MELBOURNE, Florida,
May 16, 2017 /PRNewswire/ --
NXT-ID, Inc. (NASDAQ:NXTD) ("NXT-ID" or the "Company"), a
security technology company, is pleased to report its financial and
operating results for the first quarter ended March 31, 2017.
Gino Pereira, Chief Executive
Officer of NXT-ID said, "This quarter is a milestone for the
Company with significant revenue growth due to LogicMark's sales in
the personal emergency response (PERS) market and significant
shipments of the Flye smart card to World Ventures Holdings
("WVH"), a related party, in anticipation of their roll-out to
their global membership. In addition, the Company had operating
income of $1,066,902 which resulted
primarily from the strong gross profit margin earned on both the
LogicMark sales and the Flye smart card sales to World
Ventures."
First Quarter Highlights:
- Revenue for Q1 2017 was $6,681,297 as compared to revenue of $42,302 in Q1 2016.
- Gross profit for Q1 2017 was $3,509,290 as compared to a gross loss of
$(32,853) in Q1 2016.
- Operating expenses were $2,442,388 in Q1 2017 as compared to $2,294,430 in Q1 2016.
- Operating income for Q1 2017 was $1,066,902 as compared to an operating loss of
$(2,327,283) in Q1 2016.
Results of Operations
Comparison of three months ended March 31, 2017 and March
31, 2016
Revenue. Our revenues for the three months ended
March 31, 2017 were $6,681,297 compared to $42,302 for the three months ended March 31, 2016. The increase in our revenues for
the three months ended March 31, 2017
versus the three months ended March 31,
2016 is directly related to shipments of the Flye card for
WVH and LogicMark product sales which was acquired on July 25, 2016.
Cost of Revenue and Gross Profit. Our gross profit for
the three months ended March 31, 2017
was $3,509,290 compared to a gross
loss of $32,853 for the three months
ended March 31, 2016. The increase in
gross profit resulted from the initial shipments of the Flye
smartcard and strong gross margin contributed by LogicMark, both of
which were not part of our operating results in the three months
ended March 31, 2016.
Operating Expenses. Operating expenses for the three
months ended March 31, 2017, totaled
$2,442,388 and consisted of research
and development expenses of $84,944,
selling and marketing expenses of $996,758 and general and administrative expenses
of $1,360,686. Selling and marketing
expenses consisted primarily of salaries and consulting services of
$262,167, merchant processing fees of
$108,127, and sales commissions of
$72,241. General and administrative
expenses consisted of salaries and consulting services of
$452,083, accrued management and
employee incentives of $150,000 and
legal, audit and accounting fees of $200,707. Also included in general and
administrative expenses is $86,140 in
non-cash stock compensation to consultants and board members.
Operating expenses for the three months ended March 31, 2016, totaled $2,294,430 and consisted of research and
development expenses of $361,324,
selling and marketing expenses of $806,518 and general and administrative expenses
of $1,126,588. The research and
development expenses relate primarily to salaries and consulting
services of $201,820, as well as
expenses of $62,502 related to the
design, development and manufacturing of the Wocket®. Selling and
marketing expenses consisted primarily of salaries and consulting
services of $152,870 and advertising
and promotional expenses, including trade shows, of $391,045. General and administrative expenses for
the three months ended March 31, 2016
consisted of salaries and consulting services of $275,453, accrued management and employee
incentives of $150,000, legal, audit
and accounting fees of $338,234 and
consulting fees for public relations of $31,282. Also included in general and
administrative expenses is $90,600 in
non-cash stock compensation to consultants and board members.
Operating Profit. The operating profit for the three
months ended March 31, 2017, was
$1,066,902 compared with an operating
loss of $2,327,283 for the three
months ended March 31, 2016. The
significant favorable change in operating profit for the three
months ended March 31, 2017 is
attributable to the enhanced gross margin discussed above as well
as certain cost containment efforts related to the operating
expenses.
Net Loss. The net loss for the three months ended
March 31, 2017, was $730,215. The net loss was primarily attributable
to the interest expense incurred of $1,703,930. The net loss for the three months
ended March 31, 2016, was
$5,411,696 and resulted in part from
the operational expenses incurred during the three months ended
March 31, 2016. In addition, the net
loss was attributable to interest expense incurred of $512,667, unfavorable changes in fair value of
derivative liabilities of $2,299,020
and a loss on extinguishment of debt of $272,749 resulting from the accelerated
installment payments made during the three months ended
March 31, 2016.
Full financial results and Management's Discussion and Analysis
can be found in the Company's Form 10-Q for the quarterly period
ended March 31, 2017 filed with the
Securities and Exchange Commission ("SEC") on May 15, 2017.
About NXT-ID Inc. - Mobile Security for a Mobile
World
Nxt-ID, Inc. (NASDAQ: NXTD) is a security technology Company
providing security for finance, assets and healthcare. The
Company's innovative MobileBio® solution mitigates risks associated
with mobile computing, m-commerce and smart OS-enabled devices.
With extensive experience in biometric identity verification,
security and privacy, encryption and data protection, payments,
miniaturization and sensor technologies, the Company partners with
industry leading companies to provide solutions for modern payment
and the Internet of Things ("IoT") applications. The Company's
wholly owned subsidiary, LogicMark, LLC, manufactures and
distributes nonmonitored and monitored personal emergency response
systems ("PERS") sold through the United States Department of
Veterans Affairs ("VA"), healthcare durable medical equipment
dealers and distributors and monitored security dealers and
distributors.
http://nxt-id.com/ http://www.logicmark.com
Forward-Looking Statements for NXT-ID: 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;
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, including its most recent Annual Report on Form 10-K and
subsequent filings.
NXT-ID Inc. Contact:
Corporate info: info@nxt-id.com
Media:
D. Van Zant
+1-800-665-0411
press@nxt-id.com
SOURCE NXT-ID, Inc.