Loading, Please Wait...

CST: 25/05/2019 01:54:04   

OmniComm Systems, Inc. Reports Financial Results for the Year Ending December 31, 2018

57 Days ago

FORT LAUDERDALE, Fla., March 28, 2019 (GLOBE NEWSWIRE) -- OmniComm Systems, Inc. (OmniComm) (OTCQX: OMCM), a global leading provider of clinical data management technology, today announced financial results for the year ending December 31, 2018.

For the year ending December 31, 2018, OmniComm reported revenue of $27.10 million, as compared to revenue of $26.98 million for the year ending December 31, 2017. Gross margin improved by $0.50 million to $22.20 million. Operating expenses increased by $1.50 million to $19.67 million.  Operating income for the year ending December 31, 2018 was $2.53 million, as compared to operating income of $3.53 million for the year ending December 31, 2017. EBITDA, a non-GAAP financial measure that OmniComm uses as an additional financial measure, was $3.27 million for the year ending December 31, 2018, as compared to EBITDA of $3.89 million for the year ending December 31, 2017.

“These results do not tell the entire story because 2018 was a year of transition for OmniComm,” said Stephen Johnson, president and CEO of OmniComm. “At first glance, it seems obvious that our financial results for 2018 were not up to our typical growth standards from the previous 10 years. That’s because we made a conscious decision to move away from perpetual licenses to a more predictable and reliable subscription license model, and that transition has had a significant short-term impact on both revenue and EBITDA. It generally takes one to two years to fully realize the benefits of this switch. Also, we invested heavily in research and product development in 2018, so that we could release three new product lines: a coding solution, a randomization and supply-tracking solution, and a comprehensive analytics platform. We believe those expenditures will be a good investment for our clients and the long-term growth of OmniComm.”

For the year ending December 31, 2018, OmniComm achieved record bookings of $37.3 million, as compared to bookings of $31.9 million for the year ending December 31, 2017. Subscription business increased by $13.8 million to $21.9 million, a 170% increase, whereas perpetual business was all but phased out, comprising only $2.9 million in 2018, as compared to $16.2 million in 2017. Perpetual licenses generally offer a much better short-term revenue benefit since they typically include a large one-time upfront license payment that allows for revenue recognition in the first year of an agreement, but with a negative long-term effect on future revenue due to much smaller annual maintenance fees which are typically only 20% of the initial license fees.

“Despite record bookings, the impact of this transition away from perpetual licenses has had an impact on our top and bottom lines,” said Kuno van der Post, Ph.D., chief commercial officer at OmniComm. “But it was the right thing to do for the long-term health of our business. We have a lot to look forward to; we’ve just had major releases in our core product lines: TrialMaster® and TrialOne®, and added three new products: IRTMaster™, AutoEncoder™ and Acuity Analytics™; we’ve opened up a new support office in Bengaluru, India, doubled the size of our team in AsiaPac, expanded our inside and external sales teams, and recently made significant enhancements to TrialMaster to better support late phase and virtual trials.”

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 year ended
  December 31,
  2018   2017
       
Operating income/(loss) (GAAP) $  2,534,177   $  3,534,150
Depreciation expense  398,654    336,102
Amortization expense  337,704    22,048
EBITDA (non-GAAP) $  3,270,535   $  3,892,300
       

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
CONSOLIDATED STATEMENTS OF OPERATIONS
           
      For the year ended
      December 31,
      2018   2017
Revenues     $  26,129,229   $  26,067,933
Reimbursable revenues  975,251    911,725
Total revenues    27,104,480    26,979,658
           
Cost of goods sold  4,284,588    4,394,918
Reimbursable expenses-cost of goods sold  617,509    885,972
Total cost of goods sold  4,902,097    5,280,890
           
Gross margin    22,202,383    21,698,768
           
Operating expenses      
Salaries, benefits and related taxes  14,094,550    13,200,837
Rent and occupancy expenses  1,254,087    1,125,147
Consulting services  298,097    321,472
Legal and professional fees  477,102    533,221
Travel      856,187    986,092
Telephone and internet  153,540    152,926
Selling, general and administrative  1,676,869    1,356,427
Bad debt expense  41,782   130,346
Intangible asset impairment  79,634     -0-
Depreciation expense  398,654    336,102
Amortization expense  337,704    22,048
Total operating expenses  19,668,206    18,164,618
           
Operating income/(loss)  2,534,177    3,534,150
           
Other income/(expense)      
Interest expense, related parties  (935,839)    (947,688)
Interest expense  (406,145)    (419,432)
Interest income    21    593
Change in derivative liabilities  3,111,760    795,779
Transaction gain/(loss)  (125,794)    5,010
Income/(loss) before income taxes  4,178,180    2,968,412
Income tax (expense)  (490,215)    (1,194)
Net income/(loss) attributable to common stockholders $  3,687,965   $  2,967,218
           
Net income/(loss) per share      
  Basic     $  0.02   $  0.02
  Diluted   $  0.02   $  0.02
Weighted average number of shares outstanding      
  Basic      150,832,451    147,865,246
  Diluted    164,618,868    148,177,984
           


