Loading, Please Wait...

CST: 22/05/2018 06:27:52   

OmniComm Reports Financial Results for the Quarter Ended March 31, 2018

6 Days ago

FORT LAUDERDALE, Fla., May 15, 2018 (GLOBE NEWSWIRE) -- OmniComm Systems, Inc. (OTCQX:OMCM), a global leading provider of clinical data management technology, today announced record financial results for the quarter ended March 31, 2018.

“We are off to a considerably better start this year in comparison to last year,” said Stephen Johnson, chief executive officer and president of OmniComm. “With more than 120 clients and the introduction of three new product lines — IRTMaster, Acuity and AutoEncoder — we are well-positioned for strong financial growth in the near future. These new product lines, coupled with a shift in our business toward a subscription model, will enhance the predictability and sustainability of future revenue.”

For the quarter ended March 31, 2018, OmniComm reported revenue of $7.2 million, a 25% increase over the prior year’s first quarter revenue of $5.7 million. Gross margin improved by 35% to $6.0 million. Operating expenses increased by 15% or $0.6 million to $5.1 million, which resulted in operating income of $0.9 million. EBITDA, a non-GAAP financial measure OmniComm uses as an additional financial measure, was $1.0 million compared to $0.1 million in the first quarter of 2017.

OmniComm provides EBITDA, a non-GAAP financial measure as additional information to its financial results.  Non-GAAP EBITDA excludes the impact of depreciation and amortization expenses that are included in operating income. Non-GAAP EBITDA is not an alternative or substitute for the financial measure prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) of operating income. The non-GAAP EBITDA financial measure presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define this non-GAAP financial measure in the same way. OmniComm’s management uses non-GAAP EBITDA as a measure of operational efficiency and as a goal for incentive compensation. Management believes non-GAAP EBITDA is a useful measure investors may use as an additional factor in their analysis of OmniComm’s performance. Please review the below reconciliation of the non-GAAP financial measure EBITDA to the GAAP financial measure operating income, as well as OmniComm’s financial statements as filed with the Securities and Exchange Commission.

  OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES
  Reconciliation of GAAP operating income to non-GAAP EBITDA
             
        For the three months ended
        March 31,
          2018     2017
             
  Operating income/(loss) (GAAP) $   905,136   $   15,984
  Depreciation expense     77,776       79,924
  Amortization expense     64,149       5,403
  EBITDA (non-GAAP) $   1,047,061   $   101,311
             


Forward-Looking Statements
Statements contained in this press release that are not historical facts are "forward-looking statements." These statements can often be identified by the use of forward-looking terminology such as "estimate," "project," "believe," "expect," "may," "will," "should," "intends," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We wish to caution the reader that these forward-looking statements regarding matters that are not historical facts are only predictions and are based on information available at the time and/or management's good faith belief with respect to future events. No assurance can be given that plans for the future will be consummated or that the future results indicated, whether expressed or implied, will be achieved. While sometimes presented with numerical specificity, these plans and projections and other forward-looking statements are based upon a variety of assumptions, which we consider reasonable, but which nevertheless may not be realized. Because of the number and range of the assumptions underlying our projections and forward-looking statements, many of which are subject to significant uncertainties and contingencies that are beyond our reasonable control, some of the assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the date of this press release. Therefore, our actual experience and results achieved during the period covered by any particular projections or forward-looking statements may differ substantially from those projected. Consequently, the inclusion of projections and other forward-looking statements should not be regarded as a representation by us or any other person that these plans will be consummated or that estimates and projections will be realized, and actual results may vary materially. There can be no assurance that any of these expectations will be realized or that any of the forward-looking statements contained herein will prove to be accurate. Forward-looking statements speak only as of the date the statement was made. OmniComm does not undertake any obligation to update or revise any forward-looking statement made by it or on its behalf, whether as a result of new information, future events or otherwise.

  OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES    
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS    
  (unaudited)    
                 
        For the three months ended    
        March 31,    
          2018       2017      
  Revenues     $   7,040,369     $   5,658,176      
  Reimbursable revenues     150,103         77,354      
  Total revenues       7,190,472         5,735,530      
                 
  Cost of goods sold     1,153,625         1,080,690      
  Reimbursable expenses-cost of goods sold     57,876         211,804      
  Total cost of goods sold     1,211,501         1,292,494      
                 
  Gross margin       5,978,971         4,443,036      
                 
  Operating expenses          
  Salaries, benefits and related taxes     3,659,340         3,290,583      
  Rent and occupancy expenses     289,334         278,952      
  Consulting services     125,536         59,629      
  Legal and professional fees     221,252         147,357      
  Travel         200,396         287,691      
  Telephone and internet     29,683         39,258      
  Selling, general and administrative     409,756         208,889      
  Bad debt expense       (3,387 )     29,366      
  Depreciation expense     77,776         79,924      
  Amortization expense     64,149         5,403      
  Total operating expenses     5,073,835         4,427,052      
                 
  Operating income/(loss)     905,136         15,984      
                 
  Other income/(expense)          
  Interest expense, related parties     (225,418 )       (231,459 )    
  Interest expense       (90,943 )       (107,998 )    
  Interest income       5         1      
  Change in derivative liabilities     28,416         393,340      
  Transaction gain/(loss)     (22,678 )       5,300      
  Income/(loss) before income taxes     594,518         75,168      
  Income tax (expense)     (1,035 )       (1,194 )    
  Net income/(loss) attributable to common stockholders $   593,483     $   73,974      
                 
  Net income/(loss) per share          
    Basic     $   0.00     $   0.00      
    Diluted   $   0.00     $   0.00      
  Weighted average number of shares outstanding          
    Basic         149,653,916         147,785,621      
    Diluted       152,693,666         147,953,716      
                 


                 
  OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES  
  CONSDENSED CONSOLIDATED BALANCE SHEETS  
                 
                 
          March 31, 2018   December 31, 2017  
          (unaudited)      
  ASSETS  
                 
  CURRENT ASSETS          
    Cash   $   1,175,737     $   1,176,551    
    Accounts receivable, net of allowance for doubtful accounts of $146,593 and $149,980, respectively       5,993,778         7,492,597    
    Prepaid expenses       267,584         297,131    
    Other current assets       20,734         11,463    
      Total current assets       7,457,833         8,977,742    
    Property and equipment, net       569,154         552,538    
    Other assets          
    Intangible assets, net       1,088,479         97,925    
    Other assets       67,691         46,714    
                 
  TOTAL ASSETS   $   9,183,157     $   9,674,919    
                 
  LIABILITIES AND SHAREHOLDERS' (DEFICIT)  
                 
  CURRENT LIABILITIES          
    Accounts payable and accrued expenses   $   1,561,512     $   2,586,045    
    Deferred revenue, current portion       5,388,991         7,564,587    
    Convertible notes payable, current portion       50,000         50,000    
    Patent settlement liability, current portion   -0-       112,500    
    Conversion feature liability, related parties       1,568,527         1,604,723    
    Conversion feature liability       86,117         81,224    
    Warrant liability, related parties       2,162,345         2,196,570    
    Warrant liability       1,281,341         1,244,229    
      Total current liabilities       12,098,833         15,439,878    
                 
  LONG TERM LIABILITIES          
    Line of credit, long term       4,400,000         2,650,000    
    Notes payable, related parties, long term, net of current portion, net of discount of $93,892 and $117,365, respectively       306,108         282,635    
    Notes payable, long term, net of current portion, net of discount of $248,357  and $279,402, respectively       454,143         423,098    
    Deferred revenue, long term, net of current portion       1,845,835         1,952,366    
    Convertible notes payable, related parties, long term, net of current portion       5,770,000         5,770,000    
    Convertible notes payable, long term, net of current portion       350,000         350,000    
                 
