FOMO WORLDWIDE REISSUES 2022 FINANCIAL RESULTS; TO HOLD INVESTOR UPDATE OCTOBER 25TH
Pro forma revenues for fiscal years ended December 31 2020-2021-2022 represent the combination of FOMO WORLDWIDE, INC.’s PCAOB audited standalone results added to audited standalone results of SMARTSolution Technologies, LP and SMARTSolution Technologies, Inc. (together “SST”) as if the SST acquisition had closed on January 1, 2020. Had the SST transaction not closed on January 1, 2020, investors should refer to FOMO WORLDWIDE, INC.’s reported financial results as filed on the SEC’s EDGAR system under Forms 10-Q and 10-K for the respective periods, which reflect the SST acquisition which closed on February 28, 2022. The Company’s reported results reflect significantly higher reported annual revenue growth.
Pittsburgh, PA, Oct. 20, 2023 (GLOBE NEWSWIRE) — FOMO WORLDWIDE, INC. (US OTC: FOMC) today reannounces and clarifies for investors that the Company generated roughly $8.8 million pro forma revenues in 2022 (consolidated and unaudited), up from $4.3 million in 2021 and $3.2 million in 2020, representing annual pro forma growth of 137% and a high double digit % compound annual growth rate (CAGR). On a reported basis, 2022 revenues grew over 1,000% from the prior year. Gains were primarily driven by strong K12 demand. Orders that had been largely unfulfilled due to pandemic closures and supply chain constraints led to record backlog at FOMO’s primary subsidiary SMARTSolution Technologies LP and SMARTSolution Technologies, Inc. (“SST”) acquired on February 28, 2022.
In the period, SST’s equipment sales were roughly $8.3 million (93%), service and installation revenues were roughly $529,000 (6.9%), and shipping and other revenues were roughly $16,000 (0.1%). SST’s 2022 pro forma gross profit was $1.32 million (14.9%), impacted by inventory adjustments. Excluding write-downs and charges of roughly $272,000, SST’s pro forma adjusted gross profit was $1.59 million (18%). SST’s pro forma EBITDA excluding inventory charges, private company audit fees, one time professional fees, and interest expenses, was roughly $648,000 (7.3%). Capital expenditures were minimal and adding back non-recurring items but including interest expense, SST’s 2022 unaudited pro forma unaudited adjusted net income was roughly $267,000. These figures exclude public company expenses and the impact of the rebranding of our clean tech business.
During 2022, SST’s business benefited from its diamond reseller status with its primary vendor, whose lead product is interactive flat panels (IFP’s) commonly referred to in the industry as “Smart Boards”. During the year, SST’s average deal size increased significantly and helped drive revenues to near record levels for a 12 month period. Key wins included an order for over 250 IFP’s from school district in the Pittsburgh Metropolitan area with a total value of $1.3 million. To build its business, SST is broadening its outreach beyond K12 schools. For example, SST recently won business with a fraternal order police department, a large Allegheny County correctional institution, professional sports franchises in the city, healthcare and pharmaceutical companies, a Big East university, and other post-secondary institutions. Evolution of order flow beyond K12 is critical to success at SST as the business exits 2022 and looks to accelerate growth and improve profitability. The Company is also looking to cross-sell clean technologies, aquaponics, digital signage, and other products to diversify its revenue mix.
FOMO HOUR To Be Held October 25th at 5:00pm ET
For further information, please see the investor sponsored FOMO WORLDWIDE, INC. Discord under “FOMO HOUR” @ https://discord.gg/uKMkc6XY5F. Transcripts of prior weeks’ events are filed with the SEC on Form 8-K at www.sec.gov. The Company will host an investor meeting next Wednesday October 25th at 5:00pm to update investors on its progress and organic and acquisitive growth strategy, including its recently activated subsidiary Diamond Technology Solutions, LLC.
About FOMO WORLDWIDE, INC.
FOMO WORLDWIDE, INC. (https://www.fomoworldwide.com/) is a publicly traded company focused on business incubation and acceleration. The Company invests in and advises emerging companies aligned with a growth mandate. FOMO is developing direct investment and affiliations – majority- and minority-owned as well as in joint venture formats – that afford targets access to the public markets for expansion capital as well as spin-out options to become their own stand-alone public companies.
About SMARTSolution Technologies, Inc.
SMARTSolution Technologies, Inc. (https://smarterguys.com/), a wholly owned subsidiary of FOMO WORLDWIDE, INC., is a Pittsburgh, PA–based audiovisual systems integration company that designs and builds presentation, teleconferencing and collaborative systems for businesses, education, and nonprofits including almost 200 school districts with hundreds of buildings and 200,000 students. SST is a leader in interactive display technologies for use in all types of curriculums and has been providing education technology solutions for over 27 years.
About CLEANSolution Technologies
CLEANSolution Technologies (https://www.cleansolutiontech.com/), also doing business as Energy Intelligence Center LLC, a wholly owned subsidiary of FOMO WORLDWIDE, INC., has over 10 years of experience in clean technology and energy efficiency technologies. CST offers clean air disinfection, LED retrofit, and HVAC management technologies and services with a focus on promoting clean air and higher energy efficiency levels in multi-family, commercial, and industrial buildings.
Forward Looking Statements:
Statements in this press release about our future expectations, including without limitation, the likelihood that FOMO WORLDWIDE, INC. will be able to meet minimum sales expectations, be successful and profitable in the market, bring significant value to FOMO’s stockholders, and leverage capital markets to execute its growth strategy, constitute “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 as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. FOMO’s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing. Additionally, although the Company has announced letters of intent to acquire additional companies, there is absolutely no assurances that any such transactions will result in a completed acquisition. No information in this press release should be construed in any form, shape, or manner as an indication of the Company’s future revenues, financial condition, or stock price.
FOMO WORLDWIDE, INC.