             
OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
             
        December 31, 2018   December 31, 2017
             
ASSETS
             
CURRENT ASSETS        
  Cash   $  1,440,524   $  1,176,551
  Accounts receivable, net of allowance for doubtful accounts of $176,220 and $149,980, respectively    6,175,277    7,492,597
  Prepaid expenses    384,212    297,131
  Other current assets    5,204    11,463
    Total current assets    8,005,217    8,977,742
  Property and equipment, net    1,360,315    552,538
  Other assets        
  Intangible assets, net    730,835    97,925
  Other assets    131,847    46,714
             
TOTAL ASSETS   $  10,228,214   $  9,674,919
             
LIABILITIES AND SHAREHOLDERS' (DEFICIT)
             
CURRENT LIABILITIES        
  Accounts payable and accrued expenses   $  2,070,158   $  2,586,045
  Convertible notes payable, current portion   -0-    50,000
  Deferred revenue, current portion    6,457,319    7,564,587
  Capital lease liability, current portion    115,761   -0-
  Patent settlement liability, current portion   -0-    112,500
  Conversion feature liability, related parties    670,634    1,604,723
  Conversion feature liability    35,705    81,224
  Warrant liability, related parties    601,781    2,196,570
  Warrant liability    687,118    1,244,229
    Total current liabilities    10,638,476    15,439,878
             
LONG TERM LIABILITIES        
  Line of credit, long term    2,900,000    2,650,000
  Notes payable, related parties, long term, net of current portion, net of discount of $-0- and $117,365, respectively   -0-    282,635
  Notes payable, long term, net of current portion, net of discount of $123,184 and $279,402, respectively    434,316    423,098
  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    200,000    350,000
  Deferred revenue, long term, net of current portion    1,794,237    1,952,366
  Capital lease liability, long term, net of current portion    175,089   -0-
             
TOTAL LIABILITIES    21,912,118    26,867,977
             
COMMITMENTS AND CONTINGENCIES (See Note 10)        
             
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, 155,368,647 and 148,542,805 issued and outstanding, respectively, at $0.001 par value    155,370    148,544
  Additional paid in capital - preferred    999,750    999,750
  Additional paid in capital - common    56,233,085    54,379,454
  Accumulated other comprehensive (loss)    (436,505)    (397,237)
  Accumulated (deficit)    (68,635,854)    (72,323,819)
             
TOTAL SHAREHOLDERS' (DEFICIT)    (11,683,904)    (17,193,058)
             
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT)   $  10,228,214   $  9,674,919
             


           
OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
    For the year ended
    December 31,
    2018     2017
           
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income/(loss) $ 3,687,965   $ 2,967,218
Adjustment to reconcile net income/(loss) to net cash provided by/(used in) operating activities          
 Change in derivative liabilities    (3,111,760)      (795,779)
 Intangible asset impairment    79,634     -0-
 Interest expense from derivative instruments    273,582      296,182
 Employee stock compensation    295,709      568,522
 Provision for doubtful accounts    41,782      130,346
 Depreciation and amortization    736,358      358,150
 Changes in operating assets and liabilities          
 Accounts receivable    1,275,538      (2,167,733)
 Prepaid expenses    (87,081)      (101,216)
 Other current assets    6,259      23,592
 Other assets    (85,133)      4,607
 Accounts payable and accrued expenses    (515,887)      462,972
 Patent settlement liability    (112,500)      (858,702)
 Deferred revenue    (1,265,397)      (22,277)
Net cash provided by/(used in) operating activities    1,219,069      865,882
           
CASH FLOWS FROM INVESTING ACTIVITIES          
 Purchase of property and equipment    (849,344)      (242,384)
 Purchase of Acuity software    (552,403)     -0-
Net cash (used in) investing activities    (1,401,747)      (242,384)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
 Repayments of notes payable    (345,000)      (915,000)
 Repayments of notes payable, related parties   -0-      (105,000)
 Proceeds/(repayments) from revolving line of credit    250,000      (50,000)
 Proceeds from exercise of stock options    45,000      35,250
 Proceeds from exercise of warrants    600,000      155,000
 Principal repayment of capital lease obligation    (67,817)     -0-
Net cash provided by/(used in) financing activities    482,183      (879,750)
           
Effect of exchange rate changes on fixed and intangible assets    3,736      (19,797)
Effect of exchange rate changes on cash and cash equivalents    (39,268)      13,268
Net increase/(decrease) in cash and cash equivalents    263,973      (262,781)
Cash and cash equivalents at beginning of year    1,176,551      1,439,332
           
Cash and cash equivalents at end of year $  1,440,524   $  1,176,551
           
Supplemental disclosures of cash flow information:          
 Cash paid during the year for:          
 Income taxes $  327,319   $  1,194
 Interest $  1,144,586   $  1,051,909
 
Non-cash transactions:          
 Notes payable issued in exchange for existing notes payable $ -0-   $ 350,000
 Restricted stock issuance/(forfeiture) $ 94,147   $  (2,834)
 Common stock issued for the purchase of Acuity software $ 500,000   $ -0-
 Capital expenditures funded by capital lease borrowing $ 359,603   $ -0-
 Reclassification of conversion feature liability associated with convertible debt $ 10,500   $ 402,567
 Reclassification of warrant feature liability associated with warrant exercise $ 9,248   $ -0-
 Exercise of warrants as repayment of notes payable, related parties $ 400,000   $ -0-
           


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. Please visit www.omnicomm.com for more information.

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 

Is your business listed correctly on America’s largest city directory network of 1,000 portals?