EX-99.1 2 ex_129766.htm EXHIBIT 99.1 ex_129766.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-to-Date and Quarter Ending September 30, 2018

 

FORT LAUDERDALE, Fla., Nov. 13, 2018 (GLOBE NEWSWIRE) -- OmniComm Systems, Inc. (OmniComm) (OTCQX: OMCM), a global leading provider of clinical data management technology, today announced financial results for the nine- and three-month periods ending September 30, 2018.

 

For the nine-month period ending September 30, 2018, OmniComm reported revenue of $20.33 million, as compared to revenue of $20.18 million for the nine-month period ending September 30, 2017. Gross margin improved by $0.67 million to $16.72 million, a 4% increase. Operating expenses increased by $1.54 million to $14.88 million.  Year-to-date operating income is $1.84 million, as compared to operating income of $2.71 million for the nine months ending September 30, 2017. EBITDA, a non-GAAP financial measure that OmniComm uses as an additional financial measure, was $2.37 million for the nine months ending September 30, 2018, as compared to EBITDA of $2.98 million for the nine months ending September 30, 2017.

 

“Our decision in the beginning of 2018 to transition from perpetual licensing to subscription or term licensing has had a short-term impact on our recognized revenue through the first three quarters,” said Kuno van der Post, chief commercial officer of OmniComm, “but the long-term positive impact can already be seen in our backlog, which has risen significantly to over $50 million.  Our contract bookings through the first three quarters of 2018 are a record $28.3 million, compared to our previous best year of $24.8 million through Q3 in 2017.  Despite the 14.1% increase in year-over-year bookings, this increase has only generated a modest increase in year-over-year revenue, due to the change.  However, it does put us in a better position for future growth.”

 

In 2018, 65% of OmniComm’s contracts are now subscription based, compared to 26% in 2017, and only 9% of OmniComm’s contracts are perpetual, compared to 52% in 2017 (the remaining part of OmniComm’s business are consulting and service contracts).  Perpetual licenses generally offer a much better short-term revenue benefit since they normally include a large one-time upfront license payment that allows for expedited revenue recognition in the first year the agreement was signed, but have a negative long-term effect on future revenue due to much smaller annual maintenance fees which are usually only 20% of the initial license fees. 

 

“Subscription licenses offer a more consistent revenue model in that the license fees are evenly spread out over the term of the agreement and the term is typically guaranteed, unlike with perpetual license deals,” added Stephen Johnson, chief executive officer and president of OmniComm.  “This does offer a more negative short-term effect on revenue in the first year of the agreement because there is no large upfront license payment, but it gives us a much smoother and more predictable revenue stream over the long-term.”

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

Japan

Bengaluru

India

 

 

 

 

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

 

This licensing transition, coupled with the addition of three new product lines, has also had an impact on EBITDA this year.  A significant portion of the increase in operating expense was directly attributed to the increased headcount to support the new AutoEncoder and IRTMaster™ solutions developed by OmniComm and the addition of the 15 new employees who were part of the Algorics acquisition that introduced the Acuity Analytics product line.  OmniComm also opened up a new office in Bengaluru, India to further enhance global support, especially for our AsiaPac clients.

 

“We are continually looking to release new products and acquire new technologies that bolster our current technology offering,” said Keith Howells, chief technology officer at OmniComm.  “The addition of a coding solution, randomization and supply tracking, and a comprehensive analytics platform were a good investment for our clients and the long-term growth of OmniComm.”

 

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 nine months ended

 
   

September 30,

 
   

2018

   

2017

 
                 

Operating income/(loss) (GAAP)

  $ 1,840,512     $ 2,712,635  

Depreciation expense

    279,532       249,801  

Amortization expense

    248,790       16,455  

EBITDA (non-GAAP)

  $ 2,368,834     $ 2,978,891  

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

Japan

Bengaluru

India

 

 

 

 

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

 

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

Bengaluru

India

 

 

 

 

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

   

For the nine months ended

   

For the three months ended

 
   

September 30,

   

September 30,

 
   

2018

   

2017

   

2018

   

2017

 

