2024 Q4 Form 10-Q Financial Statement

#000149315224044032 Filed on November 07, 2024

View on sec.gov

Income Statement

Concept 2024 Q4 2024 Q3 2023 Q3
Revenue $53.39M $38.61M
YoY Change 38.27% 22.93%
Cost Of Revenue $5.014M $4.782M
YoY Change 4.85% 1.37%
Gross Profit $48.38M $33.83M
YoY Change 43.0% 26.73%
Gross Profit Margin 90.61% 87.62%
Selling, General & Admin $45.54M $33.18M
YoY Change 37.26% 11.79%
% of Gross Profit 94.13% 98.06%
Research & Development $2.612M $1.500M
YoY Change 74.12% 82.56%
% of Gross Profit 5.4% 4.43%
Depreciation & Amortization $2.557M $1.730M
YoY Change 47.8% 51.74%
% of Gross Profit 5.29% 5.11%
Operating Expenses $53.07M $38.40M
YoY Change 38.19% 14.59%
Operating Profit -$4.686M -$4.569M
YoY Change 2.55% -32.98%
Interest Expense $558.6K $713.8K
YoY Change -21.74% 439.77%
% of Operating Profit
Other Income/Expense, Net $0.00
YoY Change -100.0%
Pretax Income -$5.245M -$5.280M
YoY Change -0.67% -26.65%
Income Tax $232.5K
% Of Pretax Income
Net Earnings -$5.131M -$6.122M
YoY Change -16.19% -15.92%
Net Earnings / Revenue -9.61% -15.86%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.14 -$0.20
COMMON SHARES
Basic Shares Outstanding 43.31M shares 43.07M shares 36.03M shares
Diluted Shares Outstanding 42.02M shares 34.47M shares

Balance Sheet

Concept 2024 Q4 2024 Q3 2023 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $37.59M $15.29M
YoY Change 145.83% 161.96%
Cash & Equivalents $35.00M $37.60M $15.29M
Short-Term Investments
Other Short-Term Assets $2.672M $2.238M $1.304M
YoY Change 185.95% 71.63% 60.08%
Inventory $2.797M $2.645M $3.791M
Prepaid Expenses
Receivables $8.218M $6.050M $4.419M
Other Receivables $0.00 $0.00
Total Short-Term Assets $48.73M $48.66M $24.89M
YoY Change 14.39% 95.52% 91.82%
LONG-TERM ASSETS
Property, Plant & Equipment $1.479M $1.420M $424.6K
YoY Change 210.56% 234.42% -20.41%
Goodwill $8.000M
YoY Change 40.35%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $23.73M $23.90M $15.80M
YoY Change 49.45% 51.24% -22.48%
TOTAL ASSETS
Total Short-Term Assets $48.73M $48.66M $24.89M
Total Long-Term Assets $23.73M $23.90M $15.80M
Total Assets $72.46M $72.56M $40.69M
YoY Change 23.9% 78.32% 21.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $16.01M $15.87M $9.637M
YoY Change 44.43% 64.64% -10.74%
Accrued Expenses $20.81M $21.01M $15.49M
YoY Change 49.32% 35.63% 39.8%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $430.0K
YoY Change -100.0%
Long-Term Debt Due $5.278M
YoY Change
Total Short-Term Liabilities $60.26M $58.95M $32.52M
YoY Change 73.24% 81.27% 30.43%
LONG-TERM LIABILITIES
Long-Term Debt $12.95M $18.83M
YoY Change -31.22%
Other Long-Term Liabilities $6.611M $430.0K
YoY Change 1437.54% -91.95%
Total Long-Term Liabilities $19.56M $19.26M
YoY Change 1.57% 260.45%
TOTAL LIABILITIES
Total Short-Term Liabilities $60.26M $58.95M $32.52M
Total Long-Term Liabilities $19.56M $19.26M
Total Liabilities $76.51M $78.51M $51.78M
YoY Change 44.58% 51.65% 71.0%
SHAREHOLDERS EQUITY
Retained Earnings -$236.3M -$235.0M -$209.8M
YoY Change 10.27% 12.01% 17.96%
Common Stock $422.9K $419.1K $347.6K
YoY Change 10.26% 20.57% 10.5%
Preferred Stock
YoY Change
Treasury Stock (at cost) $163.7K $163.7K $163.7K
YoY Change 0.0% 0.0% 0.0%
Treasury Stock Shares
Shareholders Equity -$5.486M -$7.720M -$12.67M
YoY Change
Total Liabilities & Shareholders Equity $72.46M $72.56M $40.69M
YoY Change 23.9% 78.32% 21.97%

Cashflow Statement

Concept 2024 Q4 2024 Q3 2023 Q3
OPERATING ACTIVITIES
Net Income -$5.131M -$6.122M
YoY Change -16.19% -15.92%
Depreciation, Depletion And Amortization $2.557M $1.730M
YoY Change 47.8% 51.74%
Cash From Operating Activities $6.203M $1.080M
YoY Change 474.34% -138.9%
INVESTING ACTIVITIES
Capital Expenditures $3.491M $2.410M
YoY Change 44.87% -207.51%
Acquisitions
YoY Change
Other Investing Activities -$1.860K $0.00
YoY Change
Cash From Investing Activities -$3.493M -$2.410M
YoY Change 44.95% 7.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -825.6K 4.710M
YoY Change -117.53% -645.83%
NET CHANGE
Cash From Operating Activities 6.203M 1.080M
Cash From Investing Activities -3.493M -2.410M
Cash From Financing Activities -825.6K 4.710M
Net Change In Cash 1.884M 3.380M
YoY Change -44.26% -157.48%
FREE CASH FLOW
Cash From Operating Activities $6.203M $1.080M
Capital Expenditures $3.491M $2.410M
Free Cash Flow $2.711M -$1.330M
YoY Change -303.87% 148.86%

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LFMD Payments To Acquire Productive Asset
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us-gaap Interest Paid Net
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us-gaap Interest Paid Net
InterestPaidNet
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LFMD Cashless Exercise Of Options
CashlessExerciseOfOptions
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CashlessExerciseOfWarrants
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us-gaap Stock Issued1
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us-gaap Stock Issued1
StockIssued1
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NonCashWarrantsIssuedForDebtInstruments
