Q4 2021 LogicMark Inc Earnings Call

Speaker 1: I would now like to send a comferencisibility to years to go. Today, jilles abraham from core IR R Please go ahead.

Speaker 2: Thank you very much, operator. Good day everyone, and thank you for participating in today's conference call.

Speaker 2: Joining me from logic Mark leadership team, our shland Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer.

Speaker 2: During this call, management will be making forward-looking statements, including statements that address logic marks's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

Speaker 2: For more information about these risks Please refer to the risk factors described in logic Mark's most recently filed annual report on Form 10-K and subsequent periodic reorts filed with the SEC and logic Mark's press release that accompany this call. Particularly the cautionary statements within.

Speaker 2: The contents of this call contains time-sensitive information that is accuring only as of today, April nineteenth 2022. that, except as required by law, logic Mark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur out to this call.

Speaker 2: It's now my pleasure to turn the call over to the company's CEO China simmonth, China.

Speaker 3: Thank you, jewels. This is our first earnings call under our new name, logic Mark, So welcome everyone and thanks for joining us.

Speaker 3: Today I would like to take the opportunity to close the books on 2021 and open a new chapter for our company. As you know from our filing with the SEC, we did have to postpone this call previously, as our auditors have not completed their review of the financial statements in 10 -k.

Speaker 3: It is a privilege to haveap an appointed Min like CEO and a member of the Board last year.

Speaker 3: My mandate was the cleanhouse. We bubuild our company and reposition it with new products to enter new markets, to serve the care economy.

Speaker 3: After just a few weeks in a row, it became a parent that certain items needed our immediate attention.

Speaker 3: First given that we are publicly trateded a company, there are governance and listing standards that we were required to follow.

Speaker 3: one of the listists to the minimum share price that must be maintained on NASDAQ or be reallisted.

Speaker 3: After our share pricees fell below the required level, our Board <expletive> shareholders could prove reverse stock splits of our comuming and seriricc preferred classeseuro shareholders approve these splits.

Speaker 3: The outreach program that we conducted to obtain approval was time consuming thebelow wasth. The time was important for logic marktast' sufficient access to the capital markets to help support future growth, which I will speak to in a moment.

Speaker 3: Second this cus our requirements for raising new capital in light of our future plans and thought that the demand was there, So we issued new equity to help provide runway for our future growth. We also focused on ensuring that existing debts were paiding full.

Speaker 4: Mic cost.

Speaker 3: Mike will talk more about the numbers in a moment.

Speaker 3: Operationally, we observed the corporate infrastructure was not in place to support our future plans.

Speaker 3: As a result, we began outlining with, skills were needed by laric market to rebuild our team and the hiring process began.

Speaker 3: We will also continue to assess our policies and procedures, as well as evaluate our supply chain, to ensure that we are well positioned going forward.

Speaker 3: On the new business fund, we identified an opportunity to expand our core government business by applying for a? U's general services administration, or GSA contract.

Speaker 3: The GSA is the federal government's purchasing agent, and it is a long and difficult process to obtain these contracts, and we consider it an accomplishment in and of itself.

Speaker 3: While our products have been available to veterans through the Veterans health administration, this new contract extends our reach to more government buyers, which allows us to supply our products and services to more federal agencies, States and statement andunicipalities, So that we can serve more people.

Speaker 3: We anticipate this will boost government revenues. We value our record of strong service.

Speaker 3: With the expected phase out of the three G network by carriers during 2022. We began preparing our customers for the transition during the fourth quarter last year.

Speaker 3: The shoutdown of the three G network has been refer to as the three G sunsetting.

Speaker 3: We partner with this Department of Veterans Affairs to decreate an outreach plan to put veterans first, notifying those that had an effective device.

Speaker 3: Specifically our program involved a number of activities, including direct mail. This included mailing letters and postcars to veterans who may be affected to help them understand three G Sun setting and what to do to replace their units.

Speaker 3: Customer support. We created a dedicated film line and a dedicated team of customer support representatives helped our veterans with replacement and set up of four new fourg units.

Speaker 3: Media outreach. Our team spoke with numerous news media organizations to secure educational three D sunsetting coverage. You may have seen my quote in a senior planet article published by the AP, or educational feature article D an in over 750 media outlets.

Speaker 3: And direct-to veteran education programs, which included a three G sunsetting resource center. arefa Q to net instructional video on how to check current logic work devices.

Speaker 3: We began the arduous process to refocus the company last year so that we wereconstart 2022, But as much of a clean state as possible.

Speaker 3: We began to put together the team, products and capital structure for the company to enable us to get on the right path for growth in 2020. -two and.

Speaker 3: The largest bookck management teams and our Board of Directors are committed to rebuilding our business.

Speaker 3: That lead speak to what we have planned for 2020 two.

Speaker 3: This year is all about developing new products and entering new markets to serve the dynamic and growing care economy.

Speaker 3: Our new killing platform as a service or cpass business model will drive our strategy.

Speaker 3: We plan to expand product offerings for both ongo and at-home solutions, continue to build out our established line of purs devices. What develop a new software that would extend our customer reach?

Unknown Speaker: And integrate Artificial Intelligence and Machine Learning.

Speaker 1: And expand our distribution to government, health care and direct consumer channels.

Speaker 1: And expand our distribution to government, health care and direct consumer channels.

Speaker 1: While we were able to accomplish a great deal last year with a small team our new strategy also requires us to bring on new talent.

Speaker 1: While we were able to accomplish a great deal last year with a small team our new strategy also requires us to bring on new talent.

Speaker 1: our new strategy also requires us to bring on new talent.

Speaker 1: We've announced a number of important key hires in the first quarter to help us execute our plan.

Speaker 1: First, I'm thrilled that we've added two key executives. And two new board members.

Speaker 1: All have a very diverse set of personal and professional skills.

Speaker 1: Mark Archer has joined us full time as our CFO after assuming in an Advisor capacity last year.

Speaker 1: He brings significant experience helping small companies transform into bigger ones.

Speaker 1: He'll be focusing on strengthening our financial and reporting controls, assessing

Speaker 1: financial options and helping us evaluate, nurture and acquisition opportunities. 

Speaker 1: Rafael Saavedra has also joined us as VP of Engineering to lead the charge in new product development.

Speaker 1: He is deemed as inventor on various patents in geospatial, mobile, analytics, blockchain and connected car technologies.

Speaker 1: His knowledge of crowd-based connected IoT system, AI and Machine learning is a natural fit for the path we envision for Logic Mark.

Speaker 1: Sherice Torres, our new board number brings strong abilities in Change Management, Consumer Marketing and Strategy.

Speaker 1: She currently serves as the Chief Marketing Officer of Circle, a  global financial technology firm.

Speaker 1: She currently serves as the Chief Marketing Officer of Circle, a  global financial technology firm.

Speaker 1: global financial technology firm.

Speaker 1: Companies that she has worked for include Google, Nickelodeon, Meta and Deloitte Consulting. She is also an independent member of the board at Advance Auto Parts, a publicly traded company with a market capitalization of over $12 billion.

Speaker 1: Companies that she has worked for include Google, Nickelodeon, Meta and Deloitte Consulting. She is also an independent member of the board at Advance Auto Parts, a publicly traded company with a market capitalization of over $12 billion.

Speaker 1: She is also an independent member of the board at Advance Auto Parts, a publicly traded company with a market capitalization of over $12 billion.

Speaker 1: publicly traded company with a market capitalization of over $12 billion.

Speaker 1: Sherice also serves on advisory boards of several nonprofit organizations.

Speaker 1: John Pettitt has also joined the LogicMark Board. He currently works at Google as a technology leader for a multiproduct team.

Speaker 1: John Pettitt has also joined the LogicMark Board. He currently works at Google as a technology leader for a multiproduct team.

Speaker 1: He currently works at Google as a technology leader for a multiproduct team.

Speaker 1: He brings with him nearly 40 years of experience in e-commerce and content distribution and protection,  including multiple foundational technology patents.

Speaker 1: He brings with him nearly 40 years of experience in e-commerce and content distribution and protection,  including multiple foundational technology patents.

Speaker 1: He brings with him nearly 40 years of experience in e-commerce and content distribution and protection,  including multiple foundational technology patents.

Speaker 1: including multiple foundational technology patents.

Speaker 1:  He has a successful technology standard with 4 exits under his belt, 2 IPOs on the Nasdaq as Co-Founder and CTO of software.net and CyberSource, and 2 exits to major companies, the most recent of which was to Google.

Speaker 1:  He has a successful technology standard with 4 exits under his belt, 2 IPOs on the Nasdaq as Co-Founder and CTO of software.net and CyberSource, and 2 exits to major companies, the most recent of which was to Google.

Speaker 1: 2 IPOs on the Nasdaq as Co-Founder and CTO of software.net and CyberSource, and 2 exits to major companies, the most recent of which was to Google.

Speaker 1: and 2 exits to major companies, the most recent of which was to Google.

Speaker 1: Sherice and John bring fresh entrepreneurial perspective to LogicMark, given their start-up experience and the public company experience is also invaluable  as they understand the needs of our various stakeholders.

Speaker 1: Sherice and John bring fresh entrepreneurial perspective to LogicMark, given their start-up experience and the public company experience is also invaluable  as they understand the needs of our various stakeholders.

Speaker 1: and the public company experience is also invaluable  as they understand the needs of our various stakeholders.

Speaker 1: as they understand the needs of our various stakeholders.

Speaker 1: Having the right talent positions us for the future as we look to change the trajectory of our position in the care economy. Talent is key, and I'm thrilled that we have been able to attract executives of this caliber.

Speaker 1: Having the right talent positions us for the future as we look to change the trajectory of our position in the care economy. Talent is key, and I'm thrilled that we have been able to attract executives of this caliber.

Speaker 1: Having the right talent positions us for the future as we look to change the trajectory of our position in the care economy. Talent is key, and I'm thrilled that we have been able to attract executives of this caliber.

Speaker 1: Talent is key, and I'm thrilled that we have been able to attract executives of this caliber.

Speaker 2: As you know, LogicMark has been doing business with the VA for 11 years. And with our approval last year, as GSA vendor, we believe that our existing government business is the best place with the redoubling of efforts to increase sales. This includes federal, state and local agencies. 

Speaker 2: As you know, LogicMark has been doing business with the VA for 11 years. And with our approval last year, as GSA vendor, we believe that our existing government business is the best place with the redoubling of efforts to increase sales. This includes federal, state and local agencies. 

Speaker 2: As you know, LogicMark has been doing business with the VA for 11 years. And with our approval last year, as GSA vendor, we believe that our existing government business is the best place with the redoubling of efforts to increase sales. This includes federal, state and local agencies. 

Speaker 1: Market Mark has been doing business with the V a eleven.

Speaker 1: And with our approval last year, as GSA vendor, we believe that our existing government business is the best place with the redoubling of efforts to increase sales.

Speaker 1: we believe that our existing government business is the best place with the redoubling of efforts to increase sales.

Speaker 1: with the redoubling of efforts to increase sales.

Speaker 1: This includes federal, state and local agencies. 

Speaker 1: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products and further expand our team. In fact, increased sales efforts are already underway.

Speaker 1: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products and further expand our team. In fact, increased sales efforts are already underway.

Speaker 1: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products and further expand our team. In fact, increased sales efforts are already underway.

Speaker 1: further expand our team.

Speaker 1: In fact, increased sales efforts are already underway.

Speaker 1: LogicMark offers affordable health communication devices that keep over half a million people safe everyday. 

Speaker 1: And our capability to supply the VA system  and the broader government gives us confidence that we can enter larger markets.

Speaker 1: And our capability to supply the VA system  and the broader government gives us confidence that we can enter larger markets.

Speaker 1: and the broader government gives us confidence that we can enter larger markets.

Speaker 3: In this respect,  we also plan to sell through health care and direct-to-consumer channels. By the end of the first half of 2022, we anticipate launching an e-commerce platform.

Speaker 3: In this respect,  we also plan to sell through health care and direct-to-consumer channels. By the end of the first half of 2022, we anticipate launching an e-commerce platform.

Speaker 3: In this respect,  we also plan to sell through health care and direct-to-consumer channels. By the end of the first half of 2022, we anticipate launching an e-commerce platform.

Speaker 3: In this respect,  we also plan to sell through health care and direct-to-consumer channels. By the end of the first half of 2022, we anticipate launching an e-commerce platform.

Speaker 1: we also plan to sell through health care and direct-to-consumer channels.

Speaker 1: By the end of the first half of 2022, we anticipate launching an e-commerce platform.

Speaker 1: The types of products we are developing include both at-home and on-the-go solutions, including our first software application.

Speaker 1: Older generations have become are comfortable with digital age, with 61% owning a smartphone  according to a 2021 Pew Research study.

Speaker 1: Older generations have become are comfortable with digital age, with 61% owning a smartphone  according to a 2021 Pew Research study.

Speaker 1: 61% owning a smartphone  according to a 2021 Pew Research study.

Speaker 1: according to a 2021 Pew Research study.

Speaker 1: This creates a pathway for our R&D group to introduce solutions powered by state-of-the-art artificial intelligence,  machine learning and IoT capabilities.

