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): March 8, 2017

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 March 8, 2017, we issued a press release announcing the results of operations for the year ended December 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 March 8, 2017

  

 

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: March 10, 2017

 

 

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Exhibit 99.1

 

 

 

OptimizeRx Corporation Reports Record Fourth Quarter and Full Year 2016 Results

 

Fourth Quarter Drives Net Revenue Up 7% to $7.8 Million in 2016

 

Rochester, MI (March 8, 2017) OptimizeRx Corp. (OTCQB: OPRX), the leading aggregator of pharmaceutical-sponsored services in electronic health record (EHR) platforms, reported results for the fourth quarter and full year ended December 31, 2016. All quarterly comparisons are to the same year-ago quarter.

 

Q4 2016 and Full Year 2016 Highlights

 

●

Net revenue was up 13% to a record $2.3 million in the fourth quarter and up 7% to $7.8 million for the full year of 2016.

 

●

Financial messages, such as eCoupons, were distributed for 95 brands in 2016 versus 85 brands in 2015.

 

●

Acquired all available messaging inventory in the Allscripts LogRx messaging platform for Q4 2016 and the full year of 2017, effectively providing OptimizeRx exclusive sales rights to the platform and the opportunity to substantially increase brand messaging revenue.

 

●

Gross profit in the fourth quarter was $1.4 million or 62% of net revenue, up from $1.1 million or 54% of net revenue. The improvement was due to a favorable product mix shift to higher margin brand support and other partner revenue not subject to revenue share.

 

●

WPP, the largest marketing services company in the world, continued to integrate its pharmaceutical clients with OptimizeRx. As a result, OptimizeRx realized a significant increase in activity in Q4 2016 that was related to more than 25 brands. OptimizeRx expects its strategic relationship with WPP to help add additional manufacturers, brands and products to the OptimizeRx platform in 2017.

 

●

Acquired new pharmaceutical manufacturers and brands for distribution through the company’s electronic health record (EHR) channel partners, including Allscripts, Practice Fusion, Care360, DrFirst and others.

 

●

Announced independent research results demonstrating outstanding return on investment of up to 12:1 associated with the company’s pharmaceutical promotions of multiple pharmaceutical brands. The outstanding ROI differentiates OptimizeRx’s programs as one of the most effective digital strategies available to pharmaceutical firms.

 

●

Rebranded the company, including revamped website and marketing materials, to reflect its multiple services in and around point-of-care.

 

●

Doubled the company’s sales force from two to four in 2016 and added a fifth sales executive in January 2017 to accelerate revenue growth, brand expansion and new product sales.

 

●

Expanded OptimizeRx leadership and support teams during 2016, and established a strong base to position the company for accelerated growth in 2017 and beyond.

 

 

Q4 2016 Financial Summary 

 

Net revenue in the fourth quarter of 2016 increased 13% to a record $2.3 million from $2.0 million in the same year-ago quarter. The increase was due to both increased distribution of pharmaceutical brands and expanded distribution channels.

 

Operating expenses in the fourth quarter of 2016 were $1.8 million, increasing from $1.5 million in the fourth quarter of 2015. The increase was primarily due to an increase in expenses related to growth initiatives, including investments in the company’s executive and sales team, as well as related marketing and travel. Since the fourth quarter of 2015, the company has appointed a new CEO, a senior VP of strategy and development, a SVP of marketing, two new VPs of sales, as well as additional support positions.

 

Net loss for the quarter was $353,000 or $(0.01) per basic share, improving from a net loss of $415,000 or $(0.01) per share in the fourth quarter of 2015.

 

Cash and cash equivalents totaled $7.0 million at December 31, 2016, as compared to $7.6 million at September 30, 2016. The company continued to operate debt-free.

 

2016 Financial Summary

 

Net revenue in 2016 increased 7% to a record $7.8 million versus $7.2 million in 2015.

 

Operating expenses increased to $5.9 million in 2016 as compared to $4.2 million in 2015. The increase was primarily due to the aforementioned growth initiatives.

 

Net loss totaled $1.5 million or $(0.05) per share in 2016, as compared to a loss of $0.6 million or $(0.02) per share in 2015.

 

Management Commentary

 

“In 2016, our revenue was primarily driven by growth in our core product, which is financial messaging, such as eCoupons,” stated OptimizeRx CEO, William Febbo. “Our core product growth was attributed to our expanded point-of-prescribe EHR network that now includes more than 370 EHR's reaching more than 500,000 physicians. We also saw a considerable increase in brand messaging, as we had anticipated.”

 

“In addition to adding new brands and expanding our existing network, in 2017 we plan to intensively focus on growing both financial and brand messaging while working with our channel partners to increase utilization of our content with their respective networks of physicians.

