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 and six month period ended June 30, 2016.
Second Quarter 2016 Highlights
- Revenues were $4,439,300 in the Second Quarter of 2016, a 21% decrease as compared to $5,588,153 in the Second Quarter of 2015. Revenue included a reduction of $1,299,963 in the Second Quarter of 2016 for non cash stock based fees. Professional services revenue excluding stock based fees increased $686,290, the result of higher professional services to existing clients. ASP revenues increased $296,741 as a result of recent new client implementations and increased utilization by several existing clients. The Second Quarter of 2016 included a $10,000 license fee while the Second Quarter of 2015 included an $850,000 license fee.
- Net loss was $1,479,904 in the Second Quarter of 2016 as compared to a net loss of $1,489,199 in the Second Quarter of 2015. Included in the net loss was $1,319,095 and $11,681 of non cash stock based fees and compensation expense in Second Quarter 2016 and 2015, respectively.
Year-to-Date 2016 Highlights
- Revenues were $11,236,571 in the six months ended June 30, 2016; a 21% increase as compared to the $9,320,926 in the six months ended June 30 2015. Revenue included a reduction of $1,299,963 in the six months ended June 30, 2016, for non cash stock based fees. Increases of $3,703,122 in professional services revenues excluding stock based fees and $519,618 of ASP revenue, which were due to the growth in clients, was partially offset by $1,026,624 lower recognition of software license revenue in the six months ended June 30, 2016 as compared to the same period in 2015.
- Net loss was $1,883,100 in the six months ended June 30, 2016 as compared to a net loss of $4,710,727 in the six months ended June 30, 2015. The net loss in the six months ended June 30, 2016 was favorably impacted by higher revenues, which was the result in the growth in clients, combined with lower cost of revenues, a result of decreased utilization of several outside consulting firms that assisted with modifications to InsPro Enterprise’s functionality and new clients’ implementations of InsPro Enterprise as compared to the same time period last year. Included in the net loss was $1,483,341 and $230,365 of non cash stock based fees and compensation expense in Second 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 Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Revenues, net of $1,299,963 of stock based fees paid to a client during the quarter ended June 30, 2016 |
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$ | 4,439,300 | $ | 5,588,153 | $ | 11,236,571 | $ | 9,320,926 | ||||||||||
Cost of revenues | 4,662,055 | 5,600,260 | 10,241,625 | 11,015,370 | |||||||||||||
Gross profit (loss) | (222,755 | ) | (12,107 | ) | 994,946 | (1,694,444 | ) | ||||||||||
Selling, general and administrative expenses | 1,275,945 | 1,486,009 | 2,906,080 | 3,035,492 | |||||||||||||
Operating loss from continuing operations | (1,498,700 | ) | (1,498,116 | ) | (1,911,134 | ) | (4,729,936 | ) | |||||||||
Other income (expense): | |||||||||||||||||
Gain on the sale of equipment | - | 20,669 | - | 20,669 | |||||||||||||
Interest expense | (6,481 | ) | (52,770 | ) | (10,459 | ) | (81,196 | ) | |||||||||
Total other income (expense) | (6,481 | ) | (32,101 | ) | (10,459 | ) | (60,527 | ) | |||||||||
Loss from continuing operations | (1,505,181 | ) | (1,530,217 | ) | (1,921,593 | ) | (4,790,463 | ) | |||||||||
Income from discontinued operations | 25,277 | 41,018 | 38,493 | 79,736 | |||||||||||||
Net loss | $ | (1,479,904 | ) | $ | (1,489,199 | ) | $ | (1,883,100 | ) | $ | (4,710,727 | ) | |||||
Net income (loss) per common share - basic and diluted: | |||||||||||||||||
Loss from operations | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.11 | ) | |||||
Income from discontinued operations | - | - | - | - | |||||||||||||
Net loss per common share | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.11 | ) | |||||
Weighted average common shares outstanding - basic and diluted | 41,543,655 | 41,543,655 | 41,543,655 | 41,543,655 | |||||||||||||
See accompanying notes to unaudited consolidated financial statements. |
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INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
June 30, 2016 | December 31, 2015 | ||||||||
(Unaudited) | |||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash | $ | 2,484,722 | $ | 3,398,293 | |||||
Accounts receivable, net | 4,709,112 | 3,959,437 | |||||||
Prepaid expenses | 395,175 | 179,700 | |||||||
Other current assets | 2,244 | 4,954 | |||||||
Assets of discontinued operations | 8,398 | 15,212 | |||||||
Total current assets | 7,599,651 | 7,557,596 | |||||||
Property and equipment, net | 637,034 | 747,937 | |||||||
Other assets | 40,000 | 40,000 | |||||||
Total assets | $ | 8,276,685 | $ | 8,345,533 | |||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | |||||||||
CURRENT LIABILITIES: | |||||||||
Notes payable | $ | 106,754 | $ | 27,474 | |||||
Accounts payable | 5,033,851 | 5,410,146 | |||||||
Accrued expenses | 702,647 | 497,088 | |||||||
Current portion of capital lease obligations | 237,954 | 227,880 | |||||||
Deferred revenue | 3,089,058 | 2,680,361 | |||||||
Total current liabilities | 9,170,264 | 8,842,949 | |||||||
LONG TERM LIABILITIES: | |||||||||
Deferred revenue | 2,000,000 | 2,000,000 | |||||||
Capital lease obligations | 149,408 | 149,892 | |||||||
Total long term liabilities | 2,149,408 | 2,149,892 | |||||||
Total liabilities | 11,319,672 | 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 and $15,917,556) |
11,692,647 | 11,689,018 | |||||||
Common stock ($.001 par value; 500,000,000 shares authorized, 41,543,655 shares issued and outstanding) |
41,543 | 41,543 | |||||||
Additional paid-in capital | 48,226,576 | 46,742,784 | |||||||
Accumulated deficit | (65,867,857 | ) | (63,984,757 | ) | |||||
Total shareholders' deficit | (3,042,987 | ) | (2,647,308 | ) | |||||
Total liabilities and shareholders' deficit | $ | 8,276,685 | $ | 8,345,533 | |||||