Q4 2022 LogicMark Inc Earnings Call
To ask a question during the session you will need to press star one one on your telephone you will there.
Then youre an automated message advising your hand is raised to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to turn the call over to Louie Toma from core IR, the company's Investor relations firm.
Good afternoon, and thank you for participating in today's conference call. Joining me from logic Mark's leadership team, our Charlotte Simmons, Chief Executive Officer, and Mark <unk> Chief Financial Officer.
During this call management will be making forward looking statements, including statements that address logic market expectations for.
For future performance or operational results and anticipated product launches.
We're looking statements involve risks and other factors that may cause actual results to differ materially from those statements.
For more information about these risks please refer to the risk factors described in logic <unk>. Most recently filed annual report on Form 10-K.
In subsequent periodic reports filed with the SEC and logic March press release that accompanies this call, particularly the cautionary statements.
The content of this call contains time sensitive information that is accurate.
As of today March 28 2023.
As required by law logic, Mark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call.
It is now my pleasure to turn the call over to the company's CEO Charlotte incentives.
Thank you Larry welcome everyone and thanks for joining us.
Our fourth quarter represent rebuild I'm curious for the company as we focus on developing new innovative products and investing in our sales and marketing okay.
<unk> growth and shareholder value.
Turning to the outlook.
Expertise in sales and marketing will help try to move a muscle.
In September we added John Federica Athena project.
And this fall Jonathan focusing on managing our product development.
Talking about launching new leading edge products.
<unk> extensive experience in <unk>.
Management.
Allergy company, including Marvel.
This will be a significant uplift in new products to market.
In October .
Hunter joined Us as senior VP of marketing.
We also have.
Consumer product marketing companies 20 years developing market, Alex Brown Senior Vice President Martin M D.
<unk> growth.
I'm cofounder of property plant and EMR.
In December .
Grady Farrell at keeps us out of extensive sales and service network.
I hope you keep on helping larger pack achieved.
He comes to us with a background in large companies like one regional sales director to startup medical device company with Python and monarch.
These strong addition to our excellent highlights our commitment to building new innovative products as well as having a strong sales team that will take this new offering.
<unk> bathroom products to market.
The care economy represents a significant opportunity and we are.
The only public pure play company dedicated to addressing those needs.
We believe that our new products and our key hires position us to capitalize on that competitor.
Yes.
Yes.
Our Q4 revenue decreased from the high level of expense early in the year as we benefited from the test cell.
Veterans Health administration data on customers upgraded to Fletcher.
With this upgrade cycle now complete.
Future south to be driven by the launch of new products as well as new sales channels.
We are confident that these new products provide a competitive offering that will allow us to retain our market.
We look forward to providing updates as a complete our product development approach their launch.
As a reminder.
That's a direct to consumer sales channel in July to enable customers to purchase directly from us.
Revenue from this channel continues to rise while media remains relatively flat helping to interest margin.
With the implementation of new upsell cross sell self service in December .
We look to continue this trend moving into the rest of 2023.
Additionally, we will be further extending our direct to consumer sales channel with the launch of the logic like Amazon.
Would you expect to go live by the end of next month.
As we continue to invest in our sales and marketing and new product initiatives.
And a prudent and cost effective way.
I'll focus on minimizing.
Yes.
One way will fortify our product development effort with application for and receiving pattern that will protect our position and investments made.
These provisional applications include various techniques that one ensure the quality of wellness care system.
Q incorporates various machine learning AI techniques, and three focus on systems and support of wellness and multiparty interaction.
Two provisional patent applications are filed in the third and fourth quarter I'll focus on machine learning.
Making that a total filed provisional patents filed in 2020 each year for the company.
In Q4, we also focus on starting to move some of those provisional patents into final filing from 2022.
We expect a material does professional panther.
The final patent filings in early 2020.
We have experienced some delays in the launch of our new products that we're working through it.
We expect those will be filed within the next few quarters and we are planning to bring our first offer products to the market in Q2.