Revenues

  $ 19,557,161     $ 19,420,456     $ 6,379,641     $ 6,490,147  

Reimbursable revenues

    775,788       755,344       463,183       225,766  

Total revenues

    20,332,949       20,175,800       6,842,824       6,715,913  
                                 

Cost of goods sold

    3,240,449       3,320,190       1,044,020       1,133,480  

Reimbursable expenses-cost of goods sold

    368,542       802,975       253,793       181,965  

Total cost of goods sold

    3,608,991       4,123,165       1,297,813       1,315,445  
                                 

Gross margin

    16,723,958       16,052,635       5,545,011       5,400,468  
                                 

Operating expenses

                               

Salaries, benefits and related taxes

    10,695,132       9,906,293       3,483,627       3,393,915  

Rent and occupancy expenses

    930,972       841,718       337,824       292,669  

Consulting services

    219,856       185,222       55,736       64,488  

Legal and professional fees

    381,648       367,403       72,776       126,959  

Travel

    588,247       679,766       190,785       188,406  

Telephone and internet

    114,696       115,660       43,682       39,786  

Selling, general and administrative

    1,297,008       937,313       383,958       277,047  

Bad debt expense

    47,931       40,369       21,679       87,366  

Intangible asset impairment

    79,634       -0-       -0-       -0-  

Depreciation expense

    279,532       249,801       115,687       87,382  

Amortization expense

    248,790       16,455       91,343       5,580  

Total operating expenses

    14,883,446       13,340,000       4,797,097       4,563,598  
                                 

Operating income/(loss)

    1,840,512       2,712,635       747,914       836,870  
                                 

Other income/(expense)

                               

Interest expense, related parties

    (682,986

)

    (717,782

)

    (229,906

)

    (252,585

)

Interest expense

    (283,407

)

    (342,240

)

    (95,622

)

    (127,488

)

Interest income

    16       589       7       3  

Change in derivative liabilities

    (1,160,473

)

    723,532       (2,918,886

)

    (812,535

)

Transaction gain/(loss)

    (97,984

)

    19,006       (12,128

)

    (3,104

)

Income/(loss) before income taxes

    (384,322

)

    2,395,740       (2,508,621

)

    (358,839

)

Income tax (expense)

    (155,106

)

    (1,194

)

    (154,071

)

    -0-  

Net income/(loss) attributable to common stockholders

  $ (539,428

)

  $ 2,394,546     $ (2,662,692

)

  $ (358,839

)

                                 

Net income/(loss) per share

                               

Basic

  $ (0.00

)

  $ 0.02     $ (0.02

)

  $ (0.00

)

Diluted

  $ (0.00

)

  $ 0.02     $ (0.02

)

  $ (0.00

)

Weighted average number of shares outstanding

                               

Basic

    150,282,732       147,805,410       150,905,124       147,858,566  

Diluted

    150,282,732       147,850,886       150,905,124       147,858,566  

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

Japan

Bengaluru

India

 

 

 

 

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

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   

September 30,
2018

   

December 31,
2017

 
   

(unaudited)

         

ASSETS

 
                 

CURRENT ASSETS

               

Cash

  $ 1,371,962     $ 1,176,551  

Accounts receivable, net of allowance for doubtful accounts of $197,911 and $149,980, respectively

    5,124,404       7,492,597  

Prepaid expenses

    390,565       297,131  

Other current assets

    11,917       11,463  

Total current assets

    6,898,848       8,977,742  

Property and equipment, net

    1,330,744       552,538  

Other assets

               

Intangible assets, net

    819,750       97,925  

Other assets

    129,018       46,714  
                 

TOTAL ASSETS

  $ 9,178,360     $ 9,674,919  
                 

LIABILITIES AND SHAREHOLDERS' (DEFICIT)

 
                 

CURRENT LIABILITIES

               

Accounts payable and accrued expenses

  $ 1,686,536     $ 2,586,045  

Notes payable, related parties, current portion, net of discount of $46,946 and $-0-, respectively

