LogicMark Launches Critical New Device To Save Lives

Benzinga

Chia-Lin Simmons, CEO of LogicMark, was recently a guest on Benzinga's All-Access.  LogicMark is a leading provider of personal emergency response systems (PERS), health communications devices and IoT technologies to create a connected care platform. Its products help keep at-risk populations – young and old – safe. LogicMark just launched Freedom Alert Max, its new premiere safety smartphone. Its sleek design makes it a "PERS device in disguise."

Transcript

00:00And it is my pleasure to welcome in the CEO of LogicMark, Shailen Simmons.

00:08Very just great to be with you today.

00:10Happy holidays.

00:11Happy holidays, Dan.

00:12It's great to be here with you as well.

00:14Yeah, great to see you again.

00:15We saw you at one of our great conferences.

00:16So let's let's talk about LogicMark.

00:18Give us an overview of LogicMark, Shailen.

00:21Sure.

00:21LogicMark is a company that's been around since 2006, and we are

00:25in a personal safety space.

00:26And so we develop great technology for both sort of helping the elderly,

00:31but also providing personal safety for everyone.

00:34Yeah, you know, when you look at how your devices work, let everyone know

00:38how that works and what makes them stand out in the field right now.

00:41Sure.

00:42That's a really great question.

00:43So, look, I mean, medical alerts has never been something that people

00:46consider to be super sexy.

00:48Let's be honest, right?

00:49It's the I fall and I can't get up kind of business.

00:52But, you know, we really entered this business so that we can actually

00:54create really amazing technology that's going to just blow that kind of old

00:57concept out of the, you know, out of the skies.

01:00Right.

01:00So we've been around for, as I mentioned, since 2007, I joined a company in

01:052021 coming out of some, you know, I would say pretty cool tech companies

01:09such as Google and Amazon, and my job has been to basically create some

01:12amazing technology to really transform this business, much like, you know,

01:16in the way what we used to all be really happy with our Motorola razors.

01:19And then the iPhone came along.

01:20Right.

01:21So, you know, recently we actually created something that's called

01:24Freedom Alert Max.

01:25And so that's really blowing the idea of medical alerts right out of the water.

01:30It's a device that literally has amazing fall detection, geofencing for people

01:36who have memory care, Alzheimer's issues.

01:39And we can continue to add services on top of services for those folks who

01:43are in need of it.

01:44And it's the easiest to use smartphone.

01:46And let's be honest, nobody's mom and dad actually wants to wear something

01:49that looks like an old person's device.

01:51It's really cool and sleek.

01:53And it's a really cool little cell phone, smartphone that actually is

01:56really a purse device in disguise.

01:59Yeah.

01:59By the way, speaking of my dad, he would love to still use a flip phone,

02:01but you got to look towards the future, Shailen.

02:05How has the launch of the Freedom Alert Max been so far?

02:08It has been fantastic.

02:10I've got to tell you, people have really, really loved the product.

02:13We are hearing back from not just the consumers, but also our other partners,

02:18such as the Veterans Administration.

02:20Folks are really interested in what we're doing.

02:22I think that in the world that we're living in today, people really want to,

02:26to your point, your dad wanting an easy to use cell phone.

02:29This is super easy, as easy as you can get.

02:32But also a device that keeps them safe and healthy.

02:35And so the product actually links to apps so that you can actually make sure that

02:40you can actually make sure your parents are safe.

02:42And so if something in an emergency happens, it'll actually allow you to

02:46basically check in via video, live streaming video.

02:49And so who doesn't want something like that to say like, oh my gosh,

02:51my dad is on the ground and I need to get him help as soon as possible.

02:55Now, that is fantastic.

02:56We all want to check in on our parents and loved ones.

02:58And that's such a cool thing that you guys have launched.

03:01Let's talk, Shailen, about your Q3 report.

03:04Can you give us a rundown and what are the highlights?

03:06Yeah.

03:06So, you know, until recently, the last three years, we are actually the last year even,

03:13we actually have been a hard work only company.

03:15And so we actually have maintained an excellent margin business.

03:19And that was above 60%.

03:21And so I'm very proud to say that, you know, since the time that we've been here since 2021,

03:25the margin has been 67, 68%.

03:28And we've maintained that in Q3.

03:30And also in Q3, we saw an increase in our revenue.

