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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

LifeMD Reports Q3 2021 Revenue Up 127% to Record $24.9 Million and 24% Sequential Improvement in Adjusted EBITDA

November 10, 2021 GMT

  • Revenue increased to a record $24.9 million, up 127% from the same year-ago period
  • 24% sequential improvement in Adjusted EBITDA versus prior quarter
  • 93% of Q3 2021 revenue generated by subscriptions, up from 61% in the same year-ago period
  • Total telehealth order volume grew 153% to 232,293

NEW YORK, Nov. 10, 2021 (GLOBE NEWSWIRE) -- LifeMD, Inc. (NASDAQ: LFMD), a leading direct-to-patient telehealth company, reported results for the third quarter ended September 30, 2021. All figure comparisons are to the same year-ago quarter unless otherwise noted. Management will host a conference call today at 5:00 p.m. Eastern time to discuss the results.

Q3 Financial Highlights

  • Record revenue of $24.9 million, up 127%
  • 93% of revenue generated by subscriptions, up from 61%
  • Gross profit totaled $19.9 million, or 80% of net revenues, up 113%
  • Adjusted EBITDA of $(9.0) million, a 24% sequential improvement versus the prior quarter (see definition of this non-GAAP financial measure and reconciliation to GAAP, below)
  • Adjusted EPS of $(0.36), a 25% sequential improvement versus the prior quarter (see definition of this non-GAAP financial measure and reconciliation to GAAP, below)

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Q3 Operational Highlights

  • Achieved significant leverage improvement in marketing investment expenses, reducing marketing spend as a percentage of revenue to 81% versus 100% in the prior quarter, with continued leverage expected.
  • Total unique patients and customers served nationwide surpassed 427,000 during the quarter, up from over 360,000 in the prior quarter.
  • Telemedicine orders increased 153% to approximately 232,000.
  • Appointed seasoned investor and private equity professional Naveen Bhatia to its Board of Directors. Most notably, Mr. Bhatia served as Senior Managing Director in the Tactical Opportunities group of Blackstone for nearly a decade and as director of numerous public and private companies.

Subsequent Events

  • Completed a public offering of 3,833,334 shares of its common stock and 1,400,000 shares of its 8.875% Series A Cumulative Perpetual Preferred Stock raising approximately $55 million in net proceeds.
  • Announced transformational launch of our 50-state Virtual Primary Care business, which we expect to drive increased satisfaction with our existing patients and open the door to many new treatment areas for LifeMD.

Key Performance Metrics

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($ in 000s) Three Months Ended September 30  Y-o-Y 
Key Performance Metrics 2021 2020  % Growth 
Revenue        
Telehealth $18,541 $9,438  96%
WorkSimpli $6,406 $1,568  309%
Total Revenue $24,947 $11,006  127%
         
Subscription Revenue as % of Total 93%61% 52%
         
Platform Contribution $17,478 $8,136  115%
         
Telehealth Volume        
Total Telehealth Orders 232,293 91,955  153%
         
WorkSimpli        
Active Subscribers 139,248 35,240  295%

Management Commentary

“Q3 was an especially strong quarter for our business. Not only did we experience record revenue of $24.9 million supported by record demand for our telehealth products and services, but we demonstrated the early stages of our ability to enhance our profitability while growing our top-line aggressively. I am especially proud of our team’s ability to drive meaningful sequential improvement in our Adjusted EBITDA and expect these sequential improvements to continue as we push toward achieving our goal of Adjusted EBITDA break-even by the fourth quarter of 2022,” said Justin Schreiber, CEO of LifeMD. “Additionally, I, along with the entire team, am extremely excited about the recently announced launch of Virtual Primary Care which we believe is a game-changing step in the evolution of our company as we continue to become a disruptive force in healthcare. We expect this launch to not only diversify and strengthen our telehealth offering but also to drive meaningful long-term improvements in our already strong unit economics and retention, all while taking the holistic care we provide patient customers to an entirely new level.”

LifeMD CFO Marc Benathen, commented: “As we’ve committed to previously, we remain laser-focused on not only aggressively growing our top-line, but also scaling with gradually improving profitability. We began to demonstrate our ability to execute upon that commitment this quarter by delivering a 24% sequential improvement in Adjusted EBITDA driven by strong retention metrics in our telehealth business and further optimization of our media spend. At the same time, we grew our revenue by 127% versus prior year. Following the quarter end, we successfully completed an over-subscribed offering of Preferred and Common Stock which has put LifeMD in its strongest capital position ever and we believe can capitalize LifeMD through profitability while continuing to invest in our aggressive growth. We reiterate our expectation of achieving Adjusted EBITDA break-even by the fourth quarter of 2022.”

