Record second quarter 2022 consolidated revenue of $30.5 million up 37% from the same year ago period.
Adjusted EPS of $(0.22), 52% improvement versus the prior year, 12% sequentially.
Remain on track to deliver consolidated Adjusted EBITDA profitability by fourth quarter 2022.
Consolidated Adjusted EBITDA loss was reduced to below $1 million in the month of June.
LifeMD published a second quarter Supplemental Investor Highlights Presentation, available on the Company's Investor Relations site, ir.lifemd.com or via direct download at https://ir.lifemd.com/q2.

NEW YORK, Aug. 11, 2022 (GLOBE NEWSWIRE) -- LifeMD, Inc. (NASDAQ:LFMD), a leading direct-to-patient telehealth company, reported results for the second quarter ended June 30, 2022. All figure comparisons are to the same year-ago quarter unless otherwise noted. Management will host a conference call today, August 11, 2022, at 4:30 p.m. Eastern time to discuss the results.

Q2 2022 Financial Highlights

Record revenue of $30.5 million, up 37%
Record Gross Margins of 85%, up from 82% in the same year-ago period. Gross profit totaled $25.8 million
93% of revenue generated by subscriptions, 71% of active subscribers on multi-month subscription terms up from 61% in the same year-ago period
$11.7 million of cash as of June 30, 2022 and no debt
Adjusted EBITDA loss reduced to below $1 million in the month of June with continued improvements expected
Adjusted EPS $(0.22), up 52% and a 12% sequential improvement versus the prior quarter (see definition of this non-GAAP financial measure and reconciliation to GAAP, below)

Q2 and Recent Operational Highlights

Continued leverage of Selling and Marketing expenses, with second quarter expenses as a percentage of revenue reducing to 72%, a 300-basis point improvement versus the prior quarter and a 2,800-basis point improvement versus the same year-ago period.
Telehealth active subscribers increased 53% to approximately 168,000.
Increased blended Over-the-Counter (OTC) and Prescription (Rx) 1-year Lifetime Value to Customer Acquisition Costs (LTV-CAC) by 8% year-over-year.
Made significant progress in the WorkSimpli divestiture process with strong buyer interest. The Company expects to close a transaction by fourth quarter 2022.
Continued diversification of our core telehealth business with the launch of topical pain management, sleep, OTC skincare and new Virtual Primary Care (VPC) offerings. VPC experienced a 1,500% increase in patient subscribers versus the prior quarter. In the second quarter 2022, non-erectile dysfunction offerings combined for over 38% of new patient acquisitions, up from 22% in the year-ago period.

Key Performance Metrics
($ in 000s)		Three Months Ended June 30					Y-o-Y
Key Performance Metrics		2022			2021		% Growth
Revenue
Telehealth	$	22,268		$	15,799		41	%
WorkSimpli	$	8,191		$	6,514		26	%
Total Revenue	$	30,459		$	22,313		37	%

Subscription Revenue as % of Total		93	%		93	%	0	%

Telehealth Volume
Total Telehealth Orders		255,176			195,755		30	%
Total Active Subscribers		168,024			109,737		53	%

WorkSimpli
Active Subscribers		127,304			99,576		28	%

Management Commentary

"During the second quarter 2022, LifeMD made significant progress against several of our most important strategic initiatives. These include driving our Adjusted EBITDA loss under $1 million in the month of June, beginning to scale Virtual Primary Care, generating a substantial increase in new patient volumes from recently launched telehealth indications and driving an 8% year-over-year improvement in our first year LTV-CAC ratio. In addition, during the quarter we made substantial progress on the divestiture of our non-core WorkSimpli business and remain confident that we can execute a transaction by year end. We highlighted many of these achievements and others in our second quarter Supplemental Investor Highlights Presentation made available after market close on the LifeMD Investor Relations site," said Justin Schreiber, Chairman & CEO of LifeMD. "While we expect these achievements to position us for long-term profitable growth and shareholder value creation, we anticipate moderated sequential growth over the next two quarters in our core telehealth business as we transition more of our revenue to longer-term subscriptions with stronger unit economics and continue to scale our newly launched virtual primary care business. Importantly, executing upon these strategic initiatives is helping LifeMD transition from a rapidly scaling direct-to-patient telehealth products provider to a rapidly scaling, profitable and differentiated telehealth services company."

