« Back

LogicMark, Inc. Reports Fourth Quarter and Full Year 2023 Results

Apr 18, 2024
|
PDF Version
Fourth Quarter Year Over Year Revenue Increased 13% and Gross Profit Increased 21%

LOUISVILLE, Ky., April 18, 2024 (GLOBE NEWSWIRE) -- LogicMark, Inc. (Nasdaq: LGMK), a provider of personal emergency response systems (PERS), health communications devices, and technology for the growing care economy, today announced financial results for the fourth quarter and full year ended December 31, 2023. 

Chia-Lin Simmons, Chief Executive Officer, shared her thoughts on LogicMark’s results stating, “Our team’s remarkable accomplishments during 2023 are a testament to our collective dedication. We finished the year with strong momentum, increasing fourth-quarter revenues by 13% and improving gross profit by 21% year-over-year. Moreover, we achieved a 66% gross margin in the fourth quarter, an improvement of 450 bps from last year's fourth quarter. In addition to strong financial results, we expanded our software and technology suite to complement the launch of two new products.

“During the fourth quarter, we launched two highly anticipated products. Firstly, the Freedom Alert Plus is a unique Wi-Fi and touch-screen-enabled device. Secondly, the new 4G Freedom Alert Mini is a smaller form factor device to meet the needs of those on the go. Both products include monthly 24/7 monitoring service by US-based emergency operators and patented multi-sensor fall detection, providing safety, convenience, and peace of mind. These products are available for purchase at the new LogicMark store on Amazon.com and on our recently upgraded eCommerce website portal.

“We then kicked off 2024 with entry into a new market by releasing our subscription-based software application called Aster, now available on the Apple and Google Play Stores. This standalone software contains many features to provide peace of mind to users of all ages, allowing them to remain connected to their loved ones or caregivers. To complement the software, the LogicMark Bluetooth button can be attached to a pocket, key, or bag, and when paired with Aster, it can serve as a quick-access emergency device. Aster is an excellent example of how our Caring Platform as a Service (CPaaS) model can be leveraged to launch other IoT solutions.

“Looking ahead, we plan to expand our cellular-based product line and features to provide multi-layer safety support using CPaaS. This will allow us to integrate with various third-party connected and wearable devices and services to serve our customers at home or on the go. We are passionate about developing and implementing our technology solutions, utilizing leading-edge AI and machine learning tools to improve the quality of life for everyone,” concluded Ms. Simmons.

Fourth Quarter 2023 Financial Summary

  • Revenue in the fourth quarter of 2023 was $2.4 million, a 13% increase from $2.1 million in the same period last year. This quarter’s year-over-year comparison saw the end of one-time incremental sales in the prior year’s results due to the sunsetting of 3G service by the mobile carriers.
  • Gross profit in the fourth quarter of 2023 was $1.6 million, up 21% from $1.3 million in the same period last year. Gross profit improved from increased sales and cost reductions.
  • Gross margin improved to 66.0% in the fourth quarter of 2023, a 450 bp increase from the same period last year. In addition to the impact of selected price increases taken last July, improvements in both inbound and outbound shipping costs continue to be realized.
  • In the fourth quarter of 2023, a deemed dividend of $0.9 million was recorded due to the warrant inducement transaction completed in November 2023, as well as a $7.8 million goodwill impairment charge. Both expenses were non-cash.
  • Excluding the impact of the goodwill impairment charge, total operating expenses for the fourth quarter of 2023 were $3.2 million, compared to $3.7 million in the same period last year, a 14% decrease.
  • Net loss was $1.73 per share on 1.7 million weighted shares outstanding in the quarter, excluding the impact of the impairment charge and deemed dividend, compared with a net loss of $5.23 per share on 0.5 million weighted shares outstanding in the prior-year quarter. Adding back the two non-cash charges, the net loss was $5.74 per share.

Full Year 2023 Financial Summary

  • Total annual revenue for 2023 was $9.9 million, a 17% decrease from the prior year's revenue of $11.9 million. This decrease was due to one-time revenues in the prior year’s results that were driven by replacement sales related to the 3G sunsetting by mobile carriers.
  • Gross profit was $6.7 million, down slightly from $7.2 million in the prior year. Cost reduction measures helped offset some of the impact from lower year-over-year revenues.
  • Gross margin improved to 67.1% in 2023, a 640 bp increase from the full year 2022. As was the case in the fourth quarter, much of the improvement resulted from lower inbound and outbound shipping costs.
  • Total operating expenses for the year were relatively unchanged at $14.2 million for the year ended 2023, compared with $14.1 million for the year ended 2022, excluding the recent quarter’s goodwill impairment charge.
  • The net loss for 2023 was $4.03 per share on 1.4 million weighted shares outstanding, compared with the prior year’s net loss of $15.15 per share on 0.5 million weighted shares outstanding, excluding the impact of the impairment charge and deemed dividend. Adding back the two non-cash charges, the 2023 net loss was $11.66 per share.

As of December 31, 2023, the Company had cash and cash equivalents of $6.4 million, compared with $7.0 million at the end of December 2022. During the year ended December 31, 2023, the Company received gross proceeds of $6.4 million from issuing common stock, warrants, and the exercise of common stock purchase warrants.

Investor Call and SEC Filings 
Chia-Lin Simmons, CEO, and Mark Archer, CFO, will host a live investor call and webcast to review the results today, Thursday, April 18, 2024, at 1:30 PM (PDT) / 4:30 PM (EDT).

