[November 14, 2016] |
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InsPro Technologies Corporation Announces Third 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 and nine month period
ended September 30, 2016.
Third Quarter 2016 Highlights
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Revenues were $5,647,379 in the Third Quarter of 2016, a 12% decrease
as compared to $6,381,855 in the Third Quarter of 2015. The decrease
was the result of lower professional services revenue offset by a
$500,000 reseller fee pertaining to the Company's granting in Third
Quarter 2015 an unaffiliated 3rd party the exclusive right
to market InsPro Enterprise to prospective clients for their
administration of long term care insurance products.
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Net income was $56,313 in the Third Quarter of 2016 as compared to a
net loss of $394,447 in the Third Quarter of 2015. Included in the net
income in Third Quarter 2016 and the net loss in Third Quarter 2015
was $19,465 and $203,108 of non cash stock based fees and compensation
expense, respectively.
Year-to-Date 2016 Highlights
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Revenues were $16,883,950 in the nine months ended September 30, 2016,
an 8% increase as compared to the $15,702,781 in the nine months ended
September 30 2015. Revenue included a reduction of $1,299,963 in the
nine months ended September 30, 2016, for non-cash stock based fees.
Increases of $2,602,532 in professional services revenues excluding
stock based fees, $409,812 of ASP revenue and the $500,000 reseller
fee in Third Quarter 2016 were partially offset by $1,026,624 of lower
software license revenue in the nine months ended September 30, 2016
as compared to the same period in 2015.
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Net loss was $1,826,787 in the nine months ended September 30, 2016 as
compared to a net loss of $5,105,174 in the nine months ended
September 30, 2015. The net loss in the nine months ended September
30, 2016 was favorably impacted by higher revenues, which was the
result in the growth in clients and a reseller fee in 2016, 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 $1,502,806 and $433,473 of non cash stock based
fees and compensation expense in nine months ended September 30, 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.
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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 September 30,
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For the Nine Months Ended September 30,
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2016
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2015
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2016
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2015
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Revenues, net of $1,299,963 of stock based fees paid to a client
during the quarter ended June 30, 2016
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$
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5,647,379
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$
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6,381,855
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$
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16,883,950
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$
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15,702,781
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Cost of revenues
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4,322,737
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5,324,024
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14,564,361
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16,339,394
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Gross profit (loss)
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1,324,642
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1,057,831
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2,319,589
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(636,613
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)
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Selling, general and administrative expenses
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1,275,345
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1,446,394
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4,181,427
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4,481,886
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Operating gain (loss) from continuing operations
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49,297
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(388,563
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(1,861,838
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(5,118,499
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Other income (expense):
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Gain (loss) on the sale of equipment
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-
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(2,931
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17,738
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Interest expense
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(7,831
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(39,999
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(18,290
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(121,195
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Total other income (expense)
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(7,831
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(42,930
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(18,290
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(103,457
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Gain (loss) from continuing operations
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41,466
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(431,493
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(1,880,128
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(5,221,956
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Income from discontinued operations
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14,847
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37,046
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53,341
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116,782
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Net income (loss)
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$
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56,313
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$
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(394,447
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$
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(1,826,787
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$
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(5,105,174
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Net income (loss) per common share - basic and diluted:
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Income (loss) from operations
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$
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0.01
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$
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(0.04
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$
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(0.04
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$
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(0.12
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Income from discontinued operations
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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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(0.04
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$
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(0.04
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$
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(0.12
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Weighted average common shares outstanding - basic and diluted
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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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INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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September 30, 2016
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December 31, 2015
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(Unaudited)
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ASSETS
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CURRENT ASSETS:
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Cash
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$
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2,791,900
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$
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3,398,293
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Accounts receivable, net
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3,244,562
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3,959,437
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Prepaid expenses
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279,630
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179,700
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Other current assets
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42,758
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4,954
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Assets of discontinued operations
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6,288
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15,212
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Total current assets
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6,365,138
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7,557,596
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Property and equipment, net
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635,518
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747,937
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Other assets
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-
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40,000
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Total assets
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$
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7,000,656
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$
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8,345,533
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LIABILITIES AND SHAREHOLDERS' DEFICIT
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CURRENT LIABILITIES:
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Notes payable
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$
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73,331
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$
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27,474
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Accounts payable
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4,750,794
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5,410,146
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Accrued expenses
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482,234
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497,088
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Current portion of capital lease obligations
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230,215
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227,880
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Deferred revenue
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2,745,033
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2,680,361
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Total current liabilities
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8,281,607
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8,842,949
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LONG TERM LIABILITIES:
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Deferred revenue
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1,500,000
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2,000,000
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Capital lease obligations
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186,258
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149,892
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Total long term liabilities
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1,686,258
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2,149,892
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Total liabilities
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9,967,865
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10,992,841
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COMMITMENTS AND CONTINGENCIES:
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SHAREHOLDERS' 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 authorized,
1,276,750 shares issued and outstanding (liquidation value
$12,767,500)
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2,864,104
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2,864,104
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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 $15,917,556)
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11,692,647
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11,689,018
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Common stock ($.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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48,246,041
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46,742,784
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Accumulated deficit
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(65,811,544
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(63,984,757
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Total shareholders' deficit
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(2,967,209
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(2,647,308
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Total liabilities and shareholders' deficit
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$
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7,000,656
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$
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8,345,533
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View source version on businesswire.com: http://www.businesswire.com/news/home/20161114005082/en/
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