With $7 million in cash as of December 31, 2022, and $5 2 million of gross proceeds that we raised on our register offering in January 2023.
We are now well positioned to further execute our strategy as we launch new products and establish additional sales channels.
Our business plan is solid and we believe that the coming silver tsunami driven by the growth in the elderly population and the presence of at home.
Perfect.
Offering.
We're confident that as we execute we will become a leading provider of power solutions and services and expanding current economy.
I'll now pass Mark Mike Archer to discuss our 2022 financial results and then I'll return to provide some closing remarks.
Thank you Charlotte.
Here are the financial results for the year ended December 31.
2022.
Revenue for the year ended December 31, 2022 was $11 9 million.
Up 19% from prior year.
The increase in revenues resulted from improved sales the VA hospitals and clinics.
Gross profit was $7.
$2 million for the year ended.
Timber 2022.
Versus $5 8 million in 2021.
An increase of 25%.
Gross margin increased 300 bips.
267%.
From 57, 7% in the prior year.
Gross profit increased as a result of higher revenues.
And lower inbound freight costs.
Total operating expenses.
<unk>, 6%.
In fiscal year 2022.
Totaling $14 1 million compared to $13 3 million in fiscal 2021.
Last years.
Fiscal 'twenty one.
<unk> included a $4 5 million charge.
For goodwill impairment.
Net loss attributable to common shareholders for the year was $7 3 million.
Versus a net loss of $14 million in fiscal 'twenty one.
An improvement of $6 8 million.
The results for the year ended December 31 2021 include.
Included $2 $9 million in warrant modification expense.
Net loss per share.
Improved from a loss of <unk>.
$2 and 25% to $2 25 per share.
In the fiscal year ended 21, 2021 to a net loss of 76 cents per share.
In the year ended 2022.
An improvement.
A $1 49 per share.
Of that improvement.
40% 40, <unk> per share was attributable to the 53% increase in <unk>.
Common shares outstanding between the two years.
Cash balance as of December 31.
It was $7 million before.
Before the addition of $5 $2 million of gross proceeds.
In our January registered offering.
I'll now turn the call back to Charlotte.
Thanks, Mike.
2022 has been a busy year as we focus on innovating.
And that enabled about one.
Briefly in their own homes, when saying that they are being properly monitored appropriately carefully.
I'll answer Mark RP Unexcited about these opportunities.
<unk> worked tirelessly to provide leading edge solutions that justice a barbell economy.
At this time I will open the call to questions.
Operator.
Thank you Sir.
Minder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Okay.
Our first question comes from Allen Klee with Maxim You May proceed.
Good afternoon.
Can you talk a little about your new product strategy and.
How do you plan to do.
You think the competitive advantages of our products our go.
Go to market strategy. Thank you.
Sure Hi.
Alan.
Good to chat with you. So one of the things that we're looking at is trying to bring some of the Iot capabilities and machine learning and AI in here.
Pick your class a product.
Offering so today, if you look at our maturity of the technology, where we're seeing lacking.
Primarily is a couple of different things first I wanted to talk about fall protection.
Fall protection today, typically utilize a thing such as accelerometer and gyroscope Stephen Schultz.
So where we actually have a patent of adding additional multi factor.
Our capabilities in sharp device, including that keep the branches have an altitude of es, allowing us to lead the distance between sort of.
Where you are to where you sort of ended up at the device and so think about this is <unk>.
Good.
And so that provides a touch better accuracy around what his thoughts.
It really is a fall versus potentially you're just taking down too quickly.
So adding the set of features around machine learning and AI.
<unk> is one of the ways for us to fine tune that filed the capsule to really be personalized to the individual as well as giving us the capability to also take the aggregate data and be able to sort of learn more on how you're sort of pattern.
You've mentioned, so far compared to dose warehouse similar age and perhaps with a healthy backlog.
And so for example, we're able to as we sort of run more of that capability and we start adding some of these features into their new products.
But on Tuesdays and Thursdays.
