iCoreConnect Announces Third Quarter Fiscal 2023 Results
iCoreConnect, Inc. (ICCT) announced its third quarter fiscal 2023 results, reporting a 6% increase in total revenue to $2.0 million. The company's Chief Executive Officer, Robert McDermott, highlighted the growth in subscriber base across the dental and healthcare industries. Additionally, iCoreConnect made significant investments in its sales teams and expanded its reach in the dental industry through new product endorsements and an acquisition. The company also launched new solutions to enhance its offerings and streamline workflow. Despite an increase in operating loss, the company remains optimistic about driving growth and closing the year strong.
Positive
6% increase in total revenue to $2.0 million
10% increase in subscription revenue to $1.8 million
Gross Profit Margin of 74.2%
Significant increase in total subscribers to approximately 33,000
Expansion in the dental industry through new product endorsements and an acquisition
Launch of iCoreClaims and iCoreExchange V6.0
Investments in salesforce to drive growth
Negative
Operating loss of $2.4 million, compared to a loss of $1.1 million in the third quarter of 2022
11/20/2023 - 05:00 PM
OCOEE, FL / ACCESSWIRE / November 20, 2023 / iCoreConnect, Inc. (NASDAQ:ICCT) ( "iCore" or the "Company" ) a cloud-based software and technology company focused on increasing workflow productivity and customer profitability through its enterprise and healthcare workflow platform, today announced the results for its third quarter fiscal 2023 ended September 30, 2023.
Robert McDermott, Chief Executive Officer, commented, "In the third quarter, we further expanded our reach and grew our subscriber base across the dental and healthcare industries. We continue to invest in growth initiatives across the business, which includes investments in growing our sales teams, we expect the impact of this to begin to show in the fourth quarter. Additionally, our relationships with state dental associations continued to grow as we landed five new product endorsements across two new states in the quarter." McDermott added, "We continue to see strong demand for our cloud-based SaaS offerings. Our team is working diligently and focused on driving growth across the business as we build upon our momentum and look to close out the year strong."
Highlights for the Third Quarter Ended September 30, 2023
Revenue:
Total revenue of $2.0 million , an increase of 6% compared to revenue of $1.9 million in the prior year period. Subscription revenue of $1.8 million , an increase of 10% compared to the prior year period. The increase in revenue was driven by an increase in subscriptions sales in the core SaaS business. Gross Profit:
Gross Profit Margin of 74.2% , an increase of 2% compared to the prior year period. Operating Loss:
Operating loss of $2.4 million , compared to a loss of $1.1 million in the third quarter of 2022, primarily due to an increase in payroll expenses, other general and administrative expenses, and one-time expenses related to the completion of the merger. Subscribers:
Total Subscribers of approximately 33,000 as of September 30, 2023, an increase of 11,000, or approximately 50% , compared to September 30, 2022. Recent Business Highlights
On August 25, 2023, the Company completed its business combination with FG Merger Corp. and began trading on the Nasdaq (NASDAQ:ICCT) on August 28, 2023. During the third quarter, iCoreConnect increased its position in the dental industry with the addition of five new state dental association endorsements. The Rhode Island Dental Association ("RIDA") endorsed three iCore products during the quarter, while The Arizona Dental Association Perks Partners Program's (or AzDA Perks) endorsed two additional iCore products. In September, the Company acquired the assets of Preferred Dental Services, a provider of dental billing, claims, and insurance management services. The acquisition enhances the Company's offerings and will be leveraged to increase revenue, streamline workflow, free up staff resources, and improve the overall patient experience at the practice level across iCore's existing subscriber base. The acquisition also allows the Company to engage with new potential customers and enter into a new market. The Company launched iCoreClaims, an insurance Revenue Cycle Management (RCM) solution. iCoreClaims streamlines and manages the insurance revenue cycle for customers from start to finish, enhancing profitability and driving efficiencies for the practices. iCore also released iCoreExchange V6.0, a solution that further enhances the features and functionality of its popular HIPAA compliant email product. In the third quarter, iCore made investments to bolster its salesforce with additional sales reps. The Company expects the impact of the continued expansion of the sales team to begin to be seen in the fourth quarter of this year. About iCoreConnect, Inc. (NASDAQ:ICCT)
iCoreConnect, Inc. is a market leading, cloud-based software and technology company focused on increasing workflow productivity and practice profitability through its enterprise and healthcare workflow platform of applications and services. iCoreConnect is most notably known for its innovation in solving healthcare business problems. iCoreConnect's philosophy places a high value on customer feedback, allowing iCoreConnect to respond to the market's needs. iCoreConnect touts a platform of 16 SaaS enterprise solutions and more than 100 product endorsements with state or regional healthcare associations across the United States.
