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Good afternoon, and welcome to LogicMark's First Quarter 2026 Conference Call. The speakers today are Chia-Lin 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 13, 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 Chia-Lin 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.

LogicMark 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 1 in 4 reporting a fall each year, many requiring medical treatment or restricting activity. The CDC's study 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 nonfatal 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 health care 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 aged 65 and older reached 61 million. This was up 3.1% from 2023. Surveys indicate that most adults aged 50 and older want to remain in their current homes and 1 in 4 Americans aged 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 fall detection, remote monitoring, instant caregiver alerts and AI-enabled insights. Our connected care platform is built for the transition, integrating IoT devices, AI-powered 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 NPS score, which finished at 68.

For health care specifically, benchmark reports show how many respected health care 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 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 the 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 are 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 LogicMark 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 fallout signal at 10:00 a.m. during a regular activity such as yoga class may mean something very different from a similar signal at 3:00 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 onetime device sales into subscription tiers, connected care services and selective licensing opportunities.

We are building on a strong foundation across government, health care, dealer, reseller and consumer channels and expanding engagement with senior living and independent living partners. Our renewed 5-year GSA contract awarded in February extends the 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 2 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-powered 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 are using it to refine features that matter most to facility operators and clinical teams. Together, the watch and 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 2-in-1 device that combines a cell phone and medical alert with integrated medication reminders and proactive activity tracking. With a single device, customers could stay connected to the family while we deliver on our broader strategy to move from reactive alerting to proactive data-driven care. The Freedom Alert Max's 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 Aster 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 LogicMark platform beyond aging in place use cases, reinforcing the breadth of the safety and care economy we are 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 3 priorities: scaling distribution across health care, government and B2B channels, bringing our next-generation products to market on schedule and protecting profitability through pricing, productivity and disciplined 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?

Yes. Thank you, Chia-Lin, and good afternoon, everybody. I will walk through the first quarter 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% from $2.6 million in the prior year period, exceeding our expectations. Growth was driven primarily by continued strong demand from the Freedom Alert Mini and the upgraded Guardian Alert 911 Plus.

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 disciplined 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 health care, 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 road map 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% 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 for -- have been adjusted retroactively to reflect the 1-or-7-50 reverse stock split that we completed in October of 2025. We ended the first quarter with sorry, $7.5 million in cash and investments and no long-term debt. The first quarter reflected the planned 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.

[Operator Instructions] And our first question will come from Marla Marin with Zacks.

So a lot of questions, but I obviously won't ask everything that's on my mind. You've had several sequential strong quarters now as you continue to introduce new products, upgrade the existing products portfolio. Mark, you talked about how R&D is not stepping back from investing in the portfolio, but you're at a different stage now. Is it right to think that R&D could be kind of lumpy over the next few quarters as you introduce the watch and introduce other products that have been in development, but then again come back for additional upgrades down the road?

Yes. We're trying to not have it be lumpy, Marla. We have a very well thought through development schedule. We rereview it every month. So no, I don't. The spend is roughly $100,000 a month, and it's been pretty consistent over time. And I see at least in the near term, it's staying pretty consistent.

Okay. That makes sense. Switching gears, I'm wondering if we could get a little bit more color on the watch because I think that, that will be a very interesting product launch. Is there a specific demographic that you're thinking of now when you're thinking about the watch? Or do you think that it extends across a very broad age group and demographic?

So I'll go ahead and take that, Mark. Related to the watch, I think that it is a really quite candidly, a senior product. This is not something where I necessarily see the watch as something that's extendable into a younger audience and mainly because I think that there are 3 existing products that work well in that category area. For example, if you're wearing a watch, you might wear a Fitbit, right, or you might wear Oura Ring. I mean our product is very focused on delivering first-in-class fall detection, right, geofencing for early memory care and Alzheimer's patients. By having that form factor, for example, it makes people aware it and forget it. And so if you're a wander from a memory care and Alzheimer's perspective, that's a perfect sort of product to have on your body versus something that might be linear-based, for example.

