Information Analysis Inc Releases First Quarter 2021 Results

Revenues Improve 65.9%; Diluted EPS of $0.02

Key Acquisition of Tellenger, Inc. Completed Subsequent to Quarter End

FAIRFAX, Va., May 14, 2021 (GLOBE NEWSWIRE) --  Information Analysis Incorporated (OTCQB: IAIC) today reported its results for the first quarter ended March 31, 2021.
        
For the first quarter ended March 31, 2021, revenues were $3,419,580, an increase of 65.9%, over prior period revenues of $2,061,756. Net income was $270,815 in the first quarter of 2021 versus a net loss of ($126,339) for the comparable period in 2020, an improvement of $397,154. Basic and diluted earnings per share were $0.02 for the first quarter of 2021, versus basic and diluted net loss per share of ($0.01) in the prior year period.
        
“After ending 2020 on a high note, we have continued that momentum with our first quarter results. We reported substantial revenue growth, driven by several projects in our Professional Services business, which enabled us to deliver another profitable quarter,” said Stan Reese, IAI’s CEO. "As pleased as I am with our first quarter results, I also know this is just the start. In early April, we announced the acquisition of Tellenger, Inc. This strategic acquisition significantly expands our cybersecurity, cloud, and data analytics capabilities. Tellenger works with both government agencies and private sector clients and is a great fit with our strategy moving forward.   Since closing the acquisition, we have been focused on driving top-line synergies among both of our customer bases.”  

Mr. Reese continued, “We have also added to our Board of Directors, with Jack Johnson joining us during the first quarter and Donald Tringali coming on last week. Jack and Don lend significant experience and acumen to our board and I expect them to be valuable resources as we continue to pursue our growth plan.”         

About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology product and services company. The Company is a software conversion specialist, modernizing legacy systems and securely extending their reach to the cloud and more modern platforms.

Additional information for investors
This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2020 and in other filings with the Securities and Exchange Commission.

For additional information contact:
Jeremy Hellman, CFA
Vice President
The Equity Group
(212) 836-9626

Matt Sands, CFO
msands@infoa.com
(703) 293-7925

Information Analysis Incorporated
Statements of Operations
(unaudited)

             
        For the three months ended March 31,
          2021     2020  
Revenues        
 Professional fees     $ 2,439,259   $ 844,403  
 Software sales       980,321     1,217,353  
  Total revenues         3,419,580     2,061,756  
             
Cost of revenues        
 Cost of professional fees       1,467,699     579,631  
 Cost of software sales       932,231     1,203,298  
  Total cost of revenues         2,399,930     1,782,929  
             
Gross profit     1,019,650     278,827  
             
Selling, general and administrative expenses   545,663     340,813  
Commissions expense     134,587     65,621  
Acquisition costs     70,530     -  
             
Income (loss) from operations     268,870     (127,607 )
             
Other income, net     1,945     1,268  
             
Income (loss) before provision for income taxes         270,815     (126,339 )
             
Provision for income taxes     -     -  
             
Net income (loss)   $ 270,815   $ (126,339 )
             
Comprehensive income (loss)   $ 270,815   $ (126,339 )
             
             
             
Net income (loss) per common share - basic $ 0.02   $ (0.01 )
             
Net income (loss) per common share - diluted $ 0.02   $ (0.01 )
             
Weighted average common shares outstanding      
 Basic       11,282,671     11,211,760  
 Diluted       12,286,216     11,211,760  
             

Information Analysis Incorporated
Balance Sheets

             
      March 31, 2021   December 31, 2020
      (Unaudited)   (Audited)  
    ASSETS        
Current assets        
  Cash and cash equivalents $ 3,015,943     $ 1,858,160    
  Accounts receivable   1,185,963       1,442,231    
  Prepaid expenses and other current assets   106,294       142,770    
    Total current assets   4,308,200       3,443,161    
             
Contract assets - non-current   342,631       210,688    
Right-of-use operating lease asset   25,911       51,405    
Property and equipment, net of accumulated depreciation        
  and amortization of $317,703 and $312,320   61,395       62,166    
Other assets   -       6,281    
    Total assets $ 4,738,137     $ 3,773,701    
             
    LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities        
  Accounts payable $ 192,213     $ 103,646    
  Revolving line of credit   500,000       -    
  Contract liabilities   455,496       946,884    
  Accrued payroll and related liabilities   421,183       375,168    
  Commissions payable   276,794       181,626    
  Notes payable - current   149,001       93,009    
  Operating lease liability - current   18,363       45,595    
  Other accrued liabilities   8,047       54,274    
  Interest payable   4,583       3,125    
    Total current liabilities   2,025,680       1,803,327    
             
Note payable - non-current   300,999       356,991    
    Total liabilities   2,326,679       2,160,318    
             
Stockholders' equity        
  Common stock, $0.01 par value, 30,000,000 shares authorized,      
    13,260,042 and 12,904,376 shares issued, 11,617,426 and      
    11,261,760 shares outstanding as of March 31, 2021,        
    and December 31, 2020, respectively   132,599       129,043    
  Additional paid-in capital   15,243,769       14,720,065    
  Accumulated deficit   (12,034,699 )     (12,305,514 )  
  Treasury stock, 1,642,616 shares at cost        
    as of March 31, 2021, and December 31, 2020   (930,211 )     (930,211 )  
    Total stockholders' equity   2,411,458       1,613,383    
             
    Total liabilities and stockholders' equity $ 4,738,137     $ 3,773,701    
             


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Source: Information Analysis Incorporated