LogicMark, Inc. Announces First Quarter 2022 Financial and Operational Results
LOUISVILLE, Ky., May 12, 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 first quarter ended March 31, 2022.
Summary results for the first quarter ended March 31, 2022 include the following:
- Revenue was $3.7 million, up 50% from the year-ago quarter.
- Gross profit was $2.2 million, up 52% from the same quarter last year. Gross margin was 60%, compared to 59% in the same quarter last year. The improvement in gross margin was due to lower inbound freight costs.
- Operating expenses were $3.5 million, compared to $2.3 million in the same quarter last year. The increase in operating expenses was primarily due to higher selling, general and administrative expenses resulting from the Company increasing investment in new product development and a ramp up in our sales team.
- Operating loss was $1.3 million versus an operating loss of $800 thousand in the year-ago quarter, due primarily to higher operating expenses.
- Net loss was $1.3 million, compared to a net loss of $4.2 million in the same quarter last year. The $4.2 million loss in the prior year's quarter was negatively impacted by a warrant modification expense of $2.9 million.
- At quarter-end, the Company held $12.2 million in unrestricted cash, up from $12.0 million in the quarter ended December 31, 2021.
Chia-Lin Simmons, LogicMark's Chief Executive Officer, commented, "This quarter begins a new chapter for LogicMark with revenues up and margins expanding. An increase in sales due to growth in our U.S. Veterans Health Administration business and customers upgrading to a 4G device has helped start the year strong with revenues growing 50%.
"We plan to continue this momentum into the second quarter when we launch our direct-to-consumer efforts. We also plan to launch new at-home and on-the-go solutions later this year and add monitored services to our offerings. The addition of a recurring revenue element to our business model is exciting. We're optimistic about our direction and excited to transform LogicMark into a technology company focused on building solutions for the new care economy," concluded Ms. Simmons.
Investor Call and SEC Filings
On May 12, 2022, at 1:30 pm Pacific Time, or 4:30 pm Eastern Time, a live webcast will be held to discuss the Company's financial and operations results for the first quarter ended March 31, 2022.
To register and listen to the webcast, please visit the LogicMark Investor Relations website here, or at https://edge.media-server.com/mmc/p/3vaywbcq.
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
Conference ID: 7843876
The associated press release, SEC filings, and webcast replay witll also be accessible on the Company's investor relations website.
About LogicMark, Inc.
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
[email protected]
LogicMark, Inc |
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BALANCE SHEETS |
|||
March 31, |
December 31, |
||
2022 |
2021 |
||
Assets |
|||
Current Assets |
|||
Cash |
$12,224,887 |
$12,044,415 |
|
Restricted cash |
210,118 |
210,131 |
|
Accounts receivable, net |
133,262 |
98,749 |
|
Inventory, net |
876,084 |
1,237,280 |
|
Prepaid expenses and other current assets |
893,388 |
849,190 |
|
Total Current Assets |
14,337,739 |
14,439,765 |
|
Property and equipment: |
|||
Equipment |
404,925 |
410,444 |
|
Furniture and fixtures |
78,268 |
35,761 |
|
Tooling and molds |
9,427 |
9,427 |
|
492,620 |
455,632 |
||
Accumulated depreciation |
(455,889) |
(455,632) |
|
Property and equipment, net |
36,731 |
0 |
|
Right-of-use assets |
232,569 |
248,309 |
|
Goodwill |
10,958,662 |
10,958,662 |
|
Other intangible assets, net of amortization of $4,322,026 and $4,127,920, respectively |
4,282,541 |
4,476,647 |
|
Total Assets |
$29,848,242 |
$30,123,383 |
|
Liabilities, Series C Preferred Stock and Stockholders' Equity |
|||
Current Liabilities |
|||
Accounts payable |
$1,059,414 |
$492,431 |
|
Accrued expenses |
766,313 |
849,285 |
|
Total Current Liabilities |
1,825,727 |
1,341,716 |
|
Other long-term liabilities |
367,387 |
385,196 |
|
Total Liabilities |
2,193,114 |
1,726,912 |
|
Commitments and Contingencies (Note 8) |
|||
Series C Preferred Stock |
|||
Series C Preferred Stock, par value $0.0001 per share: 2,000 shares designated; 200 shares issued and |
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; 173,333 shares issued and |
520,000 |
520,000 |
|
Common Stock, par value $0.0001 per share: 100,000,000 shares authorized; 9,593,378 and 9,163,039 issued and |
