EX-99.1 2 ex_109806.htm EXHIBIT 99.1 ex_109806.htm

Exhibit 99.1

 

OmniComm Systems, Inc.

2101 West Commercial Blvd.

Suite 3500

Fort Lauderdale, FL 33309 USA

Phone: +1.954.473.1254

Fax: +1.954.473.1256

www.omnicomm.com

 

OmniComm Systems, Inc. Reports Financial Results for the Year Ended December 31, 2017

Record Revenue and Operating Income

 

Fort Lauderdale, FL, April 3, 2018 - OmniComm Systems, Inc. (OmniComm) (OTCQX: OMCM), a global leading provider of clinical data management technology, today announced record financial results for the year ended December 31, 2017.

 

I am very pleased with our 2017 results,” said Stephen Johnson, chief executive officer and president of OmniComm.  “It was a year of record revenue and major milestones.  We experienced significant growth, especially in Europe and Asia, reached the 6,000 clinical trial mark, announced the release of 2 new products, IRTMaster™ and Autoencoder, and acquired a market leading business intelligence platform, Acuity® for data analytics.  We also had continued success with our two core products, TrialMaster® and TrialOne®.  The expansion of our product offering coupled with our emergence internationally, well positions us for another strong year in 2018.”

 

For the year ending December 31, 2017, OmniComm reported record revenue of $27.0 million, a 6% increase over the prior year’s revenue of $25.4 million. Gross margin improved by 8% to $21.7 million. Operating expenses increased by 14% or $2.3 million to $18.2 million, which resulted in operating income of $3.5 million. EBITDA, a non-GAAP financial measure OmniComm uses as an additional financial measure, was $3.9 million.

 

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.

 

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

 Japan

 

 

OmniComm Systems, Inc.

2101 West Commercial Blvd.

Suite 3500

Fort Lauderdale, FL 33309 USA

Phone: +1.954.473.1254

Fax: +1.954.473.1256

www.omnicomm.com

 

OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES

 

Reconciliation of GAAP operating income to non-GAAP EBITDA

 

 

   

For the year ended

 
   

December 31,

 
   

2017

   

2016

 
                 

Operating income/(loss) (GAAP)

  $ 3,534,150     $ 4,165,231  

Depreciation expense

    336,102       302,893  

Amortization expense

    22,048       37,331  

EBITDA (non-GAAP)

  $ 3,892,300     $ 4,505,455  

 

 

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.

 

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

 Japan

 

 

OmniComm Systems, Inc.

2101 West Commercial Blvd.

Suite 3500

Fort Lauderdale, FL 33309 USA

Phone: +1.954.473.1254

Fax: +1.954.473.1256

www.omnicomm.com

 

OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

   

For the year ended

 
   

December 31,

 
   

2017

   

2016

 

Revenues

  $ 26,067,933     $ 24,394,010  

Reimbursable revenues

    911,725       1,025,500  

Total revenues

    26,979,658       25,419,510  
                 

Cost of goods sold

    4,394,918       3,913,407  

Reimbursable expenses-cost of goods sold

    885,972       1,461,425  

Total cost of goods sold

    5,280,890       5,374,832  

Gross margin

    21,698,768       20,044,678  
                 

Operating expenses

         

Salaries, benefits and related taxes

    13,200,837       11,383,727  

Rent and occupancy expenses

    1,125,147       1,071,363  

Consulting services

    321,472       185,340  

Legal and professional fees

    533,221       364,859  

Travel

    986,092       774,379  

Telephone and internet

    152,926       164,014  

Selling, general and administrative

    1,356,427       1,462,774  

Bad debt expense

    130,346       132,767  

Depreciation expense

    336,102       302,893  

Amortization expense

    22,048       37,331  

Total operating expenses

    18,164,618       15,879,447  

Operating income/(loss)

    3,534,150       4,165,231  
                 

Other income/(expense)

         

Interest expense, related parties

    (947,688 )     (918,189 )

Interest expense

    (419,432 )     (421,713 )

Interest income

    593       2  

Change in derivative liabilities

    795,779       (2,657,910 )

Transaction gain/(loss)

    5,010       (64,472 )

Income/(loss) before income taxes

    2,968,412       102,949  

Income tax (expense)

    (1,194 )     (1,069 )
                 

Net income/(loss) attributable to common stockholders

  $ 2,967,218     $ 101,880  
                 

Net income/(loss) per share

         

Basic

  $ 0.02     $ 0.00  

Diluted

  $ 0.02     $ 0.00  

Weighted average number of shares outstanding

         

Basic

    147,865,246       145,868,227  

Diluted

    148,177,984       146,162,427  

 

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

 Japan

 

 

OmniComm Systems, Inc.

