Financial Performance - Net revenues for the nine-month period ended September 30, 2025, were RMB 178,985,729, representing an increase from RMB 167,144,553 in the same period of 2024, a growth of approximately 11%[3] - Gross profit for the nine-month period ended September 30, 2025, was RMB 80,069,251, compared to RMB 77,600,911 for the same period in 2024, reflecting a gross margin improvement[3] - The net loss attributable to ATA Creativity Global for the nine-month period ended September 30, 2025, was RMB 21,743,641, a decrease from RMB 49,336,811 in the same period of 2024, showing an improvement of approximately 56%[3] - The company reported a basic and diluted loss per common share attributable to ATA Creativity Global of RMB 0.34 for the nine-month period ended September 30, 2025, compared to RMB 0.78 for the same period in 2024, indicating a reduction in losses per share[3] - Net loss for the nine-month period ended September 30, 2024, was RMB 49,336,883, compared to RMB 21,743,669 for the same period in 2025, indicating a significant reduction in losses[7] Assets and Liabilities - The total current assets decreased to RMB 66,639,674 as of December 31, 2024, from RMB 126,538,828 as of September 30, 2025, indicating a significant reduction of approximately 47%[2] - Total liabilities decreased to RMB 377,281,073 as of December 31, 2024, from RMB 403,711,466 as of September 30, 2025, a reduction of about 7%[2] - Cash and cash equivalents as of December 31, 2024, were RMB 36,523,995, a significant decrease from RMB 96,807,261 as of September 30, 2025, reflecting a decline of approximately 62%[2] - Total shareholders' equity attributable to ATA Creativity Global increased to RMB 79,710,448 as of December 31, 2024, from RMB 58,885,029 as of September 30, 2025, an increase of approximately 35%[2] Cash Flow and Investments - The company recorded an investment income of RMB 11,932,630 for the nine-month period ended September 30, 2025, which was not present in the same period of 2024, indicating new revenue streams[3] - Cash paid for property and equipment was RMB 2,408,489 in 2025, a significant decrease from RMB 18,581,054 in 2024, indicating reduced capital expenditures[7] - The company received RMB 32,063,829 from short-term loans in 2025, enhancing liquidity[7] Expenses and Cost Management - Research and development expenses for the nine-month period ended September 30, 2025, were RMB 2,359,214, down from RMB 2,924,091 in the same period of 2024, a decrease of about 19%[3] - Employee benefit expenses for the nine-month period ended September 30, 2025, totaled RMB 12,323,801, a decrease of 5.56% from RMB 13,046,270 in 2024[92] - Sales and marketing expenses decreased significantly to RMB 2,948,340 in 2025, down 25.1% from RMB 3,930,139 in 2024[92] - General and administrative expenses for the nine-month period ended September 30, 2025, were RMB 2,447,738, a decrease of 3.43% from RMB 2,534,935 in 2024[92] Regulatory and Legal Matters - The Company faces potential regulatory actions that could adversely affect its business and financial position, including fines and operational restrictions[28] - The Supreme People's Court ruled that shareholder approval was not required for the sale of the ATA Online Business, dismissing all claims from the plaintiffs[187] Shareholder and Equity Information - As of September 30, 2024, Mr. Ma holds approximately 40% of the total ordinary shares of the Company[24] - The total accrued expenses and other payables as of September 30, 2025, amounted to RMB 45,416,644, down from RMB 56,372,960 as of December 31, 2024[133] Taxation - The Company has been granted a preferential income tax rate of 15% as a high-and-new technology enterprise (HNTE) effective from January 1, 2020, to December 31, 2022[141] - The Company has not accrued income taxes on earnings of RMB 76,559 generated by its PRC consolidated entities as of September 30, 2025, planning to reinvest these earnings indefinitely in the PRC[142] Share-Based Compensation - The share-based compensation plan allows for the issuance of up to 6,965,846 shares, with a vesting schedule generally providing for 25% vesting on the first anniversary of the grant date[154] - The total share-based compensation expense for the year ended December 31, 2024, was RMB 1,016,353, with significant allocations to general and administrative expenses[175]

