LogicMark (LGMK) 18 Apr 242023 Q4 Earnings call transcript

Good day, and welcome to LogicMark's Fourth Quarter and Full Year 2023 Financial Results and Corporate Update Conference Call. Today's speakers from LogicMark are Chia-Lin Simmons, Chief Executive Officer; and Mark Archer, Chief Financial Officer.

During this call, management will be making forward-looking statements including statements that address LogicMark's expectations for future performance or operational results and anticipated product launches.

Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

filed these LogicMark's refer Report release most XX-K subsequent about factors the on that information as it. and in SEC particularly described recently reports statements accompanies more this risks, LogicMark's the to please risk Form well call, For as the cautionary press in with filed Annual

LogicMark to XXXX. that as of only update content this Except required any reflect The as accurate information of obligation this call that events is contains disclaims by revise or or law, April publicly occurs time-sensitive XX, any call. information to today, after circumstances

At this to over time, conference would I hand the Simmons. to Chia-Lin like

You may begin.

of and Thank the growth pleased everyone. revenue report XX% XXXX, of good XX% very and quarter last in period I'm to we afternoon, compared you, gross profit a achieved that Towanda, to year. increase same fourth during the

was to achieved years, Our for new annual gross property. our verticals margin products, XXXX objectives entering operational key we compared the distribution and new as new such gross channels, highest intellectual establishing strengthening launching X previous have -- and the successfully

The period of by for arrival finishing year took we time forward impact our was between step XXXX with characterized of the and with company, progress, of the infrastructure. XXXX of COVID-XX, management the In XXXX, a the new strong our rebuilding transition corporate and our a momentum. significant

team the LogicMark congratulate like for efforts. I So to entire their would

learning home tracking, sensors, artificial XX/X intelligence monitoring cloud with In technologies, as of This AI, and use Caring smart communications, as devices. machine includes advanced and XXXX, Platform a Service we were ecosystem. two-way or or fall CPaaS on smartphones laser-focused U.S.-based our GPS advancing such integration detection ML, or the

of Internet devices, All a of Things interconnected collective IoT technologies create of and network. or combined network truly to these

being lives understand we LogicMark, our help that technology. the extended are through At of

property wellness care, a development experience addressing as enhanced of our products as commonly or through as We well combination our called. AI and it's of the our safety lived IP quality the intellectual through systems are of

development patents. research is and with library of in and yielding products our both been new investment our making The our we pipeline that great technology in results, have

You see devices oriented ages. all as as geared fall software an agent of services providing AI-enabled people proprietary products from that detection safety well towards and aimed towards our for population

processing These with integrating and other wellness to actively situations. passively AI, adverse focused our allow with remediate be monitors and I behavior includes published. patent in LogicMark interwoven final our to much-needed been disclosed mid-XXXX, XX us recent provide have systems, and cloud-based patents our have ML patents behavior-based game provide patents status, ML and for theory information care health, systems at that passive environment Since combination we X IP filed This edge patents moved filings, at sensor-enabled and AI-focused In AI X in used on X AI. in early monitoring. accurate which last safety month active we provisional could the and products our arrived filed employs to that C, and industry our

opportunity Our to to and us seamlessly introduce allowing new recurring framework new and technology revenue provides products, and third parties. partner model other for supports existing product the features license a to our

AI-enabled model. years we a to Platform services Caring ago. is Plus, product introduced our and the it's our strides the developed the or company It X since also great harbor be by Freedom marketplace product a WiFi-enabled first Alert product offerings. to newly with by Service released as launched first XXXX the into be made We've using our XXXX, In cloud-based

a Play that automatically or App downloaded free with from features: Care Google or patented emergency Freedom mobile services, Apple for be fall Village device the offering caregivers software Store Alert advanced technology proprietary the Store. app can Plus is detection Android, following or iOS an which notifies

for X-way help. monitoring a detection battery available software via reduced voice made support, that calling dexterity, emergency someone updates, with of algorithm XX/X further communication the giving of Caregiver over-the-air those with we to caretakers connection life peace enhance and the device provide is U.S.-based and screen monitoring X-inch service, mind level fall always and and to

monitoring. patented also we many with form factor Features Freedom devices. detection include Companion during the emergency, or XXXX, on In X-way app software fall Mini. Caregiver pairs new Android our GPS Alert communication This technology, available iOS released smaller

monitoring assistance can from push request emergency button, devices the of XG service. U.S.-based our using XX/X With service a users cellular LTE

Additionally, If mind. a the of location providing alert geofencing. caregivers this create beyond to as with a receive functionality it boundary loved specific of an virtual an known promptly, layer area, a peace has security moves them designated extra and one around

Geofencing it helps is prone forms safety. particularly important for wandering who to as individuals their ensure or with of are Alzheimer's other dementia

launch and that ages, independently them provide connected and to to Store we the standalone excited expanded on market operates ones. recently, first of subscription-based also done the everyone. company's loved contains Google reach security It's any hardware. share to new our so many software of product that application both the This software and Play app a peace safety to of to new all of It's their mind allowing providing with stores. by App users aperture Apple We've features available I'm to remain Aster.

