LogicMark, Inc. Announces Second Quarter 2023 Results
Improved Gross Margin from Enhanced Operating Efficiencies
Product Development Pipeline at Highest Level in Recent Years
New Freedom Alert Plus PERS Product in Pre-Order Phase
- Gross margin in the second quarter of 2023 improved to 69%, compared with 59% for the prior year period.
- Revenues were
$2.3 million, compared with $3.4 millionfor the prior year period.
- Cash balance on
June 30, 2023, was $7.6 million, compared to $7.0 millionat year-end 2022.
- Pre-orders are now underway for the new Freedom Alert Plus PERS product with the proprietary
Care Villagesoftware suite, with shipments expected to begin at month-end.
“Our ongoing product research and development efforts have helped us build a product pipeline that stands at the highest level seen in over 20 years. These innovative solutions form part of our strategy to build a Caring Platform as a Service (CPaaS). Under this new ecosystem, our
“The recent launch of the Freedom Alert Plus PERS unit is a great example of the CPaaS system and how we view our expanding role in the care economy. The new Freedom Alert Plus is a wearable device that introduces fall detection, instant connection to caregivers, and a touchscreen design that is unique to the PERS industry. We can now capture the needed data to monitor our customers’ well-being in real-time, using artificial intelligence and machine learning to optimize the best care. We believe this is a milestone for a PERS product to move beyond alerts and into predictive safety space.
“Our team is new, but our progress is encouraging. We’re making great strides with the testing and refining of new products and anticipate further launches in the second half of this year. The Freedom Alert Plus launch further assists our existing product development efforts, allowing for the integration of other innovative connected devices and solutions on a common platform. Continued execution of our strategy to design and deliver hardware and software solutions to the growing care economy will help contribute to revenue growth in the months ahead,” concluded Simmons.
Second Quarter 2023 Results
Revenue for the second quarter ended
Gross profit margin percentage in the second quarter increased to 69%, compared with 59% in the prior year period, because of improvements in the Company’s supply chain management, including a return to transpacific shipping from our
Total operating expenses in the second quarter of 2023 were
Net loss attributable to common shareholders for the second quarter was
Investor Call and SEC Filings
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The associated press release,
Cautionary Statement Regarding 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 because 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, including the anticipated product launches of Aster, CPaaS and Freedom Alert Plus; 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.
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Financial tables to follow:
|CONDENSED BALANCE SHEETS|
|Cash and cash equivalents||$||7,649,730||$||6,977,114|
|Accounts receivable, net||16,409||402,595|
|Prepaid expenses and other current assets||600,270||349,097|
|Total Current Assets||9,313,616||9,534,005|
|Property and equipment, net||253,472||255,578|
|Right-of-use assets, net||146,173||182,363|
|Product development costs, net of amortization of
|Software development costs||470,545||364,018|
|Other intangible assets, net of amortization of
|Liabilities, Series C Redeemable Preferred Stock and Stockholders' Equity|
|Total Current Liabilities||1,294,329||2,413,542|
|Other long-term liabilities||407,600||440,263|
|Commitments and Contingencies (Note 8)|
|Series C Redeemable Preferred Stock|
|Series C redeemable preferred stock, par value
|Preferred stock, par value
|Series F preferred stock, par value
|Common stock, par value
|Additional paid-in capital||111,521,965||106,070,253|
|Total Stockholders' Equity||22,129,497||20,980,019|
|Total Liabilities, Series C Redeemable Preferred Stock and Stockholders' Equity||$||25,638,726||$||25,641,124|
|CONDENSED STATEMENTS OF OPERATIONS|
|For the Three Months Ended
||For the Six Months Ended
|Costs of goods sold||727,276||1,364,586||1,674,445||2,811,891|
|Direct operating cost||312,426||336,544||575,228||810,987|
|Selling and marketing||517,931||275,011||983,466||464,216|
|Research and development||250,266||204,592||564,154||467,077|
|General and administrative||2,443,860||2,115,700||4,857,619||4,451,647|
|Depreciation and amortization||215,703||194,691||431,701||389,054|
|Total Operating Expenses||3,876,109||3,128,538||7,624,525||6,615,065|
|Total Other Income||8,510||13,159||60,938||13,159|
|Loss before Income Taxes||(2,267,880||)||(1,112,273||)||(4,101,319||)||(2,395,417||)|
|Income tax expense||-||-||-||-|
|Preferred stock dividends||(75,000||)||(88,144||)||(150,000||)||(176,144||)|
|Net Loss Attributable to Common Stockholders||$||(2,342,880||)||$||(1,200,417||)||$||(4,251,319||)||$||(2,571,561||)|
|Net Loss Attributable to Common Stockholders Per Share - Basic and Diluted||$||(1.83||)||$||(2.50||)||$||(3.73||)||$||(5.39||)|
|Weighted Average Number of Common Shares Outstanding - Basic and Diluted||1,282,794||479,738||1,139,437||476,934|
Source: LogicMark, Inc.