Financial Performance - Total revenue for the fiscal fourth quarter ended September 30, 2025, was $15.1 million, an increase from $14.6 million in the same period of 2024, driven by higher sales of AbbVie's MAVYRET®/MAVIRET®[5] - For the twelve months ended September 30, 2025, total revenue decreased to $65.3 million from $67.6 million in 2024, attributed to a decline in AbbVie's sales in the first nine months of fiscal 2025[5] - Revenue for the three months ended September 30, 2025, was $15,125,000, an increase from $14,607,000 for the same period in 2024, representing a growth of 3.5%[24] - Total operating expenses for the twelve months ended September 30, 2025, were $150,673,000, down from $189,326,000 in 2024, indicating a reduction of approximately 20.5%[24] - Interest and investment income for the twelve months ended September 30, 2025, was $9,481,000, compared to $14,843,000 in 2024, a decrease of 36.3%[24] Net Loss and Earnings - Enanta reported a net loss of $18.7 million, or $0.87 per diluted share, for the three months ended September 30, 2025, compared to a net loss of $28.8 million, or $1.36 per diluted share, for the same period in 2024[11] - Net loss for the three months ended September 30, 2025, was $18,700,000, compared to a net loss of $28,823,000 for the same period in 2024, reflecting an improvement of 35.5%[24] - The company reported a basic net loss per share of $0.87 for the three months ended September 30, 2025, improved from a loss of $1.36 per share in 2024[24] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $23.8 million, down from $30.8 million in the same period of 2024, primarily due to the timing of clinical trials[7] - Research and development expenses for the three months ended September 30, 2025, were $23,809,000, down from $30,778,000 in 2024, a reduction of 22.6%[24] - The company plans to file an Investigational New Drug application for EPS-3903, an oral STAT6 inhibitor, in the second half of 2026[4] - Enanta nominated EDP-978 as its oral, once-daily KIT inhibitor clinical candidate, with plans to file an IND in the first quarter of 2026[4] - Positive topline data from the RSVHR study indicated zelicapavir reduced the duration of RSV symptoms by 2.2 days for the overall efficacy population and 6.7 days for high-risk patients[3] Financial Position - Enanta's cash, cash equivalents, and marketable securities totaled $188.9 million as of September 30, 2025, expected to fund operations into fiscal 2029[12] - Cash and cash equivalents as of September 30, 2025, were $32,298,000, a decrease from $37,233,000 in 2024, showing a decline of 13.0%[26] - Total assets decreased to $280,732,000 as of September 30, 2025, from $376,652,000 in 2024, representing a decline of 25.5%[26] - Total stockholders' equity fell to $64,717,000 as of September 30, 2025, down from $128,814,000 in 2024, indicating a decrease of 49.8%[26] - Enanta's public offering in October 2025 raised gross proceeds of approximately $74.8 million, strengthening its financial position[4] Interest Expense - Interest expense for the three months ended September 30, 2025, was $2.4 million, compared to $2.6 million for the same period in 2024[6] Cautionary Statements - Enanta cautions investors regarding forward-looking statements, highlighting risks related to development and regulatory efforts in the industry[21]

Financial Performance - Revenue for the nine months ended September 30, 2025, was $11.6 million, a decrease of 56.3% compared to $26.5 million for the same period in 2024[232]. - The company incurred a net loss of $22.7 million for the nine months ended September 30, 2025, compared to a net income of $2.4 million for the same period in 2024[232]. - Revenue decreased by $2.7 million, or 50%, to $2.7 million for the three months ended September 30, 2025, and decreased by $14.9 million, or 56%, to $11.6 million for the nine months ended September 30, 2025, compared to the same periods in 2024[271]. - The company reported a net loss of $11.9 million for the three months ended September 30, 2025, compared to a net income of $8.7 million for the same period in 2024[270]. - The company incurred operating losses of $23.9 million and $33.1 million for the nine months ended September 30, 2025 and 2024, respectively[290]. Cost and Expenses - The cost of revenue decreased by $0.9 million, or 40%, to $1.4 million for the three months ended September 30, 2025, and decreased by $3.9 million, or 52%, to $3.7 million for the nine months ended September 30, 2025, compared to the same periods in 2024[272]. - Total operating expenses for the three months ended September 30, 2025, were $10.9 million, a decrease of $4.5 million compared to the same period in 2024[270]. - Gross profit decreased by $1.8 million, or 58%, to $1.3 million for the three months ended September 30, 2025, and decreased by $11.0 million, or 58%, to $8.0 million for the nine months ended September 30, 2025 compared to the same periods in 2024[273]. - Sales and marketing expenses decreased by $2.1 million, or 40%, to $3.1 million for the three months ended September 30, 2025, and decreased by $8.9 million, or 49%, to $9.2 million for the nine months ended September 30, 2025 compared to the same periods in 2024[274][276]. - Research and development expenses decreased by $1.2 million, or 37%, to $2.0 million for the three months ended September 30, 2025, and decreased by $6.8 million, or 51%, to $6.4 million for the nine months ended September 30, 2025 compared to the same periods in 2024[277][278]. - General and administrative expenses decreased by $1.3 million, or 18%, to $5.8 million for the three months ended September 30, 