LogicMark Stock

LogicMark, Inc. (LogicMark) provides personal emergency response systems ('PERS'), health communications devices, and Internet of Things ('IoT') technology that creates a connected care platform.

The company's devices provide people with the ability to receive care at home and age independently. The company's PERS devices incorporate two-way voice communication technology directly in the medical alert pendant and provide this life-saving technology at a customer-friendly price point aimed at everyday consumers. These PERS technologies are sold direct-to-consumer through the company's eCommerce website, through dealers and distributors, as well as through the United States Veterans Health Administration (the 'VHA').

The company was awarded a contract by the U.S. General Services Administration that enables the company to distribute its products to federal, state, and local governments (the 'GSA Agreement').

LogicMark builds technology to remotely check, manage and monitor a loved one's health and safety. The company is focused on modernizing remote monitoring to help people stay safe and live independently longer.

PERS, also known as a medical alert or medical alarm system, is designed to detect a threat that requires attention and then immediately contacts a trusted family member and/or the emergency medical workforce. The PERS market is generally divided into direct-to-consumer and healthcare customer channels. With the advent of new technologies, demographic changes, and the company's five previously stated trends in healthcare, an expanded opportunity exists for LogicMark to provide at-home and on-the-go health and safety solutions to both customer channels.

For LogicMark, growing the healthcare opportunity relies on partnering with organizations, such as government, Medicaid, hospitals, insurance companies, managed care organizations, affiliates, and dealers.

The company's longstanding partnership with the VHA is a good example. LogicMark is selling PERS devices to the U.S. government. The signing of the GSA Agreement in 2021 further strengthens the company's partnership with the government and expands the company's ability to capture new sales. The company envisions a focus on growing the healthcare channel during 2023 given lower acquisition costs and higher customer unit economics.

In addition to the healthcare channel, LogicMark expects to grow sales volume through its direct-to-consumer channel. It is estimated that approximately 70% of PERS customers fall into the direct-to-consumer category. Family members regularly conduct research and purchase PERS devices for their loved ones through online websites. The company expects traditionally higher customer acquisition costs to be balanced by higher sales growth and lower sales cycles with an online channel.

LogicMark will also pursue research and development partnerships to grow the company's product offering.

PERS Products

LogicMark produces a range of products within the PERS market as a result of the company's 2016 acquisition of LogicMark, LLC, the former wholly owned subsidiary of the company and now a division of the company. The company has differentiated itself by offering 'no monthly fee' products, which only require a one-time purchase expense, instead of a contract with recurring monthly charges.

LogicMark offers both traditional (i.e., landline), mPERS (i.e., cell-based), and Internet (i.e., Wi-Fi-based) solutions. The company's no monthly fee products are sold primarily through the VHA.

In the past, LogicMark has offered monitored products that were exclusively sold to consumers by monitored dealers and distributors. LogicMark sold its devices to the dealers and distributors, who in turn offered the monitoring component to their consumers as part of their product and service offerings. The dealer would own the device and then lease the PERS hardware to the consumer. The dealers would charge the consumers a monthly monitoring fee for the lease of the PERS equipment and associated monitoring service. These products were monitored by a third-party central station. During the first quarter of 2023, the company began selling the LifeSentry Monitored PERS product direct-to-consumers through the company's website.

Business Strategy

In 2023, the company plans to continue investing in a number of new verticals, such as consumer, pro-care / healthcare and corporate benefits lines of business and intend to expand further into the company's established government business.

The company's customers' increasingly mobile and active lifestyles have created new opportunities for the company in the fast-growing market for self-monitored products and mobile technology. The company plans to continue to grow its unmonitored PERS business, which for those who are on low or fixed income and/or require long charge devices, is potentially a life-saving product. However, the company sees strong opportunities to build and expand the company's business into monitored services. The company plans to expand its cell-based (mPERS) product line to provide a multi-layer safety support using CPaaS, LogicMark's Caring Platform as a Service, which allows the company to integrate with various third-party connected and wearable devices so that the company can serve its customers whether they are at home or on-the-go.

The company plans to continue to expand its business into the 'aging with independence' market, as well as expanding further into the Caring Economy by providing enhanced products and services that make the caring for loved ones easier. Further, as the in-home professional care business continues to expand, this is an opportunity for LogicMark to extend its products and services to meet the increasing needs of the growing Caring Economy. The company intends to do so by expanding the tools for caretakers to better manage both the care of their elderly living independent lives, and to provide mobile and personal safety to others in their care circle so they too can feel safe on the go. The company wants its products and services to be available for anyone with personal safety concerns, including children or students who are navigating new environments and social situations for the first time.

Intellectual Property

The company had filed thirty-two patent applications, twenty-one of which have been awarded as of December 31, 2022.

Government Regulations

The company obtained GSA approval to sell its products to the federal government when it was awarded the five-year GSA Agreement in July 2021.

In addition, the company's devices are required to meet Federal Communications Commission ('FCC') approval, specifically relating to FCC Part 15 requirements for Class B digital devices. FCC Part 15 covers the regulations under which a device emits radio frequency energy by radiation, and the technical specifications, administrative requirements, and other conditions relating to the marketing of FCC Part 15 devices. The FCC's definition of a Class B Digital Device is one which is marketed for use in a residential environment, and FCC Part 15 compliance means that the company's devices may not cause harmful interference, must accept interference from other devices, and all device changes must be approved by the manufacturer. All of the company's devices are FCC Part 15 compliant Class B digital devices. All of the company's devices are manufactured to never exceed FCC specific absorption rate (SAR) limitations for exposure to radio frequency emissions for body worn devices.

History

The company was founded in 2006. It was incorporated in the state of Delaware in 2012. The company was formerly known as Nxt-ID, Inc. and changed its name to LogicMark, Inc. in March 2022.