It looks like you're falling we check in with you and it looks like a spotify, but it happens at 10 o'clock at this GSM geographic location. It looks like it's a yoga studio so on Tuesdays and Thursdays, but seems to be a fall if not a fox so eliminating some of the issues related to bulk.
<unk> positive when it comes to reasons why people don't actually want to wear devices devices go off all the time thinking that just fallen and it did have a new sense of a lot of people who work.
So what we're really trying to do with combined year pattern.
I understand basically.
Now back to sort of manage your experience as well as also again appetite and sort of learn about the machine learning and AI is very crucial to that and we think that that's really something that we're not seeing in the market today.
Secondarily youll see that all of our new products moving forward will include new sort of hardware features that make it much more.
Modern in terms of sharing data for you to share data with us and forget caretakers to check in with you and get a much more interactive experiences that we can add that to a better learning and understanding of who you are on the help to in patients with active and so instead of now being a reactive technology like a lot of people.
Products are in the marketplace. We're obviously working to get the help they need as quickly as possible, but we're also trying to be rehab.
The proactive so be a technology that is checking in on your housing, allowing your caretakers to checking on your health.
Quickly versus just basically responding where you're having an emergency situations and so it becomes a much more comprehensive technology product.
How do we sort of also win here is that a lot of the technology companies.
All of these companies that are competing against in that particular category space without.
Good answer.
I also have to make their own technology with essential items off the shelf, which is great.
But we our technology from a building our own technology does that mean that we're building on.
AI algorithm, we're building our own user experience that is more conducive.
Jerry the elderly above one so that that user experiences much more positive Washington business aging as well as a user experience that is conducive to a multi caretaker environment whether or not.
As CFO or whether or not it's a family of three or four in the next door neighbor and professional share take that right.
Alright, because there's a lot of coordination that's involved and so we're really focused on trying to bring a comprehensive technology suite to the <unk>.
Market versus.
Basically Hayward monitor southwest company here.
Here's independent product that we didn't build that we're going to make offerings to you and we will connect our suite of cloud services.
Instead offering.
<unk> have the same user experience across the board. So you don't have to be buying that that also has is really wonderful caretaker.
That's not all because we know that at the end of the product.
It's not just about people who are willing to devices, but it's also the people who care about them. The sandwich generation, who also wanted to make sure that their family members are safe and are coordinating their care and so we go into this as we spoke about since we've taken over the company was this idea of having a CPAP system platform as a service offering.
Really comprehensive capability to the care economy versus sort of things that you pull together randomly from defense.
Offerings and products.
I hope that's helpful.
I'm curious when.
When you've done your market research.
What is.
People, who are in the market to buy.
What do they say its the most important things and how do you think you've addressed that.
Yes, some of the most important things that.
And you have to take a look at customers and it's a huge difference for us.
<unk>.
First is the end user right the people who are actually bringing the devices.
They want a device that is.
Much better about getting rid of false positives right you don't want to wear devices are constantly goes off the first attempt to turn off fall protection because Paul.
While the cash in is spotty.
And so it's going off of time and until very conspicuous when their volume of walking and they might just slow down and it triggers something so that's really like always our first concern to people that these false positives happens quite frequently secondarily is that these devices are waiting Buck the latest feel make people feel all of them.
You don't want to wear it.
So that they don't feel like they are the people who need these types of devices, which is just slightly alright, and so they care about not feeling like they're sticking out and making them feel like they are elderly, even though they need a little supports right and so redesigning these assets they look like.
Just a <unk> type of technology that you and I and all of us carry within our lives make it easier for this to be adapted by those who need it the most.
And if you look at the people who are actually the caretakers the sandwich generation to one in four millennials and half of Gen answers, we always talk about with them. It's about how do I offer something that is comprehensive so.
My parents.
I can monitor them without feeling like an overwhelming them like big brother, So that means that we give them the capability to understand that the parents are safe without feeling that they are interesting and so we do that by basically not turning on certain features that may seem intrusive until we need it right incident occurs but.
