LogicMark(LGMK) - 2025 Q2 - Quarterly Results

Executive Summary LogicMark achieved strong Q2 2025 financial growth, improved liquidity, and strategic market and product advancements Q2 2025 Performance Highlights LogicMark reported strong Q2 2025 results, highlighted by significant revenue and gross profit growth, improved gross margin, and a strengthened liquidity position due to a successful capital raise, alongside OTC market transition and sales organization expansion - Revenues increased by 22% in Q2 2025 - Gross Profit increased by 24% in Q2 2025 - Gross Margin improved by 99 bp to 67.5% in Q2 2025 | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenues | $2.9 million | - | +22% | | Gross Profit | $1.9 million | - | +24% | | Gross Margin | 67.5% | - | +99 bp | - Improved liquidity with cash and investments of $13.0 million, with no long-term debt as of June 30, 2025, following a successful capital raise earlier in the year[5] - Completed the transition of the Company's common stock to the OTC market during the second quarter, providing a less restrictive trading platform[5] - Expanded the sales organization with key leadership hires to accelerate B2B growth, revitalize the reseller program, and strengthen go-to-market capabilities[5] CEO's Strategic Commentary CEO Chia-Lin Simmons highlighted accelerated revenue growth, R&D in AI-enabled fall detection, scaling go-to-market, and expanding into institutional channels, leveraging a strengthened cash position for disciplined execution and value creation - R&D team diligently enhancing existing products, creating new hardware and software, and introducing state-of-the-art features such as AI-enabled fall detection[4] - Scaling go-to-market capabilities, including appointing a new Senior Vice President of Sales and revitalizing the reseller program for stronger partner support and broader customer reach[6] - Positioned to expand into institutional and other government channels, including opportunities opened through the GSA contract[6] - Strengthened cash position and transition to another stock exchange allows focus on disciplined execution and serving customers, driving meaningful, lasting value[7] Detailed Financial Results LogicMark's Q2 2025 demonstrated strong revenue and gross profit growth, improved gross margin, and a substantial increase in assets and equity following a capital raise, despite increased operating expenses Second Quarter 2025 Operating Results LogicMark's Q2 2025 revenue increased by 22% and gross profit by 24% with improved gross margin, while operating expenses rose 12%, net loss remained unchanged, and net loss per share significantly improved due to increased shares, following a $14.4 million public offering - Revenue for Q2 2025 was $2.9 million, up 22% compared to $2.3 million in Q2 2024, primarily driven by higher sales of Freedom Alert Mini units (launched in 2024) and upgraded Guardian Alert 911 Plus[8] - Gross margin increased to 67.5% for Q2 2025, a 99 bps increase from 66.6% in the prior-year period, driven by a shift in sales mix to higher margin products[9] - Total operating expenses were $4.1 million for Q2 2025, a 12% increase from $3.6 million in Q2 2024, driven by costs related to recruiting efforts for the sales team, as well as higher consulting and legal fees[10] | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------- | :----------- | :----------- | :---------------------- | | Net Loss Attributable to Common Stockholders | $(2.1) million | $(2.1) million | Unchanged | | Net Loss Per Share (Fully Diluted) | $0.00 | $(24.12) | Significant improvement | - The improvement in net loss per share is attributable to the higher number of weighted average common shares outstanding in the current quarter[11] - Completed a registered public offering in Q1 2025, resulting in gross proceeds of $14.4 million[12] - Cash and investments totaled $13.0 million with no long-term debt at the end of Q2 2025[13] Condensed Balance Sheets As of June 30, 2025, LogicMark's total assets significantly increased to $23.45 million, driven by current assets, investments, and cash, while total liabilities modestly rose and stockholders' equity more than doubled due to a capital raise | Metric | June 30, 2025 | December 31, 2024 | Change | | :--------------------------------- | :-------------- | :---------------- | :------------- | | Cash and cash equivalents | $5,013,959 | $3,806,915 | +$1,207,044 | | Investments | $7,965,965 | - | +$7,965,965 | | Total Current Assets | $14,492,939 | $5,336,905 | +$9,156,034 | | Total Assets | $23,451,950 | $14,221,337 | +$9,230,613 | | Total Liabilities | $2,248,555 | $2,028,832 | +$219,723 | | Total Stockholders' Equity | $19,396,095 | $10,385,205 | +$9,010,890 | Condensed Statement of Operations For Q2 2025, LogicMark reported revenues of $2.85 million, gross profit of $1.93 million, and an operating loss of $2.13 million, with net loss per share significantly improving to $0.00 due to increased shares, while six-month revenues rose 10.1% and gross profit 7.5% Three Months Ended June 30 | Metric | 2025 | 2024 | Change (YoY) | | :------------------------------------- | :----------- | :----------- | :----------- | | Revenues | $2,853,210 | $2,336,268 | +22.1% | | Costs of goods sold | $925,910 | $781,318 | +18.5% | | Gross Profit | $1,927,300 | $1,554,950 | +23.9% | | Total Operating Expenses | $4,059,714 | $3,625,832 | +12.0% | | Operating Loss | $(2,132,414) | $(2,070,882) | -3.0% | | Net Loss Attributable to Common Stockholders | $(2,127,672) | $(2,113,857) | -0.6% | | Net Loss Attributable to Common Stockholders Per Share - Basic and Diluted | $(0.00) | $(24.12) | Significant Improvement | | Weighted Average Number of Common Shares Outstanding - Basic and Diluted | 549,767,010 | 87,630 | Substantial Increase | Six Months Ended June 30 | Metric | 2025 | 2024 | Change (YoY) | | :------------------------------------- | :----------- | :----------- | :----------- | | Revenues | $5,445,035 | $4,947,351 | +10.1% | | Costs of goods sold | $1,872,507 | $1,625,183 | +15.2% | | Gross Profit | $3,572,528 | $3,322,168 | +7.5% | | Total Operating Expenses | $8,066,276 | $7,198,745 | +12.1% | | Operating Loss | $(4,493,748) | $(3,876,577) | -15.9% | | Net Loss Attributable to Common Stockholders | $(4,393,658) | $(3,933,400) | -11.7% | | Net Loss Attributable to Common Stockholders Per Share - Basic and Diluted | $(0.02) | $(45.30) | Significant Improvement | | Weighted Average Number of Common Shares Outstanding - Basic and Diluted | 283,971,707 | 86,824 | Substantial Increase | Company Information & Outlook LogicMark provides personal safety and health communication solutions leveraging IoT and AI, with an upcoming investor call to discuss Q2 2025 results, and includes a cautionary statement regarding forward-looking information About LogicMark LogicMark, Inc. provides personal safety, PERS, health communications devices, and a Connected Care Platform, leveraging IoT, AI, and machine learning for the care economy, distributing through the VA, dealers, direct-to-consumer, and GSA contract channels - Mission: To let people of all ages lead a life with dignity, independence, and the joy of possibility[15] - Products and Services: Personal safety, personal emergency response systems (PERS), software apps, health communications devices, services, and technologies to create a Connected Care Platform[15] - Technology Focus: Team of leading technologists with deep understanding of IoT, AI, and machine learning, dedicated to building a 'Care Village' with proprietary technology[15] - Distribution Channels: Sold through the United States Veterans Health Administration, dealers, distributors, and direct-to-consumer, also holds a contract by the U.S. General Services Administration (GSA) for distribution to federal, state, and local governments[15] Investor Call and Filings LogicMark will host an investor call and webcast on August 12, 2025, to discuss Q2 2025 financial results, with details and materials available on the investor relations website - A live investor call and webcast will be hosted by CEO Chia-Lin Simmons and CFO Mark Archer on Tuesday, August 12, 2025, at 1:30 PM (PDT) / 4:30 PM (EDT) to review Q2 2025 financial results[14] - Webcast and registration links are provided for investors and analysts to participate[14] - The associated press release, SEC filings, and webcast replay will be accessible on the investor relations website[14] Cautionary Statement Regarding Forward-Looking Statements This section advises that the press release contains forward-looking statements subject to various risks and uncertainties, including proprietary technology, financing, business plans, competition, regulatory clearances, and growth management, with actual results potentially differing materially and no obligation to update - The press release contains forward-looking statements reflecting management's current expectations, subject to certain risks and uncertainties[16] - Risks and uncertainties include the ability to establish and maintain proprietary technology, need and availability of financing, ability to implement long-range business plans, ability to enter marketing/distribution agreements, impact of competition, regulatory clearances, and management of growth[16] - Actual results could differ materially from anticipated outcomes, and the company undertakes no obligation to update or revise any forward-looking statements[16]