RADNOR, 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 quarter ended March 31, 2014.
First Quarter 2014 Highlights
- Revenues decreased 22% to $3,576,599 in the first quarter of 2014, compared to $4,592,823 in the first quarter of 2013 primarily due to a $1,200,000 license fee that was recognized in the first quarter of 2013 upon the completion of the implementation of InsPro Enterprise™ for a client. The variance was partially offset by increased maintenance, professional services and ASP/Hosting revenues.
- Operating loss from continuing operations was $564,714 in the first quarter of 2014, compared to a loss of $64,791 in the first quarter of 2013. The results from operations in the first quarter of 2013 were favorably impacted by the $1,200,000 license fee.
- Net loss increased to $501,758 in the first quarter of 2014, compared to a net loss of $238,492 in the first quarter of 2013 due primarily to the $1,200,000 license fee and lower revenues which were partially offset by lower expenses, particularly software consulting and professional services expenses, and loss on the change of the fair value of warrant liability.
Anthony R. Verdi, Chief Executive Officer, stated, “We are pleased with the start to 2014 as we are making significant progress on several ongoing implementations of InsPro Enterprise and just recently announced a new client with a strong presence in the growing Group Voluntary market. Additionally, we are receiving considerable market interest in our Annuity product capabilities. We are confident in our technology, pleased with the market recognition of InsPro Enterprise and 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.
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| For the Three Months Ended March 31 | ||||||||
| 2014 | 2013 | |||||||
| Revenues | $ | 3,576,599 | $ | 4,592,823 | ||||
| Cost of revenues | 2,952,433 | 3,372,376 | ||||||
| Gross profit | 624,166 | 1,220,447 | ||||||
| Selling, general and administrative expenses: | ||||||||
| Salaries, employee benefits and related taxes | 657,495 | 651,964 | ||||||
| Advertising and other marketing | 51,929 | 56,172 | ||||||
| Depreciation | 36,715 | 38,213 | ||||||
| Rent, utilities, telephone and communications | 90,662 | 93,421 | ||||||
| Professional fees | 170,665 | 267,178 | ||||||
| Other general and administrative | 181,415 | 178,290 | ||||||
| Total selling, general and administrative expenses | 1,188,880 | 1,285,238 | ||||||
| Operating loss from continuing operations | (564,714 | ) | (64,791 | ) | ||||
| Other expense: | ||||||||
| Loss on the change of the fair value of warrant liability | - | (279,799 | ) | |||||
| Interest expense | (7,444 | ) | (7,655 | ) | ||||
| Total other expense | (7,444 | ) | (287,454 | ) | ||||
| Loss from continuing operations | (572,158 | ) | (352,245 | ) | ||||
| Income from discontinued operations | 70,400 | 113,753 | ||||||
| Net loss | $ | (501,758 | ) | $ | (238,492 | ) | ||
| Net income (loss) per common share - basic and diluted: | ||||||||
| Loss from operations | $ | (0.01 | ) | $ | (0.02 | ) | ||
| Income from discontinued operations | 0.00 | 0.01 | ||||||
| Net loss per common share | $ | (0.01 | ) | $ | (0.01 | ) | ||
| Weighted average common shares outstanding - basic and diluted | 41,543,655 | 41,543,655 | ||||||
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| March 31, 2014 | December 31, 2013 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 1,837,930 | $ | 2,569,536 | ||||
| Accounts receivable, net | 2,513,689 | 1,660,564 | ||||||
| Prepaid expenses | 226,056 | 200,985 | ||||||
| Other current assets | 2,066 | 2,564 | ||||||
| Assets of discontinued operations | 24,224 | 31,540 | ||||||
| Total current assets | 4,603,965 | 4,465,189 | ||||||
| Property and equipment, net | 883,006 | 959,902 | ||||||
| Other assets | 60,000 | 60,000 | ||||||
| Total assets | $ | 5,546,971 | $ | 5,485,091 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Notes payable | $ | 525,000 | $ | 550,761 | ||||
| Accounts payable | 1,247,773 | 1,169,251 | ||||||
| Accrued expenses | 521,625 | 456,753 | ||||||
| Current portion of capital lease obligations | 78,885 | 57,932 | ||||||
| Due to related parties | 10,000 | 10,000 | ||||||
| Deferred revenue | 1,435,050 | 1,006,875 | ||||||
| Total current liabilities | 3,818,333 | 3,251,572 | ||||||
| LONG TERM LIABILITIES: | ||||||||
| Warrant liability | 607,199 | 607,199 | ||||||
| Capital lease obligations | 6,892 | 23,184 | ||||||
| Total long term liabilities | 614,091 | 630,383 | ||||||
| Total liabilities | 4,432,424 | 3,881,955 | ||||||
| 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 shares issued and outstanding (liquidation value $11,428,134 and $9,892,134, respectively) |
7,709,919 | 7,709,919 | ||||||
|
Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 shares issued and outstanding) |
41,543 | 41,543 | ||||||
| Additional paid-in capital | 43,424,341 | 43,411,172 | ||||||
| Accumulated deficit | (52,925,360 | ) | (52,423,602 | ) | ||||
| Total shareholders' equity | 1,114,547 | 1,603,136 | ||||||
| Total liabilities and shareholders' equity | $ | 5,546,971 | $ | 5,485,091 | ||||
| INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net loss | $ | (501,758 | ) | $ | (238,492 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 175,455 | 177,172 | ||||||
| Stock-based compensation | 13,168 | 18,183 | ||||||
| Loss on change of fair value of warrant liability | - | 279,799 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (853,125 | ) | (669,640 | ) | ||||
| Prepaid expenses | (25,071 | ) | (4,163 | ) | ||||
| Other current assets | 498 | (5,704 | ) | |||||
| Accounts payable | 78,522 | (425,293 | ) | |||||
| Accrued expenses | 64,872 | 61,894 | ||||||
| Deferred revenue | 428,175 | 630,223 | ||||||
| Assets of discontinued operations | 7,316 | 23,044 | ||||||
| Net cash used in operating activities | (611,948 | ) | (152,977 | ) | ||||
| Cash Flows From Investing Activities: | ||||||||
| Purchase of property and equipment | (70,601 | ) | (68,888 | ) | ||||
| Net cash used in investing activities | (70,601 | ) | (68,888 | ) | ||||
| Cash Flows From Financing Activities: | ||||||||
| Gross proceeds from sale of preferred stock and warrants | - | 36,000 | ||||||
| Fees paid in connection with sale of preferred stock and warrants | - | (28,800 | ) | |||||
| Payments on notes payable | (25,761 | ) | (26,985 | ) | ||||
| Payments on capital leases | (23,296 | ) | (20,267 | ) | ||||
| Net cash used in financing activities | (49,057 | ) | (40,052 | ) | ||||
| Net decrease in cash | (731,606 | ) | (261,917 | ) | ||||
| Cash - beginning of the period | 2,569,536 | 3,347,689 | ||||||
| Cash - end of the period | $ | 1,837,930 | $ | 3,085,772 | ||||
