Executive Summary

Delivered Q3 revenue of $2.71M (+14% YoY) with gross profit of $1.80M (+13% YoY) and gross margin steady at 67% for the sixth consecutive quarter; sequential OpEx fell 6% vs Q2 as adjusted EBITDA loss narrowed to ~$0.8M .
Freedom Alert Mini (FA Mini) traction was the standout driver: units sold jumped to 1,106 in Q3 from 191 in Q2 as the product gained momentum in VA/government and consumer channels .
Strategic partnership with Service-Disabled Veteran-Owned Small Business Black Knight Medical should expand access to VA/government contracts and accelerate distribution of LogicMark’s PERS devices to veterans .
No formal financial guidance was issued; consensus from S&P Global was unavailable at time of analysis, limiting beat/miss assessment .
Corporate items: shareholders approved a reverse split on Oct 1 to aid Nasdaq compliance; the company adopted a rights plan on Nov 1 amid shareholder actions—both could influence trading dynamics and liquidity perceptions .

What Went Well and What Went Wrong

What Went Well

FA Mini adoption accelerated meaningfully: 1,106 units in Q3 vs 191 in Q2, contributing to double-digit YoY revenue growth; CFO: “Higher sales of … Guardian Alert 911 Plus [and] Freedom Alert Mini … drove the improved results” .
Gross margin sustained at 67% for the last six quarters despite cost pressures, supported by mix shift to higher-margin products; CEO: “we achieved significant revenue growth… while successfully maintaining strong gross margins” .
Operating discipline: Q3 OpEx was $3.4M, flat YoY and 6% lower sequentially; management cited lower G&A as a driver of sequential decline .

What Went Wrong

Profitability remains the primary challenge: adjusted EBITDA loss of ~$0.8M and net loss to common of $1.6M; EPS was ($0.20), slightly worse net loss YoY ($1.6M vs $1.5M) even with improved revenue .
DTC/Amazon scaling is hard: CEO noted Amazon is “not an easy platform… [it] takes a bite out of your margins,” and requires sustained operational effort to optimize .
Capital markets/listing overhang: reverse split approval and adoption of a rights plan reflect ongoing listing and shareholder dynamics that can weigh on sentiment and increase perceived risk .

Financial Results

Quarterly Trend (oldest → newest)

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($)	2,611,083	2,336,268	2,705,461
Gross Profit ($)	1,767,218	1,554,950	1,801,627
Gross Margin (%)	68%	67%	67%
Total Operating Expenses ($)	3,572,913	3,625,832	3,401,179
Adjusted EBITDA ($)	N/A	N/A	(785,000)
Net Loss to Common ($)	(1,819,543)	(2,113,857)	(1,593,805)
Diluted EPS ($)	(0.85)	(0.96)	(0.20)
Cash & Equivalents ($)	5,047,449	2,959,815	5,585,835

Q3 2024 vs Prior Year and vs Estimates

Metric	Q3 2023	Q3 2024	S&P Global Consensus
Revenue ($)	2,367,227	2,705,461	N/A (unavailable)
Gross Profit ($)	1,597,271	1,801,627	N/A (unavailable)
Gross Margin (%)	67%	67%	N/A (unavailable)
Adjusted EBITDA ($)	(1,100,000)	(785,000)	N/A (unavailable)
Net Loss to Common ($)	(1,519,476)	(1,593,805)	N/A (unavailable)
Diluted EPS ($)	(1.10)	(0.20)	N/A (unavailable)

Notes: S&P Global consensus was unavailable at time of analysis; thus, we cannot assess beat/miss vs Street for Q3 2024 [functions.GetEstimates error].

KPIs and Other Items

KPI	Q2 2024	Q3 2024
Freedom Alert Mini units sold (units)	191	1,106
Gross Margin (%)	67%	67%
Operating Expenses ($)	3,625,832	3,401,179

Segment reporting: the company operates in one segment .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY or Q4	None issued	None issued	Maintained (no guidance)
Gross Margin	FY or Q4	None issued	None issued	Maintained (no guidance)
Operating Expenses	FY or Q4	None issued	None issued	Maintained (no guidance)
EPS/Adj. EBITDA	FY or Q4	None issued	None issued	Maintained (no guidance)

