LogicMark, Inc. Announces Strong Quarterly Operating Results
- Revenue for the first quarter was
$2.8 million, up 31% from the prior quarter.
- Gross profit in the first quarter was
$1.9 million, up 41% from the prior quarter.
- Gross margin in the first quarter was 66.3%, up almost 600 bps from 60.4% in the year-ago quarter.
January 2023, completed a registered public offering of common stock, raising $5.2 millionin gross proceeds.
- Launched LogicMark store on Amazon, expanding B2C sales channel.
- Partnered with US Monitoring to offer 24/7 monitoring services.
- Conducted a special meeting of stockholders in
February 2023with shareholders approving all proposals, including adoption of LogicMark’s 2023 stock incentive plan, reincorporation of the Company from Delawareto Nevadaand reverse stock split proposals.
April 2023, executed a 1-for-20 reverse stock split of the Company’s outstanding shares of Common Stock and Series C Redeemable Preferred Stock, subsequently regaining compliance with Nasdaq listing requirements.
- Cash balance on
March 31, 2023was $9.8 million, up from $7.0 millionat December 31, 2022.
Coinciding with this expansion is our exciting new 24/7 monitoring service partnership with US Monitoring. This represents the launch of our new subscription revenue model and opportunities to enhance the services margins for
First Quarter 2023 Financial Results
Revenue for the quarter ended
Gross profit in the first quarter was
Gross margin in the first quarter was 66.3%, up almost 600 bps from 60.4% in the year-ago quarter. The improvement in gross margins was the result of improvements in supply chain management, including a return to transpacific shipping versus air freight from our
Total operating expense in the first quarter 2023 was
Net loss attributable to common shareholders for the first quarter was
Net loss per share improved to a loss of
Cash balance as of
Investor Call and SEC Filings
Management will host a conference call at
Participants wishing to dial into the conference call must register here to obtain their dial in and pin number: https://register.vevent.com/register/BId641e4fd5f2d4a63b16943590d8aef2b
To listen to the live webcast please visit the LogicMark Investor Relations website here, or participants may join using the following link: https://edge.media-server.com/mmc/p/dubee6qh
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 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, including the anticipated product launches of AsterX+1 and Freedom Alert+; 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
Investor Relations Contact:
Financial tables to follow:
|CONDENSED BALANCE SHEETS|
|FOR THE QUARTERS ENDED
|Cash and cash equivalents||$||9,781,799||$||6,977,114|
|Accounts receivable, net||50,679||402,595|
|Prepaid expenses and other current assets||292,319||349,097|
|Total Current Assets||11,319,282||9,534,005|
|Property and equipment, net||252,855||255,578|
|Right-of-use assets, net||164,554||182,363|
|Product development costs, net of amortization of
|Other intangible assets, net of amortization of
|Liabilities, Series C Redeemable Preferred Stock and Stockholders’ Equity|
|Total Current Liabilities||1,271,815||2,413,542|
|Other long-term liabilities||424,195||440,263|
|Commitments and Contingencies (Note 8)|
|Series C Redeemable Preferred Stock|
|Series C redeemable preferred stock, par value
|Preferred stock, par value
|Series F preferred stock, par value
|Common stock, par value
|Additional paid-in capital||111,079,795||106,070,253|
|Total Stockholders’ Equity||23,955,197||20,980,019|
|Total Liabilities, Series C Redeemable Preferred Stock and Stockholders’ Equity||$||27,458,507||$||25,641,124|
|CONDENSED STATEMENTS OF OPERATIONS|
|FOR THE QUARTERS ENDED
|For the Three Months Ended
|Costs of goods sold||947,169||1,447,305|
|Direct operating cost||262,800||474,442|
|Selling and marketing||465,536||189,207|
|Research and development||313,887||262,484|
|General and administrative||2,413,760||2,335,949|
|Depreciation and amortization||215,998||194,363|
|Total Operating Expenses||3,748,415||3,486,529|
|Total Other Income||52,428||-|
|Loss before Income Taxes||(1,833,439||)||(1,283,145||)|
|Income tax expense||-||-|
|Preferred stock dividends||(75,000||)||(88,000||)|
|Net Loss Attributable to Common Stockholders||$||(1,908,439||)||$||(1,371,145||)|
|Net Loss Attributable to Common Stockholders Per Share - Basic and Diluted||$||(1.92||)||$||(2.89||)|
|Weighted Average Number of Common Shares Outstanding - Basic and Diluted||996,080||474,099|
Source: LogicMark, Inc.