Features and sort of products there that we're launching with that flagship product is really tied to more senior-oriented demographics. We have our activity tracker. We have medicine reminder, all of those core features that we're seeing in our Freedom Alert Max flagship. And so plus sort of additional features that include biometrics data that's really great for sort of helping us further get ourselves to that predictive care modeling work because we want to be able to utilize that data and services to help us prevent that second fall or hopefully even that first fall. So I don't see us necessarily doing that. But again, our customers candidly have always surprised us. Freedom Alert Max had strong interest in people who had kids that's earlier than 12 years old, and they don't want to give them an iPhone because there's geo-fencing, GPS packing, 24/7 monitor service.

And so if you want to give your kids a phone for emergencies, and we do have a lot of concerns in safety cares out there for young kids walking for the first time to school, they've repositioned that product for that service, right? And they're less concerned about the fall detection service that we're providing there. And so I think similarly, as we run into the market, we do have a core demographic in mind that we think really need this product and need a really good product in that particular sector that is, I think, price sensitive for that care. We're not talking about $800, $900 iwatch here, right? So -- but do I think that other sectors may pick it up? I think that as we go into the market, we will see whether or not it resonates with the other side of the sandwich for lack of a better word, right, in the sandwich generation.

So 2 follow-up questions on that, if I may. Chia-Lin, you said that you've been surprised in the past about products being adopted by a group that you hadn't originally expected or targeted. How easily could you adapt a product or take the features of a product and put them in a different type of form factor that make them even more attractive to that new demographic on a demographic you perhaps had not originally thought about when you first designed the product?

So I think that's a really good question. So I think that first and foremost, I think the reality, I think, that all of us face is that it's the 1 in 3 millennial, more than half the Gen Xers, the sandwich generation caretakers who are purchasing these items for their elderly loved ones. And so because they are sandwich generation caretakers, when they look at these products, they are typically the ones like thinking like, well, this looks great, but could I give this to my 8-year-old 2 as well as my father for the Freedom Alert Max product. And so in many ways, they're already seeing without us actually having to change any real features at all like the use of that.

And so if you look at how our products work, fraud detection is additional subscription service. And so if you choose not to turn on fraud detection, the product does not require any remodeling and potential sort of reconfiguration for use for someone who is younger, and you could just put in geofencing for 8-year-old child, right? That sort of doesn't really require a lot of reconfiguration. When we first launched the Aster product, the idea was that we were looking at very young active seniors who already have ginormous iPhones or Pixel phones, right? And so they just want something that's convenient and easy to hold in their hands or they have their products in their pocket and they're out walking their neighborhoods, right?

And it turns out that as people are buying that for their elderly active parents, they were seeing the use for their college students going off and walking pass that night in the college, right? So -- and we really haven't done so much configuration change. But the reality also is our system is modular. And so because we created a cloud-based platform caring platform as a service, our services tend to be modular and they allow us to adapt different sort of services and changes to the platform easily, which is why we saw the heavy investment early on in the days of when we were building from an R&D perspective because we created a platform that we made to be flexible for growth and partnerships and all of those things.

Okay. And then taking that discussion a little bit further, you've talked in the past about the licensing opportunity. Are some of the features that we are going to see with the fall detection and others on the watch and other near-term upcoming launches, are those features that you think would easily lend themselves to a licensing model?

Absolutely. So look, we have a very robust patent portfolio that lends itself well to licensing our first-in-class patents in AI, machine learning and any number sort of fraud detection and other category to partner with other technology or consumer partnerships. We actually have built the infrastructure so that we actually can white label our services and take segments of our product and actually white label it for your products in hardware and services as well.

And we did that deliberately because our core background as technologists is that we've worked on things such as connected cars in the past. And so we knew that we had to work with the Porsche and the Hondas and the Subarus of the world. And so we had to make things easy and modular and easy to license in parts. So we have configured all of our products to be very thoughtful about that. We build on core infrastructure that is easy for other people to integrate. So yes, and we are active in that category area right now to license our technology.

Okay. Great. And then last question. The original goal that you outlined was to move from a sale of devices of hardware into a recurring revenue model that had the technology as a large part of the overall revenue base. Where do you think the subscription model starts to play into that goal because I'm thinking that at this point, you're still in early, early stages.

