LifeMD Reports Fourth Quarter 2023 Results

• Fourth quarter revenue increased 60% year-over-year to $44.9 million with Telehealth revenues increasing 90% versus the year-ago period.
  
• Adjusted EPS of $0.15 per share compared with $0.02 in the year-ago period.
• Consolidated adjusted EBITDA of $5.5 million compared with $1.0 million in the year-ago period.
• Weight Management subscribers exceeded 22,000 as of year-end 2023, ahead of previous guidance.
• Telehealth subscribers grew 27% year-over-year to a record 215,000 patients at year-end 2023.
  

Conference call begins at 4:30 p.m. Eastern time today

NEW YORK, March 11, 2024 (GLOBE NEWSWIRE) -- LifeMD, Inc. (Nasdaq: LFMD), a leading provider of virtual primary care, today reported financial results for the three and twelve months ended December 31, 2023.   

Management Commentary

“2023 was a record-setting year for LifeMD, characterized by sharp increases in revenue, telehealth subscribers and profitability. During the year, we launched our GLP-1 weight management program which has rapidly grown to become one of the leading providers of medically supported weight loss management services nationwide. In less than nine months, we scaled this business to over 22,000 subscribers and growing. Year to date in 2024, we continue to see record daily performance in the sale of new weight management subscriptions and at a rate in excess of our previous 2024 guidance. We demonstrated the tremendous value of our proprietary telehealth platform and dedicated 50-state, affiliated medical group through the execution of a substantial platform license and investment agreement with Medifast that provided LifeMD with a $10 million collaboration fee plus a $10 million equity investment,” said Justin Schreiber, Chairman and CEO of LifeMD. “Our RexMD business, once again posted double-digit revenue growth with robust contribution margins that continued to exceed 30%. Looking ahead, we are exceptionally well-positioned to meet or exceed our 2024 financial guidance while continuing to expand our position as a market leading disruptor in telemedicine.”

“We exited 2023 with the strongest financial position in our company’s history and are well capitalized to execute upon our aggressive expansion goals. Last year, we produced record cash flow from operations of approximately $9 million compared with negative operating cash flow of almost $23 million in 2022. We achieved this growth in profitability while simultaneously increasing consolidated net revenues by 28% versus the prior year. As a result of the strong performance we’ve seen across our business, led by performance in our growing GLP-1 weight management program, we are raising our 2024 revenue guidance to at least $200 million, up from previous guidance of $195 to $205 million. As this guidance implies, we expect 2024 revenue growth of at least 31% and we re-affirm guidance for adjusted EBITDA growth of 67%,” commented Marc Benathen, Chief Financial Officer of LifeMD.

Fourth Quarter Financial Highlights

• Revenue increased 60% year-over-year to $44.9 million.
• Telehealth revenue increased 90% versus the year-ago period and 28% sequentially versus the third quarter of 2023. WorkSimpli revenue increased 16% versus the year-ago period.
• The number of telehealth active subscribers increased 27% over the year-ago period to approximately 215,000.
• The number of weight management subscribers exceeded 22,000 as of year-end 2023, a net gain of approximately 12,000 subscribers sequentially versus the third quarter of 2023.
• Gross margin expanded to a record 88.1%, up from 85.5% in the year-ago period.
• GAAP net loss was $4.5 million or $0.12 per share, compared with a GAAP net loss of $12.7 million or $0.40 per share in the year-ago period.
• Adjusted EBITDA increased to $5.5 million compared with $1.0 million in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.15 compared with $0.02 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Generated positive GAAP free cash flow of $3.5 million and exited the year with over $33 million of cash.
  

Full Year 2023 Financial Highlights

• Revenue increased 28% year-over-year to $152.5 million.
• Telehealth revenue increased 19% versus 2022. WorkSimpli revenue increased 50% versus 2022.
• Gross margin expanded to a record 87.6%, up from 84.3% in the year-ago period.
• GAAP net loss was $23.7 million or $0.70 per share, compared with GAAP net loss of $48.6 million or $1.57 per share in the year-ago period.
• Adjusted EBITDA increased to $12.0 million compared with a loss of $14.1 million in 2022 (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Adjusted diluted EPS was $0.35 compared with a loss of $0.45 in the year-ago period (see definition below of this non-GAAP financial measure and reconciliation to GAAP).
• Generated full year positive GAAP cash flow from operations of $8.8 million, as compared with negative cash flow from operations in 2022 of $22.9 million.
  

