Information Analysis Inc Releases First Quarter 2021 Results

Rhea-AI Summary

Information Analysis Incorporated (OTCQB: IAIC) reported a 65.9% increase in revenues for Q1 2021, totaling $3,419,580 compared to $2,061,756 in Q1 2020. The company achieved a net income of $270,815, marking a significant turnaround from a net loss of ($126,339) in the same quarter last year. Basic and diluted earnings per share were $0.02, compared to a loss of ($0.01) in 2020. Following the quarter, IAIC completed the acquisition of Tellenger, Inc., enhancing its cybersecurity and data analytics offerings.

Positive

• Revenues increased by 65.9%, totaling $3,419,580.
• Net income improved to $270,815 from a loss of ($126,339) year-over-year.
• Basic and diluted EPS of $0.02 compared to a loss of ($0.01) in the prior year.
• Successful acquisition of Tellenger, Inc. enhances cybersecurity and analytics capabilities.

Negative

• None.

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

FAQ

What were IAIC's revenue figures for Q1 2021?

IAIC reported revenues of $3,419,580 for Q1 2021, a 65.9% increase from $2,061,756 in Q1 2020.

What was IAIC's net income for the first quarter of 2021?

IAIC achieved a net income of $270,815 for Q1 2021, compared to a net loss of ($126,339) in Q1 2020.

What is the EPS for IAIC for the first quarter of 2021?

IAIC reported basic and diluted earnings per share of $0.02 for Q1 2021.

What strategic acquisition did IAIC complete recently?

IAIC completed the acquisition of Tellenger, Inc. to enhance its cybersecurity and analytics capabilities.