LogicMark, Inc.

Good afternoon and welcome to LogicMark's first quarter 2026 conference call. The speakers today are Shalyn Simmons, Chief Executive Officer, and Mark Archer, Chief Financial Officer. And 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 including Form 10-Q, and the press release issued in connection with this call. The information discussed on this call is accurate only as of today, May 13th, 2026. Except as required by law, LogicMark undertakes no obligation to update or revise any forward-looking statement. It is now my pleasure to turn the call over to Shiland Simmons. Please go ahead.

Good afternoon, everyone, and thank you for joining us today. I'm pleased to report that our 2025 financial and strategic momentum continued into the first quarter with year-over-year revenue growth. Demand from our VA partners and our B2B distributor and resale channels remain healthy. Compared with the first quarter of last year, gross margin expanded, operating expenses declined, and our operating loss narrowed. The first quarter financials validate the business model we have been pursuing, delivering improvements in operational performance by offering solutions that meet the needs of families. Logic Block has been steadily evolving from a personal safety hardware company into a connected care platform with newly introduced products and a pipeline designed to accelerate that transition. We continue to operate in a growing care and safety economy where the need is large, urgent, and increasing. Falls remain one of the most serious safety risks facing older Americans. The CDC reports that falls are the leading cause of injuries for adults 65 and older, with more than 14 million, roughly one in four, reporting a fall each year, many requiring medical treatment or restricting activity. The CDC's Steady initiative that's stopping elderly accidents, death, and injuries put the urgency plainly. Every second, every day, an older adult falls, and approximately 41,000 die from a fall each year. The economic burden is equally significant. The National Council on Aging projects that the cost of treating non-fatal older adult fall injuries will exceed $101 billion by 2030. That reinforces why fall detection, personal emergency response, and connected caregiver notifications are not convenience features. They address a large, reoccurring, and costly safety challenge for older adults, families, caregivers, and the healthcare system. The demographic background amplifies the opportunity. Approximately 4 million Americans were estimated to turn 65 each year from 2024 to 2027. In 2024, the U.S. population age 65 and older reached 61 million. This was up 3.1% from 2023. Surveys indicate that most adults age 50 and older want to remain in their current homes. And one in four Americans age 65 and older already live alone, underscoring the need for technologies that preserve independence while giving caregivers greater visibility and confidence. I share these statistics because taken together, they capture the scale, urgency, and real-world importance of the need LogicMark is addressing. The trends indicate how older Americans want to live. The market is shifting. from traditional emergency response devices to connected care solutions that combine file detection, remote monitoring, instant caregiver alerts, and AI-enabled insights. Our connected care platform is built for the transition, integrating IoT devices, AI power sensors, and services to enable safer and more connected care. In addition to the industry backdrop, What gives us conviction in our strategy is our growing installed base, a track record of reliability, and a procurement relationship that very few companies in our space can match. An indicator of the success of our strategy can be seen not just in our financials, but also in our first quarter net promoter MPS score, which finished at 68. For healthcare specifically, benchmark, reports show how many respected healthcare device related companies land in the 40 to 60 range, with only standout performers consistently above 65. We strive to remain one of the best performers in the industry and to continue our reputation for great service to our customers. Feedback such as, this larger mark device works perfectly and gives me peace of mind, or the product exceeds all my expectations, Or I accidentally activated my alert and was responded to immediately and with professional help when I needed it. And I can't say enough for the excellent attitude of their organization and completely satisfied with the design and quality. I actually enjoy using it. These are just a few of the comments from customers that not only demonstrate our support during the most critical moments, but also indicate we are heading in a right strategic direction. We are continuing our focus. on providing the best-in-class product and services. That focus includes layering a software-defined connected care platform onto the technology foundations we have built. Our development is grounded in proprietary AI-powered sensors and monitoring, token-based data privacy, and an expanded connected IoT ecosystem, with our patent portfolio providing a strategic advantage over competitors. It is important to be clear about the role AI plays on our platform. We're not building a chatbot companion for older adults. The people we serve do not want artificial empathy. They want their families. What AI does well is process longitudinal patterns and minute changes in behavior that humans might not easily detect. Changes in activity, sleep, steps per day, medication adherence, and surface those patterns to caregivers in time for human empathetic decisions. That is the role that we have designed AI to play in a Logic Mart platform. Here's a simple example of how AI can work. Currently, our platform is designed to learn a user's normal routines and activity patterns. A fall-like signal at 10 a.m. during a regular activity, such as a yoga class, may mean something very different from a similar signal at 3 a.m. in a bathroom. By interpreting context, The platform can help prioritize events that may require faster caregiver awareness and response. The personalized digital twin is a behavioral model that compares patterns over time and helps surface meaningful changes earlier. It also helps support our strategy to expand beyond one-time device sales into subscription pairs, connected care services, and selective licensing opportunities. We are building on a strong foundation across government, healthcare, dealer, reseller, and consumer channels, and expanding engagement with senior living and independent living partners. Our renewed five-year GSA contract, awarded in February, extends a federal procurement relationship that originated in 2021 and remains a durable foundation for our government channel. These relationships matter because innovation only creates value when it reaches people, families, caregivers, and organizations that need it. With that in mind, let me turn to the product pipeline and innovation work that supports the next phase of our strategy. We're excited about the expansion of our product portfolio. And as previously mentioned, we have two near-term product catalysts. First, we plan to launch a wearable watch this year. That watch will combine fall detection, geofencing, activity tracking, medication reminders with new advanced biometric data capabilities. Second, our connected home hub continues in beta with senior living and independent living partners. It combines our CPaaS platform, predictive cloud services, caretaker app and proprietary AI power fall detection into a background system that does not require the user to wear a device in the home. This is important because many in-home falls occurred in bathrooms and showers where wearables are often removed. Feedback from beta partners have been encouraging and we're using it to refine features that matter most to facility operators and clinical teams. Together, the watch and a hub are designed to operate as a single integrated ecosystem. So a caregiver does not need to manage multiple apps and services to keep their loved ones safe at home and on the go. As a reminder, our installed product portfolio also includes the Freedom Alert Max, an attractive two-in-one device that combines a cell phone and medical alert with integrated medication reminders and proactive activity tracking. With a single device, customers can stay connected with family while we deliver on our broader strategy to move from reactive alerting to proactive data-driven care. The Freedom Alert Maxis feature set is designed to drive adoption by giving customers everything they need in one product with a single purchasing decision. While seniors remain our core market, we have also seen meaningful demand for our Astra personal safety platform from a different demographic. college students, young professionals, and especially women seeking discrete personal safety solutions. ASTER has expanded the addressable market for the Logic Mart platform beyond aging in place use cases, reinforcing the breadth of the safety and care economy we're positioned to serve. From college students to seniors aging in place to veterans transitioning to independent living, we are addressing the needs of several generations. Our team has worked hard to make our product and technology relevant. Today, LogicMark solutions emphasize reliability, simplicity, and caregiver peace of mind, the attributes that distinguish purpose-driven systems from general consumer safety products. And as we are taking a category that, frankly, has not evolved meaningfully since the 1980s and bringing it to the 21st century with IoT, AI, and machine learning at its core. Looking ahead, we are focused on three priorities, scaling distribution across healthcare, government, and B2B channels, bring our next generation products to market on schedule, and protecting profitability through pricing, productivity, and discipline cost management in a dynamic macro environment. With that, let me hand the call over to Mark to walk you through the financials in more detail. Mark?

