Information Analysis Inc. Reports Improving Results in its Second Quarter

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FAIRFAX, Va., Aug. 18, 2020 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (IAIC:OTC PINK) reported on Friday its results for the second quarter and first six months of 2020.

For the second quarter of 2020, revenues increased 30% to $4,819,000, compared to second quarter 2019 revenues of $3,704,000.  The information technology services company reduced its net losses by $174,000, or 83%, and reported a net loss in the second quarter of 2020 of $35,000, or $0.00 per share basic and diluted, versus a net loss in the second quarter of 2019 of $209,000, or ($0.02) per share basic and diluted.

For the first six months of 2020, revenues increased 41% to $6,881,000, compared to second quarter 2019 revenues of $4,883,000.  The company reduced its net losses by $238,000, or 60%, and reported a net loss in the six months ended June 30, 2020, of $161,000, or ($0.01) per share basic and diluted, versus a net loss in the six months ended June 30, 2019, of $399,000, or ($0.04) per share basic and diluted.

“There is no doubt about it - 2019 was a tough year,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “Contracts were expiring in normal course, but every material new contract and subcontract we won was delayed due to protests by companies competing for the business.  Despite managing our offices and employees through ever-changing directives and regulations due to the COVID health emergency, we turned the corner during this second quarter, as the largest of these delayed subcontracts emerged from protest almost a year after it was originally won.  In June we were able to commence a massive modernization effort at a federal agency that could be worth upwards of $25 million over the subcontract’s seven-year term.  With the addition of this effort, we expect our third quarter to be profitable, and we should remain so for the foreseeable future.

“With our recent large-scale modernization successes, especially with regard to aging COBOL-based systems, we are poised to pursue and win opportunities with the federal government, as well as efforts to modernize and enhance state and local data systems and large-scale commercial systems.  We make an excellent teammate when tackling multi-faceted modernization efforts.”

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 internet 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.

Information Analysis Incorporated
Statements of Operations

  3 Months ended June 30, 
(in thousands, except per share data; unaudited) 2020     2019  
Revenues:          
Professional fees $ 928     $ 762  
Software sales 3,891     2,942  
Total revenues 4,819     3,704  
Cost of revenues:          
Cost of professional fees 601     435  
Cost of software sales 3,829     2,912  
Total cost revenues 4,430     3,347  
Gross profit 389     357  
Selling, general and administrative expense 366     529  
Commissions expense 57     40  
Loss from operations (34 )   (212 )
Other (loss) income (1 )   3  
Loss before income taxes (35 )   (209 )
Net loss $ (35 )   $ (209 )
Net loss per share:          
Basic $ 0.00     $ (0.02 )
Diluted $ 0.00     $ (0.02 )
           
Weighted average common shares outstanding:          
Basic 11,211,760     11,207,804  
Diluted 11,211,760     11,207,804  
           

Information Analysis Incorporated
Statements of Operations

  6 Months ended June 30, 
(in thousands, except per share data; unaudited)
 2020     2019  
Revenues:          
Professional fees $ 1,773     $ 1,524  
Software sales   5,108       3,359  
Total revenues 6,881     4,883  
Cost of revenues:          
Cost of professional fees 1,181     881  
Cost of software sales   5,032       3,322  
Total cost revenues   6,213       4,203  
Gross profit 668     680  
Selling, general and administrative expense 707     1,014  
Commissions expense   123       71  
Loss from operations (162 )   (405 )
Other income   1       6  
Loss before income taxes   (161 )     (399 )
Net loss $   (161 )   $   (399 )
Net loss per share:          
Basic $ (0.01 )   $ (0.04 )
Diluted $ (0.01 )   $ (0.04 )
           
Weighted average common shares outstanding:          
Basic 11,211,760     11,204,799  
Diluted 11,211,760     11,204,799  
           

Information Analysis Incorporated
Balance Sheets

(in thousands) As of
June 30, 2020
(unaudited) 		    As of
December 31, 2019
(audited) 		 
ASSETS          
Current assets:          
Cash and cash equivalents $ 961     $ 1,039  
Accounts receivable, net 968     669  
Prepaid expenses   88       500  
Total current assets 2,017     2,208  
           
Right-of-use operating lease asset 101     150  
Fixed assets, net 16     10  
Contract assets 14     -  
Other assets   6       6  
Total assets $ 2,154     $ 2,374  


LIABILITIES & STOCKHOLDERS' EQUITY          
Current liabilities:          
Accounts payable $ 176     $ 216  
Accrued payroll and related liabilities 250     220  
Note payable – current 149     -  
Commissions payable 104     108  
Operating lease liability – current 99     104  
Contract liabilities 64     464  
Other accrued liabilities 8     54  
Interest payable   1       -  
Total current liabilities   851       1,166  
           
Note payable – non-current 301     -  
Operating lease liability – non-current -       46  
Total liabilities   1,152       1,212  


Common stock, par value $0.01, 30,000,000 shares authorized;          
12,854,376 shares issued, 11,211,760 shares outstanding
as of June 30, 2020, and December 31, 2019		 128     128  
Additional paid in capital 14,684     14,683  
Accumulated deficit (12,880 )   (12,719 )
Less treasury stock; 1,642,616 shares at cost (930 )   (930 )
Total stockholders' equity 1,002     1,162  
Total liabilities and stockholders' equity $ 2,154     $ 2,374  

For additional information contact:
Matt Sands
(703) 293-7925


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Source: Information Analysis Incorporated

Released August 18, 2020