LifeMD CFO Marc Benathen, commented: "As noted in our second quarter Supplemental Investor Highlights Presentation available on our Investor Relations site, most of our Q2 loss was concentrated within the month of April. During the quarter, we made significant progress toward maximizing our unit economics through improved returns on our marketing investment and successfully reduced our Adjusted EBITDA loss to less than $1 million in June. During the quarter, we also made considerable progress in the process to divest our non-core subsidiary, WorkSimpli, and remain confident that we will be able close a transaction before the end of this year. Given our significant focus on continuing to diversify our telehealth revenue by investing in and growing newly launched indications, scaling Virtual Primary Care and driving longer-term subscriptions with more spaced-out re-billings, we expect sequential revenue growth for the next two quarters in our telehealth business to be more moderated. We expect to emerge from this period well-positioned to drive more accelerated top and bottom-line growth as a leading, differentiated direct-to-patient telehealth company. As such, while we reiterate our previous Adjusted EBITDA profitability guidance, we are revising our consolidated Revenue guidance to $122 to $128 million for 2022."

Q2 2022 Financial Summary

Revenue for the quarter ended June 30, 2022 increased 37% to $30.5 million from $22.3 million in 2021. The increase in revenues was attributable to a 41% increase in telehealth revenue and a 26% increase in WorkSimpli revenue versus the year-ago period. Following the execution of several key growth initiatives in the preceding quarters, WorkSimpli revenue increased 27% sequentially to a record $8.2 million.
Gross profit increased by 42% to $25.8 million, compared to $18.2 million in the prior year. Gross margins reached a record 85% for the second quarter ended June 30, 2022.
Net loss attributable to common stockholders for 2022 was $13.8 million or $(0.45) per share, as compared to a net loss attributable to common stockholders of $16.8 million or $(0.64) per share in the prior year.
Adjusted EBITDA, a non-GAAP financial measure, totaled a loss of $6.9 million, an improvement of 43% versus the same year-ago period. (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).
Adjusted EPS, a non-GAAP financial measure, totaled a loss of $(0.22) per share, compared to an adjusted EPS loss of $(0.46) in the same year-ago period. Adjusted EPS improved 12% sequentially versus the prior quarter (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).
Cash totaled $11.7 million as of June 30, 2022.

Financial Guidance

For the Third Quarter 2022, the Company expects:

Consolidated Revenue to total between $32 million and $33 million
Consolidated Adjusted EBITDA between $(1.5) million and $(2.5) million

For the Full Year 2022, the Company expects:

Consolidated Revenue to total between $122 million and $128 million
Consolidated Adjusted EBITDA between $(14) million and $(20) million

The Company remains on track to achieve consolidated Adjusted EBITDA profitability by the fourth quarter of 2022.

Conference Call

LifeMD's management will host a conference call today, August 11, 2022 at 4:30 pm Eastern Time to discuss the company's financial results and outlook, followed by a question-and-answer period. Details for the call are as follows:

Toll-free dial-in number:	1-800-263-0877
International dial-in number:	1-720-543-0197
Conference ID:	9480029
Webcast:	https://viavid.webcasts.com/starthere.jsp?ei=1560537&tp_key=0592b1380e

The conference call will be webcast live and available for replay via a link provided in the Investors section of the company's website at lifemd.com. Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization.

Listeners are encouraged to review the Company's periodic reports filed with the U.S. Securities and Exchange Commission, including the discussion of risk factors, historical results of operations and financial condition as provided in these reports.

