Q2 2024 LogicMark Inc Earnings Call
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Operator: Good afternoon, and thank you for participating in today's second quarter 2024 conference call. Joining me from Logicmark today are Charlene Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address Logicmark's expectations for future performance or operational results and anticipated product launches. Such forward-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
Operator: Good afternoon, and thank you for participating in today's second quarter 2024 conference call.
Operator: Risk factors described in Logicmark's most recent filed annual report on Form 10-K and subsequent periodic reports filed with the SEC in Logicmark's press release that accompanies this call particularly include cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today, August 13, 2024. Except as required by law, Logicmark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that could occur after this call. It is now my pleasure to turn the call over to Sharlyn Simmons. Thank you, Livia.
Speaker Change: Good afternoon and thank you for participating in today's second quarter 2024 conference call.
Operator: Joining me from LogicMark today are Charlene Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address LogicMark's expectations for future performance or operational results in anticipated product launches. For looking statements involved risk and other factors that make up action results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in LogicMark's most recent 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 in it.
Speaker Change: Joining me from LogicMark today are Sharlene Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer.
Speaker Change: During this call, management will be making forward-looking statements, including statements that address LogicMark's expectations for future performance or operational results and anticipated product launches.
Speaker Change: Bored-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.
Speaker Change: For more information about these risks, please refer to the risk factors described in LogicMark's most recent 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 in it.
Operator: The content of this call contains time-sensitive information that is accurate only as of today on the 13th, 2024, except as required by law. Logicmark explains any application to publicly update or revise any information to reflect events or circumstances that could occur after this call.
Speaker Change: The content of this call contains time-sensitive information that is accurate only as of today, August 13, 2024.
Speaker Change: Except as required by law, Logic Marks disclaims any obligation to publicly update or revise any information to reflect events or circumstances that could occur after this call. It is now my pleasure to turn the call over to Charlene Simmons.
Olivia: It is now my pleasure to turn the call over to Charlene Simmons. Thank you, Olivia.
Sharlyn Simmons: I'd like to start by congratulating the team for the progress that we've made thus far in transforming ourselves into a personal safety company, a solutions provider that meets the needs of a much broader audience of people at various stages and with various needs in their lives. When I first joined as CEO, we were a hardware company generating one-time revenue from the sale of our personal emergency response systems to the government's Veterans Administration. What we had, and still do have, is a longstanding relationship meeting the needs of our valued veterans. But I knew there was greater potential.
Charlene Simmons: I'd like to start by congratulating the team for the progress that we've made thus far in transforming ourselves to a personal safety company, a solutions provider that meets the needs of a much broader audience of people, had fairly stages and with various needs in their lives.
Charlene Simmons: Thank you, Livia. I'd like to start by congratulating the team for the progress that we've made thus far in transforming ourselves to a personal safety company, a solutions provider that meets the needs of a much broader audience of people at various stages and with various needs in their lives.
Charlene Simmons: When I first joined SCEO, we were a hardware company generating one-time revenue from the sale of our personal emergency response systems to the government's Veterans Administration. What we had and still do have a long-standing relationship meeting the needs of our value veterans. I knew there was a greater potential, so as the team came together, we laid out our vision for care village, a connected care ecosystem that is both reactive and prodigious. For those of you familiar with the technology space, you know that it takes time to upgrade a technology stack.
Speaker Change: When I first joined as CEO, we were a hardware company generating one-time revenue from sale of our personal emergency response systems to the government's Veterans Administration.
Speaker Change: While we had, and still do have, a longstanding relationship meeting the needs of our valued veterans, I knew there was a greater potential.
Sharlyn Simmons: So as a team, we laid out our vision for CareVillage, a connected care ecosystem that is both reactive and predictive. For those of you familiar with the technology space, you know that it takes time to upgrade a technology stack. When I arrived, the company's focus was very narrow, and innovation had stagnated with nothing new introduced since 2015. Today, we are very different.
Speaker Change: So as a team came together, we laid out our vision for CareVillage, a connected care ecosystem that is both reactive and predictive.
Speaker Change: For those of you familiar with the technology space, you know that it takes time to upgrade a technology stack. When I arrived, the company's focus was very narrow, and innovation had stagnated with nothing new introduced since 2015.
Charlene Simmons: When I arrived, the company's focus was very narrow, and innovation had stagnated, with nothing new introduced since 2015. Today, we are very different. We have had our heads down since mid-2021, focusing on paving the right path to expand our footprint in a much larger personal safety and elder care market. As a result, we have modernized existing products and developed new solutions. We now offer five per solutions that include features such as advanced fall detection, geo-fencing for memory care, connect the cloud, and care-taker app support. This also includes the use of big data, sensors, artificial intelligence, and machine learning.
Sharlyn Simmons: We have had our heads down since mid-2021, focusing on paving the right path to expand our footprint in a much larger personal safety and elder care market. As a result, we have modernized existing products and developed new solutions. We now offer five PERS solutions that include features such as advanced fall detection, geofencing for memory care, connect to the cloud, and caretaker app support. This also includes the use of big data, sensors, artificial intelligence, and machine learning. We've also been introduced; I apologize.
Speaker Change: Today we are very different.
Speaker Change: We've had our heads down since mid-2021, focusing on paving the right path to expand our footprint in a much larger personal safety and elder care market.
Speaker Change: As a result, we have modernized existing products and developed new solutions.
Speaker Change: We now offer five PERS solutions that include features such as advanced fall detection, geofencing for memory care, connected cloud, and caretaker app support.