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LFMD Right Of Use Asset
RightOfUseAsset
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us-gaap Capital Lease Obligations Incurred
CapitalLeaseObligationsIncurred
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us-gaap Nature Of Operations
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<p id="xdx_80E_eus-gaap--NatureOfOperations_zja3D7QAos3d" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_82F_zTfqh41Gc0Zh">NATURE OF THE ORGANIZATION AND BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; 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_zPQrCfTR6TR1" 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 0pt 0pt 0; 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 0pt 0pt 0; 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 skincare products, 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_zWXPL9BhQ3Uf" 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 (“Conversion Labs PR”). 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_z3TUZd5sZ6K7" title="Equity method investment, ownership percentage">100</span>%. On February 22, 2021, concurrent with the name of the parent company to LifeMD, Inc., Conversion Labs PR was renamed to LifeMD PR, LLC.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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_zm6B4QOYAll" 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 and concurrently increased its ownership interest in WorkSimpli to <span id="xdx_905_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20210122__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--WorkSimpliSoftwareLlcMember_zjz4CZkEgb34">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_90E_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20220930__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--WorkSimpliSoftwareLlcMember_zbUPu9DH37pc">73.6</span>%. Effective December 15, 2022, LifeMD PR, LLC merged into WorkSimpli, with WorkSimpli being the surviving entity.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective March 31, 2023, the Company redeemed <span id="xdx_909_ecustom--NumberOfMembershipInterestUnitsRedeemed_c20230331__20230331__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--WorkSimpliSoftwareLlcMember_zP7w0Y8eVpAj" title="Number of membership interest units redeemed">500</span> membership interest units in WorkSimpli and, as a result, the Company’s ownership interest in WorkSimpli increased to <span id="xdx_90F_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20230331__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--WorkSimpliSoftwareLlcMember_z4pW7ppodLa7" title="Ownership Interest">74.1</span>%. Effective June 30, 2023, an option agreement was exercised which further restructured the ownership of WorkSimpli. As a result, the Company’s ownership interest in WorkSimpli decreased to <span id="xdx_909_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20230630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--ConversionLabsPRLLCMember__us-gaap--TypeOfArrangementAxis__custom--OptionAgreementMember_zu0062ybKyD8" title="Ownership interest">73.3</span>%. See Note 8 for additional information.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is a direct-to-patient telehealth company providing a high-quality, cost-effective, and convenient way to access comprehensive, virtual and in-home healthcare. The Company believes the traditional model of visiting a doctor’s office, traveling to a retail pharmacy, and returning for follow up care or prescription refills is complex, inefficient, and costly, and discourages many individuals from seeking medical care. The Company is improving the delivery of healthcare through telehealth with our proprietary technology platform, affiliated-and-dedicated provider network, broad and expanding 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, weight management, sleep, hair loss, men’s and women’s health, hormonal therapy and dermatology, chronic care management and more.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in; 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 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the first quarter of 2022, we launched our virtual primary care offering under the LifeMD brand, LifeMD Primary Care. This offering provides patients with 24/7 access to an affiliated high-quality provider for their primary care, urgent care, and chronic care needs.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify; text-indent: 0.5in; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In April 2023, we launched our GLP-1 Weight Management program providing primary care, weight loss, holistic healthcare, lab work and prescription services, as appropriate, to patients seeking to access a medically supported weight loss solution. In September 2024, we expanded our Weight Management program with an alternative designed for patients who are unable or unwilling to use GLP-1 medications. This treatment plan consists of three oral medications – metformin, bupropion, and topiramate.