LOUISVILLE, Ky., April 19,
2022 /PRNewswire/ -- LogicMark, Inc. (Nasdaq: LGMK)
(the "Company" or "LogicMark") (formerly Nxt-ID, Inc.), a provider
of personal emergency response systems (PERS), health
communications devices, and IoT technology for the growing Care
Economy, announces financial and operating results for the fourth
quarter and full year ended December
31, 2021.
Chia-Lin Simmons, LogicMark's
Chief Executive Officer, commented, "As we close the books on 2021,
we open a new chapter for our company, which focuses on building a
growth-oriented technology platform. Last year was a transition
period for our Company as I assumed the role of CEO in mid-June and
began assessing how to best reorganize and define the resources
needed for success. We used the time to identify and begin to
address leadership, financial, and operational weaknesses to
position the Company for future growth. This included
successfully regaining Nasdaq compliance and cleaning up the
balance sheet, which resulted in year-end charges.
"LogicMark entered 2022 with a fresh start and new
strategy. We believe our Caring Platform as a Service (CPaaS)
is an innovative approach that not only leverages our core
business, but also positions it to create new products and enter
new markets. Based on this, we changed the Company name to
LogicMark, Inc., dedicated to the goal of an expanded footprint in
the Care Economy through health communications and connected
devices. The new corporate identity comes from one of our
operating divisions of the same name, capitalizing on its strong
reputation within the PERS industry and with the U.S. Veteran's
Administration.
"Since late last year, LogicMark has been actively working on
the 3G transition in partnership with the Veterans Administration.
By the end of 2022, many of the largest U.S. wireless carriers will
shut down their 3G networks and many of our users are not familiar
with the steps needed to transition their 3G devices. Using
education, mailings, and media outreach, we have facilitated the
replacement of thousands of customer devices with our 4G powered
products," added Ms. Simmons.
"In addition, LogicMark recently welcomed four seasoned
executives with diverse skill sets to help lead new financial and
operational initiatives that the company believes will build
shareholder value. The permanent appointment of Mark Archer as Chief Financial Officer will
strengthen governance with additional financial controls and
reporting, optimize the capital structure, and enable the thorough
review of potential future acquisitions. Rafael Saavedra joined as VP of Engineering to
expand the Company's knowledge of cutting-edge technologies and
introduce expanded product lines.
"Two new Board members also joined in the first quarter of 2022.
Sherice Torres will contribute
significant marketing experience gained while working for large
companies, including Nickelodeon, Google and Meta. Internet pioneer
John Pettitt joined the Board and
brings deep experience in multiple technology domains including web
and mobile technologies, patents, and ecommerce. Both
will help steer the many exciting changes planned at
LogicMark.
"As we entered 2022, we have seen strong demand for our 4G
products as 3G networks are being phased out, which we expect to
positively impact sales in the first quarter. As we look
ahead to the second quarter, we plan to launch new business
partnerships, products and an e-commerce website targeted at the
direct-to-consumer market. These steps are meant to
supplement our existing line of at-home and on-the-go
solutions. New software and personal safety services will
broaden our health communications software beyond our core audience
of veterans and the elderly," concluded Ms.
Simmons.
Summary results for the fourth quarter ended December 31, 2021 include the
following:
- Revenue was $2.4 million,
a decrease of 6% from the fourth quarter of last year, but up 1%
from the prior quarter.
- Gross profit was $1.0 million, a
decrease of $0.1 million, compared to
the same quarter last year. Gross margin was 43%, compared to 46%
in the same quarter last year. The reduction in gross margin was
due to a mix shift to our costlier Guardian Alert 911 Plus 4G
unit.
- Operating expenses were $7.1
million, compared to $2.2
million in the same quarter last year. Expenses in the
fourth quarter of 2021 included a $4.5
million non-cash goodwill impairment charge. Adjusting for
this expense, operating expenses would have been $2.6 million, an increase of $0.4 million, or 18% over the fourth quarter of
last year.
- Operating loss was $6.1 million
versus an operating loss in the prior year's fourth quarter of
$1.0 million. Adjusting for the
goodwill impairment charge, operating loss would have been
$1.6 million.
- Net loss was $6.3 million,
compared to a net loss of $1.6
million in the same quarter last year. Adjusting for the
goodwill impairment charge, net loss for the quarter would have
been $1.8 million, $0.2 million higher than the same quarter last
year.
- At quarter-end, the Company held $12.0
million in unrestricted cash.
Summary results for the year ended December 31, 2021 include:
- Revenue was $10.0 million, a
decrease of $1.4 million, or 12% from
the prior year.
- Gross profit was $5.7 million, a
decrease of $2.0 million, or 26% from
the prior year. Gross margin declined from 67% to 57% due to an
increase in inventory reserves and the replacement of our 3G
Guardian Alert 911 Plus product with a more expensive to
manufacture 4G version, which was launched in November 2020.
- Operating expenses were $13.2
million, up $5.0 million, or
60% higher than the prior year. Adjusting for the goodwill
impairment charge, operating expenses would have been up
$0.4 million, or 5% higher.
- Operating loss was $7.5 million
in 2021, compared to an operating loss of $0.6 million last year.
- Net loss was $11.7 million, or
$2.23 per share, compared to a net
loss of $3.7 million, or $1.14 per share for prior year. Earnings per
share have been adjusted for the Company's October 2021 reverse stock splits.
- Net loss for 2021 included $10.0
million in non-cash charges, including goodwill impairment,
warrant modification expense, stock compensation expense and
depreciation and amortization, compared to $1.6 million in similar non-cash charges in
2020.
Investor Call and SEC Filings
On April 19, 2022, at 11:00 am Pacific Time, or 2:00 pm Eastern Time, a live webcast will be held
to discuss the Company's financial and operations results for the
fourth quarter and year ended December
31, 2021.
To register and listen to the webcast please visit the investor
relations section of LogicMark's website here, or
https://edge.media-server.com/mmc/p/zuhcfg2m.
For investors who wish to participate by telephone, please use
the following dial-in credentials:
US/CANADA Participant Toll-Free
Dial-In Number: (877) 644-5287
US/CANADA Participant
International Dial-In Number: (281) 973-6282
The associated press release, Securities and Exchange Commission
filings and webcast replay will also be accessible on the investor
relations page of the Company's website.
About Us
LogicMark, Inc. (NASDAQ: LGMK) provides personal emergency
response systems (PERS), health communications devices and IoT
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 that 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.
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; 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
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SOURCE LogicMark Inc.