FOMC .0008
NEWS
FOMO CORP. ANNOUNCES RECORD QUARTER; POSITIONED FOR ACCELERATED GROWTH
Chicago IL, Aug. 15, 2022 (GLOBE NEWSWIRE) -- FOMO CORP. (US OTC: FOMC) announces record second quarter results driven by significant demand for interactive whiteboard and EdTech solutions from K12 schools in Ohio, Pennsylvania, and West Virginia. Additionally, the Company positioned its clean tech business for renewed growth and continued to explore strategic mergers, acquisitions and investments.
Strong 2Q22 Results Illustrate Inflection Point in the Business
In the second quarter ended June 30, 2022, on a consolidated basis, the Company generated revenues of $2.6 million up $2.515 million or 2,959% from $85,000 during the same period in 2021. During the six months ended June 30, 2022, on a consolidated basis, the Company generated $3.9 million top line, up $3.65 million or 1,460% from $250,000 during the prior year’s same period. In the second quarter, the Company turned cash flow positive, significantly improved its liquidity position, and enhanced its working capital profile. Backlog at period end was several million dollars.
The substantial increase in revenues was primarily the result of FOMO’s acquisition of SMARTSolution Technologies, LP (“SST”) at the end of February 2022. SST’s business is now at record levels in the history of the Company, aided by approximately $500 billion of stimulus funding from the Biden Administration to K12 schools under the ESSER funds program (“Elementary Secondary School Emergency Relief”). SST is a diamond channel partner of SMART Technologies of Canada, the world leader in education technology equipment that allows children to participate in the classroom environment whether at school, at home or traveling. K12 schools are currently in a rapid refresh cycle to bring this technology to their districts which represents a sizeable addressable market as SST further penetrates its existing markets and positions to edge out into adjacent territories.
Improved Liquidity Fully Funds the Business
Today, FOMO and its affiliates have in excess of more than $1.1 million cash and accounts receivable of $1.6 million. The Company has an asset backed loan credit line of up to $1.5 million with $1.2 million drawn. A $500,000 purchase order line has been paid down to zero, and the SST business has paid down its vendor line with SMART (Canada) from $1.6 million to several hundred thousand dollars. With projected positive EBITDA in 3Q22, total liquidity stands at over $2 million, fully funding the business.
Targeting Strategic M&A and Investments to Accelerate Growth and Add Scale
To accelerate growth, add scale and improve profitability, FOMO is evaluating numerous potential strategic mergers and acquisitions, investments in technology companies, and new hires to target new verticals and customer sets in edtech and cleantech. For example, the Company has entertained discussions with cleaning services providers supporting enterprise, government and institutional accounts. Other areas of interest include access control providers to K12, post-secondary education and enterprise customers as well as edtech businesses like SST in other regions of the country. Throughout, FOMO is evaluating contractors and individual technicians to support its efforts in its existing portfolio. The volatility in the capital markets has generated numerous leads in this regard, though no definitive agreements are currently in place to consummate a transaction.
Management Commentary
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