Exhibit 99.1
For additional information contact:
Richard S. DeRose (703) 293-7901
For release:
November 13, 2017
 
Information Analysis Incorporated Reports Profitable Third Quarter Results
 
FAIRFAX, VIRGINIA – Information Analysis Incorporated (OTCBB:IAIC) reported results for its third fiscal quarter ended September 30, 2017. Revenues for the three months ended September 30, 2017, were $ 2,732,000 compared to $2,032,000 reported in the same period in 2016. The Company reported net income of $110,000, or $0.01 per share, compared to a net loss of $57,000, or ($0.01) per share, in 2016.
 
Revenues for the nine months ended September 30, 2017, were $8,270,000 compared to $5,323,000 reported in the same period in 2016, representing a 55% increase in revenue. The Company reported net income of $167,000, or $0.01 per share, compared to a net loss of $413,000, or ($0.04) per share, in 2016.
 
“The Company has made a dedicated effort to renew our focus on legacy system modernization – one of our core competencies,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI, “which has in turn driven an increase in professional services revenue of greater than 35%, and a return to sustainable profitability. In recent months, several large companies have approached IAI to be part of their modernization teams due to IAI’s unique knowledge of legacy systems and unique tools to efficiently and cost-effectively modernize them. We also continue to pursue merger and acquisition opportunities.”
 
With the introduction of recent bipartisan supported federal legislation for IT modernization, the government is expected to be in a position to support and fund programs designed to reduce expenditures for maintaining old and out-of-date legacy systems. Federal agency Chief Information Officers anticipate being empowered to move forward with long-overdue projects that will streamline agency operations and materially reduce costs. Management believes that IAI is well positioned individually and in conjunction with its technology solution partners to take advantage of such modernization initiatives for the foreseeable future.
 
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.
 
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Information Analysis Inc Reports Profitable Second Quarter Results
November 13, 2017
Page 2 of 4
 
Information Analysis Incorporated
Condensed Statements of Operations
 
 
 
Three months ended September 30,
 
(in thousands, except per share data; unaudited)
 
2017
 
 
2016
 
Revenue:
 
 
 
 
 
 
Professional fees
 $1,385 
 $886 
Software sales
  1,347 
  1,146 
Total revenue
  2,732 
  2,032 
Cost of goods sold and services provided:
    
    
Cost of professional fees
  776 
  469 
Cost of software sales
  1,320 
  1,007 
Total cost of sales
  2,096 
  1,476 
Gross profit
  636 
  556 
Selling, general and administrative
  528 
  616 
Operating income (loss)
  108 
  (60)
Other income
  2 
  3 
Income (loss) before income taxes
  110 
  (57)
Provision for income taxes
  -- 
  -- 
Net income (loss)
 $110 
 $(57)
 
    
    
Net income (loss) per share:
    
    
Basic
 $0.01 
 $(0.01)
Diluted
 $0.01 
 $(0.01)
Shares used in calculating earnings per share:
    
    
Basic
  11,201,760 
  11,201,760 
Diluted
  11,510,711 
  11,201,760 
 
 
 
Information Analysis Inc Reports Profitable Second Quarter Results
November 13, 2017
Page 3 of 4
 
Information Analysis Incorporated
Condensed Statements of Operations
 
 
 
Nine months ended September 30,
 
(in thousands, except per share data; unaudited)
 
2017
 
 
2016
 
Revenue:
 
 
 
 
 
 
Professional fees
 $3,677 
 $2,655 
Software sales
  4,593 
  2,668 
Total revenue
  8,270 
  5,323 
Cost of goods sold and services provided:
    
    
Cost of professional fees
  1,991 
  1,509 
Cost of software sales
  4,506 
  2,374 
Total cost of sales
  6,497 
  3,883 
Gross profit
  1,773 
  1,440 
Selling, general and administrative
  1,612 
  1,860 
Income (loss) from operations
  161 
 (420)
Other income
  6 
  7 
Income (loss) before income taxes
  167 
 (413)
Provision for income taxes
  -- 
  -- 
Net income (loss)
 $167 
 $(413)
 
    
    
Net income (loss) per share:
    
    
Basic
 $0.01 
 $(0.04)
Diluted
 $0.01 
 $(0.04)
Shares used in calculating earnings per share:
    
    
Basic
  11,201,760 
  11,201,760 
Diluted
  11,509,202 
  11,201,760 
 
 
 
Information Analysis Inc Reports Profitable Second Quarter Results
November 13, 2017
Page 4 of 4
 
Information Analysis Incorporated
Balance Sheets
 
 
 
As of:
 
 
As of:
 
 
 
September 30, 2017
 
 
December 31, 2016
 
(in thousands, unaudited)
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
     Cash and cash equivalents
 $2,551
 $1,895
     Accounts receivable, net
  1,809
  1,157
     Prepaid expenses
  494
  664
     Notes receivable
  2
  3
          Total current assets
  4,856
  3,719
 
    
    
Fixed assets, net
  14
  27
Other assets
  6
  6
Total assets
 $4,876
 $3,752
 
    
    
LIABILITIES & STOCKHOLDERS' EQUITY
    
    
Current liabilities:
    
    
     Accounts payable
 $958
 $49
     Commissions payable
  758
  853
     Other accrued liabilities
  635
  396
     Deferred revenue
  449
  615
     Accrued payroll and related liabilities
  269
  207
         Total liabilities
  3,069
  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
  14,638
  14,631
Accumulated deficit
  (12,029)
  (12,197)
Less treasury stock; 1,642,616 shares at cost
  (930)
  (930)
         Total stockholders' equity
  1,807
  1,632
Total liabilities and stockholders' equity
 $4,876
 $3,752
 
 
 
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