I mean we're definitely seeing a product shift mix. We have in the past been traditionally an unmonitored type of service with no service layer on top of it and no recurring. And so we're slowly seeing that -- we're seeing a good shift in terms of our partners and customers purchasing the connected products and services. And so I think we're already seeing that shift already. And so nowadays, if you can buy a 911 Plus, we -- to be candid, are big believers that fall detection and personal safety should be available for everybody. So even our 911 Plus got an upgrade, it's unmonitored, but it has fall detection as part of that future because, again, fixed income, low income should not force you to be unsafe, right? And we are believers in that.

But if you are using our product in the Mini, you can see advanced sort of features and services. And because we are connected, we're able to sort of OTA additional products and services on top of that. So it doesn't become a product with a fixed service, not even a fixed recurring service, but fixed service overall. So it's not as if you could just only get fall detection for a mini, but you can get geofencing. And as we're looking at rolling out new features, maybe activity tracker, we may be able to sort of roll that service on top of the Mini and allow the users to not have to upgrade the hardware, but actually upgrade and purchase additional services. And that's really the best scenario to be in, I think, for the consumers as well as for the company.

And at this time, I am showing no further questions in the queue. I would now like to turn it back to Chia-Lin for closing remarks.

Thank you so much, Michelle. To summarize, the first quarter provided a clear signal that the strategy we laid out is working. Revenue is growing, gross margin is solid and operating expenses are declining even as we invest in the right places. Our product pipeline is on track with the wearable watch on schedule for the third quarter and our connected-home hub progressing through beta. Our IP portfolio continues to deepen and our channels are expanding and the demographic tailwinds behind aging in place are strengthening and not weakening. There's definitely more work ahead.

Improving operational leverage, scaling our monitored and connected care revenue and converting research and development investments into commercial outcomes remains the team's priorities over 2026. We are confident in the foundation we have built and in the path forward. Above all, we never lose sight of why this work matters. Behind every device and every subscription is a family trying to keep a parent, a spouse or a child safe. Our job is to give them dignity, independence and peace of mind and to do it with technology that fits naturally into the lives of the people who depend on it. As we close, I wish to thank our employees for their commitment, our customers and partners for their trust and our shareholders for your continued support. We look forward to updating you again next quarter.

This concludes today's conference call. Thank you for participating, and you may now disconnect.

Good afternoon, and welcome to LogicMark's Fourth Quarter and Full Year 2025 Conference Call. The speakers today are Chia-Lin 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 Chia-Lin 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 gains. We delivered continued momentum across our core product lineup, maintained strong gross margins and ended the year with a healthy balance sheet that supports our growth aspirations. These results reflect disciplined 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 6 of the last 7 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 Alert 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 CPaaS. We've also filed under 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's digital twin technology creates AI-powered behavioral mirrors that can help predict falls and other risk 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 the 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 health care sectors. There are also opportunities to expand into the consumer channel. From a sales perspective, LogicMark is transitioning from reinventing a new technology road map and sustainable business models to building the commercial infrastructure required to monetize these capabilities.

The additions to our business development team strengthened our leadership at an important point in our evolution. They bring deep health care 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 5-year GSA contract enhanced access to federal procurement opportunities and together with our long-standing work with VHA broadens our ability to service and capture additional revenue.

We are also taking steps into senior living facilities by leveraging our newly expanded teams decades of experience in additional areas such as behavioral health and rehabilitative therapy. Products such as our Freedom Alert Max now integrated 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 locks this data for analysis to identify potential flaws 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 the 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 medicine 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 CPaaS platform, predictive cloud services, caregiving apps and a proprietary AI-powered fall detection technology that operates without wearing device -- 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 are expanding our monetization beyond onetime 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 or 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 fee devices, monitored mobile solutions in connected care and connected home offerings designed to meet evolving customer needs.

Across health care, housing and consumer technology, the shift towards home-based care continues to accelerate. Families increasingly want solutions that help their elder adults remain independent with then 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 the ease of use for older adults and their 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 strengthened the platform for long-term growth.

With expanded sales and business development team 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 the growing care economy.

Mike?

Thanks, Chia-Lin. 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 driven by higher selling and marketing expenses, including increased compensation costs for the sales team and onetime 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 communitive 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 offering.

