LifeMD, Inc. (NASDAQ: LFMD), a leading direct-to-patient telehealth
company, reported results for the second quarter ended June 30,
2022. All figure comparisons are to the same year-ago quarter
unless otherwise noted. Management will host a conference call
today, August 11, 2022, at 4:30 p.m. Eastern time to discuss the
results.
Q2 2022 Financial Highlights
- Record revenue of $30.5 million, up
37%
- Record Gross Margins of 85%, up from
82% in the same year-ago period. Gross profit totaled $25.8
million
- 93% of revenue generated by
subscriptions, 71% of active subscribers on multi-month
subscription terms up from 61% in the same year-ago period
- $11.7 million of cash as of June 30,
2022 and no debt
- Adjusted EBITDA loss reduced to
below $1 million in the month of June with continued improvements
expected
- Adjusted EPS $(0.22), up 52% and a
12% sequential improvement versus the prior quarter (see definition
of this non-GAAP financial measure and reconciliation to GAAP,
below)
Q2 and Recent Operational
Highlights
- Continued leverage
of Selling and Marketing expenses, with second quarter expenses as
a percentage of revenue reducing to 72%, a 300-basis point
improvement versus the prior quarter and a 2,800-basis point
improvement versus the same year-ago period.
- Telehealth active
subscribers increased 53% to approximately 168,000.
- Increased blended
Over-the-Counter (OTC) and Prescription (Rx) 1-year Lifetime Value
to Customer Acquisition Costs (LTV-CAC) by 8% year-over-year.
- Made significant
progress in the WorkSimpli divestiture process with strong buyer
interest. The Company expects to close a transaction by fourth
quarter 2022.
- Continued
diversification of our core telehealth business with the launch of
topical pain management, sleep, OTC skincare and new Virtual
Primary Care (VPC) offerings. VPC experienced a 1,500% increase in
patient subscribers versus the prior quarter. In the second quarter
2022, non-erectile dysfunction offerings combined for over 38% of
new patient acquisitions, up from 22% in the year-ago period.
Key Performance Metrics |
|
|
|
|
|
|
|
|
|
|
($ in 000s) |
|
Three Months Ended June 30 |
|
|
Y-o-Y |
|
Key Performance Metrics |
|
2022 |
|
|
|
2021 |
|
|
% Growth |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
Telehealth |
$ |
22,268 |
|
|
$ |
15,799 |
|
|
41 |
% |
WorkSimpli |
$ |
8,191 |
|
|
$ |
6,514 |
|
|
26 |
% |
Total Revenue |
$ |
30,459 |
|
|
$ |
22,313 |
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
|
|
Subscription Revenue as % of Total |
|
93 |
% |
|
|
93 |
% |
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Telehealth Volume |
|
|
|
|
|
|
|
|
|
|
Total Telehealth Orders |
|
255,176 |
|
|
|
195,755 |
|
|
30 |
% |
Total Active Subscribers |
|
168,024 |
|
|
|
109,737 |
|
|
53 |
% |
|
|
|
|
|
|
|
|
|
|
|
WorkSimpli |
|
|
|
|
|
|
|
|
|
|
Active Subscribers |
|
127,304 |
|
|
|
99,576 |
|
|
28 |
% |
|
|
|
|
|
|
|
|
|
|
|
Management Commentary“During the
second quarter 2022, LifeMD made significant progress against
several of our most important strategic initiatives. These include
driving our Adjusted EBITDA loss under $1 million in the month of
June, beginning to scale Virtual Primary Care, generating a
substantial increase in new patient volumes from recently launched
telehealth indications and driving an 8% year-over-year improvement
in our first year LTV-CAC ratio. In addition, during the quarter we
made substantial progress on the divestiture of our non-core
WorkSimpli business and remain confident that we can execute a
transaction by year end. We highlighted many of these achievements
and others in our second quarter Supplemental Investor Highlights
Presentation made available after market close on the LifeMD
Investor Relations site,” said Justin Schreiber, Chairman & CEO
of LifeMD. “While we expect these achievements to position us for
long-term profitable growth and shareholder value creation, we
anticipate moderated sequential growth over the next two quarters
in our core telehealth business as we transition more of our
revenue to longer-term subscriptions with stronger unit economics
and continue to scale our newly launched virtual primary care
business. Importantly, executing upon these strategic initiatives
is helping LifeMD transition from a rapidly scaling
direct-to-patient telehealth products provider to a rapidly
scaling, profitable and differentiated telehealth services
company.”
