LifeMD Files Q2 2024 10-Q Report
Ticker: LFMDP · Form: 10-Q · Filed: Aug 7, 2024 · CIK: 948320
Sentiment: neutral
Topics: 10-Q, earnings, healthcare
Related Tickers: LFMD
TL;DR
LifeMD's Q2 2024 10-Q is in. Check financials.
AI Summary
LifeMD, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported its financial results for the second quarter of 2024, detailing revenues and other financial metrics. The filing also includes information on the company's business operations and legal proceedings.
Why It Matters
This filing provides investors with a detailed look at LifeMD's financial health and operational performance for the second quarter of 2024, influencing investment decisions.
Risk Assessment
Risk Level: medium — 10-Q filings can reveal financial performance, debt levels, and potential legal issues, all of which can impact a company's stock price.
Key Numbers
- 20240630 — Period End Date (The 10-Q covers financial performance up to this date.)
- 20240807 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
Key Players & Entities
- LifeMD, Inc. (company) — Filer of the 10-Q
- 20240630 (date) — End of reporting period
- 20240807 (date) — Filing date
- 236 FIFTH AVENUE (address) — Company's business and mailing address
- NEW YORK (location) — Company's business and mailing city
- CONVERSION LABS, INC. (company) — Former company name
- Immudyne, Inc. (company) — Former company name
FAQ
What is the reporting period for this 10-Q filing?
The reporting period for this 10-Q filing is for the quarter ended June 30, 2024.
When was this 10-Q filed with the SEC?
This 10-Q was filed on August 7, 2024.
What is the company's primary business address?
The company's primary business address is 236 FIFTH AVENUE, SUITE 400, NEW YORK, NY 10001.
Has LifeMD, Inc. operated under any previous names?
Yes, LifeMD, Inc. has operated under the names CONVERSION LABS, INC. and Immudyne, Inc. in the past.
What is the SIC code for LifeMD, Inc.?
The Standard Industrial Classification (SIC) code for LifeMD, Inc. is 8011, which falls under SERVICES-OFFICES & CLINICS OF DOCTORS OF MEDICINE.
Filing Stats: 4,450 words · 18 min read · ~15 pages · Grade level 15 · Accepted 2024-08-07 16:46:00
Key Financial Figures
- $0.0001 — ve Perpetual Preferred Stock, par value $0.0001 per share LFMDP The Nasdaq Global M
- $5 million — the closing date, to maintain at least $5 million of unrestricted cash to be tested at th
Filing Documents
- form10-q.htm (10-Q) — 2078KB
- ex31-1.htm (EX-31.1) — 15KB
- ex31-2.htm (EX-31.2) — 15KB
- ex32-1.htm (EX-32.1) — 8KB
- ex32-2.htm (EX-32.2) — 8KB
- 0001493152-24-030564.txt ( ) — 9924KB
- lfmd-20240630.xsd (EX-101.SCH) — 56KB
- lfmd-20240630_cal.xml (EX-101.CAL) — 58KB
- lfmd-20240630_def.xml (EX-101.DEF) — 335KB
- lfmd-20240630_lab.xml (EX-101.LAB) — 528KB
- lfmd-20240630_pre.xml (EX-101.PRE) — 435KB
- form10-q_htm.xml (XML) — 1812KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION ITEM 1.
Financial Statements (unaudited)
Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Stockholders' (Deficit) Equity 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7 ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 26 ITEM 3.
Quantitative and Qualitative Disclosures about Market Risk
Quantitative and Qualitative Disclosures about Market Risk 35 ITEM 4.
Controls and Procedures
Controls and Procedures 35
OTHER INFORMATION
PART II. OTHER INFORMATION ITEM 1.
Legal Proceedings
Legal Proceedings 38 ITEM 1A.
Risk Factors
Risk Factors 38 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 ITEM 3. Defaults Upon Senior Securities 38 ITEM 4. Mine Safety Disclosures 38 ITEM 5. Other Information 38 ITEM 6. Exhibits 39
SIGNATURES
SIGNATURES 40 2 PART I – FINANCIAL INFORMATION Item 1. Financial Statements LIFEMD, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets Cash $ 35,703,215 $ 33,146,725 Accounts receivable, net 5,667,942 5,277,250 Product deposit 116,134 485,850 Inventory, net 2,060,719 2,759,932 Other current assets 1,521,420 934,510 Total Current Assets 45,069,430 42,604,267 Non-current Assets Equipment, net 1,123,582 476,303 Right of use assets 2,534,731 594,897 Capitalized software, net 12,573,579 11,795,979 Intangible assets, net 2,519,167 3,009,263 Total Non-current Assets 18,751,059 15,876,442 Total Assets $ 63,820,489 $ 58,480,709 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' (DEFICIT) EQUITY Current Liabilities Accounts payable $ 15,051,729 $ 11,084,855 Accrued expenses 14,751,501 13,937,494 Notes payable, net 13,020 327,597 Current operating lease liabilities 337,276 603,180 Current portion of long-term debt 6,333,333 - Deferred revenue 15,161,659 8,828,598 Total Current Liabilities 51,648,518 34,781,724 Long-term Liabilities Long-term debt, net 11,795,281 17,927,727 Noncurrent operating lease liabilities 2,336,194 73,849 Contingent consideration 100,000 131,250 Total Liabilities 65,879,993 52,914,550 Commitments and contingencies (Note 10) - - Mezzanine Equity Preferred Stock, $ 0.0001 par value; 5,000,000 shares authorized Series B Convertible Preferred Stock, $ 0.0001 par value; 5,000 shares authorized, zero shares issued and outstanding, liquidation value, $ 0 per share as of June 30, 2024 and December 31, 2023 - - Stockholders' (Deficit) Equity Series A Preferred Stock, $ 0.0001 par value; 1,610,000 shares authorized, 1,400,000 shares issued and outstanding, liquidation value approximately, $ 25.55 per share as of June 30, 2024 and December 31, 2023 140 140 Common Stock, $ 0
Business
Business and Subsidiary History In June 2018, the Company closed the strategic acquisition of 51 % of WorkSimpli. As a result of various ownership restructurings, the Company's 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 $ 460 thousand upfront cash payment, and two non-contingent milestone payments for a total of $ 3.46 million ($ 1.73 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 $ 507 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 $ 250 thousand to a total of $ 3.67 million; (ii) change the timing of the payment of the purchase price to $ 460 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