2023 Q1 Form 10-K Financial Statement

#000149315223008560 Filed on March 22, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $33.13M $28.12M $119.0M
YoY Change 14.06% 2.56% 28.16%
Cost Of Revenue $4.215M $4.068M $18.67M
YoY Change -19.69% -26.94% 3.74%
Gross Profit $28.91M $24.05M $100.4M
YoY Change 21.5% 10.08% 34.03%
Gross Profit Margin 87.28% 85.53% 84.32%
Selling, General & Admin $27.32M $27.98M $125.3M
YoY Change -22.71% -17.98% 0.3%
% of Gross Profit 94.5% 116.32% 124.87%
Research & Development $1.184M $1.019M $2.970M
YoY Change 176.33% 196.77% 281.4%
% of Gross Profit 4.09% 4.24% 2.96%
Depreciation & Amortization $47.65K $1.240M $161.9K
YoY Change -91.02% 256.69% -81.37%
% of Gross Profit 0.16% 5.15% 0.16%
Operating Expenses $31.76M $25.81M $143.8M
YoY Change -13.92% -27.33% 11.33%
Operating Profit -$2.853M -$1.756M -$43.45M
YoY Change -78.23% -87.15% -19.99%
Interest Expense $264.5K -$843.5K $1.276M
YoY Change -257.49% 449.29% -142.25%
% of Operating Profit
Other Income/Expense, Net -$2.487M
YoY Change
Pretax Income -$3.442M -$11.21M -$44.66M
YoY Change -74.07% -37.69% -27.16%
Income Tax $360.7K $360.7K
% Of Pretax Income
Net Earnings -$4.008M -$12.71M -$45.54M
YoY Change -69.8% -29.81% -25.23%
Net Earnings / Revenue -12.1% -45.21% -38.25%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.15 -$0.40 -$1.57
COMMON SHARES
Basic Shares Outstanding 31.89M shares 31.45M shares 30.98M shares
Diluted Shares Outstanding 31.68M shares 30.98M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $11.52M $3.959M $3.959M
YoY Change -54.06% -90.42% -90.42%
Cash & Equivalents $11.52M $3.959M
Short-Term Investments
Other Short-Term Assets $1.074M $687.0K $814.3K
YoY Change -26.35% -13.38% -18.31%
Inventory $3.383M $3.703M $3.703M
Prepaid Expenses
Receivables $2.937M $2.835M $2.835M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $19.16M $11.31M $11.31M
YoY Change -35.21% -74.82% -74.82%
LONG-TERM ASSETS
Property, Plant & Equipment $462.4K $476.4K $1.682M
YoY Change -78.39% 103.78% -15.3%
Goodwill $0.00 $0.00
YoY Change -100.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $14.71M $14.35M $14.35M
YoY Change -29.0% 186.99% 186.99%
TOTAL ASSETS
Total Short-Term Assets $19.16M $11.31M $11.31M
Total Long-Term Assets $14.71M $14.35M $14.35M
Total Assets $33.87M $25.67M $25.67M
YoY Change -32.65% -48.59% -48.59%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.903M $10.11M $10.11M
YoY Change -40.88% 11.56% 11.56%
Accrued Expenses $11.58M $12.17M $10.25M
YoY Change -4.21% 4.92% 10.89%
Deferred Revenue $5.500M
YoY Change 266.67%
Short-Term Debt $1.822M $2.797M $2.797M
YoY Change 2774.59% 4312.07% 4312.07%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $27.02M $31.37M $31.37M
YoY Change 5.49% 37.45% 37.45%
LONG-TERM LIABILITIES
Long-Term Debt $13.42M $0.00 $0.00
YoY Change
Other Long-Term Liabilities $789.1K $1.597M $1.597M
YoY Change -90.52% 24.92% 24.92%
Total Long-Term Liabilities $14.21M $1.597M $1.597M
YoY Change 70.76% 24.92% 24.92%
TOTAL LIABILITIES
Total Short-Term Liabilities $27.02M $31.37M $31.37M
Total Long-Term Liabilities $14.21M $1.597M $1.597M
Total Liabilities $41.23M $32.97M $32.50M
YoY Change 25.35% 36.79% 40.84%
SHAREHOLDERS EQUITY
Retained Earnings -$195.3M -$190.6M
YoY Change 34.3%
Common Stock $320.4K $315.5K
YoY Change 2.76%
Preferred Stock
YoY Change
Treasury Stock (at cost) $163.7K $163.7K
YoY Change 0.0%
Treasury Stock Shares
Shareholders Equity -$12.01M -$11.40M -$6.830M
YoY Change
Total Liabilities & Shareholders Equity $33.87M $25.67M $25.67M
YoY Change -32.65% -48.59% -48.59%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$4.008M -$12.71M -$45.54M
YoY Change -69.8% -29.81% -25.23%
Depreciation, Depletion And Amortization $47.65K $1.240M $161.9K
YoY Change -91.02% 256.69% -81.37%
Cash From Operating Activities -$2.614M -$1.969M -$22.94M
YoY Change -67.69% -66.2% -30.68%
INVESTING ACTIVITIES
Capital Expenditures $33.66K $1.771M $366.6K
YoY Change -101.42% -212.2% -110.85%
Acquisitions $1.012M
YoY Change
Other Investing Activities $0.00 $0.00 -$5.013M
YoY Change -100.0% 22450.16%
Cash From Investing Activities -$1.812M -$1.771M -$13.91M
YoY Change -75.45% 12.2% 308.72%
FINANCING ACTIVITIES
Cash Dividend Paid $776.6K $3.106M
YoY Change 0.0% 256.44%
Common Stock Issuance & Retirement, Net $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $11.99M 1.862M -$528.2K
YoY Change -1649.16% -95.26% -100.77%
NET CHANGE
Cash From Operating Activities -$2.614M -1.969M -$22.94M
Cash From Investing Activities -$1.812M -1.771M -$13.91M
Cash From Financing Activities $11.99M 1.862M -$528.2K
Net Change In Cash $7.566M -1.878M -$37.37M
YoY Change -146.58% -105.89% -216.24%
FREE CASH FLOW
Cash From Operating Activities -$2.614M -$1.969M -$22.94M
Capital Expenditures $33.66K $1.771M $366.6K
Free Cash Flow -$2.648M -$3.740M -$23.30M
YoY Change -53.76% -11.95% -21.56%

