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Information Analysis Inc Releases First Quarter 2021 Results

·5 min read

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