Charlene Simmons: We've also introduced, um, my apologies. We've also introduced a personal safety solution with the Astrosafety app, which comes with a blue sheet button. With our new technology stack, there are now opportunities to expand and add on features that could be tied to a partner's technology or services, and it also allows us to accommodate white labeling and other opportunities for partnerships. We've also been building a strategic intellectual property fence around our care village. Since I arrived at the company in mid-2021, we filed 14 patents. Our newest patent filed this week relates to risk and safety metrics, calculation, and assessment using sensors and algorithms, which integrate with our peers and personal safety products and services.
Speaker Change: We've also introduced... Apologies.
Sharlyn Simmons: Cough Cough Cough, We've also introduced a personal safety solution with the Astra Safety App, which comes with a Bluetooth button. With our new technology stack, there are now opportunities to expand and add on features that could be tied to a partner's technology or services, and it also allows us to accommodate white labeling and other opportunities for partnership. We've also been building a strategic intellectual property fence around our care village. Since I arrived at the company in mid-2021, we have filed 14 patents.
Speaker Change: Thank you. Bye. Bye.
Speaker Change: We've also introduced a personal safety solution with the Astra Safety App, which comes with a Bluetooth button.
Speaker Change: With our new technology stack, there are now opportunities to expand and add on features that could be tied to a partner's technology or services. And it also allows us to accommodate white labeling and other opportunities for partnerships.
Speaker Change: We've also been building a strategic intellectual property fence around our care village.
Speaker Change: Since I arrived at the company in mid-2021, we filed 14 patents. Our newest patent filed this week relates to risk and safety metrics calculation and assessment using sensors and algorithms, which integrate with our PERS and personal safety products and services.
Sharlyn Simmons: Our newest patent filed this week relates to risk and safety metrics calculation and assessment using sensors and algorithms, which integrate with our PERS and personal safety products and services. Other patents cover areas such as artificial intelligence, Game Theory, Digital Twins, Environmental Sensing, Personalized Behavior Monitoring, and more.
Charlene Simmons: Other patents cover areas such as artificial intelligence, game theory, digital twins, environmental sensing, personalized behavior monitoring, and more. So we built a robust IP portfolio, which is remarkable for a team of our size and in such a short period of time. And this asset will serve as another catalyst to grow sales through potential licensing agreements. In the months ahead, we'll be focusing on expanding sales and marketing efforts across all our customer channels, including government, B2C, and B2B.
Speaker Change: Other patents cover areas such as artificial intelligence,
Speaker Change: Game Theory, Digital Twins, Environmental Sensing, Personalized Behavior Monitoring, and more.
Sharlyn Simmons: We built a robust IP portfolio, which is remarkable for a team of our size and in such a short period of time, and this asset will serve as another catalyst to grow sales through potential licensing agreements. In the months ahead, we'll be focusing on expanding sales and marketing efforts across all our customer channels, including government, B2C, and B2B. I'm proud of the fact that we have both at-home and on-the-go solutions at varying price points.
Speaker Change: So we built a robust IP portfolio, which is remarkable for a team of our size and in such a short period of time. And this asset will serve as another catalyst to grow sales through potential licensing agreements.
Speaker Change: In the months ahead, we'll be focusing on expanding sales and marketing efforts across all our customer channels, including government, B2C and B2B.
Charlene Simmons: I'm proud of the fact that we have been both. We have both at home and on-the-go solutions at varying price points. And with both reactors and predictive solutions, we now have opportunities for both one-time and recurring revenue solutions with higher margins. I encourage everyone to visit our logicmark.com website and take the product quiz to see which solutions that you need.
Speaker Change: I'm proud of the fact that we have both at-home and on-the-go solutions at varying price points. And with both reactive and predictive solutions, we now have opportunities for both one-time and recurring revenue solutions with higher margins.
Sharlyn Simmons: And with both reactive and predictive solutions, we now have opportunities for both one-time and recurring revenue solutions with higher margins. I encourage everyone to visit our logicmark.com website and take the product quiz to see which solution fits your needs. One of our latest products is the Freedom Alert Mini. It's sleek, convenient, weighs less than two ounces, and is packed with innovative features, so it's the perfect on-the-go safety device.
Speaker Change: I encourage everyone to visit our logicmark.com website and take the product quiz to see which solution fits your needs.
Charlene Simmons: One of our latest products is the Freedom Alert Mini. It's sleek, convenient, and less than two ounces, and packed with innovative features, so it's the perfect on-the-go safety device. It uses patents at fall detection, GPS location services, water visits, and a free caregiver companion app. The device also supports geofencing, allowing caretakers to establish a predefined area for their loved one's safety. This is especially crucial for those with Alzheimer's or other forms of dementia, who may tend to wander. The Freedom Alert Mini is a monitor device that is iOS or Android compatible and rents an any 4G LTE cellular network and is supported by a 24-7 U.S.-based care team.
Speaker Change: One of our latest products is the Freedom Alert Mini. It's sleek, convenient, and less than 2 ounces, and packed with innovative features, so it's the perfect on-the-go safety device.
Sharlyn Simmons: It uses patented fall detection, GPS location services, water resistance, and a free caregiver companion app. The device also supports geofencing, allowing caretakers to establish a predefined area for their loved one's safety. This is especially crucial for those with Alzheimer's or other forms of dementia who may tend to wander.
Speaker Change: It uses patented fall detection, GPS location services, water resistance, and a free caregiver companion app.
Speaker Change: The device also supports geofencing allowing caretakers to establish a predefined area for their loved one's safety.
Speaker Change: This is especially crucial for those with Alzheimer's or other forms of dementia who may tend to wander.
