[November 14, 2014] |
|
InsPro Technologies Corporation Announces Third Quarter 2014 Financial Results
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 quarter ended September 30, 2014.
Third Quarter 2014 Highlights
-
Revenues were $5,973,754 in the third quarter of 2014, a 109% increase
as compared to the $2,856,841 in the third quarter of 2013. The
revenue increase was due to an increase of $1,460,459 in professional
services from several ongoing implementations, a $1,300,000 license
for an InsPro Enterprise™ upgrade, and an increase in ASP/hosting and
maintenance revenues resulting from client growth.
-
Operating loss from continuing operations was $297,802 in the third
quarter of 2014 as compared to a loss of $1,020,366 in the third
quarter of 2013. The results from operations in the third quarter of
2014 were favorably impacted by $1,300,000 of license fees, partially
offset by a higher cost of revenues attributable to increased
utilization of preferred system integration partners assisting with
modifications to InsPro Enterprise's functionality, and new clients'
implementations of InsPro Enterprise.
-
Net loss was $213,694 in the third quarter of 2014 as compared to a
net loss of $633,263 in the third quarter of 2013. The net loss in the
third quarter of 2014 as compared to the third quarter of 2013 was
favorably impacted by $1,300,000 of license fee revenue partially
offset by higher cost of revenues and lower gain on the change of the
fair value of warrant liability.
Year-to-Date 2014 Highlights
-
Revenues were $13,818,010 in the first nine months of 2014 as compared
to $11,746,419 in the first nine months of 2013. Revenue growth in the
first nine months of 2014 was a result of a $2,496,725 increase in
professional services, higher ASP/hosting revenue of $579,073, and
$166,598 of higher maintenance revenue, which were all the result of
increased fees from established and recent implementations of InsPro
Enterprise™. Year-to-date growth was partially offset by $1,175,000 of
lower license fees. In the first nine months of 2014, a $1,300,000
license fee for a client upgrade was recognized, while in the first
nine months of 2013, $2,475,000 of license fees were recognized upon
the completion of three client implementations.
-
Operating loss from continuing operations was $3,410,161 in the first
nine months of 2014 as compared to a loss of $1,111,996 in the first
nine months of 2013. Results from operations in the first nine months
of 2014 were unfavorably impacted by $1,694,385 of higher non-cash
equity compensation expense, and $1,175,000 of lower license fees
partially offset by increased revenues from professional services,
ASP/hosting and maintenance.
-
Net loss was $3,202,594 in the first nine months of 2014 as compared
to a net loss of $909,194 in the first nine months of 2013. The net
loss in the first nine months of 2014 included a non-cash gain on the
change of the fair value of warrant liability of $50,600 while the
same period in 2013 included a non-cash loss of $76,199.
Anthony R. Verdi, Chief Executive Officer, stated, "We continued to
generate significant revenue growth in the first nine months of 2014,
the result of our expanding portfolio of clients. We are excited about
the recent selection of Capgemini (News - Alert) as our preferred system integrator,
which represents an investment in our implementation and service
capabilities that we anticipate will enable us to further expand
services to our growing client base. The considerable investments we
made in InsPro Enterprise™ technology has both broadened our addressable
market and raised market interest in our system and services. The
investment we are making with the addition of a preferred system
integrator will enable us to better serve existing and future clients.
We remain optimistic about our future opportunities."
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 Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,973,754
|
|
|
$
|
2,856,841
|
|
|
$
|
13,818,009
|
|
|
$
|
11,746,419
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
4,880,477
|
|
|
|
2,578,498
|
|
|
|
11,447,677
|
|
|
|
9,005,632
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,093,277
|
|
|
|
278,343
|
|
|
|
2,370,332
|
|
|
|
2,740,787
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
Salaries, employee benefits and related taxes
|
|
|
750,226
|
|
|
|
690,616
|
|
|
|
3,793,371
|
|
|
|
2,013,972
|
|
Advertising and other marketing
|
|
|
95,872
|
|
|
|
129,182
|
|
|
|
239,120
|
|
|
|
279,252
|
|
Depreciation
|
|
|
44,471
|
|
|
|
42,082
|
|
|
|
123,325
|
|
|
|
119,557
|
|
Rent, utilities, telephone and communications
|
|
|
91,951
|
|
|
|
95,748
|
|
|
|
286,040
|
|
|
|
288,138
|
|
Professional fees
|
|
|
205,147
|
|
|
|
160,900
|
|
|
|
742,246
|
|
|
|
602,724
|
|
Other general and administrative
|
|
|
203,412
|
|
|
|
180,181
|
|
|
|
596,391
|
|
|
|
549,140
|
|
|
|
|
|
|
|
|
|
|
Total selling, general and administrative expenses
|
|
|
1,391,079
|
|
|
|
1,298,709
|
|
|
|
5,780,493
|
|
|
|
3,852,783
|
|
|
|
|
|
|
|
|
|
|
Operating loss from continuing operations