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<p id="xdx_800_eus-gaap--NatureOfOperations_zhFicsTs9zAj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_822_z44sgBc7l3I4">NATURE OF THE ORGANIZATION AND BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Corporate History</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">LifeMD, Inc. was formed in the State of Delaware on May 24, 1994, under its prior name, Immudyne, Inc. The Company changed its name to Conversion Labs, Inc. on June 22, 2018 and then subsequently, on February 22, 2021, it changed its name to LifeMD, Inc. Effective February 22, 2021, the trading symbol for the Company’s common stock, par value $<span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20210222_ziKzPso0NHok" title="Common stock per share">0.01</span> per share on The Nasdaq Stock Market LLC changed from “CVLB” to “LFMD”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On April 1, 2016, the original operating agreement of Immudyne PR LLC (“Immudyne PR”), a joint venture to market the Company’s immune support, skincare, and hair loss was amended and restated and the Company increased its ownership and voting interest in Immudyne PR to <span id="xdx_905_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20160401__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ImmudynePrLlcMember_zoI2mt1LibHe" title="Equity method investment, ownership percentage">78.2</span>%. Concurrent with the name change of the parent company to Conversion Labs, Inc., Immudyne PR was renamed to Conversion Labs PR LLC. On April 25, 2019, the operating agreement of Conversion Labs PR was amended and restated in its entirety to increase the Company’s ownership and voting interest in Conversion Labs PR to <span id="xdx_906_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20190425__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ConversionLabsPrMember_z3d7srej14If" title="Equity method investment, ownership percentage">100</span>%. On February 22, 2021, concurrent with the name change of the parent company to LifeMD, Inc., Conversion Labs PR LLC was renamed to LifeMD PR LLC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In June 2018, the Company closed the strategic acquisition of <span id="xdx_907_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20180630__us-gaap--BusinessAcquisitionAxis__custom--LegalSimpliSoftwareLlcMember_zpOWybo5f3s7" title="Voting interests acquired">51</span>% of LegalSimpli Software, LLC, which operates a software as a service application for converting, editing, signing, and sharing PDF documents called PDFSimpli. In addition to LegalSimpli Software, LLC’s growth business model, this acquisition added deep search engine optimization and search engine marketing expertise to the Company. On July 15, 2021, LegalSimpli Software, LLC, changed its name to WorkSimpli Software LLC, (“WorkSimpli”). Effective January 22, 2021, the Company consummated a transaction to restructure the ownership of WorkSimpli (the “WSS Restructuring”) (See Note 8) and concurrently increased its ownership interest in WorkSimpli to <span id="xdx_908_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20210122__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--LegalSimpliSoftwareLlcMember_ze81zRjN0bd9">85.6</span>%. Effective September 30, 2022, two option agreements were exercised which further restructured the ownership of WorkSimpli. As a result, the Company’s ownership interest in WorkSimpli decreased to <span id="xdx_902_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20220930__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--LegalSimpliSoftwareLlcMember_zqHmVJl9beIi">73.64</span>%. See Note 8 for additional information.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 18, 2022, the Company acquired Cleared Technologies, PBC, a Delaware public benefit corporation (“Cleared”), a nationwide allergy telehealth platform that provides personalized treatments for allergy, asthma, and immunology (See Note 3—Acquisitions to our consolidated financial statements included in this report).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Nature of Business</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The Company is a direct-to-patient telehealth company providing patients a high-quality, cost-effective, and convenient way of accessing comprehensive, virtual healthcare. The Company believes the traditional model of visiting a doctor’s office, traveling to a local pharmacy, and returning for follow up care or prescription refills is complex, inefficient, and costly, and discourages many individuals from seeking much needed medical care. The Company is positioned to elevate the healthcare experience through telehealth with our proprietary technology platform, affiliated provider network, broad treatment capabilities, and unique ability to nurture patient relationships. Direct-to-patient telehealth technology companies, like the Company, connect consumers to affiliated, licensed, healthcare professionals for care across numerous indications, including urgent and primary care, men’s and women’s health, and dermatology, chronic care management and more.