Sharlyn Simmons: The Freedom Alert Mini is a monitor device that is iOS or Android compatible and runs on any 4G LTE cellular network and is supported by a 24-7 US-based care team. Another one of our products is this Astro Safety app, which is a real game changer for personal safety. This turns your smartphone into a personal safety device with 24 7 monitoring, where you can select which friends and family members can follow your jogging route.
Speaker Change: The Freedom Alert Mini is a monitored device that is iOS or Android compatible and runs on any 4G LTE cellular network and is supported by a 24-7 US-based care team.
Charlene Simmons: Another one of our products is this Astra safety app, which is a real game changer for personal safety. This turns your smartphone into a personal safety device with 24-7 monitoring, where you can select which friends and family members can follow your jogging route or track your attendance at an event for additional safety support. Whether you're a college student on campus, your own worker, a real estate agent hosting an open house by yourself, an adventurous senior exploring nature, a caregiver in a sandwich generation, Aster's innovative features offer unparalleled pieces. These are great examples of the work that we have done to expand our product offering in personal safety and elder care.
Speaker Change: Another one of our products is this Astra Safety app, which is a real game changer for personal safety.
Speaker Change: This turns your smartphone into a personal safety device with 24-7 monitoring where you can select which friends and family members can follow your jogging route or track your attendance at an event for additional safety support.
Mark Archer: Check your attendance at an event for additional safety support. Whether you're a college student on campus, a loan worker, a real estate agent hosting an open house by herself, an adventurous senior exploring nature, or a caregiver in the sandwich generation, Asher's innovative features offer unparalleled peace of mind. These are great examples of the work that we have done to expand our product offerings in personal safety and elder care. At this point, I'll hand over the call to Mark to summarize our financial results, including the recent capital raise that we completed.
Speaker Change: Whether you're a college student on campus, a loan worker, a real estate agent hosting an open house by herself, an adventurous senior exploring nature, or a caregiver in a sandwich generation, Astor's innovative features offer unparalleled peace of mind.
Speaker Change: These are great examples of the work that we have done to expand our product offerings in personal safety and elder care.
Mark Archer: At this point, I'll hand over the call to Mark to summarize our financial results, including the recent capital days that we completed. Yeah, thank you, Shywin. Revenue for the second quarter ended June 30th, 2024, was $2.3 million, up slightly compared with the same period last year. A higher average selling price more than offset softness and unit sales. The gross margin was a more normalized 67% for the three months ended June 30th, 2024, down from the 69% for the three months ended in June of 2023. Gross profit in the second quarter of this year was relatively unchanged at 1.6 million compared with 1.6 million in the same period last year.
Speaker Change: At this point, I'll hand over the call to Mark to summarize our financial results, including the recent capital raise that we completed.
Mark Archer: Yeah, thank you, Shaglin. Revenue for the second quarter ended June 30, 2024 was $2.3 million, slightly compared with the same period last year, but a higher average selling price more than offset softness in units. The gross margin was a more normalized 67% for the three months ended June 30 of 2020, down from 69% for the three months ended June of 2023. Gross profit in the second quarter of this year was relatively unchanged at $1.6 million compared with $1.6 million in the same period last year.
Mark Archer: Yeah, thank you Shaglin.
Mark Archer: Revenue for the second quarter ended June 30th, 2024, was $2.3 million, up slightly compared with the same period last year.
Mark Archer: a higher average selling price more than offset softness in unit sales.
Mark Archer: The gross margin was a more normalized 67% for the three months ended June 30, 2024.
Mark Archer: down from the 69% for the three months ended in June of 2023.
Mark Archer: Gross profit in the second quarter of this year was relatively unchanged at 1.6 million compared with 1.6 million in the same period last year.
Mark Archer: Total operating expenses for the second quarter were $3.6 million versus $3.9 million last year, a decrease of 6%. Reduced operating expenses were driven by lower spending in product development and technical engineering, partially offset by higher spending in sales, marketing, and advertising, as the company pivots from developing new products to putting those products in the hands of customers. General and administrative costs also fell due to lower recruiting, professional, and legal fees. The net loss attributable to common shareholders for the second quarter was $2.1 million compared with the net loss of $2.3 million in the same period last year.
Mark Archer: Total operating expenses for the second quarter were $3.6 million, versus $3.9 million last year, a decrease of 6%. Lower operating expenses were driven by lower spending on product development and technical engineering, partially offset by higher spending on sales, marketing, and Advertiser, as the company pivots from developing new products to putting those products in the hands of our customers. General and administrative costs also fell due to lower recruiting, professional, and legal.
Mark Archer: Total operating expenses for the second quarter were $3.6 million versus $3.9 million last year, a decrease of 6%.
Mark Archer: Reduced operating expenses were driven by lower spending in product development and technical engineering.
Mark Archer: partially offset by higher spending in sales, marketing, and advertising.
Mark Archer: as the company pivots from developing new products to putting those products in the hands of our customers.
Mark Archer: General and administrative costs also fell due to lower recruiting, professional, and legal fees.
Mark Archer: The net loss attributable to common shareholders for the second quarter was $2.1 million, compared with a net loss of $2.3 million in the same period last year. On a fully diluted basis, the net loss per share was $0.96, compared with a net loss of $1.83 per share in the prior period. As of June 30th, 2024, our cash balance was $3.0 million, and Shiloh by reference. On August 5th, we closed on a registered secondary offering priced at the market. Gross proceeds before deducting placement agent fees and estimated offering expenses were approximately $4.5 million.
Mark Archer: The net loss attributable to common shareholders for the second quarter was 2.1 million, compared with a net loss of 2.3 million in the same period last year.
