LogicMark(US:LGMK)2019-04-04 23:42Financial Data and Key Metrics Changes - Revenues from continuing operations for the year ended December 31, 2018, were approximately $17.1 million, up from $16 million in 2017, representing an increase of just under 7% [11] - Gross profit margin for 2018 was approximately 72%, compared to 68% in 2017, primarily due to increased sales volume and a favorable shift in product sales mix [12] - Operating income from continuing operations for 2018 was just under $600,000, compared to an operating loss of $2.2 million in 2017 [13] - Net loss from continuing operations for 2018 was approximately $1.3 million, significantly improved from a net loss of $8.5 million in 2017 [13] - Operating cash flow for 2018 was a use of cash of about $50,000, indicating a positive outlook for future cash generation [15] Business Line Data and Key Metrics Changes - The Payments Division expanded its platform and capabilities, supporting Garmin Pay on 15 devices and in 300 banks across 44 countries [18] - LogicMark's revenue for 2018 increased by 6.7%, with a gross margin of 73%, reflecting strong performance in government channels [25] - The company launched retail partnerships with Walmart.com and is preparing for a launch with Best Buy, aiming to enhance direct-to-consumer sales [25] Market Data and Key Metrics Changes - The company is focusing on deeper penetration into government channels, particularly the VA, and expanding into other federal agencies [36] - The retail channel is expected to contribute positively to revenue growth, with ongoing digital advertising efforts to drive sales [38] Company Strategy and Development Direction - The company aims to continue building on its foundation while developing new products for future growth [30] - The spin-off of Fit Pay is a key strategic move, with expectations for increased revenue and market presence in 2019 and beyond [33][34] - The company is targeting key verticals such as hospitality and real estate for growth opportunities [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in both healthcare and fintech sectors, with exciting new products in the pipeline [30] - The company is focused on reducing costs while increasing revenue, indicating a strong outlook for 2019 [30] Other Important Information - The company is in the process of refinancing its current term loan to facilitate the spin-off [6][7] - The anticipated filing of the registration statement with the SEC for the spin-off is expected soon [7] Q&A Session Summary Question: What will the spin-off look like in 2019 and 2020? - The spin-off will consist of Fit Pay and financial assets from Nxt-ID, with expectations for continued development and revenue growth in 2019, and multiplier effects in 2020 [33] Question: Are there more opportunities in government channels for LogicMark? - There are additional opportunities in other government agencies, and the company is confident in driving incremental revenue through these channels [36] Question: When can we expect Q1 results? - Q1 results are expected around mid-May, following the filing deadline [40] Question: What is the growth rate for LogicMark as a standalone business? - The traditional VA business is expected to grow at 7% to 10%, with new channels contributing significantly in the second half of the year [41] Question: How is the Walmart relationship performing? - The company is in a learning phase with Walmart, gathering data and feedback to optimize their approach [42] Question: What are the expectations for the Flip device? - The Flip is seen as a key product for entering the crypto market and establishing technology components for future partnerships [45] Question: What is the timeline for the SwatchPAY rollout? - Specific expansion plans for SwatchPAY cannot be shared, but the model is being deployed through their retail channels [46] Question: How to minimize the time between the record date and trading of the spin-off? - The company is focused on minimizing this time, but specific dates are difficult to provide due to various moving parts [48][50]