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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): August 1, 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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company   ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      ☐

 

 

  
 

 

SECTION 2 – Financial Information

 

Item 2.02Results of Operations and Financial Condition.

 

On August 1, 2017, we issued a press release announcing the results of operations for the three and six months ended June 30, 2017.

 

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 9.01Financial Statements and Exhibits.

 

Exhibit No.   Description
99.1   Press release, dated August 1, 2017

 

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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: August 2, 2017    

 

 

 

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Exhibit 99.1

 

 

OptimizeRx Reports Second Quarter 2017 Results; Net Revenue Up 50% to a Record $2.9 Million

 

Rochester, MI (August 1, 2017) OptimizeRx Corp. (OTCQB: OPRX), a digital health platform and leader in the electronic distribution of co-pay discount coupons and clinical information through electronic healthcare records (EHR) and e-prescription (eRx), reported results for the second quarter ended June 30, 2017. All quarterly comparisons are to the same year-ago quarter.

Q2 2017 Highlights

•Net revenue was up 50% to $2.9 million, driven by financial and brand messaging growth from new and returning clients.
   
•Financial messages, such as eCoupons, and brand messaging were distributed for over 100 pharmaceutical brands in the quarter.
   
•Partnered with PARx Solutions to enable the company to bring prior authorization services to its channel partners, as well as to distribute financial messages through the OptimizeRx platform at the time of prior authorization.
   
•Partnered exclusively with SingleCare to bring patient savings and price transparency to healthcare providers at the point of prescribe for generics.
   
•Launched brand messaging platform within NewCrop and financial messaging within DxWeb, two e-prescribing partners.
   
•Appointed Gus D. Halas as chairman of the board, succeeding retired chairman and company founder, David Harrell.
   
•Added a sixth sales executive to accelerate revenue growth, brand expansion and new product sales.

Q2 2017 Financial Summary
Net revenue in the second quarter of 2017 increased 50% to $2.9 million from $1.9 million in the same year-ago quarter. The increase was primarily due to increased revenue from brand messaging products, as well as expanded distribution channels for the company’s financial messaging. Additionally, the launch of new pharmaceutical brands, which now totals more than 100 between financial and brand messaging, also contributed to the increase.

Operating expenses in the second quarter of 2017 were $1.6 million, up slightly from the second quarter of 2016. The increase was primarily due to additional expenses related to growth initiatives, including investments in the company’s executive and sales team.

Net loss for the second quarter of 2017 was $362,000 or $(0.01) per share, as compared to a net loss of $592,000 or $(0.02) per share in the second quarter of 2016.

Cash and cash equivalents totaled $5.8 million at June 30, 2017, as compared to $6.7 million at March 31, 2017. The decrease includes $0.4 million used to repurchase common stock. The company continued to operate debt-free.

  
 

 

Management Commentary

“In Q2, our record top-line was driven by the expansion of our EHR network, ePrescriber reach and financial and brand messaging products,” said OptimizeRx CEO, William Febbo. “We also continue to add new pharmaceutical manufacturers and their respective brands. We are very pleased with our revenue growth combined with cost discipline.

“During the second quarter, we continued to see compelling ROI data on financial messaging programs which increased the adoption of the EHR channel for our clients, adding an additional 24 brands to our platform. We continue to work closely with WPP Health & Wellness companies as the digital media spend continues to be the fastest growing digital spend sector.

“To support further client and brand growth, we have continued to build out our team and recently added another member to the sales team for greater penetration and service. Health IT industry veteran, Miriam Paramore, was also appointed as our new president to oversee our product expansion, channel expansion and top-line growth.

“We have continued to acquire, integrate and expand into new promotional EHR/eRx platforms. In fact, we are actively engaged in discussions with several EHRs to integrate our technology into their platforms. Our teams are also working extensively with our existing platforms to expand the reach of our eCoupon product to all of their providers, as well as increase the utilization of the eCoupon functionality by their existing users.

“Given the growth of our pharmaceutical products and distribution network, we expect our distribution of financial messages will continue to increase, and brand messaging will continue to support top-line growth.”

“It’s important to note that our cost of sales percentage decreased from 64% in the first quarter of the year to 56% in the second quarter. We expect to see further improvement in future quarters as we implement new channels in our core financial messaging product that have lower revenue share percentages, and as we update our existing agreements to share third party costs.

