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LogicMark, Inc. Announces First Quarter 2022 Financial and Operational Results

LGMK

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.

(PRNewsfoto/NXT-ID, Inc.)

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




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
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


520,000

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


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.


STATEMENT OF OPERATIONS





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








Nxt-ID, Inc. and Subsidiaries




CONSOLIDATED STATEMENTS OF CASH FLOWS









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:




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


Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/logicmark-inc-announces-first-quarter-2022-financial-and-operational-results-301545800.html

SOURCE LogicMark Inc.



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