Corporate context (not guidance): reverse split approval on Oct 1 to regain Nasdaq compliance; rights plan adopted Nov 1 in response to shareholder actions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
AI/ML & IP portfolio	Q1: expanding CPaaS stack; 12–14 patents; focus on AI/ML and behavior monitoring . Q2: continued IP filing; AI/ML positioning .	23 total patents allowed/issued; ongoing AI/ML focus; exploring licensing opportunities .	Strengthening; more explicit licensing angle .
DTC/Amazon channel	Q2: Amazon launch for Mini and Guardian 911; DTC is important but challenging .	Amazon continues to be difficult, impacts margins; incremental effort underway .	Building but operationally demanding .
Government/VA channel	Longstanding VA relationship; GSA contract; health B2B focus .	Black Knight Medical SDVOSB partnership to expand VA/government access .	Positive channel expansion .
Product performance (FA Mini)	Q2: launched Mini; early traction .	Units surged to 1,106; features (fall detection, geofencing, GPS, 24/7 monitoring) emphasized .	Strong acceleration .
Personal safety (Aster app)	Q1–Q2: launched; broadening TAM; B2B2C opportunities .	Early days; ongoing product-market fit work; more Q4 marketing planned .	Iterating; early stage .
Margins/Cost	Q1: gross margin 68%; improved supply chain . Q2: 67% margin; OpEx down YoY .	67% maintained; sequential OpEx -6% .	Stable margins; improving expense discipline .
Regulatory/listing	Q1: Nasdaq bid-price noncompliance notice .	Reverse split approval; rights plan adopted .	De-risking listing; governance actions .

Management Commentary

CEO on execution and strategy: “we achieved significant revenue growth… while successfully maintaining strong gross margins… [FA Mini] has been met with positive reception, affirming the effectiveness of our go-to-market strategy” .
CFO on drivers: “Higher sales of … Guardian Alert 911 Plus [and] Freedom Alert Mini … drove the improved results… Total operating expenses… were… 6% lower than the second quarter of 2024” .
CEO on AI/licensing: “we’re interested in being more than just a hardware company… you’ll… see the launch of a… highly visible ecosystem product… we certainly see a lot of promise [for licensing]” .
CEO on DTC/Amazon: “Amazon… is not an easy platform… [They] take a bite out of your margins… we’re actively participating in… programs… [to] get products… to the customer” .

Q&A Highlights

FA Mini traction and promotion: Management attributed unit surge to product differentiation and sustained outreach into VA/government and reseller channels; not a one-off promo spike .
DTC/Amazon economics: Amazon essential for reach but challenging operationally and margin-dilutive; team is optimizing logistics, authenticity/transparency programs, and shipping to improve outcomes .
IP monetization: Management reiterated intent to pursue software-like margins via platform/ecosystem and potential third-party licensing, with a strategically built AI/ML-heavy IP fence .
Aster app state: Early stage; ongoing tuning to product-market fit; additional Q4 marketing planned to drive adoption .

Estimates Context

Street consensus: S&P Global consensus estimates for Q3 2024 were unavailable at time of analysis (data access limit), so we cannot assess revenue/EPS beats or misses versus the Street [functions.GetEstimates error].
Implication: Absent formal consensus, sell-side estimate updates may be limited; investors should focus on sequential momentum (FA Mini units, OpEx control) and channel catalysts (Black Knight partnership) for forward expectations .

Key Takeaways for Investors

Product-led acceleration: FA Mini is gaining real traction, evidenced by a >5x sequential unit increase; monitor whether unit momentum sustains into Q4/Q1 seasonality and how mix impacts margins .
Margin durability: 67% gross margin appears resilient due to higher-margin mix; watch logistics costs and Amazon mix which can pressure unit economics .
Operating leverage inflection: Sequential OpEx decline and narrowing adjusted EBITDA loss suggest improving cost discipline; continued growth could drive operating leverage in 2025 .
Government channel catalyst: The SDVOSB partnership with Black Knight Medical could accelerate VA/government wins; pipeline conversion here is a key catalyst .
DTC execution risk: Amazon is a necessary but margin-dilutive channel—success depends on ongoing optimization and brand protection programs .
Governance/listing overhang: Reverse split and rights plan address listing/shareholder dynamics but may add volatility; track liquidity and compliance milestones .
Medium-term thesis: Transitioning from hardware-only to a platform model (CPaaS + AI/ML + IP monetization) could expand TAM and margins if execution on licensing/recurring revenue succeeds .

Cross-References and Data Sources

Q3 2024 press release and financials (8-K Item 2.02; Exhibit 99.1, statements) .
Q3 2024 earnings call transcript .
Black Knight Medical partnership press release .
Q2 2024 results (press release and transcript in 8-K) .
Q1 2024 10-Q (financial statements and MD&A) .

LogicMark, Inc. (LGMK)·Q3 2024 Earnings Summary