Artificial Intelligence

LifeMD, Inc. Reports Fourth Quarter/ Full Year 2022 Results; Achieves Consolidated Adjusted EBITDA Profitability

Published

2 years ago

March 22, 2023

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Achieved consolidated Adjusted EBITDA profitability for first-time in LifeMD history
Full Year 2022 consolidated revenue of $119.0 million, up 28% from the same year-ago period.
Fourth quarter 2022 consolidated revenue of $28.1 million up 3% from the same year-ago period. This figure was impacted by a $2.9 million deferral of telehealth shipments.
Adjusted EPS of $0.02, 107% improvement versus the prior year.
Subsequent to year end, executed debt financing transaction with Avenue Capital, providing for up to $40 million of total capital and strengthening LifeMD’s long-term capital position.
Full Year 2023 guidance of $140-$150 million in consolidated revenue and $12-$18 million of consolidated Adjusted EBITDA.

NEW YORK, March 22, 2023 (GLOBE NEWSWIRE) — LifeMD, Inc. (NASDAQ: LFMD), a leading direct-to-patient telehealth company, reported results for the fourth quarter and full year ended December 31, 2022. All figure comparisons are to the same year-ago quarter unless otherwise noted. Management will host a conference call today, March 22, 2023, at 4:30 p.m. Eastern Time to discuss the results. An updated corporate presentation and Q4 ’22 supplemental presentation were posted to https://ir.lifemd.com/#/ following the market close.

Fourth Quarter Financial Highlights

Fourth quarter revenue of $28.1 million, up 3%. This figure was impacted by a $2.9 million deferral of telehealth shipments.
Fourth quarter consolidated Gross Margin of 86%, up from 80% in the same year-ago period.
Net loss attributable to common stockholders was $12.7 million or $(0.40) per share, as compared to a net loss attributable to common stockholders of $19.0 million or $(0.62) per share in the prior year.
Achieved Consolidated Adjusted EBITDA profit in the fourth quarter for the first-time in LifeMD history totaling $631 thousand as compared to a loss of $(8.2) million in the same year-ago period (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).
Fourth quarter Adjusted EPS of $0.02, up 107% versus same year-ago period (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).

Full Year 2022 Financial Highlights

Consolidated revenue of $119.0 million, an increase of 28% over the prior year.
Gross Margin of 84%, up from 81% in the prior year.
Net loss attributable to common stockholders was $48.6 million or $(1.57) per share, as compared to a net loss attributable to common stockholders of $61.8 million or $(2.29) per share in the prior year.
Consolidated Adjusted EBITDA of $(14.7) million, an improvement of 62% versus the same year-ago period.
Consolidated Adjusted EPS $(0.47), as compared to $(1.42) in the same year-ago period.

Q4 and Recent Operational Highlights

Improved leverage of Selling and Marketing expenses, with fourth quarter expenses as a percentage of revenue reducing to 62%, a 1,500-basis point improvement versus the same year-ago period.
Finished FY 2022 with approximately 7,000 Virtual Primary Care (VPC) subscribers, ahead of previous guidance of 5,000 VPC subscribers.
Telehealth active subscribers increased 22% to approximately 169,000.
WorkSimpli active subscribers increased 64% to approximately 168,000.
Reduced blended telehealth Customer Acquisition Costs (CAC) by 18% versus year-ago period.
Following multiple WorkSimpli buyout bids in the previously guided range, LifeMD elected to retain our 73.6% ownership given the strong outperformance of the business versus our previous expectations, growth prospects and EBITDA contribution. We currently expect Full Year 2023 WorkSimpli EBITDA margins in 2023 of 20% or greater due to continued growth, differentiation and diversification in their workplace services platform. We expect that retaining this asset will allow for the creation of significantly more shareholder value than a 2022 divestiture would have.