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and them and you notified call feature allows with share unique This to mobile the calendar that connect be specific A of Follow events event. phone family end Me friends. to allows at your

device purchased or button a in access run from or attach and paired park. pocket purse as a check emergency A your to LogicMark keyring or the Bluetooth with after place in be date If can Aster. you back say, backpack a or don't also in a let's quick accessory

We understand are do needs. your need it running or you and how meet phone battery Paired mode to scenarios, the need solutions when the button, the app car, creating use in with products active those launch to to you the app which to remember during not the have drain of your emergencies can most. Bluetooth walk you before people

backpack phone of is as So even pocket. can push as you your your your that if range the button, in just within phone or is button long

and At that time, your who XX/X last U.S.-based service. friends, also delivered will be notification ones services. GPS well loved your monitoring our sent as Your to as to will the family emergency be following location are you to

are a solution of We've our service is includes how releases technology capabilities device, that traction Our channels. and business affirms our far our examples our model provider. mentioned recent evolving, IoT expand CPaaS thus as ability plan excellent our and previously distribution to expanding

build and As we having grow product that help out to know multiple us and will offerings, we continue our channels services revenue awareness our streams. brand

and Amazon our category. of store continue into line PERS we our orders this product the can direct-to-consumer expand where website, trend, To to for customers e-commerce on accessories. related store Approximately on capitalize into and customer are the now on to LogicMark we estimated PERS fall our devices accept on XX%

our help We customer acquisition to expect boost increase reduce costs sales, these and margins. stores

focused the we're BXB opportunity. Another is channel on health

power exploring continued can customers are envision living such We growing hospitals, managed and a having and care leads organizations buying Partners health product affiliates on partnerships companies, organizations, during focus provide and the provide independent as significant can channel XXXX. replacement insurance We facilities, dealers. with new and on research collaboration for development.

are Administration. years past relationship, Day, of to our providing our long-standing celebrated that our devices. XX veterans continue we On with with the government the side, we Veterans products safeguard Veterans proud life-saving value This relationship working

Administration, U.S. or expand a opportunity and have have other where local business GSA, agencies. an contract our with to We state we the federal Services into government General

of lack and market to as remain We challenges World of few, These the name life United regarding Economy there the National Care ample Trends. quality insights reported a and Institute cost Organization of room of provide increasing increase the of continued based us believe to on such about the and our ability needs active remind share elderly. aging just caregivers Health, The population. the is leading Nations, Health the an of meeting independent, advocates the to

within Personal in or outdoor poll due crime. Gallup figure only now their in care night another economy mile states a is that of to avoid of highest Americans activities are A safety fear all adults X is This are of personal decades. of area the XX% walk social home. which at alone participating. of afraid to XX% we

is solution feel solutions for direction. need growing secure innovative the that to seen step and more people Aster our help in You've a

have broad to or nursing and our spectrum, care technology the and conditions demanding agencies people set as homes students veterans. in this we disabilities, wish military health such value is who diverse comfort a our which needs health government additional the meet marketplace an to excellent age their of The Seniors is and chronic on of own with in across the hospitals homes, of providers opportunity and bus constituents safety. customers solutions, the the go, in including

This enable to us they and solutions our are third-party by cell-based to variety connected our on product no to and We devices monitored allowing our expand where with home at matter services. CPaaS. also business We will or to go. of customers the us integrate using additional recurring, and of potential product more include whether serve offering to support a about safety services excited grow services, the are, intend line

low monthly While growth which capture recurring security. of devices. we fixed that continued new ability product unmonitored economic of the our and/or require safety those potentially deserve We and age or grace include life-saving everyone, with a to business, our products, excited live PERS to through on plans circumstance and believe and the income are long is also and business charge expand regardless for services with

broader includes As and results. I'd our financial our company to summarize IoT net also you offerings historically like a point, the to solutions the this as provider. At this enterprise operated. an Mark needs vision to has capabilities relative We directly customers' and over where can see, to expand casting call meet turn