Speaker 1: This creates a pathway for our R&D group to introduce solutions powered by state-of-the-art artificial intelligence,  machine learning and IoT capabilities.

Speaker 1: machine learning and IoT capabilities.

Speaker 1: I've talked about an expanded team at LogicMark to help lead our efforts.

Speaker 1: External partnerships are also important.

Speaker 1: In fact, we are in discussions with other like-minded partners to help us expand our product offerings and customer reach.

Speaker 1: We plan on adding monitor services to our offerings as we diversify our product portfolio and look to provide a richer consumer experience.

Speaker 1: Today subscriptions have become more commonplace which gives us the opportunity to provide more data and connected services to keep consumers safe.

Speaker 1: We expect to share more information in regarding soon regarding partnership agreement.

Speaker 2: As you know, all companies are facing supply chain challenges. From the latest spike in COVID cases, to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 2: As you know, all companies are facing supply chain challenges. From the latest spike in COVID cases, to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 2: As you know, all companies are facing supply chain challenges. From the latest spike in COVID cases, to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 1: all companies are facing supply chain challenges.

Speaker 1: From the latest spike in COVID cases, to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 1: From the latest spike in COVID cases, to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 1: the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 1: the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 1: Our suppliers and manufacturers are dealing with continued.

Speaker 1: Luckily, we believe that LogicMark is nimble enough to deal with most of the stresses on our supply chain and course correct with little disruption.

Speaker 1: Luckily, we believe that LogicMark is nimble enough to deal with most of the stresses on our supply chain and course correct with little disruption.

Speaker 1: most of the stresses on our supply chain  and course correct with little disruption.

Speaker 1: and course correct with little disruption.

Speaker 4: However, we expect these factors to have an impact on the price of our products in our marketplace, as well as the cost of doing business. We will always endeavor to offer solutions at varying price points to meet the needs of our customers.

Speaker 4: However, we expect these factors to have an impact on the price of our products in our marketplace, as well as the cost of doing business. We will always endeavor to offer solutions at varying price points to meet the needs of our customers.

Speaker 4: However, we expect these factors to have an impact on the price of our products in our marketplace, as well as the cost of doing business. We will always endeavor to offer solutions at varying price points to meet the needs of our customers.

Speaker 1: we expect these factors to have an impact on the price of our products in our marketplace, as well as the cost of doing business.

Speaker 1: as well as the cost of doing business.

Speaker 1: We will always endeavor to offer solutions at varying price points to meet the needs of our customers.

Speaker 1: We will always endeavor to offer solutions at varying price points to meet the needs of our customers.

Speaker 5: to meet the needs of our customers.

Speaker 1: I'll now pause and ask Mark Archer to discuss our fourth quarter and year-end financial results. And then  I'll return to provide some closing remarks.

Speaker 1: I'll now pause and ask Mark Archer to discuss our fourth quarter and year-end financial results. And then  I'll return to provide some closing remarks.

Speaker 1: I'll return to provide some closing remarks.

Mark J. Archer: Thank you, Chia-Lin. Let me begin by discussing results for the fourth quarter ended December 31st 2021.

Mark J. Archer: Thank you, Chia-Lin. Let me begin by discussing results for the fourth quarter ended December 31st 2021.

Speaker 6: 2021.

Speaker 6: Revenue was $2.4 million, a decrease of 6% from the fourth quarter of last year,  but up 1% from this year’s third quarter.

Speaker 6: Revenue was $2.4 million, a decrease of 6% from the fourth quarter of last year,  but up 1% from this year’s third quarter.

Speaker 6: but up 1% from this year’s third quarter.

Speaker 6: From this year's third.

Speaker 6: We experienced 5% to 6% year-over-year growth in sales in October and November of 2021, but sales were soft in December 2021 as COVID-19 began to peak again.

Speaker 6: Gross profit for the quarter was $1 million, a decrease of $100,000 compared with the same quarter last year. Gross margin was 43% compared to 46% in the same quarter last year.

Speaker 6: Gross profit for the quarter was $1 million, a decrease of $100,000 compared with the same quarter last year. Gross margin was 43% compared to 46% in the same quarter last year.

Speaker 6: Gross profit for the quarter was $1 million, a decrease of $100,000 compared with the same quarter last year. Gross margin was 43% compared to 46% in the same quarter last year.

Speaker 6: a decrease of $100,000 compared with the same quarter last year.

Speaker 6: Gross margin was 43% compared to 46% in the same quarter last year.

Speaker 6: Compared to 46% in the same quarter last year.

Speaker 6: The reduction in gross margin was due to a mix shift toward our costlier Guardian Alert 911 Plus 4G unit.

Speaker 6: Operating expenses were $7.1 million, compared to $2.2 million in the same quarter last year.

Speaker 6: Expenses in the fourth quarter of 2021 included a $4.5 million noncash goodwill impairment charge.

Speaker 6: Adjusting for this expense, operating expenses would have been $2.6 million, an increase of $400,000 or 18% over the fourth quarter of last year.

Speaker 6: In addition, let me note that noncash stock compensation expense

Speaker 6: In last year's fourth quarter was five thousand higher than in the fourth quarter of two thousand, and.

Speaker 6: Operating loss was $6.1 million versus an operating loss in the prior year’s fourth quarter of $1 million

Speaker 6: Adjusting for the goodwill impairment charge, operating loss would have been $1.6 million or $600,000 higher than the prior year's fourth quarter.

Speaker 6: Adjusting for the goodwill impairment charge, operating loss would have been $1.6 million or $600,000 higher than the prior year's fourth quarter.

Speaker 6: or $600,000 higher than the prior year's fourth quarter.

Speaker 6: than the prior year's fourth quarter.

Speaker 6: And net loss for the quarter was $6.3 million compared to a net loss of $1.6 million in the same quarter last year.

Speaker 6: Once more, adjusting for the goodwill impairment charge, net loss for the quarter would have been $1.8 million or $300,000 higher than the same quarter last year. 

Speaker 6: At quarter end, the company had $12 million in unrestricted cash. Now let me talk about the full year 2021 results.

Speaker 6: At quarter end, the company had $12 million in unrestricted cash. Now let me talk about the full year 2021 results.

Speaker 6: The company had $12 million in unrestricted.

Speaker 6: Now let me talk about the full year 2021 results.

Speaker 6: Revenue for the year was $10 million, a decrease of $1.4 million or 12% from the prior year.

Speaker 6: A decrease of one point four million, or 12%, from the prior.

Speaker 6: Gross profit was $5.7 million, a decrease of $2 million or 26% from the prior year.

Speaker 6: Gross profit was $5.7 million, a decrease of $2 million or 26% from the prior year.

Speaker 6: a decrease of $2 million or 26% from the prior year.

Speaker 6: Gross margin declined from 67% to 57% due to an increase in inventory reserves and the upgrade of our 3G Guardian Alert 911 Plus to a 4G product.

Speaker 6: Gross margin declined from 67% to 57% due to an increase in inventory reserves and the upgrade of our 3G Guardian Alert 911 Plus to a 4G product.

Speaker 6: And the upgrade of our three G Guardian alert 9- elevenplus. To a fourg product.

Speaker 6: To a fourg product.

Speaker 6: Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher 4G manufacturing cost.

Speaker 6: Operating expenses were  $13.2 million, up $5 million or 60% from the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up $400,000 or 5%.

Speaker 6: Operating expenses were  $13.2 million, up $5 million or 60% from the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up $400,000 or 5%.

Speaker 7: up $5 million or 60% from the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up $400,000 or 5%.

Speaker 6: $5 million or 60% from the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up $400,000 or 5%.

Speaker 6: from the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up $400,000 or 5%.

Speaker 6: Operating loss was $7.5 million, compared to an operating loss of $600,000 last year.

Speaker 6: And net loss for the year was $11.7 million, or $2.23 cents per share compared to a net loss of $3.7 million, or $1.14 per share for the prior year. These per share numbers have been adjusted for the company’s October 2021 reverse stock split.

Speaker 6: And net loss for the year was $11.7 million, or $2.23 cents per share compared to a net loss of $3.7 million, or $1.14 per share for the prior year. These per share numbers have been adjusted for the company’s October 2021 reverse stock split.

Speaker 6: And net loss for the year was $11.7 million, or $2.23 cents per share compared to a net loss of $3.7 million, or $1.14 per share for the prior year. These per share numbers have been adjusted for the company’s October 2021 reverse stock split.

Speaker 6: compared to a net loss of $3.7 million, or $1.14 per share for the prior year. Case per share numbers had been adjusted for the company's October 2021 reverse.

Speaker 6: Case per share numbers had been adjusted for the company's October 2021 reverse.

Speaker 6: In the net loss of 11.7 million for 2021, there are $10 million of noncash charges, including the goodwill impairment, warrant modification expense, Stock compensation expense and depreciation and amortization.

Speaker 6: In the net loss of 11.7 million for 2021, there are $10 million of noncash charges, including the goodwill impairment, warrant modification expense, Stock compensation expense and depreciation and amortization.

Speaker 6: including the goodwill impairment, warrant modification expense, Stock compensation expense and depreciation and amortization.

Speaker 6: including the goodwill impairment, warrant modification expense, Stock compensation expense and depreciation and amortization.

Speaker 6: Stock compensation expense and depreciation and amortization.

Speaker 6: and depreciation and amortization.

Speaker 6: This is up from $1.6 million in comparable noncash charges in 2020.

Speaker 6: Let me make a couple of final points before I turn the call back over to Chia-Lin.

Speaker 6: On March 31, the judge presiding over the litigation concerning the sale of Fit Pay, our former fintech subsidiary, ruled favorably on our motion for summary judgment and dismissed the case.

Speaker 6: This was the company's final open piece of litigation.

Speaker 6: And finally, the last nine months that I've been with the company have been challenging to say the least, as we cleaned up the administrative side of the business and put the appropriate infrastructure in place to support rapid growth.

Speaker 6: And finally, the last nine months that I've been with the company have been challenging to say the least, as we cleaned up the administrative side of the business and put the appropriate infrastructure in place to support rapid growth.

Speaker 6: And finally, the last nine months that I've been with the company have been challenging to say the least, as we cleaned up the administrative side of the business and put the appropriate infrastructure in place to support rapid growth.

Speaker 6: The last nine months that I've been with the company have been challenging to say the least as we cleaned up the administrative side of the.

Speaker 6: and put the appropriate infrastructure in place to support rapid growth.

Speaker 6: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales and profitability.

Speaker 6: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales and profitability.

Speaker 6: and profitability.

Speaker 8: Chai-Lin?

Chia-Lin Simmons: Thanks Mark.

Speaker 1: As we wrap up the call I want to leave you with a couple of key thoughts.

Speaker 1: Our plans are ambitious, but with the right team and right products, we expect to establish LogicMark as a leading brand in the health communications market and care economy.

Speaker 1: Our plans are ambitious, but with the right team and right products, we expect to establish LogicMark as a leading brand in the health communications market and care economy.

Speaker 1: but with the right team and right products, we expect to establish LogicMark as a leading brand in the health communications market and care economy.

Speaker 1: and right products, we expect to establish LogicMark as a leading brand in the health communications market and care economy.

Speaker 1: Research indicates that there is certainly enough demand for innovative products and solutions that are supported with stellar customer service.

Speaker 1: We believe that LogicMark has the ability to capture more of the care economy market.

Speaker 1: From the grandmother who wishes to age in place in our home to our beloved military veteran, who may need some extra help or the student who needs and seeks additional security.

Speaker 1: From the grandmother who wishes to age in place in our home to our beloved military veteran, who may need some extra help or the student who needs and seeks additional security.

Speaker 1: What the students who need.

Speaker 1: Heat additional.

Speaker 1: At time, I will open the call to questions. Operator? 

Speaker 1: At time, I will open the call to questions. Operator? 

Speaker 10: Operator.

Operator: Thank you. Ladies and gentlemen, if you'd like to ask a question at this time, you will need to press the star then the one key on your touch tone telephone.

Operator: Again if you'd like to ask a question, please press *1  to ask a question. And I'm showing no questions at this time.

Operator: Again if you'd like to ask a question, please press *1  to ask a question. And I'm showing no questions at this time.

Speaker 11: And I'm showing no questions at this time.

Chia-Lin Simmons: I want to thank all of you who dialed in to listen to our call today. We'll be reporting on the first quarter results in just a few weeks so I look forward to providing another update on our progress at that time.

Chia-Lin Simmons: I want to thank all of you who dialed in to listen to our call today. We'll be reporting on the first quarter results in just a few weeks so I look forward to providing another update on our progress at that time.

Speaker 1: all of you who dialed in to listen to our call today. We'll be reporting on the first quarter results in just a few weeks so I look forward to providing another update on our progress at that time.

Speaker 1: We'll be reporting on the first quarter results in just a few weeks so I look forward to providing another update on our progress at that time.

Speaker 1: so I look forward to providing another update on our progress at that time.

Operator: Ladies and gentlemen, that does conclude the conference for today, and thank you for your participation. You may now disconnect.

Speaker 13: [Music]

Speaker 13: The.

