Nxt-ID, Inc. (NASDAQ:NXTD) Q1 2020 Earnings Conference Call - Final Transcript

May 19, 2020 • 04:10 pm ET

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Nxt-ID, Inc. (NASDAQ:NXTD) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Nxt-ID Investor 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. [Operator Instructions]

I would now like to hand the conference over to your speaker for today, Mr. Vin Miceli. Sir, you may begin.

Executive
Vin Miceli

Thank you, Valerie. Good afternoon, all. And thank you for joining our call today to discuss Nxt-ID's unaudited financial and operating results for the 3 months ended March 31, 2020 and to provide a general update on the business.

During this afternoon's call, we'll be making forward-looking statements, which consist of statements that cannot be confirmed by reference to existing information, including statements regarding our beliefs, goals, expectations, forecasts, projections and future performance and the assumptions underlying such statements.Please note that there are a number of factors that will cause actual results to differ materially from our forward-looking statements, including factors identified and discussed in our SEC filings. Please recognize that except as required by applicable law, we undertake no duty to update any forward-looking statements, and you should not place any undue reliance on such statements. So, again, thank you for joining. Again, Vin Miceli. I am here today with Kevin O'Connor. We will use the format that we have used in the past. I will provide an update on the financial results for the first quarter of 2020, and then I'll turn the call over to Kevin, who will provide a current update on the business over at LogicMark.

Kevin will turn it back over to me for some closing remarks. And then, we'll open the call up for some Q&A. So, with that, I'll start with the financial results for the first quarter. And as we included in our press release, revenues for Q1 came in at about $3.7 million compared to $4.2 million for the three months ended March 31, 2019. If you'll recall from the call that we had back in the early part of April, Kevin and I had given our investors some preliminary -- a preliminary indication that we started to see some softening in our revenues around the middle point of March.

And so, in estimating that number, I believe the number was somewhere around -- the miss was about $400,000 in revenue that we did not get because of the COVID pandemic. Now, obviously, that's just an estimate. I think it's a fairly conservative estimate. But, I think it puts it a little bit more in perspective. And more importantly, the contribution margin that was missed from the missing revenue was probably somewhere in the neighborhood of $300,000, based on our gross profit margin. So, hopefully, that gives you a little bit more insight. The gross profit for the quarter this year came in at $2.8 million versus $3.2 million for the 2019 comparable period.

The gross profit margin percentage, very strong, continues to be very, very strong at approximately 75%, which