Q3 2021 Financial Summary

  • Revenue increased 127% to a record $24.9 million from $11.0 million in the same year-ago quarter. The WorkSimpli subsidiary, which operates PDFSimpli, an online software-as-a-service (SaaS) platform, increased 309% to $6.4 million.

  • Gross profit increased by 113% to $19.9 million, compared to $9.3 million in the same year-ago quarter. Gross margin was 80% as compared to 85% in the year-ago quarter, primarily due to product sales mix and one-time, non-cash write-off of legacy product deposits.

  • Platform Contribution, a non-GAAP financial measure, totaled $17.5 million, compared to $8.1 million in the same year-ago period (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).

  • Operating expense in the third quarter of 2021 was $32.4 million, up from $29.9 million in the same year-ago quarter with operating leverage improved by 2,300 basis points versus the prior quarter due to significant leverage realized in selling and marketing expense, general and administrative expenses and strong retention metrics. The increase in expense versus prior year was primarily due to increases in selling and marketing expenses of $9.8 million in the quarter, other operating expenses of $272,000, customer services expenses of $275,000, and development costs of approximately $13,000. General and administrative expenses decreased $7.7 million during the quarter driven by a $13.3 million decrease in stock-based compensation expense and included non-cash expenses for stock-based compensation and amortization expenses of $4.8 million.

  • Net loss attributable to common stockholders for the third quarter of 2021 was $14.4 million or $(0.54) per share, as compared to a net loss attributable to common stockholders of $24.2 million or $(1.65) per share in the third quarter of 2020.

  • Excluding $3.1 million related to stock-based compensation expense, $1.6 million related to the non-cash amortization of debt discount, $0.1 million related to depreciation and amortization expense and $0.2 million related to financing transaction expense, Adjusted EPS, a non-GAAP basis, totaled a loss of $(0.36) per share as compared to a loss of $(0.52) in the same year-ago period. Adjusted EPS improved 25% sequentially versus the prior quarter (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).

  • Adjusted EBITDA, a non-GAAP financial measure, totaled a loss of $9.0 million, compared to an adjusted EBITDA loss of $3.8 million in the same year-ago period. Adjusted EBITDA improved 24% sequentially versus the prior quarter (see definition of this non-GAAP financial measure and reconciliation to GAAP, below).

2021 Financial Outlook
The company reiterates its expectation for revenue in the full year of 2021 to total between $90 million and $100 million, which would represent growth of between 141% and 168% over the prior year.

Conference Call
LifeMD’s management will host a conference call today, November 10, 2021 at 5:00 pm ET (2:00 pm PT) to discuss the company’s financial results and outlook, followed by a question-and-answer period. Details for the call are as follows:

Toll-free dial-in number: 1-877-705-6003
International dial-in number: 1-201-493-6725
Conference ID: 13723280
Webcast: Click here

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 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, Inc. is a rapidly growing direct-to-patient telehealth company that offers cash-pay virtual medical care across all 50 states. LifeMD’s telemedicine platform enables virtual access to affordable and convenient medical treatment from licensed providers and, when appropriate, prescription medications and over-the-counter products delivered directly to the patient’s home. 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 Contact

Investor Relations Contacts
Ashley Robinson
LifeSci Advisors, LLC
arr@lifesciadvisors.com

 

LIFEMD, INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
   
        
 September 30, 2021  December 31, 2020 
        
ASSETS  
        
Current Assets       
Cash$9,446,973  $9,179,075 
Accounts receivable, net 1,497,187   648,421 
Product deposit 911,948   816,765 
Inventory, net 1,587,094   1,264,258 
Other current assets 689,355   154,876 
Total Current Assets 14,132,557   12,063,395 
        
Non-current Assets       
Right of use asset, net 200,670   274,437 
Capitalized software, net 1,929,564   375,983 
Intangible assets, net 21,614   339,840 
Equipment, net 67,240   - 
Total Non-current Assets 2,219,088   990,260 
        
Total Assets$16,351,645  $13,053,655 
        
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIT       
        
Current Liabilities       
Accounts payable and accrued expenses$18,377,877  $11,794,084 
Notes payable, net 63,400   779,132 
Deferred revenue 1,435,981   916,880 
Total Current Liabilities 19,877,258   13,490,096 
        