2025, and decreased by $4.5 million, or 22%, to $16.2 million for the nine months ended September 30, 2025 compared to the same periods in 2024[279][280]. Strategic Initiatives - The Allurion Program includes the Allurion Smart Capsule, the world's first swallowable intragastric balloon, and AI-powered remote patient monitoring tools[227]. - The Allurion Virtual Care Suite (VCS) was launched in April 2024 in the U.S. for patients utilizing various weight loss treatments, enhancing patient management[229]. - The company has submitted a premarket application to the FDA for the Allurion Program, aiming for commercialization in the U.S. by June 30, 2026[230][235]. - The company announced a strategic restructuring plan, including a reduction in force of approximately 70 employees, or about 65% of its workforce, with expected severance charges of approximately $1.5 million[249]. - The company signed a term sheet with a strategic partner to expand ex-US distribution and enhance the R&D pipeline, including the potential joint development of a novel GLP-1 drug-eluting intragastric balloon[253]. - The company expects to begin enrollment for a prospective, multi-center study on the combination of the Allurion Program with a low-dose of GLP-1 for weight loss while maintaining muscle mass this year[253]. Financing and Capital Management - The Omnibus Amendment requires the company to maintain minimum cash balances and achieve designated revenue thresholds, tested quarterly[235]. - The company raised at least $12.0 million in aggregate net proceeds through the issuance of shares as part of the Omnibus Amendment[236]. - The Second Amendment to Note Purchase Agreement allows for the mandatory conversion of $5.0 million of RTW Convertible Notes if market capitalization falls below $15.0 million[240]. - The company entered into a securities purchase agreement to issue and sell 2,994,012 shares of Common Stock for an aggregate purchase price of approximately $5.0 million[250]. - The company received net proceeds of $1.3 million from the issuance of shares and warrants in the Leavitt Private Placement on February 20, 2025[295]. - The company received $40.0 million in proceeds from the Revenue Interest Financing Agreement with RTW on August 1, 2023, with an obligation to remit revenue interest payments at specified rates[313]. - The revenue interest payment rate was increased from 6% to 12% for net sales less than or equal to $100 million prior to December 31, 2026, and from 10% to 12% for net sales on or after January 1, 2027[313]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $14.4 million, consisting of $13.6 million from a public offering[328]. - The company entered into a November 2025 Securities Purchase Agreement, agreeing to issue 2,994,012 shares for approximately $5.0 million at a price of $1.67 per share[308]. - On April 16, 2024, the company received $48 million in gross proceeds from the Amended Note Purchase Agreement with RTW, used to repay the Fortress Term Loan[311]. Cash and Liquidity - As of September 30, 2025, the company had $6.1 million in cash and cash equivalents and an accumulated deficit of $244.9 million[290]. - The company expects to continue generating significant operating losses for the foreseeable future and may need to raise additional capital[292]. - For the nine months ended September 30, 2025, net cash used in operating activities was $23.6 million, compared to $29.0 million for the same period in 2024[318][319]. - The company has various non-cancellable operating leases expiring between 2025 and 2028, impacting future cash requirements[310]. - As of September 30, 2025, cash and cash equivalents totaled $6.1 million, primarily invested in money market funds[336]. - The company has no variable rate debt outstanding as of September 30, 2025[337]. Foreign Currency Exposure - A 10% increase or decrease in current exchange rates could materially impact the business, financial condition, or results of operations[339]. - The primary foreign currency exposure is related to sales and expenses in Europe, with additional exposure in the Middle East and Asia-Pacific regions[339]. - An immediate 10% adverse change in foreign exchange rates during the nine months ended September 30, 2025, would have impacted revenues by approximately 5% and expenses by 4%, affecting net income by about 3%[340]. - In comparison, during the nine months ended September 30, 2024, a similar adverse change would have impacted revenues by approximately 6% and expenses by 2%, affecting net loss by about 2%[340]. - The company has not engaged in any foreign currency hedging activities to date[340]. - The company will continue to reassess its approach to managing foreign currency exchange rate risks as international operations grow[340]. Investment Policy - The investment policy focuses on capital preservation and liquidity needs, avoiding speculative financial instruments[335]. - External investment managers are utilized to adhere to the investment policy guidelines[335].