Mark Archer: On a fully diluted basis, the net loss per share was 96 cents compared with the net loss of $1.83 per share in the prior period. As of June 30, 2024, our cash balance was $3.0 million, and Shyline referenced, on August 5, we closed on a registered secondary offering priced at the market. Gross proceeds before deducting placement agencies and estimated offering expenses were approximately $4.5 million. We intend to use the net proceeds from the offering for working capital and general corporate purposes.
Mark Archer: On a fully diluted basis, the net loss per share was 96 cents compared with a net loss of $1.83 per share in the prior period.
Mark Archer: As of June 30th, 2024, our cash balance was 3.0 million dollars.
Speaker Change: As Shilin referenced, on August 5th, we closed on a registered secondary offering priced at the market.
Shilin: Gross proceeds before deducting placement agent fees and estimated offering expenses were approximately 4.5 million dollars.
Mark Archer: We intend to use the net proceeds from the offering for working capital and general corporate purposes. We also plan on holding a special meeting of stockholders on October 1st, which, among other things, will seek approval for, First, a reverse split of the company's shares of common and Series C preferred stock, allowing us to regain compliance with NASDAQ's minimum bid price requirement, as well as for the issuance of 20% or more of our shares of common stock in connection with the just completed secondary, shareholders of record as of August 5th 2024 will be entitled to.
Shilin: We intend to use the net proceeds from the offering for working capital and general corporate purposes.
Mark Archer: We also plan on holding a special meeting of stockholders on October 1st, which, among other things, will seek approval for a reverse split of the company shares of common and series-seat preferred stock, allowing us to regain compliance with NASDAQ's minimum bid price requirement, as well as to approval for the issuance of 20% or more of our shares of common stock in connection with the just completed secondary offering. Shareholders of record as of August 5, 2024, will be entitled. to vote.
Shilin: We also plan on holding a special meeting of stockholders on October 1st.
Shilin: which among other things will seek approval for
Shilin: First, a reverse split of the company's shares of common and Series C preferred stock.
Shilin: allowing us to regain compliance with NASDAQ's minimum bid price requirement.
Speaker Change: as well as to approval for the issuance of 20% or more of our shares of common stock in connection with the just completed secondary offering.
Speaker Change: Shareholders of record as of August 5th, 2024 will be entitled to vote.
Mark Archer: With that, I'd like to open the call up to any questions. Thank you.
Operator: With that, I'd like to open the call to any questions. Thank you. Ladies and gentlemen, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. Enjoy your question. You may press star 1 1 again.
Speaker Change: With that, I'd like to open the call up to any questions.
Operator: Please sign, gentlemen, to ask a question. You will need to press star 11 on your telephone and wait for your name to be announced. To enjoy a question, you may press Star 11 again. Please then, buy all the complican airwaster, and we have a question coming from Delano M. Marin with tax. You're on an open. Marla Marin, you're on an open. Yes, thank you very much. Sorry. So, I think that you've said in the past that the DTC channel is viewed as an important new channel going forward.
Speaker Change: Thank you. Ladies and gentlemen, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced.
Operator: Please stand by while we compile the Q&A roster. And we have a question coming from the line of M. Marin on Sex. Your line is open. Marla Marin, Yolanda Filson.
Speaker Change: To withdraw your question, you may press star 11 again. Please stand by while we compile the Q&A roster.
Speaker Change: And we have a question coming from the
Sharlyn Simmons: Yes, thank you very much. Sorry. So, I think that you've said in the past that the DTC channel is, you know, viewed as an important new channel going forward. Can you give us any color on how you see that channel gaining traction and, you know, what your plans are to try to promote sales through DTC? Yes, thank you for the question, Marla. Hope you're well.
Speaker Change: Karla Meran. Hélène Filton.
Speaker Change: Yes, thank you very much. Sorry. So I think that you've said in the past
Karla Meran: that the DTC channel is, you know, viewed as an important new channel going forward. Can you give us any color on how you see, you know, that channel gaining traction and, you know, what your plans are to try to promote?
Marla Marin: Can you give us any color on how you see that channel gaining traction and what your plans are to try to promote sales through DTC?
Charlene Simmons: Yes, thank you for the question, Marla. I hope you're well. Yes, DTC, I think is a very important channel for us. And when we talk about DTC, we're really talking about not just sales from a website or even app store downloads and sales for our Astra product, but we're also talking about the work that we're doing on Amazon. And for anybody who's ever worked with Amazon, they are able to miss, and they are not an easy organization to work with often as a corporate entity. And so we continue to make strides there, reducing our costs, participating in the Amazon programs for shipping to ensure that we actually get products into the hands of the customers as quickly as possible.
Speaker Change: south through DTC.
Sharlyn Simmons: So, yes, DTC, I think, is a very important channel for us. And when we talk about DTC, we're really talking about not just sales from a website or even app store downloads and sales for our Astra product, but we're also talking about the work that we do on Amazon. And for anybody who's ever worked with Amazon, they are a behemoth, and they are not an easy organization to work with often as a corporate entity.
Speaker Change: Yes, thank you for the question Marla. I hope you're well.
Speaker Change: So, yes, DTC I think is a very important channel for us and when we talk about DTC we're really talking about not just sales from a website.
Speaker Change: or even App Store downloads and sales for our Astra product. But we're also talking about the work that we're doing on Amazon.
Speaker Change: And for anybody who's ever worked with Amazon, they are a behemoth and they are not an easy organization to work with often as a corporate entity.
