- Revenue grew 18% year-over-year to a record $35.9 million; telehealth net revenues increased 11% versus the first quarter of 2023.
- Achieved positive free cash flow, ahead of guidance.
- Adjusted EBITDA increased to $1.7 million in the second quarter 2023 from an adjusted EBITDA loss of $6.9 million in the year-ago period.
- Launched a comprehensive Weight Management program offering and onboarded over 5,000 new patient subscribers to date; the Weight Management program is expected to be substantially accretive beginning in 2024.
- Raised 2023 revenue guidance to $146 million to $152 million, reflecting early success with the Weight Management program.
Conference call begins at 4:30 p.m. Eastern time today
NEW YORK, Aug. 09, 2023 (GLOBE NEWSWIRE) -- 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, CFO
marc@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 | ) | |||||||