Fourth Quarter Key Performance Metrics

($ in 000s)		Three Months Ended Dec 31,							Y-o-Y
Key Performance Metrics			2023			2022			% Growth
Revenue
Telehealth		$	31,256		$	16,419			90	%
WorkSimpli		$	13,604		$	11,701			16	%
Total Revenue		$	44,860		$	28,120			60	%
Subscription Revenue as % of Total			96	%		94	%		2	%
Active Subscribers
Telehealth Active Subscribers			215,203			169,065			27	%
WorkSimpli Active Subscribers			158,364			167,751			-6	%

Financial Guidance

For the first quarter of 2024, the Company expects:

• Revenue to be between $42 million and $43 million.
• Adjusted EBITDA to be between $1 million and $2 million.
• Cash-basis adjusted EBITDA (adjusted EBITDA including the increase in Deferred Revenue from multi-month, prepaid subscriptions primarily from our weight management program) is expected to be between $5 million and $6 million.
  

For the full year 2024, the Company expects:

• Revenue to be at least $200 million reflecting performance to date in our GLP-1 weight management program exceeding previous guidance, raised from previous guidance of $195 million to $205 million.
• Adjusted EBITDA guidance of between $18 million and $22 million, consistent with previous guidance.

Conference Call

LifeMD’s management will host a conference call today at 4:30 p.m. Eastern time to discuss the Company’s financial results and outlook, and answer questions. Details for the call are as follows:

Toll-free dial-in number:	877-704-4453
International dial-in number:	201-389-0920
Conference ID:	13743864

A replay of the webcast will be available in the Investors section of the Company’s website at ir.lifemd.com.

About LifeMD

LifeMD is a leading provider of virtual primary care. LifeMD offers telemedicine, laboratory and pharmacy services, and specialized treatment across more than 200 conditions, including primary care, men’s and women's health, weight management, and hormone therapy. The Company leverages a vertically-integrated, proprietary digital care platform, a 50-state affiliated medical group, and a U.S.-based patient care center to increase access to high-quality and affordable care. For more information, please visit ir.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.

Investor Contact
LifeMD, Inc.
Marc Benathen, CFO
marc@lifemd.com

Media Contact
press@lifemd.com

Tables to Follow
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LIFEMD, INC.
CONSOLIDATED BALANCE SHEETS
	December 31, 2023				December 31, 2022
ASSETS
Current Assets
Cash	$	33,146,725			$	3,958,957
Accounts receivable, net		5,277,250				2,834,750
Product deposit		485,850				127,265
Inventory, net		2,759,932				3,703,363
Other current assets		934,510				687,022
Total Current Assets		42,604,267				11,311,357
Non-current Assets
Equipment, net		476,303				476,441
Right of use asset		594,897				1,206,009
Capitalized software, net		11,795,979				8,840,187
Intangible assets, net		3,009,263				3,831,859
Total Non-current Assets		15,876,442				14,354,496
Total Assets	$	58,480,709			$	25,665,853
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable	$	11,084,855			$	10,106,793
Accrued expenses		13,937,494				12,166,509
Notes payable, net		327,597				2,797,250
Current operating lease liabilities		603,180				756,093
Deferred revenue		8,828,598				5,547,506
Total Current Liabilities		34,781,724				31,374,151
Long-term Liabilities
Long-term debt, net		17,927,727				-
Noncurrent operating lease liabilities		73,849				574,136
Contingent consideration		131,250				443,750
Purchase price payable		-				579,319
Total Liabilities		52,914,550				32,971,356
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, zero and 3,500 shares issued and outstanding, as of December 31, 2023 and 2022, respectively. Liquidation value approximately $0 and $1,305 per share as of December 31, 2023 and 2022, respectively		-				4,565,822
Stockholders’ Equity (Deficit)
Series A Preferred Stock, $0.0001 par value; 1,610,000 shares authorized, 1,400,000 shares issued and outstanding, liquidation value approximately $29.99 and $27.84 per share as of December 31, 2023 and 2022, respectively		140				140
Common Stock, $0.01 par value; 100,000,000 shares authorized, 38,358,641 and 31,552,775 shares issued, 38,255,601 and 31,449,735 outstanding as of December 31, 2023 and 2022, respectively		383,586				315,528
Additional paid-in capital		217,550,583				179,015,250
Accumulated deficit		(214,265,236	)			(190,562,994	)
Treasury stock, 103,040 and 103,040 shares, at cost, as of December 31, 2023 and 2022, respectively		(163,701	)			(163,701	)
Total LifeMD, Inc. Stockholders’ Equity (Deficit)		3,505,372				(11,395,777	)
Non-controlling interest		2,060,787				(475,548	)
Total Stockholders’ Equity (Deficit)		5,566,159				(11,871,325	)
Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)	$	58,480,709			$	25,665,853