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.

[Operator Instructions] First question that I have coming for today is Marla Marin of Zacks.

So you've had some very strong results. This quarter and for the past few quarters, really nice revenue increases. As you continue to expand the portfolio and to expand your target market in terms of new demographics, how are you getting the word out that this is not the same company that it was just a couple of years ago?

Yes. Thank you, Marla, for the question. Yes, we -- I understand what you're asking, which is we've done quite a lot in terms of shoring up revenue and -- in the process of launching some amazing new products. And so we have actually also invested in a lot more PR and more visibility for the company as well.

I mean we are more of a B2B company with that focus. And so from that respect, we have spent more time, for example, in the past year, and we'll continue to do so in 2026, attending the numerous sort of trade shows that are basically applicable to the B2G world as well as the B2B world.

And so we have had in the ones that we've done thus far in Q1 of 2026, had some tremendous sort of feedback on the products that are in the pipeline as well as the products we already have in our portfolio. So we're very excited to get some of those direct buyer feedback. And as mentioned, we are also in part getting some of this word out, doing early beta testing with senior living and independent living facilities for our new hub connected home product as well.

Okay. And Chia-Lin, I think you mentioned the concept of aging in place. I have been reading a bit about it. And it seems to me that, that sort of creates a little bit of a positive tailwind for what you're also trying to accomplish.

Can you give us a little bit more color on exactly what you see there in terms of people increasingly wanting to age in place?

Yes. So the stats don't lie. I mean, they are incredibly, I think, positive for sort of direction where we're heading in the company. Today, if you look at a survey of people 50 plus, and over 90% of them went to age at home. And so that puts them more of a larger tailwind behind us in terms of the kind of solutions we're providing, especially as we are launching and looking at beta testing a new product that is a connected home solution.

The reality is that, of course, we are very focused on mobile on the go, and you can see that in terms of our investments into the [ wrist ] wearable products, right? But providing a potential beta and assuming all sort of goes well with our beta and as we're sort of getting feedback from potential clients such as senior living and independent living facilities, that gives us the capability to sort of get a better feel for what else and the other features we need to build out for this connected hub product.

Many, many, many falls in the home happen when people are not wearing their wearable device because they're in a shower. As much as our products are IP67 and waterproofed for that solution, most people don't want to wear a wrist watch or a linear product into the shower that just doesn't happen. But yet so much falls occur in the bathroom and shower where privacy should be guaranteed and a solution that does not involve wearing a sort of wearable should be in place.

And so we're very bullish on what we're seeing in terms of the beta trials as it's going on. And so what that brings into the forefront is very few people today in the world that we are living in, in the medical alert business is trying to connect not just a sort of home-based fall detection, but they're not like radar, LiDAR, millimeter wave, whatever they're using to sort of look at tracking like movement or some type of connected home solution; but that connection and solution also is tied to a wearable device because you're not going to -- you shouldn't have to deal with two separate solutions just because you're aging in home. You should be able to a solution when you're in a shower that connects to the same solution that you're going to get up and where your device is charging, wearable device is charging and you're using -- bathroom right will still be protected. And as you strap on a wrist watch and go out to the world and go shopping at Safeway, and you're walking there and now fall, all of those things should be connected to one ecosystem and one experience, right? Your caretaker shouldn't have to use 2 or 3 different types of ecosystems and apps and services to basically help keep you safe.

And that's where we think that directionally things should be going. Not everybody's sort of focused on one small slice of the solution. And what we're really trying to do is build an ecosystem where everybody could participate so that people aging in place, of which there are a ton of, are able to do so in a smooth, easy, simplified way versus trying to sort of have together two or three different systems, which I think is much more difficult to do.

That makes sense. And does that mean that in terms of your goal to, over the long term, potentially license out some of the technology that you're developing and that you're also protecting via patents? Does that mean in terms of the -- providing a holistic solution, a whole solution like that, the licensing component of the strategy will become increasingly more important over time?

Yes, absolutely. Look, I mean, we have been extremely thoughtful since I joined the company in June of 2021 to build this really strategic interlocking IP portfolio. so that we can really build something that would keep on our competitors, but also build an ecosystem that can be inclusive.

