Information Analysis Inc Releases 2020 Results

Company continues profitable growth

Fairfax, Virginia, UNITED STATES


FAIRFAX, Va., Feb. 17, 2021 (GLOBE NEWSWIRE) -- Information Analysis Incorporated (OTCQB:  IAIC) today released its results for its fourth quarter and year ended December 31, 2020. 

For the year ended December 31, 2020, revenues were $13,903,000, an increase of $3,738,000, or 37%, over its 2019 revenues of $10,165,000.  Net income was $413,000 in 2020 versus a net loss of ($717,000) in 2019, a difference of $1,130,000.  Basic and diluted earnings per share were $0.04 and $0.03, respectively, for 2020, versus basic and diluted net loss per share of ($0.06) in 2019. 

The improvement in 2020 was primarily attributable to our performance in the fourth quarter of 2020. Fourth quarter 2020 revenues were $3,099,000, an increase of $1,000,000, or 48%, over its 2019 fourth quarter revenues of $2,099,000.  Net income was $360,000 versus a net loss of ($139,000) for the same period in 2019, a difference of $499,000. 

“We significantly accelerated our business in 2020, delivering our highest annual revenues since the mid-1990’s, while expanding gross margin and increasing net income,” said Stan Reese, IAI’s CEO. “Our 2021 financial outlook highlights the strength of our services and product portfolios and robust demand for modernizing mainframe applications, particularly in the federal government.  We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our vision for both the services and products roadmaps.” 

“Our earnings and cash flow are solid, we are upgrading and updating our business development processes, and we are bringing much-needed communication, value and, in light of being traded on the OTCQB Market, greater liquidity to our shareholders.  Without losing focus on our core competencies and strategic relationships, we are actively making strides towards such targeted high-growth fields such as cyber security and cloud services.”

With consideration for the investments IAI is making in progressing toward its business plan, and making allowances for unknowns such as the effects of COVID-19, IAI is projecting net income for 2021 of between $1.1 million and $1.2 million.

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 cloud 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.

For additional information contact:
Matt Sands, CFO
msands@infoa.com
(703) 293-7925

 
Information Analysis Incorporated
Statements of Operations
(unaudited, except where indicated)
 
 Three months ended December 31, Year ended December 31,
(in thousands, except per share data) 2020  2019   2020  2019 
       (audited)
Revenues       
Professional fees$2,174 $831  $5,527 $3,244 
Software sales 925  1,268   8,376  6,921 
Total revenues 3,099  2,099   13,903  10,165 
        
Cost of revenues       
Cost of professional fees 1,334  536   3,566  1,981 
Cost of software sales 838  1,227   8,128  6,784 
Total cost of revenues 2,172  1,763   11,694  8,765 
        
Gross profit 927  336   2,209  1,400 
        
Selling, general, and administrative expenses 454  394   1,504  1,875 
Commission expense 114  83   293  253 
        
Income (loss) from operations 359  (141)  412  (728)
        
Other income, net 1  2   1  11 
        
Income before provision for       
Income taxes$360 $(139) $413 $(717)
        
Net income (loss)$360 $(139) $413 $(717)
        
Net income (loss) per share:       
Basic$0.03 $(0.01) $0.04 $(0.06)
Diluted$0.03 $(0.01) $0.03 $(0.06)
        
Weighted average common shares       
Outstanding:       
Basic 11,255,782  11,211,760   11,222,826  11,208,308 
Diluted 12,161,763  11,211,760   12,049,322  11,208,308 
              


 
Information Analysis Incorporated
Balance Sheets
 
 As of:
 December 31,
  2020   2019 
(in thousands, except per share data)(unaudited) (audited)
    
ASSETS:   
Current assets   
Cash and cash equivalents$1,858  $1.039 
Accounts receivable 1,442   669 
Prepaid expenses and other current assets 143   500 
Total current assets 3,443   2.208 
    
Contract assets 211   - 
Property and equipment, net 62   10 
Right-of-use operating lease asset 51   150 
Other assets 6   6 
Total assets$3,773  $2.374 
    
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current liabilities   
Accounts payable$104  $216 
Contract liabilities 947   464 
Accrued payroll and related liabilities 375   220 
Commissions payable 182   108 
Other accrued liabilities 57   54 
Operating lease liability current portion 45   104 
Total current liabilities 1,710   1,166 
    
Note payable 450   - 
Operating lease liability non-current portion -   46 
    
Total liabilities 2,160   1,212 
    
Stockholders’ equity   
Common stock, $0.01 par value, 30,000,000 shares   
authorized, 12,904,376 and 12,854,376 shares   
issued, 11,261,760 and 11,211,760 shares outstanding   
as of December 31, 2020, and 2019, respectively 129   128 
Additional paid-in capital 14,720   14,683 
Accumulated deficit (12,306)  (12,719)
Treasury stock, 1,642,616 shares at cost at   
December 31, 2020 and 2019 (930)  (930)
Total stockholders’ equity 1,613   1,162 
    
Total liabilities and stockholders’ equity$3,773  $2,374