LifeMD, Inc. Files Q3 2024 10-Q Report

TL;DR

LifeMD Q3 2024 10-Q filed. Get the latest numbers.

AI Summary

LifeMD, Inc. filed its 10-Q for the period ending September 30, 2024. The filing covers the third quarter and the first nine months of the fiscal year. Key financial data and operational details for LifeMD, Inc. are presented in this report.

Why It Matters

This 10-Q filing provides investors and stakeholders with the latest financial performance and operational updates for LifeMD, Inc. during the third quarter of 2024.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific content can reveal risks or opportunities impacting the company's valuation.

Key Numbers

• Q3 2024 — Reporting Period (Covers the third quarter of the fiscal year.)
• Nine Months Ended September 30, 2024 — Year-to-Date Period (Covers the first nine months of the fiscal year.)

Key Players & Entities

• LifeMD, Inc. (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period
• 2024-11-07 (date) — Date the filing was made
• 236 FIFTH AVENUE, SUITE 400, NEW YORK, NY 10001 (location) — Business and mailing address of LifeMD, Inc.

FAQ

Key Financial Figures

• $0.0001 — ve Perpetual Preferred Stock, par value $0.0001 per share LFMDP The Nasdaq Global M

Filing Documents

• form10-q.htm (10-Q) — 1572KB
• ex10-1.htm (EX-10.1) — 219KB
• ex10-2.htm (EX-10.2) — 10KB
• ex10-3.htm (EX-10.3) — 11KB
• ex10-4.htm (EX-10.4) — 41KB
• ex10-5.htm (EX-10.5) — 258KB
• ex10-6.htm (EX-10.6) — 12KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 18KB
• ex32-1.htm (EX-32.1) — 9KB
• ex32-2.htm (EX-32.2) — 8KB
• 0001493152-24-044032.txt ( ) — 9347KB
• lfmd-20240930.xsd (EX-101.SCH) — 57KB
• lfmd-20240930_cal.xml (EX-101.CAL) — 60KB
• lfmd-20240930_def.xml (EX-101.DEF) — 335KB
• lfmd-20240930_lab.xml (EX-101.LAB) — 543KB
• lfmd-20240930_pre.xml (EX-101.PRE) — 436KB
• form10-q_htm.xml (XML) — 1400KB

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 7 Notes to Condensed Consolidated Financial Statements 8 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 27 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 37 ITEM 4.

Controls and Procedures

Controls and Procedures 37

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 39 ITEM 1A.

Risk Factors

Risk Factors 39 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 ITEM 3. Defaults Upon Senior Securities 39 ITEM 4. Mine Safety Disclosures 39 ITEM 5. Other Information 39 ITEM 6. Exhibits 40

SIGNATURES

SIGNATURES 41 2 PART I – FINANCIAL INFORMATION Item 1. Financial Statements LIFEMD, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets Cash $ 37,587,253 $ 33,146,725 Accounts receivable, net 6,049,501 5,277,250 Product deposit 136,755 485,850 Inventory, net 2,645,443 2,759,932 Other current assets 2,238,005 934,510 Total Current Assets 48,656,957 42,604,267 Non-current Assets Equipment, net 1,420,052 476,303 Right of use assets 6,750,256 594,897 Capitalized software, net 13,457,432 11,795,979 Intangible assets, net 2,275,225 3,009,263 Total Non-current Assets 23,902,965 15,876,442 Total Assets $ 72,559,922 $ 58,480,709 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' (DEFICIT) EQUITY Current Liabilities Accounts payable $ 15,867,469 $ 11,084,855 Accrued expenses 21,013,174 13,937,494 Notes payable, net - 327,597 Current operating lease liabilities 403,319 603,180 Current portion of long-term debt 5,277,778 - Deferred revenue 16,390,541 8,828,598 Total Current Liabilities 58,952,281 34,781,724 Long-term Liabilities Long-term debt, net 12,951,280 17,927,727 Noncurrent operating lease liabilities 6,511,425 73,849 Contingent consideration 100,000 131,250 Total Liabilities 78,514,986 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 September 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 September 30, 2024 and December 31, 2023 140 140 Common S

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

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View this 10-Q filing on SEC EDGAR