Chia-Lin. Thank you,

meets care with of results a that to continued Our build product a a broader model of XXXX portfolio technology segment economy. the durable the team's reflect business work

XX% to fourth our XX% million, was financial sales X% to happy sell same the increase million As X% increase were revenues report The year. $X.X XX% and last the and results, profit in fourth unit of in the for was driven the year-over-year period profit year. price. Gross up from a gross year. to quarter million, $X.X XXXX quarter increase average both the quarter I'm a margin the was XX% bps in higher $X.X a to also XXXX sales due margin from improvement. last that's by Gross XXX Higher in period quarter increase last and fourth of same over improved XXXX same increase the

continue both which outbound $X.X of We make to improvements goodwill million non-cash our operating the quarter. shipping costs. expenses charge and Total included were in fourth a $XX impairment million, in inbound

impairment, compared million XX% the expenses period $X.X a the to decrease. million year, in were Excluding last $X.X same

to G&A, were quarter, Now at redomestication and was of to realized an the professional came million XX%. just and of we this those most Delaware into $X.X if $X.X Cost our tax recruiting million from franchise payments by with wages, look expenses reductions salary from that fees, current elimination during lower operating $XXX,XXX and look Nevada. in expenses G&A improvement

outstanding, In the back impact the impairment a in the X.X warrant per the dividend X.X quarter. that of XXXX. the due share non-cash share charges, was inducement November on XXXX, million dividend recorded for fourth charge prior deemed and of compares was completed $X.XX. $XXX,XXX excluding the to Net recent this per non-cash weighted for and in fourth net million the transaction shares quarter $X.XX loss the shares of quarter of was Adding quarter of X with loss $X.XX deemed the on net weighted loss outstanding a

prior XX% full by decrease revenues could Now a by to unit I $X.X the a Annual turn price. partially was year's XX% to decrease compared driven $XX.X XXXX. were million. in average This the sales, X% if year increase lower million, sale offset

in been have replacement we revenues calls, made XG units of October included that national the by that with from PERS Those were XG customers our replacement onetime obsolete the previous on XXXX. mobile discussed stopped XXXX sun setting we've carriers. by against comping support of sales sales As

XXX XX.X% million, from bps XXXX, the increase the the profit for Gross Gross million in improvement $X.X of year year a the measures year. improved lower full for to year prior was down margin XXXX. helped Margin from year-over-year $X.X revenues. impact offset the

improvement outbound quarter, case the from the costs. was fourth inbound As in lower of shipping and resulted the much

million the ended relatively Total $XX.X quarter's excluding with the at charge. unchanged were year and operating expenses recent $XX.X year to million that's impairment for the XXXX in compared goodwill

Total X% impact G&A $XX.X the loss million, for XXXX also of from prior deemed year up XXXX. $X.XX, back, year for relatively net XXXX full share, unchanged charges non-cash the dividend. X was the $XX.XX and year's was expenses at loss the the loss were of with charge compared excluding $XX.XX. net net Adding The the those impairment per just for

December and million equivalents at compared of cash million of the the $X.X As XX, with cash of had XXXX. XXXX, company end $X

call I'd this received stock, questions. the XXXX, gross issuing warrants the of to for stock and open warrants. ended time, the common At year of common the company exercise During from proceeds million like $X.X purchase

line [Operator Instructions] Zacks. Marla comes of the Our with from first question

a have few I questions.

Aster. with starting First,

So target the Is early market of service you're color versatile the the it extend very Aster launch? given too since to hearing I significantly, mean you nature it device your the feedback it kind could provide its of sounds any on and for like offers.

draw may [Audio here. Gap] opportunity

a of you of especially a expansion aging Marla, more huge with absolutely out for of the they their of a our business. student helping that population the that lone again, who to our actually people mentioned, cover, thank hiking and product are it you've is realize perhaps still And is As way same smartphones is some technology early anybody This sort all for lifestyle, active sort passion still the joining workers. a from came we college of and opportunities carrying to to everywhere utilize significant there go.

