Q - LifeMD,

Previous wording

The LifeMD telehealth platform integrates best-in-class capabilities including a 50-state medical group, a nationwide pharmacy network, a wholly-owned affiliated commercial pharmacy, nationwide laboratory and diagnostic testing capabilities, a fully integrated electronic medical records (“EMR”) system and a patient care and service call center. These capabilities are integrated by an industry-leading, proprietary telehealth technology that supports a broad range of primary care, chronic disease and lifestyle healthcare needs. Currently, LifeMD treats approximately 291,000 active patient subscribers across a range of their medical needs including primary care, men’s sexual health, weight management, sleep, hair loss and hormonal therapy by providing telehealth clinical services and prescription and over-the-counter (“OTC”) treatments, as medically appropriate. Our virtual primary care services are primarily offered on a subscription basis. Since inception, we have helped more than 1,191,000 customers and patients by providing them with greater access to high-quality, convenient, and affordable care.

Current wording

The LifeMD telehealth platform integrates best-in-class capabilities including a 50-state medical group, a nationwide pharmacy network, a wholly-owned affiliated commercial pharmacy, nationwide laboratory and diagnostic testing capabilities, a fully integrated electronic medical records (“EMR”) system and a patient care and service call center. These capabilities are integrated by an industry-leading, proprietary telehealth technology that supports a broad range of primary care, chronic disease and lifestyle healthcare needs. Currently, LifeMD treats approximately 297,000 active patient subscribers across a range of their medical needs including primary care, men’s sexual health, weight management, sleep, hair loss and hormonal therapy by providing telehealth clinical services and prescription and over-the-counter (“OTC”) treatments, as medically appropriate. Our virtual primary care services are primarily offered on a subscription basis. Since inception, we have helped approximately 1,261,000 customers and patients by providing them with greater access to high-quality, convenient, and affordable care.

Previous wording

Our telehealth revenue increased 70% for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. Total revenue from recurring subscriptions is approximately 86%. In addition to our telehealth business, we own 73.3% of WorkSimpli, which operates PDFSimpli, a software as a service platform for converting, signing, editing, and sharing PDF documents. WorkSimpli revenue from recurring subscriptions is 100%.

Current wording

Our telehealth revenue increased 48% for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. Total revenue from recurring subscriptions is approximately 94%. In addition to our telehealth business, we own 73.3% of WorkSimpli, which operates PDFSimpli, a software as a service platform for converting, signing, editing, and sharing PDF documents. WorkSimpli revenue from recurring subscriptions is 100%.

Previous wording

Our offerings are sold to consumers on a primarily subscription basis, thus creating a relationship-driven patient experience to bolster retention rates and recurring revenue. Our offerings range from prescription medication and OTC products fulfilled on a recurring basis, to primary care and weight management clinical services delivered by a team of dedicated medical providers. In general, our offerings seek to serve a patient throughout the lifecycle of their urgent, chronic, and lifestyle healthcare needs. As appropriate, prescription medications and OTC products are filled by our in-house mail order pharmacy or third-party pharmacy fulfilment partners, and are shipped directly to patients. The number of patients and customers we serve across the nation continues to increase at a robust pace, with more than 1,191,000 individuals having purchased our products and services to date.

Current wording

Our offerings are sold to consumers on a primarily subscription basis, thus creating a relationship-driven patient experience to bolster retention rates and recurring revenue. Our offerings range from prescription medication and OTC products fulfilled on a recurring basis, to primary care and weight management clinical services delivered by a team of dedicated medical providers. In general, our offerings seek to serve a patient throughout the lifecycle of their urgent, chronic, and lifestyle healthcare needs. As appropriate, prescription medications and OTC products are filled by our in-house mail order pharmacy or third-party pharmacy fulfilment partners, and are shipped directly to patients.

Previous wording

During the three months ended March 31, 2025, LifeMD executed its integration with LillyDirect’s (“Lilly”) pharmacy provider, Gifthealth, to offer streamlined access of single-dose vials of Lilly’s prescription obesity treatment Zepbound® (tirzepatide) to the Company’s eligible patients.

Current wording

During the six months ended June 30, 2025, LifeMD executed its integration with LillyDirect’s (“Lilly”) pharmacy provider, Gifthealth, to offer streamlined access of single-dose vials of Lilly’s prescription obesity treatment Zepbound® (tirzepatide) to the Company’s eligible patients. LifeMD also announced plans to offer a simplified pathway for cash-pay patients to access all FDA-approved dose strengths of Wegovy® directly within LifeMD’s virtual care platform.

