Begin time: 16:30 Jan 1, 0000 4:43 PM ET
LogicMark, Inc. (Nasdaq:LGMK)
Q3 2022 Earnings Convention
November 10, 2022 at 16:30 PM ET
Shea Lynn Simmons – CEO
Mark Archer – Chief Monetary Officer
Louie Toma – CORE IR
Contributors within the convention name
operator or operator
I’d now like to show the decision over to Louis Toma of CORE IR, the corporate’s investor relations agency.
Good night, and thanks for taking part in immediately’s convention name. I am joined from the LogicMark management workforce, Chia Lynn Simmons, CEO; and Mark Archer, Chief Monetary Officer.
Throughout this name, administration will make forward-looking statements, together with statements that deal with LogicMark’s expectations of future efficiency or working outcomes and anticipated product launches. Ahead-looking statements contain dangers and different elements that might trigger precise outcomes to vary materially from these statements.
For extra data on these dangers, please consult with the danger elements described in LogicMark’s most up-to-date annual report on Type 10-Okay and subsequent periodic reviews submitted to the SEC and LogicMark’s press launch accompanying this name, notably the cautionary statements contained therein.
The content material of this name comprises time-sensitive data that’s solely correct as of immediately, November 10, 2022. Besides as required by legislation, LogicMark disclaims any obligation to publicly replace or revise any data to mirror occasions or circumstances occurring after this name.
I’m happy to show the decision over to our CEO, Shea Lynn Simmons.
Shea Lin Simmons
Thanks Louie. Welcome all and thanks for becoming a member of us. I am happy to report that we had one other robust quarter of robust income progress, up 15% within the third quarter and 28% year-to-date, with greater gross revenue and improved gross margins as we proceed to ship throughout our initiatives, product growth, operations, mental property enlargement, and gross sales and advertising.
Notably, the income will increase have been pushed by enhancements in gross sales for VA hospitals and clinics. You could do not forget that we’re an authorized GSA provider and might create further associated authorities enterprise on the federal, state, and native company stage. This serves LogicMark properly as we roll out our new services within the coming quarters and place us to extend our market share as a number one supplier of PERS options and providers within the increasing care economic system.
LogicMark continues its thrilling transformation right into a purpose-driven expertise firm centered on constructing options for the rising care economic system. Now we have launched into a journey to revitalize LogicMark with the expertise and assets we have to place the corporate for constant progress.
In July, we launched our shopper direct promoting channel and enhanced our firm’s web site as an e-commerce portal, enabling direct purchases. This new and thrilling channel permits us to attain stronger connections with our finish clients, permitting us to be extra concerned within the gross sales course of. This drives our means to promote value-added merchandise and equipment, which has a optimistic influence on our income progress and margin.
At present, the web site has a number of merchandise on the market, together with Guardian Alert and Freedom Alert fashions, in addition to many associated equipment. As new services are developed, we are going to leverage these capabilities to diversify our gross sales combine and income streams.
We additionally proceed to spend money on our product and advertising infrastructure, including two key workforce members; John Federico joins us as Senior Product Supervisor; We’re joined by Garrett Hunter as Senior Vice President of Advertising. Our R&D and product growth groups work exhausting. We consider the outcomes they may obtain will likely be transformative as we develop our foothold and increase our market share.
We’re very excited to launch our extremely anticipated new merchandise, beginning with our first software program utility, AsterX+1 subsequent month. AsterX+1 is a brand new cell app and the primary in LogicMark’s AsterX ecosystem for sensible, linked and personalised emergency response methods, PERS. Key options embody a one-button name to emergency providers, your family and friends, or each, a quantity that not solely protects your account however stops your name for help from being canceled by anybody however you. A scheduling system that syncs along with your on-line calendar that robotically alerts your emergency contact if you have not checked in after the scheduled time.
This characteristic is exclusive to AsterX+1. It makes it sooner and simpler to arrange scheduled check-ins and computerized emergency contacts. The power to sync a person’s calendar with the app is an instance of the corporate’s customer-centric design method to expertise, one thing that has traditionally been missing within the PERS market.
Our mission at LogicMark is to guard the private expertise of residing life to the fullest. We plan to observe up with the discharge of AsterX+1 with our first WiFi enabled product, Freedom Alert+ shortly after one month. Now we have additionally made nice strides in increasing our mental property, and extra patents for our improvements and options.
