Good day and thank you for standing by. Welcome to LogicMark’s Fourth Quarter and 2022 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. Please be advised that today’s conference is being recorded. I would now like to turn the call over to Louie Toma from CORE IR, the company’s Investor Relations firm.

Good afternoon and thank you for participating in today’s conference call. Joining me from LogicMark’s leadership team are Chia-Lin Simmons, Chief Executive Officer; and Mark Archer, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address LogicMark’s expectations for future performance or operational results and anticipated product launches. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in LogicMark’s most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC and LogicMark’s press release that accompanies this call, particularly the cautionary statements in it. The content of this call contains time-sensitive information that is accurate only as of today, March 28, 2023. Except as required by law, LogicMark disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to the company’s CEO, Chia-Lin Simmons.

Thank you, Louie. Welcome, everyone, and thanks for joining us. Our fourth quarter represents a rebuilding period for the company as we focus on developing new innovative products and investing in our sales and marketing efforts to drive sustained growth and shareholder value. During the year, we added key expertise in sales and marketing roles that will help drive these initiatives. In September, we added John Federico as Senior Product Director. In this role, John has been focusing on managing our product development efforts as we work towards launching new leading-edge products. His extensive experience in product management with various technology companies, including Audible, Dell, and Cisco, will be a significant asset as we bring new products to market. In October, Garett Hunter joined us as Senior VP of Marketing. Garett possesses extensive experience with consumer product marketing companies, with 20 years of relevant marketing experience as Senior Vice President of LifeMD, VP of Growth at Yumi, and Co-Founder of Gravity Brands and Vegamour. In December, we added Brady Farrell as VP of Sales. His extensive sales experience at various MedTech companies will be key in helping LogicMark achieve its sales objectives. He comes to us with a background in both large companies like VM, where he was a Regional Sales Director, to start-up medical device companies like Argon and Monarch. These strong additions to our team highlight our commitment to building new innovative products, as well as having a robust sales team that will market these new offerings in addition to our current best-selling products. The care economy represents a significant opportunity, and we are the only public pure play company dedicated to addressing those needs. We believe that our new products and key hires position us to capitalize on that competitive advantage. Our Q4 revenue decreased from the high levels we experienced earlier in the year as we benefited from a boost in sales from the U.S. Veterans Health Administration, and customers upgraded to 4G devices. With this upgrade cycle now complete, we expect future sales to be driven by the launch of new products, as well as new sales channels. We are confident that these new products will provide a competitive offering that will be well received in the market. We look forward to providing updates as we complete our product development and approach their launch. As a reminder, we launched a direct-to-consumer sales channel in July to enable customers to purchase directly from us. Revenue and AOV from this channel continues to rise, while media spend remains relatively flat, helping to increase margin. With the implementation of new upsell and cross-sell sale flows in December, we aim to continue this trend moving into the rest of 2023. Additionally, we will be further extending our direct-to-consumer sales channel with the launch of the LogicMark Amazon store, which we expect to go live by the end of next month. As we continue to invest in our sales and marketing as well as new product initiatives, we do so in a prudent and cost-effective way with an additional focus on minimizing our corporate expenses. One way we fortify our product development efforts is through the application for and receipt of patents that will protect our position and investments made. These provisional applications include various techniques to ensure the quality of wellness care systems and delivery, incorporate machine learning and AI techniques, and focus on systems in support of wellness in multiparty interactions. Two provisional patent applications were filed in the third and fourth quarters that focus on machine learning and AI, bringing the total to five provisional patents filed in 2022 for the company. In Q4, we also began to move some of those provisional patents into final filings in 2023. We expect to transition two of those provisional patents into final patent filings in early 2023. We have experienced some delays in the launch of our new products that we are working through. We expect those delays to resolve within the next few quarters, and we are planning to bring our first software product to the market in Q2. With $7 million in cash as of December 31, 2022, and $5.2 million of gross proceeds that we raised in a registered offering in January 2023, we are now well-positioned to further execute our strategy as we launch new products and establish additional sales channels. Our business plan is solid, and we believe that the coming silver tsunami, driven by the growth in the elderly population and the trend towards aging in place, will create a perfect storm for our offerings. We are confident that as we execute, we will become a leading provider of core solutions and services in the expanding care economy. I will now pause and ask Mark Archer to discuss our 2022 financial results, and then I will return to provide some closing remarks.

Thank you, Chia-Lin. Here are the financial results for the year ended December 31, 2022. Revenue for the year ended December 31, 2022, was $11.9 million, up 19% from the prior year. The increase in revenues resulted from improved sales to VA hospitals and clinics. Gross profit was $7.2 million for the year ended 2022 versus $5.8 million in 2021, an increase of 25%. Gross margin increased by 300 basis points to 60.7% from 57.7% in the prior year. Gross profit increased as a result of higher revenues and lower inbound freight costs. Total operating expenses increased 6% in fiscal year 2022, totaling $14.1 million, compared to $13.3 million in fiscal 2021. Last year’s fiscal 2021 results included a $4.5 million charge for goodwill impairment. The net loss attributable to common shareholders for the year was $7.3 million versus a net loss of $14 million in fiscal 2021, an improvement of $6.8 million. The results for the year ended December 31, 2021, included $2.9 million in warrant modification expenses. Net loss per share improved from a loss of $2.25 per share in the fiscal year ended 2021 to a net loss of $0.76 per share in the year ended 2022, an improvement of $1.49 per share. Of that improvement, $0.40 per share was attributable to the 53% increase in common shares outstanding between the two years. Cash balance as of December 31 was $7 million before the addition of $5.2 million in gross proceeds raised in our January registered offering. I will now turn the call back to Chia-Lin.

