Revenue and Key Business Metrics

Our management monitors two financial results, Online Revenue and Wholesale Revenue (both defined below), to track our total revenue generation.

"Net Orders" are defined as the number of online customer orders minus transactions related to refunds, credits, chargebacks, and other negative adjustments. Net Orders represent transactions made on our platform during a defined period of time and exclude revenue recognition adjustments recorded pursuant to U.S. GAAP.

Average Order Value ("AOV") is defined as Online Revenue divided by Net Orders.

Key Factors Affecting Results of Operations

We believe that our performance and future success depend on several factors that present significant opportunities for us but also pose risks and challenges.

The following table reconciles net loss to Adjusted EBITDA for the three and six months ended June 30, 2022 and 2021 (in thousands):

Impact of the COVID-19 Pandemic

Components of Results of Operations

Our consolidated revenue primarily comprises of online sales of health and wellness products through our websites and mobile applications, including prescription and non-prescription products. In contracts that contain prescription products issued as the result of a consultation, revenue also includes medical consultation services provided by Affiliated Medical Groups. Additionally, revenue is generated through wholesale arrangements.

For information on our significant accounting policies, see Note 2 to our accompanying unaudited condensed consolidated financial statements.

Gross profit and gross margin

Selling, general, and administrative expenses

Comparisons for the three and six months ended June 30, 2022 and 2021

(1)Includes stock-based compensation expense as follows (in thousands):

The following table sets forth our results of operations as a percentage of our total revenue for the periods presented:

Cost of revenue and gross profit

Wholesale Revenue comprising a larger proportion of total revenue, as well as the inclusion of the operations of Apostrophe and a full period of the operations of HHL for both the three and six months ended June 30, 2022.

Selling, general, and administrative expenses

Provision for income taxes was less than $0.1 million for each of the three months ended June 30, 2022 and 2021. Provision for income taxes was $0.1 million for each of the six months ended June 30, 2022 and 2021.

As of June 30, 2022, our principal sources of liquidity are cash and cash equivalents in the amount of $55.0 million, which are primarily invested in money market funds, and investments in the amount of $139.9 million, which are primarily invested in corporate, government, and asset-backed bonds.

The following table provides a summary of cash flow data (in thousands):

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash flows from investing activities primarily relate to our treasury operations of investing in available-for-sale investments, as well as acquisitions, investment in website and mobile application development and internal-use software, and purchases of property and equipment.

Cash Flows from Financing Activities

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