Financial Performance - Total assets as of September 30, 2025, were $210.6 million, with net assets decreasing by $3.3 million, or 4.32%, compared to the previous quarter[3][5] - Net investment income before taxes was $0.6 million, or $0.04 per share, while the net decrease in net assets from operations was $1.3 million, or $0.09 per share[3][11] - Total investment income for Q3 2025 was $4,356,484, a decrease of 36.3% from $6,846,775 in Q3 2024[19] - Net investment income after taxes for Q3 2025 was $508,465, down 78.1% from $2,325,943 in Q3 2024[19] - The company reported a net decrease in net assets resulting from operations of $(1,260,530) for Q3 2025, compared to an increase of $6,606,629 in Q3 2024[19] - Earnings per share for Q3 2025 were $(0.09), compared to $0.46 in Q3 2024[19] Investment Portfolio - The investment portfolio consisted of 41 portfolio companies, with 78.32% being first lien investments and 98.49% of the debt portfolio being floating rate investments[12] - The company made an investment of $0.02 million in one existing portfolio company during the quarter[5][10] - The internal rate of return on fully realized investments in two portfolio companies was 12.67%[5] Income and Expenses - Total expenses for Q3 2025 were $3,890,011, a decrease of 10.9% compared to $4,368,755 in Q3 2024[19] - Interest income from non-controlled, non-affiliated investments decreased to $3,888,504 in Q3 2025 from $4,674,329 in Q3 2024, a decline of 16.8%[19] - The company experienced a net realized loss from investments of $(1,768,995) in Q3 2025, compared to a gain of $4,280,686 in Q3 2024[19] Distributions - The company declared a distribution of $0.12 per share for the quarter ending December 31, 2025, representing a 20.14% yield based on a share price of $2.78 as of September 30, 2025[5][9] - The company declared distributions of $0.14 per common share for Q3 2025, an increase from $0.12 in Q3 2024[19] Cash and Commitments - As of September 30, 2025, the company had $11.6 million in cash, including $7.8 million in restricted cash[13] - The company entered into a commitment with Investcorp Capital plc to provide capital support for its 4.875% notes due April 1, 2026[7][16] Market Focus - The company targets investment opportunities in middle-market companies with annual revenues of at least $50 million and EBITDA of at least $15 million[20] Debt Investments - The weighted average yield on debt investments increased to 10.87% from 10.57% in the prior quarter[5] - The weighted average shares of common stock outstanding increased slightly to 14,431,202 in Q3 2025 from 14,403,752 in Q3 2024[19] - The company received $7.5 million in proceeds from repayments, sales, and amortization during the quarter[10]

Revenue and Customer Base - The company generated substantial revenue from customers located in the PRC, accounting for nearly all revenue for the fiscal years ended June 30, 2025 and 2024[30]. - For the fiscal year ended June 30, 2025, three significant customers accounted for 27.5%, 25.8%, and 16.2% of total sales, indicating a reliance on a few major clients[55]. - Revenue from AI services under AI Assist contributed 99.4% of total revenue for the fiscal year ended June 30, 2025, compared to 100% in the previous year[135]. - The AI Assist product generated 100% of the company's revenue for the fiscal years ended June 30, 2024, and June 30, 2025, with AI services contributing 99.70% of revenue in the fiscal year ended June 30, 2023[177]. - The top three customers for the fiscal year ended June 30, 2025, contributed approximately 69.5% of total revenue, with Baojiang at 27.5%, Pengbosheng at 25.8%, and Blue Legend at 16.2%[191]. - The company had 28 customers in the fiscal year ended June 30, 2025, compared to nine in 2024 and five in 2023[191]. Regulatory and Legal Environment - Recent regulatory changes in China, including the Cybersecurity Review Measures, may impact the company's operations and require compliance with new data security laws[29]. - The company has not received any notices requiring cybersecurity reviews as of the report date, but future regulations may impose operational challenges[30]. - The legal environment in the PRC presents uncertainties that could limit the company's legal protections and operational stability[34]. - The evolving regulatory landscape for data privacy and security may increase compliance costs and affect business practices[69]. - Cybersecurity threats, including potential data breaches, could lead to significant financial, legal, or reputational losses for the company[75]. - Failure to comply with privacy policies or regulations could result in governmental investigations, fines, and damage to the company's reputation[71]. Financial Performance - For the fiscal year ended June 30, 2025, Helport AI reported revenue of $34.9 million, a 18.3% increase from $29.5 million in the previous fiscal year[135]. - Net income for the fiscal year ended June 30, 2025, was $1.9 million, a decrease from $7.37 million in the fiscal year ended June 30, 2024[135]. - The company relies on dividends from its Singapore subsidiary for cash requirements, which may impact its financial flexibility[97]. - Economic conditions, including inflation and potential recession, may adversely affect the company's revenue and profitability, particularly impacting demand for its AI Assist product[91][92]. - The company has been moderately impacted by the COVID-19 