“In step with this, we expect the margins on our brand messaging product to increase as we diversify across additional channels and increase brand messaging revenues. We expect this to help advance us toward our goal of achieving gross margins of 50% or greater.” 

Conference Call

OptimizeRx management will host a conference call today to discuss the second quarter of 2017, followed by a question and answer period.

 

Date: Tuesday, August 1, 2017

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

Toll-free dial-in number: 1-888-596-2581

International dial-in number: 1-719-325-4826

Conference ID: 7557911

 

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 August 22, 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: 7557911

 

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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, Merck, 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.

 

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OPTIMIZERx CORPORATION

 CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

AS OF JUNE 30, 2017 AND DECEMBER 31, 2016

 

         
  

June 30,

2017

  

December 31,

2016

 
ASSETS          
Current Assets          
Cash and cash equivalents  $5,842,602   $7,034,647 
Accounts receivable   2,421,794    3,060,396 
Prepaid expenses   272,153    80,820 
Total Current Assets   8,536,549    10,175,863 
Property and equipment, net   183,248    173,649 
Other Assets          
Patent rights, net   738,449    772,394 
Web development and other intangible costs, net   1,015,154    351,804 
Security deposit   5,049    5,049 
Total Other Assets   1,758,652    1,129,247 
TOTAL ASSETS  $10,478,449   $11,478,759 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current Liabilities          
Accounts payable - trade  $903,957   $369,214 
Accrued expenses   196,287    288,268 
Revenue share payable   1,871,423    2,622,517 
Deferred revenue   1,036,912    386,581 
Total Liabilities   4,008,579    3,666,580 
Stockholders' Equity          
Common stock, $.001 par value, 500,000,000 shares authorized, 29,256,367 and 29,718,867 shares issued and outstanding, respectively   29,256    29,719 
Preferred stock, $.001 par value, 10,000,000 shares authorized, no shares issued and outstanding   -    - 
Stock warrants   2,294,416    2,294,416 
Additional paid-in-capital   33,649,474    33,747,137 
Accumulated deficit   (29,503,276)   (28,259,093)
Total Stockholders' Equity   6,469,870    7,812,179 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $10,478,449   $11,478,759 

 

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OPTIMIZERx CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017 AND 2016

  

   

 

     For the Three Months Ended   For the Six Months Ended 
   June 30   June 30 
   2017   2016   2017   2016 
                 
NET REVENUE  $2,865,823   $1,913,299   $5,017,896   $3,672,828 
                     
REVENUE SHARE EXPENSE   1,605,534    922,832    2,987,267    1,815,625 
                     
 GROSS MARGIN   1,260,289    990,467    2,030,629    1,857,203 
                     
OPERATING EXPENSES   1,630,853    1,592,982    3,291,631    2,821,546 
                     
INCOME (LOSS) FROM OPERATIONS   (370,564)   (602,515)   (1,261,002)   (964,343)
                     
OTHER INCOME (EXPENSE)                    
 Interest income   9,063    10,582    16,819    20,658 
 Interest expense   -    -    -    (163)
                     
 TOTAL OTHER INCOME (EXPENSE)   9,063    10,582    16,819    20,495 
                     
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES   (361,501)   (591,933)   (1,244,183)   (943,848)
                     
PROVISION FOR INCOME TAXES   -    -    -    - 
                     
NET INCOME (LOSS)  $(361,501)  $(591,933)  $(1,244,183)  $(943,848)
                     
WEIGHTED AVERGE NUMBER OF SHARES OUTSTANDING                    
 BASIC   29,583,771    29,141,340    29,650,945    29,086,134 
 DILUTED    N/A     N/A     N/A      N/A  
                     
NET INCOME (LOSS) PER SHARE                    
 BASIC  $(0.01)  $(0.02)  $(0.04)  $(0.03)
 DILUTED    N/A     N/A     N/A      N/A  
                     

OptimizeRx Contact:

Doug Baker, CFO

dbaker@optimizerx.com

Tel (248) 651-6568 x807

 

Investor Relations Contact:

Ron Both

CMA

oprx@cma.team

Tel (949) 432-7557

 

 

 

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