So if you think about sort of a connected home environment today, even the connected world of home that we live in today, your [ ecobee ] doesn't really want to oftentimes talk to the connected lock thing , which doesn't want to talk to something else. And then there's the Apple solution, and there's X solution and Y solutions. So our interest is to try to build something that for lack of a better word, is the senior proofing of your home.

Just like when people have a baby, they have 9 months to plan for baby proofing their home, making sure everything is safe. How do we provide a sort of plug-and-play experience that allow people to sort of set up immediately to have that comfort, right?

And that means the inclusion of partners looking in areas that we don't really have strengthened. I mean I'm never going to build a blood pressure monitor product. That's difficult. And -- but that data today is often unconnected and it sits in a part of data.

And so in order to decipher whether or not there's patterns to change in your blood pressure, it has to go into a whole another sort of app and service and then maybe through another service where you maybe have to do some sort of analysis of the human to sort of look at that, and maybe you won't be able to compute the data out of like 6 months' worth of data that is fluctuating day to day, right?

I think human brains have really great capacities. But looking for minute mute day-to-day changes on a longitudinal server perspective is very difficult. But you can imagine as partnering with potentially a blood pressure monitor company to help sort of feed that data to the caretakers because the caretakers have an app that's basically tracking the daily monitoring of falls. So it's an easy opportunity for us to sort of share that data as well so that they have a reassurance.

But you can also imagine then for -- because we have geofencing for people with Alzheimer's and early memory care issues that perhaps we want to connect our hub -- connected home hub to the connected lock company because before you start rolling out of that, let's say, 0.5 mile radius from your home, perhaps the early patterns is that you open your door at 3 a.m. at night and then you step out into your yard, you don't know why you're there. You go back in again.

And so that actually becomes a the valid pattern that then starts happening more and more frequently before you even go outside of that geo fencing that we set up with you.

And so imagine that we are able to try to get ahead of that and see some of the potential behavioral changes in patterns, partner with folks such as in all of these different categories that we're not -- we don't have strengthened, we have no experience and connect to door locks. That partnership and IP licensing in all of those can actually help bring again a cut solution for somebody who is looking to age at home and gave their caregivers that reassurance that all of these things into play well together.

Okay. That sounds like an incredibly interesting road map. So now I'm switching gears a little bit. Mark, you've mentioned disciplined approach to operating expenses. Should we think that going forward, you will continue to focus on containing costs wherever you can and then balancing, obviously, some of the investments that you want to make in order to grow the company?

Yes, you should very definitely plan on that. And the big pivot for us was 12 to 18 months ago where we switched from investing so much in new product development to investing in sales and marketing, commercializing the products that we developed. And I think we're in a pretty good situation with the team now. We did add some additional people in 2025.

So the goal is to keep that growth as near to single digits as possible going forward, and there is a real effort in the company to be aware of we're doing that. We're also looking at AI as an opportunity to take costs out of the business, and we've already implemented a couple of programs on that end.

Okay. Great. That's good to know. And then two last questions, mostly housekeeping. One, you had a very strong fourth quarter. And I I'm wondering, do you anticipate that there will be some seasonality over time, even as you continue to sort of expand your target addressable market,and your product portfolio? Are you thinking there will be some seasonality?

So I think as to the core VA business, there is some seasonal aspect of it. not a lot. There's some seasonal aspect. As we have started focusing on B2B sales, I think there will be a ramp-up of that, and I think that will affect the quarterly results, not so much from a seasonal standpoint, but from a ramp standpoint.

And we also have started an initiative to license our intellectual property. And so that will also impact quarterly results, but not on the smooth, more on an opportunistic basis.

Thank you. At this time, this does conclude the Q&A session. I'd like to turn the call back over to Chia-Lin for closing remarks. Please go ahead.

Thank you. Let me close by highlighting a few key points from today's discussion. LogicMark enter 2025 with a clear plan and executed against it. The combination of revenue growth, margin strength and liquidity provides us with momentum in 2026.

The work we've done to expand the platform, brand distribution and strengthen our intellectual property is not just about this quarter or this year, it's about making sure that as this market grows, we have the right foundation, product road map and channel strategy.

