Exhibit 99.1
 
 
For additional information contact:
Richard S. DeRose (703) 293-7901
For release:
May 11, 2017
 
Information Analysis, Inc. Reports First Quarter Results
 
FAIRFAX, VIRGINIA – Information Analysis, Inc. (OTCBB:IAIC) today reported results for the first fiscal quarter ended March 31, 2017. Revenues were $1,482,000 compared to $1,468,000 reported in 2016’s first quarter. The Company reported a net loss of $32,000 or $0.00 per share, compared to a net loss of $210,000, or $0.02 per share, in the first quarter 2016.
 
“The Company’s losses were down dramatically in the first quarter in comparison to the first quarter of 2016,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “This was due, in large part, to the start-up of a new major contract that we have been pursuing during the past year. As a result we expect to achieve higher revenue and net income in excess of $250,000 for the remainder of the year. We are actively pursuing the system modernization business where we have observed an increase in opportunities in both the government and commercial marketplace.
 
 “We continue to pursue merger and acquisitions opportunities.”
 
About Information Analysis Incorporated
 
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is an e-business, web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the Internet world.
 
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. These include the failure to obtain sufficient contracts, and to profitably complete these contracts. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2016 and in other filings with the Securities and Exchange Commission.
 
 
 
 
Information Analysis Incorporated
Condensed Income Statements
 
 
 
Three months ended March 31,    
 
(in thousands, except per share data; unaudited)
 
2017
 
 
2016
 
Net revenue:
 
 
 
 
 
 
Professional fees
 $1,020 
 $841 
Software sales
  462 
  627 
Total revenue
  1,482 
  1,468 
Cost of goods sold and services provided:
    
    
Cost of professional fees
  535 
  548 
Cost of software sales
  447 
  562 
Total cost of sales
  982 
  1,110 
Gross margin
  500 
  358 
Operating expenses:
    
    
Selling, general and administrative
  534 
  570 
Operating loss
  (34)
  (212)
Other income
  2 
  2 
Loss before income taxes
  (32)
  (210)
Provision for income taxes
  -- 
  -- 
Net loss
 $(32)
 $(210)
Net loss per share:
    
    
Basic
 $(0.00)
 $(0.02)
Diluted
 $(0.00)
 $(0.02)
Shares used in calculating earnings per share:
    
    
Basic
  11,201,760 
  11,201,760 
Diluted
  11,201,760 
  11,201,760 
 
 
 
 
 
Information Analysis Incorporated
Balance Sheets
 
 
 
As of:
 
 
As of:
 
 
 
31-Mar-17
 
 
31-Dec-16
 
(in thousands, unaudited)
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
     Cash and cash equivalents
 $1,763 
 $1,895 
     Accounts receivable, net
  1,055 
  1,157 
     Prepaid expenses
  433 
  664 
     Notes receivable (current portion)
  4 
  3 
          Total current assets
  3,255 
  3,719 
 
    
    
Fixed assets, net
  22 
  27 
Other assets
  6 
  6 
Total assets
 $3,283 
 $3,752 
 
    
    
LIABILITIES & STOCKHOLDERS' EQUITY
    
    
Current liabilities:
    
    
     Accounts payable
 $235 
 $49 
     Commissions payable
  817 
  853 
     Deferred revenue
  365 
  615 
     Accrued payroll and related liabilities
  226 
  207 
     Other accrued liabilities
  39 
  396 
         Total liabilities
  1,682 
  2,120 
 
    
    
Common stock, par value $0.01, 30,000,000 shares authorized;
    
    
     12,844,376 shares issued, 11,201,760 outstanding
  128 
  128 
Additional paid-in capital
  14,631 
  14,631 
Accumulated deficit
  (12,229)
  (12,197)
Less treasury stock; 1,642,616 shares at cost
  (930)
  (930)
         Total stockholders' equity
  1,601 
  1,632 
Total liabilities and stockholders' equity
 $3,283 
 $3,752