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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_90D_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20180630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--WorkSimpliSoftwareLlcMember_zgY4yG87xqpl">51</span>% of WorkSimpli. As a result of various ownership restructurings, the Company’s ownership interest in WorkSimpli is <span id="xdx_903_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20231231__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--WorkSimpliSoftwareLlcMember_zqtgGcLBi7ok">73.3</span>% as of December 31, 2023. See Note 8 for additional information.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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_906_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_pn3n3_c20220118__20220118_zNDxxIlyxYui" 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 $<span id="xdx_903_ecustom--MileStonePayment_pn4n6_c20220118__20220118_zNlH3ntrCA4j" title="Milestone payments">3.46</span> million ($<span id="xdx_909_ecustom--MileStonePayment_pn4n6_c20220118__20220118__srt--StatementScenarioAxis__custom--FirstAndSecondAnniversariesMember_zbCyKjyKEZcl" 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_904_eus-gaap--ConversionOfStockAmountConverted1_pn3n3_c20220118__20220118_z1OsT2og9f01" 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 (the “Cleared First Amendment”) to the Stock Purchase Agreement, dated January 11, 2022, between the Company and the sellers of Cleared (the “Cleared Stock Purchase Agreement”). The Cleared Stock Purchase Agreement was amended to, among other things: (i) reduce the total purchase price by $<span id="xdx_900_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_pn3n3_c20230204__20230204__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreeementMember_zagHLhDkt9z7" title="Payments to acquire businesses, net of cash acquired">250</span> thousand to a total of $<span id="xdx_903_eus-gaap--PaymentsToAcquireBusinessesNetOfCashAcquired_pn4n6_c20230204__20230204__srt--RangeAxis__srt--MinimumMember__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreeementMember_zFDlwVhKt3L6" 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_901_eus-gaap--PaymentsToAcquireBusinessesGross_pn3n3_c20230204__20230204__us-gaap--TypeOfArrangementAxis__custom--StockPurchaseAgreeementMember_zrqengi5XdYa" 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) remove 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). The Company issued the following shares of common stock to the sellers of Cleared under the Cleared First Amendment: (1) <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230206__20230206__us-gaap--AwardTypeAxis__custom--FirstOfFiveQuarterlyInstallmentMember_zQO2VYFdvRhe" title="Stock issued during period shares new issues">337,895</span> shares on February 6, 2023, (2) <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230417__20230417__us-gaap--AwardTypeAxis__custom--SecondOfFiveQuarterlyInstallmentMember_z05FQT38xGj3" title="Stock issued during period shares new issues">455,319</span> shares on April 17, 2023, (3) <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230717__20230717__us-gaap--AwardTypeAxis__custom--ThirdOfFiveQuarterlyInstallmentMember_z7eoiCXftaCf" title="Stock issued during period shares new issues">158,129</span> shares on July 17, 2023, (4) <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20231017__20231017__us-gaap--AwardTypeAxis__custom--FourthOfFiveQuarterlyInstallmentMember_zW3VNGQq5UO7" title="Stock issued during period shares new issues">117,583</span> shares on October 17, 2023 and (5) <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240116__20240116__us-gaap--AwardTypeAxis__custom--FifthQuarterlyInstallmentMember_zT2JCD5Fn806" title="Stock issued during period shares new issues">95,821</span> shares on January 16, 2024.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><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_90B_eus-gaap--BusinessCombinationConsiderationTransferred1_pn5n6_c20220201__20220228__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zW73lswIfvWf" title="Consideration paid">4.0</span> million to the Seller upon closing. The Seller is also entitled to a minimum of $<span id="xdx_90B_ecustom--BusinessAcquisitionPeriodicPayments_pn3n3_c20220201__20220228__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zUvpTsXpd0l8" title="Business acquisition periodic payments">500</span> thousand to be paid out in quarterly payments equal to the greater of <span id="xdx_90A_ecustom--PercentageOfPaymentAcquisition_pid_dp_uPure_c20220201__20220228__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zYVtN2Vx2oL4" title="Percentage of payment acquisition">15</span>% of net profits (as defined in the ResumeBuild APA) or approximately $<span id="xdx_908_ecustom--AssetAcquisitionClosing_pn3n3_c20220201__20220228_z2QNPafAqpUg" title="Asset acquisition closing">63</span> thousand, for a two-year period ending on the two-year anniversary of the closing of the Acquisition. As of September 30, 2024, WorkSimpli has paid the Seller $<span id="xdx_909_eus-gaap--BusinessCombinationConsiderationTransferred1_pn3n3_c20240101__20240930__us-gaap--TypeOfArrangementAxis__custom--AssetPurchaseAgreementMember_zS38KQ7KNW09" title="Consideration paid">500</span> thousand in accordance with the ResumeBuild APA. 