Information Analysis Inc. Reports Improving Results in its Second Quarter

Fairfax, Virginia, UNITED STATES


FAIRFAX, Va., Aug. 18, 2020 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (IAIC:OTC PINK) reported on Friday its results for the second quarter and first six months of 2020.

For the second quarter of 2020, revenues increased 30% to $4,819,000, compared to second quarter 2019 revenues of $3,704,000.  The information technology services company reduced its net losses by $174,000, or 83%, and reported a net loss in the second quarter of 2020 of $35,000, or $0.00 per share basic and diluted, versus a net loss in the second quarter of 2019 of $209,000, or ($0.02) per share basic and diluted.

For the first six months of 2020, revenues increased 41% to $6,881,000, compared to second quarter 2019 revenues of $4,883,000.  The company reduced its net losses by $238,000, or 60%, and reported a net loss in the six months ended June 30, 2020, of $161,000, or ($0.01) per share basic and diluted, versus a net loss in the six months ended June 30, 2019, of $399,000, or ($0.04) per share basic and diluted.

“There is no doubt about it - 2019 was a tough year,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “Contracts were expiring in normal course, but every material new contract and subcontract we won was delayed due to protests by companies competing for the business.  Despite managing our offices and employees through ever-changing directives and regulations due to the COVID health emergency, we turned the corner during this second quarter, as the largest of these delayed subcontracts emerged from protest almost a year after it was originally won.  In June we were able to commence a massive modernization effort at a federal agency that could be worth upwards of $25 million over the subcontract’s seven-year term.  With the addition of this effort, we expect our third quarter to be profitable, and we should remain so for the foreseeable future.

“With our recent large-scale modernization successes, especially with regard to aging COBOL-based systems, we are poised to pursue and win opportunities with the federal government, as well as efforts to modernize and enhance state and local data systems and large-scale commercial systems.  We make an excellent teammate when tackling multi-faceted modernization efforts.”

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 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, 2019 and in other filings with the Securities and Exchange Commission.

Information Analysis Incorporated
Statements of Operations

 3 Months ended June 30, 
(in thousands, except per share data; unaudited)2020  2019 
Revenues:     
Professional fees$928  $762 
Software sales3,891  2,942 
Total revenues4,819  3,704 
Cost of revenues:     
Cost of professional fees601  435 
Cost of software sales3,829  2,912 
Total cost revenues4,430  3,347 
Gross profit389  357 
Selling, general and administrative expense366  529 
Commissions expense57  40 
Loss from operations(34) (212)
Other (loss) income(1) 3 
Loss before income taxes(35) (209)
Net loss$(35) $(209)
Net loss per share:     
Basic$0.00  $(0.02)
Diluted$0.00  $(0.02)
      
Weighted average common shares outstanding:     
Basic11,211,760  11,207,804 
Diluted11,211,760  11,207,804 
      

Information Analysis Incorporated
Statements of Operations

 6 Months ended June 30, 
(in thousands, except per share data; unaudited)
2020  2019 
Revenues:     
Professional fees$1,773  $1,524 
Software sales  5,108    3,359 
Total revenues6,881  4,883 
Cost of revenues:     
Cost of professional fees1,181  881 
Cost of software sales  5,032    3,322 
Total cost revenues  6,213    4,203 
Gross profit668  680 
Selling, general and administrative expense707  1,014 
Commissions expense  123    71 
Loss from operations(162) (405)
Other income  1    6 
Loss before income taxes  (161)   (399)
Net loss$  (161) $  (399)
Net loss per share:     
Basic$(0.01) $(0.04)
Diluted$(0.01) $(0.04)
      
Weighted average common shares outstanding:     
Basic11,211,760  11,204,799 
Diluted11,211,760  11,204,799 
      

Information Analysis Incorporated
Balance Sheets

(in thousands)As of
June 30, 2020
(unaudited)
  As of
December 31, 2019
(audited)
 
ASSETS     
Current assets:     
Cash and cash equivalents$961  $1,039 
Accounts receivable, net968  669 
Prepaid expenses  88    500 
Total current assets2,017  2,208 
      
Right-of-use operating lease asset101  150 
Fixed assets, net16  10 
Contract assets14  - 
Other assets  6    6 
Total assets$2,154  $2,374 


LIABILITIES & STOCKHOLDERS' EQUITY     
Current liabilities:     
Accounts payable$176  $216 
Accrued payroll and related liabilities250  220 
Note payable – current149  - 
Commissions payable104  108 
Operating lease liability – current99  104 
Contract liabilities64  464 
Other accrued liabilities8  54 
Interest payable  1    - 
Total current liabilities  851    1,166 
      
Note payable – non-current301  - 
Operating lease liability – non-current-    46 
Total liabilities  1,152    1,212 


Common stock, par value $0.01, 30,000,000 shares authorized;     
12,854,376 shares issued, 11,211,760 shares outstanding
as of June 30, 2020, and December 31, 2019
128  128 
Additional paid in capital14,684  14,683 
Accumulated deficit(12,880) (12,719)
Less treasury stock; 1,642,616 shares at cost(930) (930)
Total stockholders' equity1,002  1,162 
Total liabilities and stockholders' equity$2,154  $2,374 

For additional information contact:
Matt Sands
(703) 293-7925