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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