NEW YORK, Jan. 18, 2024 (GLOBE NEWSWIRE) -- LifeMD, Inc. (NASDAQ:LFMD), a leading provider of virtual primary care, today announced its participation in the Maxim Group 2024 Healthcare IT Virtual Conference, being held January 24-25, 2024. Management will participate in a virtual fireside chat on Wednesday, January 24th at 10:00 a.m. Eastern time and will also hold one-on-one meetings throughout the conference. Investors can register for the conference here. About LifeMD, Inc.LifeMD is a leading provider of ...

NEW YORK, Dec. 26, 2023 (GLOBE NEWSWIRE) -- LifeMD, Inc.™ (NASDAQ:LFMD), a leading provider of virtual primary care services, today announced that its Board of Directors has authorized a cash dividend to holders of the Company's 8.875% Series A Cumulative Perpetual Preferred Stock (NASDAQ:LFMDP) equal to $0.5546875 per share. The preferred dividend will be paid on January 15, 2024, to holders of record at the close of business on January 5, 2024. About LifeMD, Inc. LifeMD is a leading provider of virtual pr ...

Financial Data and Key Metrics Changes - LifeMD reported record third quarter performance with consolidated net revenues of $38.6 million, a 23% increase year-over-year and a 7% increase sequentially [17][18] - Consolidated adjusted EBITDA grew to $2.8 million, compared to an adjusted EBITDA loss of $806,000 in the same quarter last year [24] - The company ended the quarter with over $15 million in cash and achieved positive operating cash flow for the second consecutive quarter [17][25] Business Line Data and Key Metrics Changes - The telehealth revenues grew 14% year-over-year and 9% sequentially, with weight management business revenues quadrupling compared to the prior quarter [18][19] - Active telehealth subscribers increased by 22% to approximately 207,000, while WorkSimpli active subscribers grew by 14% to over 170,000 [19] - The gross margin for the third quarter was a record 88%, up 300 basis points from the prior year [20] Market Data and Key Metrics Changes - The weight management program attracted over 16,000 patient subscribers, representing more than $24 million of annual recurring revenue [7][39] - The company anticipates significant growth in brand recognition and insurance coverage for GLP-1 medications, which are expected to drive further growth [9][12] Company Strategy and Development Direction - LifeMD is focused on four major strategic initiatives: accelerating weight management program growth, expanding B2B enterprise programs, enrolling in commercial insurance plans, and enhancing lifestyle healthcare business [7][10][12][13] - The company plans to introduce new complementary products in 2024, including those for hormone replacement therapy and cardiovascular health [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining momentum and accelerating growth into 2024, with expectations for a record-setting year [7][29] - The company is optimistic about the potential for downward pressure on GLP-1 medication prices and is working on partnerships to enhance patient access [56][58] Other Important Information - LifeMD is in the process of onboarding additional healthcare providers to support growth in its services [46][79] - The company is evaluating options for its WorkSimpli business, with expectations for a substantial exit that would benefit shareholders [86] Q&A Session Summary Question: What are your expectations for life count heading into next year and retention rates? - Management indicated that they currently charge around $100 a month, with initial retention falling off by 25% to 30% within the first 30 days, but strong retention of 80% to 90% thereafter [35][40] Question: Can you discuss pricing for various products and potential margin benefits from upcoming patent expirations? - Management noted that they are optimistic about pricing dynamics and potential partnerships with major diet companies to enhance offerings [41][59] Question: What is the status of clinical recruitment and staff allocation between weight management and primary care? - Management is onboarding additional providers and is confident in recruiting high-quality staff to support growth [46][79] Question: How do you expect weight management revenue to grow in the future? - Management anticipates significant growth in weight management revenue, with expectations for more than 100% sequential growth in the next quarter [85] Question: What is the outlook for commercial insurance programs? - Management expects to contract with major plans in all 10 states by the end of the year, with broader coverage anticipated in Q1 of the following year [74]

