| [March 30, 2012] |
 |
InsPro Technologies Corporation Announces 2011 Financial Results
RADNOR, Pa. --(Business Wire)--
InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a
leading software innovator and provider of an insurance administration
and marketing system, InsPro Enterprise, used by insurance
carriers and third party administrators, that supports group and
individual business lines and efficiently processes agent, direct
market, worksite and web site generated business, today announced its
financial results for the year and the quarter ended December 31, 2011.
2011 Full Year Highlights
-
Revenues from continuing operations increased 49% to $9,057,816 in
2011 as compared to $6,077,358 in 2010.
-
Gross profit from continuing operations was $2,108,944 in 2011
compared to a gross loss of $486,484 in 2010.
-
Net loss from continuing operations was $2,670,538 in 2011, compared
to a net loss of $5,874,292 in 2010.
-
Net income was $489,049 in 2011 compared to a net loss of $2,500,446,
in 2010.
Fourth Quarter 2011 Highlights
-
Revenues from continuing operations increased 119% to $3,421,793 in
the fourth quarter of 2011, compared to $1,560,766 in the fourth
quarter of 2010 due primarily to license fee revenue pertaining to the
completion of our implementation of InsPro Enterprise for a
client acquired in 2011.
-
Gross profit from continuing operations was $1,508,251 in the fourth
quarter of 2011, compared to a gross loss of $84,016 in the fourth
quarter of 2010.
-
Net income from continuing operations was $394,396 in the fourth
quarter of 2011, compared to a net loss of $1,254,741 in the fourth
quarter of 2010.
Anthony R. Verdi, Chief Executive Officer, stated, "We are pleased to
report the financial progress of the Company in the form of significant
revenue growth in 2011 and markedly improved operating results, achieved
while we continued to make substantial investments in our InsPro
Enterprise product and our infrastructure. These profitable
results for 2011 mark another important milestone in the evolution of
our Company. It is equally gratifying to tell you that our partnerships
with existing clients remains a core corporate value, we have added new
clients and therefore additional partnerships in the first quarter of
2012, the prospect pipeline remains strong and we plan to continue to
invest in our product, InsPro Enterprise, and our client service.
We are looking forward to reporting to you throughout 2012."
About InsPro Enterprise
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. InsPro Enterprise
was designed as a single technology solution to manage all insurance
processing requirements and built from the ground up to support both
group and individual policies. 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.
About InsPro Technologies Corporation
Through its subsidiary, InsPro Technologies, LLC, InsPro Technologies
Corporation offers InsPro Enterprise software, 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 IT support
costs, increase customer retention, and improve operational performance.
InsPro's solutions are offered through standard software licensing, as a
hosted solution, or via Software as a Service (SaaS (News - Alert)) 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 the effects of
restructuring, existing and new clients, the investments in and
potential of our technology platform. Forward-looking statements provide
InsPro Technologies Corporation 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 Corporation's most recent Quarterly Reports on Form 10-Q or
Annual Reports on Form 10-K filed with the Securities and Exchange
Commission. These documents are 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.