Yeah, thank you, Shilin, and good afternoon, everybody. I will walk through the first quarter of 2026 results and close with a few comments on the balance sheet, our liquidity position, and the trajectory from here. First quarter revenue was $3.2 million, up 24 percent from $2.6 million in the prior year period, exceeding our expectations. Growth was driven primarily by continued strong demand for the Freedom Alert Mini and the upgraded Guardian Alert 911+. Gross profit was $2.2 million, an increase of 36% compared with $1.6 million a year ago. Gross margin was 69.6% compared with 63.5% in the first quarter of 2025. an expansion of 610 basis points. These numbers reflect the impact of a price increase implemented in late January, a favorable product mix, and lower shipping and fulfillment costs. Total operating expenses for the first quarter were $3.7 million, down 7% from $4 million in the prior year period. we remain focused on discipline cost management as we scale the business. More specifically, advertising costs decreased by approximately $100,000, or 55%, reflecting a deliberate reduction in business to consumer media spend. At the same time, selling and marketing expenses increased by approximately $300,000, driven by additional sales personnel and related costs supporting our healthcare, government, B2B, and reseller channels. Overall, these go-to-market expenses increased year over year, but the mix shifted towards sales capacity and channel infrastructure, which we believe can support more durable revenue growth over the long haul. Research and development expense declined approximately 21% year-over-year. We don't view this as a budget cut, but rather a reflection of where we are in the product development cycle. The platform architecture and core product roadmap have already been built. We are now in a commercialization phase where the highest return investments are in sales channels and consumer-facing systems. not substantially higher R&D spend. General and administrative expense decreased by approximately $500,000, or 24%, driven by lower stock-based comp, consulting, and legal costs. Operating loss for the first quarter was $1.5 million, an improvement of 36% from an operating loss of $2.4 million in the prior year period. We're pleased with this meaningful progress against our overall objective of reaching breakeven profitability. Net loss for the first quarter was also 1.5 million, an improvement of 34 percent from a net loss of 2.2 million in the prior year period. Net loss attributable to common stockholders was $1.68 per basic and diluted share, compared with $93.50 per basic and diluted share in the prior year period. Now, those prior year figures have been adjusted retroactively to reflect the one for 750 reverse stock split that we competed in October of 2025. We ended the first quarter with $7.5 million in cash and investments and no long-term debt. The first quarter reflected the plan investments in product development, sales infrastructure, and working capital needed to support our growing top line. Our liquidity position supports our ability to fund the continued commercial build out of the platform, the launch of the wearable watch in the third quarter, and the continued progression of the connected home hub through beta and into commercial development without near-term reliance on dilutive financing. I also now want to address our OTC listing, as we've had a number of questions come in about our long-term stock exchange and capital market strategy. Our current focus is on executing against our business plan, improving operating performance, and preserving flexibility while always evaluating the best path to create long-term shareholder value. we will communicate any material developments when appropriate. In terms of financial performance, looking forward, we expect ongoing expansion of subscription monitoring and digital care features integrated into our AI-enabled care and analytics platform to further strengthen our recurring revenue base over time. Consistent with the framework we shared on our last call, We're managing operating expense growth conservatively, supported by AI-driven productivity initiatives that have already begun implementing across the company. So with that, I'd like to open the call up for questions and turn this back to the operator.