Previous wording

WorkSimpli is a leading provider of workplace and document services for consumers, gig workers, and small businesses. WorkSimpli operates the following brands: (1) PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents, (2) ResumeBuild, a leading provider of digital resume and cover letter services, (3) SignSimpli, a digital signature platform and (4) LegalSimpli, a provider of legal forms for consumers and small businesses. As a result of a series of restructuring transactions, the Company’s ownership interest in WorkSimpli is 73.3%. WorkSimpli had more than 158,000 active subscriptions as of March 31, 2025.

Current wording

WorkSimpli is a leading provider of workplace and document services for consumers, gig workers, and small businesses. WorkSimpli operates the following brands: (1) PDFSimpli, an online software as a service platform that allows users to create, edit, convert, sign, and share PDF documents, (2) ResumeBuild, a leading provider of digital resume and cover letter services, (3) SignSimpli, a digital signature platform and (4) LegalSimpli, a provider of legal forms for consumers and small businesses. As a result of a series of restructuring transactions, the Company’s ownership interest in WorkSimpli is 73.3%. WorkSimpli had approximately 149,500 active subscriptions as of June 30, 2025.

Previous wording

Total revenue, net. Revenues for the three months ended March 31, 2025 were approximately $65.7 million, an increase of 49% compared to approximately $44.1 million for the three months ended March 31, 2024. The increase in revenues was attributable to the increase in telehealth revenue of 70%. Telehealth revenue accounts for 80% of total revenue and has increased during the three months ended March 31, 2025 due to an increase in online sales demand primarily for LifeMD primary care which experienced an increase of approximately $22.5 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. WorkSimpli revenue accounts for 20% of total revenue and has stayed consistent year over year.

Current wording

Total revenue, net. Revenues for the three months ended June 30, 2025 were approximately $62.2 million, an increase of 23% compared to approximately $50.7 million for the three months ended June 30, 2024. The increase in revenues was attributable to the increase in telehealth revenue of 30%. Telehealth revenue accounts for 78% of total revenue and has increased during the three months ended June 30, 2025 due to an increase in telehealth subscription revenue, primarily for LifeMD primary care which experienced an increase of approximately $15.3 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, partially offset by a decline in telehealth product revenue of approximately $1.1 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to a reduction in online sales demand. WorkSimpli revenue accounts for 22% of total revenue and has increased by approximately $425 thousand, or 3%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to an increase in online sales demand.

Previous wording

Total cost of revenue. Total cost of revenue consists of the cost of (1) telehealth revenues, which primarily include product costs, pharmacy fulfilment costs, physician consult fees, and shipping costs directly attributable to our prescription and OTC products and (2) WorkSimpli revenue consisting primarily of information technology fees related to providing the services made available on our online platform. Total cost of revenue increased by approximately 88% to approximately $8.6 million for the three months ended March 31, 2025 compared to approximately $4.6 million for the three months ended March 31, 2024. The combined cost of revenue increase was due to increased sales volume during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. Telehealth costs increased to 16% of associated telehealth revenues experienced during the three months ended March 31, 2025, from 14% of associated telehealth revenues during the three months ended March 31, 2024. WorkSimpli costs increased to 4% of associated WorkSimpli revenues for the three months ended March 31, 2025 as compared to 3% of associated WorkSimpli revenues for the three months ended March 31, 2024.

Current wording

Total cost of revenue. Total cost of revenue consists of the cost of (1) telehealth revenues, which primarily include product costs, pharmacy fulfilment costs, physician consult fees, and shipping costs directly attributable to our prescription and OTC products and (2) WorkSimpli revenue consisting primarily of information technology fees related to providing the services made available on our online platform. Total cost of revenue increased by approximately 48% to approximately $7.4 million for the three months ended June 30, 2025 compared to approximately $5.0 million for the three months ended June 30, 2024. The combined cost of revenue increase was due to increased sales volume during the three months ended June 30, 2025 when compared to the three months ended June 30, 2024. Telehealth costs increased to 14% of associated telehealth revenues experienced during the three months ended June 30, 2025, from 12% of associated telehealth revenues during the three months ended June 30, 2024. WorkSimpli costs were 4% of associated WorkSimpli revenues for the three months ended June 30, 2025 and for the three months ended June 30, 2024.