Sharlyn Simmons: And so we continue to make strides there, reducing our cost, participating in the Amazon programs for shipping to ensure that we actually get products into the hands of customers as quickly as possible. And we have now launched our mini product as well as our Guardian 9-1-1 product, which is one of our key heritage products on that particular platform as well. So we will continue to basically promote and look for ways to increase those opportunities.
Speaker Change: And so we continue to make strides there, reducing our costs.
Speaker Change: participating in the Amazon programs for shipping to ensure that we actually get products into the hands of the customers as quickly as possible.
Charlene Simmons: And we have now launched our mini product, as well as regarding my one-one product, which is one of our key heritage sort of products on that particular platform as well. So we will continue to basically promote and look for ways to increase those opportunities. We also are very focused on working with a number of different sort of DTC at opportunities, always constantly looking at, of course, increasing the lifetime value of the customer and basically doing acquisition as low as possible.
Speaker Change: And we have now launched our mini product, as well as our Guardian 9-1-1 product.
Speaker Change: which is one of our key heritage sort of products on that particular platform as well. So we will continue to basically promote and look for ways to increase those opportunities.
Sharlyn Simmons: We also are very focused on working with a number of different D2C ad opportunities, always constantly looking at, of course, increasing the lifetime value LTV of the customer and basically doing acquisition as low as possible. We are a team of startup people with a corporate background, but in our hearts, we're sort of startup people. And so our interest has always been to basically deal with acquisition to be nimble because that's the size of our company and to basically acquire a customer at as low a cost as we can in a very competitive market.
Speaker Change: We also, you know, are very focused.
Speaker Change: working with a number of different sort of D2C ad opportunities, always constantly looking at, of course, increasing the lifetime value, LTV, of the customer.
Charlene Simmons: We are a team of startup people with corporate background, but in our hearts we're sort of startup people. And so our interest has always been to basically deal with acquisition to be nimble because that's the size of our company and to basically acquire a customer as much low cost as we can in a very competitive market. I think we have to note here that our competitors, you know, medical quality end, which is a privately held company; some of these folks have been in the market DTC for more than 10 years. And so DTC is very, very new for us, and so we continue to make very good strides among those ones.
Speaker Change: and basically doing acquisition as low as possible.
Speaker Change: We are a team of startup people.
Speaker Change: with corporate background, but in our hearts we're sort of startup people and so our interest has always been to basically deal with acquisition to be nimble, because that's the size of our company, and to basically acquire a customer with as much...
Sharlyn Simmons: I think we have to note here that our competitors, Medical Guardian, which is a privately held company, some of these folks have been in the D2C market for more than 10 years. And so D2C is actually very, very new for us. And so we continue to make very good strides along the way. Okay, thank you.
Speaker Change: low-cost as we can in a very competitive market. I think we have to note here that our competitors, you know, Medical Guardian, which is a privately held company, some of these folks have been in the market D2C for more than 10 years.
Speaker Change: Right? And so, you know, D2C is actually very, very new for us, and so we continue to make very good strides along those lines.
Charlene Simmons: Okay, thank you. And the one last question, which is about after, now that you've had not a very long timeline, but sometime on your belt, it after represents a new target market, I believe, a new demographic. So, in terms of, you know, addressing that demographic going forward, are you thinking that there will be other opportunities to provide services and or pot new products for that particular demographic or for the demographics, I should say, that fallout thought of your traditional core demographic. Yes, to be candid, the astral launch is an exciting one for us. You know, we have been and continue to love the silver tsunami that comes along with our per's marketplace, right?
Sharlyn Simmons: And then one last question, which is about AFTRA. You know, now that you've had not a very long timeline but some time under your belt, AFTRA represents a new target market, I believe, a new demographic. So, in terms of, you know, addressing that demographic going forward, are you thinking that there will be other opportunities to provide services and or new products for that particular demographic or for the demographics, I should say, that fall outside of your traditional core demographics?
Speaker Change: Okay, thank you.
Speaker Change: And then one last question, which is about after, you know, now that you've had not a very long timeline, but some time, you know, under your belt.
Speaker Change: It actually represents a new target market, I believe, a new demographic.
Speaker Change: So, in terms of, you know, addressing that demographic going forward, are you thinking that there will be other opportunities to provide services and or new products?
Speaker Change: for that particular demographic, or for the demographics, I should say, that fall outside of your traditional core demographic.
Sharlyn Simmons: Yes, it's, to be candid, the Astra launch is an exciting one for us. I mean, you know, we have been and continue to love the silver tsunami that comes along with our PERS marketplace, don't you? There's nothing, it's nothing to sneeze at when one-fourth is, you know, when your customers make up one-fourth of the US demographic, and that's, you know, nothing compared to a global sort of look in terms of, you know, how many people are turning 65 and over, and of those 65, one in four is falling.
Speaker Change: Yes, it's...
Speaker Change: To be candid, the astro launch is an exciting one for us.
Speaker Change: I mean, you know, we have been and continue to love the Silver Tsunami that comes along with Arpers.
Charlene Simmons: It's nothing to see that when one fourth is, you know, when your customers make up one fourth of the U.S. demographic and that's, you know, nothing compared to a global sort of like look in terms of, you know, how many people are turning 65 and over. And of that 65, 1 and 4 following. So we continue to be very bullish on, you know, the aging silver tsunami market.
Speaker Change: marketplace, right? There's nothing, it's nothing to sneeze at when one-fourth is a, you know, when your customers make up one-fourth.
Speaker Change: of the U.S. demographic and that's, you know, nothing compared to a global sort of like look in terms of, you know, how many people are turning 65 and over.
