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IAIC Information Analysis

Filed: 17 Feb 21, 11:35am

Exhibit 99.1

 

Information Analysis Inc Releases 2020 Results

 

Company continues profitable growth

 

FAIRFAX, VA, February 17, 2021 – 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