A source tells ET that the pair are "casually dating."
“Demi and Henry enjoy spending time together and are casually dating. Demi and Henry started out as friends but quickly realized they had a lot in common," the source says. "Demi feels comfortable with Henry because she doesn’t have to hide her past and can be honest with him about her addiction and recovery."
"Demi’s main focus is still her sobriety and staying on the right path, and Henry is a positive influence for that,” the source adds.
"Henry and Demi met a few years ago in rehab," the source said. "They hit it off immediately and became fast friends. Henry takes his sober life very seriously and, when Demi sadly relapsed, they lost touch for some time."
"Henry is exactly the friend Demi needs right now. He is a perfect sober friend for her," the source continued. "Her friends feel he is a positive influence on her."
Late last month, fans noticed that Lovato started unfollowing a few of her celebrity pals on social media, including Selena Gomez, Nick Jonas and Iggy Azalea. A source told ET that the singer wants to "focus on herself" and "avoid any difficult relationships."
"She needs to surround herself with those that support her goals and to stay away from any negativity," the source said. "Demi has come a very long way. She's grown emotionally and matured a great deal through this process. She realizes there is no quick fix and has accepted the fact she needs to take this one day at a time. She still has a sober companion and she has built a very strong support group."
As for Levy, the source called him one of Lovato's "biggest supporters."
"Demi and Henry still talk every day," the source said. "They are really close, but they are truly just friends. Demi is nowhere near ready to be in a relationship, her focus is following the program. She knows what it took for her to get to this place and she keeps saying how fortunate she feels to be alive."
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