Exhibit 99.1
For additional information contact:
Richard S. DeRose
(703) 293-7901
For release: March 29, 2018
 
Information Analysis Inc. Reports Profitable Results for 2017
 
FAIRFAX, VIRGINIA – Information Analysis Incorporated. (IAIC:OTCBB) today reported results for the year ended December 31, 2017. Revenues were up 58% to $10,641,000, compared to revenues of $6,729,000 for the same period in 2016. The information technology services company reported net income of $246,000, or $0.02 per share basic and diluted, compared to a net loss of $554,000, or $(0.05) per share basic and diluted, reported for the comparable 2016 period.
 
 “In 2017, the Company continued its effort to focus on legacy system modernization,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “This has driven a 48 per cent increase in professional services revenue. 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. Recently, a federal government customer elected to proceed with a needed modernization effort that we have been pursuing for years with a key partner, and we have once again proven ourselves to be able to engineer substantial modernization efforts on time and within budget. We expect that effort to expand into other opportunities.
 
“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 continue to pursue merger and acquisition opportunities.”
 
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 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.
 
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, 2016 and in other filings with the Securities and Exchange Commission.
 
 

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 Information Analysis Incorporated
Statements of Operations
 
 
 
For the years ended December 31,    
 
(in thousands, except per share data)
 
2017
 
 
2016
 
 
 
  (unaudited)
 
 
  (audited)
 
Revenues
 
 
 
 
 
 
Professional fees
 $5,004 
 $3,392 
Software sales
  5,637 
  3,337 
Total revenues
  10,641 
  6,729 
 
    
    
Cost of revenues
    
    
Cost of professional fees
  2,723 
  1,895 
Cost of software sales
  5,502 
  3,011 
Total cost of revenues
  8,225 
  4,906 
 
    
    
Gross profit
  2,416 
  1,823 
 
    
    
Selling, general and administrative expenses
  1,674 
  1,879 
Commissions expense
  504 
  507 
 
    
    
Income (loss) from operations
  238 
  (563)
 
    
    
Other income
  8 
  9 
 
    
    
Income (loss) before income taxes
  246 
  (554)
 
    
    
Net income (loss)
 $246 
 $(554)
 
    
    
Net income (loss) per share:
    
    
Basic
 $0.02 
 $(0.05)
Diluted
 $0.02 
 $(0.05)
 
    
    
Weighted average common shares outstanding
    
    
Basic
  11,201,760 
  11,201,760 
Diluted
  11,583,578 
  11,201,760 

 
 
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 Information Analysis Incorporated
 Balance Sheets
 
 
 
As of
 
 
As of
 
 
 
December 31, 2017
 
 
December 31, 2016
 
(in thousands)
 
(unaudited)
 
 
(audited)
 
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
 $2,731 
 $1,895 
Accounts receivable, net
  616 
  1,157 
Prepaid expenses
  369 
  664 
Note recivable, current
  2 
  3 
Total current assets
  3,718 
  3,719 
 
    
    
Fixed assets, net
  11 
  27 
Other assets
  6 
  6 
Total assets
 $3,735 
 $3,752 
 
    
    
 
    
    
LIABILITIES & STOCKHOLDERS' EQUITY
    
    
Current liabilities
    
    
Accounts payable
 $48 
 $49 
Commissions payable
  713 
  853 
Other accrued liabilities
  411 
  396 
Deferred revenues
  387 
  615 
Accrued payroll and related liabilities
  276 
  207 
Franchise tax payable
  6 
  - 
Total liabilities
  1,841 
  2,120 
 
    
    
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, 2017 and 2016
  128 
  128 
Additional paid-in capital
  14,646 
  14,631 
Accumulated deficit
  (11,950)
  (12,197)
Less treasury stock; 1,642,616 shares at cost
  (930)
  (930)
Total stockholders' equity
  1,894 
  1,632 
 
    
    
Total liabilities and stockholders' equity
 $3,735 
 $3,752 
 
 

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