LIFEMD, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
		Fourth Quarter Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Revenues
Telehealth revenue, net		$	31,256,199			$	16,418,643			$	98,152,919			$	82,649,845
WorkSimpli revenue, net			13,603,648				11,701,073				54,394,087				36,383,675
Total revenues, net			44,859,847				28,119,716				152,547,006				119,033,520
Cost of revenues
Cost of telehealth revenue			4,954,646				3,801,642				17,480,533				17,843,754
Cost of WorkSimpli revenue			400,913				266,058				1,419,931				824,274
Total cost of revenues			5,355,559				4,067,700				18,900,464				18,668,028
Gross profit			39,504,288				24,052,016				133,646,542				100,365,492
Expenses
Selling and marketing expenses			20,389,121				17,440,781				76,451,466				78,369,430
General and administrative expenses			15,573,509				9,203,072				51,694,232				46,960,782
Other operating expenses			1,656,631				1,640,975				6,297,321				6,717,795
Customer service expenses			2,058,549				1,605,370				7,632,283				5,033,468
Development costs			1,998,015				1,019,163				6,060,513				2,970,202
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	)
Total expenses			41,675,825				34,422,957				148,135,815				143,813,273
Operating loss			(2,171,537	)			(10,370,941	)			(14,489,273	)			(43,447,781	)
Other expenses
Interest expense, net			(622,685	)			(843,541	)			(2,596,586	)			(1,275,946	)
(Loss) gain on debt extinguishment			-				-				(325,198	)			63,400
Net loss before provision for income taxes			(2,794,222	)			(11,214,482	)			(17,411,057	)			(44,660,327	)
Income tax provision			(428,000	)			(360,700	)			(428,000	)			(360,700	)
Net loss			(3,222,222	)			(11,575,182	)			(17,839,057	)			(45,021,027	)
Net income attributable to noncontrolling interests			509,880				360,168				2,756,935				514,632
Net loss attributable to LifeMD, Inc.			(3,732,102	)			(11,935,350	)			(20,595,992	)			(45,535,659	)
Preferred stock dividends			(776,562	)			(776,562	)			(3,106,250	)			(3,106,250	)
Net loss attributable to LifeMD, Inc. common stockholders		$	(4,508,664	)		$	(12,711,912	)		$	(23,702,242	)		$	(48,641,909	)
Basic loss per share attributable to LifeMD, Inc. common stockholders		$	(0.12	)		$	(0.40	)		$	(0.70	)		$	(1.57	)
Diluted loss per share attributable to LifeMD, Inc. common stockholders		$	(0.12	)		$	(0.40	)		$	(0.70	)		$	(1.57	)
Weighted average number of common shares outstanding:
Basic			36,710,746				31,410,065				33,905,155				30,976,455
Diluted			36,710,746				31,410,065				33,905,155				30,976,455

