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LifeMD(LFMD) - 2024 Q4 - Annual Report
LFMDLifeMD(LFMD)2025-03-11 12:57
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Revenue and Growth - Total revenue for the year ended December 31, 2024, was approximately 212.4million,a39212.4 million, a 39% increase compared to 152.5 million for the year ended December 31, 2023, driven by a 61% increase in telehealth revenue [220]. - Telehealth revenue accounted for 75% of total revenue, with an increase of approximately 65.7millionduringtheyearendedDecember31,2024,primarilyduetohigherdemandforLifeMDvirtualprimarycare[220].ProfitabilityandExpenses−Grossprofitincreasedbyapproximately4165.7 million during the year ended December 31, 2024, primarily due to higher demand for LifeMD virtual primary care [220]. Profitability and Expenses - Gross profit increased by approximately 41% to 188.4 million for the year ended December 31, 2024, with a gross profit margin of 89% compared to 88% in the previous year [222]. - Total expenses for the year ended December 31, 2024, were approximately 204.5million,representinga38204.5 million, representing a 38% increase from 148.1 million in 2023, primarily due to higher selling and marketing expenses [223]. - Selling and marketing expenses increased by approximately 26.6million,or3526.6 million, or 35%, driven by initiatives to boost sales for LifeMD virtual primary care [225]. - Customer service expenses increased by approximately 2.6 million, or 34%, primarily due to higher infrastructure and compensation costs [230]. - Development costs rose by approximately 3.5million,or573.5 million, or 57%, mainly from technology platform improvements and amortization expenses [230]. Cash Flow and Capital Management - Net cash provided by operating activities was approximately 17.5 million for the year ended December 31, 2024, compared to 8.8millionin2023[229].−Workingcapitaldecreasedbyapproximately8.8 million in 2023 [229]. - Working capital decreased by approximately 19.3 million during the year ended December 31, 2024, primarily due to an increase in current liabilities [228]. - Net cash used in investing activities for the year ended December 31, 2024 was approximately 11.5million,anincreaseof32.211.5 million, an increase of 32.2% compared to 8.7 million for the year ended December 31, 2023 [230]. - Net cash used in financing activities for the year ended December 31, 2024 was approximately 4.1million,asignificantdecreasefromnetcashprovidedofapproximately4.1 million, a significant decrease from net cash provided of approximately 29.1 million in 2023 [232]. - The Company has a current cash balance of approximately 27.2millionasofMarch7,2025,withexpectationsofsufficientcashflowoverthenext12months[240].−TheCompanyexpectstoimproveitscashburnrateandachievepositiveoperatingcashflowsduringtheyearendedDecember31,2024[240].StrategicInitiatives−ThecompanylaunchedtheacceptanceofprivatehealthinsuranceforvirtualprimarycareservicesinJune2024,withplanstoexpandcoverageacrossall50states[217].−Anewwholly−ownedpharmacyfacilitywasopenedinNovember2024,designedtofillupto5,000dailyprescriptions,enhancingtheintegratedtelehealthplatform[216].−ThecompanyexpectstobeginacceptingMedicareaspartofitsearly2025roadmap,furtherexpandingaccesstoservices[217].−TheCompanyenteredintoacollaborationwithMedifast,Inc.,whichincludesa27.2 million as of March 7, 2025, with expectations of sufficient cash flow over the next 12 months [240]. - The Company expects to improve its cash burn rate and achieve positive operating cash flows during the year ended December 31, 2024 [240]. Strategic Initiatives - The company launched the acceptance of private health insurance for virtual primary care services in June 2024, with plans to expand coverage across all 50 states [217]. - A new wholly-owned pharmacy facility was opened in November 2024, designed to fill up to 5,000 daily prescriptions, enhancing the integrated telehealth platform [216]. - The company expects to begin accepting Medicare as part of its early 2025 roadmap, further expanding access to services [217]. - The Company entered into a collaboration with Medifast, Inc., which includes a 10 million funding agreement to enhance the Company's platform and operations [234]. - The Company issued 1,224,425 shares of common stock in a private placement to Medifast at a purchase price of 8.1671pershare,raisingapproximately8.1671 per share, raising approximately 10 million [235]. - As of December 31, 2024, there was 19.0millionoutstandingundertheAvenueFacility,whichprovidesatotalcreditfacilityofupto19.0 million outstanding under the Avenue Facility, which provides a total credit facility of up to 40 million [237]. - The Company has 53.3millionavailableundertheATMSalesAgreement,partofthe53.3 million available under the ATM Sales Agreement, part of the 150.0 million available under the 2024 Shelf registration [239].