LogicMark, Inc. (Nasdaq: LGMK), a provider of personal
emergency response systems (PERS), health communications devices,
and technology for the growing care economy, announced financial
results for the third quarter ended September 30, 2023, and recent
highlights.
Results and Recent Highlights:
- Gross margin percentage improved to 67% in the third quarter of
2023, a five percentage point increase compared to 62% for the
prior year period.
- Revenues were $2.4 million, compared with $2.8 million for the
prior year period.
- Overall operating expenses were 12% lower at $3.4 million
compared with $3.8 million in the prior year period.
- Cash and cash equivalents were $6.7 million, on September 30,
2023, compared with $7.0 million at year-end 2022.
- Two new board members were recently appointed to expand depth
of experience.
- Freedom Alert Plus PERS shipments are in progress, complemented
by our unique Care Village software suite.
- Preparations are underway for the launch of a new PERS device
in the coming weeks.
Ms. Chia-Lin Simmons, Chief Executive
Officer of LogicMark, commented, “In the third quarter, we
made significant strides with our Care Village ecosystem as our
catalog of innovative products, services, and intellectual property
expanded. With the successful launch of the new Freedom Alert Plus,
our focus now turns to the release of another new PERS product in
the weeks ahead. This will mark our second product launch this year
and we are delighted to report that the initial feedback during
testing has been very positive, particularly regarding its compact
design, GPS location service, and fall detection feature."
“I’m pleased to see that our new product launches are gaining
traction, as we introduce a variety of industry-leading solutions
with modern technology to meet on-the-go and at-home customer
needs. We pride ourselves on offering options for every budget,
including premium Wi-Fi-connected devices with a monthly
subscription service, continuous monitoring, and automatic software
updates through our Care Village application. We also offer 4G LTE
as well as landline-based connectivity to support consumers whose
budget better accommodates the one-time purchase of a PERS device
with no recurring costs. For those unable to purchase their PERS
device upfront, interest-free installment plans are also
available.”
“Given our plans to enter several new verticals, we recently
named two new board members, expanding the total number of
directors to six. We look forward to the Board’s collective
expertise in many areas, including corporate governance, finance,
operations, hardware, and software solutions. I’m excited about our
depth of talent and growing product offering as we enter the next
phase of our evolution as a company,” concluded Simmons.
Third Quarter 2023 Results
Revenue for the third quarter ended September 30, 2023, was $2.4
million compared with $2.8 million in the same period last year.
The decrease in year-over-year revenues was due to one-time
replacement sales in the same period last year of Freedom Alert 911
Plus 4G PERS units replacing older 3G units, as the national
cellular network carriers announced in 2022 that they would no
longer support 3G networks.
Gross profit margin in the third quarter was 67%, or five
percentage points higher compared with 62% in the prior year
period. The higher margin was due to improvements in the Company’s
supply chain management, including a shift from air freight to
transpacific shipping from Asia-based contract manufacturers, as
well as a competitive bidding process to obtain optimal shipping
rates to all domestic customers. Gross profit in the third quarter
of this year was $1.6 million compared to $1.7 million in the same
period last year.
Total operating expenses in the third quarter of 2023 were $3.4
million, decreasing 12% or $0.5 million, compared with the same
period last year and down 13% quarter-over-quarter. The lower
operating expenses year-over-year were mainly due to a reduction in
general and administrative expenses, slightly offset by higher
selling and marketing expenses.
Net loss attributable to common shareholders for the third
quarter was $1.5 million compared with a net loss of $2.2 million
in the same period last year. On a fully diluted basis,
the net loss per share was $1.10, compared with a net loss of $4.53
per share in the prior period. The year-over-year earnings per
common share comparison includes a 1-for-20 reverse split of
outstanding common stock that took place in the second quarter of
2023.
As of September 30, 2023, the cash and cash equivalents balance
was $6.7 million, compared with $7.0 million at the end of December
2022.
Investor Call and SEC Filings
Ms. Chia-Lin Simmons, CEO, and Mr. Mark Archer, CFO, will host a
live investor call and webcast on November 9, 2023, at 1:30 PM
(PDT) / 4:30 PM (EDT) to review the Company’s results.
Investors wishing to participate in the conference call must
register to obtain their dial-in and pin number here
https://register.vevent.com/register/BI5a557980b737415b9849bf393083a654.
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/tpcfsqtm.