LIFEMD, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Fourth Quarter Ended December 31,								Year Ended December 31,
	2023				2022				2023				2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(3,222,222	)		$	(11,575,182	)		$	(17,839,057	)		$	(45,021,027	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of debt discount		100,444				-				333,939				-
Amortization of capitalized software		1,637,094				934,908				5,424,810				2,681,807
Amortization of intangibles		245,968				259,760				971,464				926,542
Accretion of consideration payable		18,740				101,081				167,221				273,822
Depreciation of fixed assets		57,666				44,877				203,952				161,885
Write-down of inventory		537,685				103,417				537,685				103,417
Sales return reserve		-				338,193				-				338,193
Loss (gain) on debt extinguishment		-				-				325,198				(63,400	)
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		204,207				83,241				766,280				546,439
Stock issued for legal settlement		-				-				532,000				816,000
Stock compensation expense		3,645,607				1,884,614				12,489,343				13,734,614
Changes in Assets and Liabilities
Accounts receivable		(858,668	)			(634,825	)			(2,442,500	)			(2,192,888	)
Product deposit		(401,082	)			(19,214	)			(358,585	)			76,291
Inventory		493,029				(130,649	)			405,746				(2,183,012	)
Other current assets		369,450				127,554				(247,488	)			106,168
Change in operating lease liability		(218,624	)			(77,710	)			(808,368	)			(455,805	)
Deferred revenue		2,589,244				3,194,354				3,281,092				4,047,626
Accounts payable		1,447,465				(576,066	)			978,062				1,251,037
Accrued expenses		(932,373	)			993,497				4,678,757				(1,309,968	)
Other operating activity		-				(888,485	)			(579,319	)			(888,486	)
Net cash provided by (used in) operating activities		5,713,630				(1,969,039	)			8,820,232				(22,935,149	)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for capitalized software costs		(2,107,307	)			(1,783,259	)			(8,380,602	)			(8,526,205	)
Purchase of equipment		(109,332	)			12,244				(203,814	)			(366,633	)
Purchase of intangible assets		-				-				(148,868	)			(4,000,500	)
Acquisition of business, net of cash acquired		-				-				-				(1,012,395	)
Net cash used in investing activities		(2,216,639	)			(1,771,015	)			(8,733,284	)			(13,905,733	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net		-				-				19,466,887				-
Proceeds from common stock issued to Medifast		10,000,000				-				10,000,000				-
Proceeds from notes payable		-				2,906,000				2,347,691				2,906,000
Sale of common stock under ATM, net		5,303,092				-				6,202,659				-
Cash proceeds from exercise of warrants		-				-				-				38,500
Cash proceeds from exercise of options		94,500				-				94,500				90,400
Preferred stock dividends		(776,562	)			(776,562	)			(3,106,250	)			(3,106,250	)
Net payments for membership interest of WorkSimpli		-				-				(305,625	)			12,150
Contingent consideration payment for ResumeBuild		(125,000	)			(62,500	)			(312,500	)			(156,250	)
Distributions to non-controlling interest		(36,000	)			(36,000	)			(144,000	)			(144,000	)
Repayment of notes payable, net of prepayment penalty		(98,626	)			(168,750	)			(5,142,542	)			(168,750	)
Net cash provided by (used in) financing activities		14,361,404				1,862,188				29,100,820				(528,200	)
Net increase (decrease) in cash		17,858,395				(1,877,866	)			29,187,768				(37,369,082	)
Cash at beginning of period		15,288,330				5,836,823				3,958,957				41,328,039
Cash at end of period	$	33,146,725			$	3,958,957			$	33,146,725			$	3,958,957
Cash paid for interest
Cash paid during the period for interest	$	663,212			$	189,000			$	2,148,454			$	189,000
Non-cash investing and financing activities:
Cashless exercise of options	$	-			$	-			$	744			$	297
Cashless exercise of warrants	$	793			$	-			$	793			$	-
Consideration payable for Cleared acquisition	$	-			$	-			$	-			$	8,079,367
Consideration payable for ResumeBuild acquisition	$	-			$	-			$	-			$	500,000
Stock issued for noncontingent consideration payments	$	642,000			$	-			$	2,568,000			$	-
Stock issued for debt conversion	$	1,000,000			$	-			$	1,000,000			$	-
Series B Preferred Stock conversion	$	-			$	-			$	5,072,814			$	-
Principal of Paycheck Protection Program loans forgiven	$	-			$	-			$	-			$	63,400
Warrants issued for debt instruments	$	-			$	-			$	873,100			$	-
Right of use asset	$	-			$	89,595			$	155,168			$	89,595
Right of use lease liability	$	-			$	94,168			$	155,168			$	94,168

