720 |
|
|
|
- |
|
Dividends |
|
|
1,346,197 |
|
|
|
776,562 |
|
|
|
2,158,760 |
|
|
|
1,553,125 |
|
Stock-based compensation
expense |
|
|
2,861,969 |
|
|
|
4,041,006 |
|
|
|
5,525,483 |
|
|
|
8,513,787 |
|
Net income attributable to
noncontrolling interests |
|
|
841,784 |
|
|
|
46,001 |
|
|
|
1,407,767 |
|
|
|
70,727 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
1,733,020 |
|
|
$ |
(6,881,278 |
) |
|
$ |
3,712,696 |
|
|
$ |
(14,440,147 |
) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Diluted Loss per Share Attributable
to Common Shareholders to Adjusted EPS |
(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Diluted loss per share attributable to LifeMD, Inc. common
shareholders |
|
|
$ |
(0.23 |
) |
|
$ |
(0.45 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.91 |
) |
|
|
|
|
|
|
|
|
Adjustments to
Reconcile GAAP Diluted Loss Per Share to Adjusted EPS |
|
|
|
|
|
|
|
|
Interest expense (excluding
amortization of debt discount) |
|
|
0.01 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
Depreciation, amortization and
accretion expense |
|
|
0.05 |
|
|
|
0.03 |
|
|
|
0.09 |
|
|
|
0.05 |
|
Amortization of debt
discount |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Loss on debt
extinguishment |
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
Financing transactions
expense |
|
|
0.01 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
Litigation costs |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.02 |
|
Inventory and reserve
adjustment |
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
0.01 |
|
Severance costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
Acquisitions expenses |
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
Insurance acceptance
readiness |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Accrued interest on Series B
Convertible Preferred Stock |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
Foreign exchange (gain)
loss |
|
|
0.01 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
Dividends |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.07 |
|
|
|
0.05 |
|
Stock-based compensation
expense |
|
|
0.09 |
|
|
|
0.13 |
|
|
|
0.17 |
|
|
|
0.28 |
|
Net income attributable to
noncontrolling interests |
|
|
0.03 |
|
|
|
- |
|
|
|
0.04 |
|
|
|
- |
|
|
Adjusted EPS |
|
$ |
0.05 |
|
|
$ |
(0.22 |
) |
|
$ |
0.12 |
|
|
$ |
(0.47 |
) |
|
LifeMD (NASDAQ:LFMD)
過去 株価チャート
から 4 2024 まで 5 2024
LifeMD (NASDAQ:LFMD)
過去 株価チャート
から 5 2023 まで 5 2024