Subsequent Events

Executed a debt financing agreement with Avenue Capital for credit facilities totaling up to $40 million of funding capacity with $15 million funded at closing. Proceeds provide a significant source of long-term capital for LifeMD and allow us to maintain a strong balance sheet to execute against strategic growth and profitability plans.
Hired Jessica Friedeman as Chief Marketing Officer of LifeMD, Inc. Jessica served as Chief Marketing Officer of Healthgrades, and brings twenty years of direct-to-consumer and business-to-business healthcare marketing experience. Jessica drove the end-to-identity creation of Mercury Healthcare in tandem with the divestiture of Healthgrades’ online marketplace division, and optimized sales execution with a focus on market fit that was integral in the subsequent acquisition of Mercury Healthcare by WebMD.
Appointed Dr. Joan LaRovere to LifeMD’s Board of Directors. Dr. LaRovere is a clinical leader, physician, cardiac expert and social entrepreneur who has spent the last 15 years in leadership roles at two of the top hospitals in the world, London’s Royal Brompton Hospital and Boston Children’s Hospital. She also is an operating partner at iSelect Fund and brings to LifeMD deep expertise in digital health, artificial intelligence and data analytics.

Key Performance Metrics

($ in 000s)	Three Months Ended December 31,						Y-o-Y
Key Performance Metrics		2022			2021		% Growth
Revenue
Telehealth	$	16,419		$	20,573		-20	%
WorkSimpli	$	11,701		$	6,844		71	%
Total Revenue	$	28,120		$	27,417		3	%

Subscription Revenue as % of Total		94	%		92	%	2	%

Active Subscribers
Telehealth Active Subscribers		169,195			138,252		22	%
WorkSimpli Active Subscribers		167,751			102,023		64	%
Total Active Subscribers		336,946			240,275		40	%

Management Commentary
“The fourth quarter of 2022 was encapsulated by the achievement of a significant milestone for the Company, our first-ever quarterly achievement of Consolidated Adjusted EBITDA profit. Through the hard work of our various employees and management, we continued to deliver the superior products, services and customer care that our 300,000+ customers across both our Telehealth and WorkSimpli segments, continue to choose us for. We have also remained highly focused on improving the efficiencies and economics of all our businesses during this challenging macro environment, as evidenced by improvements in Customer Acquisition Costs (CACs), an increase in Gross Margins to record levels, and a significant reduction in cash burn. We also continued to focus on our key strategic priorities of delivering comprehensive virtual primary care and building long-term partnerships with healthcare organizations seeking to streamline access to care for patients,” said Justin Schreiber, Chairman & CEO of LifeMD. “Additionally, we took an important step to shore up the Company’s long-term balance sheet by executing a significant institutional financing arrangement with Avenue Capital following our voluntary decision to retain WorkSimpli given its continued overperformance. This capital, combined with our strong operational performance, positions us well for the numerous growth opportunities ahead in both our legacy lifestyle healthcare businesses and our Virtual Primary Care business, which we launched in 2022 and is performing beyond our initial expectations. Looking ahead we believe 2023 will be a breakout year for LifeMD with a return to significant top-line growth and the achievement of consistent and growing profitability.”

LifeMD CFO Marc Benathen, commented: “We are pleased to have delivered upon our guidance to shareholders to achieve consolidated Adjusted EBITDA profitability in the fourth quarter 2022. We expect to meaningfully build on this profitability in 2023. The achievement of this goal is an extremely important financial milestone for the Company, driven by our continued laser-like focus on operational excellence as is evidenced by the significant reduction in our blended CAC’s, continued improvement in Gross Margins and Operating Expenses as shown through their reduction as a percentage of revenue. With the recent closing of the Avenue deal significantly bolstering our balance sheet, coupled with the attainment of profitability, and expected elimination of cash burn by middle of the year, we are well positioned to return LifeMD back to strong double-digit growth while growing the bottom line. This is particularly evident in Full Year 2023 guidance which calls for year-over-year revenue growth of approximately 20-25% and Adjusted EBITDA profitability of $12-$18 million.”

Financial Guidance
For the First Quarter 2023, the Company expects:

Consolidated Revenue to total between $31.0 million and $32.0 million
Consolidated Adjusted EBITDA between $1.0 and $1.5 million

For the Full Year 2023, the Company expects:

Consolidated Revenue to total between $140.0 million and $150.0 million
Consolidated Adjusted EBITDA between $12.0 and $18.0 million

Conference Call
LifeMD’s management will host a conference call today, March 22, 2023 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:

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 ir.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
[email protected]

LIFEMD, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS


	December 31, 2022			December 31, 2021

ASSETS

Current Assets
Cash	$	3,958,957		$	41,328,039
Accounts receivable, net		2,834,750			980,055
Product deposit		127,265			203,556
Inventory, net		3,703,363			1,616,600
Other current assets		687,022			793,190
Total Current Assets		11,311,357			44,921,440