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s telehealth platform helps patients access their licensed providers for diagnoses, virtual care, and prescription medications, often delivered on a recurring basis. In addition to its telehealth prescription offerings, the Company sells over-the-counter (“OTC”) products. All products are available on a subscription or membership basis, where a patient can subscribe to receive regular shipments of prescribed medications or products. This creates convenience and often discounted pricing opportunities for patients and recurring revenue streams for the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">With its first brand, ShapiroMD, the Company has built a full line of proprietary OTC products for male and female hair loss—including Food and Drug Administration (“FDA”) approved OTC minoxidil and an FDA-cleared medical device—and now a personalized telehealth platform offering that gives consumers access to virtual medical treatment from their providers and, when appropriate, a full line of oral and topical prescription medications for hair loss. The Company’s men’s brand, RexMD, currently offers access to provider-based treatment for erectile dysfunction, as well as treatment for other common men’s health issues, including premature ejaculation and hair loss. In the first quarter of 2021, the Company launched NavaMD, a tele-dermatology and skincare brand for women. The Company has built a platform that allows it to efficiently launch telehealth and wellness product lines wherever it determines there is a market need.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Business and Subsidiary History</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In early 2019, the Company launched a service-based business under the name Conversion Labs Media LLC (“CVLB Media”), a Puerto Rico limited liability company. However, this business initiative was terminated in early 2019. In May 2019, Conversion Labs Rx, LLC (“CVLB Rx”), a Puerto Rico limited liability company, signed a strategic partnership agreement with Specialty Medical Drugstore, Inc. (doing business as “GoGoMeds”). However, since its inception, CVLB Rx did not conduct any business and CVLB Rx was dissolved on August 7, 2020. Additionally, Conversion Labs Asia Limited (“Conversion Labs Asia”), a Hong Kong company, had no activity during the years ended December 31, 2022 and 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 18, 2022, the Company acquired Cleared, a nationwide allergy telehealth platform that provides personalized treatments for allergy, asthma, and immunology. Under the terms of the agreement, the Company acquired all outstanding shares of Cleared at closing in exchange for a $<span id="xdx_902_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_pn3n3_c20220117__20220118_zwBvE100m2Gi" title="Payments to acquire businesses, net of cash acquired">460</span> thousand upfront cash payment, and two non-contingent milestone payments for a total of $<span id="xdx_901_ecustom--MileStonePayment_pn4n6_c20220117__20220118_zceUBWjd0jhb" title="Milestone payments">3.46</span> million ($<span id="xdx_90D_ecustom--MileStonePayment_pn4n6_c20220117__20220118__srt--StatementScenarioAxis__custom--SecondAnniversariesMember_z2y5yR3Z2QDh" title="Milestone payments">1.73 </span>million each on or before the first and second anniversaries of the closing date). The Company purchased a convertible note from a strategic pharmaceutical investor for $<span id="xdx_906_eus-gaap--ConversionOfStockAmountConverted1_pn3n3_c20220117__20220118_zKOOnYHHk7pe" title="Conversion of stock converted">507</span> thousand which was converted upon closing of the Cleared acquisition. The Company also agreed to a performance-based earnout based on Cleared’s future net sales, payable in cash or shares at the Company’s discretion. On February 4, 2023, the Company entered into the First Amendment to the Stock Purchase Agreement (the “First Amendment”) between the Company and the sellers of Cleared. The First Amendment was amended to, among other things: (i) reduce the total purchase price by $<span id="xdx_903_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_pn3n3_c20230204__20230204__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z3sNhWG0fzL" title="Payments to acquire businesses, net of cash acquired">250</span> thousand to a total of $<span id="xdx_904_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_pn2n6_c20230204__20230204__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--RangeAxis__srt--MinimumMember_zysGojPAGc1h" title="Payments to acquire businesses, net of cash acquired">3.67</span> million; (ii) change the timing of the payment of the purchase price to $<span id="xdx_905_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20230204__20230204__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zCrZJZjjPlY7" title="Payments to acquire businesses, gross">460</span> thousand paid at closing (which has already been paid by the Company), with the remaining amount to be paid in five quarterly installments beginning on or before February 6, 2023 and ending January 15, 2024; (iii) removing all “earn-out” payments payable by the Company to the sellers; and (iv) remove certain representations and warranties of the Company and sellers in connection with the transaction (See Note 3—Acquisitions to our consolidated financial statements included in this report).