Q3 2016 - $40K Net Revenue
Q3 2017 - $1.2M Net Revenue
Q2 2018 - $3.42M Net Revenue Preliminary
Q3 2018 - $7M Net Revenue Projected
Good progress and turnaround
Position
On July 12, 2017, the Company announced plans to spin off its Advanced Molecular Services Group ("AMSG") as an independent publicly traded company by way of a tax-free distribution to Rennova stockholders. While this spin off has not been completed at the end of September 2017 as originally planned there is no change in the plan to do so. Completion of this spin off is subject to numerous conditions, including effectiveness of a Registration Statement on Form 10 to be filed with the Securities and Exchange Commission and consents, including those under various funding agreements previously entered by Rennova. The strategic goal of the spinoff is to create two public companies, each of which can focus on its own strengths and operational plans. In addition, after the spinoff, each company will provide a distinct and targeted investment opportunity.
Financial Results
Net revenues for the third quarter of 2017 were $1.4 million, compared with $41,362 for the third quarter of 2016. The increase was mainly due to the recognition of $0.6 million in revenues in the Hospital segment derived from the opening of the Big South Fork Medical Center in August 2017, and $0.6 million in revenues from the Clinical Laboratory Operations segment. Net revenues in the Company's Supportive Software Solutions were $0.2 million for the third quarter of 2017, an increase of $0.2 million compared with the same period a year ago.
Direct costs of revenue were $309,000, essentially unchanged from the third quarter of 2016
