LOUISVILLE, Ky., Nov. 12, 2021 /PRNewswire/ -- Nxt-ID,
Inc. (NASDAQ: NXTD) (the "Company" or "NXT-ID"), provider of
personal emergency response systems (PERS), health communications
devices and IoT technology, announced financial and operations
results for the third quarter and nine-month period ended
September 30, 2021.
Chia-Lin Simmons, the Company's
Chief Executive Officer, commented, "During the third quarter of
2021, we continued working towards establishing a solid foundation
for future growth. In this respect, we obtained shareholder
approval for a reverse stock split in October, enabling us to
remain listed on the Nasdaq Capital Market ("Nasdaq"). We view this
as a vote of confidence by our shareholders that we are steering
our company in the right direction."
"Along with our recent financings, we now have additional runway
to continue developing our product, client and revenue base. And we
are also in discussions regarding partnership opportunities to
bring technologies to market in new and innovative ways. In
fact, this past quarter, we filed two provisional patents in the
fall detection category, good examples of the innovative IP
solutions that we hope to bring to market."
"We recently made the decision to close our Connecticut corporate office and consolidate
corporate functions into our Louisville division office, an opportunity to
further rationalize our cost structure. Discussions are also
continuing with various candidates to help build our management
team's capabilities and in this respect, we hope to make
announcements in the near term." concluded Ms. Simmons.
Summary results for the third quarter ended September 30, 2021, include the
- Revenue was $2.4 million, a
decrease of 10% from the same quarter last year.
- Gross profit was $1.3 million, a
decrease of $0.6 million compared
with the same quarter last year. Gross margin was 53%,
compared with 71% in the prior year. Both gross profit and
margin in the recent quarter were materially impacted by the
addition of a reserve for obsolete inventory.
- Operating expenses were $1.8
million, compared to $2.0
million in the prior quarter and $2.4
million in the same quarter last year.
- Operating loss was $0.5 million,
slightly better compared to the operating loss in the same quarter
- Net loss was $0.7 million, or
$0.12 per share, compared to a net
loss of approximately $1.1 million,
or $0.32 per share, in the same
quarter last year. Earnings per share have been adjusted for the
1-for-10 reverse stock split made on October
- At quarter-end, the Company held $16.0
million in unrestricted cash.
Summary results for the nine months ended September 30, 2021, include:
- Revenue was $7.6 million, a
decrease of $1.3 million, or 14%,
compared to the nine-month period ended September 30, 2020.
- Gross profit was $4.6 million, a
decrease of $1.8 million, or 29%,
from the same period last year. Gross margin declined from
73% to 61% due to inventory reserves and the launch of our 4G
Guardian product in November
- Operating expenses were $6.1
million, up $0.1 million, or
1%, from the same period last year.
- Operating loss was $1.5 million
compared to an operating income of $0.4
million during the same nine-month period last
- Net loss was $7.7 million, or
$1.43 per share, compared to a net
loss of $1.4 million, or $0.44 per share, in the same nine-month period
last year. Earnings per share have been adjusted for the
- As previously announced, on October 15,
2021, a special meeting of shareholders was held to vote on
reverse stock split proposals for both the Company's common and
Series C preferred shares outstanding and both proposals were
approved by majority vote. As a result of the reverse stock splits,
every ten shares of common stock were exchanged for one share of
common stock and every ten shares of Series C preferred stock were
exchanged for one share of Series C preferred stock. Each of the
reverse stock splits became effective as of 5:30 p.m. Eastern Time on October 15, 2021.
- On November 1, 2021, the
Company's wholly owned subsidiary, LogicMark, LLC, made a
$1.1 million payment to its senior
lender, completely satisfying all of its financial obligations with
that lender. As of November 1, 2021,
the Company had no senior debt obligations.
- On November 3, 2021, the Company
received a letter from The Nasdaq Stock Market acknowledging that
the Company had regained compliance with Nasdaq Listing Rule
5550(a)(2), which requires the Company's common stock listed on
Nasdaq to maintain a minimum bid price of $1.00 per share, and that such common stock will
remain listed on Nasdaq subject to the Company's ongoing compliance
with all Nasdaq listing rules.
- On November 3, 2021, the Company
set the record date for it's Annual Meeting of Shareholders, which
will be held in New York City on
December 17, 2021.
Investor Call and SEC Filings
This press release will be available on the Company's website in
the investor relations section and filed as an exhibit to a Form
8-K filed by the Company with the Securities and Exchange
Commission ("SEC"). The Company's Form 10-Q for the quarter
ended September 30, 2021, with full
financial results and management's discussion and analysis, will be
filed with the SEC, along with an available link on the Company's
investor relations section of its Web site.
A live webcast to discuss the Company's financial and operations
results for the third quarter ended September 30, 2021, will be held on November 12, 2021, at 11:00 am Pacific Time, or 1:00 pm Eastern Time. To register for the
visit https://edge.media-server.com/mmc/p/2hbppitw prior
to the start of the event.
For those wishing to participate by telephone, please use the
following dial-in credentials:
US/CANADA Participant Toll-Free
Dial-In Number: (877) 644-5287
International Dial-In Number: (281) 973-6282
Conference ID: 4638638
If unable to participate in the live call, a replay of the
webcast will be available following the conference call on the
Company's investor relations section of its website.
About Nxt-ID, Inc.
Nxt-ID, Inc. (NASDAQ: NXTD) provides personal emergency
response systems (PERS), health communications devices and IoT
technology that creates a connected care platform. The
Company's devices provide additional support for those who wish to
age in their homes. LogicMark LLC, a wholly owned subsidiary
of NXT-ID, is helping revolutionize the PERS industry by
incorporating two-way voice communication technology directly in
the medical alert pendant and providing the life-saving technology
at a price point everyday consumers can afford. The PERS
technologies are sold through dealers and distributors and
the United States Veterans Health Administration.
The Company was 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 the
Company's corporate information,
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; 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 Dubois
Lightspeed PR/M for Nxt-ID