Non-current Assets
Equipment, net		476,441			233,805
Right of use asset, net		1,206,009			1,752,448
Capitalized software, net		8,840,187			2,995,789
Intangible assets, net		3,831,859			19,761
Total Non-current Assets		14,354,496			5,001,803

Total Assets	$	25,665,853		$	49,923,243

LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ (DEFICIT) EQUITY

Current Liabilities
Accounts payable	$	10,106,793		$	9,059,214
Accrued expenses		12,166,509			11,595,605
Notes payable, net		2,797,250			63,400
Current operating lease liabilities		756,093			607,490
Deferred revenue		5,547,506			1,499,880
Total Current Liabilities		31,374,151			22,825,589

Long-term Liabilities
Noncurrent operating lease liabilities		574,136			1,178,544
Contingent consideration		443,750			100,000
Purchase price payable		579,319			–
Total Liabilities		32,971,356			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, $1,305 and $1,175 per share as of December 31, 2022 and 2021, respectively		4,565,822			4,110,822

Stockholders’ (Deficit) Equity
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares authorized, 1,400,000 shares issued and outstanding, liquidation value approximately $27.84 and $25.62 per share as of December 31, 2022 and 2021, respectively		140			140
Common Stock, $0.01 par value; 100,000,000 shares authorized, 31,552,775 and 30,704,434 shares issued, 31,449,735 and 30,601,394 outstanding as of December 31, 2022 and 2021, respectively		315,528			307,045
Additional paid-in capital		179,015,250			164,517,634
Accumulated deficit		(190,562,994	)		(141,921,085	)
Treasury stock, 103,040 and 103,040 shares, at cost		(163,701	)		(163,701	)
Total LifeMD, Inc. Stockholders’ (Deficit) Equity		(11,395,777	)		22,740,033
Non-controlling interest		(475,548	)		(1,031,745	)
Total Stockholders’ (Deficit) Equity		(11,871,325	)		21,708,288
Total Liabilities, Mezzanine Equity and Stockholders’ (Deficit) Equity	$	25,665,853		$	49,923,243

LIFEMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


	Fourth Quarter Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021
Revenues
Telehealth revenue, net	$	16,418,643		$	20,573,306		$	82,649,845		$	68,197,128
WorkSimpli revenue, net		11,701,073			6,843,578			36,383,675			24,678,678
Total revenues, net		28,119,716			27,416,884			119,033,520			92,875,806
Cost of revenues
Cost of telehealth revenue		3,801,642			5,436,214			17,843,754			17,549,550
Cost of WorkSimpli revenue		266,058			131,416			824,274			445,844
Total cost of revenues		4,067,700			5,567,630			18,668,028			17,995,394

Gross profit		24,052,016			21,849,254			100,365,492			74,880,412

Expenses
Selling and marketing expenses		17,440,781			21,169,141			78,369,430			82,541,956
General and administrative expenses		9,203,072			11,340,268			46,960,782			39,534,573
Goodwill and intangible asset impairment charges		6,127,596			–			8,862,596			–
Change in fair value of contingent consideration		(2,614,000	)		–			(5,101,000	)		–
Other operating expenses		1,640,975			1,053,719			6,717,795			3,317,976
Customer service expenses		1,605,370			1,564,439			5,033,468			2,838,831
Development costs		1,019,163			386,364			2,970,202			948,157
Total expenses		34,422,957			35,513,931			143,813,273			129,181,493

Operating loss		(10,370,941	)		(13,664,677	)		(43,447,781	)		(54,301,081	)

Interest expense, net		(843,541	)		(153,566	)		(1,275,946	)		(3,019,716	)
Gain (loss) on debt forgiveness		–			(4,180,473	)		63,400			(3,995,559	)
Net loss before provision for income taxes		(11,214,482	)		(17,998,716	)		(44,660,327	)		(61,316,356	)

Provision for income taxes		(360,700	)		(7,700	)		(360,700	)		(7,700	)
		(11,575,182	)		(18,006,416	)		(45,021,027	)		(61,324,056	)
Net loss

Net income (loss) attributable to noncontrolling interests		360,168			104,830			514,632			(426,352	)

Net loss attributable to LifeMD, Inc.		(11,935,350	)		(18,111,246	)		(45,535,659	)		(60,897,704	)

Preferred stock dividends		(776,562	)		(871,476	)		(3,106,250	)		(871,476	)