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In February 2022, WorkSimpli closed on an Asset Purchase Agreement (the “ResumeBuild APA”) with East Fusion FZCO, a Dubai, UAE corporation (the “Seller”), whereby WorkSimpli acquired substantially all of the assets associated with the Seller’s business, offering subscription-based resume building software through software as a service online platforms (the “Acquisition”). WorkSimpli paid $<span id="xdx_90D_eus-gaap--BusinessCombinationConsiderationTransferred1_pn6n6_c20220201__20220228__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_z7gVi0weEvna" title="Consideration paid">4.0</span> million to the Seller upon closing. The Seller is also entitled to a minimum of $<span id="xdx_907_ecustom--BusinessAcquisitionPeriodicPayments_pn3n3_c20220201__20220228__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_znab1QQVrJga" title="Business acquisition periodic payments">500</span> thousand to be paid out in quarterly payments equal to the greater of <span id="xdx_901_ecustom--PercentageOfPaymentAcquistion_pid_dp_uPure_c20220201__20220228__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zWejd0D97xJb" title="Percentage of payment acquistion">15</span>% of net profits (as defined in the ResumeBuild APA) or $<span id="xdx_90C_ecustom--AssetAcquisitionClosing_c20220201__20220228_zPqtwB4nPTu2" title="Asset acquisition closing">62,500</span>, for a two-year period ending on the two-year anniversary of the closing of the Acquisition. WorkSimpli borrowed the purchase price from the Company pursuant to a promissory note with the obligation secured by an equity purchase guarantee agreement and a stock option pledge agreement from Fitzpatrick Consulting, LLC and its sole member Sean Fitzpatrick, who is Co-Founder and President of WorkSimpli (See Note 3—Acquisitions to our consolidated financial statements included in this report).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless otherwise indicated, the terms “LifeMD,” “Company,” “we,” “us,” and “our” refer to LifeMD, Inc. (formerly known as Conversion Labs, Inc.), our wholly subsidiary LifeMD PR LLC (formerly Immudyne PR LLC, and “Conversion Labs PR”), a Puerto Rico limited liability company (“Conversion Labs PR”, or “CLPR”), Cleared, a Delaware public benefit corporation and our majority-owned subsidiary, WorkSimpli. The affiliated network of medical Professional Corporations and medical Professional Associations administratively led by LifeMD Southern Patient Medical Care, P.C., (“LifeMD PC”) is the Company’s affiliated, variable interest entity in which we hold a controlling financial interest. Unless otherwise specified, all dollar amounts are expressed in United States dollars.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Liquidity &amp; Going Concern Evaluation</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has funded operations in the past through the sales of its products, issuance of common and preferred stock, and through loans and advances. The Company’s continued operations are dependent upon obtaining an increase in its sale volumes and obtaining funding from third-party sources or the issuance of additional shares of common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of December 31, 2022, the Company has an accumulated deficit approximating $<span id="xdx_90F_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pn5n6_di_c20221231_zklizyjHE1Bk" title="Accumulated deficit">190.6</span> million and has experienced significant losses from its operations. To date, the Company has been funding operations primarily through the sales of its products, sale of equity in private placements and securities purchased by a financial institution. There can be no assurances that we will be successful in increasing revenues, improving operational efficiencies or that financing will be available or, if available, that such financing will be available under favorable terms.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has a current cash balance of approximately $<span id="xdx_90D_eus-gaap--Cash_iI_pn5n6_c20221231_zNIKHWEI3HXd" title="Cash">14.6</span> million as of the filing date. The Company reviewed its forecasted operating results and sources and uses of cash used in management’s assessment, which included the available financing and consideration of positive and negative evidence impacting management’s forecasts, market, and industry factors. The Company’s continuance as a going concern is highly dependent on its future profitability and on the on-going support of its stockholders, affiliates, and creditors. Based on these circumstances, management has determined that these conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has begun to implement strategies to strengthen revenues and improve operational efficiencies across the business and is significantly curtailing expenses, however, these strategies do not mitigate the substantial doubt about the Company’s ability to continue as a going concern.