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OmniComm Systems, Inc. Reports Financial Results for the Quarter and Year-to-Date Period Ending June 30, 2017

FORT LAUDERDALE, Fla., Aug. 14, 2017 (GLOBE NEWSWIRE) -- OmniComm Systems, Inc. (OmniComm) (OTCQX:OMCM), a global leading provider of clinical data management technology, today announced record financial results for the three- and six-month periods ending June 30, 2017.

“We are off to another great start in 2017, picking up where we left off after a strong 2016,” said Stephen Johnson, OmniComm’s president and chief executive officer. “Our core business continues to strengthen, while our secondary product lines have already exceeded our initial goals. Our strong results are a testament to the faith our customers have in us and to the tireless support of our dedicated employees in their commitment to serving our customers and ultimately, the patients who struggle with life-threatening conditions.”

For the six-month period ending June 30, 2017, OmniComm reported revenue of $13.5 million, a 29% increase over the revenue of $10.5 million for the six-month period ending June 30, 2016. Gross margin improved by $2.7 million to $10.7 million, a 35% increase. Operating expenses increased by $1.1 million to $8.8 million, a 14% increase. Year-to-date operating income is $1.9 million, a $1.7 million increase over the operating income for the six months ending June 30, 2016. EBITDA, a non-GAAP financial measure that OmniComm uses as an additional financial measure, improved to $2.0 million, a $1.6 million improvement over EBITDA of $0.4 million for the six months ending June 30, 2016.

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 six month period ended
June 30,
2017 2016
Operating income/(loss) (GAAP) 1,875,765 206,256
Depreciation expense 162,419 146,577
Amortization expense 10,875 20,253
EBITDA (non-GAAP) 2,049,059 373,086

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 six months ended For the three months ended
June 30, June 30,
2017 2016 2017 2016
Revenues $ 12,930,309 $ 9,822,270 $ 7,272,133 $ 4,930,261
Reimbursable revenues 529,578 638,729 452,224 373,227
Total revenues 13,459,887 10,460,999 7,724,357 5,303,488
Cost of goods sold 2,186,710 1,911,030 1,106,020 940,859
Reimbursable expenses-cost of goods sold 621,010 639,293 409,206 435,437
Total cost of goods sold 2,807,720 2,550,323 1,515,226 1,376,296
Gross margin 10,652,167 7,910,676 6,209,131 3,927,192
Operating expenses
Salaries, benefits and related taxes 6,512,378 5,443,425 3,221,795 2,710,513
Rent and occupancy expenses 549,049 501,058 270,097 244,458
Consulting services 120,734 48,000 61,105 24,000
Legal and professional fees 240,444 203,296 93,087 80,459
Travel 491,360 400,062 203,669 231,264
Telephone and internet 75,874 83,667 36,616 43,183
Selling, general and administrative 660,266 824,775 451,377 441,721
Bad debt expense (46,997) 33,307 (76,363) 33,455
Depreciation expense 162,419 146,577 82,495 76,111
Amortization expense 10,875 20,253 5,472 10,164
Total operating expenses 8,776,402 7,704,420 4,349,350 3,895,328
Operating income/(loss) 1,875,765 206,256 1,859,781 31,864
Other income/(expense)
Interest expense, related parties (465,197) (443,686) (233,738) (235,084)
Interest expense (214,752) (175,373) (106,754) (87,470)
Interest income 586 2 585 1
Change in derivative liabilities 1,536,067 (2,458,836) 1,142,727 (1,696,825)
Transaction gain/(loss) 22,110 (510) 16,810 (7,732)
Income/(loss) before income taxes 2,754,579 (2,872,147) 2,679,411 (1,995,246)
Income tax (expense) (1,194) (59) -0- -0-
Net income/(loss) 2,753,385 (2,872,206) 2,679,411 (1,995,246)
Preferred stock dividends
Preferred stock dividends in arrears
Series A preferred-0- (1,870) -0- -0-
Total preferred stock dividends-0- (1,870) -0- -0-
Net income/(loss) attributable to common stockholders$ 2,753,385 $ (2,874,076) $ 2,679,411 $ (1,995,246)
Net income/(loss) per share
Basic $ 0.02 $ (0.02) $ 0.02 $ (0.01)
Diluted $ 0.02 $ (0.02) $ 0.02 $ (0.01)
Weighted average number of shares outstanding
Basic 147,778,391 144,029,335 147,771,240 146,978,378
Diluted 162,256,010 144,029,335 162,316,240 146,978,378


OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2017 December 31, 2016
(unaudited)
ASSETS
CURRENT ASSETS
Cash $ 1,116,615 $ 1,439,332
Accounts receivable, net of allowance for doubtful accounts of $132,816 and $179,813, respectively 4,889,077 5,455,210
Prepaid expenses 231,097 195,915
Prepaid stock compensation, current portion 94,490 148,422
Other current assets 14,290 35,055
Total current assets 6,345,569 7,273,934
Property and equipment, net 588,572 637,552
Other assets
Intangible assets, net 104,765 108,880
Prepaid stock compensation 22,800 58,663
Other assets 45,756 51,321
TOTAL ASSETS $ 7,107,462 $ 8,130,350
LIABILITIES AND SHAREHOLDERS' (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 2,068,032 $ 2,123,073
Deferred revenue, current portion 6,505,895 7,250,061
Convertible notes payable, current portion 50,000 50,000
Patent settlement liability, current portion 627,765 862,500
Conversion feature liability, related parties 1,272,487 1,740,278
Conversion feature liability 450,525 585,452
Warrant liability, related parties 2,000,420 2,519,614
Warrant liability 1,065,594 1,479,748
Total current liabilities 14,040,718 16,610,726
LONG TERM LIABILITIES
Line of credit, long term 1,600,000 2,700,000
Notes payable, related parties, long term, net of current portion, net of discount of $184,850 and $237,664, respectively 265,150 212,336
Notes payable, long term, net of current portion, net of discount of $385,241 and $455,285, respectively 407,259 337,215
Deferred revenue, long term, net of current portion 2,084,541 2,289,169
Convertible notes payable, related parties, long term, net of current portion 5,825,000 5,825,000
Convertible notes payable, long term, net of current portion 1,075,000 1,175,000
Patent settlement liability, long term, net of current portion -0- 108,702
TOTAL LIABILITIES 25,297,668 29,258,148
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, 147,792,805 and 147,786,917 issued and outstanding, respectively, at $0.001 par value 147,794 147,788
Additional paid in capital - preferred 999,750 999,750
Additional paid in capital - common 53,598,081 53,425,956
Accumulated other comprehensive (loss) (398,429) (410,505)
Accumulated (deficit) (72,537,652) (75,291,037)
TOTAL SHAREHOLDERS' (DEFICIT) (18,190,206) (21,127,798)
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) $ 7,107,462 $ 8,130,350

OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the six months ended
June 30,
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss)$2,753,385 $ (2,872,206)
Adjustment to reconcile net income/(loss) to net cash provided by/(used in) operating activities
Change in derivative liabilities (1,536,067) 2,458,836
Interest expense from derivative instruments 122,858 35,209
Employee stock compensation 261,926 110,659
Provision for doubtful accounts (46,997) 33,307
Depreciation and amortization 173,294 166,830
Changes in operating assets and liabilities
Accounts receivable 613,130 (268,770)
Prepaid expenses (35,182) (11,514)
Other current assets 20,765 4,703
Other assets 5,565 (6,789)
Accounts payable and accrued expenses (55,041) 150,661
Patent settlement liability (343,437) (272,678)
Deferred revenue (948,794) (244,655)
Net cash provided by/(used in) operating activities 985,405 (716,407)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (107,348) (164,449)
Net cash (used in) investing activities (107,348) (164,449)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of notes payable (100,000) -0-
Proceeds/(repayments) from revolving line of credit (1,100,000) 800,000
Proceeds from exercise of stock options -0- 125,000
Net cash provided by/(used in) financing activities (1,200,000) 925,000
Effect of exchange rate changes on fixed and intangible assets (12,850) (4,475)
Effect of exchange rate changes on cash and cash equivalents 12,076 (17,787)
Net increase/(decrease) in cash and cash equivalents (322,717) 21,882
Cash and cash equivalents at beginning of period 1,439,332 835,219
Cash and cash equivalents at end of period$ 1,116,615 $ 857,101
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income taxes$ 1,194 $ 59
Interest$ 534,238 $ 774,746
Non-cash transactions:
Notes payable issued in exchange for existing notes payable $ 350,000 $ 7,652,500
Restricted stock issuance/(forfeiture)$ (2,834) $ 68,400
Promissory notes issued for accrued interest$-0- $ 450,000
Common stock issued in exchange for 5% Series A Preferred Stock$-0- $ 3,637,724

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 5,000 clinical trials, OmniComm provides comprehensive solutions for clinical research. For more information, visit: www.omnicomm.com

Trademarks
OmniComm, TrialMaster, TrialOne, 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

Source:OmniComm Systems Inc.