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 | ||||||