Forward-Looking Statements
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, the Company's ability to grow opportunities within ePrescription and insurance verification, and the Company's ability to continue to expand its reach into medical customers. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ‘believes,' ‘estimates,' ‘anticipates,' ‘expects,' ‘plans,' ‘projects,' ‘intends,' ‘potential,' ‘may,' ‘could,' ‘might,' ‘will,' ‘should,' ‘approximately' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including those discussed under Item 1A. "Risk Factors" in the Company's most recently filed Form 10-K filed with the Securities and Exchange Commission ("SEC") and updated from time to time in its Form 10-Q filings and in its other public filings with the SEC. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
Investor Contacts:
Davis Snyder or Nick NelsonICCT@alpha-ir.com
iCoreConnect Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)
Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2023 2022 2023 2022 Revenue, net
$ 2,004,853 $ 1,888,768 $ 5,701,372 $ 5,943,818 Cost of sales
517,875 517,660 1,493,357 1,773,173 Gross profit
1,486,978 1,371,108 4,208,015 4,170,645 Expenses
Selling, general and administrative
3,589,655 2,151,651 9,189,829 6,445,585 Depreciation and amortization
320,427 286,622 900,936 1,000,722 Total operating expenses
3,910,082 2,438,273 10,090,765 7,446,307 Loss from operations
(2,423,104 ) (1,067,165 ) (5,882,750 ) (3,275,662 ) Other income (expense)
Interest expense
(478,437 ) (216,523 ) (1,007,120 ) (561,395 ) Finance charges
(370,852 ) (14,888 ) (792,930 ) (400,888 ) Change in fair value of forward purchase agreement
(419,407 ) - (419,407 ) - Other income (expense)
- (103,400 ) 13,778 (193,393 ) Total other expense, net
(1,268,696 ) (334,811 ) (2,205,679 ) (1,155,676 ) Net loss
$ (3,691,800 ) $ (1,401,976 ) $ (8,088,429 ) $ (4,431,338 )
Preferred dividend
(218,516 ) - (218,516 ) -
Net loss attributable to common stockholders
$ (3,910,316 ) $ (1,401,976 ) $ (8,306,945 ) $ (4,431,338 )
Net loss per share available to common stockholders, basic and diluted
$ (0.54 ) $ (0.24 ) $ (1.23 ) $ (0.77 ) Weighted average number of shares, basic and diluted
7,260,195 5,777,806 6,744,143 5,762,324
iCoreConnect Inc. CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2023 (UNAUDITED) AND DECEMBER 31, 2022
September 30, December 31, 2023 2022 ASSETS
(unaudited) Cash
$ 457,389 $ 196,153 Accounts receivable, net
597,658 414,809 Prepaid expenses and other current assets
963,779 480,706 Total current assets
2,018,826 1,091,668 Property and equipment, net
200,450 74,194 Right of use lease asset - operating
1,182,810 944,487 Software development costs, net
779,725 531,061 Acquired technology, net
16,783 79,428 Customer relationships, net
3,343,919 2,350,380 Forward purchase agreement
7,377,265 - Goodwill
1,484,966 1,484,966 Total long-term assets
14,385,918 5,464,516
TOTAL ASSETS
$ 16,404,744 $ 6,556,184
LIABILITIES AND STOCKHOLDERS' DEFICIT
Accounts payable and accrued expenses
$ 4,947,916 $ 2,336,174 Operating lease liability, current portion
243,187 169,417 Notes payable, current portion
3,695,428 4,279,531 Deferred revenue
111,531 13,847 Total current liabilities
8,998,062 6,798,969
Long-term debt, net of current maturities
- 1,449,261 Operating lease liability, net of current portion
1,002,234 809,458 Total long-term liabilities
1,002,234 2,258,719
TOTAL LIABILITIES
$ 10,000,296 $ 9,057,688
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock par value $0.00 01; 40,000,000 shares authorized; Issued and Outstanding: 3,617,651 as of September 30, 2023 and 0 as of December 31, 2022
