Exhibit 99.1

 

 

 

For additional information contact:

Matt Sands 

(703) 293-7925

   
  For release: November 16, 2020

 

Information Analysis Incorporated Returns to Profitability with Momentum

 

 

 

FAIRFAX, VIRGINIA – Information Analysis Incorporated (IAIC:OTC MARKETS) today reported results for the three months and nine months ended September 30, 2020.

 

 The information technology services company’s 2020 third quarter revenues were $3,923,000, an increase of 23% over its 2019 third quarter revenues of $3,183,000. IAI’s net income was $215,000 versus a net loss of ($179,000) for the same period in 2019. Basic and diluted earnings per share were $0.02 for the quarter versus basic and diluted net loss per share of ($0.02) in 2019.

 

For the nine months ended September 30, 2020, revenues were $10,804,000, an increase of $2,738,000, or 34%, over its 2019 nine months revenues of $8,066,000. IAI produced net income of $54,000 in 2020 versus a net loss of ($579,000) in 2019. Basic and diluted earnings per share were $0.00 for the nine months versus basic and diluted net loss per share of ($0.05) in 2019.

 

Sandor Rosenberg, President and Chief Executive Officer of IAI, credits Stan Reese, Senior Vice President and Chief Operating Officer, for the 2020 turnaround due to the new contracts he has won and the excellent team he has assembled.

 

“In the third quarter we completely reversed our losses from the first half of the year,” Reese said. “Since May, we have increased our billable workforce by over 80% under new long-term, large-scale contracts. We anticipate that these contracts will provide a solid foundation of revenue and profitability for the foreseeable future. This has allowed us to shift our focus from maintaining operations to meaningful growth for 2021 and beyond.

 

“Our capabilities when it comes to modernizing legacy systems such as COBOL-based systems, no matter how large, we believe are second to none. We now turn our attention to investments in corporate infrastructure and business development. Pursuit of strategic partnerships with synergistic emerging technology companies, as well as merger & acquisition opportunities, are also part of our plans.”

 

Reese further commented, “While COBOL-related legacy system modernization is expected to remain a core competency, we recognize that expanding our service and product offerings is necessary to carry us through the new decade. We believe that our extensive roster of satisfied clients could prove appealing to prospective partners in high-growth fields such as cloud services and cyber security. We remain excited about the Company’s future for the long-term benefit of our shareholders.”

 

 

 

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Information Analysis Inc. Returns to Profitability

November 16, 2020

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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.

 

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Information Analysis Inc. Returns to Profitability

November 16, 2020

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Information Analysis Incorporated

Statements of Operations

 

   

Three Months ended September 30,

 

(in thousands, except per share data; unaudited)

 

2020

   

2019

 

Revenues:

               

Professional fees

  $ 1,581     $ 889  

Software sales

    2,342       2,294  

Total revenues

    3,923       3,183  
                 

Cost of revenues:

               

Cost of professional fees

    1,051       564  

Cost of software sales

    2,258       2,235  

Total cost revenues

    3,309       2,799  
                 

Gross profit

    614       384  
                 

Selling, general and administrative expense

    343       468  

Commissions expense

    56       98  
                 

Income (loss) from operations

    215       (182 )
                 

Other income

    -       3  
                 

Income (loss) before income taxes

    215       (179 )
                 

Net income (loss)

  $ 215     $ (179 )
                 

Net income (loss) per share:

               

Basic

  $ 0.02     $ (0.02 )

Diluted

  $ 0.02     $ (0.02 )
                 

Weighted average common shares outstanding:

               

Basic

    11,211,760       11,211,760  

Diluted

    11,837,427       11,211,760  

 

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November 16, 2020

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Information Analysis Incorporated

Statements of Operations

 

   

Nine Months ended September 30,

 

(in thousands, except per share data; unaudited)

 

2020

   

2019

 

Revenues:

               

Professional fees

  $ 3,354     $ 2,412  

Software sales

    7,450       5,654  

Total revenues

    10,804       8,066  
                 

Cost of revenues:

               

Cost of professional fees

    2,233       1,445  

Cost of software sales

    7,289       5,557  

Total cost revenues

    9,522       7,002  
                 

Gross profit

    1,282       1,064  
                 

Selling, general and administrative expense

    1,050       1,482  

Commissions expense

    179       169  
                 

Income (loss) from operations

    53       (587 )
                 

Other income

    1       8  
                 

Income (loss) before income taxes

    54       (579 )
                 

Net income (loss)

  $ 54     $ (579 )
                 

Net income (loss) per share:

               

Basic

  $ 0.00     $ (0.05 )

Diluted

  $ 0.00     $ (0.05 )
                 

Weighted average common shares outstanding:

               

Basic

    11,211,760       11,207,145  

Diluted

    11,810,392       11,207,145  

 

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November 16, 2020

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Information Analysis Incorporated Balance Sheets

 

   

As of

   

As of

 
   

September 30, 2020

    December 31, 2019  

(in thousands)

 

(unaudited)

   

(audited)

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 1,469     $ 1,039  

Accounts receivable

    1,600       669  

Prepaid expenses

    39       500  

Total current assets

    3,108       2,208  
                 

Contract assets

    89       -  

Right-of-use operating lease asset

    77       150  

Fixed assets, net

    62       10  

Other assets

    6       6  

Total assets

  $ 3,342     $ 2,374  
                 
                 

LIABILITIES & STOCKHOLDERS' EQUITY

               

Current liabilities:

               

Accounts payable

  $ 533     $ 216  

Contract liabilities

    332       464  

Accrued payroll and related liabilities

    316       220  

Other accrued liabilities

    296       54  

Commissions payable

    119       108  

Operating lease liability – current

    73       104  

Note payable – current

    37       -  

Total current liabilities

    1,706       1,166  
                 

Note payable – non-current

    413       -  

Operating lease liability – non-current

    -       46  

Total liabilities

    2,119       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 September 30, 2020, and December 31, 2019

    128       128  

Additional paid in capital

    14,690       14,683  

Accumulated deficit

    (12,665 )     (12,719 )

Less treasury stock; 1,642,616 shares at cost

    (930 )     (930 )

Total stockholders' equity

    1,223       1,162  

Total liabilities and stockholders' equity

  $ 3,342     $ 2,374  

 

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