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the LogicMark Fourth Quarter and Full Year-End 2021 Financial and Corporate Update Conference Call. At this time, all participants are on a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session you will need to press the star then the one key on your touch tone telephone.

Operator: If you require operator assistance any time, please press start then zero. I would now like to turn the conference over to your speaker host today, Jules Abraham from CORE IR. Please go ahead.

Jules Abraham: Thank you very much, operator. Good day, everyone, and thank you for participating in today’s conference call. Joining me from LogicMark’s leadership team are Chia-Lin Simmons, Chief Executive Officer; and Mark Archer, Chief Financial Officer.

Speaker 6: During this call, management will be making forward-looking statements, including statements that address LogicMark’s expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

Speaker 6: For more information about these risks, please refer to the risk factors described in LogicMark’s most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC and LogicMark’s press release that accompanies this call, particularly the cautionary statements within.

Speaker 6: The content of this call contains time-sensitive information that is accurate only as of today, April 19, 2022. And except as required by law, LogicMark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

Operator: It's now my pleasure to turn the call over to the company's CEO, Chai-Lin Simmons. Chai Lin?

Chia-Lin Simmons: Thank you Jules.

Speaker 1: This is our first earnings call under our new name, LogicMark. So welcome everyone and thanks for joining us.

Speaker 1: Today I would like to take the opportunity to close the books on 2021 and open a new chapter for our company. As you know from our filing with the SEC, we did have to postpone this call previously, as our auditors had not completed their review of the financial statements and 10-K.

Speaker 1: It is a privilege to have been appointed LogicMark’s CEO and a member of the Board last year..

Speaker 1: My mandate was to clean house, rebuilt our company and reposition it with new products to enter new markets to serve the care economy.

Speaker 1: After just a few weeks in the role, it became apparent that certain items needed our immediate attention.

Speaker 1: First, given that we are a publicly traded company, there are governance and listing standards that we were required to follow.

Speaker 1: One relates to the minimum share price that must be maintained on Nasdaq where we are listed.

Speaker 1: One relates to the minimum share price that must be maintained on Nasdaq where we are listed.

Speaker 14: O B M.

Speaker 1: After our share price fell below the required level, our Board asked shareholders to approve reverse stock splits of our common and Series C preferred classes.

Speaker 1: Newer shareholders approved these splits.

Speaker 1: The outreach program that we conducted to obtain approval was time-consuming but well worth the time.

Speaker 1: It was important for LogicMark to have sufficient access to the capital markets to help support future growth, which I will speak to in a moment.

Speaker 1: To help support.

Speaker 1: Which I will speak to in.

Speaker 1: Second, we assessed our requirements for raising new capital in light of our future plans and saw that the demand was there.

Speaker 1: Second, we assessed our requirements for raising new capital in light of our future plans and saw that the demand was there.

Speaker 1: And thought of the demand.

Speaker 1: So we issued new equity to help provide runway for our future growth.  We also focused on ensuring that existing debts were paid in full.

Speaker 1: So we issued new equity to help provide runway for our future growth.  We also focused on ensuring that existing debts were paid in full.

Speaker 1:  We also focused on ensuring that existing debts were paid in full.

Speaker 15: Mark will talk more about the numbers in a moment.

Speaker 1: Mike talked more about the numbers in.

Speaker 1: Operationally, we observed the corporate infrastructure was not in place to support our future plans.

Speaker 1: As a result, we began outlining what skills were needed by LogicMark to rebuild our team and the hiring process began.

Speaker 1: We will also continue to assess our policies and procedures as well as evaluate our supply chain to ensure that we are well positioned going forward.

Speaker 1: As well as evaluate our supply chain to ensure that we are well positioned going.

Speaker 1: On the new business front, we identified an opportunity to expand our core government business by applying for a U.S. General Services Administration or GSA contract.

Speaker 10: The GSA is the federal government’s purchasing agent and it is a long and difficult process to obtain these contracts, and we consider it an accomplishment in and of itself.

Speaker 1: shesay is the federalgovernmentspurasing.

Speaker 1: And it is a long and difficult process to obtainthese.

Speaker 1: Can we consider it an accomplishmentin?

Speaker 1: While our products have been available to veterans through the Veterans Health Administration, this new contract extends our reach to more government buyers, which allows us to supply our products and services to more federal agencies, states and state municipalities so that we can serve more people. We anticipate this will boost government revenues.  

Speaker 1: While our products have been available to veterans through the Veterans Health Administration, this new contract extends our reach to more government buyers, which allows us to supply our products and services to more federal agencies, states and state municipalities so that we can serve more people. We anticipate this will boost government revenues.  

Speaker 1: This new contract extends our reach to more government buyers, which allows us to supply our products.

Speaker 1: To more federal agencies States and statement municipalities. So that we can.

Speaker 1: We anticipate this will boost government revenues.  

Speaker 1: We value our record of strong service.

Speaker 1: With expected phaseout of the3G network by carriers during 2022, we began preparing our customers for the transition during the fourth quarter last year.

Speaker 1: The shutdown of the 3G network has been referred to as the 3G sunsetting.

Speaker 1: We partnered with the Department of Veterans Affairs to create an outreach plan to put veterans first, notifying those that had an affected device. 

Speaker 1: We partnered with the Department of Veterans Affairs to create an outreach plan to put veterans first, notifying those that had an affected device. 

Speaker 1: Not findine girls that hadan.

Speaker 1: Specifically, our program involved a number of activities, including direct mail, this included mailing letters and postcards to veterans who may be affected to help them understand 3G sunsetting and what to do to replace their units.

Speaker 1: This included mailing letters.

Speaker 1: impost cars to veterans who may be affected to help them understand through G sunsetting and what to do to replace.

Speaker 4: Customer support: We created a dedicated phone line and a dedicated team of customer support representatives help our veterans with replacement and setup of 4 new 4G units.

Speaker 1: We created a dedicated film M and the dedicated team of customer support representatives helped our veterans ri replacement and set up of four new fourg.

Speaker 1: Media outreach. Our team spoke with numerous news media organizations to secure educational 3G sunsetting coverage.

Speaker 1: Our team spoke with numerous news media organizations to secure educational threed sunset.

Speaker 1: You may have seen my quote in the Senior Planet article published by the AARP where our educational feature article that ran in over 750 media outlets and direct to veteran education programs, which included a 3G sunsetting resource center, FAQs and an instructional video on how to check current LogicMark devices.

Speaker 1: You may have seen my quote in the Senior Planet article published by the AARP where our educational feature article that ran in over 750 media outlets and direct to veteran education programs, which included a 3G sunsetting resource center, FAQs and an instructional video on how to check current LogicMark devices.

Speaker 1: Or educational fature article. They re Banon over 715 media.

Speaker 1: And diret to go on.

Speaker 1: Included a three G sunsetting.

Speaker 1: I thank you.

Speaker 1: In an instructional video on how to check her.

Speaker 1: We began the arduous process to refocus the company last year so that we can start 2022 with as much of a clean state as possible.

Speaker 1: Refocus the company last year so that we can- we canconpectct 2020. Because much of the Queen state.

Speaker 1: Because much of the Queen state.

Speaker 1: We began to put together the team, products and capital structure for the company to enable us to get on the right path for growth in 2022.

Speaker 1: We began to put together the team, products and capital structure for the company to enable us to get on the right path for growth in 2022.

Speaker 16: The point.

Speaker 1: The LogicMark management team and our Board of Directors are committed to rebuilding our business.

Speaker 1: That leads me to what we have planned for 2022. 

Speaker 1: That leads me to what we have planned for 2022. 

Speaker 1: That leads me to what we have planned for 2022. 

Speaker 1: This year is all about developing new products and entering new markets to serve the dynamic and growing care economy. Our new Caring Platform as a Service orCPaaS business model will drive our strategy. We plan to expand product offerings for both on-the-go and at-home solutions, continue to build out our established line of PERS devices, will develop a new software that would extend our customer reach, follow additional patents and further extend our technology stack as well as develop and integrate artificial intelligence and machine learning, and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 1: This year is all about developing new products and entering new markets to serve the dynamic and growing care economy. Our new Caring Platform as a Service orCPaaS business model will drive our strategy. We plan to expand product offerings for both on-the-go and at-home solutions, continue to build out our established line of PERS devices, will develop a new software that would extend our customer reach, follow additional patents and further extend our technology stack as well as develop and integrate artificial intelligence and machine learning, and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 1: This year is all about developing new products and entering new markets to serve the dynamic and growing care economy. Our new Caring Platform as a Service orCPaaS business model will drive our strategy. We plan to expand product offerings for both on-the-go and at-home solutions, continue to build out our established line of PERS devices, will develop a new software that would extend our customer reach, follow additional patents and further extend our technology stack as well as develop and integrate artificial intelligence and machine learning, and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 1: This year is all about developing new products and entering new markets to serve the dynamic and growing care economy. Our new Caring Platform as a Service orCPaaS business model will drive our strategy. We plan to expand product offerings for both on-the-go and at-home solutions, continue to build out our established line of PERS devices, will develop a new software that would extend our customer reach, follow additional patents and further extend our technology stack as well as develop and integrate artificial intelligence and machine learning, and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 1: This year is all about developing new products and entering new markets to serve the dynamic and growing care economy. Our new Caring Platform as a Service orCPaaS business model will drive our strategy. We plan to expand product offerings for both on-the-go and at-home solutions, continue to build out our established line of PERS devices, will develop a new software that would extend our customer reach, follow additional patents and further extend our technology stack as well as develop and integrate artificial intelligence and machine learning, and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 1: Our new cleilling platform as a service or cpass business model will drive our.

Speaker 1: We plan to bad product offeringings for both ongo and at home solutions. Continue to build out our established line of purse devices with develop new software that would extend our customers.

Speaker 1: Continue to build out our established line of purse devices with develop new software that would extend our customers.

Speaker 1: sawall additional patents and further extend our pig.

Speaker 1: As well as develop and integrate artificial intelligence. A machine. Expand our distribution to government health care and to the.

Speaker 1: Expand our distribution to government health care and to the.

Speaker 1: While we were able to accomplish a great deal last year with a small team, our new strategy also requires us to bring on new talent.

Speaker 1: On strategy also requires us to put.

Speaker 1: We’ve announced a number of important key hires in the first quarter to help us execute our plans.

Speaker 1: First I F that we've added two key executives and two new.

Speaker 1: All have a DI really diverse set of personal and.

Speaker 1: Mark Archer has joyed his full ter as her CFO after assuming in an advisory.

Speaker 1: He brings significant experience helping small companies transform into.

Speaker 1: You'll be focusing on strengthening our financial and reporting.

Speaker 1: Financial options in helping us a valid moureand.

Speaker 1: El szadrera also has also joined us as VP engineering to lead the charge in.

Speaker 1: teem this invenure on various patterns in Geospatial mogul analytics, blockchain and connect.

Speaker 1: Knowledge of crowd-based connected biott system. aiim. Machine learning is a natural fit for the path reenvision for.

Speaker 1: toist. Our new Board number brings strong abilities in change management, consumer marketing.

Speaker 1: Currently serves as a Chief Marketing Officer.

Speaker 1: Global financial technology.

Speaker 1: Companies that shareshas about, for include Google nickelodean, Meta and delloit.

Speaker 1: She is also an independent member of the Board. I advan.

Speaker 1: Publicly trateded company with a market tabization of over.

Speaker 1: Ice also serves on Advisor Board. The several nonprofit.

Speaker 1: Plant padicus, also joined the laric.

Speaker 1: He currently looks eclable as a technology leader for multiproduct.

Speaker 1: He brings with him nearly 40 years of experience in e-commerce and contpeent distributionand.

Speaker 1: Including multiple foundational technology.

Speaker 1: heis a successful technology standard with four exits.

Speaker 1: Pls on the nasdq that' co Founder and CTO of stuff dotnet.

Speaker 1: And two exits to major companies, the most recent of which.

Speaker 1: A recent John bring fresh entrepreneurial perspective to logic. Not given their start.

Speaker 1: And the public. Company experience is also invaluable, as the understandthe need of our.

Speaker 1: Having the right talent positions us for the future as we look to change the trajectory of our position in the.

Speaker 1: How is key, and I'm thrilled that we have been able to tract executives.

Speaker 2: You know.

Speaker 1: March marke has been doing business with the V a eleven.

Speaker 1: And with our approval last year, as G.

Speaker 1: You believe that our existing government business is the best place.

Speaker 1: They'll be doubling up efforfort that.

Speaker 1: Quid federal state and look.

Speaker 1: A stellar reputation with the VA should allow us to grow our government business as we introduce.

Speaker 1: Further.

Speaker 1: febacks, increased sales efforts. You have already.

Speaker 1: Logic part offers affordable health plitation deves that keep over half million people.

Speaker 1: Our capability to supply the V.

Speaker 1: The broader government gives us confidence that we can enter.

Speaker 3: In good.

Speaker 1: We also plan a ceult to a health care and interct.

Speaker 1: By the end of the first half of 2022. We anticipate lching an e.

Speaker 1: The typees products we are developing include both at-home and onigo solutions, including our first.

