OmniComm Reports Financial Results for the Quarter Ended March 31, 2018


FORT LAUDERDALE, Fla., May 15, 2018 (GLOBE NEWSWIRE) -- OmniComm Systems, Inc. (OTCQX:OMCM), a global leading provider of clinical data management technology, today announced record financial results for the quarter ended March 31, 2018.

“We are off to a considerably better start this year in comparison to last year,” said Stephen Johnson, chief executive officer and president of OmniComm. “With more than 120 clients and the introduction of three new product lines — IRTMaster, Acuity and AutoEncoder — we are well-positioned for strong financial growth in the near future. These new product lines, coupled with a shift in our business toward a subscription model, will enhance the predictability and sustainability of future revenue.”

For the quarter ended March 31, 2018, OmniComm reported revenue of $7.2 million, a 25% increase over the prior year’s first quarter revenue of $5.7 million. Gross margin improved by 35% to $6.0 million. Operating expenses increased by 15% or $0.6 million to $5.1 million, which resulted in operating income of $0.9 million. EBITDA, a non-GAAP financial measure OmniComm uses as an additional financial measure, was $1.0 million compared to $0.1 million in the first quarter of 2017.

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 three months ended
    March 31,
     2018  2017
       
 Operating income/(loss) (GAAP)$  905,136 $  15,984
 Depreciation expense   77,776    79,924
 Amortization expense   64,149    5,403
 EBITDA (non-GAAP)$  1,047,061 $  101,311
       


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 three months ended  
    March 31,  
     2018   2017   
 Revenues  $  7,040,369  $  5,658,176   
 Reimbursable revenues   150,103     77,354   
 Total revenues    7,190,472     5,735,530   
         
 Cost of goods sold   1,153,625     1,080,690   
 Reimbursable expenses-cost of goods sold   57,876     211,804   
 Total cost of goods sold   1,211,501     1,292,494   
         
 Gross margin     5,978,971     4,443,036   
         
 Operating expenses     
 Salaries, benefits and related taxes   3,659,340     3,290,583   
 Rent and occupancy expenses   289,334     278,952   
 Consulting services   125,536     59,629   
 Legal and professional fees   221,252     147,357   
 Travel     200,396     287,691   
 Telephone and internet   29,683     39,258   
 Selling, general and administrative   409,756     208,889   
 Bad debt expense    (3,387)  29,366   
 Depreciation expense   77,776     79,924   
 Amortization expense   64,149     5,403   
 Total operating expenses   5,073,835     4,427,052   
         
 Operating income/(loss)   905,136     15,984   
         
 Other income/(expense)     
 Interest expense, related parties   (225,418)    (231,459)  
 Interest expense    (90,943)    (107,998)  
 Interest income    5     1   
 Change in derivative liabilities   28,416     393,340   
 Transaction gain/(loss)   (22,678)    5,300   
 Income/(loss) before income taxes   594,518     75,168   
 Income tax (expense)   (1,035)    (1,194)  
 Net income/(loss) attributable to common stockholders$  593,483  $  73,974   
         
 Net income/(loss) per share     
   Basic  $  0.00  $  0.00   
   Diluted $  0.00  $  0.00   
 Weighted average number of shares outstanding     
   Basic     149,653,916     147,785,621   
   Diluted    152,693,666     147,953,716   
         


         
 OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES 
 CONSDENSED CONSOLIDATED BALANCE SHEETS 
         
         
     March 31, 2018 December 31, 2017 
     (unaudited)   
 ASSETS 
         
 CURRENT ASSETS     
  Cash $  1,175,737  $  1,176,551  
  Accounts receivable, net of allowance for doubtful accounts of $146,593 and $149,980, respectively    5,993,778     7,492,597  
  Prepaid expenses    267,584     297,131  
  Other current assets    20,734     11,463  
   Total current assets    7,457,833     8,977,742  
  Property and equipment, net    569,154     552,538  
  Other assets     
  Intangible assets, net    1,088,479     97,925  
  Other assets    67,691     46,714  
         
 TOTAL ASSETS $  9,183,157  $  9,674,919  
         
 LIABILITIES AND SHAREHOLDERS' (DEFICIT) 
         