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally, on June 8, 2021, the Company filed a shelf registration statement on Form S-3 under the Securities Act, which was declared effective on June 22, 2021 (the “2021 Shelf”). Under the 2021 Shelf at the time of effectiveness, the Company had the ability to raise up to $<span id="xdx_903_eus-gaap--DebtSecurities_iI_pn6n6_c20210608__us-gaap--StatementEquityComponentsAxis__custom--SharesAndSecuritiesMember_zuR4wxB8bUM" title="Raise up funds">150</span> million by selling common stock, preferred stock, debt securities, warrants, and units. In conjunction with the 2021 Shelf, the Company also entered into an At Market Issuance Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald &amp; Co. relating to the sale of its common stock. In accordance with the terms of the ATM Sales Agreement, the Company may, but is not obligated to, offer and sell, from time to time, shares of common stock having an aggregate offering price of up to $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pn6n6_c20210607__20210608_zPbRSBsdxZM4" title="Issuance of private placement">60</span> million, through or to the Agents, acting as agent or principal. Sales of common stock, if any, will be made by any method permitted that is deemed an “at the market offering” as defined in Rule 415 under the Securities Act. As of December 31, 2022, the Company has $<span id="xdx_906_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn5n6_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--ATMSalesAgreementMember_zKJMVWmKEP7" title="Proceeds from sale of securities">59.5</span> million available under the ATM Sales Agreement and $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn6n6_c20220101__20221231__us-gaap--TypeOfArrangementAxis__custom--ShelfAgreementMember_zBGS5fKc9La3" title="Proceeds from sale of securities">32</span> million available under the 2021 Shelf.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management believes that the overall market value of the telehealth industry is positive and that it will continue to drive interest in the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2021Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2022Q1 us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
460000 usd
CY2022Q1 LFMD Mile Stone Payment
MileStonePayment
3460000 usd
CY2022Q1 us-gaap Conversion Of Stock Amount Converted1
ConversionOfStockAmountConverted1
507000 usd
CY2022Q1 LFMD Asset Acquisition Closing
AssetAcquisitionClosing
62500 usd
CY2022Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-190600000 usd
CY2022Q4 us-gaap Cash
Cash
14600000 usd
CY2021Q2 us-gaap Proceeds From Issuance Of Private Placement
ProceedsFromIssuanceOfPrivatePlacement
60000000 usd
CY2022Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
160898 usd
CY2021Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
57481 usd
CY2021Q4 us-gaap Goodwill
Goodwill
0 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
8000000.0 usd
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_848_eus-gaap--UseOfEstimates_zERdWsf0Ee16" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Use of Estimates</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include the determination of reserves for accounts receivable, returns and allowances, the valuation of inventory, stockholders’ equity-based transactions, estimates to cash flow projections, and liquidity assessment. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_840_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zDrZiU6oXAfj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Reclassifications</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain reclassifications have been made to conform the prior year’s data to the current presentation. These reclassifications have no effect on previously reported operating loss, stockholders’ deficit, or cash flows. Given the increase in the Company’s software business and to conform the Company’s presentation of operating results to industry standards, the Company has changed their categories for reporting operations and, as a result, the Company has made reclassifications to the prior year presentation in order to conform it to the current periods’ presentation. The reclassifications include: (1) $<span id="xdx_90D_eus-gaap--DevelopmentCosts_c20210101__20211231__us-gaap--IncomeStatementLocationAxis__custom--OtherOperatingExpenseMember_zGvpQa14YcLj" title="Development costs">169,385</span> of development services costs reclassified from other operating expenses to development costs and (2) $<span id="xdx_903_eus-gaap--LeaseCost_c20210101__20211231__us-gaap--IncomeStatementLocationAxis__custom--OtherOperatingExpenseMember_zgZ6qTYbNr31" title="Lease expense">35,165</span> of lease expenses reclassified from general and administrative expenses to other operating expenses, for the year ended December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q4 LFMD Subscription Price Per Share
SubscriptionPricePerShare
1.95
CY2022Q4 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
5500000 usd
CY2021Q4 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
1500000 usd
CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
119033520 usd
CY2022 LFMD Concentration Risk Percentage
ConcentrationRiskPercentage
1 pure
CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
92875806 usd
CY2021 LFMD Concentration Risk Percentage
ConcentrationRiskPercentage
1 pure
CY2021Q4 us-gaap Deferred Revenue
DeferredRevenue
1499880 usd
CY2020Q4 us-gaap Deferred Revenue
DeferredRevenue
916880 usd
CY2022 us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
