By M. Marin
OTC:LGMK
READ THE FULL LGMK RESEARCH REPORT
Expanding distribution channels, greater emphasis on DTC & online expected to lower CAC over time
LogicMark, Inc. (OTC:LGMK) has made significant strides as it transforms its business to a personal safety company offering recurring revenue solutions for a wide target market. The company’s legacy business focused on providing personal emergency response systems (PERS), primarily for older adults. The company continues to modernize, enhance, and improve its offering for older adults, but it becomes increasingly clear that personal safety needs extend beyond this demographic.
The company is expanding the distribution channels through which it sells its products and applications, emphasizing DTC (direct to consumer) and the online category. The company expects to reduce its blended customer acquisition costs (CACs), lower its sales cycles, and boost sales by increasing its focus on the DTC and online channels. The United States Veterans Health Administration (VHA) remains an important relationship for LGMK. LogicMark has been selling PERS devices to the U.S. government for many years and has been selling to the Veterans Administration since 2013. The VHA is the largest hospital network in the United States, and the largest VA recently announced plans to direct record allocations to improve its health care infrastructure. Over the past decade, LogicMark has sold more than 800,000 appliances to the VA and has also secured approval for products in its portfolio to be procured through the GSA, which enables agencies, including the VA, to purchase and distribute these devices to the communities they serve.
New products, expanded distribution, salesforce, and marketing efforts
In terms of older adults, the demand for safety monitoring is expected to grow as baby boomers become seniors. The population of adults aged 65 and older is expected to jump dramatically over the next few years in what has been broadly described by Forbes and other publications as the Silver Tsunami. In the U.S., 10,000 baby boomers turn 65 every day. Baby boomers represent a large and wealthy component of the U.S. population, comprising roughly 72 million adults. As they age, the implication is that there soon will be more older adults in the U.S. than people under the age of 18.
Importantly, most baby boomers are expected to live independently, in turn driving demand for connected and remote monitoring devices. Therefore, the aging of the population is expected to drive demand for technology services that can help people remain independent, improve their quality of life, and live at home. The latter is critical, as growing numbers of older adults report their desire to remain independent. For example, in March 2023, U.S. News & World Report surveyed 2,000 U.S. adults 55 and older and found that more than 90% of people 55+ and older want to age at home and remain in their communities. Similarly, a survey from Today’s Homeowner found that 85% of adult Americans age 55 and over want to remain in their homes. Of these, 43% attributed this to the desire to remain independent.
However, PERS technology has not kept pace with the changing needs of older adults. With more active lifestyles compared to earlier generations of people age 55 and over, clunky models that were offered in the past do not work for many, if not most, seniors. LogicMark believes there has been little innovation in the home monitoring space, reflecting several factors, including that the PERS sector is highly fragmented, with a number of privately-held small competitors, and other companies are subsidiaries of larger corporations that do not prioritize this business. The company estimates that it is among the few companies in the space innovating to modernize remote monitoring devices and platforms, including adding and enhancing preventive and predictive technology.
Thus, a core aspect of LogicMark’s growth strategy is to expand the product line and boost awareness and sales of a growing suite of products and services. The company’s goal is to move from legacy devices that were merely reactive when seniors fell or experienced other emergencies to proactive health monitoring devices and software solutions that can help prevent emergencies, falls, and other safety issues from occurring and enable people to remain independent safely. The company expects new products and services to both diversify and augment its revenue streams and contribute to growing recurring revenues over time.
Recent product and solution introductions and/or upgrades
- Freedom Alert Mini
- Guardian Alert 911 Plus
- Freedom Alert Max
- Activity metrics feature in the Freedom Alert Max
- Medication reminders feature in the Freedom Alert Max
- Aster software application
As it becomes evident that personal safety needs extend beyond the older demographic, LGMK is also expanding beyond its legacy target market to provide a broad range of personal safety and emergency response systems, health communications devices, and technology to what the company terms “the growing care and safety economy.”
Broadening its target market, LogicMark introduced Aster in 2024. It is a software application that is subscription-based, available on the Apple and Google Play Stores. The LogicMark Bluetooth button can be worn or attached to the user’s pocket, key, or other convenient location and can be paired with Aster to provide quick access to Aster. The company believes Aster illustrates how well it can leverage its technology to launch new Internet of Things (IoT) solutions to help ensure safety for a broadening group of users and enable caregivers and family to monitor the health and safety of loved ones remotely. The company envisions a broad market for Aster, ranging from college students concerned about their on-campus security, real estate agents showing houses alone, active seniors, and more.
In fact, the company sees an extensive market for Aster that ranges from college students concerned about their on-campus security to active seniors and others. LGMK recently commissioned a national survey related to women’s safety. The findings show women increasingly turn to mobile technology to ensure their safety. Seventy percent of respondents text or call friends or family to communicate their whereabouts, while half actively share their location through smartphone features and apps. The company believes this highlights the potential for Aster and other solutions it has under development.
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