pandemic, with a reduction in billable contact center seats affecting revenue[93]. Operational Challenges and Growth - The company faces challenges in recruiting, training, and retaining skilled personnel, which is critical for its growth and operational efficiency[78]. - The company must effectively manage its growth and execute strategies to avoid adverse impacts on its business and financial results[79]. - Future acquisitions may pose risks related to integration and resource diversion, potentially affecting the company's financial performance[89][90]. - The company has experienced substantial growth and expects continued expansion in operations, particularly in the PRC, U.S., and Southeast Asia[77]. Research and Development - The company has two pending patent applications in Singapore and is investing significantly in research and development to keep pace with technological advances in AI products[42]. - R&D costs for the fiscal years 2023, 2024, and 2025 were US$375,410, US$4,303,490, and US$6,316,962, accounting for 18.3%, 48.6%, and 38.6% of total operating costs respectively[209]. - The company’s R&D efforts in fiscal year 2025 focused on enhancing the fine-tuning capabilities of large AI models for diverse applications[183]. - The R&D team consists of 58 members, with 36 focused on AI operations and 22 on product development, resulting in two patents currently under application review in Singapore[206]. Technology and Product Development - The company has designed effective systems to integrate AI Assist software into contact centers, enhancing its competitive position[42]. - The AI Assist software features four primary functions, including real-time speech guidance and compliance monitoring, aimed at enhancing customer engagement efficiency[131]. - The company has developed over 100 sets of dialog libraries and training tools tailored to various industry scenarios, enhancing its competitive advantage[139]. - The flagship software, AI Assist, serves enterprise clients across industries such as banking and insurance, enhancing operational efficiency[222]. Partnerships and Supplier Relationships - The company relies on third-party agents for payment processing, which introduces credit risks and potential disruptions in cash flow[39]. - The company’s reliance on Youfei Shuke as a key developer partner exposes it to risks if the partner fails to cooperate or experiences operational disruptions[43]. - The company has maintained a long-term partnership with Youfei Shuke, which has been the sole supplier for AI operation services since fiscal year 2024[186]. - The company is actively seeking to diversify its supplier base to mitigate risks associated with reliance on Youfei Shuke[59]. Market Expansion and Strategy - The company plans to expand its presence in the North American and Southeast Asian markets, focusing on sectors such as insurance sales, real estate brokerage, and mortgage lending[149][150]. - The Southeast Asia office, opened in January 2025, has driven growth primarily in the consumer financing sector, establishing a "Global Center of Excellence for AI Training and Operations"[150]. - The company aims to partner with BPO contact centers globally to enhance sales revenue and operational efficiency, targeting BPO operators with significant outbound telesales operations[152][153]. - The company has initiated online promotional campaigns for its AI software and AI+BPO solutions in 2025, utilizing search engine optimization and strategic advertising to increase product exposure[155]. Internal Controls and Governance - Helport AI has not identified any material weaknesses in its internal control over financial reporting for the fiscal year ended June 30, 2025[100]. - Helport AI's reporting obligations may place a significant strain on its management and operational resources[101]. - Helport AI's board of directors has discretion over future dividend declarations, which depend on various factors including financial condition and cash requirements[104]. - Helport AI's independent registered public accounting firm must attest to the effectiveness of its internal controls once it ceases to be an "emerging growth company"[101].

Financial Performance - Total revenue increased 13% year-over-year to $60.2 million, with telehealth revenue growing 18% to $47.3 million[6] - Adjusted EBITDA rose 20% to $5.1 million, while telehealth adjusted EBITDA increased 30% to $2.9 million[6] - For the fourth quarter of 2025, the company expects revenue in the range of $45 million to $46 million and adjusted EBITDA between $3 million and $4 million[10] - Full year 2025 revenue is projected to be between $192 million and $193 million, reflecting an increase of approximately 24% versus 2024[10] - Total revenues for the nine months ended September 30, 2025, increased to $186.98 million, a 25.3% rise from $149.34 million in the same period of 2024[20] - Gross profit for Q3 2025 was $52.76 million, compared to $48.26 million in Q3 2024, reflecting an increase of 9.3%[20] - The consolidated adjusted EBITDA for the nine months ended September 30, 2025, was $19,796,724, significantly higher than $8,115,725 for the same period in 2024[28] Subscriber Growth - The number of active telehealth subscribers increased 14% to approximately 310,000 at quarter-end[9] - LifeMD's RexMD business added nearly 10,000 net new subscribers in the quarter, returning to growth[3] Debt and Cash Management - LifeMD