LifeMD CFO Marc Benathen, commented: “As noted in
our second quarter Supplemental Investor Highlights Presentation
available on our Investor Relations site, most of our Q2 loss was
concentrated within the month of April. During the quarter, we made
significant progress toward maximizing our unit economics through
improved returns on our marketing investment and successfully
reduced our Adjusted EBITDA loss to less than $1 million in June.
During the quarter, we also made considerable progress in the
process to divest our non-core subsidiary, WorkSimpli, and remain
confident that we will be able close a transaction before the end
of this year. Given our significant focus on continuing to
diversify our telehealth revenue by investing in and growing newly
launched indications, scaling Virtual Primary Care and driving
longer-term subscriptions with more spaced-out re-billings, we
expect sequential revenue growth for the next two quarters in our
telehealth business to be more moderated. We expect to emerge from
this period well-positioned to drive more accelerated top and
bottom-line growth as a leading, differentiated direct-to-patient
telehealth company. As such, while we reiterate our previous
Adjusted EBITDA profitability guidance, we are revising our
consolidated Revenue guidance to $122 to $128 million for
2022.”
Q2 2022 Financial Summary
- Revenue for the quarter ended June
30, 2022 increased 37% to $30.5 million from $22.3 million in 2021.
The increase in revenues was attributable to a 41% increase in
telehealth revenue and a 26% increase in WorkSimpli revenue versus
the year-ago period. Following the execution of several key growth
initiatives in the preceding quarters, WorkSimpli revenue increased
27% sequentially to a record $8.2 million.
- Gross profit increased by 42% to
$25.8 million, compared to $18.2 million in the prior year. Gross
margins reached a record 85% for the second quarter ended June 30,
2022.
- Net loss
attributable to common stockholders for 2022 was $13.8 million or
$(0.45) per share, as compared to a net loss attributable to common
stockholders of $16.8 million or $(0.64) per share in the prior
year.
- Adjusted EBITDA, a
non-GAAP financial measure, totaled a loss of $6.9 million, an
improvement of 43% versus the same year-ago period. (see definition
of this non-GAAP financial measure and reconciliation to GAAP,
below).
- Adjusted EPS, a
non-GAAP financial measure, totaled a loss of $(0.22) per share,
compared to an adjusted EPS loss of $(0.46) in the same year-ago
period. Adjusted EPS improved 12% sequentially versus the prior
quarter (see definition of this non-GAAP financial measure and
reconciliation to GAAP, below).
- Cash totaled $11.7
million as of June 30, 2022.
Financial GuidanceFor the Third
Quarter 2022, the Company expects:
- Consolidated Revenue to total between $32 million and $33
million
- Consolidated Adjusted EBITDA between $(1.5) million and $(2.5)
million
For the Full Year 2022, the Company expects:
- Consolidated Revenue to total between $122 million and $128
million
- Consolidated Adjusted EBITDA between $(14) million and $(20)
million
The Company remains on track to achieve
consolidated Adjusted EBITDA profitability by the fourth quarter of
2022.
Conference CallLifeMD’s management
will host a conference call today, August 11, 2022 at 4:30 pm
Eastern Time to discuss the company’s financial results and
outlook, followed by a question-and-answer period. Details for the
call are as follows:
Toll-free
dial-in number: |
1-800-263-0877 |
International dial-in number: |
1-720-543-0197 |
Conference ID: |
9480029 |
Webcast: |
https://viavid.webcasts.com/starthere.jsp?ei=1560537&tp_key=0592b1380e |
The conference call will be webcast live and
available for replay via a link provided in the Investors section
of the company’s website at lifemd.com. Please call the conference
telephone number five minutes prior to the start time. An operator
will register your name and organization.
Listeners are encouraged to review the Company's
periodic reports filed with the U.S. Securities and Exchange
Commission, including the discussion of risk factors, historical
results of operations and financial condition as provided in these
reports.
About LifeMDLifeMD is a 50-state
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
dermatological conditions. By leveraging its proprietary technology
platform, 50-state affiliated medical group, and nationwide
mail-order pharmacy network, LifeMD is increasing access to
top-notch healthcare that is affordable to anyone. To learn more,
go to LifeMD.com.