Speaker 1: Older generations of thebecome are comfortable with digital.

Speaker 1: 61% owning.

Speaker 1: According to a 2021.

Speaker 1: Creates a path, pathway for our D group to introduce solutions powerwered by davvis. The art artificial.

Speaker 1: humanning and I OT.

Speaker 1: Talk about an expanded team at LogicMark to help leave.

Speaker 1: interternal partnerships are.

Speaker 17: And that.

Speaker 1: We are in discussions with other large-minded partners to help us expand our product offerings.

Speaker 1: Cannot adding monitor services toraw offerings as we diversify our product portfolio and look to provide a richer.

Speaker 1: Today subscriptions have become more commonplace, which gives us the opportunity to provide more data.

Speaker 1: You connected services to keep.

Speaker 1: We expect to share more information in regarding.

Speaker 2: You know.

Speaker 1: All companies are facing supply chain.

Speaker 1: The latest spike in.

Speaker 1: The war.

Speaker 1: Our suppliers and manufacturers are dealing with continued.

Speaker 1: Luckily, we believe, the logic market is nimble enough to deal with.

Speaker 1: Stresses on.

Speaker 1: And course colrect with.

Speaker 4: However.

Speaker 1: Expect these factors to have an impact on the price of our producticsand.

Speaker 1: As well as a carst.

Speaker 1: We will always endeavor to offer solutions and feeling.

Speaker 5: Commit the me.

Speaker 1: I'll now pause an as my lectrick discuss our fourth quarter and year endfinance.

Speaker 1: Then I'll be trying to provide.

Speaker 18: Thank you cheyin let me begin by discussing results for the fourth. Quarter ended December 30 first.

Speaker 18: 2020.

Speaker 18: Revenue was two point four million, a decrease of 6% from the fourth quarter of last year.

Speaker 18: But up one per cent.

Speaker 18: From this year's third.

Speaker 18: We experienced five to 6% year-over-year growth in sales in October , in November of 2021, but sales were soft in December 2021 as COVID-19 began to peak.

Speaker 18: Gross profit for the quarter was $1 million.

Speaker 18: A decrease of a hundred thousand dollars compared with the same quarter last year.

Speaker 18: Gross margin was 43 per cent.

Speaker 18: Compared to 46% in the same quarter last year.

Speaker 18: The reduction in gross margin was due to a mix shift toward our costlier Guardian alert 9, 11 plus four G.

Speaker 18: Operating expenses were seven point one million, compared to two point two million in the same quarter last year.

Speaker 18: Expenses in the fourth quarter of 2021 included a four and a half million dollar noncash goodwill impairment ch.

Speaker 18: Adjusting for this expense, operating expenses would have been two point six million, an increase of four thousand or 18% over the fourth quarter of last year.

Speaker 18: In addition, let me note that noncash stock compensation expense.

Speaker 18: In last year's fourth quarter was five thousand higher than in the fourth quarter of two thousand, and.

Speaker 18: Operating loss was six point one million, versus an operating loss in the prior year's fourth quarter of a milliondollars.

Speaker 18: Adjusting for the goodwill impairment charge, operating loss would have been one point six million.

Speaker 18: Or $6 thousand higher.

Speaker 18: Than the prior year's birth.

Speaker 18: And net loss for the quarter was six point three million, compared to a net loss of one point six million in the same quarter last year.

Speaker 18: Once more adjusting for the goodwill impairment charge, that loss for the quarter would have been one point eight million, or $3 thousand higher than the same quarter last year.

Speaker 18: At quner end.

Speaker 18: The company had $12 million in unrestricted.

Speaker 18: Now let me talk about that full year 2021.

Speaker 18: Revenue for the year was ten million.

Speaker 18: A decrease of one point four million, or 12%, from the prior.

Speaker 18: Gross profit was five point seven million.

Speaker 18: A decrease of two million, or 26% from the prior.

Speaker 18: Gross margin declined from 67 to 57% due to an increase in inventory reserves.

Speaker 18: And the upgrade of our three G Guardian alert nine elevenpl.

Speaker 18: To a fourg product.

Speaker 18: Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher four G manufacturing.

Speaker 18: Operating expenses were 13.2 million.

Speaker 7: Up.

Speaker 18: five million or 60%.

Speaker 18: From the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up four thousand or five.

Speaker 18: Operating loss was seven and a half million, compared to an operating loss of six thousand last year.

Speaker 18: And net loss for the year was 11.7 million, or $2 and 23 cents per share.

Speaker 18: Compared to a net loss of three point seven million, or a dollar 14 per share for the prioryear.

Speaker 18: Per share numbers had been adjusted for the company's October 2021 reverse.

Speaker 18: In the net loss of 11.7 million for 2021, there are $1 million of noncash charges.

Speaker 19: Including the goodwill impairment warrant modification expense.

Speaker 19: Stock compensation expense.

Speaker 19: And depreciation and amortization.

Speaker 19: This is up from one point six million in comparable noncash charges and.

Speaker 19: Let me make a couple of final points before I turn the call back over to shyland.

Speaker 19: On March 30. first, the judge presiding over the litigation concerning the sale of fit Bay, our former fintech subsidiary, ruled favorably on our motion for summary judgment and dismiss.

Speaker 19: This was the company's final open piece of litigation.

Speaker 19: And finally.

Speaker 19: The last nine months that I've been with the company have been challenging to sayve the least as we cleaned up the administrative side of the.

Speaker 19: And put the appropriate infrastructure in place to support rapid.

Speaker 19: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales.

Speaker 6: And profit.

Speaker 8: charin.

Speaker 9: Thanks much.

Speaker 1: As you wrap up the call I want to leave you with a couple of.

Speaker 1: Our plans are am.

Speaker 1: But with the right team.

Speaker 1: And bite products. We expect to establish logic Mark as a leading gland in a health communications market and care.

Speaker 1: Research indicates that there is certainly enough demand for innovative products and solutions that are supported with stellar.

Speaker 1: We believe the largest mightk has the ability to capture a more of the CuRe economy.

Speaker 1: With grandmother who wishes to age in place in our home, to thebeloved military backgran who may need some.

Speaker 1: What the student who?

Speaker 1: seeakks additional.

Speaker 1: Time I will open a call.

Speaker 10: Up peratlater.

Speaker 11: Thank you, Ladies and gentlemen, if you like to ask a question at this time, you're willing to press the startar do one key on your touch.

Speaker 11: Again if be like, as a question, Please as far, want to ask aquestion.

Speaker 11: I M showing up questions at.

Speaker 12: I want to think.

Speaker 11: All of you who dialed in to listen to our call.

Speaker 1: We'll be reporting on the first.

Speaker 11: Qu results in just a few.

Speaker 11: So look forward to providing another update on our.

Speaker 2: Ladies and gentlemen, that does some kind conferenciple today. Thank you for your participation. You may nowne.

Chia-Lin Simmons: -- and integrate artificial intelligence and machine learning and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 3: File additional patents and further extend our technology stack, as well as develop and integrate artificial intelligence and machine learning.

Speaker 1: And expand our distribution through government health care and direct-to-consumer channels.

Speaker 1: While we were able to accomplish a col deal last year with a small team.

Speaker 3: And expand our distribution through government health care and direct-to-consumer channels.

Speaker 1: Our strategy also requires us to put on new talent.

Speaker 3: While we were able to accomplish a great deal last year with a small team, our new strategy also requires us to BR on new talent.

Speaker 1: We've announced a number of important key hires in the first quarter to help us execute our plans.

Speaker 2: First I'm thrilled that we've added two key executives and two new Board members.

Speaker 3: We've announced a number of important key hires in the first quarter to help us execute our plans.

Speaker 1: All have a very diverse set of personal and professional skills.

Speaker 3: First I'm filled that we've added two key executives and two new Board members.

Speaker 1: Mark Archer has joroed his full time as our CFO after suming in an advisory capacity last year.

Speaker 3: All have a very diverse set of personal and professional skills.

Speaker 1: You brings a significant experience helping small companies transform intohibig geronesths.

Speaker 3: Mark Archer has joined us full time as our CFO after serriving in an advisory capacity last year.

Speaker 1: You'll be focusing on strengthening our financial and reporting controls.

Speaker 3: He brings a significant experience helping small companies transform into bigger months.

Speaker 3: asstessing financial options in helping us valuate moure and acquisition opportunities.

Speaker 3: You'll be focusing on strengthening our financial and reporting controls, assessing financial options in helping us with valuate moure and acquisition opportunities.

Speaker 2: That fails's address has also joined us. Vp of engineering to lead the charge in new product development.

Speaker 2: He team is invenure on various patents in Geospatial mobile analytics, blockchain and connected carard technologies.

Speaker 3: That fao's address has also joined us as vpu of engineering, to lead the charge in new product development.

Speaker 3: He has teemed as invenure on various patents in Geospatial mobile analytics, blockchain and connected carard technologies.

Speaker 1: His knowledge of crowd-based connected IoT systems. aiim machine learning is a natural fit for the path reenvision for logic market.

Speaker 3: His knowledge of crowd-based connected IoT systems. aiim machine learning is a natural fit for the path reenvision for logic Mark.

Speaker 2: Chi tourist. Our new Board number brings strong abilities in change management, consumer marketing and strategy.

Speaker 4: Chi tourist. Our new Board number brings strong abilities in change management, consumer marketing and strategy.

Speaker 1: She currently serves as a Chief Marketing Officer of circle.

Speaker 3: The global financial technology firm.

Speaker 3: Companies that she has worked for include Google miccommodian, Meta and devallic consulting.

Speaker 3: She currently serves as a Chief Marketing Officer of circle, a global financial technology firm.

Speaker 1: She is also an independent member of the Board. I advanced auto parts.

Speaker 3: Companies that shareshas worked for include Google nickelodeon, Meta and deloid consulting.

Speaker 3: A publicly trateded company with a macket tabitalization of over twelve billion.

Speaker 3: She is also an independent member of the board at advanced auto parts, a propag trateded company with a market titalization of over twelve billion.

Speaker 1: chis also serves on the visice repard of several nonprofit organizations.

Speaker 2: John pedaddick has also joined a log Board.

Speaker 3: chis also serves on aadvisue Board of several nonprofit organizations. John padck has also joined the logic Board.

Speaker 3: He currently looks equable as a technology leader for a multi-product team.

Speaker 1: You brings with temimnearly 40 years of experience in e-commerce and content distribution and protection.

Speaker 3: He currently looks eable as a technology leader for a multiproduct team.

Speaker 3: You brings with tem nearly 40 years of experience in e-commerce and content distribution and protection, including multiple foundational technology patternents.

Speaker 3: Including multiple foundational technology plans.

Speaker 1: He is a successful technology foundner with four exit underies bolt.

Speaker 3: two poss on the NASA of co-offounder and ctto of soffware ontennet and cyerssource.

Speaker 3: He is a successful technology foundard with four exits under his bolttwo IPOs on the nasdq as Co-Founder and ctto of software net and CyberSource, and two exits to major companies, the most recent of which was to Google.

Speaker 1: And two exit two major companies, the most recent of which was to Google.

Speaker 1: Should recent John bring fresh entrepreneurial ex perspectives to logic, not given their started experience?

Speaker 3: And the publicperate company experience is also invaluable as the understandthe of our various stakeholders.

Speaker 3: shecent John , bring fresh entrepreneurial perspectives to logic Mark, given their startup experienceand the public. Company experience is also invaluable, as the understanding of our various stakeholders having the right talent positions us for the future as we look to change the trajectory of our position in the care economy.

Speaker 4: Having the right talent positions us for the future as we look to change the trajectory of our position in the care economy.

Speaker 3: Talent is key and I'm thrilled that we have been able to attrack executives at these capiber.

Speaker 2: Have you know, roketmke has been doing business with the V? A for 11 years.

Speaker 3: Talent is key and i'munthrilled that we have been able to track executives of these capiber.

Speaker 1: And with our approval last year, as GSA vender.

Speaker 3: As you know, log of Mark has been doing business with the VA for 11 years and with our approval last year as GSA vendor, we believe that our existing government business is the best place to start with the redoubling of efforts to increase sales.

Speaker 1: We believe that our existing government business is the best place to start.

Speaker 3: But the redoubling of efforts that increase sales.

Speaker 3: This includes federal, state and local agencies.

Speaker 3: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products.

Speaker 3: This includes federal, state and local agencies.

Speaker 3: And further expand our team.

Speaker 3: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products and further expand our team.

Speaker 2: In facts, increased sales efforts are already underway.

Speaker 3: Larger part, offers affordable health plication-s ofvices that keep over half million people safe every day.

Speaker 3: In fact, increased sales efforts have already underway.

Speaker 3: Logic Mark offers affordable health plications of vices that keep over half million people safe every day.

Speaker 3: Se lect capability to supply the VA system.

Speaker 3: And the broader government gives us confidence that we can enter larger markets.

Speaker 4: So our capability to supply the VA system and the broader government gives us confidence that we can enter larger markets.

Speaker 3: In this respect.

Speaker 3: We also plan to sell to a health care interct, the consumer channel.

