Yahoo Finance FOMO CORP. ANNOUNCES FIRST QUARTER RESULTS; ENTERS EDTECH MARKET WITH SST ACQUISITION
CHICAGO, IL., July 13, 2022 (GLOBE NEWSWIRE) -- FOMO CORP. (OTC PINK CURRENT: FOMC) is pleased to announce that the Company has filed Form 10-Q with the SEC for the three-month period ended March 31, 2022. This report includes one month of SMARTSolution Technologies LP (“SST”) P&L, as that business was acquired on February 28, 2022.
Q1 2022 Financial Highlights (vs. Q1 2021):
*Net sales of $1.23 million, up 615% from $151K in the prior year’s same period, with pro forma revenues assuming the SST acquisition closed on January 1, 2022, a multiple of this figure,
Gross profit of $165K, or 13.4%, compared to $19K, or 12.7%, in the prior year’s same period,
Adjusted EBITDA loss of ($280K) an improvement from ($361K) for the period ending March 31, 2021, which excludes non-cash stock-based compensation, warrants issued for services, and depreciation and amortization,
Backlog as of March 31, 2022 was approximately $2.5 million, driven by significant demand from K12 customers in Western Pennsylvania, Eastern Ohio, and West Virginia that have access to billions of dollars of federal stimulus funding (ESSER funds – Elementary Secondary School Emergency Relief funds) they must spend this coming school year,
For further information on the quarter see our Form 10-Q on EDGAR at https://www.sec.gov/ix?doc=/Archives/edgar/data/867028/000149315222018972/form10-q.htm
Operational Highlights:
Entered “EdTech” business with the acquisition of SMARTSolution Technologies LP on February 28, 2022, adding over one dozen industry professionals focused on sales of interactive whiteboards and ancillary products and services to K12, post-secondary education, enterprise and government markets,
In Q2 we raised approximately $2 million in non-dilutive financing to improve the companies liquidity, and provide the necessary cash and financing for anticipated growth over Q3 and Q4 of 2022.
**Prepared and subsequently filed all required forms with SEC to regain “current” filing status based on year-end 2021.
**Restructured operations to reflect new business focus and strategic direction.
*Closed the SST transaction on 2/28/2022; results reflect only one month of business for SST.
**Indicates Subsequent to Quarter End Items
Vik Grover CFA, CEO of FOMO CORP., commented, “We have taken numerous steps in the past year to transform this company into an exciting opportunity for our shareholders. The SMARTSolution Technologies business is on track to generate estimated top line revenues of $8-10 million for this year. I believe that there are efficiencies we can achieve throughout the organization to move operating margins gradually and consistently higher through cost cutting, higher volumes, and potential cross-selling of additional products and services to SST’s existing and future customers. Improved availability of materials across our market segments has allowed our booked sales to increase significantly. While not wholly efficient in their supply chains, our vendors have acted to capture as much of the market as possible while other vendors have struggled to obtain materials. Given the above, our closed June quarter books show a level of revenues and EBITDA at SST that should drive a record report for the public Company since FOMO’s predecessor reorganized in 2014. Given this high level of performance coupled with recent cost cutting, restructuring of non-performing assets, and write ups of minority investments, FOMO is on a path to turn profitable.”
“We continue to streamline our air purification and disinfecting business, and while it had minimal revenues in the quarter, we are optimistic that there will be opportunities to build the division both through cross-selling into the K12 education market, and potentially working with additional strategic partners to leverage their distribution into synergistic verticals such as enterprise and government cleaning, disinfection and other. To this end, we are in preliminary discussions with a mid-Atlantic provider of such services for partnership, investment and/or acquisition, and we are doubling down on our effort to partner with and/or acquire HVAC/electrical contractors.”
“From a corporate standpoint, we have brought in additional resources in accounting, finance, sales, marketing, legal and other areas that we will count on to build on our foundation and thrive as a public company. While it has certainly taken time, and there have been some twists and turns in the road, we continue to forge our path forward each day, and I’m looking forward to a promising year of growth for our business. Our current businesses are adequately funded for near-term growth and the future is right as we enter a new chapter,” concluded Grover.
About FOMO CORP.
FOMO CORP. (https://www.fomoworldwide.com/) is a publicly traded company focused on business incubation and acceleration. The Company invests in and advises emerging companies aligned with a growth mandate. FOMO is developing direct investment and affiliations - majority- and minority-owned as well as in joint venture formats - that afford targets access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.
About SST
SMARTSolution Technologies LP (https://smarterguys.com/), a wholly-owned subsidiary of FOMO CORP., is a Pittsburgh, PA–based audiovisual systems integration company that designs and builds presentation, teleconferencing and collaborative systems for businesses, educational institutions and other nonprofits organizations. SMARTSolution is a leader in interactive display technologies for use in all type of curriculum and has been providing interactive solutions to the EdTech market for over 25 years.
Forward-Looking Statements
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This release contains statements that are forward-looking in nature which express the beliefs and expectations of management including statements regarding the Company's expected results of operations or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results and future economic performance; and statements of management's goals and objectives and other similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "we believe," "we intend," "may," "will," "should," "could," and similar expressions. Such statements are based on current plans, estimates and expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. These factors and additional information are discussed in the Company's filings with the Securities and Exchange Commission and statements in this release should be evaluated in light of these important factors. Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future results. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Contact:
FOMO CORP.
Madison Ryan
VP Investor Relations
IR@fomoworldwide.com
407-325-3090