There is more work to be done and the building blocks are in place. Improving operational leverage, scaling monitored and connected care revenue and continuing to convert research and development investments into commercial outcomes are priorities for this team in 2026.

We're grateful for the support of our shareholders, partners and team, and we look forward to updating you on our progress throughout the year. Thank you.

This does conclude today's program. Thank you so much for joining. You may now disconnect.

Good afternoon, and thank you for participating in today's LogicMark Third Quarter 2025 Conference Call.

Today, our speakers will be 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.

Statements made on this call may include reference to non-GAAP financial measures as defined in Regulation G of the Securities Exchange Act of 1934, including adjusted EBITDA which is reconciled to the most directly comparable GAAP financial measures.

Management believes that non-GAAP adjusted EBITDA provides investors with insight into the company's overall operating performance. The content of this call contains accurate time-sensitive information only as of today, November 12, 2025. 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 Chia-Lin Simmons. Please go ahead.

Thank you, Daniel. Good afternoon, everyone, and thank you for joining our call today. At LogicMark, we're doing something important, helping people live independently, while staying connected to the caretakers and loved ones who matter most. Our personal emergency response systems and safety devices are built on 3 core principles: safety, dignity and independence because connected care should be both intelligent and deeply human.

Over the past year, we've been intentional about evolving our business model. We're moving beyond selling stand-alone devices to building a comprehensive platform that layers subscription monitoring, predictive analytics and actionable insights on top of our proven hardware foundation. This isn't just a business shift. It's fundamental to our long-term growth strategy. By expanding lifetime customer value, deepening caregiver engagement and creating recurring revenue streams, we're building a more sustainable business that better serves the people who depend on us.

As you saw in today's release, our third quarter results reflect steady execution. We delivered year-over-year sales growth and revenue increases in 5 of the last 6 quarters, a significant milestone that shows the durability of our strategy.

What's contributing to this performance? 2 things: strong sales to our VA partners, and our continued shift towards B2B channels. We've been deliberate about focusing our efforts on the areas where we see the strongest returns, our VA and government contracts, our nationwide dealer and reseller network and our growing base of health care-oriented partners.

At the same time, we've maintained disciplined spending while investing in the areas that support sustainable growth. Our balance sheet remains healthy, giving us the flexibility to continue investing in innovation and infrastructure.

Let me talk about where we focused our execution this year. Simplifying, prioritizing and aligning around the channels and offerings that create the highest value. Within the VA and Government segment, we continue to build on our general services administration, GSA contract, which enables sales to federal, state and local entities. These partnerships remain a steady and important mission-aligned part of our business, helping us serve veterans, first responders and seniors who benefit most from accessible technology-enabled safety solutions.

In the dealer and reseller channel, we're deepening engagement through new enablement tools and joint marketing initiatives to drive higher attach rates for subscription monitoring and digital care features. And within direct-to-consumer e-commerce, including our own website and Amazon, we're refining our messaging and improving conversion rates. Together, these channels form a balance, scalable go-to-market engine that positions LogicMark for consistent revenue growth and expanding services adoption.

This quarter, we've achieved significant progress with new products, launching 2 key innovations, medicine reminders and activity metrics. These features evolve LogicMark's approach from not just providing excellent reactive safety technology but also to start providing proactive analytics, and that distinction is crucial.

Let me explain what these do. The LogicMark predictive activity metrics leverages our proprietary algorithms to identify subtle changes in user behavior that may indicate increased risk of falls or medical events. This technology allows caregivers to intervene earlier, reducing the risk of emergencies and improve the quality of life.

Medication reminders allow caregivers to schedule doses directly to the user's device, eliminating the need for separate apps and streamlining medication adherence. These advances are part of our AI-enabled care and analytics platform.

Think of it as a platform that holds a virtual digital twin model that mirrors each user's real-world patterns to evaluate pattern differences and potential risks and helps to provide proactive intervention data to caretakers. Over time, this AI-enabled platform evolves into a continuous learning ecosystem that connects those being cared for, caregivers and their data in a unified feedback loop.