Speaker 1: By the end of the first half of 2022, we anticipate matching an e-commerce platform.

Speaker 4: In this respect, we also plan to sell through a health care and direct the consumer channel. By the end of the first half of 2022, we anticipate matching an e-commerce platform.

Speaker 3: The types products we are developing include both at-home and onnigo solutions, including our first asline application.

Speaker 4: The types of products we are developing include both at-home and onigo solutions, including our first outite application.

Speaker 1: Older generations have become more are comfortable with digital age.

Speaker 3: It's 61% owning a smart.

Speaker 3: According to a 2021 pw research study.

Speaker 4: Older generations have become we are comfortable with digital age.

Speaker 2: This leades a path, pathway for our RD group to introduce solutions powered by dav-to-art artificial intelligence.

Speaker 4: 61% owning a smartdownone, according to a 2021 pu rearch study.

Speaker 4: He creates a pathpathway for our RD group to introduce solutions powered by davvis-to-art artificial intelligence, machine learning and IoT capabilities.

Speaker 3: Machine learning and I OT capabilities.

Speaker 2: I've talked about an expanded team at LogicMark to help lead our efforts.

Speaker 3: External partnerships are also important.

Speaker 2: In fact, we are in discussions with other like-minded partners to help us expand our product offerings and customer reach.

Speaker 4: I talked about an expanded team at LogicMark to help leave our effort.

Speaker 4: External partnerships are also important. In fact, we are in discussions with other large-minded partners to help us expand our product offerings and customer reach.

Speaker 1: We cannot adding monitor services to our offerings as we diversify our product portfolio and look to provide a richer consumer experience.

Speaker 4: We cannot adding mouditor services to our offerings as we diversify our product portfolio and look to provide a richer consumer experience.

Speaker 1: Today subscriptions have become more commonplace, which gives us the opportunity to provide more data and connected services to keep consumers safe.

Speaker 4: Today subscriptions have become more commonplace, which gives us the opportunity to provide more data and connected services to keep consumers safe.

Speaker 1: We expect to share more information in regarding partnership agreements.

Speaker 2: As you know, all companies are facing supply chain challenges.

Speaker 4: We expect to share more information in regarding partnership agreements.

Speaker 1: From the latest spike and covert cases.

Speaker 4: As you know, all companies are facing supply chain challenges.

Speaker 3: To the war in Ukraine.

Speaker 1: Our suppliers and manufacturers are dealing with continuous disruption.

Speaker 3: From the latest spike in cot cases to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 2: Luckily, we believe, the logic market is nimble enough to deal with most of the stresses on our supply chain.

Speaker 1: And course colrect with little perception.

Speaker 3: Luckily, we believe the logic market is nimble enough to deal with most of the stresses on our supply chain and course correct with little interception.

Speaker 1: However.

Speaker 1: We expect these factors to have an impact on the typ of our products in OM.

Speaker 1: As well as the cost of doing business.

Speaker 3: However we expect these factors to have an impact on the price of our products in our backplace, as well as the cost of doing business.

Speaker 1: We will always endeavor to offer solutions at failing price.

Speaker 3: To meet them needs for for our customers.

Speaker 3: We will always endeavor to offer solutions at varying price point to meet the needs of our customers.

Speaker 4: I'll now pause an as meclarcheric to discuss our fourth quarter and year-end financial results.

Speaker 3: And then I'll return to provide some closing remarks.

Speaker 3: I'll now pause and ask meclarcher to discuss our fourth quarter and year-end financial results, and then I'll return to provide some closing remarks.

Speaker 4: Thank you, cheyin. Let me begin by discussing results for the fourth quarter ended December thirty-first.

Speaker 2: Thank you, cheywwin. Let me begin by discussing results for the fourth quarter ended December thirty-first.

Speaker 3: 2021.

Speaker 5: Revenue was two point four million, a decrease of 6% from the fourth quarter of last year.

Speaker 2: 2021 revenue was two point four million, a decrease of 6% from the fourth quarter of last year, but up 1%.

Speaker 5: But up 1%.

Speaker 5: From this year's third quarter.

Speaker 5: We experienced 5% to 6% year-over-year growth in sales in October and November of 2021, but sales were soft in December 2021 as COVID-19 began to peak again.

Speaker 2: From this year's third quarter.

Speaker 2: We experienced 5% to 6% year-over-year growth in sales in October and November of 2021.

Speaker 2: But sales were soft in December 2021, as COVID-19 began to peak again.

Speaker 2: Gross profit for the quarter was $1 million.

Speaker 5: A decrease of $1 thousand compared with the same quarter last year.

Speaker 2: Gross profit for the quarter was $1 million.

Speaker 5: Gross margin was 43%.

Speaker 2: A decrease of $1 thousand compared with the same quarter last year.

Speaker 5: Compared to 46% in the same quarter last year.

Speaker 2: Gross margin was 43%.

Speaker 5: The reduction in gross margin was due to a mix shift toward our costlier Guardian alert 9, 11 -plus four G unit.

Speaker 2: Compared to 46% in the same quarter last year.

Speaker 2: The reduction in gross margin was due to a mix shift toward our costlier Guardian alert 9, 11 plus four G unit.

Speaker 6: Operating expenses were seven point one million, compared to two point two million in the same quarter last year.

Speaker 2: Operating expenses were seven point one million, compared to two point two million in the same quarter last year.

Speaker 5: Expenses in the fourth quarter of 2021 included a four and a half million dollar noncash goodwill impairment charge.

Speaker 2: Expenses in the fourth quarter of 2021 included a four and a half million dollar noncash goodwill impairment charge.

Speaker 5: Adjusting for this expense, operating expenses would have been two point six million, an increase of four thousand or 18% over the fourth quarter of last year.

Speaker 2: Adjusting for this expense, operating expenses would have been two point six million, an increase of four thousand or 18% over the fourth quarter of last year.

Speaker 5: In addition, let me note that noncash stock compensation expense.

Speaker 5: In last year's fourth quarter was five thousand higher than in the fourth quarter of 2020.

Speaker 2: In addition, let me note that noncash stock compensation expense.

Speaker 2: In last year's fourth quarter was five thousand higher than in the fourth quarter of 2020.

Speaker 6: Operating loss was six point one million, versus an operating loss in the prior year's fourth quarter of a million dollars.

Speaker 2: Operating loss was six point one million, versus an operating loss in the prior year's fourth quarter of a million dollars.

Speaker 5: Adjusting for the goodwill impairment charge, operating loss would have been one point six million.

Speaker 2: Adjusting for the goodwill impairment charge, operating loss would have been one point six million.

Speaker 5: Or $6 thousand higher.

Speaker 5: In the prior year's fourth quarter.

Speaker 6: And net loss for the quarter was six point three million, compared to a net loss of one point six million in the same quarter last year.

Speaker 2: Or $6 thousand higher than the prior year's fourth quarter.

Speaker 2: And net loss for the quarter was six point three million, compared to a net loss of one point six million in the same quarter last year.

Speaker 5: Once more adjusting for the goodwill impairment charge, net loss for the quarter would have been one point eight million, or $3 thousand higher than the same quarter last year.

Speaker 2: Once more adjusting for the goodwill impairment charge, net loss for the quarter would have been one point eight million or $3 thousand higher than the same quarter last yearat quarter-end.

Speaker 6: A quarter end.

Speaker 5: The company had $12 million in unrestricted cash.

Speaker 7: Now let me talk about that full year 2021 results.

Speaker 2: The company had $12 million in unrestricted cash.

Speaker 5: Revenue for the year was ten million.

Speaker 2: Now let me talk about the full year 2021 results.

Speaker 5: A decrease of one point four million, or 12% from the prior year.

Speaker 2: Revenue for the year was ten million.

Speaker 2: Gross profit was five point seven million.

Speaker 2: A decrease of one point four million, or 12% from the prior year.

Speaker 5: A decrease of two million or 26% from the prior year.

Speaker 2: Gross profit was five point seven million.

Speaker 2: Gross margin declined from 67% to 57% due to an increase in inventory reserves.

Speaker 2: A decrease of two million or 26% from the prior year.

Speaker 2: Gross margin declined from 67% to 57% due to an increase in inventory reserves.

Speaker 5: And the upgrade of our three G Guardian alert 9, 11 plus.

Speaker 3: To a four G product.

Speaker 2: And the upgrade of our three G Guardian alert nine 11 plus to a four G product.

Speaker 6: Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher four G manufacturing costs.

Speaker 2: Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher four G manufacturing costs.

Speaker 2: Operating expenses were 13.2 million.

Speaker 2: Up.

Speaker 2: Operating expenses were 13.2 million up.

Speaker 6: five million or 60%.

Speaker 3: From the prior year, adjusting for the goodwill impairment charge, operating expenses would have been up four thousand or 5%.

Speaker 2: five million or 60%.

Speaker 2: From the prior year, adjusting for the goodwill impairment charge, operating expenses would have been up four thousand or 5%.

Speaker 6: Operating loss was seven and a half million, compared to an operating loss of six thousand last year.

Speaker 2: Operating loss was seven and a half million, compared to an operating loss of six thousand last year.

Speaker 6: And net loss for the year was 11.7 million, or $2 in 23 cents per share.

Speaker 2: And net loss for the year was 11.7 million, or $2 in 23 cents per share.

Speaker 6: Compared to a net loss of three point seven million, or a dollar 14 per share for the prior year.

Speaker 2: Compared to a net loss of three point seven million, or a dollar 14 per share for the prior year.

Speaker 3: These per share numbers have been adjusted for the company's October 2021 reverse stock split.

Speaker 2: Any per share numbers have been adjusted for the company's October 2021 reverse stock split.

Speaker 7: In the net loss of 11.7 million for 2021, there are $1 million of noncash charges.

Speaker 2: In the net loss of 11.7 million for 2021.

Speaker 6: Including the goodwill impairment warrant modification expense.

Speaker 2: There are $1 million of noncash charges.

Speaker 5: Stock compensation expense.

Speaker 2: Including the goodwill impairment warrant modification expense.

Speaker 3: And depreciation and amortization.

Speaker 5: This is up from one point six million in comparable noncash charges in 2020.

Speaker 2: Stock compensation, expense and depreciation and amortization.

Speaker 2: This is up from one point six million in comparable noncash charges in 2020.

Speaker 4: Let me make a couple of final points before I turn the call back over to shyn.

Speaker 2: Let me make a couple final points before I turn the call back over to shyin.

Speaker 6: On March thirty-first, the judge presiding over the litigation concerning the sale of fit Bay, our former fintech subsidiary, ruled favorably on our motion for summary judgment and dismissed the case.

Speaker 2: On March thirty-first, the judge presiding over the litigation concerning the sale of fit Bay, our former fintech subsidiary.

Speaker 3: This was the company's final open piece of litigation.

Speaker 2: Ruled favorably on our motion for summary judgment and dismissed the case.

Speaker 4: And finally.

Speaker 2: This was the company's final open piece of litigation and finally.

Speaker 5: The last nine months that I've been with the company have been challenging to save the least as we cleaned up the administrative side of the business.

Speaker 2: The last nine months that I've been with the company have been challenging, to sayve the least, as we cleaned up the administrative side of the business.

Speaker 3: And put the appropriate infrastructure in place to support rapid growth.

Speaker 8: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales.

Speaker 2: And put the appropriate infrastructure in place to support rapid growth.

Speaker 2: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales and profitability.

Speaker 6: And profitability.

Speaker 5: chand.

Speaker 1: Thanks Mark.

Speaker 1: As you wrap up the call, I'm going to leave you with a couple of two thoughts.

Speaker 2: Tr.

Speaker 1: Our plans are ambitious.

Speaker 2: Thanks Mark.

Speaker 1: But with the right team and bright products, we expect to establish logic Mark as a leading brand in a health communications market and care economy.

Speaker 3: As we wrap up the call, I want to leave you with a couple of key thoughts. Our plans are ambitious.

Speaker 3: But with the right team and right products, we expect to establish logic Mark as a leading bround in a health communications market and care economy.

Speaker 1: Research indicates that there is certainly enough demand for innovative produadx and solutions that are supported with stellar customer service.

Speaker 3: Research indicates that there is certainly enough demand for innovative products and solutions that are supported with stellar customer service.

Speaker 9: We believe the largest mti's ability to capture more of the carea economy market.

Speaker 1: Comm it. andmother who wishes to age in place in our home to beloved military vegain who may need some extra help.

Speaker 3: We believe the largest market has the ability to capture a more of the CA economy market. Comm commit grandmother who wishes to age in place in our home, to the loved military beggrain who may need some extra help, or the student who needs and seek additional security.

Speaker 6: What the student reads.

Speaker 1: And seeks traditional security.

Speaker 6: At this time. I will open the call to question.

Speaker 6: Operator.

Speaker 10: Thank you, Ladies and gentlemen, if you have to ask a question at this time, you willing to press the startar do one key on your touch on telephone.

Speaker 3: At this kind. I will open the call to questionions. operatorthank you, Ladies and gentlemen. If you have to us a question at this time, you re willing to brress a startar en do one key on your touched on telephone.

Speaker 4: Again be like to ask a question Please, for us far. Want to ask a question.