Rapid growth in profitability after achieving adjusted EBITDA profit in Q4 '22 Annual consolidated adjusted EBITDA ($ millions) $10-$11M 2022A $(15)M ($38)M 2023E 2021A Note: Consolidated adjusted EBITDA includes Telehealth and WorkSimpli results. 16 Rapidly expanding gross margins and increasing leverage on marketing spend driving continued growth in profitability 82% 83% 84% 85% 86% 87% 88% 89% 90% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 20223 Q3 2023 Net Revenue ($ Millions) 72% 55% 62% 50% 54% 51% 0% 25% 50% ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements for September 30, 2023, present increased assets and cash, a net loss, and continued going concern uncertainty [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets reached **$40.7 million**, liabilities **$51.8 million**, and stockholders' deficit improved to **$(11.1) million** Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | Sep 30, 2023 (Unaudited USD) | Dec 31, 2022 (USD) | | :--- | :--- | :--- | | **Assets** | | | | Cash | $15,288,330 | $3,958,957 | | Total Current Assets | $24,886,286 | $11,311,357 | | Total Assets | $40,691,024 | $25,665,853 | | **Liabilities & Stockholders' Deficit** | | | | Total Current Liabilities | $32,521,927 | $31,374,151 | | Long-term debt, net | $18,827,283 | - | | Total Liabilities | $51,775,281 | $32,971,356 | | Total Stockholders' Deficit | $(11,084,257) | $(11,871,325) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2023 total revenues grew **23%** to **$38.6 million**, narrowing operating loss to **$(4.6) million** and net loss to **$(6.9) million** Statement of Operations Summary (Three Months Ended Sep 30) | Metric | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Total revenues, net | $38,613,911 | $31,412,469 | | Gross profit | $33,832,405 | $26,695,627 | | Operating loss | $(4,569,381) | $(7,065,701) | | Net loss attributable to LifeMD, Inc. common stockholders | $(6,898,998) | $(8,058,236) | | Basic and Diluted loss per share | $(0.20) | $(0.26) | Statement of Operations Summary (Nine Months Ended Sep 30) | Metric | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Total revenues, net | $107,687,158 | $90,913,804 | | Gross profit | $94,142,253 | $76,313,476 | | Operating loss | $(12,317,737) | $(33,076,840) | | Net loss attributable to LifeMD, Inc. common stockholders | $(19,193,579) | $(35,929,997) | | Basic and Diluted loss per share | $(0.58) | $(1.17) | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20(Deficit)) Stockholders' deficit improved to **$(11.1) million** by September 30, 2023, primarily due to stock compensation and issuances, despite ongoing net losses - The accumulated deficit increased to **$(209.8) million** as of September 30, 2023, from **$(190.6) million** at the start of the year, reflecting ongoing net losses[18](index=18&type=chunk)[19](index=19&type=chunk) - Key equity activities during the first nine months of 2023 included stock compensation expense of **$8.8 million**, issuance of stock for noncontingent consideration payments, conversion of Series B Preferred Stock, and sales under the ATM agreement[18](index=18&type=chunk)[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations turned positive at **$3.1 million** for the nine months ended September 30, 2023, with **$14.7 million** from financing, significantly increasing cash Cash Flow Summary (Nine Months Ended Sep 30) | Cash Flow Activity | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $3,106,602 | $(20,966,110) | | Net cash used in investing activities | $(6,516,645) | $(12,134,718) | | Net cash provided by (used in) financing activities | $14,739,416 | $(2,390,388) | | **Net increase (decrease) in cash** | **$11,329,373** | **$(35,491,216)** | | **Cash at end of period** | **$15,288,330** | **$5,836,823** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's telehealth model, going concern doubts, acquisitions, a new **$40 million** credit facility, and stock-based compensation - The company is a direct-to-patient telehealth company offering virtual care, prescriptions, and OTC products through brands like ShapiroMD, RexMD, and NavaMD[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - Management has determined that conditions raise substantial doubt about the Company's ability to continue as a going concern, citing an accumulated deficit of approximately **$209.8 million** and significant historical losses[37](index=37&type=chunk)[38](index=38&type=chunk) - In March 2023, the company secured a credit facility of up to **$40 million** from Avenue Capital, using initial proceeds to repay other debt and for corporate purposes, with **$20 million** drawn as of September 2023[36](index=36&type=chunk)[100](index=100&type=chunk) - The company operates through two segments: Telehealth and WorkSimpli; for Q3 2023, Telehealth generated **$24.3 million** in revenue with an operating loss of **$(7.7) million**, while WorkSimpli generated **$14.3 million** in revenue with an operating income of **$3.1 million**[155](index=155&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 revenue growth to **$38.6 million** and narrowed operating loss, reiterating going concern doubts and financing dependence [Business Overview and Strategy](index=30&type=section&id=Business%20Overview%20and%20Strategy) LifeMD is a direct-to-patient telehealth company with a **73.32%** stake in WorkSimpli, focused on building a diverse portfolio to meet patient demand - The company's platform integrates EMR, CRM, lab testing, digital prescriptions, and pharmacy fulfillment to manage patient care across various conditions[168](index=168&type=chunk) - LifeMD has served approximately **803,000** customers and patients to date, with recurring subscriptions accounting for about **93%** of total revenue[170](index=170&type=chunk)[172](index=172&type=chunk) - The company's majority-owned subsidiary, WorkSimpli, has seen **65%** year-over-year revenue growth and has **100%** recurring revenue[170](index=170&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q3 2023 total revenue grew **23%** to **$38.6 million**, gross margin expanded