The associated press release, SEC filings, and webcast replay
will also be accessible on the 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 the
confidence to age in place. LogicMark revolutionized the PERS
industry by directly incorporating two-way voice communication
technology into its medical alert pendant, providing 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, dealers, distributors, and
direct-to-consumers. 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. For more information visit our corporate website
at logicmark.com and the investor website at
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 successful execution of the
Company’s business strategy. The Company’s actual results could
differ materially from those anticipated in these forward-looking
statements because 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 Aster,
CPaaS and Freedom Alert Plus; 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: A. Pierre
DuboisFINN Partners, Inc.investors@logicmark.com Financial
tables to follow:
LogicMark, Inc.CONDENSED BALANCE
SHEETS(Unaudited) |
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Assets |
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,682,997 |
|
|
$ |
6,977,114 |
|
Restricted cash |
|
|
59,988 |
|
|
|
59,988 |
|
Accounts receivable, net |
|
|
12,194 |
|
|
|
402,595 |
|
Inventory |
|
|
1,135,786 |
|
|
|
1,745,211 |
|
Prepaid expenses and other
current assets |
|
|
680,872 |
|
|
|
349,097 |
|
Total Current
Assets |
|
|
8,571,837 |
|
|
|
9,534,005 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
228,530 |
|
|
|
255,578 |
|
Right-of-use assets, net |
|
|
128,718 |
|
|
|
182,363 |
|
Product development costs, net
of amortization of $15,029 as of September 30, 2023 and December
31, 2022 |
|
|
1,117,135 |
|
|
|
646,644 |
|
Software development
costs |
|
|
1,018,810 |
|
|
|
364,018 |
|
Goodwill |
|
|
10,958,662 |
|
|
|
10,958,662 |
|
Other intangible assets, net
of amortization of $5,476,060 and $4,904,713, respectively |
|
|
3,128,507 |
|
|
|
3,699,854 |
|
|
|
|
|
|
|
|
|
|
Total
Assets |
|
$ |
25,152,199 |
|
|
$ |
25,641,124 |
|
|
|
|
|
|
|
|
|
|
Liabilities, Series C Redeemable Preferred Stock and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
715,838 |
|
|
$ |
673,052 |
|
Accrued expenses |
|
|
1,211,005 |
|
|
|
1,740,490 |
|
Total Current
Liabilities |
|
|
1,926,843 |
|
|
|
2,413,542 |
|
Other long-term
liabilities |
|
|
390,259 |
|
|
|
440,263 |
|
Total
Liabilities |
|
|
2,317,102 |
|
|
|
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 September 30, 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 September
30, 2023 and December 31, 2022, respectively, aggregate liquidation
preference of $319,000 as of September 30, 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; 1,419,017 and
480,447 issued and outstanding as of September 30, 2023 and
December 31, 2022, respectively |
|
|
142 |
|
|
|
48 |
|
Additional paid-in
capital |
|
|
111,864,732 |
|
|
|
106,070,253 |
|
Accumulated deficit |
|
|
(91,156,077 |
) |
|
|
(85,610,282 |
) |
|
|
|
|
|
|
|
|
|
Total Stockholders’
Equity |
|
|
21,027,797 |
|
|
|
20,980,019 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities,
Series C Redeemable Preferred Stock and Stockholders’
Equity |
|
$ |
25,152,199 |
|
|
$ |
25,641,124 |
|
LogicMark, Inc.CONDENSED STATEMENTS OF
OPERATIONS(Unaudited) |
|
|
|
For the Three Months EndedSeptember
30, |
|
|
For the Nine Months Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues |
|
$ |
2,367,227 |
|
|
$ |
2,751,570 |
|
|
$ |
7,503,940 |
|
|
$ |
9,769,951 |
|
Costs of goods
sold |
|
|
769,956 |
|
|
|
1,047,204 |
|
|
|
2,444,401 |
|
|
|
3,860,176 |
|
Gross
Profit |
|
|
1,597,271 |
|
|
|
1,704,366 |
|
|
|
5,059,539 |
|
|
|
5,909,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct operating cost |
|
|
266,746 |
|
|
|
345,972 |
|
|
|
841,974 |
|
|
|
1,156,959 |
|
Advertising costs |
|
|
57,195 |
|
|
|
68,170 |
|
|
|
190,588 |
|
|
|
68,170 |
|
Selling and marketing |
|
|
636,643 |
|
|
|
264,528 |
|
|
|
1,620,109 |
|
|
|
728,746 |
|
Research and development |
|
|
242,697 |
|
|
|
374,842 |
|
|
|
806,851 |
|
|
|
841,917 |
|
General and
administrative |
|
|
1,901,516 |
|
|
|
2,575,105 |
|
|
|
6,759,135 |
|
|
|
7,025,674 |
|
Other expense |
|
|
54,296 |
|
|
|
3,222 |
|
|
|
133,261 |
|
|
|
35,306 |
|
Depreciation and
amortization |
|
|
217,767 |
|
|
|
210,632 |
|
|
|
649,468 |
|
|
|
599,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses |
|
|
3,376,860 |
|
|
|
3,842,471 |
|
|
|
11,001,386 |
|
|
|
10,456,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss |
|
|
(1,779,589 |
) |
|
|
(2,138,105 |
) |
|
|
(5,941,847 |
) |
|
|
(4,546,683 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
88,975 |
|
|
|
44,587 |
|
|
|
149,914 |
|
|
|
57,747 |
|
Other income |
|
|
246,138 |
|
|
|
- |
|
|
|
246,138 |
|
|
|
- |
|
Total Other
Income |
|
|
335,113 |
|
|
|
44,587 |
|
|
|
396,052 |
|
|
|
57,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before Income
Taxes |
|
|
(1,444,476 |
) |
|
|
(2,093,518 |
) |
|
|
(5,545,795 |
) |
|
|
(4,488,936 |
) |
Income tax expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net Loss |
|
|
(1,444,476 |
) |
|
|
(2,093,518 |
) |
|
|
(5,545,795 |
) |
|
|
(4,488,936 |
) |
Preferred stock dividends |
|
|
(75,000 |
) |
|
|
(81,790 |
) |
|
|
(225,000 |
) |
|
|
(257,934 |
) |
Net Loss Attributable
to Common Stockholders |
|
$ |
(1,519,476 |
) |
|
$ |
(2,175,308 |
) |
|
$ |
(5,770,795 |
) |
|
$ |
(4,746,870 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Attributable to
Common Stockholders Per Share - Basic and Diluted |
|
$ |
(1.10 |
) |
|
$ |
(4.53 |
) |
|
$ |
(4.73 |
) |
|
$ |
(9.93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of
Common Shares Outstanding - Basic and Diluted |
|
|
1,380,373 |
|
|
|
480,447 |
|
|
|
1,219,749 |
|
|
|
478,118 |
|
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