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). As of September 30, 2024, there is no remaining balance outstanding related to the promissory note.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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.), 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 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Liquidity Evaluation</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of September 30, 2024, the Company has an accumulated deficit of approximately $<span id="xdx_907_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pn6n6_di_c20240930_zqspvZ9QKAKd">235</span> million and has experienced significant losses from its operations. Although the Company is showing significant positive revenue trends, the Company expects to incur further losses through 2024. Additionally, the Company expects its burn rate of cash to continue to improve and to maintain positive operating cash flows for the next 12 months following the date of this report. To date, the Company has been funding operations primarily 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 or the issuance of additional shares of common stock. There can be no assurances that we will be successful in increasing revenues and improving operational efficiencies.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On March 21, 2023, the Company entered into and closed on a loan and security agreement (the “Avenue Credit Agreement”), and a supplement to the Credit Agreement (the “Avenue Supplement”), with Avenue Venture Opportunities Fund II, L.P. and Avenue Venture Opportunities Fund, L.P. (collectively, “Avenue”). The Avenue Credit Agreement provides for a convertible senior secured credit facility of up to an aggregate amount of $<span id="xdx_909_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn6n6_c20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_ze52gHPEgTxh" title="Credit facility">40</span> million, comprised of the following: (1) $<span id="xdx_90E_eus-gaap--ProceedsFromLinesOfCredit_pn6n6_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zGjmsMIK7kNi" title="Proceeds from line of credit">15</span> million in term loans funded at closing, (2) $<span id="xdx_90B_eus-gaap--ProceedsFromLinesOfCredit_pn6n6_c20230926__20230926__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zhvPQacqoYoi" title="Proceeds from line of credit">5</span> million of additional committed term loans which the Company received on September 26, 2023 under the First Amendment to the Avenue Credit Agreement (the “Avenue First Amendment”) and (3) $<span id="xdx_909_ecustom--LinesOfCreditUncommittedTremLoan_pn6n6_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zTTYqCaO5Zv1" title="Uncommitted term loans">20</span> million of additional uncommitted term loans, collectively referred to as the “Avenue Facility”. The Avenue Facility matures on <span id="xdx_909_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_z4c3119G6EU8" title="Line of credit, expiration date">October 1, 2026</span>. The Company issued Avenue warrants to purchase $<span id="xdx_90F_ecustom--WarrantToPurchaseStockValue_pn5n6_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zp3eRYTocDJk" title="Warrants to purchase">1.2</span> million of the Company’s common stock at an exercise price of $<span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zgURgpu2pTl1" title="Warrants exercise price">1.24</span>, subject to adjustments (the “Avenue Warrants”). In addition, Avenue may convert up to $<span id="xdx_901_eus-gaap--DebtConversionConvertedInstrumentAmount1_pn6n6_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zYDwstkwZ5G" title="Debt conversion amount">2</span> million of the $<span id="xdx_90C_eus-gaap--ProceedsFromLinesOfCredit_pn6n6_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zRUaBxyfJQ6l" title="Proceeds from line of credit">15</span> million in term loans funded at closing into shares of the Company’s common stock at any time while the loans are outstanding, at a price per share equal to $<span id="xdx_90A_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_c20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_z1Fwc9NJr7ig" title="Conversion price">1.49</span>. Proceeds from the Avenue Facility were used to repay the Company’s outstanding notes payable balances with CRG Financial and are expected to be used for general corporate purposes. <span id="xdx_900_eus-gaap--LineOfCreditFacilityDescription_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zrE8tGW0eyfg" title="Line of credit, description">The Company is subject to certain affirmative and negative covenants under the Avenue Facility, including the requirement, beginning on the closing date, to maintain at least $5 million of unrestricted cash to be tested at the end of each month, and beginning on the period ended September 30, 2023, and at the end of each quarter thereafter, a trailing six-month cash flow, subject to certain adjustments as provided by the Avenue Credit Agreement, of at least $2 million.