« Back

LogicMark, Inc. Announces Strong Quarterly Operating Results

May 11, 2023
|
PDF Version

LOUISVILLE, Ky., May 11, 2023 (GLOBE NEWSWIRE) -- LogicMark, Inc. (Nasdaq: LGMK), a provider of personal emergency response systems (PERS), health communications devices, and technology for the growing care economy, announces financial and operating results for the first quarter ended March 31, 2023.

Recent Highlights:

  • 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.
  • In January 2023, completed a registered public offering of common stock, raising $5.2 million in 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 2023 with shareholders approving all proposals, including adoption of LogicMark’s 2023 stock incentive plan, reincorporation of the Company from Delaware to Nevada and reverse stock split proposals.
  • In 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, 2023 was $9.8 million, up from $7.0 million at December 31, 2022.

Chia-Lin Simmons, LogicMark’s Chief Executive Officer, commented, “Our recent launch of the LogicMark store on Amazon’s platform represents a pivotal expansion of our B2C footprint, establishing yet another channel upon which to grow sales, especially in light of our upcoming product launch activities slated for second half of 2023. Amazon, as the largest online retailer in the country, presents an enormous opportunity for LogicMark to expand its reach. We are pleased to see a steady stream of sales emerging from this new channel which just launched mid-April and look forward to expanding the store offerings with upcoming product launches.”

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 LogicMark which has, until now, been a pure hardware company. US Monitoring, a U.S.-based company, provides national wholesale monitoring services.

First Quarter 2023 Financial Results
Revenue for the quarter ended March 31, 2023 was $2.8 million, up 31% from the prior quarter but down 23% from the year-ago period. The year over year decline was the result of one-time sales of 4G units replacing 3G units no longer supported by the national cellular network carriers that took place in the March 31, 2022 quarter.

Gross profit in the first quarter was $1.9 million, up 41% from the prior quarter but down 15% from the year-ago period. The decline in gross profit compared to the March 31st quarter of 2022 was the result of lower sales, partially offset by higher margins.

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 Asia based contract manufacturers.

Total operating expense in the first quarter 2023 was $3.7 million, flat with the prior quarter and up $0.3 million in the prior year period. The increase over the year-ago period was due primarily to higher personnel costs and the costs associated with the special meeting of shareholders.

Net loss attributable to common shareholders for the first quarter was $1.9 million, versus a net loss of $2.4 million in the prior quarter and a net loss of $1.4 million in the year-ago period.

Net loss per share improved to a loss of $1.92 in the first quarter versus a net loss of $2.89 per share in the prior year quarter. The improvement is the result of a higher number of shares outstanding due to the capital raise in January.

Cash balance as of March 31, 2023 was $9.8 million versus $7.0 million at December 31, 2022.

Investor Call and SEC Filings

Management will host a conference call at 1:30 PM (PDT) / 4:30 PM (EDT) today, to review financial results and provide a corporate update. Following management’s remarks there will be a formal question and answer session.

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, SEC filings, and webcast replay will also be accessible on the Company’s investor relations website.

About LogicMark

LogicMark, Inc. (Nasdaq: LGMK) provides personal emergency response systems (PERS), health communications devices and 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 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.

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 SEC.

Investor Relations Contact:
CORE IR
Investor@logicmark.com

Financial tables to follow:

 
LogicMark, Inc.
CONDENSED BALANCE SHEETS
FOR THE QUARTERS ENDED MARCH 31, 2023, AND DECEMBER 31, 2022
 
  March 31,   December 31,
    2023       2022  
Assets      
Current Assets      
Cash and cash equivalents $ 9,781,799     $ 6,977,114  
Restricted cash   59,988       59,988  
Accounts receivable, net   50,679       402,595  
Inventory   1,134,497       1,745,211  
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 $15,029   1,253,749       1,010,662  
Goodwill   10,958,662       10,958,662  
Other intangible assets, net of amortization of $4,900,886 and $4,710,437, respectively   3,509,405       3,699,854  
       
Total Assets $ 27,458,507     $ 25,641,124  
       
Liabilities, Series C Redeemable Preferred Stock and Stockholders’ Equity      
       
Current Liabilities      
Accounts payable $ 521,283     $ 673,052  
Accrued expenses   750,532       1,740,490  
Total Current Liabilities   1,271,815       2,413,542  
Other long-term liabilities   424,195       440,263  
Total Liabilities   1,696,010       2,853,805  
       
Commitments and Contingencies (Note 8)      
       
Series C Redeemable Preferred Stock      
Series C redeemable preferred stock, par value $0.0001 per share: 2,000 shares designated; 10 shares issued and outstanding as of March 31, 2023 and December 31, 2022   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; 106,333 and 173,333 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively, aggregate liquidation preference of $319,000 as of March 31, 2023 and $520,000 as of December 31, 2022   319,000       520,000  
Common stock, par value $0.0001 per share: 100,000,000 shares authorized; 1,220,308 and 479,669 issued and outstanding as of March 31, 2023 and December 31, 2022, respectively   123       48  
Additional paid-in capital   111,079,795       106,070,253  
Accumulated deficit   (87,443,721 )     (85,610,282 )
       
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  
       


LogicMark, Inc.
CONDENSED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED MARCH 31, 2023, AND 2022
 
  For the Three Months Ended March 31, 
  2023     2022  
Revenues $               2,809,717     $               3,650,689  
Costs of goods sold 947,169     1,447,305  
Gross Profit 1,862,548     2,203,384  
           
Operating Expenses          
Direct operating cost 262,800     474,442  
Advertising costs 48,116     -  
Selling and marketing 465,536     189,207  
Research and development 313,887     262,484  
General and administrative 2,413,760     2,335,949  
Other expense 28,318     30,084  
Depreciation and amortization 215,998     194,363  
           
Total Operating Expenses 3,748,415     3,486,529  
           
Operating Loss (1,885,867 )   (1,283,145 )
           
Other Income          
Interest income 52,428     -  
Total Other Income 52,428     -  
           
Loss before Income Taxes (1,833,439 )   (1,283,145 )
Income tax expense -     -  
Net Loss              (1,833,439 )                (1,283,145 )
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  

Primary Logo

Source: LogicMark, Inc.