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Information Analysis, Inc. Reports First Quarter Results

FAIRFAX, VA / ACCESSWIRE / May 11, 2017 / Information Analysis, Inc. (OTC PINK: 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)
2017
2016
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

As of:
As of:
March 31, 2017
December 31, 2016
(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

For additional information, contact:

Richard S. DeRose (703) 293-7901

SOURCE: Information Analysis, Inc.