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| 8-K - FOMR 8-K - InsPro Technologies Corp | v231690_8k.htm |
InsPro Technologies Corporation Announces Second Quarter 2011 Financial Results
Radnor, PA – August 15, 2011 – InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading software innovator and provider of a web-based, flexible, comprehensive, enterprise-wide insurance administration software solution, InsPro Enterprise, supporting a wide range of group and individual products, today announced its financial results for the quarter ended June 30, 2011.
Second Quarter 2011 Highlights
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Net loss of $541,382 or ($0.01) per share basic and diluted in the second quarter of 2011, compared with net loss of $1,764,936, or ($0.04) per share basic and diluted in second quarter of 2010
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Net gain from discontinued operations of $220,485 in the second quarter of 2011, compared to a net gain of $700,204 from discontinued operations in the second quarter of 2010.
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Net loss from continuing operations of $1,382,000 in the second quarter of 2011, compared to $1,406,198 net loss in the second quarter of 2010. This modest improvement is the result of cost savings from ongoing restructuring activities.
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Revenues from continuing operations of $1,593,352 in the second quarter of 2011, compared to $1,461,542 in the second quarter of 2010. The increase was due primarily to increased post implementation services provided to existing InsProEnterprise clients and increased ASP fees.
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Year to Date 2011 Highlights
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Net loss of $513,740 or ($0.01) per share basic and diluted in 2011 to date, compared with net loss of $1,767,889, or ($0.04) per share basic and diluted in 2010 to date.
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Net gain from discontinued operations of $439,505 in 2011 to date, compared to a net gain of $1,731,359 from discontinued operations in 2010 to date. The first quarter of 2010 included $578,569 non recurring gain on the sale of Insurint.
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Net loss from continuing operations of $1,883,708 in 2011 to date, compared to $3,366,489 net loss in 2010 to date. This improvement is the result of higher revenue combined with cost savings from ongoing restructuring activities.
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Revenues from continuing operations of $3,936,221 in 2011 to date compared to $2,711,177 in 2010 to date. The increase was due primarily to increased post implementation services provided to existing InsProEnterprise clients, increased sales of InsProEnterprise software licenses and increases ADS fees.
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In 2011 to date the Company’s liquidity and financial position improved as a result of the reclassification of $1,152,573 of restricted cash to cash, the result of the elimination of restrictions over certain of our bank deposits that served as collateral for expired letters of credit.
Anthony R. Verdi, Chief Executive Officer, stated “We remain pleased with our revenue growth from InsProEnterprise and are energized by the active interest in the marketplace for our unique and capable platform. We continue to invest in product improvements and the prospect pipeline is encouraging. Currently, we are actively working with Physicians Mutual on the implementation of their InsPro Enterprise license along with providing professional services to several of our existing clients in support of their utilization of InsPro Enterprise.”
About InsPro Enterprise
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. InsPro Enterprise was designed as a single technology solution to manage all insurance processing requirements and built from the ground up to support both group and individual policies. 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.
About InsPro Technologies Corporation
Through its subsidiary, InsPro Technologies, LLC, InsPro Technologies Corporation offers InsPro Enterprise software, 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 IT support costs, increase customer retention, 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 Corporation 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 the effects of restructuring, the investments in and potential of our technology platform. Forward-looking statements provide InsPro Technologies Corporation 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 Corporation’s most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission. These documents are 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.