Cautionary Note Regarding Forward Looking
StatementsThis 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
Tables to Follow
LIFEMD, INC. |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
(Unaudited) |
|
|
|
|
June 30, 2022 |
|
|
|
December 31, 2021 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash |
$ |
11,717,302 |
|
|
$ |
41,328,039 |
|
|
Accounts receivable, net |
|
2,513,627 |
|
|
|
980,055 |
|
|
Product deposit |
|
440,841 |
|
|
|
203,556 |
|
|
Inventory, net |
|
2,965,242 |
|
|
|
1,616,600 |
|
|
Other current assets |
|
873,205 |
|
|
|
793,190 |
|
|
Total Current Assets |
|
18,510,217 |
|
|
|
44,921,440 |
|
|
|
|
|
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
|
|
|
|
Equipment, net |
|
555,777 |
|
|
|
233,805 |
|
|
Right of use asset, net |
|
1,462,086 |
|
|
|
1,752,448 |
|
|
Capitalized software, net |
|
6,542,691 |
|
|
|
2,995,789 |
|
|
Goodwill and intangible assets, net |
|
10,898,710 |
|
|
|
19,761 |
|
|
Total Non-current Assets |
|
19,459,264 |
|
|
|
5,001,803 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
37,969,481 |
|
|
$ |
49,923,243 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
$ |
11,938,937 |
|
|
$ |
9,059,214 |
|
|
Accrued expenses |
|
11,233,309 |
|
|
|
11,595,605 |
|
|
Notes payable, net |
|
- |
|
|
|
63,400 |
|
|
Current operating lease liabilities |
|
704,283 |
|
|
|
607,490 |
|
|
Deferred revenue |
|
1,992,502 |
|
|
|
1,499,880 |
|
|
Total Current Liabilities |
|
25,869,031 |
|
|
|
22,825,589 |
|
|
|
|
|
|
|
|
|
|
|
Long-term Liabilities |
|
|
|
|
|
|
|
|
Noncurrent operating lease liabilities |
|
871,300 |
|
|
|
1,178,544 |
|
|
Contingent consideration |
|
2,934,750 |
|
|
|
100,000 |
|
|
Purchase price payable |
|
1,480,008 |
|
|
|
- |
|
|
Total Liabilities |
|
31,155,089 |
|
|
|
24,104,133 |
|
|
|
|
|
|
|
|
|
|
|
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, $1,239 and $1,175 per share as of
June 30, 2022 and December 31, 2021, respectively |
|
4,336,452 |
|
|
|
4,110,822 |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares
authorized, 1,400,000 shares issued and outstanding, liquidation
value approximately $26.72 and $25.62 per share as of June 30, 2022
and December 31, 2021, respectively |
|
140 |
|
|
|
140 |
|
|
Common Stock, $0.01 par value; 100,000,000 shares authorized,
30,989,869 and 30,704,434 shares issued, 30,886,829 and 30,601,394
outstanding as of June 30, 2022 and December 31, 2021,
respectively |
|
309,899 |
|
|
|
307,045 |
|
|
Additional paid-in capital |
|
173,157,467 |
|
|
|
164,517,634 |
|
|
Accumulated deficit |
|
(169,792,847 |
) |
|
|
(141,921,085 |
) |
|
Treasury stock, 103,040 and 103,040 shares, at cost |
|
(163,701 |
) |
|
|
(163,701 |
) |
|
Total LifeMD, Inc. Stockholders’ Equity |
|
3,510,958 |
|
|
|
22,740,033 |
|
|
Non-controlling interest |
|
(1,033,018 |
) |
|
|
(1,031,745 |
) |
|
Total Stockholders’ Equity |
|
2,477,940 |
|
|
|
21,708,288 |
|
|
Total Liabilities, Mezzanine Equity and Stockholders’ Equity |
$ |
37,969,481 |
|
|
$ |
49,923,243 |
|
|
|
|
|
|
|
|
|
|
|
LIFEMD, INC. |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telehealth revenue, net |
$ |
22,267,963 |
|
|
$ |
15,799,610 |
|
|
$ |
44,866,024 |
|
|
$ |
29,082,925 |
|
|
WorkSimpli revenue, net |
|
8,190,535 |
|
|
|
6,514,001 |
|
|
|
14,635,311 |
|
|
|
11,428,798 |
|
|
Total revenues, net |
|
30,458,498 |
|
|
|
22,313,611 |
|
|
|
59,501,335 |
|
|
|
40,511,723 |
|
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of telehealth revenue |
|
4,453,126 |
|
|
|
4,021,005 |
|
|
|
9,539,194 |
|
|
|
7,144,030 |
|
|
Cost of WorkSimpli revenue |
|
182,185 |
|
|
|
99,215 |
|
|
|
344,292 |
|
|
|
187,247 |
|
|
Total cost of revenues |
|
4,635,311 |
|
|
|