to **88%**, and operating loss narrowed to **$(4.6) million** Comparison of Three Months Ended September 30, 2023 and 2022 | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue, net | $38.6M | $31.4M | +23% | | Gross Profit | $33.8M | $26.7M | +27% | | Operating Loss | $(4.6)M | $(7.1)M | -35% | | Net Loss Attributable to Common Shareholders | $(6.9)M | $(8.1)M | -15% | - The increase in revenue was driven by a **42%** rise in WorkSimpli revenue and a **14%** increase in Telehealth revenue, attributed to higher demand, marketing expansion, and for Telehealth, a decrease in refunds and rebates[185](index=185&type=chunk) - Operating expenses increased by **$4.6 million** (**14%**), mainly due to a **$2.6 million** rise in selling and marketing expenses to support sales growth[188](index=188&type=chunk)[189](index=189&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity remains challenging with **$12.9 million** cash, a **$40 million** credit facility, and a **$58.6 million** ATM, with operations dependent on sales and financing - The company has an accumulated deficit of **$209.8 million** and has historically funded operations through equity and debt financing[202](index=202&type=chunk) - A new convertible senior secured credit facility with Avenue provides up to **$40 million**, with **$20 million** committed and drawn as of September 26, 2023[203](index=203&type=chunk) - The company has an active ATM Sales Agreement and is no longer subject to 'baby shelf limitations', with **$58.6 million** available for issuance as of Sep 30, 2023; an additional **$5.3 million** was raised via the ATM in October and November 2023[208](index=208&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, LifeMD is not required to provide the information for this item - The company is exempt from this disclosure requirement due to its status as a smaller reporting company[224](index=224&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective as of September 30, 2023, due to material weaknesses in internal control over financial reporting, with a remediation plan underway - Disclosure controls and procedures were deemed ineffective as of the end of the reporting period[226](index=226&type=chunk) - Material weaknesses identified include inadequate segregation of duties, weak revenue recognition controls, insufficient written accounting policies, and inadequate IT general controls (security, user access, change management)[227](index=227&type=chunk) - A remediation plan is underway, which includes formalizing procedures, implementing new controls, and addressing gaps in IT general controls[227](index=227&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=42&type=section&id=ITEM%201.%20Legal%20Proceedings) The company settled several legal matters, including lawsuits with Harborside Advisors and William Blair, with settlement costs reflected in financial results - The company settled two related lawsuits, Harborside Advisors LLC v. LifeMD, Inc. and Specialty Medical Drugstore, LLC v. LifeMD, Inc., through mediation in September 2022, involving issuing **400,000** shares of common stock in 2022 and an additional **100,000** shares on July 10, 2023[148](index=148&type=chunk)[149](index=149&type=chunk) - A breach of contract lawsuit, William Blair LLC v. LifeMD, Inc., was settled in June 2023 following mediation[152](index=152&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 - The company directs investors to review the risk factors detailed in its 2022 Annual Report on Form 10-K, stating there have been no material changes since its filing[231](index=231&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of 2023, the company issued unregistered securities, including common stock for services, legal settlements, non-contingent acquisition payments, and Series B Preferred Stock conversion, all in reliance on Securities Act registration exemptions - Issued **137,500** shares of common stock for services to employees and consultants[232](index=232&type=chunk) - Issued **100,000** shares of common stock for a legal settlement[233](index=233&type=chunk) - Issued **1,560,864** shares of common stock upon the conversion of Series B Preferred Stock by PA001 Holdings[235](index=235&type=chunk) [Defaults Upon Senior Securities](index=42&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - The company reported no defaults upon its senior securities during the period[237](index=237&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[238](index=238&type=chunk) [Other Information](index=43&type=section&id=ITEM%205.%20Other%20Information) The company reported no other information for this item - The company reported no other information for this item[239](index=239&type=chunk) [Exhibits](index=43&type=section&id=ITEM%206.%20Exhibits) The report lists several exhibits filed with the Form 10-Q, including amendments to credit and employment agreements, CEO and CFO certifications, and XBRL data files - Key exhibits filed include the First Amendment to the Credit Agreement with Avenue, amendments to executive employment agreements, and required certifications by the CEO and CFO[241](index=241&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _________ to _________ Commission file number: 001-39785 LIFEMD, INC. (Exact name of registrant as specified in its charter) | Delaware | 76-0238453 | | --- | --- | | (St ...