37410617 usd
CY2021 us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
23430037 usd
CY2022 LFMD Revenue Recognized
RevenueRecognized
33362991 usd
CY2021 LFMD Revenue Recognized
RevenueRecognized
22847037 usd
CY2022Q4 us-gaap Deferred Revenue
DeferredRevenue
5547506 usd
CY2021Q4 us-gaap Deferred Revenue
DeferredRevenue
1499880 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
815000 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
477000 usd
CY2022Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
2587370 usd
CY2021Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1592654 usd
CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
1276891 usd
CY2021Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
81427 usd
CY2022Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
160898 usd
CY2021Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
57481 usd
CY2022Q4 us-gaap Inventory Net
InventoryNet
3703363 usd
CY2021Q4 us-gaap Inventory Net
InventoryNet
1616600 usd
CY2022Q4 us-gaap Deposits Assets Current
DepositsAssetsCurrent
127000 usd
CY2021Q4 us-gaap Deposits Assets Current
DepositsAssetsCurrent
204000 usd
CY2022Q4 us-gaap Purchase Obligation
PurchaseObligation
399000 usd
CY2022Q4 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
12100000 usd
CY2021Q4 us-gaap Capitalized Software Development Costs For Software Sold To Customers
CapitalizedSoftwareDevelopmentCostsForSoftwareSoldToCustomers
3600000 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
8000000.0 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
8000000.0 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
8000000.0 usd
CY2022 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
827000 usd
CY2022 LFMD Principal Of Paycheck Protection Program Loans Forgiven
PrincipalOfPaycheckProtectionProgramLoansForgiven
63400 usd
CY2021 LFMD Principal Of Paycheck Protection Program Loans Forgiven
PrincipalOfPaycheckProtectionProgramLoansForgiven
184914 usd
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
10766676 shares
CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
10385914 shares
CY2022 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 segment
CY2022 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_845_eus-gaap--ConcentrationRiskCreditRisk_zqD7CKQ60eaf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Concentrations of Risk</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company monitors its positions with, and the credit quality of, the financial institutions with which it invests. The Company, at times, maintains balances in various operating accounts in excess of federally insured limits. We are dependent on certain third-party manufacturers and pharmacies, although we believe that other contract manufacturers or third-party pharmacies could be quickly secured if any of our current manufacturers or pharmacies cease to perform adequately. As of December 31, 2022, we utilized four (4) suppliers for fulfillment services, six (6) suppliers for manufacturing finished goods, five (5) suppliers for packaging, bottling, and labeling, and three (3) suppliers for prescription medications. As of December 31, 2021, we utilized four (4) suppliers for fulfillment services, six (6) suppliers for manufacturing finished goods and four (4) suppliers for packaging, bottling and labeling.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p>
CY2022Q1 LFMD Business Combination Consideration Transferred
BusinessCombinationConsiderationTransferred
9100000 usd
CY2022Q1 LFMD Business Combination Cash Paid Upfront
BusinessCombinationCashPaidUpfront
1000000.0 usd
CY2022Q1 LFMD Business Combination Future Payable
BusinessCombinationFuturePayable
3000000.0 usd
CY2022Q1 us-gaap Business Combination Contingent Consideration Asset
BusinessCombinationContingentConsiderationAsset
5100000 usd
CY2022Q1 LFMD Business Combination Potential Earn Out
BusinessCombinationPotentialEarnOut
72800000 usd
CY2022Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Cash And Equivalents
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents
9091762 usd
CY2022Q1 LFMD Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Customer Relationship Intangible Asset
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCustomerRelationshipIntangibleAsset
918812 usd
CY2022Q1 LFMD Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Trade Name Intangible Asset
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedTradeNameIntangibleAsset
133339 usd
CY2022Q1 LFMD Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Developed Technology Intangible Asset
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDevelopedTechnologyIntangibleAsset
12920 usd
CY2022Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Inventory
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory
7168 usd
CY2022Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Property Plant And Equipment
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment
37888 usd
CY2022Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deferred Tax Assets
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedDeferredTaxAssets
354000 usd
CY2022Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable
408030 usd