Next question.
So that it's not like there's a camera <unk> dining at home constantly so that you have been looking at you because thats one thing that I think both security occurs in the last ones that youre not going to have secondarily is that they're constantly coordinating care.
Is that share.
Youre taking to be a very lonely processing is also one that is a very complex and so how did they coordinate care with a professional care take care of their out of state.
Two sort of sharing this responsibility among family members and next door neighbors that becomes extremely unwieldy.
Experience.
And so they're very interested in having a system that allows them to be able to sort of organized effectively.
<unk> being a key and then the third piece for both parties is the idea of.
Having.
Security and safety, even when they may not go quite right and I call that the Triple protection, which is generally speaking now for the people who are using our products and wanted to know that if they need it somebody is there.
So if I'm if I'm a loved one ultimately loved one maybe sometimes my son is in a meeting and he has a stone turned off and so if I have an emergency I cannot reach them.
And so having the capability to say look if I cannot reach my son, who is typically my caretaker then I know that I am going to be protected because dust.
<unk> device will bump into my next person, who secure taker and if that person has been reached I think thats were 27 monitor survey radical directly to 911 I call. It the triple protection price. So they wanted to note that there is a comprehensive capability.
To be covered and not only does that make that any they're comfortable but it also makes the caretakers comes from all that in the off chance that there are enough batstone down or they're in a meeting that.
The luck when at the parent has always taken care of if those are the things that matter the most to them.
What are you sort of rolled out and are rolling out.
Thank you very interesting.
How do you think about.
The best way to go.
Or what your marketing strategy sales and marketing would be for.
For this year.
Yes, that's a really great question and so we are continued to be continue to be bullish on instead of going into the BDC market of course.
Assuming that the cost is not overwhelming and.
And mainly because that b to C experiences so crucial people want to know who's taking care of their loved one.
So they.
They need to have that sort of direct experience with testing that we have.
Customer service and the only way you're going to experience that is to have that direct relationship with us.
And thats to our service and through our.
Amazing customer support staff and to our web experience comprehensive web.
Perfect experience with us and so that's really the key and we will be doing what we would phase two.
Please sort of where we need to reach our audience.
The reality of vessels that most people who are <unk>.
Buying these products the people, we really mostly in each of each is actually the people whore caretakers.
They are the ones, who joined research for their parents, because probably like a lot of parents. They don't think ethane uses mices look right now at the children.
The Gen Xers and millennials, who are doing that research initially and so we're trying to find them where they are they are all clustered around carrying for alto <unk> Facebook groups and they are clustered around that as we have discretionary as in all the different ways that people are looking to connect with other people have similar concerns and so we are.
Really trying to reach out to them and those channels specifically for BDC.
When it comes to basically beat achieve we continue to be early to continued growth at path. We're very excited with the as we rollout our monitor services to be going directly into the states and municipalities.
We've mentioned the sort of the hiring of our VP of sales. He has been extremely aggressive in hiring some of the best salespeople as seen in the marketplace.
And I'm very excited that not only are they are amazing.
Sales team some of them are veterans and they are understanding the needs of our customers.
Both sort of on the sales side as well as the end user side. So they are aggressively growing our <unk> footprint.
Every clinic, there's thousands.
Out there that we still need to talk to.
As well as actually starting that initial foray into discussions on the <unk> side with distributors and people who are.
Operators of in home.
Networks for a cure as well as retirement communities because again some of our services that we're going to be rolling out is really tied to these particular products and having the monitor services tied to growth in home care facilities partners.
We've actually done initial rollout and showing up as to the initial ex some of these folks and we're getting extremely good feedback not just from our government partners, but as well as <unk>.
Other <unk> customers as well potential customers as well.
That's great. Thank you so much.
Thank you and this concludes the Q&A session I would now like to turn the call back over to Shai Lin for any closing remarks.
Sure.
I want to thank all of you who participated on our call today and look forward to continuing to provide updates on our progress at the appropriate time. Thank you so much.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
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Good day, and thank you for standing by and welcome to the logic Mark fourth quarter in 2022 financial results and corporate update conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star.