4,120,220 |
|
|
|
9,883,486 |
|
|
|
7,331,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
25,823,187 |
|
|
|
18,193,391 |
|
|
|
49,617,849 |
|
|
|
33,180,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
21,817,966 |
|
|
|
22,392,179 |
|
|
|
43,727,791 |
|
|
|
41,078,880 |
|
|
General and administrative expenses |
|
13,250,669 |
|
|
|
10,523,071 |
|
|
|
25,553,147 |
|
|
|
17,498,642 |
|
|
Other operating expenses |
|
1,951,244 |
|
|
|
809,066 |
|
|
|
3,278,978 |
|
|
|
1,445,853 |
|
|
Customer service expenses |
|
1,006,363 |
|
|
|
473,235 |
|
|
|
1,939,670 |
|
|
|
768,512 |
|
|
Development costs |
|
701,070 |
|
|
|
122,603 |
|
|
|
1,129,403 |
|
|
|
433,659 |
|
|
Goodwill impairment charge |
|
2,735,000 |
|
|
|
- |
|
|
|
2,735,000 |
|
|
|
- |
|
|
Total expenses |
|
41,462,312 |
|
|
|
34,320,154 |
|
|
|
78,363,989 |
|
|
|
61,225,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(15,639,125 |
) |
|
|
(16,126,763 |
) |
|
|
(28,746,140 |
) |
|
|
(28,045,100 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(132,236 |
) |
|
|
(901,910 |
) |
|
|
(300,170 |
) |
|
|
(1,041,373 |
) |
|
Change in fair value of contingent consideration |
|
2,735,000 |
|
|
|
- |
|
|
|
2,735,000 |
|
|
|
- |
|
|
Gain on debt forgiveness |
|
63,400 |
|
|
|
- |
|
|
|
63,400 |
|
|
|
184,914 |
|
|
Net loss |
|
(12,972,961 |
) |
|
|
(17,028,673 |
) |
|
|
(26,247,910 |
) |
|
|
(28,901,559 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests |
|
46,001 |
|
|
|
(197,973 |
) |
|
|
70,727 |
|
|
|
(468,476 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to LifeMD, Inc. |
|
(13,018,962 |
) |
|
|
(16,830,700 |
) |
|
|
(26,318,637 |
) |
|
|
(28,433,083 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
(776,562 |
) |
|
|
- |
|
|
|
(1,553,125 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to LifeMD, Inc. common
stockholders |
$ |
(13,795,524 |
) |
|
$ |
(16,830,700 |
) |
|
$ |
(27,871,762 |
) |
|
$ |
(28,433,083 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share attributable to LifeMD, Inc. common
stockholders |
$ |
(0.45 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.90 |
) |
|
$ |
(1.12 |
) |
|
Diluted loss per share attributable to LifeMD, Inc. common
stockholders |
$ |
(0.45 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.90 |
) |
|
$ |
(1.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
30,907,505 |
|
|
|
26,289,678 |
|
|
|
30,880,417 |
|
|
|
25,381,530 |
|
|
Diluted |
|
30,907,505 |
|
|
|
26,289,678 |
|
|
|
30,880,417 |
|
|
|
25,381,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEMD, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(12,972,961 |
) |
|
$ |
(17,028,673 |
) |
|
$ |
(26,247,910 |
) |
|
$ |
(28,901,559 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of debt discount |
|
- |
|
|
|
522,559 |
|
|
|
- |
|
|
|
522,559 |
|
Amortization of capitalized software |
|
592,214 |
|
|
|
39,413 |
|
|
|
976,026 |
|
|
|
63,864 |
|
Amortization of intangibles |
|
226,893 |
|
|
|
255,937 |
|
|
|
341,287 |
|
|
|
339,840 |
|
Accretion of consideration payable |
|
135,368 |
|
|
|
|
|
|
|
135,368 |
|
|
|
|
|
Depreciation of fixed assets |
|
40,770 |
|
|
|
- |
|
|
|
73,247 |
|
|
|
- |
|
Gain on forgiveness of debt |
|
(63,400 |
) |
|
|
- |
|
|
|
(63,400 |
) |
|
|
(184,914 |
) |
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 |
|
171,838 |
|
|
|
24,589 |
|
|
|
290,362 |
|
|
|
49,178 |
|
Stock compensation expense |
|
4,041,006 |
|
|
|
2,547,300 |
|
|
|
8,513,787 |
|
|
|
4,873,075 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Changes in Assets and Liabilities |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
(717,125 |
) |
|
|
(381,152 |
) |
|
|
(1,533,572 |
) |
|
|
(1,084,174 |
) |
