Financial Performance - For the fiscal year ended December 31, 2024, revenue was $9,901,987, a decrease of $27,642 or 0% compared to $9,929,629 in 2023[152]. - Gross profit for the year ended December 31, 2024, was $6,615,993, maintaining a gross profit margin of 67%, unchanged from 2023[153]. - For the fiscal year ended December 31, 2024, the company recorded an operating loss of $7.7 million and a net loss of $9.0 million, with cash and cash equivalents of $3.8 million as of the same date[169]. - The company generated $0.2 million of interest income from cash balances in both 2023 and 2024, while total other expenses increased significantly from $246,138 in 2023 to $(1,483,732) in 2024, reflecting a $1,729,870 change[165][167]. - The company had working capital of $3.3 million as of December 31, 2024, down from $6.0 million in 2023[169]. - Cash used in operating activities remained constant at $4.3 million for both fiscal years 2023 and 2024[171]. Operating Expenses - Total operating expenses decreased by $7,701,405 to $14,286,724 for the year ended December 31, 2024, compared to $21,988,129 in 2023[154]. - Direct operating costs increased by $196,162 or 17% to $1,338,758, primarily due to higher salaries and related expenses[156]. - Advertising costs surged by $287,074 or 106% to $557,783, driven by continued social media and web-based advertising efforts[157]. - Research and development expenses decreased by $424,063 or 43% to $558,621, reflecting reduced product development costs[159]. Capital and Financing - The company raised approximately $14.4 million in gross proceeds from a public offering on February 18, 2025[141]. - Gross proceeds from the issuance of common stock and warrants were $4.6 million in 2024, down from $5.2 million in 2023[173][174]. - The company expects to have sufficient capital to sustain operations for the next year following a February offering that generated $14.4 million in gross proceeds[170]. Stock and Compliance - As of March 27, 2025, holders of Series D Warrants exercised a portion of such warrants for an aggregate of 33,435,000 shares of Common Stock[144]. - The company received a notification from Nasdaq regarding non-compliance with the Minimum Bid Price Requirement due to a closing bid price below $1.00 per share[143]. - The company executed a 1-for-25 reverse stock split on November 18, 2024, consolidating every 25 shares into 1 share[146]. Strategic Focus and Challenges - The company is focused on expanding into the broader Care Economy and has invested in new verticals in consumer, pro-care/healthcare, and corporate benefits lines of business[176]. - The company has faced challenges due to the transition from 3G to 4G PERS units, impacting revenue growth[176]. - Inflationary trends may increase costs in fiscal year 2025, but the company has maintained profit margins through improved supply chain management and cost reduction programs[177]. Investment in Development - The company invested $1.4 million in product and software development in 2024, compared to $1.3 million in 2023[172].
LogicMark(LGMK) - 2024 Q4 - Annual Report