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Information Analysis Incorporated Reports Profitable Second Quarter Results

FAIRFAX, VA / ACCESSWIRE / August 14, 2017 / Information Analysis Incorporated (OTC PINK: IAIC) (the "Company") reported results for its second fiscal quarter ended June 30, 2017. Revenues for the three months ended June 30, 2017, were $4,056,000 compared to $1,823,000 reported in the same period in 2016. The Company reported net income of $89,000, or $0.01 per share, compared to a net loss of $146,000, or ($0.01) per share, in 2016.

Revenues for the six months ended June 30, 2017, were $5,538,000 compared to $3,291,000 reported in the same period in 2016. The Company reported net income of $57,000, or $0.00 per share, compared to a net loss of $356,000, or ($0.03) per share, in 2016.

"The Company's professional services revenue has increased greater than 30% over last year, which is the most significant factor contributing to our increase in profitability," Sandor Rosenberg, Chairman and Chief Executive Officer of IAI said. "We continue to aggressively pursue the modernization and forms businesses, and have been awarded a number of new contracts in the last quarter. We see an increase in business opportunities overall in the government space and expect to remain profitable during the second half of the year."

"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.

For additional information contact:

Richard S. DeRose (703) 293-7901

INFORMATION ANALYSIS INCORPORATED
CONDENSED STATEMENTS OF OPERATIONS

Three months ended
June 30,
(in thousands, except per share data; unaudited)
2017
2016
Revenue:
Professional fees
$
1,271
$
929
Software sales
2,785
894
Total revenue
4,056
1,823
Cost of goods sold and services provided:
Cost of professional fees
679
492
Cost of software sales
2,740
805
Total cost of sales
3,419
1,297
Gross margin
637
526
Operating expenses:
Selling, general and administrative expenses
550
674
Operating income (loss)
87
(148
)
Other income
2
2
Income (loss) before income taxes
89
(146
)
Provision for income taxes
-
-
Net income (loss)
$
89
$
(146
)
Net income (loss) per share:
Basic
$
0.01
$
(0.01
)
Diluted
$
0.01
$
(0.01
)
Shares used in calculating earnings per share:
Basic
11,201,760
11,201,760
Diluted
11,544,756
11,201,760

INFORMATION ANALYSIS INCORPORATED
CONDENSED STATEMENTS OF OPERATIONS

Six months ended
June 30,
(in thousands, except per share data; unaudited)
2017
2016
Revenue:
Professional fees
$
2,292
$
1,769
Software sales
3,246
1,522
Total revenues
5,538
3,291
Cost of goods sold and services provided:
Cost of professional fees
1,214
1,041
Cost of software sales
3,187
1,367
Total cost of sales
4,401
2,408
Gross margin
1,137
883
Operating expenses:
Selling, general and administrative expenses
1,084
1,244
Income (loss) from operations
53
(361
)
Other income
4
5
Income (loss) before income taxes
57
(356
)
Provision for income taxes
-
-
Net income (loss)
$
57
$
(356
)
Net income (loss) per share:
Basic
$
0.01
$
(0.03
)
Diluted
$
0.00
$
(0.03
)
Shares used in calculating earnings per share:
Basic
11,201,760
11,201,760
Diluted
11,508,431
11,201,760

INFORMATION ANALYSIS INCORPORATED
BALANCE SHEETS

As of June 30,
2017
As of December 31,
2016
(in thousands, unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
1,967
$
1,895
Accounts receivable, net
736
1,157
Prepaid expenses
228
664
Notes receivable (current portion)
3
3
Total current assets
2,934
3,719
Fixed assets, net
17
27
Other assets
6
6
Total assets
$
2,957
$
3,752
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
73
$
49
Commissions payable
783
853
Deferred revenue
108
615
Accrued payroll and related liabilities
255
207
Other accrued liabilities
49
396
Total liabilities
1,268
2,120
Common stock, par value $0.01, 30,000,000 shares authorized;
12,844,376 shares issued, 11,201,760 shares outstanding
128
128
Additional paid-in capital
14,631
14,631
Accumulated deficit
(12,140
)
(12,197
)
Less treasury stock, 1,642,616 shares at cost
(930
)
(930
)
Total stockholders' equity
1,689
1,632
Total liabilities and stockholders' equity
$
2,957
$
3,752

SOURCE: Information Analysis Incorporated