Zacks Small Cap Research – LGMK: Accelerating Momentum, Growing Product Suite Bode Well – Technologist

By M. Marin

NASDAQ:LGMK

READ THE FULL LGMK RESEARCH REPORT

Comparisons expected to be more apples-to-apples going forward

LogicMark, Inc. (NASDAQ:LGMK) reported 2023 results last week. Our key takeaways are:

➢ Momentum improved significantly towards the end of the year

➢ Feedback on recently launched new products has been positive

➢ The product pipeline continues to grow

➢ We do not anticipate additional goodwill impairment charges

Although 2023 revenue declined 17% year-over-year, 4Q23 revenue was up 13%, as one-time replacement sales as carriers transitioned away from 3G technology in 2022 ended and comparisons become more apples-to-apple. We believe this bodes well going forward, particularly as feedback on recently launched new products has been positive and the company’s product pipeline continues to grow.

The company has expanded its software and technology product portfolio, launching two new products in 2023 and one since 2024 began: Freedom Alert Plus, Freedom Alert Mini and Aster. The Freedom Alert Plus is a Wi-Fi and touch-screen-enabled device. The 4G Freedom Alert Mini is a smaller device meant to be mobile for people with more active lifestyles. The new products each include monthly 24/7 monitoring service by U.S.-based emergency operators and patented multi-sensor fall detection technology. LGMK continues to expand its product line within the personal emergency response systems (PERS) space as it develops its Care Village ecosystem. More recently, LGMK introduced Aster, which is a software application designed to broaden its target market beyond the senior demographic and their caregivers.

The company also advanced its goal to drive sales through the online and direct-to-consumer (DTC) retail channel. Freedom Alert Plus & Freedom Alert Mini are available at LogicMark’s new store on Amazon.com and e-commerce website. Aster is a subscription-based software app available on the Apple and Google Play stores. LGMK believes Aster illustrates how well it can leverage its Caring Platform as a Service (CPaaS) model to launch new IoT solutions to help ensure safety for a broadening group of users and enable caregivers & family to monitor the health and safety of loved ones remotely

Importantly, the Aster launch marks LogicMark’s expansion beyond the traditional demographic market for PERS devices, as noted, and also the first software app that can be used without dedicated hardware. The company is developing and introducing new products and services, as it moves forward in developing its connected platform. LGMK has indicated that future innovations likely will incorporate additional technologies to monitor health data and provide additional services.

Growing product pipeline as company continues to innovate…

Going forward, the company plans to expand its cellular-based product line and features to provide multi-layer safety support using CPaaS and also to integrate with certain 3rd-party connected and wearable devices and services. The company also expects other hardware companies to work with its platform and is collaborating with companies so that third-party hardware manufacturers can partner to use its software and software services. This strategy is expected to enhance customer flexibility on the hardware side and provide strong services. The company expects to license its software, much in the way that Google does.

As the company is transitioning to a CpaaS model, LGMK intends to maintain and grow its traditional business. A key component of the transition is greater focus on online and DTC channels, as noted. Traditionally, the company’s PERS technologies have been sold through retailers and distributors, the LogicMark website as well as through the United States Veterans Health Administration (VHA), which is an important partner for LGMK.

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