</span> As of September 30, 2024, there was $<span id="xdx_900_eus-gaap--LineOfCreditFacilityMaximumMonthendOutstandingAmount_pn6n6_c20240101__20240930__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zMyD5DgtWHNh" title="Credit facility outstanding">19</span> million outstanding under the Avenue Facility, and the Company was in compliance with the Avenue Facility covenants. Loans under the Avenue Facility accrue interest at a variable rate per annum equal to the greater of <span id="xdx_900_eus-gaap--LineOfCreditFacilityInterestRateDescription_c20240101__20240930__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zK2RqQL9pAnk" title="Credit facility interest rate description">(i) the sum of 4.75% plus the Prime Rate (as defined in the Avenue Supplement) and (ii) 12.50%. Payments are interest only for up to 24 months and then fully amortized thereafter.</span> The Avenue Facility matures on <span id="xdx_909_eus-gaap--LineOfCreditFacilityExpirationDate1_dd_c20230321__20230321__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember_zJRJWsZpls6d" title="Line of credit, expiration date">October 1, 2026</span>. The Company may prepay the loans, subject to a prepayment penalty of <span id="xdx_90D_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_c20240101__20240930__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember__srt--RangeAxis__srt--MinimumMember_zi6yZ87WFHAh" title="Credit facility interest rate">1.00</span>% to <span id="xdx_90D_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_c20240101__20240930__us-gaap--CreditFacilityAxis__custom--AvenueFacilityMember__srt--RangeAxis__srt--MaximumMember_z4gCoI5SivY5" title="Credit facility interest rate">3.00</span>% of the principal amount prepaid, depending on the timing of the prepayment.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On December 11, 2023, the Company entered into a collaboration with Medifast, Inc. through and with certain of its wholly-owned subsidiaries (“Medifast”). Pursuant to certain agreements between the parties, Medifast has agreed to pay to the Company the amount of $<span id="xdx_907_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_iI_pn6n6_c20231211__dei--LegalEntityAxis__custom--MedifastIncMember_zdbP43EOpg0e" title="Collaboration amount">10</span> million to support the collaboration, funding enhancements to the Company platform, operations and supporting infrastructure, of which $<span id="xdx_90A_eus-gaap--BusinessAcquisitionCostOfAcquiredEntityTransactionCosts_iI_pn6n6_c20231212__dei--LegalEntityAxis__custom--MedifastIncMember_zqv3METS7tc8" title="Collaboration amount">5</span> million was paid at the closing on December 12, 2023, $<span id="xdx_90C_ecustom--BusinessCombinationRemainingConsiderationTransferred_pn5n6_c20240101__20240331__dei--LegalEntityAxis__custom--MedifastIncMember_zUaL36chSJOl" title="Consideration to be transferred">2.5</span> million was paid during the three months ended March 31, 2024, and the remaining $<span id="xdx_905_ecustom--BusinessCombinationRemainingConsiderationTransferred_pn5n6_c20240401__20240630__dei--LegalEntityAxis__custom--MedifastIncMember_zlCDPYHJdEi1" title="Consideration to be transferred">2.5</span> million was paid during the three months ended June 30, 2024 (the “Medifast Collaboration”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In addition, in connection with the Medifast Collaboration, the Company entered into a stock purchase agreement and registration rights agreement with Medifast’s wholly-owned subsidiary, Jason Pharmaceuticals, Inc., whereby the Company issued <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20231211__20231211__us-gaap--TypeOfArrangementAxis__custom--MedifastPrivatePlacementMember_zjlEc1E2MVl7" title="Shares issued">1,224,425</span> shares of its common stock in a private placement (the “Medifast Private Placement”) at a purchase price of $<span id="xdx_90E_eus-gaap--SaleOfStockPricePerShare_iI_pid_uUSDPShares_c20231211__us-gaap--TypeOfArrangementAxis__custom--MedifastPrivatePlacementMember_z8lqDFBc8l9j" title="Shares issued per share">8.1671</span> per share, for aggregate proceeds of approximately $<span id="xdx_908_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_pn6n6_c20231211__20231211__us-gaap--TypeOfArrangementAxis__custom--MedifastPrivatePlacementMember_zIXmZzgqoE41" title="Proceeds">10</span> million.