CY2022Q1 us-gaap Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net
BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
8035665 usd
CY2022Q4 us-gaap Business Combination Recognized Identifiable Assets Acquired Goodwill And Liabilities Assumed Net
BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet
8000000.0 usd
CY2022 us-gaap Business Combination Contingent Consideration Arrangements Change In Amount Of Contingent Consideration Asset1
BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationAsset1
5100000 usd
CY2022 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
8000000.0 usd
CY2022Q1 LFMD Percentage Of Payment Acquistion
PercentageOfPaymentAcquistion
0.15 pure
CY2022Q1 LFMD Asset Acquisition Closing
AssetAcquisitionClosing
62500 usd
CY2022Q4 us-gaap Goodwill
Goodwill
0 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
2043971 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
1209310 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
3831859 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
19761 usd
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
926542 usd
CY2021 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
342310 usd
CY2022Q4 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
3508883 usd
CY2021Q4 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
4981453 usd
CY2022Q4 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
2501035 usd
CY2021Q4 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
2000000 usd
CY2022Q4 LFMD Purchase Price Payable One
PurchasePricePayableOne
2463002 usd
CY2022Q4 us-gaap Dividends Payable Current And Noncurrent
DividendsPayableCurrentAndNoncurrent
776563 usd
CY2021Q4 us-gaap Dividends Payable Current And Noncurrent
DividendsPayableCurrentAndNoncurrent
871476 usd
CY2022Q4 us-gaap Accrued Payroll Taxes Current
AccruedPayrollTaxesCurrent
576027 usd
CY2021Q4 us-gaap Accrued Payroll Taxes Current
AccruedPayrollTaxesCurrent
1657843 usd
CY2022Q4 us-gaap Interest Payable Current
InterestPayableCurrent
448718 usd
CY2022Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
1892281 usd
CY2021Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
2084833 usd
CY2022Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
12166509 usd
CY2021Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
11595605 usd
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
1.324 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0080 pure
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2022Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
5000000 shares
CY2022Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2022Q4 LFMD Undesignated Preferred Stock
UndesignatedPreferredStock
3385000 shares
CY2021Q2 us-gaap Substantial Doubt About Going Concern Managements Plans Substantial Doubt Alleviated
SubstantialDoubtAboutGoingConcernManagementsPlansSubstantialDoubtAlleviated
Under the 2021 Shelf at the time of effectiveness, the Company had the ability to raise up to $150 million by selling common stock, preferred stock, debt securities, warrants and units. In conjunction with the 2021 Shelf, the Company also entered into the ATM Sales Agreement whereby the Company may offer and sell, from time to time, shares of common stock having an aggregate offering price of up to $60 million.
CY2021Q2 us-gaap Proceeds From Issuance Of Private Placement
ProceedsFromIssuanceOfPrivatePlacement
60000000 usd
CY2022 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
58500000 usd
CY2021Q4 us-gaap Proceeds From Issuance Or Sale Of Equity
ProceedsFromIssuanceOrSaleOfEquity
55300000 usd
CY2022 us-gaap Preferred Stock Dividends Per Share Declared
PreferredStockDividendsPerShareDeclared
2.21875
CY2022 LFMD Percentage Of Preferred Stock Liquidation Preference
PercentageOfPreferredStockLiquidationPreference
0.08875 pure
CY2022Q4 us-gaap Preferred Stock Liquidation Preference
PreferredStockLiquidationPreference
25.00
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Description
ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription
The Series A Preferred Stock is perpetual and has no maturity date. The Series A Preferred Stock will be redeemable at our option, in whole or in part, at the following redemption prices, plus any accrued and unpaid dividends up to, but not including, the date of redemption: 1) on and after October 15, 2022 and prior to October 15, 2023, at a redemption price equal to $25.75 per share, 2) on and after October 15, 2023 and prior to October 15, 2024, at a redemption price equal to $25.50 per share, 3) on and after October 15, 2024 and prior to and prior to October 15, 2025 at a redemption price equal to $25.25 per share and 4) on and after October 15, 2025 at a redemption price equal to $25.00 per share. In addition, upon the occurrence of a delisting event or change of control, we may, subject to certain conditions, at our option, redeem the Series A Preferred Stock, in whole or in part within 90 days after the first date on which such delisting event occurred or within 120 days after the first date on which such change of control occurred, as applicable, by paying $25.00 per share, plus any accumulated and unpaid dividends up to, but not including, the redemption date.