Investors and analysts wishing to participate in the conference call must register to obtain their dial-in and pin number here: 
https://register.vevent.com/register/BI2ce1241f4eec494dab730a8fb99713f4.

To listen to the live webcast, please visit the LogicMark Investor Relations website here or use the following link: https://edge.media-server.com/mmc/p/z449z9mq.

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) is on a mission to let people of all ages lead a life with dignity, independence, and the joy of possibility. LogicMark provides personal emergency response systems (PERS), health communications devices, personal safety apps, services, and technologies to create a Connected Care Platform. Made up of a team of leading technologists with a deep understanding of IoT, AI, and machine learning and a passionate focus on understanding consumer needs, LogicMark is dedicated to building a ‘Care Village’ with proprietary technology and creating innovative solutions for the care economy. The Company’s PERS technologies are sold through the United States Veterans Health Administration, dealers, distributors, and direct-to-consumer. 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. To learn more, visit logicmark.com and investors.logicmark.com.

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 Company’s financials, the status of and plans for its products and services described above, and 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:
investors@logicmark.com


LogicMark, Inc.
BALANCE SHEET
       
  As of December 31, As of December 31,
    2023       2022  
Assets      
Current Assets      
Cash and cash equivalents $ 6,398,164     $ 6,977,114  
Restricted cash   -       59,988  
Accounts receivable, net   13,647       402,595  
Inventory   1,177,456       1,745,211  
Prepaid expenses and other current assets   460,177       349,097  
Total Current Assets   8,049,444       9,534,005  
       
Property and equipment, net   203,333       255,578  
Right-of-use assets, net   113,761       182,363  
Product development costs, net of amortization of $68,801 and $15,029, respectively   1,269,021       646,644  
Software development costs, net of amortization of $23,354 and $0, respectively   1,299,901       364,018  
Goodwill   3,143,662       10,958,662  
Other intangible assets, net of amortization of $5,666,509 and $4,904,713, respectively   2,938,058       3,699,854  
       
Total Assets $ 17,017,180     $ 25,641,124  
       
Liabilities, Series C Redeemable Preferred Stock and Stockholders’ Equity      
       
Current Liabilities      
Accounts payable $ 901,624     $ 673,052  
Accrued expenses   1,151,198       1,740,490  
Total Current Liabilities   2,052,822       2,413,542  
Other long-term liabilities   51,842       440,263  
Total Liabilities   2,104,664       2,853,805  
       
Commitments and Contingencies      
       
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 December 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 December 31, 2023 and December 31, 2022, respectively, aggregate liquidation preference of $319,000 as of December 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; 2,150,412 and 480,447 issued and outstanding as of December 31, 2023 and December 31, 2022, respectively   216       48  
Additional paid-in capital   112,946,891       106,070,253  
Accumulated deficit   (100,160,891 )     (85,610,282 )
       
Total Stockholders’ Equity   13,105,216       20,980,019  
       
Total Liabilities, Series C Redeemable Preferred Stock and Stockholders’ Equity $ 17,017,180     $ 25,641,124  
       


LogicMark, Inc.
STATEMENT OF OPERATIONS
               
  For the three months ended
December 31,		   For the Year Ended
December 31,
    2023       2022       2023       2022  
Revenues $ 2,425,689     $ 2,146,532     $ 9,929,629     $ 11,916,482  
Costs of goods sold   825,566       825,416       3,269,967       4,685,639  
Gross Profit   1,600,123       1,321,115       6,659,662       7,230,843  
               
Operating Expenses              
Direct operating cost   300,623       260,988       1,142,596       1,455,450  
Advertising cost   80,120       37,503       270,709       105,672  
Selling and marketing   585,981       403,385       2,206,091       1,094,628  
Research and development   175,833       399,348       982,684       1,241,265  
General and administrative   1,719,811       2,202,520       8,478,947       9,037,794  
Other expense   17,554       148,684       147,506       374,389  
Goodwill impairment   7,815,000       -       7,815,000       -  
Depreciation and amortization   295,127       228,450       944,596       828,137  
               
Total Operating Expenses   10,990,049       3,680,879       21,988,129       14,137,335  
               
Operating Loss   (9,389,926 )     (2,359,764 )     (15,328,467 )     (6,906,492 )
               
Other Income              
Interest income   71,960       61,736       221,871       119,483  
Other Income   -       -       246,138       -  
Total Other Income   71,960       61,736       468,009       119,483  
               
Loss before Income Taxes   (9,317,966 )     (2,298,027 )     (14,860,458 )     (6,787,009 )
Income tax (benefit) expense   (313,158 )     137,956       (309,849 )     137,956  
Net Loss $ (9,004,808 )   $ (2,435,983 )   $ (14,550,609 )   $ (6,924,965 )
Preferred stock dividends   (75,000 )     (75,000 )     (300,000 )     (328,456 )
Deemed dividend   (930,122 )     -       (930,122 )     -  
Net Loss Attributable to Common Stockholders $ (10,009,930 )   $ (2,510,983 )   $ (15,780,731 )   $ (7,253,421 )
               
Net Loss Per Share - Basic and Diluted $ (5.74 )   $ (5.23 )   $ (11.66 )   $ (15.15 )
               
Weighted Average Number of Common Shares Outstanding - Basic and Diluted   1,744,081       480,447       1,353,333       478,705  
               


Primary Logo

Source: LogicMark, Inc.