Contact:
Anthony R. Verdi, CEO, CFO and COO
484-654-2200
finance@inspro.com
– financial tables to follow –
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Three Months Ended June 30,
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For the Six Months Ended June 30,
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2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Revenues
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$ | 1,593,352 | $ | 1,461,542 | $ | 3,936,221 | $ | 2,711,177 | ||||||||
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Cost of revenues
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1,788,813 | 1,637,464 | 3,447,674 | 3,395,872 | ||||||||||||
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Gross profit (loss)
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(195,461 | ) | (175,922 | ) | 488,547 | (684,695 | ) | |||||||||
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Selling, general and administrative expenses:
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Salaries, employee benefits and related taxes
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634,663 | 644,756 | 1,287,785 | 1,240,765 | ||||||||||||
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Advertising and other marketing
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30,567 | 26,060 | 54,044 | 83,404 | ||||||||||||
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Depreciation and amortization
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173,070 | 241,673 | 354,788 | 473,484 | ||||||||||||
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Rent, utilities, telephone and communications
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91,389 | 100,759 | 188,837 | 176,002 | ||||||||||||
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Professional fees
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104,120 | 103,614 | 208,657 | 451,611 | ||||||||||||
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Other general and administrative
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152,730 | 113,414 | 278,144 | 256,528 | ||||||||||||
| 1,186,539 | 1,230,276 | 2,372,255 | 2,681,794 | |||||||||||||
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Loss from operations
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(1,382,000 | ) | (1,406,198 | ) | (1,883,708 | ) | (3,366,489 | ) | ||||||||
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Gain from discontinued operations
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220,485 | 700,204 | 439,505 | 1,731,359 | ||||||||||||
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Other income (expense):
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Gain (loss) on the change of the fair value of warrant liability
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620,274 | (1,018,381 | ) | 929,568 | (43,913 | ) | ||||||||||
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Interest income
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6,095 | 5,380 | 14,396 | 7,465 | ||||||||||||
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Interest expense
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(6,236 | ) | (45,941 | ) | (13,501 | ) | (96,311 | ) | ||||||||
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Total other income (expense)
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620,133 | (1,058,942 | ) | 930,463 | (132,759 | ) | ||||||||||
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Net loss
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$ | (541,382 | ) | $ | (1,764,936 | ) | $ | (513,740 | ) | $ | (1,767,889 | ) | ||||
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Net income (loss) per common share - basic and diluted:
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Loss from operations
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$ | (0.02 | ) | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.08 | ) | ||||
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Gain from discontinued operations
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0.01 | 0.02 | 0.01 | 0.04 | ||||||||||||
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Net loss per common share - basic and diluted
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$ | (0.01 | ) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||
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Weighted average common shares outstanding - basic and diluted
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41,543,655 | 41,543,655 | 41,543,655 | 41,543,655 | ||||||||||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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June 30, 2011
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December 31, 2010
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(Unaudited)
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ASSETS
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CURRENT ASSETS:
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Cash
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$ | 4,704,418 | $ | 4,429,026 | ||||
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Accounts receivable, net
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855,279 | 709,503 | ||||||
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Tax receivable
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3,615 | 6,455 | ||||||
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Prepaid expenses
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255,025 | 158,245 | ||||||
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Other current assets
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8,062 | 1,756 | ||||||
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Assets of discontinued operations
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187,636 | 63,301 | ||||||
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Total current assets
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6,014,035 | 5,368,286 | ||||||
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Restricted cash
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- | 1,152,573 | ||||||
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Property and equipment, net
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506,857 | 613,618 | ||||||
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Intangibles, net
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433,418 | 606,785 | ||||||
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Other assets
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90,608 | 92,558 | ||||||
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Total assets
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$ | 7,044,918 | $ | 7,833,820 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Note payable
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$ | 33,506 | $ | 17,311 | ||||
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Accounts payable
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839,770 | 918,972 | ||||||
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Accrued expenses
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439,102 | 346,808 | ||||||
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Current portion of capital lease obligations
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125,627 | 158,138 | ||||||
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Due to related parties
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- | 8,370 | ||||||
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Deferred revenue
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1,048,075 | 377,500 | ||||||
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Total current liabilities
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2,486,080 | 1,827,099 | ||||||
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LONG TERM LIABILITIES:
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Warrant liability