About LifeMD

LifeMD is a 50-state direct-to-patient telehealth company with a portfolio of brands that offer virtual primary care, diagnostics, and specialized treatment for men's and women's health, allergy & asthma, and dermatological conditions. By leveraging its proprietary technology platform, 50-state affiliated medical group, and nationwide mail-order pharmacy network, LifeMD is increasing access to top-notch healthcare that is affordable to anyone. To learn more, go to LifeMD.com.

Cautionary Note Regarding Forward Looking Statements

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended; Section 21E of the Securities Exchange Act of 1934, as amended; and the safe harbor provision of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release may be identified by the use of words such as: "believe," "expect," "anticipate," "project," "should," "plan," "will," "may," "intend," "estimate," predict," "continue," and "potential," or, in each case, their negative or other variations or comparable terminology referencing future periods. Examples of forward-looking statements include, but are not limited to, statements regarding our financial outlook and guidance, short and long-term business performance and operations, future revenues and earnings, regulatory developments, legal events or outcomes, ability to comply with complex and evolving regulations, market conditions and trends, new or expanded products and offerings, growth strategies, underlying assumptions, and the effects of any of the foregoing on our future results of operations or financial condition.

Forward-looking statements are not historical facts and are not assurances of future performance. Rather, these statements are based on our current expectations, beliefs, and assumptions regarding future plans and strategies, projections, anticipated and unanticipated events and trends, the economy, and other future conditions, including the impact of any of the aforementioned on our future business. As forward-looking statements relate to the future, they are subject to inherent risk, uncertainties, and changes in circumstances and assumptions that are difficult to predict, including some of which are out of our control. Consequently, our actual results, performance, and financial condition may differ materially from those indicated in the forward-looking statements. These risks and uncertainties include, but are not limited to, "Risk Factors" identified in our filings with the Securities and Exchange Commission, including, but not limited to, our most recently filed Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and any amendments thereto. Even if our actual results, performance, or financial condition are consistent with forward-looking statements contained in such filings, they may not be indicative of our actual results, performance, or financial condition in subsequent periods.

Any forward-looking statement made in the news release is based on information currently available to us as of the date on which this release is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable law or regulation.

Company Contact

LifeMD, Inc.

Marc Benathen, CFO

marc@lifemd.com

Tables to Follow

LIFEMD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
		June 30, 2022			December 31, 2021
ASSETS

Current Assets
Cash	$	11,717,302		$	41,328,039
Accounts receivable, net		2,513,627			980,055
Product deposit		440,841			203,556
Inventory, net		2,965,242			1,616,600
Other current assets		873,205			793,190
Total Current Assets		18,510,217			44,921,440

Non-current Assets
Equipment, net		555,777			233,805
Right of use asset, net		1,462,086			1,752,448
Capitalized software, net		6,542,691			2,995,789
Goodwill and intangible assets, net		10,898,710			19,761
Total Non-current Assets		19,459,264			5,001,803

Total Assets	$	37,969,481		$	49,923,243

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY

Current Liabilities
Accounts payable	$	11,938,937		$	9,059,214
Accrued expenses		11,233,309			11,595,605
Notes payable, net		-			63,400
Current operating lease liabilities		704,283			607,490
Deferred revenue		1,992,502			1,499,880
Total Current Liabilities		25,869,031			22,825,589

Long-term Liabilities
Noncurrent operating lease liabilities		871,300			1,178,544
Contingent consideration		2,934,750			100,000
Purchase price payable		1,480,008			-
Total Liabilities		31,155,089			24,104,133

Commitments and Contingencies
Mezzanine Equity
Preferred Stock, $0.0001 par value; 5,000,000 shares authorized
Series B Preferred Stock, $0.0001 par value; 5,000 shares authorized, 3,500 and 3,500 shares issued and outstanding, liquidation value approximately, $1,239 and $1,175 per share as of June 30, 2022 and December 31, 2021, respectively		4,336,452			4,110,822