One one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to turn the call over to Louie Toma from core IR, the company's Investor relations firm.
Good afternoon, and thank you for participating in today's conference call. Joining me from logic Mark's leadership team are Charlene Simmons, Chief Executive Officer, and Mark <unk> Chief Financial Officer.
During this call management will be making forward looking statements, including statements that address logic market expectations for future performance or operational results.
Dissipated product launches.
Looking statements involve risks and other factors that may cause actual results to differ materially from those statements for more information about these risks. Please refer to the risk factors described in <unk>. Most recently filed annual report on Form 10-K.
Subsequent periodic reports filed with the SEC and logic March press release that accompanies this call, particularly the cautionary statements in it.
The content of this call contains time sensitive information that is accurate.
As of today March 28 2023.
As required by law logic, Mark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur. After this call.
It is now my pleasure to turn the call over to the company's CEO Charlotte incentives.
Thank you Louis and welcome everyone and thanks for joining us.
Our fourth quarter represents rebuilding period for the company as we focus on developing new innovative products and investing in our sales and marketing efforts to drive sustained growth and shareholder value.
During the year, we added key expertise in sales and marketing will help drive these initiatives.
In September we added John Federico Athena project director.
In this role Jonathan focusing on managing our product development efforts as we work towards launching new leading edge products.
He has extensive experience in product management with various technology companies, including Marvel.
Scott will be a significant asset as we bring new products to market.
In October .
Hunter joined Us as senior VP of marketing.
<unk> also has extensive experience in consumer product marketing companies with 20 Years' development marketing experience senior Vice President of life MD <unk>.
BP of growth at <unk> and <unk>.
Cofounder of <unk> and <unk>.
In December we add a bit later.
Yourself.
Sensor sales express of various med Tech company that will be key in helping logic market achieved sales objective.
He comes to us with a background in both large companies like <unk>, where he was a regional sales director to startup medical device company like argon and monarch.
These strong additions to our team highlights our commitment to building new innovative products as well as having a strong sales team that will take these new offerings. In addition to our current bestselling products to market.
The carrier economy represents a significant opportunity and we are the only public pure play company dedicated to addressing those needs.
Believe that our new products and our key hires position us to capitalize on that competitive advantage.
Our Q4 revenue decreased from the high levels, we experienced earlier in the year as we benefited from a boost in sales at U S Veterans Health administration business and customers upgraded to <unk> devices.
With this upgrade cycle now complete we expect future sales to be driven by the launch of new products as well as new sales channels.
We are confident that these new products will provide a competitive offering that will be well received in the market.
We look forward to providing updates as we complete our product development approach their launch.
As a reminder, we launched our direct to consumer sales channel in July to enable customers to purchase directly from us.
Revenue in <unk> from this channel continues to rise while media spend remains relatively flat helping to increase margin.
With the implementation of new upsell cross sell sell close in December .
To continue this trend moving into the rest of 2023.
Additionally, we will be further extending our direct to consumer sales channel with the launch of a logic Mark Amazon score.
Would you expect to go live by the end of next month.
As we continue to invest in our sales and marketing and new product initiatives. We did so in a prudent and cost effective way with our additional focus on minimizing our corporate expenses.
Yes.
One way will fortify our product development efforts with good application for and receiving pattern that will protect our position and investments made.
These provisional applications include various techniques that one ensure the quality of wellness care system on delivery.
You incorporate various machine learning and AI techniques.
We focus on systems in support of wellness multiparty interaction.
Two provisional patent applications are filed in a third and fourth quarter I'll focus on machine learning.
Making that a total of five provisional patents filed in 2022 for the company.
In Q4, we also focused on starting to move some of those provisional patents into final filing in 2022.
Spectrum material does professional Panther.
Final patent filings in early 2023.
We have experienced some delays in the launch of our new products that we're working through.
We expect those will resolved within the next few quarters and we are planning to bring our first software products to the market in Q2.
