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
Investor@logicmark.com
LogicMark,
Inc
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BALANCE
SHEETS
|
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|
|
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|
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|
March
31,
|
|
December
31,
|
|
2022
|
|
2021
|
Assets
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
Cash
|
$12,224,887
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|
$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
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|
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
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|
|
|
|
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
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|
|
|
|
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
outstanding as of March 31, 2022 and December 31, 2021
|
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
outstanding as of March 31, 2022, aggregate liquidation preference
of $520,000 as of March 31, 2022, and
December 31, 2021
|
520,000
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|
520,000
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Common Stock, par value
$0.0001 per share: 100,000,000 shares authorized; 9,593,378 and
9,163,039 issued and
outstanding as of March 31, 2022 and December 31, 2021
|
959
|
|
917
|
Additional paid-in
capital
|
105,279,875
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|
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
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|
$30,123,383
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LogicMark,
Inc.
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STATEMENT OF
OPERATIONS
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For the Three Months
Ended
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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
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|
203,857
|
|
|
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|
Total Operating
Expenses
|
3,486,529
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|
2,232,184
|
|
|
|
|
Operating
Loss
|
(1,283,145)
|
|
(782,890)
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|
|
|
|
Other Income and
(Expense)
|
|
|
|
Interest
expense
|
-
|
|
(861,248)
|
Forgiveness of Paycheck
Protection Program loan and accrued interest
|
-
|
|
303,710
|
Warrant modification
expense
|
-
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|
(2,881,729)
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Total Other Expense,
Net
|
-
|
|
(3,439,267)
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|
|
|
|
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)
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|
|
|
|
Net Loss Per Share -
Basic and Diluted
|
(0.14)
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|
(1.20)
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding - Basic and
Diluted
|
9,486,744
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|
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
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March
31,
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|
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:
|
|
|
|
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:
|
|
|
|
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
|
|
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SOURCE LogicMark Inc.