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 three month period ended March 31, 2016.
First Quarter 2016 Highlights
- Revenues were $6,797,271 in the First Quarter of 2016, an 82% increase as compared to $3,732,773 in the First Quarter of 2015. Professional services revenue increased $3,016,832, the result of higher professional services to existing clients.
- Net loss was $403,197 in the First Quarter of 2016 as compared to a net loss of $3,221,528 in the First Quarter of 2015. The net loss in the First Quarter of 2016 was favorably impacted by higher professional services revenue as compared to First Quarter of 2015. Included in the net loss was $164,246 and $218,684 of non cash equity compensation expense in First Quarter 2016 and 2015, respectively.
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 Ending March 31, | ||||||||
2016 | 2015 | |||||||
(Unaudited) | (Unaudited) | |||||||
Revenues | $ | 6,797,271 | $ | 3,732,773 | ||||
Cost of revenues | 5,579,569 | 5,415,110 | ||||||
Gross profit (loss) | 1,217,702 | (1,682,337 | ) | |||||
Selling, general and administrative expenses: | ||||||||
Salaries, employee benefits and related taxes | 1,008,087 | 1,016,690 | ||||||
Advertising and other marketing | 41,720 | 22,419 | ||||||
Depreciation | 25,421 | 42,670 | ||||||
Rent, utilities, telephone and communications | 100,932 | 87,713 | ||||||
Professional fees | 260,802 | 180,146 | ||||||
Other general and administrative | 193,174 | 199,845 | ||||||
Total selling, general and administrative expenses | 1,630,136 | 1,549,483 | ||||||
Operating loss from continuing operations | (412,434 | ) | (3,231,820 | ) | ||||
Other income (expense): | ||||||||
Interest expense | (3,978 | ) | (28,426 | ) | ||||
Total other income (expense) | (3,978 | ) | (28,426 | ) | ||||
Loss from continuing operations | (416,412 | ) | (3,260,246 | ) | ||||
Income from discontinued operations | 13,215 | 38,718 | ||||||
Net loss | $ | (403,197 | ) | $ | (3,221,528 | ) | ||
Net income (loss) per common share - basic and diluted: | ||||||||
Loss from operations | $ | (0.01 | ) | $ | (0.08 | ) | ||
Income from discontinued operations | - | - | ||||||
Net loss per common share | $ | (0.01 | ) | $ | (0.08 | ) | ||
Weighted average common shares outstanding - basic and diluted | 41,543,655 | 41,543,655 | ||||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
March 31, 2016 | December 31, 2015 | |||||
(Unaudited) | (Unaudited) | |||||
ASSETS | ||||||
CURRENT ASSETS: | ||||||
Cash | $ | 2,810,194 | $ | 3,398,293 | ||
Accounts receivable, net | 5,983,471 | 3,959,437 | ||||
Prepaid expenses | 197,793 | 179,700 | ||||
Other current assets | 2,664 | 4,954 | ||||
Assets of discontinued operations | 9,584 | 15,212 | ||||
Total current assets | 9,003,706 | 7,557,596 | ||||
Property and equipment, net | 763,568 | 747,937 | ||||
Other assets | 40,000 | 40,000 | ||||
Total assets | $ | 9,807,274 | $ | 8,345,533 | ||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||
CURRENT LIABILITIES: | ||||||
Notes payable | $ | - | $ | 27,474 | ||
Accounts payable | 6,144,665 | 5,410,146 | ||||
Accrued expenses | 561,890 | 497,088 | ||||
Current portion of capital lease obligations | 267,593 | 227,880 | ||||
Deferred revenue | 3,529,272 | 2,680,361 | ||||
Total current liabilities | 10,503,420 | 8,842,949 | ||||
LONG TERM LIABILITIES: | ||||||
Warrant liability | - | - | ||||
Deferred revenue | 2,000,000 | 2,000,000 | ||||
Capital lease obligations | 186,033 | 149,892 | ||||
Total long term liabilities | 2,186,033 | 2,149,892 | ||||
Total liabilities | 12,689,453 | 10,992,841 | ||||
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; 11,000,000 shares authorized, 5,307,212 | ||||||
and 5,305,852 shares issued and outstanding (liquidation value $15,921,636 | 11,692,647 | 11,689,018 | ||||
and $15,917,556) | ||||||
Common stock ($.001 par value; 500,000,000 and 400,000,000 shares authorized, | ||||||
41,543,655 shares issued and outstanding) | 41,543 | 41,543 | ||||
Additional paid-in capital | 46,907,481 | 46,742,784 | ||||
Accumulated deficit | (64,387,954) | (63,984,757) | ||||
Total shareholders' deficit | (2,882,179) | (2,647,308) | ||||
Total liabilities and shareholders' deficit | $ | 9,807,274 | $ | 8,345,533 | ||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
For the Three Months Ending March 31, | ||||||||
2016 | 2015 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash Flows From Operating Activities: | ||||||||
Net loss | $ | (403,197 | ) | $ | (3,221,528 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 125,635 | 226,696 | ||||||
Stock-based compensation | 164,246 | 218,684 | ||||||
Change in allowance for doubtful collection of accounts receivable | - | 33,925 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (2,024,034 | ) | (1,149,823 | ) | ||||
Prepaid expenses | (18,093 | ) | 134,285 | |||||
Other current assets | 2,290 | (2,755 | ) | |||||
Accounts payable | 734,519 | (247,604 | ) | |||||
Accrued interest on secured note from related party | - | 14,466 | ||||||
Accrued expenses | 64,802 | 186,195 | ||||||
Deferred revenue | 848,911 | 1,126,705 | ||||||
Assets of discontinued operations | 5,628 | 3,198 | ||||||
Net cash used in operating activities | (499,293 | ) | (2,677,556 | ) | ||||
Cash Flows From Investing Activities: | ||||||||
Purchase of property and equipment | (10,188 | ) | (4,682 | ) | ||||
Net cash used in investing activities | (10,188 | ) | (4,682 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Gross proceeds from sale of preferred stock and warrants | 4,080 | - | ||||||
Payments on notes payable | (27,474 | ) | (24,329 | ) | ||||
Gross proceeds from secured note from related party | - | 2,000,000 | ||||||
Gross proceeds loan payable to related party | - | 500,000 | ||||||
Payments on capital leases | (55,224 | ) | (50,861 | ) | ||||
Net cash (used in) provided by financing activities | (78,618 | ) | 2,424,810 | |||||
Net (decrease) in cash | (588,099 | ) | (257,428 | ) | ||||
Cash - beginning of the period | 3,398,293 | 3,431,001 | ||||||
Cash - end of the period | $ | 2,810,194 | $ | 3,173,573 | ||||