Stockholders' Equity
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares authorized, 1,400,000 shares issued and outstanding, liquidation value approximately $26.72 and $25.62 per share as of June 30, 2022 and December 31, 2021, respectively		140			140
Common Stock, $0.01 par value; 100,000,000 shares authorized, 30,989,869 and 30,704,434 shares issued, 30,886,829 and 30,601,394 outstanding as of June 30, 2022 and December 31, 2021, respectively		309,899			307,045
Additional paid-in capital		173,157,467			164,517,634
Accumulated deficit		(169,792,847	)		(141,921,085	)
Treasury stock, 103,040 and 103,040 shares, at cost		(163,701	)		(163,701	)
Total LifeMD, Inc. Stockholders' Equity		3,510,958			22,740,033
Non-controlling interest		(1,033,018	)		(1,031,745	)
Total Stockholders' Equity		2,477,940			21,708,288
Total Liabilities, Mezzanine Equity and Stockholders' Equity	$	37,969,481		$	49,923,243

LIFEMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenues
Telehealth revenue, net	$	22,267,963		$	15,799,610		$	44,866,024		$	29,082,925
WorkSimpli revenue, net		8,190,535			6,514,001			14,635,311			11,428,798
Total revenues, net		30,458,498			22,313,611			59,501,335			40,511,723
Cost of revenues
Cost of telehealth revenue		4,453,126			4,021,005			9,539,194			7,144,030
Cost of WorkSimpli revenue		182,185			99,215			344,292			187,247
Total cost of revenues		4,635,311			4,120,220			9,883,486			7,331,277

Gross profit		25,823,187			18,193,391			49,617,849			33,180,446

Expenses
Selling and marketing expenses		21,817,966			22,392,179			43,727,791			41,078,880
General and administrative expenses		13,250,669			10,523,071			25,553,147			17,498,642
Other operating expenses		1,951,244			809,066			3,278,978			1,445,853
Customer service expenses		1,006,363			473,235			1,939,670			768,512
Development costs		701,070			122,603			1,129,403			433,659
Goodwill impairment charge		2,735,000			-			2,735,000			-
Total expenses		41,462,312			34,320,154			78,363,989			61,225,546

Operating loss		(15,639,125	)		(16,126,763	)		(28,746,140	)		(28,045,100	)

Interest expense, net		(132,236	)		(901,910	)		(300,170	)		(1,041,373	)
Change in fair value of contingent consideration		2,735,000			-			2,735,000			-
Gain on debt forgiveness		63,400			-			63,400			184,914
Net loss		(12,972,961	)		(17,028,673	)		(26,247,910	)		(28,901,559	)

Net income (loss) attributable to noncontrolling interests		46,001			(197,973	)		70,727			(468,476	)

Net loss attributable to LifeMD, Inc.		(13,018,962	)		(16,830,700	)		(26,318,637	)		(28,433,083	)

Preferred stock dividends		(776,562	)		-			(1,553,125	)		-

Net loss attributable to LifeMD, Inc. common stockholders	$	(13,795,524	)	$	(16,830,700	)	$	(27,871,762	)	$	(28,433,083	)

Basic loss per share attributable to LifeMD, Inc. common stockholders	$	(0.45	)	$	(0.64	)	$	(0.90	)	$	(1.12	)
Diluted loss per share attributable to LifeMD, Inc. common stockholders	$	(0.45	)	$	(0.64	)	$	(0.90	)	$	(1.12	)

Weighted average number of common shares outstanding:
Basic		30,907,505			26,289,678			30,880,417			25,381,530
Diluted		30,907,505			26,289,678			30,880,417			25,381,530

LIFEMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(12,972,961	)	$	(17,028,673	)	$	(26,247,910	)	$	(28,901,559	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount		-			522,559			-			522,559
Amortization of capitalized software		592,214			39,413			976,026			63,864
Amortization of intangibles		226,893			255,937			341,287			339,840
Accretion of consideration payable		135,368						135,368
Depreciation of fixed assets		40,770			-			73,247			-
Gain on forgiveness of debt		(63,400	)		-			(63,400	)		(184,914	)
Change in fair value of contingent consideration		(2,735,000	)		-			(2,735,000	)		-
Goodwill impairment charge		2,735,000			-			2,735,000			-
Operating lease payments		171,838			24,589			290,362			49,178
Stock compensation expense		4,041,006			2,547,300			8,513,787			4,873,075
		-			-
Changes in Assets and Liabilities		-			-
Accounts receivable		(717,125	)		(381,152	)		(1,533,572	)		(1,084,174	)
Product deposit		174,452			(91,521	)		(237,285	)		(574,999	)
Inventory		(1,725,208	)		60,264			(1,341,474	)		(349,859	)
Other current assets		(30,216	)		(342,432	)		(80,015	)		(292,357	)
Change in operating lease liability		(164,950	)		(22,731	)		(210,451	)		(44,653	)
Deferred revenue		203,947			42,629			492,622			465,058
Accounts payable		376,345			1,131,477			2,853,811			1,256,110
Accrued expenses		(387,938	)		2,588,811			(2,152,511	)		4,022,422
Net cash used in operating activities		(10,098,965	)		(10,653,530	)		(18,190,108	)		(19,840,409	)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for capitalized software costs		(2,424,785	)		(903,487	)		(4,522,928	)		(952,347	)
Purchase of equipment		(90,180	)		(18,116	)		(357,331	)		(18,116	)
Purchase of intangible assets		-			-			(4,000,500	)		-
Acquisition of business, net of cash acquired		-			-			(1,012,395	)		-
Net cash used in investing activities		(2,514,965	)		(921,603	)		(9,893,154	)		(970,463	)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from private placement offering, net		-			-			-			13,495,270
Proceeds from issuance of debt instruments		-			15,000,000			-			15,000,000
Cash proceeds from exercise of options		90,400			742,750			90,400			766,750
Cash proceeds from exercise of warrants		-			311,999			38,500			311,999
Preferred stock dividends		(776,562	)		-			(1,553,125	)		-
Proceeds from notes payable		-			363,965			-			963,965
Repayment of notes payable		-			(600,000	)		-			(1,119,950	)
Contingent consideration payment for ResumeBuild		(31,250	)					(31,250	)
Purchase of membership interest of WorkSimpli		-			(200,000	)		-			(300,000	)
Distributions to non-controlling interest		(36,000	)		(36,000	)		(72,000	)		(72,000	)
Net cash (used in) provided by financing activities		(753,412	)		15,582,714			(1,527,475	)		29,046,034

Net (decrease) increase in cash		(13,367,342	)		(4,007,581	)		(29,610,737	)		8,235,162

Cash at beginning of period		25,084,644			13,406,656			41,328,039			9,179,075

Cash at end of period	$	11,717,302		$	17,414,237		$	11,717,302		$	17,414,237

Cash paid for interest
Cash paid during the period for interest	$	-		$	125,912		$	-		$	143,183

Non-cash investing and financing activities:
Cashless exercise of warrants	$	-		$	-		$	-		$	-
Cashless exercise of options	$	-		$	-		$	255		$	-
Consideration payable for Cleared acquisition	$	-		$	-		$	8,079,367		$	-
Consideration payable for ResumeBuild acquisition	$	-		$	-		$	500,000		$	-
Warrants issued for debt instruments	$	-		$	6,270,710		$	-		$	6,270,710
Principal of Paycheck Protection Program loans forgiven	$	63,400		$	-		$	63,400		$	184,914
Additional purchase of membership interest in WorkSimpli issued in performance options	$	-		$	-		$	-		$	144,002

About the Use of Non-GAAP Financial Measures:

To supplement our financial information presented in accordance with GAAP, we use Adjusted EBITDA and Adjusted EPS as non-GAAP financial measures to clarify and enhance an understanding of past performance. We believe that the presentation of these financial measures enhances an investor's understanding of our financial performance. We further believe that these financial measures are useful financial metrics to assess our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. We use certain financial measures for business planning purposes and in measuring our performance relative to that of our competitors.

