LogicMark, Inc. Announces Strong Quarterly Operating Results
11 Maio 2023 - 5:05PM
LogicMark, Inc. (Nasdaq: LGMK), a provider of personal emergency
response systems (PERS), health communications devices, and
technology for the growing care economy, announces financial and
operating results for the first quarter ended March 31, 2023.
Recent Highlights:
- Revenue for the first quarter was $2.8 million, up 31% from the
prior quarter.
- Gross profit in the first quarter was $1.9 million, up 41% from
the prior quarter.
- Gross margin in the first quarter was 66.3%, up almost 600 bps
from 60.4% in the year-ago quarter.
- In January 2023, completed a registered public offering of
common stock, raising $5.2 million in gross proceeds.
- Launched LogicMark store on Amazon, expanding B2C sales
channel.
- Partnered with US Monitoring to offer 24/7 monitoring
services.
- Conducted a special meeting of stockholders in February 2023
with shareholders approving all proposals, including adoption of
LogicMark’s 2023 stock incentive plan, reincorporation of the
Company from Delaware to Nevada and reverse stock split
proposals.
- In April 2023, executed a 1-for-20 reverse stock split of the
Company’s outstanding shares of Common Stock and Series C
Redeemable Preferred Stock, subsequently regaining compliance with
Nasdaq listing requirements.
- Cash balance on March 31, 2023 was $9.8 million, up from $7.0
million at December 31, 2022.
Chia-Lin Simmons, LogicMark’s Chief Executive Officer,
commented, “Our recent launch of the LogicMark store on Amazon’s
platform represents a pivotal expansion of our B2C footprint,
establishing yet another channel upon which to grow sales,
especially in light of our upcoming product launch activities
slated for second half of 2023. Amazon, as the largest online
retailer in the country, presents an enormous opportunity for
LogicMark to expand its reach. We are pleased to see a steady
stream of sales emerging from this new channel which just launched
mid-April and look forward to expanding the store offerings with
upcoming product launches.”
Coinciding with this expansion is our exciting new 24/7
monitoring service partnership with US Monitoring. This represents
the launch of our new subscription revenue model and opportunities
to enhance the services margins for LogicMark which has, until now,
been a pure hardware company. US Monitoring, a U.S.-based company,
provides national wholesale monitoring services.
First Quarter 2023 Financial
ResultsRevenue for the quarter ended March 31, 2023 was
$2.8 million, up 31% from the prior quarter but down 23% from the
year-ago period. The year over year decline was the result of
one-time sales of 4G units replacing 3G units no longer supported
by the national cellular network carriers that took place in the
March 31, 2022 quarter.
Gross profit in the first quarter was $1.9
million, up 41% from the prior quarter but down 15% from the
year-ago period. The decline in gross profit compared to the March
31st quarter of 2022 was the result of lower sales, partially
offset by higher margins.
Gross margin in the first quarter was 66.3%, up
almost 600 bps from 60.4% in the year-ago quarter. The improvement
in gross margins was the result of improvements in supply chain
management, including a return to transpacific shipping versus air
freight from our Asia based contract manufacturers.
Total operating expense in the first quarter 2023 was $3.7
million, flat with the prior quarter and up $0.3 million in the
prior year period. The increase over the year-ago period was due
primarily to higher personnel costs and the costs associated with
the special meeting of shareholders.
Net loss attributable to common shareholders for the first
quarter was $1.9 million, versus a net loss of $2.4 million in the
prior quarter and a net loss of $1.4 million in the year-ago
period.
Net loss per share improved to a loss of $1.92 in the first
quarter versus a net loss of $2.89 per share in the prior year
quarter. The improvement is the result of a higher number of shares
outstanding due to the capital raise in January.
Cash balance as of March 31, 2023 was $9.8 million versus $7.0
million at December 31, 2022.
Investor Call and SEC Filings
Management will host a conference call at 1:30 PM (PDT) / 4:30
PM (EDT) today, to review financial results and provide a corporate
update. Following management’s remarks there will be a formal
question and answer session.
Participants wishing to dial into the conference call must
register here to obtain their dial in and pin number:
https://register.vevent.com/register/BId641e4fd5f2d4a63b16943590d8aef2b
To listen to the live webcast please visit the LogicMark
Investor Relations website here, or participants may join using the
following link: https://edge.media-server.com/mmc/p/dubee6qh
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) 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
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 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.