362 - Common Stock par value $0.00 01; 100,000,000 shares authorized; Issued and Outstanding: 8,373,132 as of September 30, 2023 and 6,076,078 as of December 31, 2022
838 608 Additional paid-in-capital
113,828,297 80,359,848 Accumulated deficit
(107,425,049 ) (82,861,960 ) TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
6,404,448 (2,501,504 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
$ 16,404,744 $ 6,556,184
iCoreConnect Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (UNAUDITED)
September 30, September 30,
2023 2022
(unaudited) (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$ (8,306,945 ) $ (4,431,338 ) Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense
13,753 16,788 Amortization expense
887,183 983,934 Finance fee
792,930 425,846 Change in allowance for doubtful accounts
130,439 137,676 Gain on sale of assets
(13,778 ) - Stock compensation expense
1,434,900 783,514 Non-cash interest expense
720,357 217,434 Change in fair value of forward purchase agreement
419,407 - Preferred dividend
218,516 - Changes in operating assets and liabilities:
Accounts receivable
(313,288 ) (13,759 ) Prepaid expenses and other current assets
(483,073 ) (56,064 ) Right of use asset, net of lease liability
28,223 26,533 Accounts payable and accrued expenses
2,611,741 238,841 Deferred revenue
97,684 (5,096 ) NET CASH USED IN OPERATING ACTIVITIES
(1,761,951 ) (1,675,691 )
INVESTING ACTIVITIES
Purchase of customer list
(1,559,145 ) - Sale of capital assets
28,000 - Purchase of forward purchase agreement
(7,796,672 ) - Purchase of capital assets
(154,231 ) - Additions to capitalized software
(507,596 ) (200,947 ) NET CASH USED IN INVESTING ACTIVITIES
(9,989,644 ) (200,947 )
FINANCING ACTIVITES
Net proceeds from debt
3,733,011 3,450,000 Payments on debt
(6,486,732 ) (1,809,713 ) Proceeds from issuance of common stock
540,000 350,000 Purchase of common stock warrants
- (45,000 ) Stock issued for conversion of convertible debt
5,747,497 22,387 Proceeds from issuance of preferred stock
18,312,298 Effect of merger, net of transaction costs
(9,833,243 )
NET CASH PROVIDED BY FINANCING ACTIVITIES
12,012,831 1,967,674
NET CHANGE IN CASH
261,236 91,036 CASH AT BEGINNING OF THE PERIOD
196,153 71,807 CASH AT END OF THE PERIOD
$ 457,389 $ 162,843
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest
$ 348,941 $ 529,325
SOURCE: iCoreConnect Inc.
https://www.accesswire.com/807331/icoreconnect-announces-third-quarter-fiscal-2023-results
What are iCoreConnect's third quarter fiscal 2023 results?
iCoreConnect reported a 6% increase in total revenue to $2.0 million and a 10% increase in subscription revenue to $1.8 million.
What were the highlights of iCoreConnect's third quarter performance?
The company saw a significant increase in total subscribers to approximately 33,000 and expanded its reach in the dental industry through new product endorsements and an acquisition.
What new solutions did iCoreConnect launch in the third quarter?
iCoreConnect launched iCoreClaims, an insurance Revenue Cycle Management (RCM) solution, and iCoreExchange V6.0, a solution that further enhances the features and functionality of its popular HIPAA compliant email product.
What investments did iCoreConnect make in the third quarter?
iCoreConnect made investments to bolster its salesforce with additional sales reps to drive growth.
What caused the increase in operating loss for iCoreConnect?
The increase in operating loss to $2.4 million, compared to a loss of $1.1 million in the third quarter of 2022, was primarily due to an increase in payroll expenses, other general and administrative expenses, and one-time expenses related to the completion of the merger.