Product deposit |
|
174,452 |
|
|
|
(91,521 |
) |
|
|
(237,285 |
) |
|
|
(574,999 |
) |
Inventory |
|
(1,725,208 |
) |
|
|
60,264 |
|
|
|
(1,341,474 |
) |
|
|
(349,859 |
) |
Other current assets |
|
(30,216 |
) |
|
|
(342,432 |
) |
|
|
(80,015 |
) |
|
|
(292,357 |
) |
Change in operating lease liability |
|
(164,950 |
) |
|
|
(22,731 |
) |
|
|
(210,451 |
) |
|
|
(44,653 |
) |
Deferred revenue |
|
203,947 |
|
|
|
42,629 |
|
|
|
492,622 |
|
|
|
465,058 |
|
Accounts payable |
|
376,345 |
|
|
|
1,131,477 |
|
|
|
2,853,811 |
|
|
|
1,256,110 |
|
Accrued expenses |
|
(387,938 |
) |
|
|
2,588,811 |
|
|
|
(2,152,511 |
) |
|
|
4,022,422 |
|
Net cash used in operating activities |
|
(10,098,965 |
) |
|
|
(10,653,530 |
) |
|
|
(18,190,108 |
) |
|
|
(19,840,409 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for capitalized software costs |
|
(2,424,785 |
) |
|
|
(903,487 |
) |
|
|
(4,522,928 |
) |
|
|
(952,347 |
) |
Purchase of equipment |
|
(90,180 |
) |
|
|
(18,116 |
) |
|
|
(357,331 |
) |
|
|
(18,116 |
) |
Purchase of intangible assets |
|
- |
|
|
|
- |
|
|
|
(4,000,500 |
) |
|
|
- |
|
Acquisition of business, net of cash acquired |
|
- |
|
|
|
- |
|
|
|
(1,012,395 |
) |
|
|
- |
|
Net cash used in investing activities |
|
(2,514,965 |
) |
|
|
(921,603 |
) |
|
|
(9,893,154 |
) |
|
|
(970,463 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash proceeds from private placement offering, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
13,495,270 |
|
Proceeds from issuance of debt instruments |
|
- |
|
|
|
15,000,000 |
|
|
|
- |
|
|
|
15,000,000 |
|
Cash proceeds from exercise of options |
|
90,400 |
|
|
|
742,750 |
|
|
|
90,400 |
|
|
|
766,750 |
|
Cash proceeds from exercise of warrants |
|
- |
|
|
|
311,999 |
|
|
|
38,500 |
|
|
|
311,999 |
|
Preferred stock dividends |
|
(776,562 |
) |
|
|
- |
|
|
|
(1,553,125 |
) |
|
|
- |
|
Proceeds from notes payable |
|
- |
|
|
|
363,965 |
|
|
|
- |
|
|
|
963,965 |
|
Repayment of notes payable |
|
- |
|
|
|
(600,000 |
) |
|
|
- |
|
|
|
(1,119,950 |
) |
Contingent consideration payment for ResumeBuild |
|
(31,250 |
) |
|
|
|
|
|
|
(31,250 |
) |
|
|
|
|
Purchase of membership interest of WorkSimpli |
|
- |
|
|
|
(200,000 |
) |
|
|
- |
|
|
|
(300,000 |
) |
Distributions to non-controlling interest |
|
(36,000 |
) |
|
|
(36,000 |
) |
|
|
(72,000 |
) |
|
|
(72,000 |
) |
Net cash (used in) provided by financing activities |
|
(753,412 |
) |
|
|
15,582,714 |
|
|
|
(1,527,475 |
) |
|
|
29,046,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash |
|
(13,367,342 |
) |
|
|
(4,007,581 |
) |
|
|
(29,610,737 |
) |
|
|
8,235,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of period |
|
25,084,644 |
|
|
|
13,406,656 |
|
|
|
41,328,039 |
|
|
|
9,179,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of period |
$ |
11,717,302 |
|
|
$ |
17,414,237 |
|
|
$ |
11,717,302 |
|
|
$ |
17,414,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
$ |
- |
|
|
$ |
125,912 |
|
|
$ |
- |
|
|
$ |
143,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cashless exercise of warrants |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Cashless exercise of options |
$ |
- |
|
|
$ |
- |
|
|
$ |
255 |
|
|
$ |
- |
|
Consideration payable for Cleared acquisition |
$ |
- |
|
|
$ |
- |
|
|
$ |
8,079,367 |
|
|
$ |
- |
|
Consideration payable for ResumeBuild acquisition |
$ |
- |
|
|
$ |
- |
|
|
$ |
500,000 |
|
|
$ |
- |
|
Warrants issued for debt instruments |
$ |
- |
|
|
$ |
6,270,710 |
|
|
$ |
- |
|
|
$ |
6,270,710 |
|
Principal of Paycheck Protection Program loans forgiven |
$ |
63,400 |
|
|
$ |
- |
|
|
$ |
63,400 |
|
|
$ |
184,914 |
|
Additional purchase of membership interest in WorkSimpli issued in