Speaker 1: Again if D like to ask a question, Please far want to ask a question.

Speaker 4: And I'm showing up questions at this time.

Speaker 1: And I'm showing up questions at this time.

Speaker 11: I want to thank all of you who dialed in to listen to our call today.

Speaker 1: We'll be reporting on the first quarter results in just a few weeks. So I look forward to providing another update on our progress at that time.

Speaker 3: I want to thank all of you who dialed in to listen to our call today. We'll be reporting on the first quarter results in just a few weeks, So I look forward to providing another update on our progress at that time.

Speaker 6: So I look forward to providing another update on our progress at that time.

Speaker 4: Ladies and gentlemen, that does some con conference for today. Thank you for your participation. You may now disconnect.

Speaker 5: Ladies and gentlemen, that does con have con conference for today. Thank you for your participation. You may now disconnect.

Speaker 4: The.

Speaker 6: The C.

Speaker 6: The F.

Speaker 6: The.

Speaker 4: My.

Speaker 6: I.

Speaker 4: Two.

Speaker 4: Good day, Ladies and gentlemen. Thank you for standing by and welcome to the logic Mark. Fourth quarter and full year and 2021 financial and corporate update conference. Call at this time all participants on a listen only mode. After this speg's presentation, there will be a question-and-answer session. Does a question during the session you will need to addressress the start one key on your touchdown telephone.

Speaker 5: Good day, Ladies and gentlemen. Thank you for sending by and welcome to the logic Mark. Fourth quarter and full year and 2021 financial and corporate update conference. Call at this time allll participants on a listen only mode. After this biggests presentation, there will be a question-and-answer session. Does a question during the session you will need to addressress start under one key on your touch on telephone.

Speaker 12: If we will call oper assistance anytime. Please breress, STAR and zero. I would now like to turn the conference over with years. We go today. jilles abraham from core IR. Please go ahead.

Speaker 1: If we will call operations istsince anytime. Please breress, STAR and zero. I would now like to turn the conferenceover to you. speakgo today, Jill abraham from core IR. Please go ahead.

Speaker 5: Thank you very much. An operator. Good day everyone and thank you for participating with today's conference call. Joining me from logic Mark' leadership team, our shyland Simmons, Chief Executive Officer, and Mark Archer, Chief Financial art Officer.

Speaker 7: Thank you very much, operator. Good day everyone and thank you for participating with today's conference call. Joining me from logic Mark leadership team, our shyland Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer.

Speaker 5: During this call, management will be making forward-looking statements, including statements that address logic marks's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

Speaker 7: During this call, management will be making forward-looking statements, including statements and address logic marks's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

Speaker 5: For more information about these risks Please refer to the risk factors described in logic Mark's most recently filed annual report on 2010 -k and subsequent periodic reports filed with the SEC and logic Mark's press release that accompany with this call. Particularly the cautionary statements within.

Speaker 7: For more information about these risks Please refer to the risk factors described in logic marks. Most recently filed annual report on 2010 -k and subsequent periodic reports filed with the SEC and logic Mark's press release that accompany this call. Particularly the cautionary statements within.

Speaker 5: The contents of this call contains time-sensitive information that is accuring only as of today, April nineteenth 2022. that, except as required by law, logic Mark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur out to this call.

Speaker 7: The contents of this call contains time-sensitive information that is accuring only as of today, April nineteenth 2022. that, except as required by law, logic Mark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur out to this call.

Speaker 5: It's now my pleasure to turn the call over to the company's CEO China and simmonth China.

Speaker 7: It's now my pleasure to turn the call over to the company's CEO China simmonth, China.

Speaker 1: Thank you, jewels. This is our first earnings call under our new name, logic Mark, So welcome everyone and thanks for joining us.

Speaker 3: Thank you, jewels. This is our first earnings call under our new name, logic Mark, So welcome everyone and thanks for joining us.

Speaker 6: Today I would like to take the opportunity to close the books on 2021 and open a new chapter for our company. As you know from our filing with the SEC, we did have to postpone this call previously, as our auditors have not completed the review of the financial statements in 10 -k.

Speaker 3: Today I would like to take the opportunity to close the books on 2021 and open a new chapter for our company. As you know from our filing with the SEC, we did have to postpone this call previously, as our auditors have not completed the review of the financial statements in 10 -k.

Speaker 9: It is a privilegeed to AP and appointed margin like ceeo and a member of the Board last year.

Speaker 6: My mandate was the cleanhouse we built our company and reposition it with new products to enter new markets, to serve the care economy.

Speaker 3: It is a privilege to have an appointed margin Mark CEO and a numberber of the Bo last year.

Speaker 3: My bandate was to cleanhouse. We build our company and reposition it with new products to enter new markets, to serve the care economy.

Speaker 9: After just a few weeks in a rowle, it became apparent that certain items need Ed our immediate attention.

Speaker 2: First given that we are publicly trated company, there are governance and listing standards that we were required to follow.

Speaker 3: After just a few weeks in a row, it became apparent that certain items needed our immediate attention.

Speaker 3: First given that we are publicly trated to company, there are governance and listing standards that we were required to follow.

Speaker 9: one of the listists to the minimum the share price that must be maintained on NASDAQ.

Speaker 9: Will we undlisttoed?

Speaker 9: After our share price felt ode the required level, our Board <expletive> shareholders could prove reverse backxplits of our common and seriricc preferred classes.

Speaker 3: one of the listks to the minimum share price that must be maintained on NASDAQ will be alllisted.

Speaker 3: After our share price felt below the required level, our Board <expletive> shareholders could approve reverse stock splits of our common and serwec preferred classeseuro shareholders approve these splits.

Speaker 9: Newer shareholders approve these SPTS.

Speaker 6: The outreach program that we conducted to thirobteen approval was time-consuming. thebelow was the time.

Speaker 9: itwas important for logic Mark have sufficient access to the capital markets to help support future growth.

Speaker 3: The outreach program that we conducted to obtainam approval was time-consuming. The below was the time.

Speaker 1: Which I will speak to in a moment.

Speaker 3: Was important for logic markt: sufficient access to the capital markets to help support future growth, which I will speak to in a moment. Second, we four requirements for raising new capital in light of our future plans and thought that the demand was there, So we issued new equity to help provide runway for our future growth. We also focus on ensuring that existing debts were paing full.

Chia-Lin Simmons: Second, we assessed our requirements for raising new capital in light of our future plans and saw that the demand was there. So we issued new equity to help provide runway for our future growth.

Speaker 6: And thought of the demand was there. So we issue new equity to help provide runway for our future growth.

Speaker 9: So we issue new equity to help provide runway for our future growth.

Chia-Lin Simmons:  We also focus on ensuring that existing debts were paid in full.

Chia-Lin Simmons: Mark will talk more about the numbers in a moment.

Speaker 6: Mike will talk more about the numbers in a momentth.

Chia-Lin Simmons: Operationally, we observed the corporate infrastructure was not in place to support our future plans.

Speaker 2: Michael micha will talk more about the numbers in a moment.

Chia-Lin Simmons: As a result, we began outlining what skills were needed by LogicMark to rebuild our team and the hiring process began. We will also continue to assess our policies and procedures as well as evaluate our supply chain to ensure that we are well positioned going forward.

Speaker 3: Operationally, we observed the corporate infrastructure was not in place to support our future plans.

Speaker 3: As a result, we began outlining with. Skills were needed, by logic, mariket- to rebuild our team and the hiring passes began.

Speaker 1: We will also continue to assess our policies and procedures.

Speaker 1: As well as evaluate our supply chain to ensure that we are well positioned going forward.

Speaker 3: We will also continue to assess our policies and procedures, as well as evaluate our supply chain, to ensure that we are well positioned going forward.

Chia-Lin Simmons: On the new business front, we identified an opportunity to expand our core government business by applying for a U.S. General Services Administration or GSA contract.

Speaker 3: On the new business frundt. We identified an opportunity to expand our core government business by applying for U's general services administration, or GSA, contract.

Speaker 1: What's G's a contract.

Chia-Lin Simmons: The GSA is the federal government's purchasing agent and it is a long and difficult process to obtain these contracts and we consider it an accomplishment in and of itself.

Speaker 9: And it is a long and difficult process to obtain these contracts.

Speaker 3: The GSA is the federal government's purchasing agent, and it is a long and difficult process to obtain these contracts, and we consider it an accomplishment in and of itself.

Speaker 9: And we consider it an accomplishment in it of itself.

Chia-Lin Simmons: While our products have been available to veterans through the Veterans Health Administration, this new contract extends our reach to more government buyers which allows us to supply our products and services to more federal agencies, states and state municipalities so that we can serve more people. We anticipate this will boost government revenues.

Speaker 1: This new contract extends our reach to more government buyers, which allows us to supply our potics and services.

Speaker 3: While our products have been available to veterans to the Veterans health administration, this new contract extends our reach to more government buyers, which allows us to supply our products and services to more federal agencies, States and statement municipalities, So that we can serve more people.

Speaker 9: To more federal agencies, States and state municipalities So that we can serve more people.

Speaker 9: We anticipate this will boost government revenues.

Chia-Lin Simmons: We value our record of strong service. With expected phaseout of the 3G network by carriers during 2022, we began preparing our customers for the transition during the fourth quarter last year. The shutdown of the 3G network has been referred to as the 3G sunsetting.

Speaker 3: We anticipate this will boost government revenues. We value our record of strong service.

Speaker 9: With the expected phase out of the three G network by carriers during 2022. We began preparing our customers for the transition during the fourth quarter last year.

Speaker 3: With the expected phase out of the three G network by carriers during 2022. We began preparing our customers for the transition during the fourth quarter last year.

Speaker 9: The shutdown of the 3G network has been referred to as the 3G sunsetting.

Chia-Lin Simmons: We partnered with the Department of Veterans Affairs to create an outreach plan to put veterans first, notifying those that had an affected device. Specifically, our program involved a number of activities, including direct mail, this included mailing letters and postcards to veterans who may be affected to help them understand 3G sunsetting and what to do to replace their units.

Speaker 3: The shutdown of the three G network has been refer to as the three G sunsetting.

Speaker 1: notifying those that had an effected device.

Speaker 3: We partner with the Department of Veterans Affairs to decreate an outreach plan to put veterans first, notifying those that had an effected device.

Speaker 6: Specifically our program involved a number of activities, including direct mail. This included mailing letters and postcards the veterans who may be affected, to help them understand the redg sun setting and what to do to replace their units.

Speaker 3: Specifically our program involved a number of activities, including direct mail. This included mailing letters and postcard to veterans who may be affected to help them understand three G Sun setting and what to do to replace their units.

Chia-Lin Simmons: Customer support. We created a dedicated phone line and a dedicated team of customer support representatives help our veterans with replacement and setup of 4 new 4G units.

Speaker 9: We created a dedicated film mine and a dedicated team of customer support representatives helped our- our veterans, with replacement and set up of four new four G units.

Speaker 3: Customer support. We created a dedicated film mine and a dedicated team of customer support representatives helped our veterans ri replacement and set up of four new four G units.

Chia-Lin Simmons: Media outreach. Our team spoke with numerous news media organizations to secure educational 3G sunsetting coverage. You may have seen my quote in the Senior Planet article published by the AARP where our educational feature article that ran in over 750 media outlets and direct to veteran education programs which included a 3G sunsetting resource center, FAQs, and an instructional video on how to check current LogicMark devices.

Speaker 9: Our team spoke with numerous news media organizations to secure educational three D sunsetting coverage.

Speaker 3: Media outreach. Our team spoke with numerous news media organizations to secure educational three G sunsetting coverage. You may up see my quote in a senior planet article published by the aerp, while educational fature article dvan on over 750 media outlets.

Speaker 1: You may have seen my quote in a senior planet article published by the AP.

Speaker 1: While educational fature article there beenan in over 750 media outlets.

Speaker 6: And direct veteran education progr.

Speaker 9: Which included a three G sunsetting resource center.

Speaker 9: Our thank use for an instructional video on how to check current logjectic Mark devices.

Speaker 3: And direct-to veteran education programs, which included a three G sunsetting resource center. ffaq, an net instructional video on how to check current logic rect devices.

Chia-Lin Simmons: We began the arduous process to refocus the company last year, so that we can start 2022 with as much of a clean state as possible. We began to put together the team, products and capital structure for the company to enable us to get on the right path for growth in 2022. The LogicMark management team and our Board of Directors are committed to rebuilding our business.

Speaker 6: To refocus the company last year so that we we can start 2020 -two.

Speaker 3: We began the ardurous process to refocus the company last year so that we reconstart 2022, But as much of a clean state as possible.

Speaker 6: But as much of a clean state as possible.

Speaker 9: We began to put together between products and capital structure for the company, to enable us to get on the right path.

Speaker 3: We began to put together the between products and capital structure for the company to enable us to get on the right path of the growth in 2020. -two and.

Speaker 1: In 2020 two.

Speaker 6: The laric book management teams and our Board of Directors are committed to rebuilding our business.

Chia-Lin Simmons: That leads me to what we have planned for 2022. This year is all about developing new products and entering new markets to serve the dynamic and growing care economy. 

