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InsPro Technologies Corporation Announces First Quarter 2016 Financial Results
[May 16, 2016]

InsPro Technologies Corporation Announces First Quarter 2016 Financial Results


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 (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 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  
 


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