 CURRENT LIABILITIES     
  Accounts payable and accrued expenses $  1,561,512  $  2,586,045  
  Deferred revenue, current portion    5,388,991     7,564,587  
  Convertible notes payable, current portion    50,000     50,000  
  Patent settlement liability, current portion -0-    112,500  
  Conversion feature liability, related parties    1,568,527     1,604,723  
  Conversion feature liability    86,117     81,224  
  Warrant liability, related parties    2,162,345     2,196,570  
  Warrant liability    1,281,341     1,244,229  
   Total current liabilities    12,098,833     15,439,878  
         
 LONG TERM LIABILITIES     
  Line of credit, long term    4,400,000     2,650,000  
  Notes payable, related parties, long term, net of current portion, net of discount of $93,892 and $117,365, respectively    306,108     282,635  
  Notes payable, long term, net of current portion, net of discount of $248,357  and $279,402, respectively    454,143     423,098  
  Deferred revenue, long term, net of current portion    1,845,835     1,952,366  
  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    350,000     350,000  
         
 TOTAL LIABILITIES    25,224,919     26,867,977  
         
 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, 150,209,472 and 148,542,805 issued and outstanding, respectively, at $0.001 par value    150,211     148,544  
  Additional paid in capital - preferred    999,750     999,750  
  Additional paid in capital - common    54,934,313     54,379,454  
  Accumulated other comprehensive (loss)    (395,950)    (397,237) 
  Accumulated (deficit)    (71,730,336)    (72,323,819) 
         
 TOTAL SHAREHOLDERS' (DEFICIT)    (16,041,762)    (17,193,058) 
         
 TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) $  9,183,157  $  9,674,919  
         
         


         
 OMNICOMM SYSTEMS, INC. AND SUBSIDIARIES 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (unaudited) 
       
     For the three months ended 
     March 31, 
     2018  2017  
         
 CASH FLOWS FROM OPERATING ACTIVITIES     
 Net income/(loss)$593,483 $73,974  
 Adjustment to reconcile net income/(loss) to net cash provided by/(used in) operating activities     
  Change in derivative liabilities   (28,416)   (393,340) 
  Interest expense from derivative instruments   54,518    61,429  
  Employee stock compensation   56,526    133,979  
  Provision for doubtful accounts   (3,387)   29,366  
  Depreciation and amortization   141,925    85,327  
  Changes in operating assets and liabilities     
   Accounts receivable   1,502,206    104,622  
   Prepaid expenses   29,547    26,418  
   Other current assets   (9,271)   15,848  
   Other assets   (20,977)   (339) 
   Accounts payable and accrued expenses   (1,024,533)   (573,305) 
   Patent settlement liability   (112,500)   (127,983) 
   Deferred revenue   (2,282,127)   (167,536) 
 Net cash provided by/(used in) operating activities   (1,103,006)   (731,540) 
         
 CASH FLOWS FROM INVESTING ACTIVITIES     
  Purchase of property and equipment   (92,794)   (61,554) 
  Purchase of Acuity software   (552,403) -0- 
 Net cash (used in) investing activities   (645,197)   (61,554) 
         
 CASH FLOWS FROM FINANCING ACTIVITIES     
  Proceeds/(repayments) from revolving line of credit   1,750,000  -0- 
 Net cash provided by/(used in) financing activities   1,750,000  -0- 
         
 Effect of exchange rate changes on fixed and intangible assets   (3,898)   (2,594) 
 Effect of exchange rate changes on cash and cash equivalents   1,287    (2,468) 
 Net increase/(decrease) in cash and cash equivalents   (814)   (798,156) 
 Cash and cash equivalents at beginning of period   1,176,551    1,439,332  
         
 Cash and cash equivalents at end of period$  1,175,737 $  641,176  
         
 Supplemental disclosures of cash flow information:     
  Cash paid during the period for:     
   Income taxes$  1,035 $  1,159  
   Interest$  254,092  $  250,161  
   
 Non-cash transactions:     
  Common stock issued for the purchase of Acuity software $500,000  $-0- 
  Restricted stock issuance/(forfeiture)$-0- $ (2,834) 
         


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