With $7 million of cash at December 31, 2022, and $5 2 million of gross proceeds that we raised on our register offering in January 2023.
We're now well positioned to further execute our strategy as we launch new products and establish additional sales channels.
Our business plan is solid and we believe that the coming silver tsunami driven by the growth in the elderly population and to present the data at home.
Create a perfect storm for us.
Great.
We are confident that as we execute we will become a leading provider of power solutions and services and expanding current economy.
I'll now pause, Mike Archer to discuss our 2022 financial results and then I'll return to provide some closing remarks.
Thank you Charlotte.
Here are the financial results for the year ended December 31 2022.
Revenue for the year ended December 31, 2022 was $11 9 million.
Up 19% from prior year.
The increase in revenues resulted from improved sales the VA hospitals and clinics.
Gross profit was $7 two.
$2 million for the year ended.
Remember 2022.
Versus $5 8 million in 2021.
An increase of 25%.
Gross margin increased 300 bips.
267%.
From 57, 7% in the prior year.
Gross profit increased as a result of higher revenues.
And lower inbound freight costs.
Total operating expenses.
<unk>, 6%.
In fiscal year 2022.
Totaling $14 1 million compared to $13 3 million in fiscal 2021.
Last years.
Fiscal 'twenty one.
<unk> included a $4 5 million charge.
For goodwill impairment.
Net loss attributable to common shareholders for the year was $7 3 million.
Versus a net loss of $14 million in fiscal 'twenty one.
An improvement of $6 8 million.
The results for the year ended December 31 2021 include.
Included $2 $9 million in warrant modification expense.
Net loss per share.
Improved from a loss of <unk>.
$2 and 25% to $2 25 per share.
In the fiscal year ended 22021 to a net loss of 76 cents per share.
In the year ended 2022.
Improvement.
Of the $1 49 per share.
Of that improvement.
40% 40 <unk> push.
Sure would be attributable to the 53% increase in common shares outstanding.
Queen the two years.
Cash balance as of December 31.
$7 million.
Before the addition of $5 $2 million of gross proceeds.
In our January registered offering.
I'll now turn the call back to Shirley.
Thanks Mark.
2022 has been a busy year as we focus on innovating.
But enabled about one.
Safely in their own homes, when sharing that they are being properly monitored appropriately carefully.
We have lots of work or be an excited about these opportunities.
You need to work tirelessly to provide leading edge solutions adjusted bottom tier economy.
At this time I will open the call to questions.
Operator.
Yes.
Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Okay.
Our first question comes from Allen Klee with Maxim You May proceed.
Good afternoon.
Can you talk a little about your new product strategy.
How you plan to what you think the competitive advantages of our products are and the go.
Go to market strategy. Thank you.
Sure Hi.
Hi, Alan.
Good to chat with you.
So one of the things that we're looking at is trying to bring some of the Iot capabilities.
Machine learning and AI ensue.
A particular set of products.
Offerings and so today, if you look at our maturity of the technologies, where we're seeing lacking.
Primarily is a couple of different things first I wanted to talk about fall protection. So fall protection today, typically utilize a thing such as accelerometer and gyroscope speed and tilt.
Where are we actually have a patent of adding additional multi factor sort of sensor capabilities into earth device.
The capability to have.
And also to UBS, allowing us to read the distance between sort of a.
Where you are to where you sort of ended up as a device and so think about this as hoped.
And at this time.
So that provides a much better accuracy around what a sponsor.
But really as a fall versus potentially you're just sitting down too quickly and so adding the features around machine learning and AI is one of the ways for us to ask chief fine tune that while the capsule to really be personalized to the individual as well as giving us the capability to also take the aggregate data and be able to.
Sort of learn more on how you're sort of pattern.
You've mentioned, so far compared to dose warehouse similar age.
Perhaps to help that.
Background and so for example, we're able to.
As we learn more of that capability and we start adding some of these features into the new products be able to say look on Tuesdays and Thursdays.