03:33And so we are actually have been taking the company from being sort of a

03:37business governed sort of business in hardware only to be in a company that is not just a

03:42hardware and government business, but actually selling into B2B,

03:46as well as our sort of new B2C model.

03:48And most importantly, we are actually doing SaaS modeling.

03:51So that means that we are not just selling the hardware,

03:54but actually bringing recurring services subscription to customers.

03:59And so if you could imagine, you know, everybody loves SaaS, right?

04:03And so that recurring model is fantastic.

04:05And so for our business, according to our industry organization, it's a 36 month LTV.

04:11That's much, much better than your typical sort of music service or consumer sort of box.

04:16And so we actually typically have a 36 month LTV is, you know, what the industry shoots for.

04:22And we're the kind of business that's not just a sort of one-shot only type of

04:26subscription business as well.

04:27So you get your base product of $34.99 with monitoring and 24-7 US-based monitoring service.

04:34But then if you want fall detection, it's additional $9.99.

04:37We want geofencing, and it's another $9.99 on top of that.

04:40So we aim to provide additional services that is a multi-layered revenue stream

04:45off of every customer.

04:47And so, you know, when our sort of concept is that, look, at the end of the day,

04:52customers have a lot of different needs and they want to package them up differently,

04:56maybe not memory care, but fall detection or vice versa.

05:00And so it gives us the opportunity to sort of provide that to the customer,

05:03but also for investors and for the company to bring in additional revenue streams where it's needed.

05:10Absolutely.

05:10And listen, all investors love when companies can reduce costs and boost margins.

05:13How are you working to reduce costs and boost those margins?

05:17What about your sales?

05:18And how is Logic Market expanding there?

05:20Sure.

05:21So, you know, we have maintained a 67%, 68% sort of margin for the company.

05:27And so that is actually fantastic.

05:29And as we start sort of growing our recurring subscription business,

05:33we'll have a blended sort of hardware plus subscription business,

05:36which has a much larger margin.

05:37And so we expect to maintain that.

05:39And hopefully grow that as well.

05:42Revenue has been growing.

05:43And so, and reduction of costs has been happening.

05:45We've done the majority of our R&D in the past three and a half years, right?

05:50So we are now in a growth mode where we're just focused on revenue

05:54and opening new channels to sales.

05:56And so it's a pretty exciting time to be part of the company as well.

05:59So, and that's, you know, 18 patents later, right?

06:02So we've been really busy in the last 18 months.

06:05Definitely a good place to be in.

06:07Sure, yeah.

06:08Yeah, it's exciting times.

06:10And I know, Shailene, you recently initiated a reverse stock split.

06:13How did that end up going?

06:14And are you still in compliance with the NASDAQ?

06:17Yes, we are.

06:18It went well.

06:18And we are still in compliance with the NASDAQ.

06:21And we've actually had folks who are former investors come back to join us,

06:25as well as amazing new investors as well as part of that.

06:28And so, and recent raises.

06:30And so the reverse stock split went well.

06:32And we are in full compliance, so.

06:35That's great news.

06:36And do you expect any changes in the regulatory environment

06:39that would impact LogicMark

06:41under the new administration that's coming in in January?

06:43Oh boy, you know what, Dan?

06:45Your guess is as good as mine, so.

06:48I like guessing too sometimes.

06:50Yes.

06:50And so my job is not to guess, of course.

06:53You know, look, we are fully prepared for, you know, as much as we can.

06:57You know, COVID has taught us a lot.

06:58I came in as a COVID CEO at a company

07:00that was in a little bit of a distress, as you may know.

07:03And so we've actually been sort of taking care of things

07:06like supply chain integrity issues,

07:08you know, moving manufacturing from different locations,

07:10for example, out of China.

07:12So that's actually been helpful for us.

07:14As we know, there are, we don't know

07:16what the regulatory tariff situations look like

07:19in the new administration.

07:20And so, you know, we are a small micro-cap company in a NASDAQ.

07:24And we are actually as prepared as possible

07:27for dealing with things like supply chain and tariffs, right?

07:30So.

07:31Well, two very exciting times ahead.

07:33I know you've got a lot of great stuff going on.

07:34It was an absolute pleasure talking with you today, Shailen.

07:38Thank you so much for your time and happy holidays.

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