Revenue Performance - For the three months ended September 30, 2024, revenue increased by 14% to $2,705,461 compared to $2,367,227 for the same period in 2023[102] - For the nine months ended September 30, 2024, revenue increased by 2% to $7,652,813 compared to $7,503,940 for the same period in 2023[102] Profit and Operating Costs - Gross profit for the three months ended September 30, 2024, was $1,801,627, maintaining a profit margin of 67% consistent with the same period in 2023[102] - Direct operating costs for the three months ended September 30, 2024, increased by $92,298 to $359,044 compared to $266,746 for the same period in 2023[104] - Total operating expenses for the three months ended September 30, 2024, were $3,401,179, compared to $3,376,860 for the same period in 2023[104] Advertising and Marketing Expenses - The company experienced an increase in advertising costs to $114,795 for the three months ended September 30, 2024, compared to $57,195 for the same period in 2023[104] - Advertising costs increased by $0.1 million and $0.2 million for the three and nine months ended September 30, 2024, respectively, driven by hardware sales through Amazon.com and social media advertising expansion[106] - Selling and marketing expenses decreased by $37.3 thousand for the three months ended September 30, 2024, but increased by $0.2 million for the nine months ended September 30, 2024, primarily due to consultant expenses and recruitment[107] Research and Development Expenses - Research and development expenses for the three months ended September 30, 2024, were $96,650, up from $242,697 for the same period in 2023[104] - Research and development expenses decreased by $0.1 million and $0.4 million for the three and nine months ended September 30, 2024, respectively, due to increased capitalization of salaries and reduced product development costs[108] General and Administrative Costs - General and administrative costs decreased by $0.2 million and $1.1 million for the three and nine months ended September 30, 2024, respectively, driven by lower recruiting and consulting costs[109] Other Income and Losses - The company recorded total other income of $80,747 for the three months ended September 30, 2024, down from $335,113 in the same period of 2023[110] - The company generated an operating loss of $5.5 million and a net loss of $5.3 million for the nine months ended September 30, 2024, with cash and cash equivalents of $5.6 million as of the same date[112] Cash Flow and Capital Management - Net cash used in operating activities was $3.3 million for the nine months ended September 30, 2024, compared to $3.6 million for the same period in 2023[115] - The company completed a public offering with gross proceeds of $4.5 million during the nine months ended September 30, 2024, down from $5.2 million in the same period of 2023[116] - The company believes it has sufficient capital to sustain operations for the next twelve months, with potential for raising additional funds through equity or debt offerings[113] - The company has not engaged in off-balance sheet arrangements or undisclosed borrowings, minimizing exposure to financing and liquidity risks[118] Share Issuance and Rights Agreement - The company issued 1,000 shares of Series H Convertible Non-Voting Preferred Stock, convertible at an initial price of $0.4654, as part of settlement agreements on November 14, 2024[100] - A rights agreement was established on November 1, 2024, to protect against potential control by Winvest Investment Fund Management Corp., which owns approximately 67% of the company's common stock[96] - The company authorized 1,000,000 shares of Series G Non-Convertible Voting Preferred Stock, which entitles holders to 100 votes per share[98]
LogicMark(LGMK) - 2024 Q3 - Quarterly Report