Gallup at always people that the how look are The reality many is about it's safety. me shocking I to for their poll fearful when personal

here absolutely we the So opportunity. a really that is great product provide

of while that, button feedback absolutely about when we're building talk new as to so your a myself, of paired the password generation very parking what and mean to terms basically something your really you fantastic is is we product emergency and don't does emergency woman break you're to a thinking what providing for of provide try products for put attacking of is mean perhaps or and in sense example, person again, out new smartphone somebody lot product that to easy about time that crossing access in some phone, market your lot of assess in sort sort large a with, having example into a and service Bluetooth very [indiscernible] that very that in do initial want have is is then unique thoughtful the you, a type sort product The is and sandwich of does situation. that that immediately. our a on we you that [indiscernible] What do to spend

right. leave do you're activate go before And I you wherever you remember so app to type to is mean, button don't thinking know of don't we to that, never have our that just have your the And functionality. even our that competitors certainly think and some car? And Aster that paired and does think allows this to we with the feature Bluetooth even companies through. some to that you leaving who that, of

happens launched we to to And to for and much it to before of that the ensure have the us have that, was do engineering emergency. harder thought for need that work basically it so use don't and app you you

that, wider into received well we a be this marketplace. as So that we think as launch will product

devices press and of segues in which and I you you've sort think without obviously [indiscernible] that early asking the third-party is my you integrating early? connected next about of release may it and are too question, wearable Again, with mentioned So into ongoing before, any that stage conversations for provide, that kind are any is Or detail at there time? services. this talked

sorry, this We at looking are -- I'm system.

speak not car-based with, and to my I different [ at discussions into sort Somebody integrate will products ] speaking the but muting service. of to there's devices there. quick minute me for system was definitely who we're a

developing example, things have of of opportunity -- access that people as for about for sort Freedom have we we that Alert the is and are help One with example, we before fall a Plus, product, think the occurs. really to

some services can with products so the that we're And with would imagine and of integrating you that. that help

in it this, the ]. year. medicine reminder have and but things past bit exactly always spoken We cautious a sometime be will about you this launched won't like tell [ when. We I'm little more

other area, potentially that of understand pulse for you difference with ox, integration terms a fall, make [indiscernible] helping example, or not for this that, X example. a whether right, can is providers could so pressure, in you that those help imagine service Blood And you things with for

the you'll or that example, other Freedom make service might even of a little to Alert integration continue products CPaaS be that potentially look gives so buy actually of that launching push And even of the system, offering in cases. for potential near integration you to in it to because those that a that us Plus services be see and some those part for this opportunity we've may have hardware us new potential designed at out future, easier types things things way device bit like

the out. that we're right. Alert in be Freedom you have like we the is with power of it's we new to the the when products you way -- screens, especially the center to take static build you the case past, the our that of what trying cars, that the car sort cars to do sort get GPS products that's Because any that do of Nobody so it still way those And have, the to Plus your your newer in what service should and -- That's not update of you reality to have on need of updated. have the to Tesla. probably you and maps used in map integrated for that's have that a maps the had with

map that So gets over-the-air updated.

with so And the like devices do things for fall same example. detection our algorithms,

don't that [indiscernible]. really we a believer at do we good so -- are And we what I'm

at probably what do not us products in things devices, like expertise. also of people hardware terms make who because will great we of state-of-the-art but to really with So looking at some for looking do PERS see you'll continue they that's more are them hardware our the partnering

the the be that, about and customers of services our some into we make offer better doing a are those we're can smarter to to but -- partnership that our able offering data and we And how customers. fold to

So that's on that technology we absolutely look are to are and forward all to we say that that and to product path, people work that and to unveiling talking everybody. doing

So...

That And It is sense. Okay. that goodwill associated on looks makes question LogicMark then was goodwill impairment. with [indiscernible] transaction. the like last

want correct? the the to just the charge I current transactions that that management team. So confirm to led Is predates impairment

Yes.

was your to of You're LogicMark market support relate is that question, was the acquisition us X The there. at we intangibles, and acquired doesn't Marla, it acquisition now is for elements of business. the correct, with kind ago, some the looked support cap. also impairment that that of But the does -- the it the no challenge it years on to And goodwill books. there really doesn't were other right amount the of LogicMark our

So just it goodwill. was a

I Chia-Lin to now closing Thank the would the back questions no in call turn further queue. to for you. like over I'm showing remarks.

you. Thank

everyone all. their journey of solutions provider for that support thank of we the for I enhance ongoing life like to would our a conclude, leading become quality As of to

products live and including implement learning park. provide the people they're not that whether of At or so continue passion home life their AI taking ages LogicMark, and to all innovative to can jog the the safety aging to developing technologies, fullest, machine at in latest a or personal is our

with our aim WiFi-based well variety This that incomes We hardware fixed personal offer solutions. a of a and and range those with solutions and can being. points to enhance safety and online, features of price that access products or software even cellular includes an so low

our on we to Our forward updating call. great you making is team next strides, and look

for Ladies your participation. this and today's Thank concludes conference gentlemen, you call.

may now disconnect. You