Revenue and Growth - Total revenue for the year ended December 31, 2024, was approximately $212.4 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 $65.7 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 $204.5 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 $26.6 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 $3.5 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 $8.8 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 $11.5 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 $4.1 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 $27.2 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 $8.1671 per share, raising approximately $10 million [235]. - As of December 31, 2024, there was $19.0 million outstanding under the Avenue Facility, which provides a total credit facility of up to $40 million [237]. - The Company has $53.3 million available under the ATM Sales Agreement, part of the $150.0 million available under the 2024 Shelf registration [239].
LifeMD(LFMD) - 2024 Q4 - Annual Report