Sharlyn Simmons: So we continue to be very bullish on, you know, the aging silver tsunami market. But the Astra market really opens us up to a completely new TAM for the company. It really also allows us to do a lot of things that are very different in terms of the type of partnerships that we can participate in. You know, the reality is that 66% of Americans are afraid to do outdoor activities. I mean, I'm, you know, I'm saddened. I had friends who actually had tickets to go see Taylor Swift in Austria, of all places, and it was canceled.
Speaker Change: And of that 65, 1 in 4 are falling. So we continue to be very bullish on the aging silver tsunami market.
Charlene Simmons: But the astral market really opens us up to a completely new pan for the company. It really also allows us to do a lot of things that I think are very different in terms of the type of partnerships that we can participate in. You know, the reality is that 66% of Americans are afraid to do outdoor activities. I mean, I'm, you know, I'm saddened. I had friends who actually had tickets to go see Taylor Swift in Austria while places. Yeah, it was canceled. And so I think that's where a lot of people's personal safety is really top of mind for a lot of them.
Speaker Change: but
Speaker Change: The astral market really opens us up to
Speaker Change: a completely new TAM.
Speaker Change: It really also allows us to do a lot of things that I think are very different in terms of the type of partnerships that we can participate in. You know,
Speaker Change: The reality is that 66% of Americans are afraid to do outdoor activities.
Speaker Change: I'm saddened. I had friends who actually had tickets to go see Taylor Swift in Austria, of all places.
Sharlyn Simmons: And so I think that for a lot of people, personal safety is really top of mind for a lot of them, you know, from big events like that to, you know, going to a festival. People don't feel safe anymore. And so the Astra product actually opens us up to a marketplace of people. I mean, 66% of Americans don't feel good about doing outdoor activities, like concerts, events, going jogging.
Speaker Change: Yeah, it was canceled.
Speaker Change: And so I think that for a lot of people personal safety is really top of mind for a lot of them, you know, from big events like that to, you know, going to a festival, people don't feel safe anymore.
Charlene Simmons: You know, from big events like that to, you know, going to a festival. People don't feel safe anymore. And so the astral product actually opens us up to a marketplace of people. I mean, 66% of Americans not feeling good about doing outdoor activities, but concerts, events, going jogging. That's really rather shocking. And so, you know, we think that that marketplace represents a very solid opportunity for us to grow our pie. But also that this is a market and the astral product allows us to also partner in a B to B to C side. And so you will see us actually, you know, talking about partnerships in this category a heck of a lot more in terms of who we could work with to make these products available.
Speaker Change: And so the Astra product actually opens up us up to a marketplace of people. I mean, 66% of Americans not feeling good about doing outdoor activities like concerts.
Sharlyn Simmons: That's really rather shocking. And so, you know, we think that that marketplace represents a very solid opportunity for us to grow our pie, but also that this is a market, and the Astra product allows us to also partner, on a B2B2C side. And so you will see us actually talking about partnerships in this category a heck of a lot more in terms of who we can work with to make these products available, sort of business partnerships and distribution partnerships. So it's a very exciting spot to be in. Okay, thank you very much. Thank you. I am showing no further questions in the queue at this time.
Speaker Change: events go in shogging, that's really rather shocking and so you know we think that that marketplace represents a very solid opportunity for us to grow our pie but also that this is a market and the Aster product allows us to also partner.
Operator: Good afternoon, and thank you for participating in today's second quarter, 2024 conference call. Joining me from Logicmark today are Charlene Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address Logicmark's expectations for future performance, or operational results in anticipated product launches.
Speaker Change: in a B2B2C side. And so you will see us actually, you know, talking about partnerships in this category a heck of a lot more in terms of who we could work with to make these products available to sort of business partnerships and distribution partnerships.
Charlene Simmons: To sort of business partnerships and distribution partnerships. So it's a very exciting spot to be in.
Marla Marin: Okay, thank you very much. Thank you.
Speaker Change: So it's a very exciting spot to be in.
Speaker Change: Okay, thank you very much.
Operator: For looking statements involved risk and other factors that make up action results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Logicmark's most recent filed annual report on form 10K, and subsequent periodic reports filed with the SEC and Logicmark's press release that accompanies this call particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today on the 13th, 2024, except as required by law, Logicmark's explains any application to publicly update or revise any information to reflect events or circumstances that could occur after this call.
Operator: Now I'm showing no further questions in the queue at this time.
Speaker Change: Thank you.
Sharlyn Simmons: I will now turn the call back over to Sharlene for any closing remarks. Thank you, Olivia. In summary, I'd like to say that I'm more encouraged than ever about our future prospects. Studies show that the elderly population is living longer and preferring to age in place, and personal safety concerns are at an all-time high. We've made great strides in transforming Logicmark into a supplier of innovative, reactive, as well as predictive solutions to improve personal safety and quality of life. Now, it is the right time for us to continue investing in the personal safety and elder care market.
Charlene Simmons: I will not turn the call back over to the Shallown for any closing remarks. Thank you, Olivia. In summary, I'd like to say that I'm more encouraged than ever about our future prospects. Studies show that the elderly population is living longer and prefer the age and place, and personal safety concerns are all time high. We've made great strides in transforming Logic Mark into a supplier of innovative, reactive, as well as predictive solutions to improve personal safety and quality of life. This is the right time for us to continue investing in the personal safety and elder care markets.
Speaker Change: I'm showing no further questions in the queue at this time. I will now turn the call back over to Shalim for any closing remarks.
Shalim: Thank you, Olivia.
Shalim: In summary, I'd like to say that I'm more encouraged than ever about our future prospects.
Speaker Change: Studies show that the elderly population is living longer and prefer to age in place and personal safety concerns are at all-time high.
