LogicMark, Inc. (NASDAQ: LGMK) is a provider of personal emergency response systems (PERS), health communications and related technologies. Shares of the connected care company are seeing shares surge 62% through afternoon trading on Wednesday, March 29, 2023. Over the past three months, LogicMark has seen average daily volume of 1.56 million shares. However, volume of 69.68 million shares or dollar volume of around $15.91 million, has already exchanged hands through afternoon trading.
Shares of LogicMark are rallying after the company reported financial results for the 2022 year, showing revenue growth of 19% to $11.9 million. Management stated the sales growth came from improved sales to VA-operated hospitals and clinics. Gross profit came in at $7.2 million, which represents a 25% increase from 2021. Gross margins expanded 300 bps to 60.7%. Overall, LogicMark reported a net loss of $7.3 million. However, that was almost half of the company’s 2021 net loss of $14 million.
During the fourth quarter of 2022, the company appointed two key sales and marketing officers, which likely signifies the company’s continued focus on growth. Brady Farrell was appointed as the VP of Sales and Garett Hunter was named the SVP of Marketing. Management says Mr. Farrell and Mr. Hunter are important additions in order for the company to achieve its 2023 sales and marketing goals.
In February 2023, LogicMark conducted a special stockholders meeting, which resulted in the unanimous approval of the company’s 2023 stock incentive plan, reincorporation from Delaware to Nevada and a reverse stock split proposal.
Chai-Lin Simmons, LogicMark’s Chief Executive Officer: “Our focus is on completing the development of our new products, which we believe will attract significant interest in the market. We hope to launch our first software product within the next quarter. While we work on our new offerings which will take a new, fresh approach to the technology, user experience, design and features traditionally seen in the category, we are also diligently managing our costs to run the Company efficiently. The focus of our nearest term new product offerings is increasing the speed and bandwidth that is essential to allow caregivers to respond to any situation in real time. Additionally, we will be increasing our direct-to-consumer channels with the addition of a LogicMark Amazon store.”
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