LifeMD, Inc. (NASDAQ:LFMD) Q1 2023 Earnings Conference Call May 12, 2023 8:30 AM ET Company Participants Justin Schreiber - Chairman and Chief Executive Officer Marc Benathen - Chief Financial Officer Conference Call Participants David Larsen - BTIG, LLC Operator Good morning. Thank you for joining us today to discuss the results for LifeMD's First Quarter ended March 31, 2023. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer; and Marc Benathen, Chief Financial Officer of Li ...

Customer Base and Revenue - The company has served approximately 715,000 customers, with total revenue from recurring subscriptions accounting for about 91%[161] - WorkSimpli, a majority-owned subsidiary, has achieved 101% year-over-year revenue growth, with recurring revenue at 98%[161] - Telehealth revenue decreased by 11% to $20.2 million, accounting for 61% of total revenue, while WorkSimpli revenue increased by 101% to $12.9 million, representing 39% of total revenue[172] Telehealth Services - The company's telehealth platform integrates various functionalities, including EMR, CRM, and digital prescriptions, enhancing patient care management[159] - LifeMD's virtual primary care offering provides 24/7 access to high-quality providers across all 50 states, supported by partnerships for discounts on lab work and prescriptions[165] - LifeMD's telehealth offerings aim to connect patients with licensed providers for diagnoses and treatment, addressing various health conditions[159] - The telehealth brands, including RexMD and ShapiroMD, have served over 410,000 and 260,000 customers respectively, with high Trustpilot ratings of 4.7 and 4.9[167] - The company plans to expand its diverse portfolio of telehealth services to meet the needs of a growing patient base[160] Financial Performance - Total revenue for the three months ended March 31, 2023, was approximately $33.1 million, an increase of 14% compared to $29.0 million for the same period in 2022[172] - Gross profit increased by approximately 22% to $28.9 million, with a gross profit margin of 87% for the three months ended March 31, 2023, compared to 82% for the same period in 2022[174] - The company recorded a net loss of approximately $3.4 million for the three months ended March 31, 2023, a significant improvement from a net loss of approximately $13.3 million for the same period in 2022[172] Expenses and Cash Flow - Total expenses decreased by 14% to approximately $31.8 million, primarily due to a reduction in selling and marketing expenses by approximately $5.2 million, or 24%[176] - Net cash used in operating activities was approximately $2.6 million for the three months ended March 31, 2023, compared to $8.1 million for the same period in 2022[181] - Net cash used in investing activities for Q1 2023 was approximately $1.8 million, a decrease of 75.7% from $7.4 million in Q1 2022[182] - Net cash provided by financing activities for Q1 2023 was approximately $12.0 million, compared to a net cash used of approximately $774 thousand in Q1 2022[183] Assets and Liabilities - Working capital increased by approximately $12.2 million during the three months ended March 31, 2023, primarily due to an increase in cash of approximately $7.6 million from the Avenue Facility[178] - Current assets increased to $19.2 million as of March 31, 2023, from $11.3 million as of December 31, 2022[178] - As of March 31, 2023, the company has accrued contract liabilities of approximately $5.9 million, up from $5.5 million as of December 31, 2022[198] Debt and Financing - The Avenue Facility provides a convertible senior secured credit facility of up to $40 million, with $15 million funded at closing and additional amounts available later[171] - The company entered into a Credit Agreement with Avenue for a convertible senior secured credit facility of up to $40 million, maturing on October 1, 2026[185] - The company recorded a loss on debt extinguishment of $325 thousand related to the repayment of the CRG Financial loan during the three months ended March 31, 2023[177] Strategic Focus and Challenges - The company has a strategic focus on enhancing digital patient awareness and engagement for healthcare product companies, addressing unmet needs in the market[168] - The company has begun implementing strategies to strengthen revenues and improve operational efficiencies, although substantial doubt remains about its ability to continue as a going concern[192] Accounting Changes - The Company adopted ASU 2016-13 on January 1, 2023, which requires the use of the current expected credit loss model for estimating lifetime expected credit losses[203] - The adoption of ASU 2016-13 did not have a material impact on the Company's financial statements[203] - The Company adopted ASU 2021-08 on January 1, 2023, affecting the accounting for contract assets and liabilities in business combinations[204] - The adoption of ASU 2021-08 also did not have a material impact on the Company's financial statements[204] Miscellaneous - The company has $18.435 million available under the At Market Issuance Sales Agreement as of March 31, 2023[189] - Customer discounts and allowances on telehealth revenues were approximately $331 thousand in Q1 2023, down from $1.5 million in Q1 2022[196] - The company recorded an $8.0 million goodwill impairment charge related to the Cleared acquisition during the year ended December 31, 2022[200] - As of March 31, 2023, the company has an accumulated deficit of approximately $195.3 million and a current cash balance of approximately $12.8 million[184] - As a smaller reporting company, the Company is not required to provide quantitative and qualitative disclosures about market risk[205]

Call Start: 17:00 January 1, 0000 5:33 PM ET LifeMD, Inc. (NASDAQ:LFMD) Q4 2022 Earnings Conference Call March 22, 2023, 17:00 ET Company Participants Justin Schreiber - Chairman & CEO Marc Benathen - CFO Conference Call Participants David Larsen - BTIG Operator Good afternoon. Thank you for joining us today to discuss the results for LifeMD's Fourth Quarter and Full Year ended December 31, 2022. Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer; and Marc Benathen, Chief Fina ...

