InsPro Technologies Corporation Announces Second Quarter 2013 Financial Results
InsPro Technologies Corporation Announces Second 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 costs, today announced its financial results for the quarter ended June 30, 2013.
Second Quarter 2013 Highlights
Revenues from continuing operations increased 40% to $4,296,755 in the second quarter of 2013, compared to $3,069,233 in the second quarter of 2012 primarily due to $1,275,000 of license fees recognized upon the completion of the implementation of InsPro Enterprise™ for two clients combined with increased ASP/Hosting and maintenance revenues.
Loss from continuing operations was $26,838 in the second quarter of 2013, compared to a loss of $714,463 in the second 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 $37,439 in the second quarter of 2013, compared to net loss of $5,243,403 in the second quarter of 2012. The second quarter 2013 net loss included a non-cash loss on the change of the fair value of warrant liability of $102,400 while the second quarter 2012 net loss included a non-cash loss of $4,632,623 on the change in the fair value of the warrant liability.
Year-to-Date 2013 Highlights
Revenues from continuing operations increased 63% to $8,889,578 in the first half of 2013, compared to $5,462,160 in the first half of 2012 primarily due to $2,475,000 of license fees recognized upon the completion of the implementation of InsPro Enterprise for three clients combined with increased professional services, ASP/Hosting and maintenance revenues.
Loss from continuing operations was $91,630 in the first half of 2013, compared to a loss of $1,458,980 in the first half of 2012.
Net loss was $275,931 in the first half of 2013, compared to net loss of $5,710,200 in the first half of 2012. The first half 2013 net loss included a non-cash loss on the change of the fair value of warrant liability of $382,199 while the first half 2012 net loss included a non-cash loss of $4,508,078 on the change in the fair value of the warrant liability.
Anthony R. Verdi, Chief Executive Officer, stated, "We are pleased with the growth in both our client base and revenue. The financial results for the first half of the year met our expectations and we continued to invest heavily in InsPro Enterprise™ product development. The breadth and depth of product support of the InsPro Enterprise platform is expanding with particular recent emphasis on Annuities and UL as well as True Group. We are encouraged by the growing market interest in our technology. The combination of broader product support and the increase in TPA channel partners is expanding the addressable market for our unique technology. 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.
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'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 June 30, | For the Six Months Ended June 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Revenues | $ | 4,296,755 | $ | 3,069,233 | $ | 8,889,578 | $ | 5,462,160 | ||||||||||||
Cost of revenues | 3,054,759 | 2,795,255 | 6,427,135 | 4,998,316 | ||||||||||||||||
Gross profit | 1,241,996 | 273,978 | 2,462,443 | 463,844 | ||||||||||||||||
Selling, general and administrative expenses: | ||||||||||||||||||||
Salaries, employee benefits and related taxes | 671,391 | 593,626 | 1,323,355 | 1,155,204 | ||||||||||||||||
Advertising and other marketing | 93,898 | 27,785 | 150,070 | 60,317 | ||||||||||||||||
Depreciation and amortization | 39,262 | 39,436 | 77,475 | 70,159 | ||||||||||||||||
Rent, utilities, telephone and communications | 98,969 | 90,377 | 192,391 | 181,701 | ||||||||||||||||
Professional fees | 174,646 | 106,744 | 441,824 | 208,502 | ||||||||||||||||
Other general and administrative | 190,668 | 130,473 | 368,959 | 246,941 | ||||||||||||||||
Total selling, general and administrative expenses | 1,268,835 | 988,441 | 2,554,073 | 1,922,824 | ||||||||||||||||
Loss from operations | (26,838 | ) | (714,463 | ) | (91,630 | ) | (1,458,980 | ) | ||||||||||||
Gain from discontinued operations | 101,005 | 116,434 | 214,759 | 270,276 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on the change of the fair value of warrant liability | (102,400 | ) | (4,632,623 | ) | (382,199 | ) | (4,508,078 | ) | ||||||||||||
Interest income | - | 1,305 | - | 3,589 | ||||||||||||||||
Interest expense | (9,206 | ) | (13,957 | ) | (16,861 | ) | (17,007 | ) | ||||||||||||
Total other income (expense) | (111,606 | ) | (4,645,275 | ) | (399,060 | ) | (4,521,496 | ) | ||||||||||||
Net loss | $ | (37,439 | ) | $ | (5,243,304 | ) | $ | (275,931 | ) | $ | (5,710,200 | ) | ||||||||
Net income (loss) per common share - basic and diluted: | ||||||||||||||||||||
Loss from operations | $ | (0.00 | ) | $ | (0.13 | ) | $ | (0.02 | ) | $ | (0.15 | ) | ||||||||
Gain from discontinued operations | 0.00 | 0.00 | 0.01 | 0.01 | ||||||||||||||||
Net loss per common share | $ | - | $ | (0.13 | ) | $ | (0.01 | ) | $ | (0.14 | ) | |||||||||
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 | ||||||||||
June 30, 2013 | December 31, 2012 | |||||||||
ASSETS | ||||||||||
CURRENT ASSETS: | ||||||||||
Cash | $ | 2,730,609 | $ | 3,347,689 | ||||||
Accounts receivable, net | 1,622,751 | 1,706,414 | ||||||||
Prepaid expenses | 449,475 | 236,719 | ||||||||
Other current assets | 1,409 | 1,723 | ||||||||
Assets of discontinued operations | 38,145 | 63,519 | ||||||||
Total current assets | 4,842,389 | 5,356,064 | ||||||||
Property and equipment, net | 1,161,949 | 1,422,043 | ||||||||
Other assets | 70,000 | 70,000 | ||||||||
Total assets | $ | 6,074,338 | $ | 6,848,107 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES: | ||||||||||
Notes payable | $ | 617,484 | $ | 551,985 | ||||||
Accounts payable | 1,019,078 | 1,561,403 | ||||||||
Accrued expenses | 498,169 | 523,324 | ||||||||
Current portion of capital lease obligations | 59,519 | 61,849 | ||||||||
Deferred revenue | 1,292,659 | 1,680,833 | ||||||||
Total current liabilities | 3,486,909 | 4,379,394 | ||||||||
LONG TERM LIABILITIES: | ||||||||||
Warrant liability | 614,399 | 225,000 | ||||||||
Capital lease obligations | 51,261 | 83,510 | ||||||||
Total long term liabilities | 665,660 | 308,510 | ||||||||
Total liabilities | 4,152,569 | 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) | 2,864,104 | 2,864,104 | ||||||||
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 $9,892,134, respectively) | 6,617,812 | 6,617,812 | ||||||||
Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 shares issued and outstanding) | 41,543 | 41,543 | ||||||||
Additional paid-in capital | 43,354,835 | 43,317,338 | ||||||||
Accumulated deficit | (50,956,525 | ) | (50,680,594 | ) | ||||||
Total shareholders' equity | 1,921,769 | 2,160,203 | ||||||||
Total liabilities and shareholders' equity | $ | 6,074,338 | $ | 6,848,107 | ||||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
For the Six Months Ended June 30 | ||||||||||
2013 | 2012 | |||||||||
Cash Flows From Operating Activities: | ||||||||||
Net (loss) income | $ | (275,931 | ) | $ | (5,710,200 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
Depreciation and amortization | 346,814 | 461,756 | ||||||||
Stock-based compensation | 37,497 | 50,754 | ||||||||
Loss on change of fair value of warrant liability | 382,199 | 4,508,078 | ||||||||
Changes in assets and liabilities: | ||||||||||
Accounts receivable | ||||||||||