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company 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, 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. On June 7, 2024, the Company filed a shelf registration statement on Form S-3 under the Securities Act, which was declared effective on July 18, 2024 (the “2024 Shelf”). Under the 2024 Shelf at the time of effectiveness, the Company had the ability to raise up to $<span id="xdx_902_eus-gaap--DebtSecurities_iI_pn5n6_c20240707__us-gaap--StatementEquityComponentsAxis__custom--SharesAndSecuritiesMember_zbojpObroNie" title="Raise up funds">150.0</span> million by selling common stock, preferred stock, debt securities, warrants, and units including $<span id="xdx_90E_eus-gaap--ProceedsFromIssuanceOfCommonStock_pn5n6_c20240707__20240707__us-gaap--TypeOfArrangementAxis__custom--ATMSalesAgreementMember_zzTnFyq9cRld" title="Proceeds from issuance of common stock">53.3</span> million of its common stock under the ATM Sales Agreement. As of September 30, 2024, the Company had $<span id="xdx_905_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pn5n6_c20240101__20240930__us-gaap--TypeOfArrangementAxis__custom--ATMSalesAgreementMember_z6L3a7QMABUk" title="Proceeds from sale of securities">53.3</span> million available under the ATM Sales Agreement, which is part of the $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pn5n6_c20240101__20240930__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyFourShelfMember_zlsPxCD3kHB6" title="Proceeds from sale of securities">150.0</span> million available under the 2024 Shelf.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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_907_eus-gaap--Cash_iI_pn5n6_c20240807_zDvg9B3oKADa">32.6</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. Positive indicators that lead to the Company’s expectation that it will have sufficient cash over the next 12 months following the date of this report include: (1) the Company’s continued strengthening of its revenues and improvement of operational efficiencies across the business, (2) the expected improvement in its cash burn rate over the next 12 months and positive operating cash flows during the nine months ended September 30, 2024, (3) cash on hand of $<span id="xdx_906_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pn5n6_c20240930_zn14BjmByST7" title="Cash on hand">37.6</span> million as of September 30, 2024, (4) $<span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pn5n6_c20240101__20240930__us-gaap--TypeOfArrangementAxis__custom--ATMSalesAgreementMember_znxh0nFw4fGh">53.3</span> million available under the ATM Sales Agreement, which is part of the $<span id="xdx_902_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_pn5n6_c20240101__20240930__us-gaap--TypeOfArrangementAxis__custom--TwentyTwentyFourShelfMember_zHYWPrD22BZ5">150.0</span> million available under the 2024 Shelf, (5) management’s ability to curtail expenses, if necessary, and (6) the overall market value of the telehealth industry, which it believes that will continue to drive interest in the Company as already evidenced by the Medifast Collaboration and Medifast Private Placement noted above.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b> </b></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
63000 usd
CY2024Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-235000000 usd
CY2024Q3 us-gaap Cash
Cash
32600000 usd
CY2024Q3 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
37600000 usd
us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_841_eus-gaap--UseOfEstimates_zBPOZlMOxLy6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zo27DYrI2Wag">Use of Estimates</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company prepares its unaudited condensed 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 returns and allowances, stockholders’ equity-based transactions, the capitalization and impairment of capitalized software and impairment of other long-lived assets, 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 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2024Q3 LFMD Subscription Price Per Share
SubscriptionPricePerShare
1.95
CY2024Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
53393157 usd
CY2024Q3 LFMD Concentration Risk Percentage
ConcentrationRiskPercentage
1 pure
CY2023Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
38613911 usd
CY2023Q3 LFMD Concentration Risk Percentage
ConcentrationRiskPercentage
1 pure
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
148199266 usd
LFMD Concentration Risk Percentage
ConcentrationRiskPercentage
1 pure
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
107687158 usd
LFMD Concentration Risk Percentage
ConcentrationRiskPercentage
1 pure
CY2024Q3 us-gaap Deferred Revenue
DeferredRevenue
16400000 usd
CY2023Q4 us-gaap Deferred Revenue
DeferredRevenue
8800000 usd
CY2024Q3 LFMD Increase In Deferred Revenue
IncreaseInDeferredRevenue
7600000 usd
CY2024Q3 us-gaap Deferred Revenue
DeferredRevenue
16400000 usd
CY2023Q4 us-gaap Deferred Revenue
DeferredRevenue
8800000 usd
LFMD Subscription Revenue
SubscriptionRevenue
38800000 usd
CY2024Q3 LFMD Deferred Revenue Balances From Previous Year
DeferredRevenueBalancesFromPreviousYear
11200000 usd
LFMD Deferred Revenue Balances From Previous Year
DeferredRevenueBalancesFromPreviousYear
7400000 usd
CY2024Q2 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
15161659 usd
CY2023Q2 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
5668210 usd
CY2023Q4 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
8828598 usd