Previous wording

Gross profit. Gross profit increased by approximately 44% to approximately $57.1 million for the three months ended March 31, 2025 compared to approximately $39.5 million for the three months ended March 31, 2024. Gross profit as a percentage of revenues was approximately 87% for the three months ended March 31, 2025 as compared to approximately 90% for the three months ended March 31, 2024. Gross profit as a percentage of revenues for telehealth was 84% for the three months ended March 31, 2025 compared to 86% for the three months ended March 31, 2024, and for WorkSimpli was 96% for the three months ended March 31, 2025 compared to 97% for the three months ended March 31, 2024. The increase in sales volume and demand for LifeMD primary care partially offset by an increase in shipping and physician consult fees have contributed to the increase in gross profit. The increase in shipping and physician consult fees also contributed to the decrease in gross profit as a percentage of telehealth revenue.

Current wording

Gross profit. Gross profit increased by approximately 20% to approximately $54.8 million for the three months ended June 30, 2025 compared to approximately $45.6 million for the three months ended June 30, 2024. Gross profit as a percentage of revenues was approximately 88% for the three months ended June 30, 2025 as compared to approximately 90% for the three months ended June 30, 2024. Gross profit as a percentage of revenues for telehealth was 86% for the three months ended June 30, 2025 compared to 88% for the three months ended June 30, 2024, and for WorkSimpli was 96% for the three months ended June 30, 2025 and for the three months ended June 30, 2024. The increase in sales volume and demand for LifeMD primary care partially offset by an increase in shipping and physician consult fees, contributed to the increase in gross profit. The increase in shipping and physician consult fees also contributed to the decrease in gross profit as a percentage of telehealth revenue.

Previous wording

Total expenses. Operating expenses for the three months ended March 31, 2025 were approximately $54.5 million, as compared to approximately $45.7 million for the three months ended March 31, 2024. This represents an increase of 19%, or approximately $8.8 million. The increase is primarily attributable to:

Current wording

Total expenses. Operating expenses for the three months ended June 30, 2025 were approximately $55.7 million, as compared to approximately $51.9 million for the three months ended June 30, 2024. This represents an increase of 7%, or approximately $3.7 million. The increase is primarily attributable to:

Previous wording

Interest expense, net. Interest expense, net consists of interest expense related to the Avenue Facility, partially offset by interest income on the Company’s cash account balances for the three months ended March 31, 2025 and interest expense related to the Avenue Facility and notes payable, partially offset by interest income on the Company’s cash account balances for the three months ended March 31, 2024. Interest expense increased by approximately $149 thousand during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to an increase in interest expensed on the Avenue Facility during the three months ended March 31, 2025.

Current wording

Interest expense, net. Interest expense, net consists of interest expense related to the Avenue Facility, partially offset by interest income on the Company’s cash account balances for the three months ended June 30, 2025 and interest expense related to the Avenue Facility and notes payable, partially offset by interest income on the Company’s cash account balances for the three months ended June 30, 2024. Interest expense increased by approximately $132 thousand during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to an increase in interest expensed on the Avenue Facility during the three months ended June 30, 2025.

Previous wording

Working capital increased by approximately $593 thousand during the three months ended March 31, 2025. The increase in current assets is primarily attributable to an increase in accounts receivable of approximately $2 million, partially offset by a decrease in cash of approximately $611 thousand and a decrease in other current assets of approximately $445 thousand. Current liabilities increased by approximately $646 thousand, which was primarily attributable to an increase in current portion of long-term debt of approximately $3.2 million and an increase in deferred revenue of approximately $145 thousand, partially offset by a decrease in accounts payable and accrued expenses of approximately $2.6 million.

Current wording

Working capital decreased by approximately $3.0 million during the six months ended June 30, 2025. The increase in current assets is primarily attributable to an increase in cash of approximately $1.2 million and an increase in inventory of approximately $454 thousand, partially offset by a decrease in accounts receivable of $888 thousand and a decrease other current assets of approximately $707 thousand. Current liabilities increased by approximately $3.3 million, which was primarily attributable to an increase in current portion of long-term debt of approximately $3.5 million and an increase in accounts payable and accrued expenses of approximately $2.4 million, partially offset by a decrease in deferred revenue of approximately $2.7 million.