2101 West Commercial Blvd.

Suite 3500

Fort Lauderdale, FL 33309 USA

Phone: +1.954.473.1254

Fax: +1.954.473.1256

www.omnicomm.com

 

OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

   

December 31, 2017

   

December 31, 2016

 
                 

ASSETS

 

CURRENT ASSETS

               

Cash

  $ 1,176,551     $ 1,439,332  

Accounts receivable, net of allowance for doubtful accounts of $149,980 and $179,813, respectively

    7,492,597       5,455,210  

Prepaid expenses

    297,131       195,915  

Prepaid stock compensation, current portion

    -0-       148,422  

Other current assets

    11,463       35,055  

Total current assets

    8,977,742       7,273,934  

Property and equipment, net

    552,538       637,552  

Other assets

               

Intangible assets, net

    97,925       108,880  

Prepaid stock compensation

    -0-       58,663  

Other assets

    46,714       51,321  

TOTAL ASSETS

  $ 9,674,919     $ 8,130,350  
                 

LIABILITIES AND SHAREHOLDERS' (DEFICIT)

 
                 

CURRENT LIABILITIES

               

Accounts payable and accrued expenses

  $ 2,586,045     $ 2,123,073  

Deferred revenue, current portion

    7,564,587       7,250,061  

Convertible notes payable, current portion

    50,000       50,000  

Patent settlement liability, current portion

    112,500       862,500  

Conversion feature liability, related parties

    1,604,723       1,740,278  

Conversion feature liability

    81,224       585,452  

Warrant liability, related parties

    2,196,570       2,519,614  

Warrant liability

    1,244,229       1,479,748  

Total current liabilities

    15,439,878       16,610,726  
                 

LONG TERM LIABILITIES

               

Line of credit, long term

    2,650,000       2,700,000  

Notes payable, related parties, long term, net of current portion, net of discount of $117,365 and $237,664, respectively

    282,635       212,336  

Notes payable, long term, net of current portion, net of discount of $279,402 and $455,285, respectively

    423,098       337,215  

Deferred revenue, long term, net of current portion

    1,952,366       2,289,169  

Convertible notes payable, related parties, long term, net of current portion

    5,770,000       5,825,000  

Convertible notes payable, long term, net of current portion

    350,000       1,175,000  

Patent settlement liability, long term, net of current portion

    -0-       108,702  
                 

TOTAL LIABILITIES

    26,867,977       29,258,148  
                 

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, 148,542,805 and 147,786,917 issued and outstanding, respectively, at $0.001 par value

    148,544       147,788  

Additional paid in capital - preferred

    999,750       999,750  

Additional paid in capital - common

    54,379,454       53,425,956  

Accumulated other comprehensive (loss)

    (397,237 )     (410,505 )

Accumulated (deficit)

    (72,323,819 )     (75,291,037 )

TOTAL SHAREHOLDERS' (DEFICIT)

    (17,193,058 )     (21,127,798 )
                 

TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT)

  $ 9,674,919     $ 8,130,350  

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

 Japan

 

 

OmniComm Systems, Inc.

2101 West Commercial Blvd.

Suite 3500

Fort Lauderdale, FL 33309 USA

Phone: +1.954.473.1254

Fax: +1.954.473.1256

www.omnicomm.com

 

OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

   

For the year ended

 
   

December 31,

 
   

2017

   

2016

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net income/(loss)

  $ 2,967,218     $ 101,880  

Adjustment to reconcile net income/(loss) to net cash provided by/(used in) operating activities

               

Change in derivative liabilities

    (795,779 )     2,657,910  

Interest expense from derivative instruments

    296,182       158,068  

Employee stock compensation

    568,522       222,304  

Provision for doubtful accounts

    130,346       132,767  

Depreciation and amortization

    358,150       340,224  

Changes in operating assets and liabilities

               

Accounts receivable

    (2,167,733 )     (1,495,505 )

Prepaid expenses

    (101,216 )     (25,742 )

Other current assets

    23,592       (20,704 )

Other assets

    4,607       (4,756 )

Accounts payable and accrued expenses

    462,972       615,803  

Patent settlement liability

    (858,702 )     (455,871 )

Deferred revenue

    (22,277 )     291,453  

Net cash provided by/(used in) operating activities

    865,882       2,517,831  
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Purchase of property and equipment

    (242,384 )     (260,378 )

Net cash (used in) investing activities

    (242,384 )     (260,378 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Repayments of notes payable

    (915,000 )     (200,000 )

Repayments of notes payable, related parties

    (105,000 )     (45,000 )

Proceeds/(repayments) from revolving line of credit

    (50,000 )     (1,500,000 )

Proceeds from exercise of stock options

    35,250       129,500  

Proceeds from exercise of warrants

    155,000       -0-  

Net cash provided by/(used in) financing activities

    (879,750 )     (1,615,500 )
                 

Effect of exchange rate changes on fixed and intangible assets

    (19,797 )     6,310  

Effect of exchange rate changes on cash and cash equivalents

    13,268       (44,150 )

Net increase/(decrease) in cash and cash equivalents

    (262,781 )     604,113  

Cash and cash equivalents at beginning of period

    1,439,332       835,219  
                 

Cash and cash equivalents at end of period

  $ 1,176,551     $ 1,439,332  

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

 Japan

 

 

OmniComm Systems, Inc.

2101 West Commercial Blvd.

Suite 3500

Fort Lauderdale, FL 33309 USA

Phone: +1.954.473.1254

Fax: +1.954.473.1256

www.omnicomm.com

 

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

 

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

 Japan