Thanks, Mark. 2022 has been a busy year as we focus on innovating solutions that enable individuals to safely remain in their own homes and ensure that they are being properly monitored and appropriately cared for. We at LogicMark are beyond excited about these opportunities and continue to work tirelessly to provide leading-edge solutions to address this evolving care economy. At this time, I will open the call to questions. Operator?

Thank you. Our first question comes from Allen Klee with Maxim. You may proceed.

Good afternoon. Hi. Can you talk a little about your new product strategy and what you think the competitive advantages of the products are and the go-to-market strategy? Thank you.

Sure. Hi, Allen. Great to chat with you. So one of the things that we are looking at is trying to incorporate some of those IoT capabilities and machine learning along with AI into our product offerings. Currently, if you look at the majority of the technologies, what we are seeing lacking are a couple of different elements. First, I want to address fall detection. Fall detection today typically utilizes technology such as accelerometers and gyroscopes, speed and tilt. So we actually have the patent on adding additional multifactor sensor capabilities into a PERS device, including the capability to measure altitude, allowing us to ascertain the distance between where you were and where you ended up. This includes metrics like tilt, speed, and distance. This provides much better accuracy in differentiating between what is an actual fall versus simply someone sitting down too quickly. Additionally, we are implementing machine learning and AI to personalize that fall detection to the individual, as well as allowing us to aggregate data to learn more about a person's movement patterns compared to others of similar age and health backgrounds. For instance, we could identify patterns such as a person experiencing falls consistently on Tuesdays and Thursdays at a particular location, like a yoga studio, and we can check in on them accordingly. This will also help address the issue of false alarms that deter many users from wearing such devices. Our goal is to provide a learning experience that is tailored to users while also aggregating data to enhance overall understanding. Secondly, all of our new products will feature modern hardware capabilities that enhance data sharing. This allows users to share data with us and their caretakers for a more interactive experience. Rather than solely being reactive technologies, we aim to be proactive, monitoring health and enabling caretakers to have timely updates rather than just responding to emergencies. Many companies in this sector utilize off-the-shelf technology, but we are building our own technology, developing proprietary AI algorithms, and creating a user experience that is more appealing to elderly users while also facilitating a successful coordinator experience among various caretakers, whether that’s family or professional. We are focused on bringing a comprehensive technology suite to market which leverages user experience consistently across our offerings. I hope that helps.

Yeah. I am curious when you have done your market research, what do potential buyers say is most important, and how do you think you have addressed that?

Some of the most important factors according to customers can be broken down into two groups. First, the end users, those wearing the devices. They want devices that minimize false positives. They don’t want to wear something that mistakenly goes off frequently, causing them to disable the fall detection due to its unreliability. Additionally, they care about how the device looks and feels, as many do not want to feel like they are wearing something that signifies old age. Therefore, redesigning these devices to resemble everyday technology is crucial for adoption among those who need them most. For caretakers, predominantly the younger generations, it’s about providing a comprehensive solution that allows them to monitor their parents without feeling intrusive. This means being able to understand their parents' safety without feeling like they are constantly surveilling them. Furthermore, we recognize that coordinating care can be incredibly stressful. We work to create systems that allow families to manage care effectively without overwhelming their loved ones. The concept of security and safety is paramount for users, especially in case of emergencies. This “triple protection” approach ensures that even if a typical caretaker cannot be reached, there is a system in place to contact another caretaker or emergency services, effectively covering all bases. These aspects are fundamental in what we rolled out and continue to develop.

Thank you. Very interesting. How do you plan to approach your marketing strategy for this year?

That’s a great question. We continue to be optimistic about expanding into the B2C market, assuming costs remain manageable. This B2C experience is critical because people want to know who is providing care for their loved ones. They'll need to have direct interactions with us, experienced through our customer service and comprehensive web experience. Thus, it’s essential to engage our audience where they are—namely caretakers doing research for their parents. We are focusing on connecting with these individuals through online communities and discussion groups where they seek support for elderly care. Regarding B2G, we are excited about growth opportunities as we roll out our monitoring services directly to states and municipalities. Our new VP of Sales has been aggressive in assembling an exceptional sales team. This group looks to expand our B2G presence by addressing the numerous clinics we haven't yet engaged and initiating discussions with potential B2B clients, such as distributors and in-home care network operators. Our initial product rollouts have already elicited positive feedback from government partners and B2B prospects.

That’s great. Thank you so much.

Thank you. And this concludes the Q&A session. I’d now like to turn the call back over to Chia-Lin for any closing remarks.

I want to thank all of you for participating in our call today. I look forward to continuing to provide updates on our progress at the appropriate time. Thank you so much.

Thank you. This concludes today’s conference call. Thank you for participating. You may now disconnect.