Exhibit 99.1
| For additional information contact: Richard S. DeRose (703) 293-7901 For release: May 11, 2017 |
Information Analysis, Inc. Reports First Quarter Results
FAIRFAX, VIRGINIA – Information Analysis, Inc. (OTCBB:IAIC) today reported results for the first fiscal quarter ended March 31, 2017. Revenues were $1,482,000 compared to $1,468,000 reported in 2016’s first quarter. The Company reported a net loss of $32,000 or $0.00 per share, compared to a net loss of $210,000, or $0.02 per share, in the first quarter 2016.
“The Company’s losses were down dramatically in the first quarter in comparison to the first quarter of 2016,” Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. “This was due, in large part, to the start-up of a new major contract that we have been pursuing during the past year. As a result we expect to achieve higher revenue and net income in excess of $250,000 for the remainder of the year. We are actively pursuing the system modernization business where we have observed an increase in opportunities in both the government and commercial marketplace.
“We continue to pursue merger and acquisitions opportunities.”
About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is an e-business, web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the Internet world.
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. These include the failure to obtain sufficient contracts, and to profitably complete these contracts. 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.
Information Analysis Incorporated
Condensed Income Statements
| | Three months ended March 31, |
| (in thousands, except per share data; unaudited) | | |
| Net revenue: | | |
| Professional fees | $1,020 | $841 |
| Software sales | 462 | 627 |
| Total revenue | 1,482 | 1,468 |
| Cost of goods sold and services provided: | | |
| Cost of professional fees | 535 | 548 |
| Cost of software sales | 447 | 562 |
| Total cost of sales | 982 | 1,110 |
| Gross margin | 500 | 358 |
| Operating expenses: | | |
| Selling, general and administrative | 534 | 570 |
| Operating loss | (34) | (212) |
| Other income | 2 | 2 |
| Loss before income taxes | (32) | (210) |
| Provision for income taxes | -- | -- |
| Net loss | $(32) | $(210) |
| Net loss per share: | | |
| Basic | $(0.00) | $(0.02) |
| Diluted | $(0.00) | $(0.02) |
| Shares used in calculating earnings per share: | | |
| Basic | 11,201,760 | 11,201,760 |
| Diluted | 11,201,760 | 11,201,760 |
Information Analysis Incorporated
Balance Sheets
| | | |
| | | |
| (in thousands, unaudited) | | |
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $1,763 | $1,895 |
| Accounts receivable, net | 1,055 | 1,157 |
| Prepaid expenses | 433 | 664 |
| Notes receivable (current portion) | 4 | 3 |
| Total current assets | 3,255 | 3,719 |
| | | |
| Fixed assets, net | 22 | 27 |
| Other assets | 6 | 6 |
| Total assets | $3,283 | $3,752 |
| | | |
| LIABILITIES & STOCKHOLDERS' EQUITY | | |
| Current liabilities: | | |
| Accounts payable | $235 | $49 |
| Commissions payable | 817 | 853 |
| Deferred revenue | 365 | 615 |
| Accrued payroll and related liabilities | 226 | 207 |
| Other accrued liabilities | 39 | 396 |
| Total liabilities | 1,682 | 2,120 |
| | | |
| Common stock, par value $0.01, 30,000,000 shares authorized; | | |
| 12,844,376 shares issued, 11,201,760 outstanding | 128 | 128 |
| Additional paid-in capital | 14,631 | 14,631 |
| Accumulated deficit | (12,229) | (12,197) |
| Less treasury stock; 1,642,616 shares at cost | (930) | (930) |
| Total stockholders' equity | 1,601 | 1,632 |
| Total liabilities and stockholders' equity | $3,283 | $3,752 |