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3,100,772 | 4,030,340 | ||||||
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Capital lease obligations
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114,632 | 165,612 | ||||||
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Total long term liabilities
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3,215,404 | 4,195,952 | ||||||
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SHAREHOLDERS' EQUITY:
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Preferred stock ($.001 par value; 20,000,000 shares authorized)
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Series A convertible preferred stock; 3,437,500 shares authorized, 1,276,750 shares issued and outstanding (liquidation value $12,767,500)
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2,864,104 | 2,864,104 | ||||||
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Series B convertible preferred stock; 5,000,000 shares authorized, 2,797,379 shares issued and outstanding (liquidation value $8,392,137)
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5,427,604 | 5,427,604 | ||||||
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Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 shares issued and outstanding)
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41,543 | 41,543 | ||||||
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Additional paid-in capital
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36,810,421 | 36,764,016 | ||||||
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Accumulated deficit
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(43,800,238 | ) | (43,286,498 | ) | ||||
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Total shareholders' equity
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1,343,434 | 1,810,769 | ||||||
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Total liabilities and shareholders' equity
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$ | 7,044,918 | $ | 7,833,820 | ||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
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For the Six Months Ended June 30,
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2011
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2010
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(Unaudited)
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(Unaudited)
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Cash Flows From Operating Activities:
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Net loss
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$ | (513,740 | ) | $ | (1,767,889 | ) | ||
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Adjustments to reconcile net loss to net cash used in operating activities:
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Depreciation and amortization
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354,788 | 473,484 | ||||||
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Stock-based compensation and consulting
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46,405 | 7,200 | ||||||
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(Gain) loss on change of fair value of warrant liability
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(929,568 | ) | 43,913 | |||||
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Gain (loss) on the disposal of equipment of discontinued operations
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- | 6,530 | ||||||
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Changes in assets and liabilities:
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Accounts receivable
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(145,776 | ) | 187,024 | |||||
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Tax receivable
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2,840 | 8,432 | ||||||
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Prepaid expenses
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(96,780 | ) | (198,873 | ) | ||||
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Other current assets
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(6,306 | ) | (16,247 | ) | ||||
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Other assets
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1,950 | 8,053 | ||||||
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Accounts payable
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(79,202 | ) | 245,672 | |||||
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Accrued interest on related secured note from related party
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- | 70,880 | ||||||
| Due to related parties | - | 24,827 | ||||||
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Accrued expenses
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92,294 | (351,049 | ) | |||||
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Deferred revenue
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670,575 | 191,000 | ||||||
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Assets of discontinued operations
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(124,335 | ) | (1,836,004 | ) | ||||
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Net cash used in operating activities
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(726,855 | ) | (2,903,047 | ) | ||||
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Cash Flows From Investing Activities:
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Purchase of property and equipment
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(74,660 | ) | (169,172 | ) | ||||
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Net cash used in investing activities
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(74,660 | ) | (169,172 | ) | ||||
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Cash Flows From Financing Activities:
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Gross proceeds from note payable
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37,540 | 119,875 | ||||||
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Payments on note payable
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(21,345 | ) | (30,178 | ) | ||||
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Gross proceeds from secured note from related party
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- | 1,000,000 | ||||||
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Fees paid in connection with secured note from related party
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(8,370 | ) | (18,389 | ) | ||||
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Gross proceeds from capital leases
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- | 137,310 | ||||||
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Payments on capital leases
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(83,491 | ) | (62,841 | ) | ||||
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Restricted cash in connection with letters of credit
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1,152,573 | 1,838 | ||||||
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Gross proceeds from sales of preferred stock and warrants
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- | 1,107,000 | ||||||
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Net cash provided by financing activities
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1,076,907 | 2,254,615 | ||||||
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Net increase (decrease) in cash
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275,392 | (817,604 | ) | |||||
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Cash - beginning of the period
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4,429,026 | 1,403,653 | ||||||
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Cash - end of the period
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$ | 4,704,418 | $ | 586,049 | ||||