Previous wording

Net cash provided by operating activities was approximately $3.1 million for the three months ended March 31, 2025, as compared with approximately $5.2 million for the three months ended March 31, 2024. The significant factors contributing to the net cash provided by operating activities during the three months ended March 31, 2025, include: (1) the Company’s net income of $1.9 million, (2) $2.8 million in non-cash depreciation and amortization and (3) $2.5 million in non-cash stock-based compensation charges, partially offset by a decrease in accounts payable and accrued expenses of $2.6 million. The significant factors contributing to the net cash provided by operating activities during the three months ended March 31, 2024, include: (1) an increase in deferred revenue of $4.4 million, (2) an increase in accounts payable and accrued expenses of $2.6 million, (3) $2.5 million in non-cash stock-based compensation charges and (4) $2.2 million in non-cash depreciation and amortization, partially offset by the Company’s net loss of $6.6 million.

Current wording

Net cash provided by operating activities was approximately $11.7 million for the six months ended June 30, 2025, as compared with approximately $9.7 million for the six months ended June 30, 2024. The significant factors contributing to the net cash provided by operating activities during the six months ended June 30, 2025, include: (1) $5.7 million in non-cash depreciation and amortization, (2) $4.6 million in non-cash stock-based compensation charges, (3) the Company’s net income of $347 thousand, (4) an increase in accounts payable and accrued expenses of $2.4 million and (5) an increase in accounts receivable of $888 thousand, partially offset by a decrease in deferred revenue of $2.7 million. The significant factors contributing to the net cash provided by operating activities during the six months ended June 30, 2024, include: (1) $6.7 million in non-cash stock-based compensation charges, (2) an increase in deferred revenue of $6.3 million, (3) an increase in accounts payable and accrued expenses of $5.4 million and (4) $4.6 million in non-cash depreciation and amortization. These increases were partially offset by the Company’s net loss of $13.5 million for the six months ended June 30, 2024.

Previous wording

Net cash used in investing activities for the three months ended March 31, 2025 was approximately $2.9 million, as compared with approximately $2.2 million for the three months ended March 31, 2024. Net cash used in investing activities for the three months ended March 31, 2025, was due to cash paid for capitalized software costs of approximately $2.7 million, and cash paid for the purchase of equipment of approximately $122 thousand. Net cash used in investing activities for the three months ended March 31, 2024, was due to cash paid for capitalized software costs of approximately $2.0 million, and cash paid for the purchase of equipment of approximately $176 thousand.

Current wording

Net cash used in investing activities for the six months ended June 30, 2025 was approximately $6.6 million, as compared with approximately $5.3 million for the six months ended June 30, 2024. Net cash used in investing activities for the six months ended June 30, 2025, was due to cash paid for capitalized software costs of approximately $5.6 million, and cash paid for the purchase of equipment of approximately $918 thousand. Net cash used in investing activities for the six months ended June 30, 2024, was primarily due to cash paid for capitalized software costs of approximately $4.5 million, and cash paid for the purchase of equipment of approximately $818 thousand.

Previous wording

Net cash used in financing activities for the three months ended March 31, 2025 was approximately $813 thousand as compared with approximately $1.0 million for the three months ended March 31, 2024. Net cash used in financing activities for the three months ended March 31, 2025, consisted of: (1) preferred stock dividends of $777 thousand, and (2) distributions to non-controlling interest of $36 thousand. Net cash used in financing activities for the three months ended March 31, 2024, consisted of: (1) preferred stock dividends of $777 thousand, (2) repayments of notes payable of approximately $212 thousand, (3) distributions to non-controlling interest of $36 thousand, and (4) the final contingent consideration payment made related to the ResumeBuild acquisition of approximately $31 thousand, partially offset by proceeds from the exercise of options of approximately $8 thousand.

Current wording

Net cash used in financing activities for the six months ended June 30, 2025 was approximately $3.9 million as compared with approximately $1.9 million for the six months ended June 30, 2024. Net cash used in financing activities for the six months ended June 30, 2025, consisted of: (1) principal repayments on the Avenue Credit Agreement as defined below of approximately $2.1 million, (2) preferred stock dividends of $1.6 million, and (3) distributions to non-controlling interest of $312 thousand. Net cash used in financing activities for the six months ended June 30, 2024, consisted of: (1) preferred stock dividends of $1.6 million, (2) repayments of notes payable of approximately $315 thousand, (3) distributions to non-controlling interest of $72 thousand, and (4) the final contingent consideration payment made related to the ResumeBuild acquisition of approximately $31 thousand, partially offset by proceeds from the exercise of options of approximately $108 thousand.

