Chicago IL, Aug. 15, 2022 (GLOBE NEWSWIRE) — FOMO CORP. (US OTC: FOMC) proclaims document second quarter outcomes pushed by important demand for interactive whiteboard and EdTech options from K12 faculties in Ohio, Pennsylvania, and West Virginia. Additionally, the Company positioned its clear tech business for renewed development and continued to discover strategic mergers, acquisitions and investments.
Strong 2Q22 Results Illustrate Inflection Point within the Business
In the second quarter ended June 30, 2022, on a consolidated foundation, the Company generated revenues of $2.6 million up $2.515 million or 2,959% from $85,000 throughout the identical interval in 2021. During the six months ended June 30, 2022, on a consolidated foundation, the Company generated $3.9 million high line, up $3.65 million or 1,460% from $250,000 through the prior 12 months’s similar interval. In the second quarter, the Company turned money circulation constructive, considerably improved its liquidity place, and enhanced its working capital profile. Backlog at interval finish was a number of million {dollars}.
The substantial improve in revenues was primarily the results of FOMO’s acquisition of SMARTSolution Technologies, LP (“SST”) on the finish of February 2022. SST’s business is now at document ranges within the historical past of the Company, aided by roughly $500 billion of stimulus funding from the Biden Administration to K12 faculties below the ESSER funds program (“Elementary Secondary School Emergency Relief”). SST is a diamond channel associate of SMART Technologies of Canada, the world chief in schooling expertise gear that permits youngsters to take part within the classroom atmosphere whether or not in school, at house or touring. K12 faculties are at the moment in a fast refresh cycle to carry this expertise to their districts which represents a sizeable addressable market as SST additional penetrates its current markets and positions to edge out into adjoining territories.
Improved Liquidity Fully Funds the Business
Today, FOMO and its associates have in extra of greater than $1.1 million money and accounts receivable of $1.6 million. The Company has an asset backed mortgage credit score line of as much as $1.5 million with $1.2 million drawn. A $500,000 buy order line has been paid all the way down to zero, and the SST business has paid down its vendor line with SMART (Canada) from $1.6 million to a number of hundred thousand {dollars}. With projected constructive EBITDA in 3Q22, whole liquidity stands at over $2 million, absolutely funding the business.
Targeting Strategic M&A and Investments to Accelerate Growth and Add Scale
To speed up development, add scale and enhance profitability, FOMO is evaluating quite a few potential strategic mergers and acquisitions, investments in expertise firms, and new hires to focus on new verticals and buyer units in edtech and cleantech. For instance, the Company has entertained discussions with cleansing companies suppliers supporting enterprise, authorities and institutional accounts. Other areas of curiosity embrace entry management suppliers to K12, post-secondary schooling and enterprise clients in addition to edtech companies like SST in different areas of the nation. Throughout, FOMO is evaluating contractors and particular person technicians to help its efforts in its current portfolio. The volatility within the capital markets has generated quite a few leads on this regard, although no definitive agreements are at the moment in place to consummate a transaction.
Management Commentary
John Raymond General Manager and Head of Procurement of SST mentioned:: “Q2 saw significant gains in booked sales. These sales include a record number of signed school districts in Western Pennsylvania, Eastern and Central Ohio and West Virginia. Approximately 95 school districts have booked with SMARTSolution Technologies representing over 190,000 students. SMARTSolution Technologies continues to leverage the legacy technology with enhancements in software options, as well as new and replacement technology. Our customer engagement is strong. Despite logistical and supply chain issues, our suppliers and distributors continue to work diligently to provide materials for installation. Our long-standing relationships with these major manufacturers have provided us with ‘head of the line’ for supply as quickly as it becomes available. Our backlog continues to hold steady at approximately $4 million as our operations team completes projects and our sales team adds new bookings to keep this balance in place. We are seeking to increase the backlog while maintaining a relatively low overhead and staffing cost. Our technology offerings are being augmented by our manufacturers ability to rapidly re-deploy product around the predominate shortage of computer and video chips. This has allowed us to continue to push to market enhanced products where other competitors are not able to do so. While we have reduced some overhead costs, we have also added to our technical and office support staff. Overall, our team remains deeply committed and engaged in their work and morale and initiative are high. We look forward to an even stronger performance into Q3 and finishing at further record levels, come Q4.”
Vik Grover CEO of FOMO CORP. mentioned: “The Company has moved through an inflection point in its business, after years of navigating the treacherous capital markets and evaluating numerous candidates for acquisition. The interactive whiteboard market is booming, with K12 schools required to ‘use it or lose it’ on billions of stimulus dollars aimed at improving the nation’s education system. The technology is in high demand, not only because it allows a better learning experience in the classroom, but because it integrates with edge devices like chrome books allowing students to participate and communicate during the learning process whether at school, at home or elsewhere. We are forming a new online business called “CLEANsolution Technologies” to combine our clear air, LED and HVAC administration merchandise and leverage them for a B2B or DTC mannequin. This system will probably be geared partly to permit our SST gross sales reps to supply these merchandise to our important embedded base of K12 faculties. We are negotiating the rent of a gross sales rep to maneuver SST upstream to post-secondary schooling targets, together with faculties and universities, in addition to enterprise clients that may use whiteboards for boardroom or different necessities. Last, now that we now have built-in SST, we’ll aggressively goal extra acquisitions so as to add to development and scale. We will now go to the following degree.”
About SMARTSolution Technologies, LP
SMARTSolution Technologies, LP (https://smarterguys.com/), a wholly-owned subsidiary of FOMO CORP., is a Pittsburgh, PA–based mostly audiovisual programs integration firm that designs and builds presentation, teleconferencing and collaborative programs for companies, instructional establishments and different nonprofits organizations. SST is a frontrunner in interactive show applied sciences to be used in all kinds of curricula and has been offering interactive options to the schooling expertise marketplace for over 25 years.
About FOMO CORP.
FOMO CORP. (https://www.fomoworldwide.com/) is a publicly traded firm targeted on business incubation and acceleration. The Company invests in and advises rising firms aligned with a development mandate. FOMO is creating direct funding and affiliations – majority- and minority-owned in addition to in three way partnership codecs – that afford targets entry to the general public markets for growth capital in addition to spin-out choices to grow to be their very own stand-alone public firms.
Forward Looking Statements
Statements on this press launch about our future expectations, together with with out limitation, the probability that FOMO CORP. will have the ability to meet minimal gross sales expectations, achieve success and worthwhile available in the market, carry important worth to FOMO CORP.’s stockholders, and leverage capital markets to execute its development technique, represent “forward-looking statements” inside the that means of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that time period is outlined within the Private Litigation Reform Act of 1995. Such forward-looking statements contain dangers and uncertainties and are topic to vary at any time, and our precise outcomes might differ materially from anticipated outcomes. The Company undertakes no obligation to replace or launch any revisions to those forward-looking statements to mirror occasions or circumstances after the date of this assertion or to mirror the prevalence of unanticipated occasions, besides as required by legislation. FOMO’s business technique described on this press launch is topic to innumerable dangers, most importantly, whether or not the Company is profitable in securing enough financing. No data on this press launch ought to be construed in any type form or method as a sign of the Company’s future revenues, monetary situation, or inventory worth.
FOMO Investor Contact
Madison Ryan
VP Investor Relations
(386) 287-6950
[email protected]
https://www.fomoworldwide.com/investor-relations
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