Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - InsPro Technologies Corp | t78851_8k.htm |
EXHIBIT 99.1
InsPro Technologies Corporation Announces Fourth Quarter 2013 Financial Results
Radnor, PA – March 31, 2014 – InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading provider of Life and Health core policy administration software 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 quarter and year ended December 31, 2013.
Fourth Quarter 2013 Highlights
| · | Revenues decreased 8% to $3,055,850 in the fourth quarter of 2013, compared to $3,311,087 in the fourth quarter of 2012 due to lower implementation services for new clients partially offset by increased ASP/Hosting and maintenance revenues. |
| · | Operating loss from continuing operations was $1,008,687 in the fourth quarter of 2013, compared to a loss of $1,196,557 in the fourth quarter of 2012. The results from operations in the fourth quarter of 2013 were favorably impacted by the growth in ASP/Hosting, maintenance and license fee revenue combined with lower cost of revenues. |
| · | Net loss was $833,814 in the fourth quarter of 2013, compared to a net loss of $1,018,366 in the fourth quarter of 2012. |
2013 Highlights
| · | Revenues increased 22% to $14,802,268 in 2013, compared to $12,146,237 in 2012 primarily due to $2,550,000 of license fees recognized upon the completion of the implementation of InsPro Enterprise for three clients combined with increased ASP/Hosting and maintenance revenues. |
| · | Operating loss from continuing operations was $2,120,683 in 2013, compared to a loss of $3,896,053 in 2012. The results from operations were favorably impacted by $2,550,000 of license fees, which were recognized in 2013 upon the completion of the implementation of InsPro Enterprise for three new clients. |
| · | Net loss was $1,743,008 in 2013, compared to a net loss of $7,883,145 in 2012. The net loss 2013 included a non-cash gain on the change of the fair value of warrant liability of $25,001 whereas the net loss in 2012 included a non-cash loss on the change of the fair value of warrant liability of $4,443,079. |
Anthony R. Verdi, Chief Executive Officer, stated, “In 2013 we completed a record number of implementations of InsPro Enterprise™ and welcomed three new clients to InsPro. We increased our prospect pipeline, and invested heavily to expand the breadth and depth of products supported by InsPro Enterprise with an emphasis on Annuities, Universal Life and True Group Voluntary products. We are encouraged by the growing market interest in our technology platform, and remain optimistic about our future opportunities.”
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
Contact:
Anthony R. Verdi, CEO
484-654-2200
finance@inspro.com
– financial tables to follow –
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Revenues | $ | 3,055,850 | $ | 3,311,087 | $ | 14,802,268 | $ | 12,146,237 | ||||||||||
| Cost of revenues | 2,621,206 | 3,282,059 | 11,626,838 | 11,733,920 | ||||||||||||||
| Gross profit | 434,644 | 29,028 | 3,175,430 | 412,317 | ||||||||||||||
| Selling, general and administrative expenses: | ||||||||||||||||||
| Salaries, employee benefits and related taxes | 699,100 | 586,642 | 2,713,072 | 2,322,425 | ||||||||||||||
| Advertising and other marketing | 114,920 | 72,546 | 394,172 | 217,665 | ||||||||||||||
| Depreciation | 41,251 | 38,782 | 160,808 | 148,641 | ||||||||||||||
| Rent, utilities, telephone and communications | 95,066 | 91,939 | 383,204 | 373,292 | ||||||||||||||
| Professional fees | 276,714 | 271,870 | 879,438 | 657,277 | ||||||||||||||
| Other general and administrative | 216,279 | 163,806 | 765,419 | 589,070 | ||||||||||||||
| Total selling, general and administrative expenses | 1,443,330 | 1,225,585 | 5,296,113 | 4,308,370 | ||||||||||||||
| Operating loss from continuing operations | (1,008,687 | ) | (1,196,557 | ) | (2,120,683 | ) | (3,896,053 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||||
| Gain (loss) on the change of the fair value of warrant liability | 101,200 | 74,999 | 25,001 | (4,433,079 | ) | |||||||||||||
| Interest income | — | — | — | 4,008 | ||||||||||||||
| Interest expense | (13,237 | ) | (8,277 | ) | (39,493 | ) | (78,584 | ) | ||||||||||
| Total other income (expense) | 87,963 | 66,722 | (14,492 | ) | (4,507,655 | ) | ||||||||||||
| Loss from continuing operations | (920,724 | ) | (1,129,835 | ) | (2,135,175 | ) | (8,403,708 | ) | ||||||||||
| Gain from discontinued operations | 86,909 | 111,469 | 392,167 | 520,563 | ||||||||||||||
| Net loss | $ | (833,814 | ) | $ | (1,018,366 | ) | $ | (1,743,008 | ) | $ | (7,883,145 | ) | ||||||
| Net income (loss) per common share - basic and diluted: | ||||||||||||||||||