  TOTAL LIABILITIES       25,224,919         26,867,977    
                 
  COMMITMENTS AND CONTINGENCIES          
                 
  SHAREHOLDERS' (DEFICIT)          
    Preferred stock, $0.001 par value, 10,000,000 shares authorized, 3,772,500 shares undesignated          
    Series A convertible preferred stock, 5,000,000 shares authorized, -0- and -0- issued and outstanding, respectively, at $0.001          
    par value; liquidation preference $-0- and $-0-, respectively   -0-   -0-  
    Series B convertible preferred stock, 230,000 shares authorized, -0- and -0-  issued and outstanding, respectively, at $0.001 par value;          
    liquidation preference $-0- and $-0-, respectively   -0-   -0-  
    Series C convertible preferred stock, 747,500 shares authorized, -0- and -0-  issued and outstanding, respectively, at $0.001 par value;          
    liquidation preference $-0- and $-0-, respectively   -0-   -0-  
    Series D preferred stock, 250,000 shares authorized, 250,000 and 250,000 issued and outstanding, respectively, at $0.001 par value       250         250    
    Common stock, 500,000,000 shares authorized, 150,209,472 and 148,542,805 issued and outstanding, respectively, at $0.001 par value       150,211         148,544    
    Additional paid in capital - preferred       999,750         999,750    
    Additional paid in capital - common       54,934,313         54,379,454    
    Accumulated other comprehensive (loss)       (395,950 )       (397,237 )  
    Accumulated (deficit)       (71,730,336 )       (72,323,819 )  
                 
  TOTAL SHAREHOLDERS' (DEFICIT)       (16,041,762 )       (17,193,058 )  
                 
  TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT)   $   9,183,157     $   9,674,919    
                 
                 


                 
  OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES  
  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
  (unaudited)  
             
          For the three months ended  
          March 31,  
          2018     2017    
                 
  CASH FLOWS FROM OPERATING ACTIVITIES          
  Net income/(loss) $ 593,483   $ 73,974    
  Adjustment to reconcile net income/(loss) to net cash provided by/(used in) operating activities          
    Change in derivative liabilities     (28,416 )     (393,340 )  
    Interest expense from derivative instruments     54,518       61,429    
    Employee stock compensation     56,526       133,979    
    Provision for doubtful accounts     (3,387 )     29,366    
    Depreciation and amortization     141,925       85,327    
    Changes in operating assets and liabilities          
      Accounts receivable     1,502,206       104,622    
      Prepaid expenses     29,547       26,418    
      Other current assets     (9,271 )     15,848    
      Other assets     (20,977 )     (339 )  
      Accounts payable and accrued expenses     (1,024,533 )     (573,305 )  
      Patent settlement liability     (112,500 )     (127,983 )  
      Deferred revenue     (2,282,127 )     (167,536 )  
  Net cash provided by/(used in) operating activities     (1,103,006 )     (731,540 )  
                 
  CASH FLOWS FROM INVESTING ACTIVITIES          
    Purchase of property and equipment     (92,794 )     (61,554 )  
    Purchase of Acuity software     (552,403 )   -0-  
  Net cash (used in) investing activities     (645,197 )     (61,554 )  
                 
  CASH FLOWS FROM FINANCING ACTIVITIES          
    Proceeds/(repayments) from revolving line of credit     1,750,000     -0-  
  Net cash provided by/(used in) financing activities     1,750,000     -0-  
                 
  Effect of exchange rate changes on fixed and intangible assets     (3,898 )     (2,594 )  
  Effect of exchange rate changes on cash and cash equivalents     1,287       (2,468 )  
  Net increase/(decrease) in cash and cash equivalents     (814 )     (798,156 )  
  Cash and cash equivalents at beginning of period     1,176,551       1,439,332    
                 
  Cash and cash equivalents at end of period $   1,175,737   $   641,176    
                 
  Supplemental disclosures of cash flow information:          
    Cash paid during the period for:          
      Income taxes $   1,035   $   1,159    
      Interest $   254,092    $   250,161    
     
  Non-cash transactions:          
    Common stock issued for the purchase of Acuity software  $ 500,000    $ -0-  
    Restricted stock issuance/(forfeiture) $ -0-  $  (2,834 )  
                 


About OmniComm Systems, Inc
OmniComm Systems, Inc. is a leading strategic software solutions provider to the life sciences industry. OmniComm is dedicated to helping the world’s pharmaceutical, biotechnology, contract research organizations, diagnostic and device firms, and academic medical centers maximize the value of their clinical research investments. Through the use of innovative and progressive technologies, these organizations drive efficiency in clinical development, better manage their risks, ensure regulatory compliance and manage their clinical operations performance. With an extensive global experience from more than 6,000 clinical trials, OmniComm provides comprehensive solutions for clinical research. For more information, visit: www.omnicomm.com

Trademarks
OmniComm, TrialMaster, TrialOne, IRTMaster and Promasys are registered trademarks of OmniComm Systems, Inc. Other names may be trademarks of their respective owners.

Contact Info

Investor Relations
OmniComm Systems, Inc.
+1.954.473.1254
invrel@omnicomm.com