Net loss attributable to LifeMD, Inc. common stockholders	$	(12,711,912	)	$	(18,982,722	)	$	(48,641,909	)	$	(61,769,180	)

Basic loss per share attributable to LifeMD, Inc. common stockholders	$	(0.40	)	$	(0.62	)	$	(1.57	)	$	(2.29	)
Diluted loss per share attributable to LifeMD, Inc. common stockholders	$	(0.40	)	$	(0.62	)	$	(1.57	)	$	(2.29	)

Weighted average number of common shares outstanding:
Basic		31,410,065			30,572,003			30,976,455			27,007,961
Diluted		31,410,065			30,572,003			30,976,455			27,007,961

LIFEMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Fourth Quarter Ended December 31,						Year Ended December 31,
	2022			2021			2022			2021

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(11,575,182	)	$	(18,006,416	)	$	(45,021,027	)	$	(61,324,056	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount		–			–			–			2,090,236
Amortization of capitalized software		934,908			334,961			2,681,807			512,887
Amortization of intangibles		259,760			1,853			926,542			342,310
Accretion of consideration payable		101,081			–			273,822			–
Depreciation of fixed assets		44,877			10,695			161,885			13,560
Writedown of inventory		103,417			57,481			103,417			57,481
Sales return reserve		338,193			–			338,193			–
Loss (gain) on forgiveness of debt		–			4,180,473			(63,400	)		3,995,559
Change in fair value of contingent consideration		(2,614,000	)		–			(5,101,000	)		–
Goodwill and intangible asset impairment charges		6,127,596			–			8,862,596			–
Deferred income tax provision		354,000			–			354,000			–
Operating lease payments		83,241			17,017			546,439			22,700
Stock compensation expense		1,884,614			4,087,768			13,734,614			12,071,659
Stock issued for legal settlement		–			–			816,000			–

Changes in Assets and Liabilities
Accounts receivable		(634,825	)		986,755			(2,192,888	)		17,702
Product deposit		(19,214	)		708,392			76,291			613,209
Inventory		(130,649	)		(86,987	)		(2,183,012	)		(409,823	)
Other current assets		127,554			(103,835	)		106,168			(638,314	)
Change in operating lease liability		(77,710	)		–			(455,805	)		–
Deferred revenue		3,194,354			63,899			4,047,626			583,000
Accounts payable		(576,066	)		256,902			1,251,037			(893,956	)
Accrued expenses		993,497			1,665,103			(1,309,968	)		9,860,357
Other operating activity		(888,486	)		–			(888,486	)		–
Net cash used in operating activities		(1,969,039	)		(5,825,939	)		(22,935,149	)		(33,085,489	)

CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for capitalized software costs		(1,783,259	)		(1,401,186	)		(8,526,205	)		(3,132,693	)
Purchase of equipment		12,244			(177,260	)		(366,633	)		(247,365	)
Purchase of intangible assets		–			–			(4,000,500	)		(22,231	)
Acquisition of business, net of cash acquired		–			–			(1,012,395	)		–
Net cash used in investing activities		(1,771,015	)		(1,578,446	)		(13,905,733	)		(3,402,289	)

CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from private placement offering, net		–			–			–			13,495,270
Proceeds from issuance of debt instruments		–			–			–			15,000,000
Cash proceeds from Series A Preferred and Common Stock Offering		–			55,342,927			–			55,342,927
Repayment of debt instruments		–			(15,000,000	)		–			(15,000,000	)
Cash proceeds from sale of common stock under ATM		–			–			–			493,481
Cash proceeds from exercise of options		–			(150,000	)		90,400			670,750
Cash proceeds from exercise of warrants		–			–			38,500			480,609
Preferred stock dividends		(776,562	)		(871,476	)		(3,106,250	)		(871,476	)
Proceeds from notes payable		2,906,000			–			2,906,000			963,965
Repayment of notes payable		(168,750	)		–			(168,750	)		(1,494,784	)
Contingent consideration payment for ResumeBuild		(62,500	)		–			(156,250	)		–
Purchase of membership interest of WorkSimpli		–			–			–			(300,000	)
Reduction of membership interest of WorkSimpli		–			–			12,150			–
Distributions to non-controlling interest		(36,000	)		(36,000	)		(144,000	)		(144,000	)
Net cash (used in) provided by financing activities		1,862,188			39,285,451			(528,200	)		68,636,742