| Loss from continuing operations | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | $ | (0.20 | ) | ||||||
| Gain from discontinued operations | 0.00 | 0.00 | 0.01 | 0.01 | ||||||||||||||
| Net loss per common share | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.19 | ) | ||||||
| Weighted average common shares outstanding - basic and diluted | 41,543,655 | 41,543,655 | 41,543,655 | 41,543,655 | ||||||||||||||
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, 2013 | December 31, 2012 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 2,569,536 | $ | 3,347,689 | ||||
| Accounts receivable, net | 1,660,564 | 1,706,414 | ||||||
| Prepaid expenses | 200,985 | 236,719 | ||||||
| Other current assets | 2,564 | 1,723 | ||||||
| Assets of discontinued operations | 31,540 | 63,519 | ||||||
| Total current assets | 4,465,189 | 5,356,064 | ||||||
| Restricted cash | — | — | ||||||
| Property and equipment, net | 959,902 | 1,422,043 | ||||||
| Intangibles, net | — | — | ||||||
| Other assets | 60,000 | 70,000 | ||||||
| Total assets | $ | 5,485,091 | $ | 6,848,107 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Notes payable | $ | 550,761 | $ | 551,985 | ||||
| Accounts payable | 1,169,251 | 1,561,403 | ||||||
| Accrued expenses | 456,753 | 523,324 | ||||||
| Current portion of capital lease obligations | 57,932 | 61,849 | ||||||
| Due to related parties | 10,000 | — | ||||||
| Deferred revenue | 1,006,875 | 1,680,833 | ||||||
| Total current liabilities | 3,251,572 | 4,379,394 | ||||||
| LONG TERM LIABILITIES: | ||||||||
| Warrant liability | 607,199 | 225,000 | ||||||
| Capital lease obligations | 23,184 | 83,510 | ||||||
| Total long term liabilities | 630,383 | 308,510 | ||||||
| Total liabilities | 3,881,955 | 4,687,904 | ||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Preferred stock ($.001 par value; 20,000,000 shares authorized) | ||||||||
| Series A convertible preferred stock; 3,437,500 shares authorized, 1,276,750 | ||||||||
shares issued and outstanding (liquidation value $12,767,500) | 2,864,104 | 2,864,104 | ||||||
| Series B convertible preferred stock; 5,000,000 shares authorized, 3,809,378 | ||||||||
| and 3,297,378 shares issued and outstanding (liquidation value $11,428,134 | ||||||||
| and $9,892,134, respectively) | 7,709,919 | 6,617,812 | ||||||
| Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 | ||||||||
| shares issued and outstanding) | 41,543 | 41,543 | ||||||
| Additional paid-in capital | 43,411,172 | 43,317,338 | ||||||
| Accumulated deficit | (52,423,602 | ) | (50,680,594 | ) | ||||
| Total shareholders' equity | 1,603,136 | 2,160,203 | ||||||
| Total liabilities and shareholders' equity | $ | 5,485,091 | $ | 6,848,107 | ||||
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Year Ended December 31, | ||||||||
| 2013 | 2012 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net loss | $ | (1,743,008 | ) | $ | (7,883,145 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 697,102 | 892,315 | ||||||
| Stock-based compensation | 93,834 | 96,717 | ||||||
| (Gain) loss on change of fair value of warrant liability | (25,001 | ) | 4,433,079 | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 45,850 | (200,180 | ) | |||||
| Prepaid expenses | 145,214 | (120,070 | ) | |||||
| Other current assets | (841 | ) | 1,182 | |||||
| Other assets | 10,000 | 10,608 | ||||||
| Accounts payable | (392,152 | ) | 916,840 | |||||
| Accrued expenses | (66,571 | ) | 1,941 | |||||
| Due to related parties | 10,000 | — | ||||||
| Deferred revenue | (673,958 | ) | 1,058,333 | |||||
| Assets of discontinued operations | 31,979 | 40,483 | ||||||
| Net cash used in operating activities | (1,867,552 | ) | (751,897 | ) | ||||
| Cash Flows From Investing Activities: | ||||||||
| Purchase of property and equipment | (234,961 | ) | (1,530,175 | ) | ||||
| Net cash used in investing activities | (234,961 | ) | (1,530,175 | ) | ||||
| Cash Flows From Financing Activities: | ||||||||
| Gross proceeds from sales of preferred stock and warrants including rights offering | 1,536,000 | 1,499,997 | ||||||
| Fees paid in connection with sale of preferred stock and warrants | (36,693 | ) | (9,790 | ) | ||||
| Gross proceeds from notes and loans payable | — | 643,206 | ||||||
| Payments on notes payable | (110,704 | ) | (99,807 | ) | ||||
| Payments on capital leases | (64,243 | ) | (105,898 | ) | ||||
| Net cash provided by financing activities | 1,324,360 | 1,927,708 | ||||||
| Net decrease in cash | (778,153 | ) | (354,364 | ) | ||||
| Cash - beginning of the period | 3,347,689 | 3,702,053 | ||||||
| Cash - end of the period | $ | 2,569,536 | $ | 3,347,689 | ||||