LifeMD, Inc. Segments Disclosure
NOTE 15 – SEGMENT DATA
On November 4, 2025, we sold our majority ownership interest in WorkSimpli to Lion Buyer, LLC. WorkSimpli is classified as discontinued operations for all periods presented in these consolidated financial statements. As a result, the Company’s portfolio of brands within continuing operations are now managed as a single operating segment on a consolidated basis. Our CODM is our Chief Executive Officer. The CODM uses segment operating income or loss to determine segment profitability in order to assess performance and allocate resources.
Relevant segment data as of December 31, 2025 and December 31, 2024 is as follows:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Telehealth revenue, net | $ | 194,055,198 | $ | 154,824,075 | ||||
| Cost of telehealth revenue | 27,714,808 | 21,440,799 | ||||||
| Significant Segment Expenses: | ||||||||
| Selling and marketing expenses | 86,074,473 | 70,102,961 | ||||||
| Payroll expenses | 30,432,651 | 30,486,701 | ||||||
| Merchant processing fees | 7,678,590 | 7,188,539 | ||||||
| Other general and administrative expenses | 32,019,591 | 27,582,904 | ||||||
| Other segment items(1) | 17,804,779 | 18,424,159 | ||||||
| Segment operating loss | (7,669,694 | ) | (20,401,988 | ) | ||||
| Interest expense, net | (1,360,967 | ) | (2,175,405 | ) | ||||
| Loss on debt extinguishment | (1,155,851 | ) | ||||||
| Loss from continuing operations before income taxes | $ | (10,186,512 | ) | $ | (22,577,393 | ) | ||
| (1) | Other segment items include stock-based compensation and depreciation and amortization. |
| December 31, | ||||||||
| Total Assets | 2025 | 2024 | ||||||
| Telehealth | $ | 70,411,319 | $ | 65,976,661 | ||||
| Assets of discontinued operations | 10,119,636 | |||||||
| Consolidated | $ | 70,411,319 | $ | 76,096,297 | ||||
Total expenditures for purchases of capitalized software, equipment, and intangible assets, which are reported on the Company’s consolidated statements of cash flows totalled $9.5 million and $8.2 million for our Telehealth segment during the years ended December 31, 2025 and 2024, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 7, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.