paid off all outstanding debt during the quarter, significantly strengthening its balance sheet[5] - Cash at the end of Q3 2025 was $23.79 million, down from $37.59 million at the end of Q3 2024[22] - Net cash used in operating activities for Q3 2025 was $(147,137), a significant decrease from $6.20 million provided in Q3 2024[22] Operating Loss and Expenses - Operating loss for Q3 2025 narrowed to $(1.97) million, an improvement from $(4.00) million in Q3 2024[20] - Net loss attributable to LifeMD, Inc. for Q3 2025 was $(3.81) million, compared to $(4.66) million in Q3 2024, showing a reduction of 18.2%[20] - Total expenses for the nine months ended September 30, 2025, were $164.94 million, up from $149.13 million in the same period of 2024[20] Telehealth Performance - Telehealth revenue for Q3 2025 reached $47.28 million, up 17.5% from $40.15 million in Q3 2024[20] - Telehealth operating loss for the three months ended September 30, 2025, was $3,043,374, an improvement from a loss of $3,745,522 in 2024[29] - Telehealth adjusted EBITDA for the nine months ended September 30, 2025, reached $10,494,043, compared to $2,664,501 in 2024[29] WorkSimpli Performance - LifeMD completed the divestiture of its majority ownership in WorkSimpli, transforming into a pure-play virtual care and pharmacy platform[4] - WorkSimpli reported an operating income of $1,074,160 for the three months ended September 30, 2025, a recovery from an operating loss of $250,752 in 2024[30] - WorkSimpli adjusted EBITDA for the nine months ended September 30, 2025, was $9,302,680, up from $5,451,224 in 2024[30] Other Financial Metrics - Gross margin was 88% compared to 91% in the prior-year period, with telehealth gross margin at 86% excluding WorkSimpli[9] - The company incurred litigation costs of $959,802 for the three months ended September 30, 2025, compared to $644,170 in 2024[29] - Stock-based compensation expense for the three months ended September 30, 2025, was $3,198,036, compared to $2,394,235 in 2024[29] - The company reported a foreign exchange loss of $314,960 for the three months ended September 30, 2025[30] - Interest expense (excluding amortization of debt discount) for the nine months ended September 30, 2025, was $1,317,389, compared to $1,266,412 in 2024[28] Strategic Plans - LifeMD plans to enhance its core telehealth business while managing the non-core subsidiary WorkSimpli separately[24]

Financial Performance - Total revenue increased 13% year-over-year to $60.2 million, with telehealth revenue growing 18% to $47.3 million[6] - Adjusted EBITDA rose 20% to $5.1 million, while telehealth adjusted EBITDA increased 30% to $2.9 million[6] - For the fourth quarter of 2025, the company expects revenue in the range of $45 million to $46 million and adjusted EBITDA between $3 million and $4 million[10] - Total revenues for the nine months ended September 30, 2025, were $186.98 million, up 25.3% from $149.34 million in the same period of 2024[20] - Gross profit for Q3 2025 was $52.76 million, compared to $48.26 million in Q3 2024, reflecting an increase of 9.3%[20] - The consolidated adjusted EBITDA for the nine months ended September 30, 2025, was $19,796,724, significantly higher than $8,115,725 for the same period in 2024, indicating a 144.5% increase[28] Subscriber Growth - The number of active telehealth subscribers increased 14% to approximately 310,000 at quarter-end[9] - LifeMD's RexMD business added nearly 10,000 net new subscribers in the quarter, returning to growth[3] Debt and Cash Management - LifeMD paid off all outstanding debt during the quarter, improving its balance sheet significantly[5] - Cash totaled $23.8 million as of September 30, 2025, following the payoff of approximately $17 million of all remaining debt[9] - Cash at the end of Q3 2025 was $23.79 million, down from $37.59 million at the end of Q3 2024[22] - Net cash used in operating activities for Q3 2025 was $(147,137), a significant decrease from $6.20 million provided in Q3 2024[22] Operating Loss and Net Loss - Operating loss for Q3 2025 improved to $(1.97) million from $(4.00) million in Q3 2024, indicating a reduction in losses[20] - Net loss attributable to LifeMD, Inc. for Q3 2025 was $(3.81) million, a decrease from $(4.66) million in Q3 2024[20] - Basic loss per share for common stockholders was $(0.10) in Q3 2025, compared to $(0.13) in Q3 2024[20] - For the three months ended September 30, 2025, the net loss attributable to common shareholders was $4,582,680, compared to a loss of $5,434,485 for the same period in 2024, representing a 15.7% improvement[28] Expenses and Cost Management - Total expenses for the nine months ended September 30, 2025, were $164.94 million, up from $149.13 million in the same period of 2024[20] - The company incurred litigation costs of $959,802 for the three months ended September 30, 2025, compared to $644,170 in 2024, which is a 49.0% increase[29] - Stock-based compensation expense for the three months ended September 30, 2025, was $3,198,036, up from $2,394,235 in 2024, reflecting a 33.6% increase[29] - Interest expense (excluding amortization of debt discount) for the three months ended September 30, 2025, was $228,975, compared to $458,154 in 2024, showing a 50.1% decrease[28] Gross Margin - Gross margin was 88% compared to 91% in the prior-year period, with telehealth gross margin at 86%[9] Strategic Moves - LifeMD completed the divestiture of its majority ownership