It looks like you're falling we check in with you and it looks like it's satisfying but it happens at 10 o'clock at this Joseph geographic location. It looks like it's a yoga studio so on Tuesdays and Thursdays what seems to be a fall if not a fox so eliminating some of the issues related to vault.
Both positive when it comes to reasons why people don't actually want to wear a device because these devices go off all the time thinking that just fallen and it causes a bit of a nuisance for a lot of people who buy them.
So what we're really trying to do is combine your pattern.
I understand basically.
How best to sort of manage your experience as well as also again aggregate and so the burden of Ambac to machine learning and AI is very crucial to that and we think that that's really something that we're not seeing in the market today.
Secondarily, you will see that all of our new products moving forward will include new sort of hardware features that make it much more.
Modern in terms of sharing data for you to share data with us and forget caretakers or Kevin with you and get a much more interactive experiences that we can add that to a better learning and understanding of who you are on the help communications perspective, and so instead of now being active technology like a lot of people.
<unk> in the marketplace. We're obviously looking to get you. The help that you need X quickly as possible, but we're also trying to be rehab.
The proactive so be a technology that is checking in on your helping allowing your caretakers of checking on your health more actively versus just basically responding when you're having an emergency situations as it becomes a much more comprehensive technology product.
How do we sort of also win here is that a lot of these technology companies a lot of these companies that we're competing against in this particular category space. The downstream they don't tend to make their own technology to identify them off the shelf, which is great.
We are technology from our building our own technology. So that means that we are building on the AI algorithm. We're building our own user experience that is more conducive to you and Jerry the elderly loved ones. So that that user experiences much more positive, Washington, DC aging as well as a user.
<unk> that is conducive to a multi caretaker environment, whether or not.
Yes.
Or whether or not it's a family of three or four in the next door neighbor and professional for sure right.
Alright, because there's a lot of coordination that's involved and so we're really focused on trying to bring a comprehensive technology suite to the <unk>.
Market forces.
Basically monitor focused company.
Yes, independent product that we didn't build that we're going to make offerings to you and we will connect our suite of cloud services.
Instead offering products that have the same user experience across the board. So you don't have to be beyond that but also has is really wonderful caretaker.
Well, because we know that at the end of the product.
Not just about people who are willing to devices, but it's also the people who care about them. The sandwich generation, who also wanted to make sure that their family members are safe and are coordinating their care.
So we go into this as we spoke about since we've taken over the company was this idea of having a C pass system.
The service offering a really comprehensive capability to Macau economy versus sort of things that you pull together randomly from different set of offerings and products.
I hope that's helpful.
Yes, I'm curious.
When you've done your market research.
What has.
People, who are in the market to buy.
What do they say is the most important things and how do you think you've addressed that.
Yeah. Some of the most important thing is that.
And then you have to take a look at customers and that's a huge difference.
Groups.
First is the end user right the people who are actually bringing the devices. So they want a device that is.
Much better about getting rid of false positives right you don't want to wear devices are constantly goes after four system to turn off fall protection because.
While detection is spotty.
And so it is going off of time and it makes them feel very conspicuous when their volume of walking and they might just slow down and a trigger something so that's really like always the first concerns for people that these false positives happens quite frequently secondarily is that these devices the way they book the way they feel make people feel all of them.
We don't want to wear it.
And so that they don't feel like they are the people who need these types of devices, which is just slightly right and so they care about not feeling like they're sticking out and making them feel like their elderly, even though they need a little support right and so redesigning these assets they look like.
Just the everyday type of technology that you and I and all of us carry within our lives make it easier for this to be adapted by those who need it the most and.
And if you look at the people who are actually the caretakers the sandwich generation to one in four millennials and half of <unk>, We always talk about the data it's about how do I offer something that is comprehensive so.
My parents.
I can monitor them without feeling like an overwhelming them like big brother, So that means that we give them the capability to understand that the parents are safe without feeling that they are interesting and so we do that by basically not turning on certain features that may seem intrusive until we need it right incident occurs at Butler.