Net (decrease) increase in cash		(1,877,866	)		31,881,066			(37,369,082	)		32,148,964

Cash at beginning of period		5,836,823			9,446,973			41,328,039			9,179,075

Cash at end of period	$	3,958,957		$	41,328,039		$	3,958,957		$	41,328,039

Cash paid for interest
Cash paid during the period for interest	$	189,000		$	314,986		$	189,000		$	435,048

Non-cash investing and financing activities:
Cashless exercise of options	$	–		$	–		$	297		$	8,730
Consideration payable for Cleared acquisition	$	–		$	–		$	8,079,367		$	–
Consideration payable for ResumeBuild acquisition	$	–		$	–		$	500,000		$	–
Warrants issued for debt instruments	$	–		$	–		$	–		$	6,270,710
Principal of Paycheck Protection Program loans forgiven	$	–		$	–		$	63,400		$	184,914
Additional purchase of membership interest in WorkSimpli issued in performance options	$	–		$	–		$	–		$	144,002
Right of use asset	$	89,595		$	1,752,448		$	89,595		$	1,752,448
Right of use lease liability	$	94,168		$	1,178,544		$	94,168		$	1,178,544

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, foreign currency translation, inventory valuation, sales return reserves and deferred revenue adjustments, litigation costs, gain on debt forgiveness, preferred stock dividends, acquisition costs, severance expenses, goodwill impairment charges, change in fair value of contingent consideration 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, foreign currency translation, inventory valuation, sales return reserves and deferred revenue adjustments, litigation costs, preferred stock dividends, acquisition costs, severance expenses, goodwill impairment charges, change in fair value of contingent consideration 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)
	Fourth Quarter Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
Net loss attributable to common shareholders	$	(12,711,912	)	$	(18,982,722	)	$	(48,641,909	)	$	(61,769,180	)

Interest expense (excluding debt discount and acceleration of debt)		728,856			38,881			820,946			474,480
Depreciation, amortization and accretion expense		1,340,626			347,509			4,044,056			868,757
Amortization of debt discount		–			–			–			2,090,236
Gain on debt forgiveness		–			4,180,473			(63,400	)		3,995,559
Financing transactions expense		98,333			543,398			250,348			1,802,469
Litigation costs		168,162			–			1,685,521			279,666
Inventory valuation adjustment		176,000			571,338			406,661			571,338
Sales return reserve		523,057						523,057			–
Deferred revenue adjustment		2,918,942			–			2,918,942			–
Severance costs		181,824			–			360,914			–
Acquisitions expenses		127,539			–			392,692			–
Change in fair value of contingent consideration		(2,614,000	)		–			(5,101,000	)		–
Goodwill and intangible asset impairment charges		6,127,596			–			8,862,596			–
Accrued interest on Series B Convertible Preferred Stock		114,685			114,685			455,000			455,000
Foreign exchange (gain) loss		393,147			–			1,078,389			–
Dividends		812,562			871,476			3,250,250			871,476
Stock-based compensation expense		1,884,614			4,087,768			13,734,614			12,071,659
Provision for income taxes		360,700			7,700			360,700			7,700

Adjusted EBITDA	$	630,731		$	(8,219,494	)	$	(14,661,623	)	$	(38,280,840	)


Reconciliation of GAAP Diluted Loss per Share Attributable to Common Shareholders to Adjusted EPS
(unaudited)	Fourth Quarter Ended December 31,						Year Ended December 31,
		2022			2021			2022			2021
Diluted loss per share attributable to LifeMD, Inc. common shareholders	$	(0.40	)	$	(0.62	)	$	(1.57	)	$	(2.29	)

Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS
Interest expense (excluding debt discount and acceleration of debt)		0.02			–			0.03			0.02
Depreciation, amortization and accretion expense		0.04			0.01			0.13			0.03
Amortization of debt discount		–			–			–			0.08
Gain on debt forgiveness		–			0.14			–			0.15
Financing transactions expense		–			0.02			0.01			0.07
Litigation costs		0.01			–			0.06			0.01
Inventory valuation adjustment		0.01			0.02			0.01			0.01
Sales return reserve		0.02			–			0.02			–
Deferred revenue adjustment		0.09			–			0.09			–
Severance costs		0.01			–			0.01			–
Acquisitions expenses		–			–			0.01			–
Change in fair value of contingent consideration		(0.08	)		–			(0.16	)		–
Goodwill and intangible asset impairment charges		0.20			–			0.29			–
Accrued interest on Series B Convertible Preferred Stock		–			–			0.02			0.02
Foreign exchange (gain) loss		0.01			–			0.03			–
Preferred dividends		0.02			0.03			0.10			0.03
Stock-based compensation expense		0.06			0.13			0.44			0.45
Provision for income taxes		0.01			–			0.01			–

