Information Analysis Inc Releases First Quarter 2021 Results

Fairfax, Virginia, UNITED STATES


Revenues Improve 65.9%; Diluted EPS of $0.02

Key Acquisition of Tellenger, Inc. Completed Subsequent to Quarter End

FAIRFAX, Va., May 14, 2021 (GLOBE NEWSWIRE) --  Information Analysis Incorporated (OTCQB: IAIC) today reported its results for the first quarter ended March 31, 2021.
        
For the first quarter ended March 31, 2021, revenues were $3,419,580, an increase of 65.9%, over prior period revenues of $2,061,756. Net income was $270,815 in the first quarter of 2021 versus a net loss of ($126,339) for the comparable period in 2020, an improvement of $397,154. Basic and diluted earnings per share were $0.02 for the first quarter of 2021, versus basic and diluted net loss per share of ($0.01) in the prior year period.
        
“After ending 2020 on a high note, we have continued that momentum with our first quarter results. We reported substantial revenue growth, driven by several projects in our Professional Services business, which enabled us to deliver another profitable quarter,” said Stan Reese, IAI’s CEO. "As pleased as I am with our first quarter results, I also know this is just the start. In early April, we announced the acquisition of Tellenger, Inc. This strategic acquisition significantly expands our cybersecurity, cloud, and data analytics capabilities. Tellenger works with both government agencies and private sector clients and is a great fit with our strategy moving forward.   Since closing the acquisition, we have been focused on driving top-line synergies among both of our customer bases.”  

Mr. Reese continued, “We have also added to our Board of Directors, with Jack Johnson joining us during the first quarter and Donald Tringali coming on last week. Jack and Don lend significant experience and acumen to our board and I expect them to be valuable resources as we continue to pursue our growth plan.”         

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 securely 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, 2020 and in other filings with the Securities and Exchange Commission.

For additional information contact:
Jeremy Hellman, CFA
Vice President
The Equity Group
(212) 836-9626

Matt Sands, CFO
msands@infoa.com
(703) 293-7925

Information Analysis Incorporated
Statements of Operations
(unaudited)

       
    For the three months ended March 31,
     2021  2020 
Revenues    
 Professional fees  $2,439,259 $844,403 
 Software sales   980,321  1,217,353 
  Total revenues    3,419,580  2,061,756 
       
Cost of revenues    
 Cost of professional fees   1,467,699  579,631 
 Cost of software sales   932,231  1,203,298 
  Total cost of revenues    2,399,930  1,782,929 
       
Gross profit  1,019,650  278,827 
       
Selling, general and administrative expenses 545,663  340,813 
Commissions expense  134,587  65,621 
Acquisition costs  70,530  - 
       
Income (loss) from operations  268,870  (127,607)
       
Other income, net  1,945  1,268 
       
Income (loss) before provision for income taxes    270,815  (126,339)
       
Provision for income taxes  -  - 
       
Net income (loss) $270,815 $(126,339)
       
Comprehensive income (loss) $270,815 $(126,339)
       
       
       
Net income (loss) per common share - basic$0.02 $(0.01)
       
Net income (loss) per common share - diluted$0.02 $(0.01)
       
Weighted average common shares outstanding   
 Basic   11,282,671  11,211,760 
 Diluted   12,286,216  11,211,760 
       

Information Analysis Incorporated
Balance Sheets

       
   March 31, 2021 December 31, 2020
   (Unaudited) (Audited) 
  ASSETS    
Current assets    
 Cash and cash equivalents$3,015,943  $1,858,160  
 Accounts receivable 1,185,963   1,442,231  
 Prepaid expenses and other current assets 106,294   142,770  
  Total current assets 4,308,200   3,443,161  
       
Contract assets - non-current 342,631   210,688  
Right-of-use operating lease asset 25,911   51,405  
Property and equipment, net of accumulated depreciation    
 and amortization of $317,703 and $312,320 61,395   62,166  
Other assets -   6,281  
  Total assets$4,738,137  $3,773,701  
       
  LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities    
 Accounts payable$192,213  $103,646  
 Revolving line of credit 500,000   -  
 Contract liabilities 455,496   946,884  
 Accrued payroll and related liabilities 421,183   375,168  
 Commissions payable 276,794   181,626  
 Notes payable - current 149,001   93,009  
 Operating lease liability - current 18,363   45,595  
 Other accrued liabilities 8,047   54,274  
 Interest payable 4,583   3,125  
  Total current liabilities 2,025,680   1,803,327  
       
Note payable - non-current 300,999   356,991  
  Total liabilities 2,326,679   2,160,318  
       
Stockholders' equity    
 Common stock, $0.01 par value, 30,000,000 shares authorized,   
   13,260,042 and 12,904,376 shares issued, 11,617,426 and   
   11,261,760 shares outstanding as of March 31, 2021,    
   and December 31, 2020, respectively 132,599   129,043  
 Additional paid-in capital 15,243,769   14,720,065  
 Accumulated deficit (12,034,699)  (12,305,514) 
 Treasury stock, 1,642,616 shares at cost    
   as of March 31, 2021, and December 31, 2020 (930,211)  (930,211) 
  Total stockholders' equity 2,411,458   1,613,383  
       
  Total liabilities and stockholders' equity$4,738,137  $3,773,701