Question.
That is not like that the camera can donning a home constantly so that you have the problem of looking at you because thats one thing that I think both the caretakers and our loved ones do not want to have secondarily is that we're constantly coordinating care.
Is that share taking can be a very lonely processing is also one that's a very complex and so how did they coordinate care with a professional care take care of their out of state.
Two sort of sharing this responsibility among family members and next door neighbors that becomes extremely unwieldy.
Yes.
And so they're very interested in having a system that allows them to be able to sort of organize effectively.
Being a key and then the third piece for both parties is the idea of.
Having.
Security and safety, even when and you may now call quite right and I called out the Triple protection, which is generally speaking that people are using the product and wanted to know that if they needed somebody is there and so.
If I'm a loved one elderly loved one maybe some time with my friend is in a meeting and he has a strong trend off and so if I have an emergency I cannot reach them now.
Now watch and so having the capability to say look if I cannot reach my son, who is typically mahir ticker then I know that I am going to be protected because just my.
<unk> device will bump into my next person, who secure taker and if that person has reached I think thats for 'twenty seven monitor survey recognized directly to 911 I call. It the triple protection price. So they wanted to note that there is a comprehensive capability.
To be covered and not only does that make the end user comfortable but it also makes us comfortable that in the off chance that there are enough, that's going down or they're in a meeting that.
Good luck with that the parent has always taken care of because those are the things that matter most to them.
What are you sort of rolled out and are rolling out.
Thank you very interesting.
How do you think about.
The best way to go.
Or what your marketing strategy sales and marketing would be for.
For this year.
Yes, that's a really great question and so we are continued we continue to be bullish on sort of going into the BDC market of course.
Assuming that the cost is not overwhelming.
And mainly because that b to C experiences so crucial people want to know who's taking care of their loved one and two.
So they.
They need to have that sort of direct experience with best in that you know that we have excellent customer service and the only way you're going to experience that is to have that direct relationship with us.
And that's through our service and through our.
Amazing customer support staff and to our web experience comprehensive web.
Perfect. Thank you curious, but that's really the key and we will be doing.
We've advanced Sip.
Please sort of where we need to reach our audience I mean, the reality of vessels that most people who are.
Buying these products the people, we really mostly in each of each is actually the people who are caretakers.
I wanted to join our research for their parents, because probably like a lot of parents. They don't think that the music license with right now.
Children.
<unk> and the millennials, who are doing that research initially and so we're trying to find them where they are they are all clustered around caring for our loved ones and like Facebook groups.
And they are clustered around that is discretionary as in all the different ways that people are looking to connect with other people have similar concerns.
And so we are.
Really trying to reach out to them and those channels specifically for BDC.
When it comes to basically achieve we continue to be early to continue to grow that path, we're very excited with that.
As we rollout our monitor services to be going directly into the states and municipalities.
Mentioned, the sort of the hiring of our VP of sales. He has been extremely aggressive in hiring some of the best salespeople I assume in the marketplace.
And I'm very excited that not only are they are amazing sales.
Sales team some of them are veterans and they are the understand the needs of our customers.
Both sort of on the sales side as well as the end user side. So they are aggressively growing our <unk> footprint.
In our preclinical thousands.
Out there that we still need to talk to you.
As well as actually starting that initial foray into discussions on the <unk> side with distributors and people who are.
Operators of in home.
Networks for a cure as well as retirement communities because again some of our services that we're going to be rolling out.
Really tie to these particular products and having the monitor services tied to the in home care facilities partners.
We've actually done initial rollout and showing some initial products. Some of these folks and we're getting extremely good feedback not just from our government partners, but as well as <unk>.
<unk> customers as well potential customers as well.
That's great. Thank you so much.
Thank you and this concludes the Q&A session I would now like to turn the call back over to Shai Lin for any closing remarks.
I want to thank all of you who participated on our call today and look forward to continuing to provide updates on our progress at the appropriate time. Thank you so much.
Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.