Adjusted EPS	$	0.02		$	(0.27	)	$	(0.47	)	$	(1.42	)

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Artificial Intelligence

Huawei Wen Tong: 6G Needs to Embrace AI for Shaping Future Network

Published

2 hours ago

September 29, 2024

CISION (PR Newswire)

huawei-wen-tong:-6g-needs-to-embrace-ai-for-shaping-future-network

SHENZHEN, China, Sept. 29, 2024 /PRNewswire/ — At the 6G Conference held in Istanbul, on September 24, 2024, Dr. Wen Tong, Huawei Wireless CTO, delivered a keynote speech on 6G standardization and innovation. With the release of the ITU-R 6G vision framework, the 3GPP will start 6G standardization in 2025. “6G is a new generation of mobile technology, not a simple upgrade of 5G, it should bring new value to users,” said Dr. Tong, “6G is a true intergenerational technological disruption. 6G standard, key technologies, and network architecture should be re-defined based on application scenarios and requirements from 2030 to 2040. 6G should not be another way to implement 5G. Instead, 6G should embrace the AI revolution with a quantum leap and generate new values for the consumers. In this way, 3GPP standards can truly realize the 6G vision and create greater value for the entire industry.”

Centered “6G Standardization Direction” and “6G Innovation Driving Force”, Dr. Tong shared important views on the future architecture, terminal development, and key technologies of 6G.
In terms of architecture design, 6G should go beyond Service-Based Architecture and move towards Application-Driven Network.
5G has already achieved market success and continues to evolve towards 5G-Advanced. 6G will not simply reuse 5G network architecture, without generational and fundamental innovations, which will limit the mobile industry’s aspiration and imagination to dive the innovation in the 6G era. 6G must have obvious cross-generational characteristics and technical breakpoint.
On the core side, reusing the 5G core network will hinder the innovation in AI. We should use Agentic-AI based technology to re-architect 6G Core that goes beyond 5G Service-Based Architecture and support the foundational capabilities of AI, Sensing and NTN , and thus evolve towards the Application Driven Network .
In terms of terminal evolution, 6G user device calls for a breakthrough to lead the success of the entire industry chain.
It is the law of the mobile industry to drive the evolution of the market with the pioneering technology. The 6G networks and 6G terminals must meet the requirements of consumers and vertical industries in the 6G market phase from 2030 to 2040.
Currently, smartphones are evolving to AI terminals to usher in the mobile AI era. In post-MBB era, breakthroughs in terminal technologies will be the key to the evolution of the mobile industry. Therefore, 6G user device calls for a breakthrough towards “Full-AI”, thus to drive 6G network upgrade and the success of the entire industry ecosystem.
In terms of technology development, AI will become a key enabler for 6G with network paradigm shifting.
Twenty years ago, the Internet was the enabler of the technology innovations. Mobile communications embraced the Internet and achieved great business success. Today, AI maybe the disruptive enabler of the latest technology innovations.
6G should embrace the AI revolution with a quantum leap. However, 6G networks should not be limited to generative AI, Artificial General Intelligence (AGI) and Embodiment-AI are the main directions of future AI development. Therefore, AGI should run through the whole process of sensing, reasoning, decision, and action of terminals, wireless networks, and core networks of 6G, to welcome the arrival of a new network paradigm.
At the end, Dr. Tong Wen emphasized the relationship between 5G and 6G: “The global 5G deployment is on the rise and evolving to 5G-Advanced, which not only meets the current requirements of operators, but also protects their investment. Therefore, 6G technologies should not overlap with 5G in technologies and market space. The specifications, technologies, and architecture of 6G must be based on the scenarios and requirements from 2030 to 2040. We should focus on true generational technology disruption, embrace the new opportunities brought by AI, expand the mobile industry in the next generation.”
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Artificial Intelligence

How AIoT shapes the future of mobility: Hikvision at ITS World Congress 2024

Published

1 day ago

September 27, 2024

CISION (PR Newswire)

how-aiot-shapes-the-future-of-mobility:-hikvision-at-its-world-congress-2024

HANGZHOU, China, Sept. 27, 2024 /PRNewswire/ — Hikvision made a significant impact at the ITS World Congress in Dubai with its captivating theme, “Embrace AIoT for safer, smarter, and greener mobility.” Its booth became a hub of innovation, where visitors explored AIoT solutions that are reshaping the transportation landscape, sparking deep conversations on the future of urban mobility.