Speaker 3: The largest book management team and our Board of Directors are committed to rebuilding our business.

Speaker 6: This year is all about developing new products and entering new markets to serve the dynamic and growing carecal economy.

Speaker 3: Now me speak to what we have planned for 2022. this year is all about developing new products and entering new markets to serve the dynamic and growing care economy.

Chia-Lin Simmons: Our new Caring Platform as a Service or CPaaS business model will drive our strategy. We plan to expand product offerings for both on-the-go and at-home solutions, continue to build out our established line of PERS devices, will develop a new software that would extend our customer reach, follow additional patents and further extend our technology stack as well as develop and integrate artificial intelligence and machine learning and expand our distribution through government, health care and direct-to-consumer channels.

Speaker 9: We plan to expand product offeringings for both ongo and at-home solutions.

Speaker 3: Our new kid platform as a service or cpass business model will drive our strategy.

Speaker 9: Continue to build out our established line of purse devices. What develop a new software that would extend our customer reach?

Speaker 3: We plan to expand product offerings for both ongo and at-home solutions, continue to build our established line of purse devices. What develop a new software that would extend our customer reach?

Speaker 9: F additional patents and further extend our technology staff.

Speaker 6: As well as develop and integrate artificial intelligence and machine learning.

Speaker 3: F additional patents and further extend our technology stack, as well as develop and integrate artificial intelligence and machine learning.

Speaker 6: And expand our distribution through government health care and direct-to-consumer channels.

Chia-Lin Simmons: While we were able to accomplish a great deal last year with a small team, our new strategy also requires us to bring on new talent. We've announced a number of important key hires in the first quarter to help us execute our plans.

Speaker 3: And expand our distribution through government health care and direct-to-consumer channels.

Speaker 9: Our new strategy also requires us to put on new talent.

Speaker 3: While we were able to accomplish a great deal last year with a small team, our new strategy also requires us to BR on new talent.

Speaker 6: We've announced a number of important key hires in the first quarter to help us execute our plans.

Chia-Lin Simmons: First, I'm thrilled that we've added two key executives and two new Board members, all had a very diverse set of personal and professional skills.

Speaker 3: We've announced a number of important key hires in the first quarter to help us execute our plans.

Speaker 1: All have. Its a a very diverse set of personall and professional skills.

Speaker 3: First I'm filled that we've added two key executives and two new Board members.

Chia-Lin Simmons: Mark Archer has joined full time as our CFO after serving in an advisory capacity last year. He brings significant experience helping small companies transform into bigger ones. He'll be focusing on strengthening our financial and reporting controls, assessing financial options and helping us evaluate merger and acquisition opportunities.

Speaker 3: All have a very diverse set of personal and professional skills.

Speaker 6: You brings a significant experience helping small companies transform into big germons.

Speaker 3: Mark Archer has joroed this full ter as our CFO . After sermving in an advisory capacity last year, you bring a significant experience helping small companies transform into bigger months.

Speaker 6: You'll be focusing on strengthening our financial and reporting controls.

Speaker 9: asstessing financial options in helping us valuate moure and acquisition opportunities.

Speaker 3: You'll be focusing on strengthening our financial and reporting controls, assessing financial options in helping us valuate moure and acquisition opportunities.

Chia-Lin Simmons: Rafael Saavedra has also joined us as VP of Engineering to lead the charge on new product development. He is named as inventor on various patents in geospatial, mobile, analytics, blockchain and connected car technologies.

Speaker 3: That FAS SRE has also joined us as vpu engineering to lead the charge in new product development.

Speaker 4: He team as invenure on various patents in Geospatial mobile analytics, blockchain and connected carard technologies.

Speaker 3: He team is invenure on various patternents and Geospatial mobile analytics, blockchain and connected carard technologies.

Chia-Lin Simmons: His knowledge of cloud-based connected IoT systems, AI and machine learning, is a natural fit for the path we envisioned for LogicMark.

Speaker 3: His knowledge of crowd-based connected bioot systems. aiim machine learning is a natural fit for the path envision for logic Mark.

Chia-Lin Simmons: Sherice Torres, our new Board member, brings strong abilities in change management, consumer marketing and strategy. She currently serves as the Chief Marketing Officer of Circle, a global financial technology firm. 

Speaker 3: chice tourist. Our new Board number brings strong abilities in change management, consumer marketing and strategy.

Speaker 1: She currently serves as a Chief Marketing Officer of circle.

Speaker 9: The global financial technology fironm.

Chia-Lin Simmons: Companies she has worked for include Google, Nickelodeon, Meta and Deloitte Consulting. She is also an independent member of the Board at Advance Auto Parts, a publicly traded company with a market capitalization of over $12 billion. Sherice also serves on advisory board of several nonprofit organizations.

Speaker 3: She currently serres as a Chief Marketing Officer of circle, a global financial technology firm.

Speaker 1: She is also an independent member of the board at advanced auto parts.

Speaker 3: Companies that she has worked for include Google nickelodeon, Meta and deloit consulting.

Speaker 9: A publicly trateded company with a macket tabitalization of over twelve billion.

Speaker 3: She is also an independent member of the board at advanced auto parts, a proply trateded company with a market titalization of over twelve billion.

Speaker 1: chis also serves on the valiceue repard that several nonprofit organizations.

Chia-Lin Simmons: John Pettitt has also joined the LogicMark Board. He currently works at Google as a technology leader for a multiproduct team. He brings with him nearly 40 years of experience in e-commerce and content distribution and protection, including multiple foundational technology patents.

Speaker 3: sheis also serves on a value Board of several nonprofit organizations. John predick has also joined the logic Board.

Speaker 1: He currently looks eclable as a technology leader for a multi-product team.

Speaker 9: You brings with tem nearly 40 years of experience in e-commerce and content distribution and protection.

Speaker 3: He currently looks exeable as a technology leader for multi-clatic teamhe brings with him nearly 40 years of experience in e-commerce and content distribution and protection, including multiple foundational technology patents.

Speaker 9: Including multiple foundational technology plans.

Chia-Lin Simmons: He has a successful technology standard with four exits under his belt; two IPOs on the Nasdaq as Co-Founder and CTO of software.net and CyberSource; and two exits to major companies, the most recent of which was to Google.

Speaker 9: two POS on the nasq, that's co-offounder and ctto of sofware, dotennet and cybererssource.

Speaker 3: He is a successful technology Founder with four exits under his belt: two IPO on nasaq as Co-Founder, and ctto of soffware, tnet and CyberSource, and two exits to major companies, the most recent of which was to Google.

Speaker 1: And two exit two major companies, the most re of which was to Google.

Chia-Lin Simmons: Sherice and John brings fresh entrepreneurial prospectus to LogicMark, given their start-up experience and the public company experience is also invaluable as they understand the needs of our various stakeholders. Having the right talent positions us for the future as we look to change the trajectory of our position in the care economy.

Speaker 9: And the public. Company experience is also invaluable, as they understand the need of our various stakeholders.

Speaker 3: She recent John - bring fresh entrepreneurial perspectives to logic Mark, given their startup experience, and the public. Company experience is also invaluable as the understanding of our various stakeholders. Having the right talent positions us for the future. As we look to change the trajectory of our position in the care economytalent is key and ion the thrilled that we have been able to tract executives at is capi.

Speaker 4: Having the right talent positions us for the future as we look to change the trajectory of our position in the care economy.

Chia-Lin Simmons: Talent is key and I'm thrilled that we have been able to attract executives of this caliber.

Chia-Lin Simmons: As you know, LogicMark has been doing business with the VA for 11 years. And with our approval last year as GSA vendor, we believe that our existing government business is the best place to start with the redoubling of efforts to increase sales. This includes federal, state and local agencies.

Speaker 1: And with our approval last year, as GSA vender.

Speaker 3: As you know, roch Mark has been doing business with the VA for 11 years and, with our approval last year, is GSA vendor. He believe that our existing government business is the best place to start with the redoubling of efforts to increase sales.

Speaker 1: We believe that our existing government business is the best place to start.

Speaker 9: But the redoubling of efforts that increase sales.

Speaker 6: This includes federal, state and local agencies.

Chia-Lin Simmons: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products and further expand our team. In fact, increased sales efforts are already underway.

Speaker 3: This includes federal, state and local agencies.

Speaker 9: And further expand our team.

Speaker 3: Our stellar reputation with the VA should allow us to grow our government business as we introduce new products and further expand our team. In fact, increased sales efforts already underway.

Speaker 9: In facts, increased sales efforts are already underway.

Chia-Lin Simmons: LogicMark offers affordable health communication devices that keep over half a million people safe every day. So our capability to supply the VA system and the broader government gives us confidence that we can enter larger markets.

Speaker 3: Larger part F offers affordable health plications of ices that keep over half million people safe every day.

Speaker 6: Se lect capability to supply the VA system.

Speaker 9: And the broader government gives us confidence that we can enter larger markets.

Speaker 4: So our capability to supply the VA system and the broader government gives us confidence that we can enter larger markets.

Chia-Lin Simmons: In this respect, we also plan to sell through health care and direct-to-consumer channels. By the end of the first half of 2022, we anticipate launching an e-commerce platform.

Speaker 9: We also plan to seve to the health care and product the consumer channel.

Speaker 6: By the end of the first half of 2022. We anticipate machin and e-commerce platform.

Speaker 3: In this respect. We also plan to seve through the health care and interduct the consumer channel. By the end of the first half of 2022, we anticipate matching an e-commerce platform.

Chia-Lin Simmons: The types of products we are developing include both at-home and on-the-go solutions, including our first software application.

Speaker 3: The types of products we are developing include both at-home and onigo solutions, including our first asline application.

Chia-Lin Simmons: Older generations have become more comfortable with digital age, with 61% owning a smartphone according to a 2021 Pew Research study. This creates a pathway for our R&D group to introduce solutions powered by state-of-the-art artificial intelligence, machine learning and IoT capabilities.

Speaker 9: It's 61% owning a smart.

Speaker 4: Older generations of thebecome Y are comfortable with digital age. 61% owninginess smdown according to a 2000 and twenty-one-p recent study.

Speaker 9: According to a 2021 P recentarch study.

Speaker 1: This creates a path, pathway for our IM group to introduce solutions powered by davof-to-art artificial intelligence.

Speaker 4: This creates a path pathway for our RD group to introduce solutions powered by dava-to-art artificial intelligence, machine learning and IoT capabilities.

Speaker 9: Machine learning and I OT capabilities.

Chia-Lin Simmons: I've talked about an expanded team at LogicMark to help lead our efforts. External partnerships are also important. In fact, we are in discussions with other like-minded partners to help us expand our product offerings and customer reach.

Speaker 9: External partnerships are also important.

Speaker 3: I've talked about an expanded team at LogicMark to help lead our efforts. External partnerships are also important. In fact, we are in discussions with other large-minded partners to help us expand our product offerings and customer reach.

Speaker 6: In fact, we are in discussions with other life-minded partners to help us expand our product offerings and customer reach.

Chia-Lin Simmons: We plan on adding monitor services to our offerings as we diversify our product portfolio and look to provide a richer consumer experience. Today, subscriptions have become more commonplace, which gives us the opportunity to provide more data and connected services to keep consumers safe.

Speaker 4: We cannot adding moitor services to our offerings as we diversify our product portfolio and look to provide a richer consumer experience.

Speaker 6: Today subscriptions have become more commonplace, which gives us the opportunity to provide more data and connected services to keep consumers safe.

Speaker 3: Today subscriptions have become more commonplace, which gives us the opportunity to provide more data and connected services to keep consumers safe.

Chia-Lin Simmons: We expect to share more information soon regarding partnership agreement.

Chia-Lin Simmons: As you know, all companies are facing supply chain challenges from the latest spike in COVID cases to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 3: We expect to share more information in regarding partnership agreements.

Speaker 9: From the latest spike and covert cases.

Speaker 4: As you know, all companies are facing supply chain challenges.

Speaker 9: To the war in Ukraine.

Speaker 9: Our suppliers and manufacturers are dealing with continuous disruptions.

Speaker 3: From the latest spike in coa cases to the war in Ukraine, our suppliers and manufacturers are dealing with continuous disruptions.

Chia-Lin Simmons: Luckily, we believe that LogicMark is nimble enough to deal with most of the stresses on our supply chain and course correct with little disruption.

Speaker 4: And post colrect with little perception.

Speaker 3: Luckily, we believe the logic market is nimble enough to deal with most of the stresses on our supply chain and coursest correct with little interseion.

Chia-Lin Simmons: However, we expect these factors to have an impact on the price of our products in our marketplace as well as the cost of doing business. We will always endeavor to offer solutions at varying price point to meet the needs of our customers.

Speaker 9: We expect these factors to have an impact on the price of AP productics conomic.

Speaker 9: As well as the cost of doing business.

Speaker 3: However we expect these factors to have an impact on the types of our products in our back place, as well as the cost of doing business.

Speaker 9: We will always endeavor to offer solutions at failing price.

Speaker 1: To meet them needs for our, our customers.