performance options |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
144,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, inventory valuation, litigation costs, gain on
debt forgiveness, preferred stock dividends, 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, inventory valuation,
litigation costs, preferred stock dividends, 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, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss attributable to common shareholders |
$ |
(13,795,524 |
) |
|
$ |
(16,830,700 |
) |
|
$ |
(27,871,762 |
) |
|
$ |
(28,433,083 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (excluding debt discount and acceleration of
debt) |
|
18,798 |
|
|
|
798,472 |
|
|
|
74,540 |
|
|
|
815,743 |
|
Depreciation, amortization and accretion expense |
|
995,245 |
|
|
|
- |
|
|
|
1,525,928 |
|
|
|
403,704 |
|
Amortization of debt discount |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
522,559 |
|
Gain on debt forgiveness |
|
(63,400 |
) |
|
|
- |
|
|
|
(63,400 |
) |
|
|
(184,914 |
) |
Financing transactions expense |
|
- |
|
|
|
946,411 |
|
|
|
152,015 |
|
|
|
1,072,390 |
|
Litigation costs |
|
655,494 |
|
|
|
215,125 |
|
|
|
704,359 |
|
|
|
215,125 |
|
Inventory valuation adjustment |
|
13,708 |
|
|
|
- |
|
|
|
230,661 |
|
|
|
- |
|
Severance costs |
|
77,241 |
|
|
|
- |
|
|
|
179,090 |
|
|
|
- |
|
Acquisitions expenses |
|
240,153 |
|
|
|
- |
|
|
|
265,153 |
|
|
|
- |
|
Accrued interest on Series B Convertible Preferred Stock |
|
113,438 |
|
|
|
103,438 |
|
|
|
225,630 |
|
|
|
225,630 |
|
Preferred dividends |
|
776,562 |
|
|
|
- |
|
|
|
1,553,125 |
|
|
|
- |
|
Stock-based compensation expense |
|
4,041,006 |
|
|
|
2,547,300 |
|
|
|
8,513,787 |
|
|
|
4,873,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
(6,927,279 |
) |
|
$ |
(12,219,954 |
) |
|
$ |
(14,510,874 |
) |
|
$ |
(20,489,771 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Diluted Loss per Share Attributable
to Common Shareholders to Adjusted EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Diluted loss per share attributable to LifeMD, Inc. common
shareholders |
|
$ |
(0.45 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.91 |
) |
|
$ |
(1.12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense (excluding debt discount and acceleration of
debt) |
|
|
- |
|
|
|
0.03 |
|
|
|
- |
|
|
|
0.03 |
|
Depreciation, amortization and accretion expense |
|
|
0.03 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
0.02 |
|
Amortization of debt discount |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
Gain on debt forgiveness |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.01 |
) |
Financing transactions expense |
|
|
- |
|
|
|
0.04 |
|
|
|
- |
|
|
|
0.04 |
|
Litigation costs |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.01 |
|
Inventory valuation adjustment |
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
Severance costs |
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
Acquisitions expenses |
|
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
Accrued interest on Series B Convertible Preferred Stock |
|
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
0.01 |
|
Preferred dividends |
|
|
0.03 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
- |
|
Stock-based compensation expense |
|
|
0.13 |
|
|
|
0.10 |
|
|
|
0.28 |
|
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS |
|
$ |
(0.22 |
) |
|
$ |
(0.46 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.81 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LifeMD (NASDAQ:LFMD)
Historical Stock Chart
From Aug 2024 to Sep 2024
LifeMD (NASDAQ:LFMD)
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From Sep 2023 to Sep 2024