CY2022Q4 us-gaap Dividends Payable Amount Per Share
DividendsPayableAmountPerShare
25.00
CY2022 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
90400 shares
CY2022 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
90400 usd
CY2022 LFMD Cashless Exercise Of Options Shares
CashlessExerciseOfOptionsShares
29691 shares
CY2022 LFMD Stock Issued During Period Shares Warrants Exercised
StockIssuedDuringPeriodSharesWarrantsExercised
22000 shares
CY2022 us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
38500 usd
CY2021 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
375000 shares
CY2021 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
670750 usd
CY2021 LFMD Cashless Exercise Of Options Shares
CashlessExerciseOfOptionsShares
873047 shares
CY2021 LFMD Stock Issued During Period Shares Warrants Exercised
StockIssuedDuringPeriodSharesWarrantsExercised
162033 shares
CY2021 us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
480609 usd
CY2022 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
306250 shares
CY2022 us-gaap Stock Issued During Period Shares Other
StockIssuedDuringPeriodSharesOther
400000 shares
CY2021 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
1347875 shares
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
823350 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
523206 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
68850 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
85177 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
1330229 usd
CY2022 us-gaap Operating Lease Expense
OperatingLeaseExpense
871344 usd
CY2021 us-gaap Operating Lease Expense
OperatingLeaseExpense
47565 usd
CY2022 us-gaap Operating Lease Payments
OperatingLeasePayments
773952 usd
CY2021 us-gaap Operating Lease Payments
OperatingLeasePayments
392241 usd
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P2Y9M25D
CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P3Y9M
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0715 pure
CY2021Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0715 pure
CY2022Q4 us-gaap Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
P12M
CY2022 us-gaap Short Term Lease Payments
ShortTermLeasePayments
2700 usd
CY2022 us-gaap Payments For Rent
PaymentsForRent
3000 usd
CY2022Q4 us-gaap Purchase Obligation
PurchaseObligation
399000 usd
CY2021Q4 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
5-for-1
CY2021Q4 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
5-for-1
CY2021Q4 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
5-for-1
CY2022 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
400000 shares
CY2022 LFMD Number Of Additional Shares Issued
NumberOfAdditionalSharesIssued
100000 shares
CY2022 us-gaap Stock Issued During Period Shares New Issues
StockIssuedDuringPeriodSharesNewIssues
400000 shares
CY2022 LFMD Number Of Additional Shares Issued
NumberOfAdditionalSharesIssued
100000 shares
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards Domestic
DeferredTaxAssetsOperatingLossCarryforwardsDomestic
94300000 usd
CY2022 LFMD Operating Loss Carryforwards Expiration Description
OperatingLossCarryforwardsExpirationDescription
the net operating loss carryforwards will expire in 2023 if not utilized prior, and will continue to expire during various years through 2038
CY2022 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
11800000 usd
CY2021 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
20800000 usd
CY2022 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
6700 usd
CY2021 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
7700 usd
CY2022 us-gaap Current Federal State And Local Tax Expense Benefit
CurrentFederalStateAndLocalTaxExpenseBenefit
6700 usd
CY2021 us-gaap Current Federal State And Local Tax Expense Benefit
CurrentFederalStateAndLocalTaxExpenseBenefit
7700 usd
CY2022 us-gaap Deferred Federal Income Tax Expense Benefit
DeferredFederalIncomeTaxExpenseBenefit
1719000 usd
CY2022 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-1365000 usd
CY2022 us-gaap Deferred Federal State And Local Tax Expense Benefit
DeferredFederalStateAndLocalTaxExpenseBenefit
354000 usd
CY2022 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
360700 usd
CY2021 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
7700 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.25 pure
CY2022 LFMD Expected Tax Expense Benefit
ExpectedTaxExpenseBenefit
-9474000 usd
CY2021 LFMD Expected Tax Expense Benefit
ExpectedTaxExpenseBenefit
-12684000 usd
CY2022 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
-714000 usd
CY2021 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
-618000 usd
CY2022 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
730000 usd
CY2021 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
-52000 usd
CY2022 LFMD Effective Income Tax Rate Reconciliation Tax Apportionment Of Puerto Rico Income
EffectiveIncomeTaxRateReconciliationTaxApportionmentOfPuertoRicoIncome
-108000 usd
CY2021 LFMD Effective Income Tax Rate Reconciliation Tax Apportionment Of Puerto Rico Income
EffectiveIncomeTaxRateReconciliationTaxApportionmentOfPuertoRicoIncome
76000 usd
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
9973000 usd
CY2021 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
13192000 usd
CY2022 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-46300 usd
CY2021 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
93700 usd
CY2022 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
360700 usd
CY2021 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
7700 usd
CY2022Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
11646000 usd
CY2021Q4 us-gaap Deferred Tax Assets Tax Deferred Expense Compensation And Benefits Share Based Compensation Cost
DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefitsShareBasedCompensationCost
6899000 usd
CY2022Q4 LFMD Deferred Tax Asset Software Development
DeferredTaxAssetSoftwareDevelopment
-142000 usd
CY2022Q4 LFMD Deferred Tax Assets Temporary Differences
DeferredTaxAssetsTemporaryDifferences
-2389000 usd
CY2021Q4 LFMD Deferred Tax Assets Temporary Differences
DeferredTaxAssetsTemporaryDifferences
-1201000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
21382000 usd
CY2021Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
15673000 usd
CY2022Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
35559000 usd
CY2021Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
23773000 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
35559000 usd
CY2021Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
23773000 usd
CY2022 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 segment
CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
119033520 usd
CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
92875806 usd
CY2022 LFMD Gross Margin
GrossMargin
0.843 pure
CY2021 LFMD Gross Margin
GrossMargin
0.806 pure
CY2022 us-gaap Operating Income Loss
OperatingIncomeLoss
-43447781 usd
CY2021 us-gaap Operating Income Loss
OperatingIncomeLoss
-54301081 usd
CY2022Q4 us-gaap Assets
Assets
25665853 usd
CY2021Q4 us-gaap Assets
Assets
49923243 usd

Files In Submission

Name View Source Status
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