Speaker Change: We've made great strides in transforming LogicMark into a supplier of innovative, reactive, as well as predictive solutions to improve personal safety and quality of life. This is the right time for us to continue investing in the personal safety and elder care markets.
Charlene Simmons: We appreciate the support that all our stock stakeholders have provided thus far, and we look forward to keeping you updated on our development.
Charlene Simmons: It is now my pleasure to turn the call over to Charlene Simmons. Thank you, Olivia. I'd like to start by congratulating the team for the progress that we've made thus far in transforming ourselves to a personal safety company, a solutions provider that meets the needs of a much broader audience of people had fairly stages and with various needs in their lives.
Speaker Change: We appreciate the support that all our stakeholders have provided thus far, and we look forward to keeping you updated on our developments.
Charlene Simmons: Thank you.
Operator: We appreciate the support that all our stakeholders have provided thus far, and we look forward to keeping you updated on our progress. Thank you. Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.
Operator: Please, and shall amend our Council on Conference for today. Thank you for your participation.
Speaker Change: Thank you.
Operator: You may now disconnect.
Speaker Change: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.
Charlene Simmons: When I first joined SCEO, we were a hardware company generating one-time revenue from the sale of our personal emergency response systems to the government's Veterans Administration. What we had and still do have a long-standing relationship meeting the needs of our value veterans, I knew there was a greater potential, so as the team came together, we laid out our vision for care village, a connected care ecosystem that is both reactive and prodigious.
Mark Archer: Mark Archer, Marla Marin, LogicMark Mark Archer, Marla Marin, LogicMark
Charlene Simmons: For those of you familiar with the technology space, you know that it takes time to upgrade a technology stack. When I arrived, the company's focus was very narrow, and innovation had stagnated with nothing new introduced since 2015.
Charlene Simmons: Today, we are very different. We have had our heads down since mid-2021 focusing on paving the right path to expand our footprint in a much larger personal safety and elder care market. As a result, we have modernized existing products and developed new solutions. We now offer five per solutions that include features such as advanced fall detection, geo-fensing for memory care, connect the cloud, and care-taker app support. This also includes the use of big data, sensors, artificial intelligence, and machine learning.
Charlene Simmons: We've also introduced, um, my apologies. We've also introduced a personal safety solution with the Astrosafety app, which comes with a blue sheet button. With our new technology stack, there are now opportunities to expand and add on features that could be tied to a partner's technology or services, and it also allows us to accommodate white labeling and other opportunities for partnerships. We've also been building a strategic intellectual property fence around our care village.
Charlene Simmons: Since I arrived at the company in mid-2021, we filed 14 patents. Our newest patent filed this week relates to risk and safety metrics, calculation, and assessment using sensors and algorithms, which integrate with our peers and personal safety products and services. Other patents cover areas such as artificial intelligence, game theory, digital twins, environmental sensing, personalized behavior monitoring, and more. So we built a robust IP portfolio, which is remarkable for a team of our size and in such a short period of time.
Charlene Simmons: And this asset will serve as another catalyst to grow sales through potential licensing agreements. In the months ahead, we'll be focusing on expanding sales and marketing efforts across all our customer channels, including government, B2C, and B2B.
Charlene Simmons: I'm proud of the fact that we have been both. We have both at home and on-the-go solutions at varying price points. And with both reactors and predictive solutions, we now have opportunities for both one time and recurring revenue solutions with higher margins. I encourage every one to visit our logicmark.com website and take the product quiz to see which solutions that you need.
Charlene Simmons: One of our latest products is the Freedom Alert Mini. It's sleek, convenient, and less than two ounces, and packed with innovative features, so it's the perfect on-the-go safety device. It uses patents at fall detection, GPS location services, water visits, and a free caregiver companion app. The device also supports geofencing, allowing caretakers to establish a predefined area for their loved one safety. This is especially crucial for those with Alzheimer's or other forms of dementia, who may tend to wander. The Freedom Alert Mini is a monitor device that is iOS or Android compatible, and rents an any 4G LTE cellular network and is supported by a 24-7 U.S.-based care team.
Charlene Simmons: Another one of our products is this Astra safety app, which is a real game changer for personal safety. This turns your smartphone into a personal safety device with 24-7 monitoring, where you can select which friends and family members can follow your jogging route, or track your attendance at an event for additional safety support.
Charlene Simmons: Whether you're a college student on campus, your own worker, a real estate agent hosting an open house by yourself, an adventurous senior exploring nature, a caregiver in a sandwich generation, aster's innovative features offer unparalleled pieces. These are great examples of the work that we have done to expand our product offering in personal safety and elder care.
Mark Archer: At this point, I'll hand over the call to Mark to summarize our financial results, including the recent capital days that we completed. Yeah, thank you, Shywin. Revenue for the second quarter ended June 30th, 2024, was $2.3 million, up slightly compared with the same period last year, a higher average selling price more than offset softness and unit sales. The gross margin was a more normalized 67% for the three months ended June 30th, 2024, down from the 69% for the three months ended in June of 2023.
Mark Archer: Gross profit in the second quarter of this year was relatively unchanged at 1.6 million compared with 1.6 million in the same period last year. Total operating expenses for the second quarter were $3.6 million versus $3.9 million last year, a decrease of 6%. Reduced operating expenses were driven by lower spending in product development and technical engineering, partially offset by higher spending in sales, marketing, and advertising, as the company pivots from developing new products to putting those products in the hands or customers.
