SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 9, 2016

OptimizeRx Corporation
(Exact name of registrant as specified in its charter)

 

Nevada   000-53605   26-1265381
(State or other jurisdiction
of incorporation)
  (Commission File Number)   (I.R.S. Employer
Identification No.)

 

400 Water Street, Suite 200, Rochester, MI   48307
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: 248.651.6568

 

     
   (Former name or former address, if changed since last report)  

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

SECTION 2 – Financial Information

 

Item 2.02 Results of Operations and Financial Condition.

 

On May 9, 2016, we issued a press release announcing the results of operations for the quarter ended March 31, 2016.

 

The press release is furnished with this Current Report on Form 8-K as Exhibit 99.1. The information furnished under this Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any registration statement or other filing under the Securities Act of 1933, as amended, regardless of any general incorporation by reference language in such filing, except as shall be expressly set forth by specific reference in any such filing.

 

SECTION 9 – Financial Statements and Exhibits

 

Item 9.01 Financial Statements and Exhibits.

 

Exhibit No.   Description
99.1   Press release, dated May 9, 2016

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

OptimizeRx Corporation

  

/s/ Douglas Baker  
Douglas Baker  
Chief Financial Officer  

  

Date: May 10, 2016

 

 

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Exhibit 99.1

 

 

 

OptimizeRx Corporation Reports First Quarter 2016 Results

 

Core Promotional Transactions Up 16%, Driving Q1 Net Revenue up 18% to $1.8 Million

 

ROCHESTER, MI – May 9, 2016 OptimizeRx Corp. (OTCQB: OPRX), a health technology software company whose premier content-delivery platform enables pharmaceutical companies to provide on-demand patient-care services, reported results for the first quarter ended March 31, 2016.

 

Q1 2016 Highlights

 

Promotional transactions, including eCoupons and eVouchers, up 16% in the quarter.
  
Net revenue up 18% to $1.8 million in the quarter.
  
eCoupons distributed for 73 different brands in the quarter, up from 57 brands in the first quarter of 2015.
  
Partnered with TrialCard to integrate its coupon and co-pay offerings with OptimizeRx electronic health record (EHR) technology.
  
Sponsored the ePrescribe/EHR conference held in Philadelphia in March, which generated significant leads for the company’s sales force.
  
Appointed William J. Febbo as CEO. Febbo brings to OptimizeRx more than 18 years of experience in building and managing health services and financial businesses.
  
Appointed James Brooks as SVP of business development. Brooks brings more than 20 years of experience in sales and marketing. 
  
Added sales rep on the East Coast.

 

Q1 2016 Financial Summary

Net revenue in the first quarter of 2016 was $1.8 million versus $1.5 million in the same year-ago quarter. The increase was due to both increased promotion of pharmaceutical brands and expanded distribution channels.

 

Operating expenses in the first quarter of 2016 were $1.2 million, as compared to $0.8 million in the same year-ago quarter. The increase was primarily due to an increase in expenses related to growth initiatives, including investments in the company’s executive and sales team and related marketing and travel. Since the first quarter of 2015, the company has appointed a vice president of client services, a senior vice president of business development, an additional vice president of sales, and a CEO.

 

 
 

 

Net loss was $352,000 or $(0.01) per share, as compared to net loss of $111,000 or $(0.00) per share in the same year-ago quarter.

 

Cash and cash equivalents totaled $7.5 million at March 31, 2016, as compared to $8.2 million at December 31, 2015. The decrease in cash and equivalents was due to the payout to the company’s former CEO for shares owed to him from prior years, in lieu of actually issuing those shares. Without that payout, the company’s cash would have increased slightly during the quarter. The company continued to operate debt-free.

 

Management Commentary

“OptimizeRx has generated 16 consecutive quarters of year-over-year sales growth, driven by acquiring, integrating and expanding into new promotional EHR and eRx platforms,” said William Febbo, OptimizeRx’s CEO. “Currently, our focus is on building out our internal team to expand our reach within EHR providers, pharmacies and consumers. This team will leverage our existing client engagements to drive continued top-line growth. As a first mover and developer of the eCoupon market, we are aggressively expanding our suite of products and services designed to efficiently maximize the marketing channel for our clients.”

 

“Looking ahead, we will continue to invest in expanding our team to scale our business. We will also invest in technology and marketing while delivering a consistent message to potential customers that we connect fragmented EHR channels with our ‘single point of access’ promotional network.”