in WorkSimpli, positioning itself as a pure-play telehealth and pharmacy platform[4] - LifeMD plans to enhance its core telehealth business and improve adjusted EBITDA metrics to provide clearer insights into financial performance[24] Telehealth Performance - Telehealth revenue for Q3 2025 reached $47.28 million, a 17.5% increase from $40.15 million in Q3 2024[20] - Telehealth operating loss for the three months ended September 30, 2025, was $3,043,374, a decrease from $3,745,522 in 2024, reflecting a 18.8% improvement[29] - Telehealth adjusted EBITDA for the nine months ended September 30, 2025, reached $10,494,043, compared to $2,664,501 in 2024, marking a 294.5% increase[29] WorkSimpli Performance - WorkSimpli reported an operating income of $1,074,160 for the three months ended September 30, 2025, compared to an operating loss of $250,752 in 2024, indicating a significant turnaround[30] - WorkSimpli adjusted EBITDA for the nine months ended September 30, 2025, was $9,302,680, up from $5,451,224 in 2024, representing a 70.5% increase[30] Foreign Exchange and Other Losses - The company reported a foreign exchange loss of $314,960 for the three months ended September 30, 2025, down from $429,695 in 2024, indicating a 26.7% improvement[30]

Financial Performance - Total revenue for Q1 fiscal 2026 increased by 10% to $6.0 million, up from $5.4 million in the prior year[5] - GAAP net income rose by 9% to $1.8 million, compared to $1.7 million in Q1 fiscal 2025[5] - Earnings per share (EPS) increased by 13% to $0.09 per diluted share, up from $0.08 in the same quarter last year[5] - Operating income for the quarter increased by 28% to $1.9 million from $1.5 million year-over-year[6] - Net income for the three months ended September 30, 2025, was $1,819,529, an increase of 9.2% compared to $1,665,155 in the same period of 2024[19] Revenue Composition - Recurring revenue accounted for approximately 99% of total revenue[6] Cash Flow and Liquidity - The company ended the quarter with $28.8 million in cash and no bank debt[10] - The company generated $1.5 million in cash from operations during the quarter[6] - Cash and cash equivalents at the end of the period increased to $28,794,806, up from $25,790,206, representing a growth of 7.8%[19] - Net cash provided by operating activities decreased to $1,538,447 from $1,868,900, reflecting a decline of 17.6% year-over-year[19] Shareholder Returns - A quarterly dividend of $0.02 per share was declared, representing a 10% increase since the last dividend[6] - Common stock buyback amounted to $149,985, indicating a commitment to returning value to shareholders[19] - Dividends paid decreased slightly to $402,917 from $422,954, a reduction of 4.7% year-over-year[19] - The company has approximately $7.8 million remaining of the $21 million total common share buyback authorization[8] Expenses and Liabilities - Cash paid for income taxes rose significantly to $536,561, compared to $312,098, marking an increase of 71.5%[19] - Bad debt expense increased to $225,000, up from $150,000, reflecting a rise of 50%[19] - Accounts receivables decreased by $245,439, compared to a decrease of $259,388 in the previous year[19] Financing Activities - The company reported a net cash used in financing activities of $1,292,087, slightly higher than $1,266,642 in the prior year[19] - The company recognized a non-cash common stock issuance to pay accrued liabilities amounting to $100,000, compared to $69,985 in the previous year[19] Share Redemption - The company redeemed 70,093 preferred shares for a total of $749,995 during the quarter[7]

Financial Performance - Total revenue for Q1 fiscal 2026 increased by 10% to $6.0 million, compared to $5.4 million in Q1 fiscal 2025[5] - GAAP net income rose by 9% to $1.8 million, up from $1.7 million in the prior year[5] - Earnings per share (EPS) increased by 13% to $0.09 per diluted share, compared to $0.08 per diluted share in the previous year[5] - Operating income for the quarter increased by 28% to $1.9 million from $1.5 million year-over-year[6] - Net income for the three months ended September 30, 2025, was $1,819,529, an increase of 9.2% compared to $1,665,155 in 2024[19] Revenue Composition - Recurring revenue accounted for approximately 99% of total revenue[6] Cash and Liquidity - The company ended the quarter with $28.8 million in cash and no bank debt[10] - Cash generated from operations was $1.5 million during the quarter[6] - Cash and cash equivalents at the end of the period increased to $28,794,806, up from $25,790,206, representing a growth of 7.8%[19] - Net cash provided by operating activities decreased to $1,538,447 from $1,868,900, reflecting a decline of 17.6% year-over-year[19] Shareholder Returns - The board declared a quarterly dividend of $0.02 per share, representing a 10% increase since the last dividend declaration[6] - Common stock buyback amounted to $149,985, indicating a commitment to returning value to shareholders[19] - Dividends paid decreased slightly to $402,917 from $422,954, a reduction of 4.7% year-over-year[19] - The company has approximately $7.8 million remaining of the $21 million total common share buyback authorization[8] Expenses and Investments - Cash paid for income taxes rose significantly to $536,561, compared to $312,098 in the previous year, marking an increase of 72.2%[19] - The company reported a bad debt expense of $225,000, which is a 50% increase from $150,000 in the prior year[19] - The purchase of property and equipment was $11,750, reflecting ongoing investment in operational capacity[19] Financing Activities - The company experienced a net cash used in financing activities of $1,292,087, compared to $1,266,642 in the previous year, indicating a slight increase of 2%[19] - The company redeemed 70,093 preferred shares for a total of $749,995 during the quarter[7] Accounts Receivable - The company reported a decrease in accounts receivables by $245,439, compared to a decrease of $259,388 in the previous year[19]

