[March 30, 2018] |
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InsPro Technologies Corporation Announces Fourth Quarter 2017 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 and twelve month
period ended December 31, 2017.
Fourth Quarter 2017 Highlights
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Revenues were $6,089,303 in the Fourth Quarter of 2017; a 23% increase
as compared to $4,946,978 in the Fourth Quarter of 2016. The increase
was the result of increased professional services fees to the
Company's largest client as measured by 2017 revenue.
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Net income was $1,218,621 in the Fourth Quarter of 2017 as compared to
a net loss of $841,150 in the Fourth Quarter of 2016. Net income in
the Fourth Quarter of 2017 was favorably impacted by higher revenues
from existing clients combined with lower IT consulting staffing as
compared to the Fourth Quarter 2016, primarily as a result of the
implementation of cost reduction initiatives.
2017 Full Year Highlights
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Revenues were $21,694,921 in the year ended December 31, 2017; a 1%
decrease as compared to the $21,830,928 in the year ended December 31,
2016. The decrease was the result of lower post implementation
services to several clients and lower implementation services to the
Company's largest client as measured by 2017 revenue. Partially
offsetting the decline in revenue was higher ASP and hosting and
software license revenue.
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Net income was $1,622,420 in the year ended December 31, 2017 as
compared to a net loss of $2,667,937 in the year ended December 31,
2016. Net income in 2017 was favorably impacted by lower employee and
IT consulting staffing as compared to the same period in 2016,
primarily as a result of the implementation of cost reduction
initiatives. Included in 2017's net income was $144,948 of non cash
stock based fees and compensation expense as compared to $1,522,105 of
non cash stock based fees and compensation expense included in 2016's
net loss.
David Anderson, Chief Executive Officer, stated, "Our fourth quarter and
year-end results close out an exciting and successful 2017. The
long-standing partnerships we have with our customers continue to
provide a solid foundation as we move into 2018. We expect 2018 to be a
strong year and we look to continue our positive momentum."
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.
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INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Three Months Ended December 31,
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For the Year Ended December 31,
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2017
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2016
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2017
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2016
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Revenues
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$
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6,089,303
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$
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4,946,978
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$
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21,694,921
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$
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21,830,928
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Cost of revenues
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3,145,678
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4,505,844
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13,842,824
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19,070,205
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Gross profit
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2,943,625
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441,134
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7,852,097
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2,760,723
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Selling, general and administrative expenses
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1,568,245
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1,292,138
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6,065,979
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5,473,566
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Operating income (loss) from continuing operations
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1,375,380
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(851,004
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1,786,118
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(2,712,843
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Other income (expense):
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Gain on the sale of equipment
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-
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-
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5,380
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-
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Interest expense
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(6,898
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(6,959
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(23,640
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(25,249
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Total other income (expense)
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(6,898
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(6,959
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(18,260
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(25,249
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Income (loss) from continuing operations before income taxes
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1,368,482
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(857,963
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1,767,858
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(2,738,092
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Provision for income taxes from continuing operations
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153,826
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-
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167,670
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-
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Net income (loss) from continuing operations
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1,214,656
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(857,963
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1,600,188
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(2,738,092
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Income from discontinued operations before income taxes
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5,639
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16,813
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24,562
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70,155
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Provision for income taxes from discontinued operations
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1,674
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-
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2,330
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-
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Net income from discontinued operations
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3,965
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16,813
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22,232
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70,155
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Net income (loss)
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$
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1,218,621
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$
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(841,150
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$
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1,622,420
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$
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(2,667,937
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Net income (loss) per common share - basic:
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Income (loss) from operations per common share
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$
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0.03
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$
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(0.02
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$
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0.04
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$
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(0.06
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Income from discontinued operations per common share
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-
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-
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-
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-
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Net income (loss) per common share
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$
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0.03
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$
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(0.02
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$
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0.04
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$
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(0.06
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Net income (loss) per common share - fully diluted:
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Loss from operations per common share
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$
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0.01
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$
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(0.02
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$
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0.01
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$
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(0.06
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Income from discontinued operations per common share
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-
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-
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-
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-
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Net income (loss) per common share
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$
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0.01
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$
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(0.02
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$
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0.01
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$
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(0.06
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Weighted average common shares outstanding - basic
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41,543,655
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41,543,655
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41,543,655
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41,543,655
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Weighted average common shares outstanding - fully diluted
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196,970,235
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41,543,655
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189,895,315
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41,543,655
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INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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December 31, 2017
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December 31, 2016
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ASSETS
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CURRENT ASSETS:
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Cash
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$
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5,017,539
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$
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3,161,617
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Accounts receivable, net
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1,543,389
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2,333,817
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Prepaid expenses
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360,975
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225,439
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Other current assets
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-
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30,520
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Assets of discontinued operations
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3,806
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8,636
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Total current assets
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6,925,709
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5,760,029
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Property and equipment, net
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269,994
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512,960
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Total assets
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$
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7,195,703
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$
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6,272,989
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LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
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CURRENT LIABILITIES:
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Notes payable
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$
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45,793
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$
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39,194
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Accounts payable
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1,484,704
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5,460,035
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Accrued expenses
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1,126,596
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436,516
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Current portion of capital lease obligations
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143,855
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188,025
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Deferred revenue
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2,765,401
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2,285,140
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Income tax payable
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167,670
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-
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Income tax payable on discontinued operations
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2,330
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-
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Total current liabilities
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5,736,349
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8,408,910
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LONG TERM LIABILITIES:
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Deferred revenue
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1,000,000
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1,500,000
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Capital lease obligations
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74,861
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153,139
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Total long term liabilities
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1,074,861
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1,653,139
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Total liabilities
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6,811,210
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10,062,049
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COMMITMENTS AND CONTINGENCIES:
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SHAREHOLDERS' EQUITY (DEFICIT):
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Preferred stock ($.001 par value; 20,000,000 shares authorized)
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Series A convertible preferred stock; 3,437,500 shares designated,
1,276,750 shares issued and outstanding (liquidation value
$12,767,500)
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1,277
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1,277
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Series B convertible preferred stock; 11,000,000 shares
designated, 5,307,212 shares issued and outstanding (liquidation
value $15,921,636)
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5,307
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5,307
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Series C convertible preferred stock; 4,000,000 shares designated,
1,254,175 shares issued and outstanding (liquidation value
$6,270,875)
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1,254
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-
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Common stock ($.001 par value; 500,000,000 shares authorized,
41,543,655 shares issued and outstanding)
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41,543
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41,543
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Additional paid-in capital
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|
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65,365,386
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62,815,507
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Accumulated deficit
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(65,030,274
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(66,652,694
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Total shareholders' equity (deficit)
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384,493
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(3,789,060
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Total liabilities and shareholders' equity (deficit)
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$
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7,195,703
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$
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6,272,989
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View source version on businesswire.com: https://www.businesswire.com/news/home/20180330005022/en/
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