We filed two ultimate patent purposes centered on varied makes use of of units within the third quarter, together with wearables reminiscent of PERS, which cowl many well being and wellness-related features. As well as, we are going to submit a ultimate utility from the April 2022 provisional utility that covers the usage of sensors and units within the broader context of its fourth-quarter deployment.
We submitted a provisional request on September 30 that features varied applied sciences that may guarantee the standard and supply of healthcare methods. We are going to current one other interim report in November 2022 that features varied machine studying and AI applied sciences and methods to help wellness in multilateral interactions.
We’re steadfast in our dedication to delivering on the guarantees we made to our shareholders to rework LogicMark by improved monetary efficiency, operational excellence and what we consider are market-leading options that diversify our income technology and proceed to boost shareholder worth.
I have been heartened by the progress we have made since we joined the corporate in June of final yr, and I am resolute in my emotional dedication to placing LogicMark able of success. I’m extra assured that we’ll proceed to advance in the direction of our targets as we construct an extended observe report of success.
I will cease now and ask Mark Archer to debate our third quarter monetary outcomes. Then I’ll come again to make some closing remarks.
Thanks Xia Lin. Beneath are the monetary outcomes for the third quarter ending September 30, 2022. Third quarter income was 2.8 million, up 15% over the identical interval final yr. Income will increase have been pushed by enhancements in gross sales for VA hospitals and clinics. Gross revenue was 1.7 million for the three months ending September 30, 2022, up 51% over the identical interval final yr. Gross margin elevated from 47% to 62% for the quarter ending September 30, 2022 in comparison with the identical interval final yr.
Third-quarter direct working prices have been 346,000, up 51% over the identical interval final yr, pushed by greater gross sales and the beginning of internet advertising to help the launch of the corporate’s new direct-to-consumer e-commerce web site in July 2022. Promoting bills within the third quarter rose to 333,000, up from 75,000 from the identical interval within the earlier yr, because of the addition of recent staff and better gross sales commissions paid on elevated gross sales.
The elevated advertising prices for the third quarter are because of the addition of recent staff in addition to investor relations, public relations and social media help organizations. R&D spending elevated to 375,000 within the third quarter of 2022 from 137,000 in the identical interval final yr, as a direct results of all of our new product growth actions.
Normal and administrative bills amounted to $2.6 million within the third quarter of 2022, up from $1 million in the identical interval final yr. The rise in G&A prices is because of greater insurance coverage prices, greater advisor charges, elevated spending in accounting and finance, and better prices associated to being a public firm, particularly prices related to the company’s RFP course of within the August annual yr simply ended. Assembly.
The online loss relevant to frequent shareholders within the third quarter was $2.2 million, or $0.23 per share, in comparison with $724,000, or $0.12 per share, in the identical interval final yr. We closed the quarter on September thirtieth with $9.3 million in money within the financial institution versus $12 million on the finish of final yr.
I’ll now name Chia-Lin again for some ultimate suggestions.
Shea Lin Simmons
Thanks Mark. As we wrap up the decision, I might like to depart you with a number of key ideas. As I discussed in our final name, we’re at the moment within the midst of a silver tsunami, with 10,000 child boomers age 65 per day, and the demand for expertise that underpins our rising care economic system continues to extend quickly.
The anticipated compound annual progress fee of the overall getting older market is 13%. Within the whole care economic system, that is about 24 billion. Analysis has assumed that 90% of individuals over the age of fifty need to age in the best place, paving the best way for robust demand for years to return. We work exhausting to create options that allow family members to stay safely of their houses, whereas making certain they’re correctly monitored and appropriately cared for.
We, at LogicMark, are extraordinarily enthusiastic about these alternatives and proceed to work tirelessly to ship new modern options that deal with this evolving care economic system. We stay up for preserving you up to date as we progress with these initiatives.
Right now, I’ll open the decision for questions. operator or operator?
Query and reply session
operator or operator
Thanks. [Operator Instructions].
operator or operator
I’ve no questions within the queue. I will name Chia-Lin Simmons again for closing remarks.
Shea Lin Simmons
I need to thank all of you who took half in our name immediately. I stay up for persevering with to supply an replace on our progress in a well timed method. Thanks a lot.
operator or operator
This concludes immediately’s convention name. Thanks in your participation. Now you can disconnect.
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