By M. Marin
NASDAQ:LGMK
READ THE FULL LGMK RESEARCH REPORT
Strong 3Q24 results driven by expanded product portfolio, Freedom Alert Mini; Freedom Alert Max introduced subsequently
Last week LogicMark, Inc. (NASDAQ:LGMK) reported strong 3Q24 results, as the company transforms its business from a hardware company generating one-time revenue from sales of personal emergency response systems (PERS) to a broader personal safety company offering solutions for a substantially wider target market. Over time, the company expects new products and services to both diversify and augment its revenue streams and contribute to growing recurring revenues. A key component of the growth strategy is to expand the product line and boost awareness and sales of a growing suite of products and services. LGMK also implemented a 1:25 reverse stock split of outstanding LGMK common shares and series C preferred shares. As a result of the reverse share splits, the company also regained compliance with the Nasdaq listing rule requiring that listed shares maintain a minimum price of $1.00 per share. The company has also adopted a shareholder rights plan.
LogicMark’s strong 3Q24 results were driven primarily by its expanded product portfolio. Revenue advanced 14% year-over-year to $2.7 million. The company attributed the improvement to higher sales of the Guardian Alert 911 Plus and the recently released Freedom Alert Mini PERS hardware device. The Freedom Alert Mini is LGMK’s new mobile medical alert device.
The Freedom Alert Mini offers fall detection and GPS location in a compact sized mobile device that enables seniors to remain connected to caregivers and family while maintaining their mobility. The company believes its mini size makes it convenient for wearers to use it daily and keep up an independent lifestyle. In the U.S., there are more than 50 million people 65 years old or older. Moreover, seniors increasingly want to live independently. In fact, more than 25% of U.S. seniors live alone. The company’s technology is designed to help monitor people remotely so that care givers and family can make sure they are safe. LGMK’s new Care Village ecosystem is a proprietary software stack that includes an iOS and Android app, proprietary middleware, AI-enabled cloud infrastructure and subscription services that are expected to enable LogicMark to create new higher margin added revenue streams.
The device’s 4G LTE connectivity provides two-way communication regardless of location. The fall detection and GPS location features in the event of a fall or other issue increase the wearer’s sense of confidence. Moreover, reflecting the R&D behind the technology, management believes that the quality of its fall detection solutions is better than technology in competing products. Based on early sales and feedback, the company is optimistic about the Freedom Alert Mini. LGMK sold 1,106 units in 3Q24, which compares to 191 units sold in the prior quarter and implies, we believe, that the product is gaining traction.
Advanced fall detection, geofencing for memory care, connected cloud & caretaker app support among many features as product suite expands…
Today, LogicMark announced the launch of the Freedom Alert Max. The new product offers over-the-air updates, regular alerts including medication reminders and others, as well as fall detection technology. Freedom Alert Max offers geofencing for patients with dementia and Alzheimer’s, and cellular communication technology, among multiple features. The company believes it provides the convenience of a cell phone, while addressing the growing need for innovative mobile technology for seniors.
The company has expanded its software and technology portfolio and, with the Freedom Alert Max, now has multiple PERS solutions in its suite. Product features include advanced fall detection, geofencing for memory care, connected cloud and caretaker app support, leveraging Big Data, sensors, AI and ML (machine learning). Most PERS products are focused on reactive technology, but the company’s focus is both to improve reactive technology versus competitors’, upgrade continuously and provide fewer false positive triggers. The company’s developing AI technology is expected to detect pattern changes that might indicate potential for falls (predictive technology), as well as health communications services such as medicine reminders (preventative technology). The company believes false positive triggers frequently make people not want to wear PERS devices. By incorporating enhanced sensors, algorithms, and machine learning technology to analyze movement patterns and other relevant data, the company expects to report and even predict the likelihood of a fall more accurately than competitive devices that rely on legacy technologies. LGMK has indicated that future innovations likely will incorporate additional technologies to monitor health data and provide additional services.
Stockholder rights plan implemented
Separately, following a special shareholders meeting, LogicMark management, the board and their legal advisors agreed to implement a stockholder rights plan to protect against what appeared to be one investor’s intent to take control of the board and the company and potentially implement changes that might result in the company’s insolvency. The rights agreement allows for a possibility of a dividend of a new series G preferred stock to all holders of common stock other than an acquiring person/entity, to be triggered if/when a person, entity or group acquires beneficial ownership of 15% or more of outstanding LGMK shares (subject to certain exceptions).
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