LogicMark, Inc. Reports Financial Results for the Quarter Ended March 31, 2025
LogicMark, Inc. reported its financial results for the quarter ended March 31, 2025. The company’s condensed balance sheet as of March 31, 2025, showed total assets of $X, total liabilities of $Y, and total stockholders’ equity of $Z. The company’s condensed statements of operations for the three months ended March 31, 2025, reported revenue of $X, net income of $Y, and earnings per share of $Z. The company’s condensed statements of cash flows for the three months ended March 31, 2025, reported cash flows from operations of $X, cash flows from investing activities of $Y, and cash flows from financing activities of $Z. The company’s management’s discussion and analysis of financial condition and results of operations highlighted the company’s financial performance and outlook for the future.
Overview
LogicMark, Inc. is a company that provides PERS (Personal Emergency Response System), health communications devices, and Internet of Things technology to create a connected care platform. The company’s devices enable people to receive care at home, live independently, and remotely monitor the health and safety of loved ones. LogicMark’s PERS devices incorporate two-way voice communication technology in the medical alert pendant, providing life-saving technology at a consumer-friendly price point. The company is focused on modernizing remote monitoring to help people stay safe and live independently longer. Its products are sold directly to consumers through various channels, including its website, Amazon, and the United States Veterans Health Administration. LogicMark was also awarded a contract by the U.S. General Services Administration to distribute its products to federal, state, and local governments.
Recent Developments
Delisting Notification:
- On May 2, 2025, LogicMark received a notification from the Nasdaq Staff stating that the company’s stock would be delisted from the Nasdaq Capital Market.
- The Staff determined that the company’s issuance of securities in connection with its February Offering, particularly the Series D Warrants, resulted in substantial dilution for shareholders, raising public interest concerns.
- LogicMark believes it complied with all applicable rules and regulations and has submitted a response to the Panel to regain compliance with Nasdaq’s listing standards.
Board and Committee Changes:
- On April 28, 2025, the company announced new leadership for the Board of Directors and its committees.
Results of Operations
Revenue, Cost of Goods Sold, and Gross Profit:
| Metric | Q1 2025 | Q1 2024 | $ Change | % Change |
|---|---|---|---|---|
| Revenue | $2,591,824 | $2,611,083 | $(19,259) | (1)% |
| Cost of Goods Sold | $946,597 | $843,865 | $102,732 | 12% |
| Gross Profit | $1,645,227 | $1,767,218 | $(121,991) | (7)% |
| Profit Margin | 63% | 68% | - | - |
- Revenue decreased by 1% due to lower sales of legacy hardware, partially offset by increased sales of the Freedom Alert Mini.
- Gross profit margin decreased from 68% to 63% due to higher costs for monitoring services on the company’s monitored hardware.
Operating Expenses:
| Operating Expenses | Q1 2025 | Q1 2024 | $ Change | % Change |
|---|---|---|---|---|
| Direct operating cost | $343,626 | $330,920 | $12,706 | 4% |
| Advertising costs | $174,590 | $152,213 | $22,377 | 15% |
| Selling and marketing | $517,100 | $587,538 | $(70,438) | (12)% |
| Research and development | $155,489 | $173,902 | $(18,413) | (11)% |
| General and administrative | $2,269,504 | $1,898,963 | $370,541 | 20% |
| Other expense | $49,611 | $83,826 | $(34,215) | (41)% |
| Depreciation and amortization | $499,425 | $345,551 | $153,874 | 45% |
| Total Expenses | $4,009,345 | $3,572,913 | $436,432 | 12% |
- Direct operating costs increased due to higher merchant fees and personnel costs.
- Advertising costs increased due to expanded marketing on Amazon and social media.
- Selling and marketing expenses decreased due to lower consultant costs.
- R&D expenses decreased due to reduced product development and engineering costs.
- G&A costs increased due to higher consulting, investor relations, and legal fees.
Other Income
| Other Income | Q1 2025 | Q1 2024 | $ Change | % Change |
|---|---|---|---|---|
| Interest income | $45,213 | $61,152 | $(15,939) | (26)% |
| Other income | $127,919 | $0 | $127,919 | 100% |
| Total Other Income | $173,132 | $61,152 | $111,980 | 183% |
- Other income increased due to a $0.1 million refund from the IRS for an employee retention credit.
Liquidity and Capital Resources
Sources of Liquidity:
- LogicMark generated an operating loss of $2.4 million and negative free cash flows of $7.8 million for Q1 2025.
- As of March 31, 2025, the company had $9.0 million in cash and cash equivalents, $6.0 million in government securities investments, and $14.3 million in working capital.
- During Q1 2025, the company received $14.4 million in gross proceeds from the issuance of common stock and warrants.
- The company believes it has sufficient capital to sustain operations for at least 12 months and may raise additional funds in the future if necessary.
Cash Flows:
- Cash used in operating activities was $1.7 million in Q1 2025, compared to $1.1 million in Q1 2024.
- Cash used in investing activities included $0.2 million for software development and $6.0 million for government securities investments.
- Cash provided by financing activities was $13.0 million, primarily from the $14.4 million in proceeds from the February 2025 equity offering.
Impact of Inflation and Tariffs
- LogicMark’s business has been modestly impacted by inflationary trends, which may increase costs for fulfillment, raw materials, components, and labor.
- The company has been able to maintain profit margins through productivity improvements, supply chain management, and cost reduction programs.
- The impact of new or existing tariffs, trade restrictions, or retaliatory actions on the company’s products or components is uncertain and could adversely impact its ability to source components, manufacture products at competitive costs, or sell products at prices customers are willing to pay.
Off Balance Sheet Arrangements
- LogicMark does not have any off-balance sheet arrangements or undisclosed borrowings/debt.
Critical Accounting Policies
- There were no significant changes to the company’s critical accounting policies and estimates during Q1 2025.
