Information Analysis Inc Releases 2020 Results

Company continues profitable growth

FAIRFAX, Va., Feb. 17, 2021 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (OTCQB:  IAIC) today released its results for its fourth quarter and year ended December 31, 2020. 

For the year ended December 31, 2020, revenues were $13,903,000, an increase of $3,738,000, or 37%, over its 2019 revenues of $10,165,000.  Net income was $413,000 in 2020 versus a net loss of ($717,000) in 2019, a difference of $1,130,000.  Basic and diluted earnings per share were $0.04 and $0.03, respectively, for 2020, versus basic and diluted net loss per share of ($0.06) in 2019. 

The improvement in 2020 was primarily attributable to our performance in the fourth quarter of 2020. Fourth quarter 2020 revenues were $3,099,000, an increase of $1,000,000, or 48%, over its 2019 fourth quarter revenues of $2,099,000.  Net income was $360,000 versus a net loss of ($139,000) for the same period in 2019, a difference of $499,000. 

“We significantly accelerated our business in 2020, delivering our highest annual revenues since the mid-1990’s, while expanding gross margin and increasing net income,” said Stan Reese, IAI’s CEO. “Our 2021 financial outlook highlights the strength of our services and product portfolios and robust demand for modernizing mainframe applications, particularly in the federal government.  We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our vision for both the services and products roadmaps.” 

“Our earnings and cash flow are solid, we are upgrading and updating our business development processes, and we are bringing much-needed communication, value and, in light of being traded on the OTCQB Market, greater liquidity to our shareholders.  Without losing focus on our core competencies and strategic relationships, we are actively making strides towards such targeted high-growth fields such as cyber security and cloud services.”

With consideration for the investments IAI is making in progressing toward its business plan, and making allowances for unknowns such as the effects of COVID-19, IAI is projecting net income for 2021 of between $1.1 million and $1.2 million.

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 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, 2019 and in other filings with the Securities and Exchange Commission.

For additional information contact:
Matt Sands, CFO
msands@infoa.com
(703) 293-7925

 
Information Analysis Incorporated
Statements of Operations
(unaudited, except where indicated)
 
  Three months ended December 31,   Year ended December 31,
(in thousands, except per share data)   2020     2019       2020     2019  
              (audited)
Revenues              
Professional fees $ 2,174   $ 831     $ 5,527   $ 3,244  
Software sales   925     1,268       8,376     6,921  
Total revenues   3,099     2,099       13,903     10,165  
               
Cost of revenues              
Cost of professional fees   1,334     536       3,566     1,981  
Cost of software sales   838     1,227       8,128     6,784  
Total cost of revenues   2,172     1,763       11,694     8,765  
               
Gross profit   927     336       2,209     1,400  
               
Selling, general, and administrative expenses   454     394       1,504     1,875  
Commission expense   114     83       293     253  
               
Income (loss) from operations   359     (141 )     412     (728 )
               
Other income, net   1     2       1     11  
               
Income before provision for              
Income taxes $ 360   $ (139 )   $ 413   $ (717 )
               
Net income (loss) $ 360   $ (139 )   $ 413   $ (717 )
               
Net income (loss) per share:              
Basic $ 0.03   $ (0.01 )   $ 0.04   $ (0.06 )
Diluted $ 0.03   $ (0.01 )   $ 0.03   $ (0.06 )
               
Weighted average common shares              
Outstanding:              
Basic   11,255,782     11,211,760       11,222,826     11,208,308  
Diluted   12,161,763     11,211,760       12,049,322     11,208,308  
                           


 
Information Analysis Incorporated
Balance Sheets
 
  As of:
  December 31,
    2020       2019  
(in thousands, except per share data) (unaudited)   (audited)
       
ASSETS:      
Current assets      
Cash and cash equivalents $ 1,858     $ 1.039  
Accounts receivable   1,442       669  
Prepaid expenses and other current assets   143       500  
Total current assets   3,443       2.208  
       
Contract assets   211       -  
Property and equipment, net   62       10  
Right-of-use operating lease asset   51       150  
Other assets   6       6  
Total assets $ 3,773     $ 2.374  
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities      
Accounts payable $ 104     $ 216  
Contract liabilities   947       464  
Accrued payroll and related liabilities   375       220  
Commissions payable   182       108  
Other accrued liabilities   57       54  
Operating lease liability current portion   45       104  
Total current liabilities   1,710       1,166  
       
Note payable   450       -  
Operating lease liability non-current portion   -       46  
       
Total liabilities   2,160       1,212  
       
Stockholders’ equity      
Common stock, $0.01 par value, 30,000,000 shares      
authorized, 12,904,376 and 12,854,376 shares      
issued, 11,261,760 and 11,211,760 shares outstanding      
as of December 31, 2020, and 2019, respectively   129       128  
Additional paid-in capital   14,720       14,683  
Accumulated deficit   (12,306 )     (12,719 )
Treasury stock, 1,642,616 shares at cost at      
December 31, 2020 and 2019   (930 )     (930 )
Total stockholders’ equity   1,613       1,162  
       
Total liabilities and stockholders’ equity $ 3,773     $ 2,374  

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Source: Information Analysis Incorporated