Road safety revolution: harnessing AIoT for secure transportation
Hikvision’s commitment to road safety was on full display at its booth through the impressive array of AIoT solutions designed to create secure and reliable traffic environments. The company’s technology provides 24/7 traffic monitoring, ensuring continuous oversight of motor vehicles, non-motorized vehicles, pedestrians and environmental factors. This comprehensive, real-time information collection enables traffic managers to prevent accidents and enhance road safety. Among the showcased products was the 20 MP IR ANPR Checkpoint Capture Unit, renowned for its high-definition capture capabilities, bolstering traffic safety measures.
A standout innovation was the integration of advanced radar and camera technologies, ensuring uninterrupted, comprehensive detection even in adverse weather conditions. The Radar-Video Fusion Incident Detection Cameras, featured prominently in the product experience area, enable early detection and warning of potential hazards. They are particularly effective in challenging situations such as curved roads, blind spots at intersections, and obstacles beyond visual range.
Attendees also engaged with onboard monitoring products on the simulated bus, including dome network cameras, which is designed to enhance passenger safety. Driving assistance products, such as the Driver Status Monitor (DSM), were demonstrated to mitigate unsafe driving behaviors and ensure safer journeys.
Urban mobility redefined: smart traffic innovations
In the realm of smarter mobility, Hikvision showcased its multidimensional sensing technology, which integrates visible light sensors, infrared sensors, radar, and sonar. This technology expands perception capabilities, significantly improving traffic management and situational awareness. The use of AI-powered comprehensive sensing elevates incident monitoring and violation detection to unprecedented levels of accuracy and efficiency.
A major attraction was the Radar-Video Fusion TandemVu PTZ Camera, which integrates millimeter-wave radar with high-resolution cameras for extensive traffic detection and data analysis. AI-based algorithms combine these two systems to enhance target information, detecting up to 16 types of incidents. This leads to the development of a large-scale fusion model that merges spatial physical data with image semantic information. The result is ultra-long-range perception, achieving over 95% accuracy in vehicle trajectory detection. This robust system improves traffic violation management and optimizes traffic flow, significantly enhancing road efficiency.
At the simulated bus station, visitors observed how AI-assisted people counting automated the collection of passenger flow statistics at peak stop hours and bus line frequency during busy periods. Paired with smart bus stop digital signage, the solution improves bus service quality, operational efficiency, passenger experience, and overall public transport effectiveness.
Sustainable transportation: leading the charge for greener cities
Hikvision’s commitment to sustainable urban mobility was evident through its innovative green wave technology and eco-friendly checkpoint solutions. Green wave technology efficiently manages traffic flow to reduce congestion and lower carbon emissions, aligning with global sustainability goals. Visitors were particularly impressed by a case study showcasing a green wave solution implemented in Zhoushan, China. Over a stretch of 21 kilometers and 34 intersections, this main road cut travel times by 50%.
The use of DarkFighterX technology in checkpoint cameras also received significant attention. This technology senses both visible and invisible light, resulting in more accurate and realistic images. It enhances traffic violation enforcement efficiency while minimizing the need for high ambient light levels, thus reducing light pollution. The 9M DarkfightX ANPR Checkpoint Camera exemplified this dedication to environmental stewardship.
Frank Zhang, President of Hikvision MEA, remarked, “Hikvision supports sustainable urban planning by empowering traffic departments to address congestion and transportation challenges.” He further emphasized, “Our system’s openness fosters a secure and reliable platform for developing smart and green cities. Additionally, our solar technology is extensively utilized in remote areas, while our smart street lighting solutions reduce energy consumption by 20-30%, promoting intelligent urban transportation and advancing global sustainability objectives.”
Hikvision’s presence at the ITS World Congress in Dubai underscored its leadership in integrating AIoT technologies to drive safer, smarter, and greener mobility solutions. The engaging presentations and advanced product demonstrations captured significant attention from industry partners and customers, reaffirming the company’s role as a pioneer in shaping the future of urban transportation. As the world moves towards more intelligent and sustainable transportation systems, Hikvision remains at the forefront, embracing AIoT to create a safer, smarter, and greener future for all.
To find out more about Hikvision’s advanced traffic and public transport solutions, please explore the Hikvision official website.
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Artificial Intelligence