Revenue Performance - Total revenue for the year ended December 31, 2022 was approximately $119.0 million, an increase of 28% compared to approximately $92.9 million for the year ended December 31, 2021[198] - Telehealth revenue for 2022 was $82.6 million, accounting for 69% of total revenue, with a 21% increase from the previous year[198] - WorkSimpli revenue for 2022 was $36.4 million, representing a 47% increase and accounting for 31% of total revenue[198] Profit and Loss - Gross profit increased by approximately 34% to $100.4 million for 2022, with a gross profit margin of 84% compared to 81% in 2021[201] - Operating loss for 2022 was $(43.4) million, an improvement from $(54.3) million in 2021[198] - Net loss attributable to common stockholders for 2022 was $(48.6) million, compared to $(61.8) million in 2021[198] Expenses - Total expenses for 2022 were approximately $143.8 million, an increase of 11% from approximately $129.2 million in 2021[202] - General and administrative expenses increased by approximately $7.4 million in 2022, primarily due to a $7.0 million increase in payroll expenses[204] Cash Flow and Working Capital - For the year ended December 31, 2022, the company reported a net cash used in operating activities of approximately $23.0 million, a decrease from $33.1 million in 2021[208] - The company's working capital decreased by approximately $42.2 million during the year ended December 31, 2022, resulting in a working capital of $(20.1) million[206] - The company experienced a net decrease in cash of approximately $37.4 million during the year ended December 31, 2022[207] - As of December 31, 2022, the company had a current cash balance of approximately $14.6 million[212] Acquisitions and Impairments - The company acquired Cleared, a nationwide allergy telehealth platform, for approximately $9.1 million in January 2022[187] - WorkSimpli acquired assets associated with ResumeBuild for $4.0 million in February 2022[189] - The company recorded an $8.0 million goodwill impairment charge and an $827 thousand intangible asset impairment charge in 2022[204] - Goodwill of $8.0 million was recognized in conjunction with the Cleared acquisition, with an impairment charge of $8.0 million recorded in 2022[228] - An impairment loss of $827 thousand was recorded related to the Cleared customer relationship intangible asset during the year ended December 31, 2022[229] Capital Expenditures - Net cash used in investing activities for 2022 was approximately $13.9 million, compared to $3.4 million in 2021, mainly due to capitalized software costs of $8.5 million[209] - The Company capitalized $12.1 million in software costs as of December 31, 2022, an increase of $8.5 million or 236% from $3.6 million in 2021[225] Liabilities and Deficits - The company has an accumulated deficit of approximately $190.6 million as of December 31, 2022[212] - As of December 31, 2022, the Company had accrued contract liabilities of approximately $5.5 million, up from $1.5 million in 2021[224] - The company recorded a $5.1 million reduction in contingent consideration related to the Cleared acquisition due to remeasurement of fair value[204] Accounting and Revenue Recognition - The Company is evaluating the effects of the new accounting standards update effective after December 15, 2022, related to business combinations[231] - The Company allows subscribers to cancel their subscription at any point during the billing cycle, impacting revenue recognition[223] - The Company capitalizes certain internal payroll and third-party costs related to internally developed software, amortizing these costs over an estimated useful life of three years[225]