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

FORT LAUDERDALE, Fla., April 03, 2018 (GLOBE NEWSWIRE) -- 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 two 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 ended 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.

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.


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


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




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


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

Source:OmniComm Systems Inc.