LogicMark Reports Decline in Revenue and Increased Operating Losses in Q1 2025

LogicMark, Inc. reported its financial results for the first quarter of 2025, revealing a slight decline in revenue and an increase in operating losses compared to the same period in 2024. The company generated revenues of $2.59 million, a decrease of 1% from $2.61 million in the prior year. The cost of goods sold rose by 12% to $946,597, leading to a gross profit of $1.65 million, down from $1.77 million, resulting in a gross profit margin of 63%, down from 68% in the previous year.

Operating expenses for the quarter totaled $4.01 million, an increase of 12% from $3.57 million in the same quarter of 2024. This rise was attributed to higher general and administrative costs, which increased by $370,541, primarily due to increased consulting, investor relations, and legal fees. Other expenses included a decrease in selling and marketing costs, which fell by $70,438, reflecting reduced consultant expenses. The company reported an operating loss of $2.36 million, compared to a loss of $1.81 million in the prior year, and a net loss attributable to common stockholders of $2.27 million, or $0.12 per share, compared to a loss of $1.82 million, or $21.15 per share, in the previous year.

In terms of strategic developments, LogicMark completed a public offering in February 2025, raising approximately $14.4 million in gross proceeds through the sale of common stock and warrants. This capital infusion is intended to support sales and marketing investments, working capital, and other corporate purposes. The company also reported a significant increase in cash and cash equivalents, which rose to $9 million as of March 31, 2025, compared to $5 million at the end of the previous year.

Operationally, LogicMark continues to focus on its personal emergency response systems (PERS) and health communication devices, which are sold through various channels, including direct-to-consumer and the U.S. Veterans Health Administration. The company has seen an increase in sales of its Freedom Alert Mini product, which was launched in 2024, although overall sales of legacy hardware have declined. As of March 31, 2025, LogicMark had working capital of $14.3 million, a significant increase from $3.3 million at the end of 2024.

Looking ahead, LogicMark faces challenges related to compliance with Nasdaq listing requirements, as it received a notification regarding potential delisting due to public interest concerns stemming from its recent securities issuance. The company is actively working to address these issues and believes it has sufficient capital to sustain operations for at least the next twelve months. Management remains committed to executing its long-term strategic plan, which includes further product development and market expansion.