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 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, including the anticipated product launches of
AsterX+1 and Freedom Alert+; 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 IRInvestor@logicmark.com
Financial tables to follow:
|
LogicMark,
Inc. |
CONDENSED
BALANCE SHEETS |
FOR THE
QUARTERS ENDED MARCH 31, 2023, AND DECEMBER 31, 2022 |
|
|
March
31, |
|
December
31, |
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
Current Assets |
|
|
|
Cash and
cash equivalents |
$ |
9,781,799 |
|
|
$ |
6,977,114 |
|
Restricted
cash |
|
59,988 |
|
|
|
59,988 |
|
Accounts
receivable, net |
|
50,679 |
|
|
|
402,595 |
|
Inventory |
|
1,134,497 |
|
|
|
1,745,211 |
|
Prepaid
expenses and other current assets |
|
292,319 |
|
|
|
349,097 |
|
Total Current Assets |
|
11,319,282 |
|
|
|
9,534,005 |
|
|
|
|
|
Property and
equipment, net |
|
252,855 |
|
|
|
255,578 |
|
Right-of-use
assets, net |
|
164,554 |
|
|
|
182,363 |
|
Product
development costs, net of amortization of $15,029 |
|
1,253,749 |
|
|
|
1,010,662 |
|
Goodwill |
|
10,958,662 |
|
|
|
10,958,662 |
|
Other
intangible assets, net of amortization of $4,900,886 and
$4,710,437, respectively |
|
3,509,405 |
|
|
|
3,699,854 |
|
|
|
|
|
Total Assets |
$ |
27,458,507 |
|
|
$ |
25,641,124 |
|
|
|
|
|
Liabilities, Series C Redeemable Preferred Stock and
Stockholders’ Equity |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
Accounts
payable |
$ |
521,283 |
|
|
$ |
673,052 |
|
Accrued
expenses |
|
750,532 |
|
|
|
1,740,490 |
|
Total Current Liabilities |
|
1,271,815 |
|
|
|
2,413,542 |
|
Other
long-term liabilities |
|
424,195 |
|
|
|
440,263 |
|
Total Liabilities |
|
1,696,010 |
|
|
|
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 March 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
March 31, 2023 and December 31, 2022, respectively, aggregate
liquidation preference of $319,000 as of March 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;
1,220,308 and 479,669 issued and outstanding as of March 31, 2023
and December 31, 2022, respectively |
|
123 |
|
|
|
48 |
|
Additional
paid-in capital |
|
111,079,795 |
|
|
|
106,070,253 |
|
Accumulated
deficit |
|
(87,443,721 |
) |
|
|
(85,610,282 |
) |
|
|
|
|
Total Stockholders’ Equity |
|
23,955,197 |
|
|
|
20,980,019 |
|
|
|
|
|
Total Liabilities, Series C Redeemable Preferred Stock and
Stockholders’ Equity |
$ |
27,458,507 |
|
|
$ |
25,641,124 |
|
|
|
|
|
LogicMark, Inc. |
CONDENSED STATEMENTS OF OPERATIONS |
FOR THE QUARTERS ENDED MARCH 31, 2023, AND
2022 |
|
|
For the Three Months Ended March 31, |
|
2023 |
|
|
2022 |
|
Revenues |
$ |
2,809,717 |
|
|
$ |
3,650,689 |
|
Costs of goods
sold |
947,169 |
|
|
1,447,305 |
|
Gross
Profit |
1,862,548 |
|
|
2,203,384 |
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
Direct operating cost |
262,800 |
|
|
474,442 |
|
Advertising costs |
48,116 |
|
|
- |
|
Selling and marketing |
465,536 |
|
|
189,207 |
|
Research and development |
313,887 |
|
|
262,484 |
|
General and
administrative |
2,413,760 |
|
|
2,335,949 |
|
Other expense |
28,318 |
|
|
30,084 |
|
Depreciation and
amortization |
215,998 |
|
|
194,363 |
|
|
|
|
|
|
|
Total Operating
Expenses |
3,748,415 |
|
|
3,486,529 |
|
|
|
|
|
|
|
Operating
Loss |
(1,885,867 |
) |
|
(1,283,145 |
) |
|
|
|
|
|
|
Other
Income |
|
|
|
|
|
Interest income |
52,428 |
|
|
- |
|
Total Other
Income |
52,428 |
|
|
- |
|
|
|
|
|
|
|
Loss before Income
Taxes |
(1,833,439 |
) |
|
(1,283,145 |
) |
Income tax expense |
- |
|
|
- |
|
Net Loss |
(1,833,439 |
) |
|
(1,283,145 |
) |
Preferred stock dividends |
(75,000 |
) |
|
(88,000 |
) |
Net Loss Attributable
to Common Stockholders |
$ |
(1,908,439 |
) |
|
$ |
(1,371,145 |
) |
|
|
|
|
|
|
Net Loss Attributable to
Common Stockholders Per Share - Basic and Diluted |
$ |
(1.92 |
) |
|
$ |
(2.89 |
) |
|
|
|
|
|
|
Weighted Average Number of
Common Shares Outstanding - Basic and Diluted |
996,080 |
|
|
474,099 |
|
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