Chia-Lin Simmons: I'll now pause and ask Mark Archer to discuss our fourth quarter and year-end financial results. And then I'll return to provide some closing remarks. 

Speaker 4: We will always endeavor to offer solutions at varying price point to meet the needs for our customers.

Speaker 4: I'll now pause and ask myclarcher to discuss our fourth quarter and year-end financial results, and then I'll return to provide some closing remarks.

Speaker 9: And then I'll return to provide some closing remarks.

Mark J. Archer: Thank you, Chia-Lin. Let me begin by discussing results for the fourth quarter ended December 31, 2021.

Speaker 7: Thank you, cheywin. Let me begin by discussing results for the fourth quarter ended December thirty-first.

Speaker 3: 2021.

Mark J. Archer: Revenue was $2.4 million, a decrease of 6% from the fourth quarter of last year, but up 1% from this year's third quarter.

Speaker 7: 2021 revenue was two point four million, a decrease of 6% from the fourth quarter of last year.

Speaker 13: But up 1%.

Speaker 3: From this year's third quarter.

Mark J. Archer: We experienced 5% to 6% year-over-year growth in sales in October and November of 2021, but sales were soft in December 2021 as COVID-19 began to peak again.

Speaker 7: But up 1% from this year's third quarter.

Speaker 7: We experienced 5% to 6% year-over-year growth in sales in October and November of 2021.

Speaker 7: But sales were soft in December 2021, as COVID-19 began to peak again.

Mark J. Archer: Gross profit for the quarter was $1 million, a decrease of $100,000 compared with the same quarter last year. Gross margin was 43% compared to 46% in the same quarter last year.

Speaker 3: A decrease of $1 thousand compared with the same quarter last year.

Speaker 7: Gross profit for the quarter was $1 million.

Speaker 3: Gross margin was 43%.

Speaker 7: A decrease of $1 thousand compared with the same quarter last year. Gross margin was 43 percentand.

Speaker 3: Compared to 46% in the same quarter last year.

Mark J. Archer: The reduction in gross margin was due to a mix shift toward our costlier Guardian Alert 911 Plus 4G unit.

Speaker 7: Compared to 46% in the same quarter last year.

Speaker 7: The reduction in gross margin was due to a mix shift toward our costlier Guardian alert 9, 11 plus four G unit.

Mark J. Archer: Operating expenses were $7.1 million compared to $2.2 million in the same quarter last year. Expenses in the fourth quarter of 2021 included a $4.5 million non-cash goodwill impairment charge.

Speaker 7: Operating expenses were seven point one million, compared to two point two million in the same quarter last year.

Speaker 3: Expenses in the fourth quarter of 2021 included a four and a half million dollar noncash goodwill impairment charge.

Speaker 7: Expenses in the fourth quarter of 2021 included a four and a half million dollar noncash goodwill impairment charge.

Mark J. Archer: Adjusting for this expense, operating expenses would have been $2.6 million, an increase of $400,000 or 18% over the fourth quarter of last year.

Speaker 7: Adjusting for this expense, operating expenses would have been two point six million, an increase of four thousand or 18% over the fourth quarter of last year.

Mark J. Archer: In addition, let me note that non-cash stock compensation expense in last year's fourth quarter was $500,000 higher than in the fourth quarter of 2020.

Speaker 7: In addition, let me note that noncash stock compensation expense.

Speaker 3: In last year's fourth quarter was five thousand higher than in the fourth quarter of 2020.

Speaker 7: In last year's fourth quarter was five thousand higher than in the fourth quarter of 2020.

Mark J. Archer: Operating loss was $6.1 million versus an operating loss in the prior year's fourth quarter of $1 million. Adjusting for the goodwill impairment charge, operating loss would have been $1.6 million or $600,000 higher than the prior year's fourth quarter.

Speaker 7: Operating loss was six point one million, versus an operating loss in the prior year's fourth quarter of a million dollars.

Speaker 3: Adjusting for the goodwill impairment charge, operating loss would have been one point six million.

Speaker 3: Or $6 thousand higher.

Speaker 7: Adjusting for the goodwill impairment charge, operating loss would have been one point six million or $6 thousand higher.

Speaker 3: In the prior year's fourth quarter.

Mark J. Archer: And net loss for the quarter was $6.3 million compared to a net loss of $1.6 million in the same quarter last year. Once more, adjusting for the goodwill impairment charge, net loss for the quarter would have been $1.8 million or $300,000 higher than the same quarter last year. At quarter-end, the company had $12 million in unrestricted cash.

Speaker 7: Than the prior year's fourth quarter and net loss for the quarter was six point three million, compared to a net loss of one point six million in the same quarter last year.

Speaker 3: Once more adjusting for the goodwill impairment charge, net loss for the quarter would have been one point eight million, or $3 thousand higher than the same quarter last year.

Speaker 7: Once more adjusting for the goodwill impairment charge, net loss for the quarter would have been one point eight million, or $3 thousand higher than the same quarter last year.

Speaker 14: At quarter end.

Speaker 3: The company had $12 million in unrestricted cash.

Speaker 7: At quarter end.

Mark J. Archer: Now, let me talk about the full year 2021 results.

Speaker 7: The company had $12 million in unrestricted cash. Now let me talk about the full year 2021 results.

Mark J. Archer: Revenue for the year was $10 million, a decrease of $1.4 million or 12% from the prior year. Gross profit was $5.7 million, a decrease of $2 million or 26% from the prior year.

Speaker 3: A decrease of one point four million, or 12% from the prior year.

Speaker 7: Revenue for the year was ten million.

Speaker 7: A decrease of one point four million or 12% from the prior year. Gross profit was five point seven million.

Speaker 4: Gross profit was five point seven million.

Speaker 3: A decrease of two million or 26% from the prior year.

Mark J. Archer: Gross margin declined from 67% to 57% due to an increase in inventory reserves and the upgrade of our 3G Guardian Alert 911 Plus to a 4G product. Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher 4G manufacturing costs.

Speaker 7: A decrease of two million or 26% from the prior year.

Speaker 7: Gross margin declined from 67% to 57% due to an increase in inventory reserves.

Speaker 3: And the upgrade of our three G Guardian alert 9, 11 plus.

Speaker 3: To a four G product.

Speaker 7: And the upgrade of our three G Guardian alert nine 11 plus to a four G product.

Speaker 14: Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher four G manufacturing costs.

Speaker 7: Of the $2 million decline in gross profit, half was due to lower sales and the other half was due to higher four G manufacturing costs.

Mark J. Archer: Operating expenses were $13.2 million, up $5 million or 60% from the prior year. Adjusting for the goodwill impairment charge, operating expenses would have been up $400,000 or 5%.

Speaker 4: Up.

Speaker 7: Operating expenses were 13.2 million up.

Speaker 14: five million or 60%.

Speaker 14: From the prior year, adjusting for the goodwill impairment charge, operating expenses would have been up four thousand or 5%.

Speaker 7: five million or 60% from the prior year, adjusting for the goodwill impairment charge, operating expenses would have been up four thousand or 5%.

Mark J. Archer: Operating loss was $7.5 million compared to an operating loss of $600,000 last year. And net loss for the year was $11.7 million or $2.23 per share, compared to a net loss of $3.7 million or $1.14 per share for the prior year.

Speaker 7: Operating loss was seven and a half million, compared to an operating loss of six thousand last year.

Speaker 14: And net loss for the year was 11.7 million, or $2 in 23 cents per share.

Speaker 7: And net loss for the year was 11.7 million, or $2 in 23 cents per share.

Speaker 3: Compared to a net loss of three point seven million, or a dollar 14 per share for the prior year.

Speaker 7: Compared to a net loss of three point seven million, or a dollar 14 per share for the prior year.

Mark J. Archer: These per share numbers have been adjusted for the company's October 2021 reverse stock split.

Speaker 7: These per share numbers have been adjusted for the company's October 2021 reverse stock split.

Mark J. Archer: In the net loss of $11.7 million for 2021, there are $10 million of non-cash charges, including the goodwill impairment, warrant modification expense, stock compensation expense and depreciation and amortization. This is up from $1.6 million in comparable non-cash charges in 2020.

Speaker 7: In the net loss of 11.7 million for 2021, there are $1 million of noncash charges.

Speaker 3: Including the goodwill impairment warrant modification expense.

Speaker 3: Stock compensation expense.

Speaker 7: Including the goodwill impairment warrant modification expense, stock compensation expense.

Speaker 3: And depreciation and amortization.

Speaker 3: This is up from one point six million in comparable noncash charges in 2020.

Speaker 7: And depreciation and amortization.

Speaker 7: This is up from one point six million in comparable noncash charges in 2020.

Mark J. Archer: Let me make a couple of final points before I turn the call back over to Chia-Lin.

Speaker 7: Let me make a couple of final points before I turn the call back over to shyn.

Mark J. Archer: On March 31, the judge presiding over the litigation concerning the sale of Fit Pay, our former fintech subsidiary, ruled favorably on our motion for summary judgment and dismissed the case. This was the company's final open piece of litigation.

Speaker 7: On March thirty-first, the judge presiding over the litigation concerning the sale of fit Bay, our former fintech subsidiary.

Speaker 3: This was the company's final open piece of litigation.

Speaker 7: Ruled favorably on our motion for summary judgment and dismissed the case.

Mark J. Archer: And finally, the last nine months that I've been with the company have been challenging to say the least as we cleaned up the administrative side of the business and put the appropriate infrastructure in place to support rapid growth.

Speaker 7: This was the company's final open piece of litigation and finally.

Speaker 14: The last nine months that I've been with the company have been challenging, to sayve the least, as we cleaned up the administrative side of the business.

Speaker 7: The last nine months that I've been with the company have been challenging, to say the least, as we cleaned up the administrative side of the business and put the appropriate infrastructure in place to support rapid growth.

Speaker 3: And put the appropriate infrastructure in place to support rapid growth.

Mark J. Archer: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales and profitability. Chia-Lin?

Speaker 7: I'm happy to have that phase behind us and look forward to speaking with you on future calls about the things we're doing to grow sales and profitability.

Speaker 5: And profitability.

Speaker 4: chand.

Chia-Lin Simmons: Thanks Mark. As you wrap up the call, I'm going to leave you with a couple of key thoughts. Our plans are ambitious. But with the right team and right products, we expect to establish logic Mark as a leading brand in the health communications market and care economy.

Speaker 1: As you wrap up the call, I'm going to leave you with a couple of key thoughts.

Speaker 2: joingthanks Mark.

Speaker 6: Our plans are ambitious.

Speaker 9: But with the right team and right products, we expect to establish logic Mark as a leading brand in the health communications market and care economy.

Speaker 3: As we wrap off the call, I want to leave you with a couple of key thoughts. Our plans are ambitious, but with the right team and bright products, we expect to establish logic Mark as a leading brand in the health communications market and care economy.

Chia-Lin Simmons: Research indicates that there's certainly enough demand for innovative products and solutions that are supported with stellar customer service. We believe that LogicMark has the ability to capture more of the care economy market from the grandmother who wishes to age in place in our home to our beloved military veteran, who may need some extra help or the student who needs and seeks additional security.

Speaker 4: Research indicates that there is certainly enough demand for innovative products and solutions that are supported with stellar customer service.

Speaker 9: We believe the largest market has's ability to capture more of the carea economy market.

Speaker 9: To a grandmother who wishes to age in place in our home to have beloved military backgrroom who may need some extra help.

Speaker 4: We believe the largest market has the ability to capture a more of the carea economy market. Comm the examandmother who wishes to age in place in our home, to a deloved military vegrand who may need some extra help, or the student who needs and seeks additional security.

Speaker 1: What the student reads.

Speaker 1: And seeks addaditional security.

Chia-Lin Simmons: At this time, I will open the call to question. Operator?

Speaker 6: Operator.

Operator: Thank you. Ladies and gentlemen, if you would like to ask a question at this time, you will need to press the star then the one key on your touch tone telephone. Again, if you would like ask a question, please press star one to ask a question. And I'm showing no questions at this time.

Speaker 4: At this time. I will open the call to questionions operator. Thank you, Ladies and gentlemen. If you like to us a question at this time, you re willing to breast a star en do one key on your. Touch it on telephone.

Operator: Again, if you would like ask a question, please press star one to ask a question. And I'm showing no questions at this time.

Speaker 8: Again if you like, ask a question. Please rest far. Want to ask a questionand I'm showing up questions at this time.

Operator: And I'm showing no questions at this time.

Chia-Lin Simmons: I want to thank all of you who dialed in to listen to our call today. We'll be reporting on the first quarter results in just a few weeks. So I look forward to providing another update on our progress at that time.

Speaker 9: We'll be reporting on the first quarter results in just a few weeks.

Speaker 4: I want to thank all of you who dialed in to listen to our call today. We'll be reporting on the first quarter results in just a few weeks, So I look forward to providing another update on our progress at that time.

Speaker 6: So I look forward to providing another update on our progress at that time.

Operator: Ladies and gentlemen, that does conclude the conference for today and thank you for your participation. You may now disconnect.

Speaker 1: Ladies and gentlemen, that does con ferenconference for today, and thank you for your participation. You may now disconnect.