InsPro Technologies Corporation Announces First Quarter 2015 Financial Results

RADNOR, Pa.--()--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, 2015.

First Quarter 2015 Highlights

  • Revenues were $3,732,773 in the first quarter of 2015, a 4% increase as compared to the $3,576,599 in the first quarter of 2014. Increases of $421,103 in ASP/hosting services, $186,624 of license fee revenue, which pertained to the re-sale of third party software licenses to clients that are in the process of implementing InsPro Enterprise™, and increases of $66,192 in Maintenance revenues all due to the growth in clients, accounts for the increase in Revenue.
  • Operating loss from continuing operations was $3,231,820 in the first quarter of 2015 as compared to $564,714 in the first quarter of 2014. The results from operations in the first quarter of 2015 were unfavorably impacted by higher cost of revenues, a result of increased utilization of several outside consulting firms, to assist with modifications to InsPro Enterprise’s functionality and new clients’ implementations of InsPro Enterprise. In Third Quarter of 2014 the Company engaged a third party consulting firm to be a preferred system integrator.
  • Net loss was $3,221,528 in the first quarter of 2015 as compared to a net loss of $501,758 in the first quarter of 2014. The net loss in the first quarter of 2015 as compared to the first quarter of 2014 was unfavorably impacted by higher costs of revenues.

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
  2015     2014  
 
Revenues $ 3,732,773 $ 3,576,599
 
Cost of revenues 5,415,110 2,952,433
   
Gross margin   (1,682,337 )   624,166  
 
Selling, general and administrative expenses:
Salaries, employee benefits and related taxes 1,016,690 657,495
Advertising and other marketing 22,419 51,929
Depreciation 42,670 36,715
Rent, utilities, telephone and communications 87,713 90,662
Professional fees 180,146 170,665
Other general and administrative   199,845     181,414  
 
Total selling, general and administrative expenses   1,549,483     1,188,880  
 
Operating loss from continuing operations   (3,231,820 )   (564,714 )
 
Other income (expense):
Interest expense   (28,426 )   (7,444 )
 
Total other expense   (28,426 )   (7,444 )
 
Loss from continuing operations   (3,260,246 )   (572,158 )
 
Income from discontinued operations   38,718     70,400  
 
Net loss $ (3,221,528 ) $ (501,758 )
 
Net income (loss) per common share - basic and diluted:
Loss from operations $ (0.08 ) $ (0.01 )
Gain from discontinued operations   -     -  
Net loss per common share $ (0.08 ) $ (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, 2015 December 31, 2014
ASSETS
 
CURRENT ASSETS:
Cash $ 3,173,573 $ 3,431,001
Accounts receivable, net 3,360,710 2,244,812
Prepaid expenses 186,943 321,228
Other current assets 5,551 2,796
Assets of discontinued operations   16,585     19,783  
 
Total current assets 6,743,362 6,019,620
 
Property and equipment, net 882,424 1,104,441
Other assets   50,000     50,000  
 
Total assets $ 7,675,786   $ 7,174,061  
 
LIABILITIES AND SHAREHOLDERS' DEFICIT
 
CURRENT LIABILITIES:
Notes payable $ 525,000 $ 549,329
Accounts payable 4,586,524 4,834,128
Accrued expenses 559,502 373,310
Current portion of capital lease obligations 174,022 182,388
Loan payable to related party 500,000 -
Deferred revenue   3,378,393     2,251,688  
 
Total current liabilities   9,723,441     8,190,843  
 
LONG TERM LIABILITIES:
Notes payable to related party and accrued interest 2,014,466 -
Warrant liability - 5,760
Capital lease obligations   188,712     231,207  
 
Total long term liabilities   2,203,178     236,967  
 
Total liabilities   11,926,619     8,427,810  
 
 
SHAREHOLDERS' DEFICIT:
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 $11,428,134) 7,709,919 7,709,919
Common stock ($.001 par value; 400,000,000 shares authorized,
41,543,655 shares issued and outstanding) 41,543 41,543
Additional paid-in capital 45,963,418 45,738,974
Accumulated deficit   (60,829,817 )   (57,608,289 )
 
Total shareholders' deficit   (4,250,833 )   (1,253,749 )
 
Total liabilities and shareholders' deficit $ 7,675,786   $ 7,174,061  
 
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
For the Three Months Ended March 31,
  2015     2014  
Cash Flows From Operating Activities:
Net loss $ (3,221,528 ) $ (501,758 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 226,696 175,455
Stock-based compensation 218,684 13,168
Changes in assets and liabilities:
Accounts receivable (1,149,823 ) (853,125 )
Prepaid expenses 134,285 (25,071 )
Other current assets (2,755 ) 498
Accounts payable (247,604 ) 78,522
Accrued expenses 186,192 64,872
Deferred revenue 1,126,705 428,175
Assets of discontinued operations   3,198     7,316  
 
Net cash used in operating activities   (2,677,559 )   (611,948 )
 
Cash Flows From Investing Activities:
Purchase of property and equipment   (4,679 )   (70,601 )
 
Net cash used in investing activities   (4,679 )   (70,601 )
 
Cash Flows From Financing Activities:
Payments on notes payable (24,329 ) (25,761 )
Gross proceeds from secured note from related party 2,000,000 -
Due to related parties 500,000 -
Payments on capital leases   (50,861 )   (23,296 )
 
Net cash provided by (used in) financing activities   2,424,810     (49,057 )
 
Net decrease in cash (257,428 ) (731,606 )
 
Cash - beginning of the period   3,431,001     2,569,536  
 
Cash - end of the period $ 3,173,573   $ 1,837,930  

Contacts

InsPro Technologies Corporation
Anthony R. Verdi, CFO
484-654-2200
finance@inspro.com

Release Summary

InsPro Technologies Corporation, a leading provider of core policy administration software for Group and Individual Life, Health, and Annuity products, today announced Q1 2015 financial results.

Contacts

InsPro Technologies Corporation
Anthony R. Verdi, CFO
484-654-2200
finance@inspro.com