Quarterly report pursuant to Section 13 or 15(d)

Note 1 - Summary of Significant Accounting Policies

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Note 1 - Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]
1.
Summary of Significant Accounting Policies
 
Organization and Business
 
Founded in
1979,
Information Analysis Incorporated (the “Company”, “we”), to which we sometimes refer as IAI, is in the business of developing and maintaining information technology (IT) systems, modernizing client information systems, and performing professional IT services to government and commercial organizations. We presently concentrate our technology, services and experience to developing web-based and mobile device solutions (including electronic forms conversions), data analytics, and legacy software migration and modernization for various agencies of the federal government. We provide software and services to government and commercial customers throughout the United States, with a concentration in the Washington, D.C. metropolitan area.
 
Unaudited Interim Financial Statements
 
The accompanying unaudited financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form
10
-Q and Article
8
-
03
of Regulation S-
X.
Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited financial statements include all adjustments necessary (which are of a normal and recurring nature) for the fair and
not
misleading presentation of the results of the interim periods presented. These unaudited financial statements should be read in conjunction with our audited financial statements for the year ended
December 31, 2018
included in the Annual Report on Form
10
-K filed by the Company with the SEC on
April 1, 2019 (
the “Annual Report”), as amended. The accompanying
December 31, 2018,
balance sheet was derived from our audited financial statements included in the Annual Report. The results of operations for any interim periods are
not
necessarily indicative of the results of operations for any other interim period or for a full fiscal year.
 
There have been
no
changes in the Company’s significant accounting policies as of
June 30, 2019,
as compared to the significant accounting policies disclosed in Note
1,
"Summary of Significant Accounting Policies" in the Company's Annual Report on Form
10
-K for the fiscal year ended
December 31, 2018,
that was filed with the SEC on
April 1, 2019,
as amended, except as described in Note
3
herein.
 
Use of Estimates and Assumptions
 
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results can, and in many cases will, differ from those estimates. 
 
Income Taxes
 
As of
June 30, 2019,
there have been
no
material changes to the Company’s uncertain tax position disclosures as provided in Note
8
of the Annual Report. Through the filing of its
2018
federal income tax return, the Company has net operating loss carryforwards of approximately
$7.4
million, of which
$5.0
million will expire, if unused, on
December 31, 2019.