Long-term Liabilities       
Long-term debt, net 10,819,527   - 
Lease liability 217,238   285,323 
Contingent consideration on purchase of WorkSimpli 100,000   100,000 
Total Liabilities 31,014,023   13,875,419 
        
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, $1,142 and $1,045 per share as of September 30, 2021 and December 31, 2020, respectively 3,996,137   3,655,822 
        
Stockholders’ Deficit       
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares authorized, zero shares issued and outstanding as of September 30, 2021 and December 31, 2020 -   - 
Common stock, $0.01 par value; 100,000,000 shares authorized, 26,862,975 and 23,433,663 shares issued, 26,759,935 and 23,330,623 outstanding as of September 30, 2021 and December 31, 2020, respectively 268,630   234,337 
        
Additional paid-in capital 105,275,494   77,779,370 
Accumulated deficit (122,938,363)  (80,151,905)
  (17,394,239)  (2,138,198)
Treasury stock, 103,040 and 103,040 shares, at cost (163,701)  (163,701)
Total LifeMD, Inc. Stockholders’ Deficit (17,557,940)  (2,301,899)
        
Non-controlling interest (1,100,575)  (2,175,687)
        
Total Stockholders’ Deficit (18,658,515)  (4,477,586)
        
Total Liabilities, Mezzanine Equity and Stockholders’ Deficit$16,351,645  $13,053,655 
LIFEMD, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                
 Three Months Ended September 30, Nine Months Ended September 30,
 2021 2020 2021 2020
Net Revenues               
Teleheatlth revenue$18,540,897  $9,438,136  $47,623,822  $20,263,750 
WorkSimpli revenue 6,406,302   1,567,627   17,835,100   4,136,608 
Total Revenues, net 24,947,199   11,005,763   65,458,922   24,400,358 
                
Cost of Telehealth revenue 4,969,306   1,601,920   12,113,336   4,718,143 
Cost of WorkSimpli revenue 127,181   73,662   314,428   204,241 
Cost of revenues 5,096,487   1,675,582   12,427,764   4,922,384 
                
Gross Profit 19,850,712   9,330,181   53,031,158   19,477,974 
                
Expenses                
Selling and marketing expenses 20,293,935   10,528,833  61,372,815   21,669,046 
General and administrative expenses 10,695,663   18,441,756  28,194,305   21,868,097 
Other operating expenses 815,378   542,965  2,390,694   654,947 
Customer service expenses 505,880   230,788  1,274,392   488,455 
Development costs 131,160   118,346  435,356   288,813 
Total expenses 32,442,016   29,862,688   93,667,562   44,969,358 
                
Operating Loss (12,591,304)  (20,532,507)  (40,636,404)  (25,491,384)
                
Other Income (Expenses)               
Interest expense, net (1,824,777)  (291,096)  (2,866,150)  (1,313,010)
Gain on debt forgiveness -   -   184,914   - 
  (1,824,777)  (291,096)  (2,681,236)  (1,313,010)
                
Net Loss before provision for income taxes (14,416,081)  (20,823,603)  (43,317,640)  (26,804,394)
                
Provision for income taxes -   -   -   - 
                
Net Loss (14,416,081)  (20,823,603)  (43,317,640)  (26,804,394)
                
Net loss attributable to noncontrolling interests (62,706)  (201,233)  (531,182)  (408,180)
                
Net loss attributable to LifeMD, Inc.$(14,353,375) $(20,622,370) $(42,786,458) $(26,396,214)
                
Deemed distribution to holders of common and Series B Preferred stock -   (3,573,636)  -   (4,716,021)
                
Net loss attributable to LifeMD, Inc. common stockholders$(14,353,375) $(24,196,006) $(42,786,458) $(31,112,235)
                
Basic loss per share attributable to LifeMD, Inc. common stockholders$(0.54) $(1.65) $(1.66) $(2.47)
Diluted loss per share attributable to LifeMD, Inc. common stockholders$(0.54) $(1.65) $(1.66) $(2.47)
                
Weighted average number of common shares outstanding:               
Basic 26,684,591   14,674,693   25,820,478   12,581,401 
Diluted 26,684,591   14,674,693   25,820,478   12,581,401 
                
Adjusted EPS$(0.36) $(0.52) $(1.20) $(1.04)
LIFEMD, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
                
