LogicMark, Inc.

Good afternoon, and welcome to LogicMark's fourth quarter and full year 2025 conference call. The speakers today are Shailen Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer. During this call, management will make forward-looking statements, including statements regarding LogicMark's future performance, operational results, and anticipated product launches. Forward-looking statements involve risks and uncertainties, That could cause actual results to differ materially from those expressed or implied. For more information about these risks, please refer to the risk factors described in LogicMark's most recent filed annual report on Form 10-K, subsequent periodic reports filed with the SEC, and the press release issued in connection with this call. The information discussed on this call is accurate only as of today, March 25, 2026. Except as required by law, LogicMark undertakes no obligation to update or revise any forward-looking statements. It is now my pleasure to turn the call over to Shailene Simmons. Please go ahead.

Good afternoon, everyone. Thank you for joining us to review our financial and operational results and discuss the outlook for our company and industry. 2025 was a year of progress for LogicMark. as we translate the product innovation into measurable financial gain. We deliver continued momentum across our core product lineup, maintain strong gross margin, and end the year with a healthy balance sheet that supports our growth aspirations. These results reflect discipline execution and a clear alignment between our technological investments and commercial outcomes. In the fourth quarter, revenue increased 36%, gross profit increased 43%, and gross margin improved by 340 basis points compared with the prior year period. Most importantly, quarterly revenue has increased year over year in six of the last seven quarters. For the full year, revenue increased 15% to 11.4 million, Gross profit improved to $7.6 million and gross margin remained strong at 66.8%. We also ended the year with $9.5 million in cash and investments and no long-term debt. Our performance in 2025 shows continued momentum across our core product lineup. Fourth quarter growth was driven by strong demand for Freedom Alert Mini and the upgraded Guardian Alert 911+. For the full year, revenue growth was driven primarily by higher sales of the Freedom Alert Mini. We believe this progress shows that product innovation is turning into commercial success. Before turning to our go-to-market strategy, I want to briefly explain what is different about LogicMark today. Over the past several years, we have been working to evolve LogicMark from a traditional hardware provider into a larger, broader connected care platform. That evolution includes a more diversified product portfolio, stronger software and data capabilities, and a deeper intellectual property foundation. We're encouraged not only by the growth itself, but also by the consistency of demand across channels. We're seeing Freedom Alert Mini increasingly adopted as a first-time solution for families navigating aging-in-place decisions. At the same time, Guardian Loaded 911 Plus continues to resonate with customers seeking simplicity and reliability. That pattern reinforces our view that our portfolio is aligned with the market evolution. A less obvious but essential component of the LogicMark story is our intellectual property portfolio. Since June 2021, we have implemented a deliberate strategy to protect the technology we are building. And today, our portfolio includes more than 45 issued or pending patents. These expanded innovation foundations are being built over a relatively short period and in a highly strategic manner. reflecting the strength of our R&D team. A significant milestone in 2025 was a patent grant covering the core architecture of our Care Analytics Management Processor, or CAMP. This intelligence layer powers our Caring Platform as a Service, or CPAS, We've also filed under a patent cooperation treaty, which preserves our ability to seek patent protection in more than 150 countries as we evaluate broader market opportunities. Building on that foundation, our LogicMark digital twin technology creates AI-powered behavioral mirrors that can help predict falls and other risks before incidents occur. These capabilities underpin our activity metrics features, an important element of our differentiation in proactive senior care, which is also helping us further expand our subscription service revenue. Just as important is what this portfolio represents strategically. We are no longer simply a hardware company with a software wrapped around it. We are building a defensible, software-defined platform grounded in proprietary AI-powered monitoring, token-based data privacy, and connected IoT ecosystems. We believe these investments will further position LogicMark to compete on the strength of its products and technologies. This platform strategy is now reflected directly in the products we are bringing to market. In 2026, we continue to prioritize sales growth in the B2B channels across government and healthcare sectors. There are also opportunities to expand into the consumer channel. From a sales perspective, LogitMark is transitioning from reinventing a new technology roadmap and sustainable business models to building the commercial infrastructure required to monetize these capabilities. The additions to our business development team strengthen our leadership at an important point in our evolution. They bring deep healthcare and government sales experience, as well as connectivity market expertise to enhance our ability to scale distribution, expand partnerships, and support our transition to a broader connected care platform. From a product perspective and standpoint, in government care, our renewed five-year GSA contract enhances access to federal procurement opportunities and, together with our longstanding work with the VHA, broadens our ability to service and capture additional revenue. We're also taking steps into senior living facilities by leveraging our newly expanded team's decades of experience in additional areas such as behavioral health and rehabilitative therapy. Products such as our Freedom Alert Max now integrate medicine reminders and proactive activity metrics, supporting our broader strategy to move from reactive alerting to more proactive data-driven care. These features eliminate the need for separate smartphone applications. Caretakers can schedule detailed dosage information through LogicMark's Freedom Alert caretaker app. Should a user fail to confirm that they have taken their medication, the system logs this data for analysis to identify potential falls or emergency risk. Together, these proprietary features strongly incentivize the adoption of bundled monitoring and solution services, helping to develop a highly scalable recurring revenue base. We are also excited to share that LogicMark continues to drive innovation and development. New solutions in 2026 product pipeline includes a wearable watch expected to launch in Q3 quarter. The watch includes features we believe should be standard for aging loved ones, including fall detection and geofencing, as well as LogicMark's flagship capabilities such as activity tracking and medication reminders. For the risk watch solution, we plan on introducing a new feature, advanced biometric data. Second, we are in a beta testing phase of our connected home hub with living, senior living, and independent living partners. The system integrates our CPath platform, predictive cloud services, caregiving apps, and a proprietary AI power fault detection technology that operates without wearable devices at home. This is especially helpful in bathrooms where slips in the shower can be fatal. The hub connects with other systems and environmental sensors to enhance safety, enabling us to partner with connected home and health tech providers to offer a more comprehensive aging at home experience. These team and product investments are intended to deepen customer engagement and broaden our mix of monitored and connected care revenue opportunities over time. We're expanding our monetization beyond one-time device sales to include multiple subscription levels, connected care services, and select licensing opportunities. Turning to the broader market outlook, we continue to see a favorable demand environment. Supported by aging in place, growing preference for at-home care, increasing technology adoption among older adults, and wider use of connected monitoring and data-driven insights. A recent Berg Insight industry report estimated that approximately 6.5 million people in North America were using telecare for medical alert solutions at the end of 2025. The report also estimates that the market value of medical alert solutions in North America will grow from approximately 3.7 billion in 2025 to 5.6 billion in 2030. We believe LogicMark is well positioned to capture additional shares of this growing market through a portfolio that spans no monthly free devices, monitored mobile solutions, and connected care and connected home offerings designed to meet evolving customer needs. Across healthcare, housing, and consumer technology, the shift towards home-based care continues to accelerate. Families increasingly want solutions that help their elderly adults remain independent while staying connected to caregivers, driven by demographic trends and a growing demand of the sandwich generation. families are adopting homes for aging relatives through safety upgrades and living arrangements, such as in-law suites or backyard cottages, alongside growing use of connected health tools outside traditional clinical settings. At the same time, rising technological adoption is increasing expectations, particularly around ease of use for older adults and their caregivers. Caregivers. As AI-enabled health platforms, wearables, and smart devices become more common, families are looking for solutions that fit naturally into daily life without adding complexity or cognitive burden. This further distinguishes general consumer safety products from trusted, purpose-driven systems like ours, which are designed for real-world caregiving needs. In this environment, solutions that emphasize reliability, Simplicity and caregiver peace of mind are becoming increasingly important. We believe that allows LogicMark to play a meaningful role in the evolving home care ecosystem. As you will hear from Mark, we have continued to invest thoughtfully in sales, product development, and supply chain resilience, balancing near-term revenue opportunities with actions that strengthen the platform for long-term growth. With expanded sales and business development teams and multiple monetization pathways, including potential IP licensing, we believe LogicMark is equipped to drive revenue growth, improve profitability, and play a meaningful role in a growing care economy.