CY2022Q4 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
5547506 usd
CY2024Q3 us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
49937216 usd
CY2023Q3 us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
38335297 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
144979731 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
103301114 usd
CY2024Q3 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
48708334 usd
CY2023Q3 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
37764153 usd
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
137417788 usd
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
102609266 usd
CY2024Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
16390541 usd
CY2023Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
6239354 usd
CY2024Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
16390541 usd
CY2023Q3 us-gaap Deferred Revenue Current
DeferredRevenueCurrent
6239354 usd
CY2024Q3 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
930000 usd
CY2023Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
528000 usd
CY2024Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
265000 usd
CY2023Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
356000 usd
CY2024Q3 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1594216 usd
CY2023Q4 us-gaap Inventory Finished Goods
InventoryFinishedGoods
1216833 usd
CY2024Q3 us-gaap Inventory Raw Materials
InventoryRawMaterials
1316042 usd
CY2023Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
1898784 usd
CY2024Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
264815 usd
CY2023Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
355685 usd
CY2024Q3 us-gaap Inventory Net
InventoryNet
2645443 usd
CY2023Q4 us-gaap Inventory Net
InventoryNet
2759932 usd
CY2024Q3 us-gaap Deposits Assets Current
DepositsAssetsCurrent
137000 usd
CY2023Q4 us-gaap Deposits Assets Current
DepositsAssetsCurrent
486000 usd
CY2024Q3 us-gaap Purchase Obligation
PurchaseObligation
1100000 usd
CY2024Q3 us-gaap Capitalized Computer Software Net
CapitalizedComputerSoftwareNet
13500000 usd
CY2023Q4 us-gaap Capitalized Computer Software Net
CapitalizedComputerSoftwareNet
11800000 usd
CY2024Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6206786 shares
CY2023Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
11741134 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6654968 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
13028440 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_84C_eus-gaap--ConcentrationRiskCreditRisk_zwlFsTxDAukk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86B_zw0LWhOVIyJ1">Concentrations of Risk</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; 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 0pt 0pt 0; 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 September 30, 2024, we utilized four (4) suppliers for fulfillment services, fifteen (15) suppliers for manufacturing finished goods, eight (8) suppliers for packaging, bottling, and labeling, and eight (8) suppliers for prescription medications. As of December 31, 2023, we utilized three (3) suppliers for fulfillment services, nine (9) suppliers for manufacturing finished goods, seven (7) suppliers for packaging, bottling, and labeling, and five (5) suppliers for prescription medications.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022Q1 LFMD Asset Acquisition Closing
AssetAcquisitionClosing
63000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
3753271 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
3015435 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
2275225 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
3009263 usd
CY2024Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
246000 usd
CY2023Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
246000 usd
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
738000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
245000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
978000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
940000 usd
CY2024Q3 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
113000 usd
CY2024Q3 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
11194487 usd
CY2023Q4 us-gaap Accrued Marketing Costs Current
AccruedMarketingCostsCurrent
5198123 usd
CY2024Q3 us-gaap Accrued Payroll Taxes Current
AccruedPayrollTaxesCurrent
3362633 usd
CY2023Q4 us-gaap Accrued Payroll Taxes Current
AccruedPayrollTaxesCurrent
3003007 usd
CY2024Q3 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
2267447 usd
CY2023Q4 us-gaap Sales And Excise Tax Payable Current
SalesAndExciseTaxPayableCurrent
2501035 usd
CY2024Q3 us-gaap Dividends Payable Current And Noncurrent
DividendsPayableCurrentAndNoncurrent
776563 usd
CY2023Q4 us-gaap Dividends Payable Current And Noncurrent
DividendsPayableCurrentAndNoncurrent
776563 usd
CY2023Q4 LFMD Purchase Price Payable One
PurchasePricePayableOne
641042 usd
CY2024Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
3412044 usd
CY2023Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
1817724 usd