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, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses 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, non-controlling interests, foreign currency translation, inventory valuation, sales return reserves, litigation costs, loss on debt extinguishment, dividends, insurance acceptance and Sarbanes-Oxley readiness, acquisition costs, severance expenses 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,
		2023				2022				2023				2022
Net loss attributable to common shareholders	$	(4,508,664	)		$	(12,711,912	)		$	(23,702,242	)		$	(48,641,909	)
Interest expense (excluding amortization of debt discount)		522,241				728,856				1,755,656				820,946
Depreciation, amortization and accretion expense		1,959,468				1,340,626				6,767,447				4,044,056
Amortization of debt discount		100,444				-				333,939				-
Loss (gain) on debt extinguishment		-				-				325,198				(63,400	)
Financing transactions expense		38,431				98,333				773,932				250,348
Litigation costs		168,600				168,162				1,594,930				1,685,521
Inventory and reserve adjustments		404,694				699,057				637,324				929,718
Deferred revenue adjustment		-				2,918,942				-				2,918,942
Severance costs		17,400				181,824				25,092				360,914
Acquisitions expenses		30,909				127,539				158,047				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
Insurance acceptance readiness		252,250				-				318,884				-
Sarbanes Oxley readiness		151,248				-				199,824				-
Accrued interest on Series B Convertible Preferred Stock		-				114,685				506,991				455,000
Foreign exchange (gain) loss		368,793				393,147				1,165,412				1,078,389
Taxes		428,000				360,700				498,378				360,700
Dividends		1,399,560				812,562				5,371,450				3,250,250
Stock-based compensation expense		3,645,607				1,884,614				12,489,343				13,734,614
Net income attributable to noncontrolling interests		509,880				360,168				2,756,935				514,632
Adjusted EBITDA	$	5,488,861			$	990,899			$	11,976,540			$	(14,146,991	)

 

Reconciliation of GAAP Diluted Loss per Share Attributable to Common Shareholders to Adjusted EPS
(unaudited)	Fourth Quarter Ended December 31,								Year Ended December 31,
		2023				2022				2023				2022
Diluted loss per share attributable to LifeMD, Inc. common shareholders	$	(0.12	)		$	(0.40	)		$	(0.70	)		$	(1.57	)
Adjustments to Reconcile GAAP Diluted Loss Per Share to Adjusted EPS
Interest expense (excluding amortization of debt discount)		0.01				0.02				0.05				0.03
Depreciation, amortization and accretion expense		0.05				0.04				0.20				0.13
Amortization of debt discount		-				-				0.01				-
Loss (gain) on debt extinguishment		-				-				0.01				-
Financing transactions expense		-				-				0.02				0.01
Litigation costs		0.01				0.01				0.05				0.06
Inventory and reserve adjustments		0.01				0.02				0.02				0.03
Deferred revenue adjustment		-				0.09				-				0.10
Severance costs		-				0.01				-				0.01
Acquisitions expenses		-				-				0.01				0.01
Change in fair value of contingent consideration		-				(0.08	)			-				(0.16	)
Goodwill and intangible asset impairment charges		-				0.20				-				0.29
Insurance acceptance readiness		0.01				-				0.01				-
Sarbanes Oxley readiness		0.01				-				0.01				-
Accrued interest on Series B Convertible Preferred Stock		-				-				0.01				0.01
Foreign exchange (gain) loss		0.01				0.01				0.03				0.03
Taxes		0.01				0.01				0.01				0.01
Dividends		0.04				0.02				0.16				0.10
Stock-based compensation expense		0.10				0.06				0.37				0.44
Net income attributable to noncontrolling interests		0.01				0.01				0.08				0.02
Adjusted EPS	$	0.15			$	0.02			$	0.35			$	(0.45	)