Mark? Thanks, Shaitan. I'll start with our fourth quarter results, then cover full-year performance. Starting with the fourth quarter, revenue was $3.1 million, up 36% from $2.2 million in the prior year period. Gross profit increased 43% to $2.1 million, and gross margin improved to 69.8% from 66.3%. The improvement reflected higher volume, higher margins on our upgraded Guardian Alert 911 Plus, and a favorable product mix. Total operating expenses were $3.8 million compared to $3.7 million in the fourth quarter of 2024. The increase primarily reflected higher selling and marketing expenses to support growth, partially offset by lower general and administrative costs. Net loss for the quarter improved to $1.6 million from $3.7 million a year ago. Diluted loss per share was $1.96 compared with over $1,000 a share in the prior year period. And the per share figures reflect the October 2025 reverse stock split and related retroactive adjustments in share counts. Now switching to the full year, revenue increased 15% to $11.4 million from $9.9 million in the prior year. Gross profit improved 15% to $7.6 million, and gross margin remained essentially flat at 66.8%. The increase in annual revenue was primarily related to sales of Freedom Alert minis. Full-year operating expenses were $15.5 million, up from $14.3 million in 2024. The year-over-year increase was primarily related driven by higher selling and marketing expenses, including increased compensation costs for the sales team and one-time recruitment costs for new sales leaders. In addition, we incurred increased research and development consulting costs tied to the relocation of certain contract manufacturing from China to Taiwan, which will help us minimize our risk of paying community tariffs going forward. We also incurred higher legal fees to protect our IP portfolio. Lower advertising expense partially offset these changes. One additional point worth highlighting is expense discipline. Operating expenses increased by approximately $100,000 or 3% in the fourth quarter and 9% for the full year. This reflects continued investment in growth while maintaining control over the broader operating cost base. Net loss for the full year improved to $7.5 million from $9 million in 2024. Net loss attributable to common and preferred stockholders was $7.8 million or $13.06 per basic and diluted share compared with $9.3 million or again, over $1,000 per basic and diluted share in the prior year. As with the quarterly per share figures, the yearly comparisons reflect the reverse stock split that we completed in October. Now, quickly turning to the balance sheet and liquidity, we ended the year with $9.5 million in cash and investments, $9.7 million in net working capital, and no long-term debt. During 2025, cash used in operating activities was $5.1 million, and we invested approximately $1.4 million in product and software development. Financing activities provided $12.1 million of net cash during the year, including $14.4 million of gross proceeds from our February 2025 registered secondary offerings. We remain focused on disciplined execution, efficient investment in people and technology, and continued progress toward improved operating performance. We expect ongoing expansion of subscription monitoring and digital care features integrated into the company's AI-enabled care and analytics platform, further strengthening the recurring revenue base. Finally, With the first quarter of 2026 almost concluded, we expect revenue to be up in the 10% to 15% range compared with the first quarter of 2025. And now I'd like to open it up for questions.