InsPro Technologies Corporation Announces Second Quarter 2019 Financial Results

14 Aug by Vitaliy Dadalyan

InsPro Technologies Corporation Announces Second Quarter 2019 Financial Results

EDDYSTONE, Pa.–(BUSINESS WIRE)–InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading provider of core policy administration software for Group and Individual Life, Health, and Annuity products that enables insurance carriers and third-party administrators to quickly respond to evolving market needs, improve customer service, and reduce operating costs, today announced its financial results for the three and six month period ended June 30, 2019.

Second Quarter 2019 Highlights

  • Revenues were $3,469,681 in the Second Quarter of 2019; a 32% decrease as compared to $5,083,850 in the Second Quarter of 2018. The decrease was the result of the Company having largely completed implementation services to what was our largest client in 2018.
  • Net loss was $694,557 in the Second Quarter of 2019 as compared to net income of $760,490 in the Second Quarter of 2018. Net loss in the Second Quarter of 2019 was unfavorably impacted by lower professional service revenues partially offset by lower employee and IT consulting staffing as compared to the Second Quarter 2018.

First Half 2019 Highlights

  • Revenues were $7,071,281 in the first half of 2019; a 37% decrease as compared to $11,271,597 in the first half of 2018. The decrease was the result of the Company having largely completed implementation services to what was our largest client in 2018.
  • Net loss was $1,445,841 in the first half of 2019 as compared to a net income of $1,689,233 in the first half of 2018. Net loss in the Second Quarter of 2019 was unfavorably impacted by lower professional service revenues partially offset by lower employee and IT consulting staffing as compared to the Second Quarter 2018.

About InsPro Enterprise

InsPro Enterprise, a Life and Health insurance policy administration system, is a single technology solution used to manage all insurance processing requirements supporting multiple product lines as well as hybrid products for both group and individual policies on a single web-based platform. The InsPro Enterprise design provides carriers the option to deploy the solution as an end-to-end straight through processing suite or on a modular, componentized basis to address immediate areas of concern. The InsPro Enterprise suite includes Product Configuration Workbench, New Business and Underwriting, Billing and Collections, Policy Administration, Agent Management and Commissions, Claims, Document Management, Web Portals, and Data Analytics components.

About InsPro Technologies Corporation

Through its subsidiary, InsPro Technologies, LLC, InsPro Technologies Corporation offers InsPro Enterprise, an end-to-end, web-based policy administration system used by insurance carriers and third-party administrators. By managing the entire product and policy lifecycle on a single integrated platform, customers are afforded opportunities to accelerate new product introductions, lower costs, increase customer satisfaction and improve operational performance. InsPro’s solutions are offered through standard software licensing, as a hosted solution, or via Software as a Service (SaaS) delivery.

For additional information on InsPro Technologies, LLC and InsPro Enterprise please visit www.inspro.com.

Forward-Looking Statements

In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding current and future capabilities and products supported, growth in the number of clients, quality and growth potential of our technology platform, including related services, and providing the financial support and other resources needed to demonstrate the strength of this growing technology business and to continue to reinvest in the product. Forward-looking statements provide InsPro Technologies Corporation’s current expectations or forecasts of future events. Moreover, InsPro Technologies Corporation cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in InsPro Technologies’ most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission and available on the Securities and Exchange Commission’s website at www.sec.gov. InsPro Technologies Corporation does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.

INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Month Ending June 30,

For the Six Months Ending June 30,

2019

2018

2019

2018

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

$

3,469,681

$

5,083,850

$

7,071,281

$

11,271,597

Cost of revenues

2,865,785

$

3,520,623

$

6,058,183

$

7,088,148

Gross profit

603,896

1,563,227

1,013,098

4,183,449

Selling, general and administrative expenses

1,261,878

820,052

2,396,936

2,410,307

(Loss) income from operations

(657,982

)

743,175

(1,383,838

)

1,773,142

Other income (expense):
Interest expense

(36,575

)

(6,685

)

(62,003

)

(12,909

)

Total other expense

(36,575

)

(6,685

)

(62,003

)

(12,909

)

(Loss) income before income taxes

(694,557

)

736,490

(1,445,841

)

1,760,233

Provision (benefit) for income taxes

(24,000

)

71,000

Net (loss) income

$

(694,557

)

$

760,490

$

(1,445,841

)

$

1,689,233

Net (loss) income per common share:
Net (loss) income per common share – basic

$

(0.02

)

$

0.02

$

(0.03

)

$

0.04

Net (loss) income per common share – fully diluted

$

(0.02

)

$

$

(0.03

)

$

0.01

Weighted average common shares outstanding – basic

41,673,655

41,543,655

41,673,655

41,543,655

Weighted average common shares outstanding – fully diluted

41,673,655

198,756,395

41,673,655

198,756,395

INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

June 30, 2019

December 31, 2018

(Unaudited)

ASSETS
CURRENT ASSETS:
Cash

$

4,114,053

$

5,100,660

Accounts receivable

2,506,493

3,146,597

Tax receivable

13,000

13,000

Prepaid expenses

492,344

305,643

Total current assets

7,125,890

8,565,900

LONG TERM ASSETS:

Property and equipment, net

1,647,974

594,767

Operating lease right of use asset

858,708

Prepaid assets

203,829

Total long term assets

2,710,510

594,767

Total assets

$

9,836,400

$

9,160,667

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Notes payable

$

28,294

$

39,025

Accounts payable

920,877

1,213,758

Accrued expenses

615,871

905,531

Current portion of finance lease obligations

116,837

115,771

Current portion of equipment loans

825,681

Current portion of operating lease

316,494

Deferred revenue

3,188,011

2,850,976

Income tax payable

141,000

Total current liabilities

6,012,065

5,266,061

LONG TERM LIABILITIES:
Deferred revenue

875,000

875,000

Finance lease obligations

157,598

150,559

Equipment loans

820,067

Operating lease

542,214

Total long term liabilities

2,394,879

1,025,559

Total liabilities

8,406,944

6,291,620

SHAREHOLDERS’ EQUITY:
Preferred stock ($.001 par value; 20,000,000 shares authorized)
Series A convertible preferred stock; 3,437,500 shares designated, 1,270,250 shares issued and outstanding (liquidation value $12,702,500)

1,271

1,271

Series B convertible preferred stock; 11,000,000 shares designated, 5,307,212 shares issued and outstanding (liquidation value $15,921,636)

5,307

5,307

Series C convertible preferred stock; 4,000,000 shares designated, 1,254,175 shares issued and outstanding (liquidation value $6,270,875)

1,254

1,254

Common stock ($.001 par value; 750,000,000 shares authorized, 41,673,655 shares issued and outstanding)

41,673

41,673

Additional paid-in capital

65,377,611

65,371,361

Accumulated deficit

(63,997,660

)

(62,551,819

)

Total shareholders’ equity

1,429,456

2,869,047

Total liabilities and shareholders’ equity

$

9,836,400

$

9,160,667

Contacts

Evan Mullin

Director, Sales & Marketing

InsPro Technologies, LLC

610.872.6135

Info@inspro.com

This article published with permission from Business Wire

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