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LogicMark, Inc. Announces First Quarter 2022 Financial and Operational Results

May 12, 2022
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LOUISVILLE, Ky., May 12, 2022 /PRNewswire/ -- LogicMark, Inc. (Nasdaq: LGMK) (the "Company" or "LogicMark") (formerly Nxt-ID, Inc.), a provider of personal emergency response systems (PERS), health communications devices, and IoT technology for the growing Care Economy, announces financial and operating results for the first quarter ended March 31, 2022.

Summary results for the first quarter ended March 31, 2022 include the following:

  • Revenue was $3.7 million, up 50% from the year-ago quarter.  
  • Gross profit was $2.2 million, up 52% from the same quarter last year.  Gross margin was 60%, compared to 59% in the same quarter last year.  The improvement in gross margin was due to lower inbound freight costs. 
  • Operating expenses were $3.5 million, compared to $2.3 million in the same quarter last year. The increase in operating expenses was primarily due to higher selling, general and administrative expenses resulting from the Company increasing investment in new product development and a ramp up in our sales team.
  • Operating loss was $1.3 million versus an operating loss of $800 thousand in the year-ago quarter, due primarily to higher operating expenses. 
  • Net loss was $1.3 million, compared to a net loss of $4.2 million in the same quarter last year. The $4.2 million loss in the prior year's quarter was negatively impacted by a warrant modification expense of $2.9 million.  
  • At quarter-end, the Company held $12.2 million in unrestricted cash, up from $12.0 million in the quarter ended December 31, 2021.  

Chia-Lin Simmons, LogicMark's Chief Executive Officer, commented, "This quarter begins a new chapter for LogicMark with revenues up and margins expanding.  An increase in sales due to growth in our U.S. Veterans Health Administration business and customers upgrading to a 4G device has helped start the year strong with revenues growing 50%. 

"We plan to continue this momentum into the second quarter when we launch our direct-to-consumer efforts.  We also plan to launch new at-home and on-the-go solutions later this year and add monitored services to our offerings.  The addition of a recurring revenue element to our business model is exciting.  We're optimistic about our direction and excited to transform LogicMark into a technology company focused on building solutions for the new care economy," concluded Ms. Simmons. 

Investor Call and SEC Filings   

On May 12, 2022, at 1:30 pm Pacific Time, or 4:30 pm Eastern Time, a live webcast will be held to discuss the Company's financial and operations results for the first quarter ended March 31, 2022.   

To register and listen to the webcast, please visit the LogicMark Investor Relations website here, or at  https://edge.media-server.com/mmc/p/3vaywbcq.  

For investors who wish to participate by telephone, please use the following dial-in credentials: 
US/CANADA Participant Toll-Free Dial-In Number: (877) 644-5287 
US/CANADA Participant International Dial-In Number: (281) 973-6282 
Conference ID: 7843876

The associated press release, SEC filings, and webcast replay witll also be accessible on the Company's investor relations website. 

About LogicMark, Inc.

LogicMark, Inc. (Nasdaq: LGMK) provides personal emergency response systems (PERS), health communications devices and IoT technologies to create a Connected Care Platform. The Company's devices give people the ability to receive care at home and confidence to age in place. LogicMark revolutionized the PERS industry by incorporating two-way voice communication technology directly into its medical alert pendant and providing this life-saving technology at a price point that everyday consumers can afford. The Company's PERS technologies are sold through the United States Veterans Health Administration and dealers/distributors.  LogicMark has been awarded a contract by the U.S. General Services Administration that enables the Company to distribute its products to federal, state, and local governments. 

Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Such risks and uncertainties include, among other things, our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the availability of financing; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary marketing and/or distribution partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; the Company's ability to maintain its Nasdaq listing for its common stock; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the SEC. 

Investor Relations Contact:  
CORE IR  
Investor@logicmark.com 

 

LogicMark, Inc

      

BALANCE SHEETS

      
       
 

March 31,

  

December 31,
 

2022

  

2021

Assets

      
       

Current Assets

      

Cash

$12,224,887

  

$12,044,415

Restricted cash

210,118

  

210,131

Accounts receivable, net

133,262

  

98,749

Inventory, net

876,084

  

1,237,280

Prepaid expenses and other current assets

893,388

  

849,190

Total Current Assets

14,337,739

  

14,439,765
       

Property and equipment:

      

Equipment

404,925

  

410,444

Furniture and fixtures

78,268

  

35,761

Tooling and molds

9,427

  

9,427
 

492,620

  

455,632

Accumulated depreciation

(455,889)

  

(455,632)

Property and equipment, net

36,731

  

0

Right-of-use assets

232,569

  

248,309

Goodwill

10,958,662

  

10,958,662

Other intangible assets, net of amortization of $4,322,026 and $4,127,920, respectively

4,282,541

  

4,476,647
       

Total Assets

$29,848,242

  

$30,123,383
       

Liabilities, Series C Preferred Stock and Stockholders' Equity

      
       

Current Liabilities

      

Accounts payable

$1,059,414

  

$492,431

Accrued expenses

766,313

  

849,285

Total Current Liabilities

1,825,727

  

1,341,716
       

Other long-term liabilities

367,387

  

385,196

Total Liabilities

2,193,114

  

1,726,912
       

Commitments and Contingencies (Note 8)

      
       

Series C Preferred Stock

      