Financial Position - As of September 30, 2025, total assets amounted to $244,722, with total current liabilities of $288,850, resulting in a shareholder's deficit of $44,128[11]. - As of September 30, 2025, the Company reported a working capital deficit of $288,850 and $0 in cash[39]. - The Company has no amounts outstanding under any Working Capital Loan as of September 30, 2025[40]. - The Company has no off-balance sheet financing arrangements or long-term debt obligations, only incurring $10,000 per month for office space and administrative support[103]. - As of September 30, 2025, the Company had $0 in cash and a working capital deficit of $288,850[98]. Initial Public Offering (IPO) - The company completed its Initial Public Offering on October 24, 2025, raising gross proceeds of $60,000,000 from the issuance of 6,000,000 units at $10.00 per unit[27]. - Following the IPO, an additional $9,000,000 was generated from the over-allotment option, bringing total gross proceeds to $69,000,000[29]. - The total transaction costs related to the IPO amounted to $1,708,648, including a cash underwriting fee of $600,000[28]. - The underwriters exercised their over-allotment option in full, allowing for an additional purchase of 900,000 Units at the Initial Public Offering price[71]. - On October 24, 2025, the Company completed its Initial Public Offering (IPO) of 6,000,000 Units at $10.00 per Unit, generating gross proceeds of $60,000,000[86]. - The underwriters fully exercised their over-allotment option, purchasing an additional 900,000 Units, bringing total gross proceeds to $69,000,000[95]. Business Operations - The company has not yet commenced any operations and will not generate operating revenues until after completing its initial business combination[26]. - The Company has not generated any revenues to date and does not expect to do so until after completing its initial business combination[93]. - The Company intends to use funds outside the Trust Account for evaluating acquisition candidates and conducting due diligence[97]. - The Company intends to focus on industries that complement its management team's background for potential business combinations[25]. Shareholder Information - Shareholders will have the option to redeem their public shares for a pro rata portion of the trust account, initially valued at $10.00 per share[32]. - The public shares are subject to redemption, with 6,900,000 shares valued at $60,000,000 as of October 24, 2025, and increased to $69,000,000 after the over-allotment option[53]. - The Company has a Combination Period of 18 months from the Initial Public Offering closing, with possible one-month extensions, and must complete a Business Combination within this timeframe[35]. Financial Instruments and Reporting - The fair value of the Company's financial instruments approximates their carrying amounts due to their short-term nature[56]. - The Company has not recognized any unrecognized tax benefits as of September 30, 2025, and is not subject to income taxes in the Cayman Islands or the United States[49][50]. - The Company adopted ASU 2023-07 and ASU 2023-09, which enhance segment reporting and income tax disclosures, respectively, with no impact on financial position or cash flows[59][60]. - The company is classified as an "emerging growth company" and has opted not to comply with certain reporting requirements applicable to other public companies[41][43]. - The company is classified as a smaller reporting company and is not required to disclose risk factors in its quarterly report[113]. Management and Governance - The Company has granted a right of first refusal to D. Boral Capital LLC and ARC Group Securities LLC for future public and private equity and debt offerings for a period of 12 months post-business combination[74]. - The Company has committed to pay the Sponsor $10,000 per month for administrative services for up to 18 months, starting from October 23, 2025[68]. - The Company issued 1,725,000 insider shares to the Sponsor for a total cash consideration of $25,000, with the Sponsor retaining a 20% ownership post-IPO[63]. - The insider shares are subject to certain transfer restrictions and anti-dilution adjustments to maintain proportionate ownership post-business combination[65][66]. - The Company has not entered any litigation or legal proceedings against it or its officers as of the reporting date[112]. Internal Controls - There were no changes in internal control over financial reporting that materially affected the company's financial reporting during the last fiscal quarter[110]. - The company has established effective disclosure controls and procedures, ensuring timely and accurate reporting as required by SEC rules[109]. - The company’s management has evaluated the effectiveness of its disclosure controls and concluded they provide reasonable assurance of compliance[109].