We're protecting our technology innovation through a growing intellectual property portfolio. LogicMark has filed 44 patent filings, of which 24 have been issued. Of these patents, 22 have been filed since June of 2021. We have additional pending patent filings covering device architecture, fall detection algorithms, and caregiver communications frameworks. Those additional applications in preparation helped us to continue to strengthen and maintain our position as a leading innovator in the personal safety and care technology space.

LogicMark recently commissioned a national safety survey with a third-party research firm, and the findings reinforce what we hear every day from our customers and caregivers. Three things stand out. People want safety solutions they can trust, simplicity they can manage and the ability that keeps their loved ones informed. The market is clearly validating this direction. These insights are guiding both our product road map and our go-to-market messaging. We're designing technology that removes barriers, solutions that work without complexity.

The survey also revealed that what matters most when people choose a personal safety system is trust in the brand, the ease of setup and alert reliability. Those top decision factors: quality, ease of use and service reliability are areas that LogicMark has already been focused on. And we believe they also further differentiates us in the market.

At its core LogicMark's mission is to deliver safety, independence and peace of mind for everyone we serve. From college students to seniors aging in place, to veterans transitioning to independent living. Every device we build, every service we design and every partnership we pursue flows from that purpose.

Following our observation of Veterans Day this week, we extend our gratitude to veterans and their families and reaffirm our commitment to serving them through our VA channels and partners. Supporting those who have served our country is part of our company's DNA and a powerful example of how mission and market opportunities align.

Looking ahead, our priorities remain clear. One, increased adoption of bundled monitoring and subscription services to expand recurring revenue; two, advanced the LogicMark AI-enabled care and analytics platform to continue to move from not just reactive alerts, but also to proactive care. And three, strengthen go-to-market execution focused on VA government and B2B distributor partner channels.

LogicMark is entering to the next phase of its transformation, one where product innovation, AI and data analytics and channel optimization come together to create durable, compounding value.

Before I turn it over to Mark, I want to thank a few people, our employees for their commitment and creativity, our customers for their trust, and our partners for their collaboration. Together, we're redefining connected care with purpose, position and compassion.

With that, I'll hand the call over to Mark for a summary of our financial results.

Thank you, Chia-Lin. Our third quarter results reflect disciplined execution and steady year-over-year progress. Revenue rose 8% to $2.9 million compared with $2.7 million a year ago. Our sales to the VA remains strong despite all the headwinds coming from Washington.

Our updated version of the Guardian Alert 911 Plus, now with fall detection has exceeded our expectations and sales of the Freedom Alert Mini introduced last year continued to grow.

Gross profit increased to $1.9 million, and the gross margin remained strong at 66%, relatively unchanged year-over-year and on a year-to-date basis. We have now transferred the manufacturing of our 2 most popular units from China to Taiwan.

Turning to operating expenses for the third quarter. We reported $3.7 million up modestly from $3.4 million compared with the prior year period as we continued investing in commercial leadership and software innovation while seeking to maintain cost controls in other areas. This resulted in an operating loss of $1.7 million compared with $1.6 million last year.

The net loss per -- after preferred stock dividends was $1.7 million or $2.21 per share versus a net loss of $1.6 million or $3,732 per share in the prior year period. The prior year loss per share has been adjusted to reflect the 1 for $750 million reverse stock split that was completed on October 24, 2025.

The company is currently trading under the symbol LGMK.D on the OTC market. We expect to resume trading on or about November 17 under the old ticker symbol LGMK upon FINRA's completion of the symbol change process.

We know that long-term value will come from revenue growth and strong execution, and we continue to focus on these important KPIs. We ended the quarter with $11.7 million in total liquidity and continue to operate with no long-term debt.

At this time, I'd like to turn the call over to the Q&A portion.

[Operator Instructions] I'm showing no questions at this time. I would now like to turn it back to Chia-Lin Simmons for closing remarks.

Thank you, Daniel. In closing, our focus is clear. We're executing a targeted business plan with clear priorities, expanding our VA and government relationships, strengthening our B2B distributor and partner network, improving our direct-to-consumer channels and subscription services and continuing to innovate in AI and machine learning software and hardware.

With a solid balance sheet and increasing revenue, we're well positioned to continue delivering progress. Thank you again to our shareholders, customers, partners and entire LogicMark team. I appreciate your time.

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