    353,054       -0-  

Convertible notes payable, current portion

    -0-       50,000  

Deferred revenue, current portion

    6,209,198       7,564,587  

Capital lease liability, current portion

    114,594       -0-  

Patent settlement liability, current portion

    -0-       112,500  

Conversion feature liability, related parties

    1,744,002       1,604,723  

Conversion feature liability

    96,510       81,224  

Warrant liability, related parties

    2,754,207       2,196,570  

Warrant liability

    1,682,000       1,244,229  

Total current liabilities

    14,640,101       15,439,878  
                 

LONG TERM LIABILITIES

               

Line of credit, long term

    3,200,000       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 $186,268 and $279,402, respectively

    516,232       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

    1,658,064       1,952,366  

Capital lease liability, long term, net of current portion

    206,010       -0-  
                 

TOTAL LIABILITIES

    26,190,407       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, 152,309,472 and 148,542,805 issued and outstanding, respectively, at $0.001 par value

    152,311       148,544  

Additional paid in capital - preferred

    999,750       999,750  

Additional paid in capital - common

    55,130,550       54,379,454  

Accumulated other comprehensive (loss)

    (431,661

)

    (397,237

)

Accumulated (deficit)

    (72,863,247

)

    (72,323,819

)

                 

TOTAL SHAREHOLDERS' (DEFICIT)

    (17,012,047

)

    (17,193,058

)

                 

TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT)

  $ 9,178,360     $ 9,674,919  

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

Japan

Bengaluru

India

 

 

 

 

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

   

For the nine months ended

 
   

September 30,

 
   

2018

   

2017

 
                 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net income/(loss)

  $ (539,428

)

  $ 2,394,546  

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

               

Change in derivative liabilities

    1,160,473       (723,532

)

Intangible asset impairment

    79,634       -0-  

Interest expense from derivative instruments

    163,553       241,664  

Employee stock compensation

    199,363       467,930  

Provision for doubtful accounts

    47,931       40,369  

Depreciation and amortization

    528,322       266,256  

Changes in operating assets and liabilities

               

Accounts receivable

    2,320,262       (889

)

Prepaid expenses

    (93,434

)

    (47,519

)

Other current assets

    (454

)

    2,915  

Other assets

    (82,304

)

    4,843  

Accounts payable and accrued expenses

    (899,509

)

    (510,316

)

Patent settlement liability

    (112,500

)

    (449,479

)

Deferred revenue

    (1,649,691

)

    (406,867

)

Net cash provided by/(used in) operating activities

    1,122,218       1,279,921  
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Purchase of property and equipment

    (700,028

)

    (212,173

)

Purchase of Acuity software

    (552,403

)

    -0-  

Net cash provided by/(used in) investing activities

    (1,252,431

)

    (212,173

)

                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Repayments of notes payable

    (200,000

)

    (1,020,000

)

Proceeds/(repayments) from revolving line of credit

    550,000       (200,000

)

Proceeds from exercise of stock options

    45,000       35,250  

Principal repayment of capital lease obligation

    (38,064

)

    -0-  

Net cash provided by/(used in) financing activities

    356,936       (1,184,750

)

                 

Effect of exchange rate changes on fixed and intangible assets

    3,112       (18,125

)

Effect of exchange rate changes on cash and cash equivalents

    (34,424

)

    13,386  

Net increase/(decrease) in cash and cash equivalents

    195,411       (121,741

)

Cash and cash equivalents at beginning of period

    1,176,551       1,439,332  
                 

Cash and cash equivalents at end of period

  $ 1,371,962     $ 1,317,591  
                 

Supplemental disclosures of cash flow information:

               

Cash paid during the period for:

               

Income taxes

  $ 1,035     $ 1,194  

Interest

  $ 889,984     $ 802,327  
                 

Non-cash transactions:

               

Notes payable issued in exchange for existing notes payable

  $ -0-     $ 350,000  

Restricted stock issuance/(forfeiture)

  $ 41,735     $ (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  

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

Japan

Bengaluru

India

 

 

 

 

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. 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

 

 

Fort Lauderdale, FL

United States

Somerset, NJ

United States

Bonn

Germany

Southampton

United Kingdom

Leiden

The Netherlands

Barcelona

Spain

Tokyo

Japan

Bengaluru

India