Previous wording

On March 21, 2023, the Company entered into and closed on a loan and security agreement (the “Avenue Credit Agreement”), and a supplement to the Credit Agreement (the “Avenue Supplement”), with Avenue Venture Opportunities Fund II, L.P. and Avenue Venture Opportunities Fund, L.P. (collectively, “Avenue”). The Avenue Credit Agreement provides for a convertible senior secured credit facility of up to an aggregate amount of $40 million, comprised of the following: (1) $15 million in term loans funded at closing, (2) $5 million of additional committed term loans which the Company received on September 26, 2023 under the First Amendment to the Avenue Credit Agreement (the “Avenue First Amendment”) and (3) $20 million of additional uncommitted term loans, collectively referred to as the “Avenue Facility”. The Avenue Facility matures on October 1, 2026. The Company issued Avenue warrants to purchase $1.2 million of the Company’s common stock at an exercise price of $1.24, subject to adjustments. In addition, Avenue may convert up to $2 million of the $15 million in term loans funded at closing into shares of the Company’s common stock at any time while the loans are outstanding, at a price per share equal to $1.49. Proceeds from the Avenue Facility were used to repay the Company’s outstanding notes payable balances with CRG Financial and are expected to be used for general corporate purposes.

Current wording

On March 21, 2023, the Company entered into and closed on a loan and security agreement (the “Avenue Credit Agreement”), and a supplement to the Credit Agreement (the “Avenue Supplement”), with Avenue Venture Opportunities Fund II, L.P. and Avenue Venture Opportunities Fund, L.P. (collectively, “Avenue”). The Avenue Credit Agreement provides for a convertible senior secured credit facility of up to an aggregate amount of $40 million, comprised of the following: (1) $15 million in term loans funded at closing, (2) $5 million of additional committed term loans which the Company received on September 26, 2023 under the First Amendment to the Avenue Credit Agreement (the “Avenue First Amendment”) and (3) $20 million of additional uncommitted term loans, collectively referred to as the “Avenue Facility”. The Avenue Facility matures on October 1, 2026. The Company issued Avenue warrants to purchase $1.2 million of the Company’s common stock at an exercise price of $1.24, subject to adjustments, of which $660 thousand has been exercised. In addition, Avenue has converted $2 million of the $15 million in term loans funded at closing into shares of the Company’s common stock, at a price per share equal to $1.49. Proceeds from the Avenue Facility were used to repay the Company’s outstanding notes payable balances with CRG Financial and are expected to be used for general corporate purposes. On August 5, 2025, the Company paid the remaining $14.0 million in outstanding principal payments on the Avenue Facility and the prepayment penalty as noted in the Avenue Credit Agreement. As of August 5, 2025, there are no remaining principal payments on the Avenue Facility.

Previous wording

On November 15, 2023, Avenue converted $1 million of the principal amount of the outstanding term loans into shares of the Company’s common stock. This resulted in 672,042 shares of common stock issued to Avenue. Additionally on November 15, 2023, Avenue exercised 96,773 of the Avenue Warrants on a cashless basis resulting in 79,330 shares of the Company’s common stock issued. As of March 31, 2025, there was $19.0 million outstanding under the Avenue Facility.

Current wording

On May 29, 2025, Avenue converted $1 million of the principal amount of the outstanding term loans into shares of the Company’s common stock. This resulted in 672,042 shares of common stock issued to Avenue. Additionally on May 29, 2025, Avenue exercised 435,484 of the Avenue Warrants on a cashless basis resulting in 388,650 shares of the Company’s common stock issued. As of June 30, 2025, there was $15.9 million in principal outstanding under the Avenue Facility.