|
|
|
(297,802
|
)
|
|
|
(1,020,366
|
)
|
|
|
(3,410,161
|
)
|
|
|
(1,111,996
|
)
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Gain (loss) on the change of the fair value of warrant liability
|
|
|
40,480
|
|
|
|
306,000
|
|
|
|
50,600
|
|
|
|
(76,199
|
)
|
Interest expense
|
|
|
(12,850
|
)
|
|
|
(9,395
|
)
|
|
|
(31,528
|
)
|
|
|
(26,256
|
)
|
|
|
|
|
|
|
|
|
|
Total other income (expense)
|
|
|
27,630
|
|
|
|
296,605
|
|
|
|
19,072
|
|
|
|
(102,455
|
)
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
|
(270,172
|
)
|
|
|
(723,761
|
)
|
|
|
(3,391,089
|
)
|
|
|
(1,214,451
|
)
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
|
|
56,478
|
|
|
|
90,498
|
|
|
|
188,495
|
|
|
|
305,257
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(213,694
|
)
|
|
$
|
(633,263
|
)
|
|
$
|
(3,202,594
|
)
|
|
$
|
(909,194
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic and diluted:
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.03
|
)
|
Gain from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
Net loss per common share
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted
|
|
|
41,543,655
|
|
|
|
41,543,655
|
|
|
|
41,543,655
|
|
|
|
41,543,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash
|
|
$
|
2,590,502
|
|
|
$
|
2,569,536
|
|
Accounts receivable, net
|
|
|
4,869,936
|
|
|
|
1,660,564
|
|
Prepaid expenses
|
|
|
298,045
|
|
|
|
200,985
|
|
Other current assets
|
|
|
-
|
|
|
|
2,564
|
|
Assets of discontinued operations
|
|
|
20,076
|
|
|
|
31,540
|
|
|
|
|
|
|
Total current assets
|
|
|
7,778,559
|
|
|
|
4,465,189
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
1,291,766
|
|
|
|
959,902
|
|
Other assets
|
|
|
60,000
|
|
|
|
60,000
|
|
|
|
|
|
|
Total assets
|
|
$
|
9,130,325
|
|
|
$
|
5,485,091
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Notes payable
|
|
$
|
577,604
|
|
|
$
|
550,761
|
|
Accounts payable
|
|
|
3,615,668
|
|
|
|
1,169,251
|
|
Accrued expenses
|
|
|
497,626
|
|
|
|
456,753
|
|
Current portion of capital lease obligations
|
|
|
190,529
|
|
|
|
57,932
|
|
Due to related parties
|
|
|
4,755
|
|
|
|
10,000
|
|
Deferred revenue
|
|
|
3,261,045
|
|
|
|
1,006,875
|
|
|
|
|
|
|
Total current liabilities
|
|
|
8,147,227
|
|
|
|
3,251,572
|
|
|
|
|
|
|
LONG TERM LIABILITIES:
|
|
|
|
|
Warrant liability
|
|
|
556,599
|
|
|
|
607,199
|
|
Capital lease obligations
|
|
|
273,407
|
|
|
|
23,184
|
|
|
|
|
|
|
Total long term liabilities
|
|
|
830,006
|
|
|
|
630,383
|
|
|
|
|
|
|
Total liabilities
|
|
|
8,977,233
|
|
|
|
3,881,955
|
|
|
|
|
|
|
|
|
|
|
|
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,
3,809,378 shares issued and outstanding (liquidation value
$11,428,134)
|
|
|
7,709,919
|
|
|
|
7,709,919
|
|
Common stock ($.001 par value; 400,000,000 and 300,000,000 shares
authorized, 41,543,655 shares issued and outstanding)
|
|
|
41,543
|
|
|
|
41,543
|
|
Additional paid-in capital
|
|
|
45,163,722
|
|
|
|
43,411,172
|
|
Accumulated deficit
|
|
|
(55,626,196
|
)
|
|
|
(52,423,602
|
)
|
|
|
|
|
|
Total shareholders' equity
|
|
|
153,092
|
|
|
|
1,603,136
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
9,130,325
|
|
|
$
|
5,485,091
|
|
|
|
|
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30,
|
|
|
2014
|
|
2013
|
Cash Flows From Operating Activities:
|
|
|
|
|
Net loss
|
|
$
|
(3,202,594
|
)
|
|
$
|
(909,194
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation
|
|
|
611,442
|
|
|
|
522,056
|
|
Stock-based compensation
|
|
|
1,752,550
|
|
|
|
58,165
|
|
(Gain) loss on change of fair value of warrant liability
|
|
|
(50,600
|
)
|
|
|
76,199
|
|
Changes in assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
|
(3,209,372
|
)
|
|
|
(482,782
|
)
|
Prepaid expenses
|
|
|
10,020
|
|
|
|
36,520
|
|
Other current assets
|
|
|
2,564
|
|
|
|
(151
|
)
|
Accounts payable
|
|
|
2,446,417
|
|
|
|
(635,396
|
)
|
Accrued expenses
|
|
|
40,873
|
|
|
|
(44,441
|
)
|
Deferred revenue
|
|
|
2,254,170
|
|
|
|
(354,937
|
)
|
Assets of discontinued operations
|
|
|
11,464
|
|
|
|
32,444
|
|
|
|
|
|
|
Net cash provided (used) in operating activities
|
|
|
661,689
|
|
|
|
(1,701,517
|
)
|
|
|
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
Purchase of property and equipment
|
|
|
(534,300
|
)
|
|
|
(190,261
|
)
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(534,300
|
)
|
|
|
(190,261
|
)
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
Gross proceeds from sale of preferred stock and warrants
|
|
|
-
|
|
|
|
1,536,000
|
|
Fees paid in connection with sale of preferred stock and warrants
|
|
|
-
|
|
|
|
(36,693
|
)
|
Payments on notes payable
|
|
|
(80,237
|
)
|
|
|
(76,717
|
)
|
Payments on capital leases
|
|
|
(26,186
|
)
|
|
|
(47,429
|
)
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(106,423
|
)
|
|
|
1,375,161
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
20,966
|
|
|
|
(516,617
|
)
|
|
|
|
|
|
Cash - beginning of the period
|
|
|
2,569,536
|
|
|
|
3,347,689
|
|
|
|
|
|
|
Cash - end of the period
|
|
$
|
2,590,502
|
|
|
$
|
2,831,072
|
|
|
|
|
|
|
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