Mark Archer: General and administrative costs also fill due to lower recruiting, professional and legal fees. The net loss attributable to common shareholders for the second quarter was $2.1 million compared with the net loss of $2.3 million in the same period last year. On a fully diluted basis, the net loss per share was 96 cents compared with the net loss of $1.83 per share in the prior period. As of June 30, 2024, our cash balance was $3.0 million, and Shyline referenced, on August 5, we closed on a registered secondary offering priced at the market. Gross proceeds before deducting placement agencies and estimated offering expenses were approximately $4.5 million. We intend to use the net proceeds from the offering for working capital and general corporate purposes.
Mark Archer: We also plan on holding a special meeting of stockholders on October 1st, which among other things will seek approval for a reverse split of the company shares of common and series-seat preferred stock, allowing us to regain compliance with NASDAQ's minimum bid price requirement, as well as to approval for the issuance of 20% or more of our shares of common stock in connection with the just completed secondary offering. Shareholders of record as of August 5, 2024 will be entitled, to vote.
Operator: With that, I'd like to open the call up to any questions. Thank you. Please sign gentlemen to ask a question. You will need to press star 11 on your telephone and wait for your name to be announced. To enjoy a question, you may press star 11 again.
Marla Marin: Please then, buy all the complican airwaster and we have a question coming from Delano M. Marin with tax. You're on a open. Marla Marin, you're on a open. Yes, thank you very much. Sorry. So, I think that you've said in the past that the DTC channel is viewed as an important new channel going forward. Can you give us any color on how you see that channel gaining traction and what your plans are to try to promote sales through DTC?
Marla Marin: Yes, thank you for the question, Marla. I hope you're well. Yes, DTC, I think is a very important channel for us. And when we talk about DTC, we're really talking about not just sales from a website or even app store downloads and sales for our Astra product, but we're also talking about the work that we're doing on Amazon. And for anybody who's ever worked with Amazon, they are able to miss and they are not an easy organization to work with often as a corporate entity.
Marla Marin: And so we continue to make strides there reducing our costs, participating in the Amazon programs for shipping to ensure that we actually get products into the hands of the customers as quickly as possible. And we have now launched our mini product as well as regarding my one-one product, which is one of our key heritage sort of products on that particular platform as well. So we will continue to basically promote and look for ways to increase those opportunities.
Marla Marin: We also are very focused on working with a number of different sort of DTC at opportunities, always constantly looking at, of course, increasing the lifetime value of the customer and basically doing acquisition as low as possible. We are a team of startup people with corporate background, but in our hearts we're sort of startup people. And so our interest has always been to basically deal with acquisition to be nimble because that's the size of our company and to basically acquire a customer as much low cost as we can in a very competitive market.
Marla Marin: I think we have to note here that our competitors, you know, medical quality end, which is a privately held company, some of these folks have been in the market DTC for more than 10 years. And so DTC is very, very new for us, and so we continue to make very good strides among those ones.
Charlene Simmons: Okay, thank you. And the one last question, which is about after, now that you've had not a very long timeline, but sometime on your belt, it after represents a new target market, I believe, a new demographic. So in terms of, you know, addressing that demographic going forward, are you thinking that there will be other opportunities to provide services and or pot new products for that particular demographic or for the demographics, I should say, that fallout thought of your traditional core demographic.
Charlene Simmons: Yes, to be candid, the astral launch is an exciting one for us, you know, we have been and continue to love the silver tsunami that comes along with our per's marketplace, right? It's nothing to see that when one fourth is, you know, when your customers make up one fourth of the U.S, demographic and that's, you know, nothing compared to a global sort of like look in terms of, you know, how many people are turning 65 and over.
Charlene Simmons: And of that 65, 1 and 4 following. So we continue to be very bullish on, you know, the aging silver tsunami market. But the astral market really opens us up to a completely new pan for the company. It really also allows us to do a lot of things that I think are very different in terms of the type of partnerships that we can participate in. You know, the reality is that 66% of Americans are afraid to do outdoor activities.
Charlene Simmons: I mean, I'm, you know, I'm saddened. I had friends who actually had tickets to go see Taylor Swift in Austria while places. Yeah, it was canceled. And so I think that's where a lot of people personal safety is really top of mind for a lot of them. You know, from big events like that to, you know, going to a festival. People don't feel safe anymore. And so the astral product actually opens us up to a marketplace of people.
Charlene Simmons: I mean, 66% of Americans not feeling good about doing outdoor activities, but concerts, events, going jogging. That's really rather shocking. And so, you know, we think that that marketplace represents a very solid opportunity for us to grow our pie. But also that this is a market and the astral product allows us to also partner in a B to B to C side. And so you will see us actually, you know, talking about partnerships in this category, a heck of a lot more in terms of who we could work with to make these products available. To sort of business partnerships and distribution partnerships. So it's a very exciting spot to be in.
Marla Marin: Okay, thank you very much. Thank you.
Operator: Now I'm showing no further questions in the queue at this time.
Charlene Simmons: I will not turn the call back over to the shallown for any closing remarks. Thank you, Olivia. In summary, I'd like to say that I'm more encouraged than ever about our future prospects. Studies show that the elderly population is living longer and prefer the age and place and personal safety concerns are all time high. We've made great strides in transforming logic mark into a supplier of innovative, reactive, as well as predictive solutions to improve personal safety and quality of life.
Charlene Simmons: This is the right time for us to continue investing in the personal safety and elder care markets. We appreciate the support that all our stock stakeholders have provided thus far, and we look forward to keeping you updated on our development.
Operator: Thank you.
Operator: Please, and shall amend our Council on Conference for today. Thank you for your participation. You may now disconnect. Mark Archer, Marla Marin, Logicmark Mark Archer, Marla Marin, Logicmark