- financial tables to follow -
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended December 31,
|
|
For the Year Ended December 31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
3,421,793
|
|
|
$
|
1,560,766
|
|
|
$
|
9,057,816
|
|
|
$
|
6,077,358
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
1,913,542
|
|
|
|
1,644,782
|
|
|
|
6,948,872
|
|
|
|
6,563,842
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
1,508,251
|
|
|
|
(84,016
|
)
|
|
|
2,108,944
|
|
|
|
(486,484
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
Salaries, employee benefits and related taxes
|
|
|
562,321
|
|
|
|
561,594
|
|
|
|
2,615,602
|
|
|
|
2,765,161
|
|
|
Advertising and other marketing
|
|
|
43,887
|
|
|
|
42,184
|
|
|
|
125,130
|
|
|
|
160,903
|
|
|
Depreciation and amortization
|
|
|
165,733
|
|
|
|
182,292
|
|
|
|
687,042
|
|
|
|
876,644
|
|
|
Rent, utilities, telephone and communications
|
|
|
85,973
|
|
|
|
109,708
|
|
|
|
368,336
|
|
|
|
403,955
|
|
|
Professional fees
|
|
|
131,150
|
|
|
|
137,912
|
|
|
|
439,006
|
|
|
|
653,123
|
|
|
Other general and administrative
|
|
|
124,791
|
|
|
|
137,035
|
|
|
|
544,366
|
|
|
|
528,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,113,855
|
|
|
|
1,170,725
|
|
|
|
4,779,482
|
|
|
|
5,387,808
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from operations
|
|
|
394,396
|
|
|
|
(1,254,741
|
)
|
|
|
(2,670,538
|
)
|
|
|
(5,874,292
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Gain from discontinued operations
|
|
|
165,955
|
|
|
|
328,803
|
|
|
|
803,989
|
|
|
|
2,463,675
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Gain on the change of the fair value of warrant liability
|
|
|
1,426,443
|
|
|
|
2,970,681
|
|
|
|
2,356,114
|
|
|
|
1,136,588
|
|
|
Interest income
|
|
|
3,561
|
|
|
|
6,981
|
|
|
|
23,044
|
|
|
|
21,000
|
|
|
Interest expense
|
|
|
(4,758
|
)
|
|
|
(82,815
|
)
|
|
|
(23,560
|
)
|
|
|
(247,417
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense)
|
|
|
1,425,246
|
|
|
|
2,894,847
|
|
|
|
2,355,598
|
|
|
|
910,171
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1,985,597
|
|
|
$
|
1,968,909
|
|
|
$
|
489,049
|
|
|
$
|
(2,500,446
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic and diluted
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
$
|
0.05
|
|
|
$
|
0.04
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.12
|
)
|
|
Gain from discontinued operations
|
|
|
0.00
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.06
|
|
|
Net income (loss) per common share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.01
|
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
41,543,655
|
|
|
|
41,543,655
|
|
|
|
41,543,655
|
|
|
|
41,543,655
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
December 31, 2010
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash
|
|
$
|
3,702,053
|
|
|
$
|
4,429,026
|
|
|
Accounts receivable, net
|
|
|
1,506,234
|
|
|
|
709,503
|
|
|
Prepaid expenses
|
|
|
116,649
|
|
|
|
158,245
|
|
|
Other current assets
|
|
|
2,905
|
|
|
|
8,211
|
|
|
Assets of discontinued operations
|
|
|
104,002
|
|
|
|
63,301
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
5,431,843
|
|
|
|
5,368,286
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
1,152,573
|
|
|
Property and equipment, net
|
|
|
496,692
|
|
|
|
613,618
|
|
|
Intangibles, net
|
|
|
260,050
|
|
|
|
606,785
|
|
|
Other assets
|
|
|
80,608
|
|
|
|
92,558
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
6,269,193
|
|
|
$
|
7,833,820
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Note payable
|
|
$
|
8,586
|
|
|
$
|
17,311
|
|
|
Accounts payable
|
|
|
644,563
|
|
|
|
918,972
|
|
|
Accrued expenses
|
|
|
521,383
|
|
|
|
346,808
|
|
|
Current portion of capital lease obligations
|
|
|
109,872
|
|
|
|
158,138
|
|
|
Due to related parties
