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."
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."
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NewsTranscript
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.