CY2024Q3 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
21013174 usd
CY2023Q4 us-gaap Accrued Liabilities Current
AccruedLiabilitiesCurrent
13937494 usd
CY2024Q3 us-gaap Notes Payable
NotesPayable
0 usd
CY2023Q4 us-gaap Notes Payable
NotesPayable
217000 usd
CY2024Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Rolling Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextRollingTwelveMonths
8400000 usd
CY2024Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Rolling Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInRollingYearTwo
10600000 usd
CY2024Q3 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2024Q3 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.01
CY2024Q3 LFMD Undesignated Preferred Stock
UndesignatedPreferredStock
3385000 shares
CY2024Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-346000 usd
CY2023Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
839000 usd
CY2024Q3 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
36000 usd
CY2023Q3 us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
36000 usd
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
-188000 usd
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
2200000 usd
us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
108000 usd
us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
MinorityInterestDecreaseFromDistributionsToNoncontrollingInterestHolders
108000 usd
LFMD Unamortized Expenses
UnamortizedExpenses
0 usd
CY2024Q3 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
6750256 usd
CY2024Q3 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
403319 usd
CY2024Q3 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
6511425 usd
us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
2700000 usd
us-gaap Operating Lease Right Of Use Asset Amortization Expense
OperatingLeaseRightOfUseAssetAmortizationExpense
1900000 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
215979 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
1227477 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
1344162 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
1236539 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
936992 usd
CY2024Q3 LFMD Lessee Operating Lease Liability Payments Due After Year Four
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFour
6316720 usd
CY2024Q3 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
4360125 usd
CY2024Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
6914744 usd
CY2024Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
289000 usd
CY2023Q3 us-gaap Operating Lease Expense
OperatingLeaseExpense
214000 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
747000 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
643000 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
615281 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
665129 usd
CY2024Q3 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P10Y4M17D
CY2023Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P2Y2M4D
CY2024Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.1097 pure
CY2023Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0717 pure
CY2024Q3 us-gaap Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
P12M
us-gaap Payments For Rent
PaymentsForRent
3000 usd
CY2024Q3 us-gaap Purchase Obligation
PurchaseObligation
1100000 usd
CY2023Q3 us-gaap Increase Decrease In Income Taxes
IncreaseDecreaseInIncomeTaxes
1900000 usd
CY2024Q2 us-gaap Salaries And Wages
SalariesAndWages
240000 usd
CY2024Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
53393157 usd
CY2023Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
38613911 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
148199266 usd
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
107687158 usd
CY2024Q3 LFMD Gross Margin
GrossMargin
0.906 pure
CY2023Q3 LFMD Gross Margin
GrossMargin
0.876 pure
LFMD Gross Margin
GrossMargin
0.901 pure
LFMD Gross Margin
GrossMargin
0.874 pure
CY2024Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-4686112 usd
CY2023Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-4569381 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-17162923 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-12317737 usd
CY2024Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-4686112 usd
CY2023Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-4569381 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-17162923 usd
us-gaap Operating Income Loss
OperatingIncomeLoss
-12317737 usd
CY2024Q3 us-gaap Assets
Assets
72559922 usd
CY2023Q4 us-gaap Assets
Assets
58480709 usd
CY2024Q3 us-gaap Assets
Assets
72559922 usd
CY2023Q4 us-gaap Assets
Assets
58480709 usd
CY2024Q3 ecd Trd Arr Adoption Date
TrdArrAdoptionDate
August 30, 2024
CY2024Q3 ecd Trd Arr Ind Name
TrdArrIndName
Justin Schreiber
CY2024Q3 ecd Trd Arr Ind Title
TrdArrIndTitle
Chief Executive Officer
CY2024Q3 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
true
CY2024Q3 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
true
CY2024Q3 ecd Trd Arr Securities Agg Avail Amt
TrdArrSecuritiesAggAvailAmt
400000 shares

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