Anti-Drone Market worth $7.05 billion by 2029 – Exclusive Report by MarketsandMarkets™

Published

2 days ago

September 27, 2024

CISION (PR Newswire)

DELRAY BEACH, Fla., Sept. 27, 2024 /PRNewswire/ — The global anti-drone market was valued at USD 2.16 billion in 2024 and is projected to reach USD 7.05 billion by 2029; it is expected to register a CAGR of 26.7% during the forecast period according to a new report by MarketsandMarkets™. Increasing government spending on counter-drone technologies, rising incidence of critical infrastructure security breaches by unauthorized drones, and surge in adoption of aerial remote sensing technologies to safeguard critical infrastructure are attributed to the demand for anti-drone.

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Browse in-depth TOC on “Anti-Drone Market” 178 – Tables61 – Figures253 – Pages
Anti-Drone Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 2.16 billion
Estimated Value by 2029
$ 7.05 billion
Growth Rate
Poised to grow at a CAGR of 26.7%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By System Type, Application, Platform type, Vertical, and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Vulnerability to hacking
Key Market Opportunities
Emphasis on improving unmanned aircraft systems technology
Key Market Drivers
Growing number of illicit activities
By System Type: Hybrid systems to account for the larger market share in the forecasted year.
The hybrid segment accounted for the largest share of the anti-drone market in 2029. The trends of integrating multiple anti-drone technologies are rising since they are most effective in detecting, tracking, and neutralizing drone threats. These systems merge electronic, kinetic, and lasers, providing a comprehensive defense solution against UAVs. Hybrid systems use electronic, kinetic, and laser-based countermeasures to offer optimum protection against drones. These systems are designed to detect, track, identify, categorize, and mitigate drones at operational wide ranges ranging from a few km up to tens of km.
By Platform: The ground-based segment accounted for the largest market share in the forecast year.
The ground-based segment will hold a major share of the anti-drone market in 2029. Many ground-based anti-drone systems use several electronic technologies, such as radar, IR sensors, acoustic systems, and RF & GNSS jammers. MESA radar solutions are used mostly for counter-UAS purposes, protecting critical infrastructure, military camps, and other security-sensitive sites from unauthorized drones. One such solution is EchoGuard, a ground-based airspace management solution that contains a software-defined 3D radar that can be specific to the site. This system can identify single or multiple off-chance drones, including swarms in unauthorized areas. They provide accurate and sustained airspace surveillance for the field of view (FOV) they are configured, and both human and AI-monitored visual checks. The system can be easily transported and integrated directly with the command-and-control centers or another identification sensor for portable use, and multiple units of the system can be combined to cover vast areas or lengths of borders. Major providers of ground-based counter-drone systems include companies like EchoDyne Corporation, DeTect, Meteksan Defense, and WhiteFox Defense. Acoustics-based Discovair G2 utilizes patented microphone arrays. With 128 interconnected microphone elements, the Discovair sensor units can establish azimuth and elevation to the target in real-time using advanced digital signal processing.
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By Region: Americas are expected to hold the largest share of the anti-drone market during the forecast period.
Americas is expected to capture the largest share in the anti-drone industry during the forecast period. The growth can be attributed to protecting crucial infrastructure in the region. Governments, particularly in the US, invest in anti-drone systems for military bases, borders, and critical infrastructure. For Instance, in April 2023, RTX secured a USD 237 million contract from the US Army to provide Ku-band Radio Frequency Sensors (KuRFS) and Coyote effectors. These systems are designed to detect and neutralize unmanned aircraft systems (UAS). The contract includes stationary and mobile systems and a specified quantity of effectors, all aimed at enhancing the Army’s operations within the US Central Command region.
Key Players-
The key companies offering anti-drone companies include RTX (US), Lockheed Martin Corporation (US), Leonardo S.p.A. (Italy), Thales (France), and IAI (Israel).
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About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
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