LogicMark(LGMK) - 2024 Q1 - Quarterly Results

Management Commentary and Business Highlights Management commentary highlights strong Q4 2023 momentum, new product launches, and strategic CPaaS expansion with AI integration - The company concluded 2023 with strong momentum, marked by significant year-over-year growth in Q4 revenue and gross profit[2] - Two new products, the Freedom Alert Plus (Wi-Fi enabled) and 4G Freedom Alert Mini, were launched in Q4, offering 24/7 monitoring and fall detection[3] - In early 2024, LogicMark launched 'Aster,' a subscription-based software application available on Apple and Google Play stores, for quick emergency access via a Bluetooth button[4] - The company's strategy focuses on expanding its cellular product line and CPaaS features through integration with third-party devices and leveraging AI and machine learning[5] Financial Performance LogicMark's financial performance shows strong Q4 growth, a full-year revenue decline, and a net loss impacted by goodwill impairment Fourth Quarter 2023 Financial Summary Q4 2023 revenue increased 13% to $2.4 million, gross profit rose 21% to $1.6 million, with net loss impacted by a significant goodwill impairment Q4 2023 Key Financial Metrics (vs. Q4 2022) | Metric | Q4 2023 ($) | Q4 2022 ($) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2.4 million | 2.1 million | +13% | | Gross Profit | 1.6 million | 1.3 million | +21% | | Gross Margin | 66.0% | 61.5% | +450 bps | - Excluding a $7.8 million goodwill impairment charge, total operating expenses decreased 14% to $3.2 million from $3.7 million in Q4 2022[11] - Net loss per share was $(5.74), including non-cash charges; excluding impairment and deemed dividend, net loss was $(1.73) per share compared to $(5.23) per share in Q4 2022[11] Full Year 2023 Financial Summary Full year 2023 revenue decreased 17% to $9.9 million due to prior year one-time sales, while gross margin improved to 67.1% Full Year 2023 Key Financial Metrics (vs. Full Year 2022) | Metric | FY 2023 ($) | FY 2022 ($) | Change | | :--- | :--- | :--- | :--- | | Revenue | 9.9 million | 11.9 million | -17% | | Gross Profit | 6.7 million | 7.2 million | -7% | | Gross Margin | 67.1% | 60.7% | +640 bps | - Cash and cash equivalents totaled $6.4 million as of December 31, 2023, a decrease from $7.0 million at the end of 2022[8] - Net loss for 2023 was $(11.66) per share; excluding impairment and deemed dividend, net loss was $(4.03) per share, an improvement from $(15.15) per share in the prior year[11] Financial Statements Financial statements show a contracted balance sheet and widened net loss for 2023, primarily due to a significant goodwill impairment charge Balance Sheet As of December 31, 2023, total assets decreased to $17.0 million from $25.6 million, primarily due to a goodwill reduction, with liabilities also decreasing Selected Balance Sheet Data (as of Dec 31) | Account | 2023 ($) | 2022 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 6.4 million | 7.0 million | | Total Current Assets | 8.0 million | 9.5 million | | Goodwill | 3.1 million | 11.0 million | | Total Assets | 17.0 million | 25.6 million | | Total Liabilities | 2.1 million | 2.9 million | | Total Stockholders' Equity | 13.1 million | 21.0 million | Statement of Operations Full year 2023 revenues were $9.9 million with a net loss of $14.6 million, primarily driven by a $7.8 million goodwill impairment charge Full Year Statement of Operations Summary | Metric | For the Year Ended Dec 31, 2023 ($) | For the Year Ended Dec 31, 2022 ($) | | :--- | :--- | :--- | | Revenues | 9,929,629 | 11,916,482 | | Gross Profit | 6,659,662 | 7,230,843 | | Goodwill impairment | 7,815,000 | 0 | | Operating Loss | (15,328,467) | (6,906,492) | | Net Loss | (14,550,609) | (6,924,965) | | Net Loss Per Share | (11.66) | (15.15) | - A $7,815,000 goodwill impairment charge was the primary driver of the increased operating loss and net loss in 2023 compared to 2022[18] Investor Call and SEC Filings LogicMark scheduled an investor call and webcast for April 18, 2024, to discuss financial results, with details on the investor relations website - CEO Chia-Lin Simmons and CFO Mark Archer will host a live investor call and webcast to review the financial results[9] - The event is scheduled for Thursday, April 18, 2024, at 4:30 PM EDT[9] - Investors can register for the conference call or listen to the live webcast via links on the LogicMark Investor Relations website[9][10]