 

“We signed an agreement in 2015 with Allscripts to become their exclusive provider of financial messaging and obtain access to their Touchworks EHR product, which is used primarily by large health systems. We expect financial messaging activity to commence within Touchworks, enabling us to reach more than 45,000 new physicians, this month and continue to ramp up throughout the year. We expect this launch to have a significant impact on our revenue growth in 2017 and beyond.

 

 

“We are building a valuable platform with our increasingly broad reach into the physician community and our recently proven, very high ROIs generated for our pharma clients with our core products. 2017 is the year that this platform will accelerate value creation for our shareholders.”

 

Conference Call

 

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

 

Date: Wednesday, March 8, 2017

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

Toll-free dial-in number: 1-888-277-7060

International dial-in number: 1-913-312-0719

Conference ID: 7160482

 

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

 

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through March 29, 2017, as well as available for replay via the Investors section of the OptimizeRx website at www.optimizerxcorp.com.

 

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 7160482

 

About OptimizeRx Corp

 

Based in Rochester, Michigan, OptimizeRx Corporation (OTCQB: OPRX) is a health technology software company that is revolutionizing the point of care experience through technology to improve clinical decisions and outcomes. OptimizeRx’s unique consumer and physician platforms 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.

 

OptimizeRx core product 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, DrFirst, NewCrop, Quest Diagnostics, Practice Fusion and other EHRs to reach over 500,000 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, visit www.optimizerx.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.

 

 

OPTIMIZERx CORPORATION

Consolidated Balance Sheets as of

December 31, 2016 and 2015

 

		December 31,				December 31,
		2016				2015
ASSETS
Current Assets
Cash and cash equivalents		$	7,034,647			$	8,207,565
Accounts receivable			3,060,396				2,847,450
Prepaid expenses			80,820				70,623
Total Current Assets			10,175,863				11,125,638
Property and equipment, net			173,649				10,239
Other Assets
Patent rights, net			772,394				832,884
Web development costs, net			351,804				340,470
Security deposit			5,049				5,049
Total Other Assets			1,129,247				1,178,403
TOTAL ASSETS		$	11,478,759			$	12,314,280
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable - trade		$	369,214			$	212,191
Accounts payable - related party			-				570,000
Accrued expenses			288,268				6,983
Revenue share payable			2,622,517				2,355,608
Deferred revenue			386,581				227,002
Total Liabilities			3,666,580				3,371,784
Stockholders' Equity
Preferred stock, $.001 par value, 10,000,000 shares authorized, no issued and outstanding at December 31, 2016 and 2015,			-				-
Common stock, $.001 par value, 500,000,000 shares authorized, 29,718,867 and 29,030,925 shares issued and outstanding at December 31, 2016 and 2015, respectively			29,719				29,031
Stock warrants			2,294,416				2,329,508
Additional paid-in-capital			33,747,137				32,185,499
Stock Payable			-				1,132,148
Deferred stock compensation			-				(13,800	)
Accumulated deficit			(28,259,093	)			(26,719,890	)
Total Stockholders' Equity			7,812,179				8,942,496
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	11,478,759			$	12,314,280

 

 

OPTIMIZERx CORPORATION

Consolidated Statements of Operations for the Years

Ended December 31, 2016 and 2015

 

		For the				For the
		year ended				year ended
		December 31,				December 31,
		2016				2015
NET REVENUE		$	7,751,462			$	7,220,678
REVENUE SHARE EXPENSE			3,411,396				3,622,203
GROSS MARGIN			4,340,066				3,598,475
EXPENSES
Operating expenses
Stock-based compensation			559,301				581,106
Depreciation and amortization			235,284				333,950
Lawsuit settlement			50,000				-
Other operating expenses			5,076,993				3,280,826
Total Operating expenses			5,921,578				4,195,882
LOSS FROM OPERATIONS			(1,581,512	)			(597,407	)
OTHER INCOME
Interest income			42,309				2,267
Interest expense			-				-
TOTAL OTHER INCOME			42,309				2,267
LOSS BEFORE PROVISION FOR INCOME TAXES			(1,539,203	)			(595,140	)
PROVISION FOR INCOME TAXES			-				-
NET LOSS		$	(1,539,203	)		$	(595,140	)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC			29,707,918				24,562,438
NET LOSS PER SHARE: BASIC (no separate per share amount shown for diluted because loss is antidilutive)		$	(0.05	)		$	(0.02	)

 

 

OptimizeRx Contact:

Doug Baker, CFO

dbaker@optimizerx.com

Tel (248) 651-6568 x807

 

OptimizeRx’s Investor Relations Contact:

Ron Both

CMA

oprx@cma.team

Tel (949) 432-7557

 

 

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