 

Conference Call

OptimizeRx will host a conference call today to discuss the first quarter 2016, followed by a question and answer period.

 

Date: Monday, May 9, 2016

Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Toll-free dial-in number: 1-877-397-0272

International dial-in number: 1-719-325-4749

Conference ID: 2574067

 

A replay of the call will be available through May 30, 2016.

 

Toll-free replay number: 1-877-870-5176

International replay number: 1-858-384-5517

Replay ID: 2574067

 

The company expects to file its quarterly report on Form 10-Q today.

 

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About OptimizeRx Corp
OptimizeRx Corporation (OTCQB: OPRX) provides unique consumer and physician platforms to help patients better afford and comply with their medicines and healthcare products, while offering pharmaceutical and healthcare companies effective ways to expand awareness, access and adherence to their medications.

 

The company’s core product, SampleMD, replaces drug samples with electronic trial vouchers and copay coupon savings that are electronically added to an e-Prescription and sent electronically to the pharmacy and is integrated within leading electronic health record (EHR) platforms in the country, including Allscripts, Quest Diagnostics, Practice Fusion and over 350 other EHRs to reach over 250,000 healthcare providers. In turn, OptimizeRx promotes patient savings and support from the world’s largest pharmaceutical companies, including Pfizer, Lilly, Novartis, AstraZeneca and many others. For more information, please go to www.optimizerxcorp.com.

 

Important Cautions Regarding Forward Looking Statements
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.

 

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OPTIMIZERx CORPORATION

 CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)

AS OF MARCH 31, 2016 AND DECEMBER 31, 2015

 

   March 31, 2016   December 31, 2015 
ASSETS        
Current Assets        
Cash and cash equivalents  $7,548,261   $8,207,565 
Accounts receivable   2,340,765    2,847,450 
Prepaid expenses   54,555    70,623 
Total Current Assets   9,943,581    11,125,638 
Property and equipment, net   23,076    10,239 
Other Assets          
Patent rights, net   817,239    832,884 
Web development costs, net   308,812    340,470 
Security deposit   5,049    5,049 
Total Other Assets   1,131,100    1,178,403 
TOTAL ASSETS  $11,097,757   $12,314,280 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities          
Accounts payable - trade  $195,076   $212,191 
Accounts payable - related party   -    570,000 
Accrued expenses   8,090    6,983 
Revenue share payable   1,502,816    2,355,608 
Deferred revenue   845,226    227,002 
Total Liabilities   2,551,208    3,371,784 
Stockholders' Equity          
Common stock, $.001 par value, 500,000,000 shares authorized, 29,043,425 and 29,030,925 shares issued and outstanding, respectively   29,043    29,031 
Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 and 65 shares issued and outstanding, respectively   -    - 
Stock warrants   2,294,416    2,329,508 
Additional paid-in-capital   32,631,226    32,185,499 
Stock payable   663,670    1,132,148 
Deferred stock compensation   -    (13,800)
Accumulated deficit   (27,071,806)   (26,719,890)
Total Stockholders' Equity   8,546,549    8,942,496 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $11,097,757   $12,314,280 

 

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OPTIMIZERx CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2016 AND 2015

 

   For the Three Months Ended 
   March 31
   2016   2015 
           
NET REVENUE      $1,759,528   $1,487,553 
           
COST OF SALES       892,793    756,440 
           
GROSS MARGIN      866,735    731,113 
           
OPERATING EXPENSES       1,228,564    842,610 
           
LOSS FROM OPERATIONS      (361,829)   (111,497)
           
OTHER INCOME (EXPENSE)              
Interest income      10,076    296 
Interest Expense     (163)   - 
           
TOTAL OTHER INCOME (EXPENSE)      9,913    296 
           
LOSS BEFORE PROVISION FOR INCOME TAXES    (351,916)   (111,201)
           
PROVISION FOR INCOME TAXES       -    - 
           
NET LOSS      $(351,916)  $(111,201)
           
WEIGHTED AVERAGE SHARES OUTSTANDING          
           
BASIC AND DILUTED      29,030,925    22,897,819 
           
NET LOSS PER SHARE           
           
BASIC AND DILUTED   $(0.01)  $(0.00)

 

Company Contact:

OptimizeRx
Doug Baker

dbaker@samplemd.com

248-651-6568 x807

 

Investor Relations Contact:

Liolios Group

Ron Both, Senior Managing Director

oprx@liolios.com

949-574-3860

 

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