Previous wording

The Company entered into an At Market Issuance Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald & Co. relating to the sale of its common stock. In accordance with the terms of the ATM Sales Agreement, the Company may, but is not obligated to, offer and sell, from time to time, shares of common stock, through or to the Agents, acting as agent or principal. Sales of common stock, if any, will be made by any method permitted that is deemed an “at the market offering” as defined in Rule 415 under the Securities Act. On June 7, 2024, the Company filed a shelf registration statement on Form S-3 under the Securities Act, which was declared effective on July 18, 2024 (the “2024 Shelf”). Under the 2024 Shelf at the time of effectiveness, the Company had the ability to raise up to $150.0 million by selling common stock, preferred stock, debt securities, warrants, and units including $53.3 million of its common stock under the ATM Sales Agreement. As of March 31, 2025, the Company had $53.3 million available under the ATM Sales Agreement, which is part of the $150.0 million available under the 2024 Shelf.

Current wording

The Company entered into an At Market Issuance Sales Agreement (the “ATM Sales Agreement”) with B. Riley Securities, Inc. and Cantor Fitzgerald & Co. relating to the sale of its common stock. In accordance with the terms of the ATM Sales Agreement, the Company may, but is not obligated to, offer and sell, from time to time, shares of common stock, through or to the Agents, acting as agent or principal. Sales of common stock, if any, will be made by any method permitted that is deemed an “at the market offering” as defined in Rule 415 under the Securities Act. On June 7, 2024, the Company filed a shelf registration statement on Form S-3 under the Securities Act, which was declared effective on July 18, 2024 (the “2024 Shelf”). Under the 2024 Shelf at the time of effectiveness, the Company had the ability to raise up to $150.0 million by selling common stock, preferred stock, debt securities, warrants, and units including $53.3 million of its common stock under the ATM Sales Agreement. As of June 30, 2025, the Company had $53.3 million available under the ATM Sales Agreement, which is part of the $150.0 million available under the 2024 Shelf. Refer to Note 13-Subsequent Events for sales of common stock under the ATM Sales Agreement subsequent to June 30, 2025.

Previous wording

As of May 5, 2025, the Company has a current cash balance of approximately $24.5 million. The Company reviewed its forecasted operating results and sources and uses of cash used in management’s assessment, which included the available financing and consideration of positive and negative evidence impacting management’s forecasts, market, and industry factors. Positive indicators that lead to the Company’s expectation that it will have sufficient cash over the next 12 months following the date of this report include: (1) the Company’s continued strengthening of its revenues, reduction in losses and improvement of operational efficiencies across the business, (2) the expected improvement in its cash burn rate over the next 12 months and positive operating cash flows during the three months ended March 31, 2025, (3) cash on hand of $34.4 million as of March 31, 2025, (4) $53.3 million available under the ATM Sales Agreement, which is part of the $150.0 million available under the 2024 Shelf, (5) management’s ability to curtail expenses, if necessary, and (6) the overall market value of the telehealth industry, which the Company believes will continue to drive interest in the Company as evidenced by the collaboration with Medifast, Inc. (“Medifast”) during the year ended December 31, 2024. The Company received $10 million to support the collaboration, funding enhancements to the Company platform, operations and supporting infrastructure, of which $5 million was paid at the closing on December 12, 2023, $2.5 million was paid during the three months ended March 31, 2024, and the remaining $2.5 million was paid during the three months ended June 30, 2024 (the “Medifast Collaboration”).

Current wording

As of August 4, 2025, the Company has a current cash balance of approximately $36.5 million. The Company reviewed its forecasted operating results and sources and uses of cash used in management’s assessment, which included the available financing and consideration of positive and negative evidence impacting management’s forecasts, market, and industry factors. Positive indicators that lead to the Company’s expectation that it will have sufficient cash over the next 12 months following the date of this report include: (1) the Company’s continued strengthening of its revenues, reduction in losses and improvement of operational efficiencies across the business, (2) the expected improvement in its cash burn rate over the next 12 months and positive operating cash flows during the six months ended June 30, 2025, (3) cash on hand of $36.2 million as of June 30, 2025, (4) $44.6 million available under the ATM Sales Agreement as of August 4, 2025, which is part of the $150.0 million available under the 2024 Shelf,, (5) management’s ability to curtail expenses, if necessary, and (6) the overall market value of the telehealth industry, which the Company believes will continue to drive interest in the Company as evidenced by the collaboration with Medifast, Inc. during the year ended December 31, 2024.

Previous wording

Our significant accounting policies are more fully described in Note 2—Basis of Presentation and Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements included in this report. We believe that these accounting policies are critical for one to fully understand and evaluate our financial condition and results of operations.

Current wording

Our significant accounting policies are more fully described in Note 2—Basis of Presentation and Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements included in this report.