  Three Months Ended September 30,
 Nine Months Ended September 30,
 2021  2020  2021  2020
           
CASH FLOWS FROM OPERATING ACTIVITIES               
Net Loss$(14,416,081) $(20,823,603) $(43,317,640) $(26,804,394)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:               
Amortization of debt discount 1,567,677   77,794   2,090,236   817,118 
Amortization of capitalized software 114,062   24,416   177,926   36,001 
Amortization of intangibles 617   83,903   340,457   251,709 
Write-down of inventory -   -   57,481   - 
Depreciation of fixed assets 2,865   -   2,865   - 
Acceleration of debt discount -   -   -   500,145 
Bad debt expense -   58,470   -   58,470 
Sales return and allowances -   211,000   -   211,000 
Inventory reserves -   44,981   -   44,981 
Gain on forgiveness of debt -   -   (184,914))  - 
Operating lease payments 24,589   1,817   73,767   5,452 
Liability to issue shares for services -   -   -   32,500 
Stock issued for services -   -   -   35,200 
Stock compensation expense 3,110,816   16,364,258   7,983,891   16,898,733 
Changes in Assets and Liabilities     -         
Accounts receivable 115,121   (247,787)  (848,766))  (586,364)
Product deposit 479,816   (812,245)  (95,183))  (943,388)
Inventory 27,023   (1,094,680)  (380,317))  (953,467)
Other current assets (242,122)  (41,154)   (534,479))  72,893 
Change in operating lease liability (23,432)  (676)  (68,085))  (1,737) 
Deferred revenue 54,043   108,946   519,101   303,064 
Accounts payable and accrued expenses 1,765,865   1,546,459   6,924,110   4,426,702 
Net cash used in operating activities (7,419,141)  (4,498,101)  (27,259,550))  (5,595,382) 
                
CASH FLOWS FROM INVESTING ACTIVITIES               
Cash paid for capitalized software costs (779,160)  (330,586)  (1,731,507))  (330,586) 
Purchase of equipment (51,989)  -   (70,105))  - 
Purchase of intangible assets (22,231)  -   (22,231))  - 
Payment to seller for contingent consideration -   277,161   -   - 
Contingent consideration on business combination paid -   -   -   (400,000)
Net cash used in investing activities (853,380)  (53,425)  (1,823,843))  (730,586)
                
CASH FLOWS FROM FINANCING ACTIVITIES               
Cash proceeds from private placement offering, net -   -   13,495,270   - 
Cash proceeds from Series B Preferred Stock -   2,892,500   -   2,892,500 
Proceeds from convertible notes payable -   600,000   -   2,350,000 
Proceeds from issuance of debt instruments -   -   15,000,000   - 
Cash proceeds from sale of common stock under ATM 493,481   449,349   493,481   2,338,349 
Cash proceeds from exercise of warrants 168,610   622,763   480,609   622,763 
Cash proceeds from exercise of options 54,000   300,400   820,750   300,400 
Cash proceeds from sale of warrants -   25,000   -   25,000 
Purchase of membership interest of WorkSimpli -   -   (300,000)  - 
Distributions to non-controlling interest (36,000)  -   (108,000)  (121,223)
Proceeds from notes payable -   242,000   963,965   242,000 
Repayment of notes payable (374,834)  -   (1,494,784)  (2,498,808)
Debt issuance costs -   -   -   (15,000)
Net cash provided by financing activities 305,257   5,132,012   29,351,291   6,135,981 
                
Net (decrease) increase in cash (7,967,264)  580,486   267,898   (189,987)
                
Cash at beginning of period 17,414,237   336,151   9,179,075   1,106,624 
                
Cash at end of period$9,446,973  $916,637  $9,446,973  $916,637 
                
Cash paid for interest               
Cash paid during the period for interest$(23,121) $243,170  $120,062  $592,961 
                