959 |
917 |
|
Additional paid-in capital |
105,279,875 |
104,725,115 |
|
Accumulated deficit |
(79,953,006) |
(78,656,861) |
|
Total Stockholders' Equity |
25,847,828 |
26,589,171 |
|
Total Liabilities, Series C Preferred Stock and Stockholders' Equity |
$29,848,242 |
$30,123,383 |
LogicMark, Inc. |
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STATEMENT OF OPERATIONS |
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For the Three Months Ended |
|||
March 31, |
|||
2022 |
2021 (1) |
||
Revenues |
$3,650,689 |
$2,438,682 |
|
Costs of goods sold |
1,447,305 |
989,388 |
|
Gross Profit |
2,203,384 |
1,449,294 |
|
Operating Expenses |
|||
Direct operating cost |
474,442 |
244,669 |
|
Selling and marketing |
189,207 |
80,123 |
|
Research and development |
262,484 |
313,896 |
|
General and administrative |
2,335,949 |
1,379,071 |
|
Other expense |
30,084 |
10,568 |
|
Depreciation and amortization |
194,363 |
203,857 |
|
Total Operating Expenses |
3,486,529 |
2,232,184 |
|
Operating Loss |
(1,283,145) |
(782,890) |
|
Other Income and (Expense) |
|||
Interest expense |
- |
(861,248) |
|
Forgiveness of Paycheck Protection Program loan and accrued interest |
- |
303,710 |
|
Warrant modification expense |
- |
(2,881,729) |
|
Total Other Expense, Net |
- |
(3,439,267) |
|
Loss before Income Taxes |
(1,283,145) |
(4,222,157) |
|
Income Tax (Expense) Benefit |
- |
- |
|
Net Loss |
(1,283,145) |
(4,222,157) |
|
Preferred stock dividends |
(88,000) |
(1,555,801) |
|
Net Loss Applicable to Common Stockholders |
(1,371,145) |
(5,777,958) |
|
Net Loss Per Share - Basic and Diluted |
(0.14) |
(1.20) |
|
Weighted Average Number of Common Shares Outstanding - Basic and Diluted |
9,486,744 |
4,819,255 |
|
(1) Expenses in 2021 have been reclassified to conform to the 2022 presentation format |
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Nxt-ID, Inc. and Subsidiaries |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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For the Three Months Ended |
|||
March 31, |
|||
2022 |
2021 |
||
Cash Flows from Operating Activities |
|||
Net loss |
(1,283,145) |
(4,222,157) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|||
Depreciation |
257 |
16,012 |
|
Stock based compensation |
629,802 |
40,000 |
|
Amortization of debt discount |
- |
77,800 |
|
Amortization of intangible assets |
194,106 |
187,845 |
|
Amortization of deferred debt issuance costs |
- |
402,454 |
|
Non-cash charge for modification of warrant terms |
- |
2,881,729 |
|
Forgiveness of Paycheck Protection Plan loans and accrued interest |
(303,710) |
||
Changes in operating assets and liabilities: |
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Accounts receivable |
(34,513) |
66,045 |
|
Inventory |
361,196 |
(13,128) |
|
Prepaid expenses and other current assets |
(44,198) |
(80,715) |
|
Accounts payable |
566,983 |
(518,601) |
|
Accrued expenses |
(98,041) |
463,660 |
|
Total Adjustments |
1,575,591 |
3,219,391 |
|
Net Cash Provided by (Used in) Operating Activities |
292,446 |
(1,002,766) |
|
Cash flows from Investing Activities |
|||
Purchase of Equipment |
(36,988) |
||
Net Cash Used by Investing Activities |
(36,988) |
- |
|
Cash flows from Financing Activities |
|||
Proceeds from sale of common stock and warrants |
- |
6,670,494 |
|
Proceeds received in connection with issuance of Series E preferred stock, net |
- |
4,000,003 |
|
Term loan repayment |
- |
(5,515,625) |
|
Fees paid in connection with equity offerings |
- |
(23,698) |
|
Preferred Stock Dividends |
(75,000) |
- |
|
Net Cash (Used in) Provided by Financing Activities |
(75,000) |
5,131,174 |
|
Net Increase in Cash and Restricted Cash |
180,459 |
4,128,408 |
|
Cash and Restricted Cash - Beginning of Year |
12,254,546 |
4,537,546 |
|
Cash and Restricted Cash - End of Period |
12,435,005 |
8,665,954 |
|
Supplemental Disclosures of Cash Flow Information: |
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Cash paid during the periods for: |
|||
Interest |
- |
$443,975 |
|
Taxes |
- |
$25,999 |
|
Non-cash investing and financing activities: |
|||
Accrued fees incurred in connection with equity offerings |
- |
$20,458 |
|
Accrued preferred stock dividends |
$107,933 |
$75,000 |
|
Common stock issued in connection with management incentive plans |
- |
$80,456 |
|
Conversion of Series E preferred stock to common stock |
- |
$4,000,003 |
|
SOURCE LogicMark Inc.
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