Exhibit 99.1

 

Information Analysis Inc Releases 2020 Results

 

Company continues profitable growth

 

FAIRFAX, VA, February 17, 2021 – 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