Non-cash investing and financing activities:               
Cashless exercise of options$-  $-  $8,730  $- 
Cashless exercise of warrants$-  $49,551  $-  $49,551 
Principal of Paycheck Protection Program loans forgiven$-  $-  $184,914  $- 
Additional purchase of membership interest in WorkSimpli issued in performance options$-  $-  $144,002  $- 
Deemed dividend from warrant price adjustments$-  $1,216,021  $-  $1,216,021 
Deemed distribution from warrants issued with Series B Preferred Stock$-  $3,500,000  $-  $3,500,000 
Warrants issued for debt instruments$-  $-  $6,270,710  $- 
Deemed distribution from down-round provision$-  $(1,142,385) $-  $- 
Stock yet to be issued for capitalized costs$-  $-  $-  $40,000 
Deemed distribution from down-round provision on unissued shares$-  $-  $-  $194,022 
Liability to issue common stock$-  $76,348  $-  $76,348 
Shares issued for share liability$-  $1,726,000  $-  $- 
Debt issuance costs for liability to issue shares$-  $-  $-  $219,450 
Conversion of convertible notes payable and interest for Series B Preferred Stock$-  $607,500  $-  $607,500 
Stock issued for capitalized costs$-  $12,675  $-  $12,675 
                

About the Use of Non-GAAP Financial Measures:
To supplement our financial information presented in accordance with GAAP, we use Adjusted EBITDA, Adjusted EPS and Platform Contribution 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 and/or reflect discretionary investments. 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, financing transaction expense, acceleration/amortization of debt discount, inventory valuation, litigation costs 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 stock-based compensation expense, amortization of debt discount, amortization expense and financing transaction expense. We have provided below a reconciliation of Adjusted EPS to Diluted loss per share attributable to LifeMD, Inc common shareholders.

Platform Contribution is defined as operating income (loss) before general and administrative expenses (excluding Payment Processing Fees), selling and marketing expenses and other operating expenses. We consider Platform Contribution an important non-GAAP financial measure which monitors our performance based on the direct variable costs of delivering the products and services we sell across our brands. We believe Platform Contribution is useful to measure whether we are controlling our direct variable costs associated with our platform brands as well as how effectively we retain our providers’ patient and customer subscribers.

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, Adjusted EPS and Platform Contribution may vary from that of others in our industry. None of Adjusted EBITDA, Adjusted EPS or Platform Contribution should be considered as an alternative to net loss before taxes, net loss, 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)           
  Three months ended September 30,  Nine months ended September 30, 
  2021 2020 2021 2020
Net (loss) attributable to common shareholders $(14,353,375) $(24,196,006) $(42,786,458) $(31,112,235)
             
Interest expense (excluding debt discount and acceleration of debt) 142,415  291,096  435,598  1,313,010 
Depreciation & Amortization Expense 117,544  108,319  521,248  287,710 
Amortization of debt discount 1,567,677  77,794  2,090,236  817,118 
Financing transactions expense 186,682  -  1,259,072  62,012 
Acceleration of debt discount -  -  -  500,145 
Inventory valuation adjustment -  -  -  769,378 
Litigation Costs 64,541  -  279,666  - 
Accrued interest on Series B Stock 114,685  -  340,315  - 
Deemed distribution to holders of Series B Preferred stock -  3,573,636  -  4,716,021 
Stock-based compensation expense 3,110,816  16,364,258  7,983,891  16,898,733 
             
Adjusted EBITDA $(9,049,016) $(3,780,903) $(29,876,433) $(5,748,108)
             
Reconciliation of GAAP Diluted Loss per Share Attributable to Common
Shareholders to Adjusted EPS
            
  Three months ended September 30,  Nine months ended September 30, 
  2021 2020 2021 2020
Diluted loss per share attributable to LifeMD, Inc. common shareholders $(0.54) $(1.65) $(1.66) $(2.47)
             
Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS            
Stockholders Compensation Expense 0.12  1.12  0.31  1.34 
Financing Transaction Expense 0.00  -  0.05  0.01 
Depreciation & Amortization Expense 0.00  0.01  0.02  0.02 
Amortization of debt discount 0.06  0.00  0.08  0.06 
             
Adjusted EPS $(0.36) $(0.52) $(1.20) $(1.04)
             
Reconciliation of Operating Loss to Platform Contribution           
(in whole numbers, unaudited)           
   Three months ended September 30,  Nine months ended September 30, 
  2021 2020 2021 2020
Operating loss $(12,591,304) $(20,532,507) $(40,636,404) $(25,491,384)
             
Selling and marketing expenses 20,293,935  10,528,833  61,372,815  21,669,046 
General and administrative expenses 10,695,663  18,441,756  28,194,305  21,868,097 
Other operating expenses 815,378  542,965  2,390,694  654,947 
Payment Processing Fees (1,735,205) (844,566) (4,225,953) (1,762,351)
             
Platform Contribution $17,478,467  $8,136,481  $47,095,458  $16,938,355