LogicMark(US:LGMK)2019-05-15 20:59Financial Performance - Revenue for the three months ended March 31, 2019, was $4,181,710, a decrease of 3.6% from $4,336,515 in the same period of 2018[97] - Gross profit for the three months ended March 31, 2019, was $3,162,076, an increase of 1.1% from $3,129,168 in the same period of 2018[98] - Operating profit for the three months ended March 31, 2019, was $507,651, compared to an operating profit of $194,483 for the same period in 2018, reflecting a significant improvement[101] - Net loss from continuing operations for the three months ended March 31, 2019, was $292,973, a reduction from a net loss of $676,855 in the same period of 2018[102] - As of March 31, 2019, the Company generated operating income of $507,651 but incurred a net loss of $292,973 from continuing operations[108] Cash and Equity Position - Cash provided by operating activities for the three months ended March 31, 2019, totaled $765,858, compared to a net cash used of $65,450 in the same period of 2018[105] - As of March 31, 2019, the company had cash of $1,227,803 and stockholders' equity of $14,827,899, with a working capital deficiency of $1,736,869[104] - The Company had a working capital deficiency of $1,736,869 and stockholders' equity of $14,827,899 as of March 31, 2019[108] - Cash position as of March 31, 2019, was $1,227,803[109] - The Company anticipates sufficient capital to sustain operations over the next twelve months, but may need to raise additional funds through equity offerings or debt financings[110] - There is no assurance that cash raised after March 31, 2019, will be sufficient to execute the business plan or meet obligations[111] Business Strategy and Market Trends - Fit Pay's technology enables contactless payment capabilities and has expanded its network to over 280 issuing banks in 34 countries, significantly increasing revenue opportunities[90] - LogicMark's healthcare initiatives are driven by trends such as increased connectivity and the growth of TeleHealth, targeting an aging population and rising healthcare costs[85] - The company plans to expand LogicMark's business into other healthcare verticals and retail channels to meet the growing demand for connected healthcare solutions[85] - Fit Pay's initial consumer product, Flip™, allows Bitcoin holders to make contactless payments, representing a unique offering in an emerging market segment[92] Risk Management - Inflation has not significantly affected the business in the past three years, and the Company expects to maintain profit margins through efficiency improvements and cost reduction programs[112] - The Company does not have any off-balance sheet arrangements or undisclosed borrowings, minimizing exposure to financing and liquidity risks[113] - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[116]