InsPro Technologies Corporation Announces First Quarter 2013 Financial Results

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InsPro Technologies Corporation Announces First Quarter 2013 Financial Results

RADNOR, Pa.--(BUSINESS WIRE)-- InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading provider of Life and Health core policy administration software that enables insurance carriers and third party administrators to quickly respond to evolving market needs, improve customer service and reduce operating cost today announced its financial results for the quarter ended March 31, 2013.

First Quarter 2013 Highlights

  • Revenues from continuing operations increased 92% to $4,592,823 in the first quarter of 2013, compared to $2,392,927 in the first quarter of 2012 due to increases in Professional Services, ASP/Hosting and Maintenance revenues and a $1,200,000 license fee recognized upon the completion of the implementation of InsPro Enterprise for a client.
  • Loss from continuing operations was $64,791 in the first quarter of 2013, compared to a loss of $744,517 in the first quarter of 2012. The results from continuing operations in 2013 were favorably impacted by the growth in revenue partially offset by higher expenses.
  • Net loss was $238,492 in the first quarter of 2013, compared to net loss of $466,896 in the first quarter of 2012. The first quarter 2013 net loss included a non cash loss on the change of the fair value of warrant liability of $279,799 while the first quarter 2012 net loss included a non cash gain of $124,545 on the change in the fair value of the warrant liability.

Anthony R. Verdi, Chief Executive Officer, stated, "The first quarter met our expectations as we continued delivering real value to our growing client base while investing heavily to enhance the breadth and depth of our software platform, InsPro Enterprise. Earlier in the first quarter we jointly announced the expansion of an important strategic partnership and the availability of Annuity product support, both representing public validation of our mission to provide the most comprehensive technology solution available to the Life and Health insurance policy administration market."

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.

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 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) 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, 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 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 March 31,
20132012
 
Revenues$4,592,823$2,392,927
 
Cost of revenues3,233,4172,025,949
  
Gross profit 1,359,406  366,978 
 
Selling, general and administrative expenses:
Salaries, employee benefits and related taxes651,964561,578
Advertising and other marketing56,17232,532
Depreciation and amortization177,172207,835
Rent, utilities, telephone and communications93,42191,324
Professional fees267,178101,758
Other general and administrative 178,290  116,468 
 
 1,424,197  1,111,495 
 
Loss from operations (64,791) (744,517)
 
Gain from discontinued operations113,753153,842
 
Other income (expense):
Gain (loss) on the change of the fair value of warrant liability(279,799)124,545
Interest income-2,284
Interest expense (7,655) (3,050)
 
Total other income (expense) (287,454) 123,779 
 
Net loss$(238,492)$(466,896)
 
Net income (loss) per common share - basic and diluted:
Income (loss) from operations$(0.01)$(0.01)
Gain from discontinued operations 0.00  0.00 
Net loss per common share$(0.01)$(0.01)
 
Weighted average common shares outstanding - basic and diluted 41,543,655  41,543,655 
 
 
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
March 31, 2013December 31, 2012
ASSETS
 
CURRENT ASSETS:
Cash$3,085,772$3,347,689
Accounts receivable2,376,0541,706,414
Prepaid expenses240,882236,719
Other current assets7,4271,723
Assets of discontinued operations 40,475  63,519 
 
Total current assets5,750,6105,356,064
 
Property and equipment, net1,313,7591,422,043
Other assets 70,000  70,000 
 
Total assets$7,134,369 $6,848,107 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Note payable$525,000$551,985
Accounts payable1,136,1101,561,403
Accrued expenses585,218523,324
Current portion of capital lease obligations58,81461,849
Deferred revenue 2,311,056  1,680,833 
 
Total current liabilities 4,616,198  4,379,394 
 
LONG TERM LIABILITIES:
Warrant liability511,999225,000
Capital lease obligations 66,278  83,510 
 
Total long term liabilities 578,277  308,510 
 
Total liabilities 5,194,475  4,687,904 
 
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)

2,864,1042,864,104

Series B convertible preferred stock; 5,000,000 shares authorized, 3,309,378 and 3,297,378 shares issued and outstanding (liquidation value $9,928,134 and $9,892,134)

6,617,8126,617,812

Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 shares issued and outstanding)

41,54341,543
Additional paid-in capital43,335,52143,317,338
Accumulated deficit (50,919,086) (50,680,594)
 
Total shareholders' equity 1,939,894  2,160,203 
 
Total liabilities and shareholders' equity$7,134,369 $6,848,107 
 
 
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
For the Three Months Ended March 31
20132012
Cash Flows From Operating Activities:
Net (loss) income$(238,492)$(466,896)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization177,172207,835
Stock-based compensation18,18325,377
Loss (Gain) on change of fair value of warrant liability279,799(124,545)
Changes in assets and liabilities:
Accounts receivable(669,640)(28,383)
Prepaid expenses(4,163)24,907
Other current assets(5,704)1,640
Accounts payable(425,293)71,638
Accrued expenses61,894(171,617)
Deferred revenue630,223778,700
Assets of discontinued operations 23,044  32,209 
 
Net cash (used in) / provided by operating activities (152,977) 350,865 
 
Cash Flows From Investing Activities:
Purchase of property and equipment (68,888) (118,904)
 
Net cash used in investing activities (68,888) (118,904)
 
Cash Flows From Financing Activities:
Gross proceeds from sale of preferred stock and warrants36,000-
Fees paid in connection with sale of preferred stock and warrants(28,800)-
Payments on notes payable(26,985)(8,586)
Payments on capital leases (20,267) (29,707)
 
Net cash used in financing activities (40,052) (38,293)
 
Net (decrease) increase in cash(261,917)193,668
 
Cash - beginning of the period 3,347,689  3,702,053 
 
Cash - end of the period$3,085,772 $3,895,721 
 



InsPro Technologies Corporation
Anthony R. Verdi, CEO
484-654-2200
finance@inspro.com

KEYWORDS:   United States  North America  Pennsylvania

INDUSTRY KEYWORDS:

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