iaic_ex991.htm

FAIRFAX, VIRGINIA – Information Analysis Incorporated. (IAIC:OTCBB) today reported results for the year ended December 31, 2015. Revenues were up 7% to $6,214,000, compared to revenues of $5,784,000 for the same period in 2014. The information technology services company reported net income of $78,000, or $0.01 per share basic and diluted, compared to a net loss of $30,000, or $(0.00) per share basic and diluted, reported for the comparable 2014 period.

“In 2015, the Company remained profitable in spite of government budget cuts. We are adding initiatives in new areas, such as cyber security, mobile applications, and more generalized user applications using Adobe products for our solutions sets in order to increase our business base,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “In addition, we are making investments in marketing and sales in both the commercial market as well as in the government sector. We have been aggressively pursuing new business opportunities through the bidding process for prime contracts and teaming with our partners.”

Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology product and services company. The Company is a web application and e-business solutions provider, as well as a software conversion specialist, modernizing legacy systems and extending their reach to the internet and more modern platforms.

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, 2015 and in other filings with the Securities and Exchange Commission.

	Year ended December 31,
(in thousands, except per share data; audited)	2015		2014
Revenue:
Professional fees	$	4,659	$	3,707
Software sales		1,556		2,077
Total revenue		6,215		5,784
Cost of goods sold and services provided:
Cost of professional fees		2,547		2,178
Cost of software sales		1,295		1,218
Total cost of sales		3,842		3,396
Gross margin		2,373		2,388
Selling, general and administrative expense		1,749		1,688
Commissions expense		556		740
Income (loss) from operations		68		(40	)
Other income, net		10		10
Income (loss) before income taxes		78		(30	)
Net income (loss)	$	78	$	(30	)

Earnings (loss) per share:
Basic	$	0.01	$	0.00
Diluted	$	0.01	$	0.00

Shares used in calculating earnings (loss) per share:
Basic		11,201,760		11,201,760
Diluted		11,310,387		11,201,760

	As of			As of
	December 31, 2015			December 31, 2014
(in thousands)	(audited)			(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	2,168		$	2,450
Accounts receivable, net		1,298			971
Prepaid expenses		603			760
Note receivable, current		-			4
Total current assets		4,069			4,185

Fixed assets, net		43			54
Note receivable, long-term		-			5
Other assets		6			6
Total assets	$	4,118		$	4,250


LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	65		$	32
Commissions payable		959			1,017
Deferred revenues		581			738
Accrued payroll and related liabilities		261			256
Other accrued liabilities		75			116
Total liabilities		1,941			2,159

Common stock, par value $0.01, 30,000,000 shares authorized;
12,844,376 shares issued, 11,201,760 shares outstanding
as of December 31, 2015 and 2014, respectively		128			128
Additional paid in capital		14,622			14,614
Accumulated deficit		(11,643	)		(11,721	)
Less treasury stock; 1,642,616 shares at cost		(930	)		(930	)
Total stockholders' equity		2,177			2,091
Total liabilities and stockholders' equity	$	4,118		$	4,250