Series C Preferred Stock, par value $0.0001 per share: 2,000 shares designated; 200 shares issued and
outstanding as of March 31, 2022 and December 31, 2021

1,807,300

  

1,807,300
       

Stockholders' Equity

      

Preferred Stock, par value $0.0001 per share: 10,000,000 shares authorized

-

  

-

Series F Preferred Stock, par value $0.0001 per share:  1,333,333 shares designated; 173,333 shares issued and
outstanding as of March 31, 2022, aggregate liquidation preference of $520,000 as of March 31, 2022, and
December 31, 2021

520,000

  

520,000

Common Stock, par value $0.0001 per share: 100,000,000 shares authorized; 9,593,378 and 9,163,039 issued and
outstanding as of March 31, 2022 and December 31, 2021

959

  

917

Additional paid-in capital

105,279,875

  

104,725,115

Accumulated deficit

(79,953,006)

  

(78,656,861)
       

Total Stockholders' Equity

25,847,828

  

26,589,171
       

Total Liabilities, Series C Preferred Stock and Stockholders' Equity

$29,848,242

  

$30,123,383

 

 

LogicMark, Inc.

  

STATEMENT OF OPERATIONS

  
   
 

For the Three Months Ended
 

March 31,
 

2022

  

2021 (1)

Revenues

$3,650,689

  

$2,438,682

Costs of goods sold

1,447,305

  

989,388

Gross Profit

2,203,384

  

1,449,294
       

Operating Expenses

      

Direct operating cost

474,442

  

244,669

Selling and marketing

189,207

  

80,123

Research and development

262,484

  

313,896

General and administrative

2,335,949

  

1,379,071

Other expense

30,084

  

10,568

Depreciation and amortization

194,363

  

203,857
       

Total Operating Expenses

3,486,529

  

2,232,184
       

Operating Loss

(1,283,145)

  

(782,890)
       

Other Income and (Expense)

      

Interest expense

-

  

(861,248)

Forgiveness of Paycheck Protection Program loan and accrued interest

-

  

303,710

Warrant modification expense

-

  

(2,881,729)

Total Other Expense, Net

-

  

(3,439,267)
       

Loss before Income Taxes

(1,283,145)

  

(4,222,157)

Income Tax (Expense) Benefit

-

  

-

Net Loss

(1,283,145)

  

(4,222,157)

Preferred stock dividends

(88,000)

  

(1,555,801)
       

Net Loss Applicable to Common Stockholders

(1,371,145)

  

(5,777,958)
       

Net Loss Per Share - Basic and Diluted

(0.14)

  

(1.20)
       

Weighted Average Number of Common Shares Outstanding - Basic and Diluted

9,486,744

  

4,819,255
       

(1) Expenses in 2021 have been reclassified to conform to the 2022 presentation format

      
       

 

 

Nxt-ID, Inc. and Subsidiaries

      

CONSOLIDATED STATEMENTS OF CASH FLOWS

      
       
 

For the Three Months Ended
 

March 31,
 

2022

2021

  

Cash Flows from Operating Activities

      

Net loss

(1,283,145)

(4,222,157)

  

Adjustments to reconcile net loss to net cash used in operating activities:

      

Depreciation

257

16,012

  

Stock based compensation

629,802

40,000

  

Amortization of debt discount

-

77,800

  

Amortization of intangible assets

194,106

187,845

  

Amortization of deferred debt issuance costs

-

402,454

  

Non-cash charge for modification of warrant terms

-

2,881,729

  

Forgiveness of Paycheck Protection Plan loans and accrued interest

  

(303,710)

  

Changes in operating assets and liabilities:

      

Accounts receivable

(34,513)

66,045

  

Inventory

361,196

(13,128)

  

Prepaid expenses and other current assets

(44,198)

(80,715)

  

Accounts payable

566,983

(518,601)

  

Accrued expenses

(98,041)

463,660

  

Total Adjustments

1,575,591

3,219,391

  

Net Cash Provided by (Used in) Operating Activities

292,446

(1,002,766)

  
       

Cash flows from Investing Activities

      

Purchase of Equipment

(36,988)

    

Net Cash Used by Investing Activities

(36,988)

-

  
       

Cash flows from Financing Activities

      

Proceeds from sale of common stock and warrants

-

6,670,494

  

Proceeds received in connection with issuance of Series E preferred stock, net

-

4,000,003

  

Term loan repayment

-

(5,515,625)

  

Fees paid in connection with equity offerings

-

(23,698)

  

Preferred Stock Dividends

(75,000)

-

  

Net Cash (Used in) Provided by Financing Activities

(75,000)

5,131,174

  

Net Increase in Cash and Restricted Cash

180,459

4,128,408

  

Cash and Restricted Cash - Beginning of Year

12,254,546

4,537,546

  

Cash and Restricted Cash - End of Period

12,435,005

8,665,954

  
       

Supplemental Disclosures of Cash Flow Information:

      

Cash paid during the periods for:

      

Interest

-

$443,975

  

Taxes

-

$25,999

  

Non-cash investing and financing activities:

      

Accrued fees incurred in connection with equity offerings

-

$20,458

  

Accrued preferred stock dividends

$107,933

$75,000

  

Common stock issued in connection with management incentive plans

-

$80,456

  

Conversion of Series E preferred stock to common stock

-

$4,000,003

  

 

 

 

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SOURCE LogicMark Inc.