|
|
|
-
|
|
|
|
8,370
|
|
|
Deferred revenue
|
|
|
622,500
|
|
|
|
377,500
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
1,906,904
|
|
|
|
1,827,099
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES:
|
|
|
|
|
|
Warrant liability
|
|
|
1,674,226
|
|
|
|
4,030,340
|
|
|
Capital lease obligations
|
|
|
113,943
|
|
|
|
165,612
|
|
|
|
|
|
|
|
|
Total long term liabilities
|
|
|
1,788,169
|
|
|
|
4,195,952
|
|
|
|
|
|
|
|
|
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,
2,797,379
|
|
|
|
|
|
shares issued and outstanding (liquidation value $8,392,137)
|
|
|
5,427,604
|
|
|
|
5,427,604
|
|
|
Common stock ($.001 par value; 300,000,000 shares authorized,
41,543,655
|
|
|
|
|
|
shares issued and outstanding)
|
|
|
41,543
|
|
|
|
41,543
|
|
|
Additional paid-in capital
|
|
|
37,038,318
|
|
|
|
36,764,016
|
|
|
Accumulated deficit
|
|
|
(42,797,449
|
)
|
|
|
(43,286,498
|
)
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
2,574,120
|
|
|
|
1,810,769
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
6,269,193
|
|
|
$
|
7,833,820
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
489,049
|
|
|
$
|
(2,500,446
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
687,042
|
|
|
|
876,644
|
|
|
Stock-based compensation and consulting
|
|
|
274,302
|
|
|
|
383,523
|
|
|
(Gain) on change of fair value of warrant liability
|
|
|
(2,356,114
|
)
|
|
|
(1,136,588
|
)
|
|
Loss on the disposal of equipment of discontinued operations
|
|
|
-
|
|
|
|
6,530
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(796,731
|
)
|
|
|
305,566
|
|
|
Prepaid expenses
|
|
|
41,596
|
|
|
|
(74,411
|
)
|
|
Other current assets
|
|
|
5,306
|
|
|
|
(1,802
|
)
|
|
Other assets
|
|
|
11,950
|
|
|
|
28,412
|
|
|
Accounts payable
|
|
|
(274,409
|
)
|
|
|
(330,911
|
)
|
|
Accrued interest on related secured note from related party
|
|
|
-
|
|
|
|
199,876
|
|
|
Accrued expenses
|
|
|
174,576
|
|
|
|
(469,925
|
)
|
|
Due to related parties
|
|
|
-
|
|
|
|
8,370
|
|
|
Deferred revenue
|
|
|
245,000
|
|
|
|
145,000
|
|
|
Assets of discontinued operations
|
|
|
(40,701
|
)
|
|
|
(2,214,461
|
)
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(1,539,134
|
)
|
|
|
(4,774,623
|
)
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(223,382
|
)
|
|
|
(239,607
|
)
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(223,382
|
)
|
|
|
(239,607
|
)
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
Gross proceeds from note payable
|
|
|
37,540
|
|
|
|
119,875
|
|
|
Payments on note payable
|
|
|
(46,265
|
)
|
|
|
(110,168
|
)
|
|
Gross proceeds from secured note from related party
|
|
|
-
|
|
|
|
1,000,000
|
|
|
Payments on secured note from related party
|
|
|
-
|
|
|
|
(2
|
)
|
|
Fees paid in connection with secured note from related party
|
|
|
(8,370
|
)
|
|
|
(18,389
|
)
|
|
Gross proceeds from capital leases
|
|
|
58,791
|
|
|
|
137,310
|
|
|
Payments on capital leases
|
|
|
(158,726
|
)
|
|
|
(151,099
|
)
|
|
Restricted cash in connection with letters of credit
|
|
|
1,152,573
|
|
|
|
1,471
|
|
|
Gross proceeds from sales of preferred stock and warrants
|
|
|
-
|
|
|
|
7,107,001
|
|
|
Fees paid in connection with offering
|
|
|
-
|
|
|
|
(46,396
|
)
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
1,035,543
|
|
|
|
8,039,603
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
(726,973
|
)
|
|
|
3,025,373
|
|
|
|
|
|
|
|
|
Cash - beginning of the period
|
|
|
4,429,026
|
|
|
|
1,403,653
|
|
|
|
|
|
|
|
|
Cash - end of the period
|
|
$
|
3,702,053
|
|
|
$
|
4,429,026
|
|
[ Back To TMCnet.com's Homepage ]
|
Call Center/CRM
Info Tech 
IP Communications 
Mobile 
Green 
Satellite 
Robotics 
Internet Telephony Magazine
Click here to read latest issue
CUSTOMER 
Cloud Computing Magazine
Click here to read latest issue
M2M Evolution Magazine