Adjusted EBITDA is defined as income (loss) attributable to common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, inventory valuation, litigation costs, gain on debt forgiveness, preferred stock dividends, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of Adjusted EBITDA to Net loss attributable to common shareholders, its most directly comparable GAAP financial measure.

Adjusted EPS is defined as the diluted net loss attributable to LifeMD, Inc common shareholders before interest, taxes, depreciation, amortization, accretion, financing transaction expense, inventory valuation, litigation costs, preferred stock dividends, acquisition costs, severance expenses and stock-based compensation expense. We have provided below a reconciliation of Adjusted EPS to Diluted loss per share attributable to LifeMD, Inc common shareholders, its most directly comparable GAAP financial measure.

We believe the above financial measures are commonly used by investors to evaluate our performance and that of our competitors. However, our use of the terms Adjusted EBITDA and Adjusted EPS may vary from that of others in our industry. Adjusted EBITDA and Adjusted EPS should not be considered as an alternative to net loss before taxes, net loss per share, operating loss or any other performance measures derived in accordance with GAAP as measures of performance.

Reconciliation of GAAP Net Loss to Adjusted EBITDA
(in whole numbers, unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Net loss attributable to common shareholders	$	(13,795,524	)	$	(16,830,700	)	$	(27,871,762	)	$	(28,433,083	)

Interest expense (excluding debt discount and acceleration of debt)		18,798			798,472			74,540			815,743
Depreciation, amortization and accretion expense		995,245			-			1,525,928			403,704
Amortization of debt discount		-			-			-			522,559
Gain on debt forgiveness		(63,400	)		-			(63,400	)		(184,914	)
Financing transactions expense		-			946,411			152,015			1,072,390
Litigation costs		655,494			215,125			704,359			215,125
Inventory valuation adjustment		13,708			-			230,661			-
Severance costs		77,241			-			179,090			-
Acquisitions expenses		240,153			-			265,153			-
Accrued interest on Series B Convertible Preferred Stock		113,438			103,438			225,630			225,630
Preferred dividends		776,562			-			1,553,125			-
Stock-based compensation expense		4,041,006			2,547,300			8,513,787			4,873,075

Adjusted EBITDA	$	(6,927,279	)	$	(12,219,954	)	$	(14,510,874	)	$	(20,489,771	)

Reconciliation of GAAP Diluted Loss per Share Attributable to Common Shareholders to Adjusted EPS
		Three Months Ended June 30,						Six Months Ended June 30,
		2022			2021			2022			2021
Diluted loss per share attributable to LifeMD, Inc. common shareholders	$	(0.45	)	$	(0.64	)	$	(0.91	)	$	(1.12	)

Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS
Interest expense (excluding debt discount and acceleration of debt)		-			0.03			-			0.03
Depreciation, amortization and accretion expense		0.03			-			0.05			0.02
Amortization of debt discount		-			-			-			0.02
Gain on debt forgiveness		-			-			-			(0.01	)
Financing transactions expense		-			0.04			-			0.04
Litigation costs		0.02			0.01			0.02			0.01
Inventory valuation adjustment		-			-			0.01			-
Severance costs		-			-			0.01			-
Acquisitions expenses		0.01			-			0.01			-
Accrued interest on Series B Convertible Preferred Stock		0.01			-			0.01			0.01
Preferred dividends		0.03			-			0.05			-
Stock-based compensation expense		0.13			0.10			0.28			0.19

Adjusted EPS	$	(0.22	)	$	(0.46	)	$	(0.47	)	$	(0.81	)

LifeMD, Inc. Reports Second Quarter 2022 Results