InsPro Technologies Corporation Announces Fourth Quarter 2019 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, 2019.

Fourth Quarter 2019 Highlights

  • Revenues were $4,316,492 in the Fourth Quarter of 2019; a 15% decrease as compared to $5,051,123 in the Fourth Quarter of 2018. The decrease was the result of the Company having largely completed implementation services to what was our largest client in 2018 partially offset by software license and reseller fee revenue earned from other clients.
  • Net income was $416,916 in the Fourth Quarter of 2019 as compared to net income of $309,410 in the Fourth Quarter of 2018. Net income in the Fourth Quarter of 2019 was favorably impacted by software license and reseller fee revenue which, along with lower employee and IT consulting staffing, partially offset the decrease in implementation services revenue from our largest client in 2018 as compared to the Fourth Quarter 2018.

2019 Full Year Highlights

  • Revenues were $14,892,216 in 2019; a 31% decrease as compared to $21,634,355 in 2018. The decrease was the result of the Company having largely completed implementation services to what was our largest client in 2018.
  • Net loss was $1,194,735 in 2019 as compared to net income of $2,478,455 in 2018. Net loss was unfavorably impacted by lower professional service revenues partially offset by lower employee and IT consulting staffing as compared to 2018.

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. InsPros 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, 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 Corporations 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 Commissions 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 BALANCE SHEETS
As of
December 31, 2019December 31, 2018
 
ASSETS
 
CURRENT ASSETS:
Cash

$

4,259,775

 

$

5,100,660

 

Accounts receivable, net

 

1,469,082

 

 

3,146,597

 

Tax receivable

 

14,631

 

 

13,000

 

Prepaid expenses

 

468,983

 

 

305,643

 

Total current assets

 

6,212,471

 

 

8,565,900

 

 
LONG TERM ASSETS:
Property and equipment, net

 

1,514,055

 

 

594,767

 

Operating lease right of use asset

 

702,867

 

 

 

Prepaid assets

 

135,887

 

 

 

Total long term assets

 

2,352,809

 

 

594,767

 

 
Total assets

$

8,565,280

 

$

9,160,667

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Notes payable

$

41,869

 

$

39,025

 

Accounts payable

 

1,134,580

 

 

1,213,758

 

Accrued expenses

 

327,800

 

 

905,531

 

Current portion of finance lease obligations

 

149,992

 

 

115,771

 

Current portion of equipment loans

 

854,205

 

 

 

Current portion of operating lease obligations

 

326,270

 

 

 

Deferred revenue

 

3,098,718

 

 

2,850,976

 

Income tax payable

 

 

 

141,000

 

 
Total current liabilities

 

5,933,434

 

 

5,266,061

 

 
LONG TERM LIABILITIES:
Deferred revenue, less current portion

 

 

 

875,000

 

Finance lease obligations, less current portion

 

188,975

 

 

150,559

 

Equipment loans, less current portion

 

385,712

 

 

 

Operating lease obligations, less current portion

 

376,597

 

 

 

 
Total long term liabilities

 

951,284

 

 

1,025,559

 

 
Total liabilities

 

6,884,718

 

 

6,291,620

 

 
 
SHAREHOLDERS’ EQUITY:
Preferred stock ($.001 par value; 20,000,000 shares authorized)
Series A convertible preferred stock; 3,437,500 shares designated, 1,270,250
shares issued and outstanding (liquidation value $12,702,500)

 

1,271

 

 

1,271

 

Series B convertible preferred stock; 11,000,000 shares designated, 5,307,212
shares issued and outstanding (liquidation value $15,921,636)

 

5,307

 

 

5,307

 

Series C convertible preferred stock; 4,000,000 shares designated, 1,254,175
shares issued and outstanding (liquidation value $6,270,875)

 

1,254

 

 

1,254

 

Common stock ($.001 par value; 750,000,000 shares authorized,
41,673,655 shares issued and outstanding)

 

41,673

 

 

41,673

 

Additional paid-in capital

 

65,377,611

 

 

65,371,361

 

Accumulated deficit

 

(63,746,554

)

 

(62,551,819

)

 
Total shareholders’ equity

 

1,680,562

 

 

2,869,047

 

 
Total liabilities and shareholders’ equity

$

8,565,280

 

$

9,160,667

 

INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 

For the Three Months Ending December 31,

 

For the Years Ending December 31,

2019

 

2018

 

2019

 

2018

 
 
 
Revenues

$

4,316,492

 

$

5,051,123

 

$

14,892,216

 

$

21,634,355

 

 
Cost of revenues

 

2,548,977

 

 

3,390,773

 

 

11,275,207

 

 

14,067,286

 

 
Gross profit

 

1,767,515

 

 

1,660,350

 

 

3,617,009

 

 

7,567,069

 

 
Selling, general and administrative expenses

 

1,318,255

 

 

1,348,770

 

 

4,682,497

 

 

4,926,892

 

 
(Loss) income from operations

 

449,260

 

 

311,580

 

 

(1,065,488

)

 

2,640,177

 

 
Other income (expense):
Interest expense

 

(32,344

)

 

(9,170

)

 

(129,247

)

 

(30,722

)

Total other expense

 

(32,344

)

 

(9,170

)

 

(129,247

)

 

(30,722

)

(Loss) income before income taxes

 

416,916

 

 

302,410

 

 

(1,194,735

)

 

2,609,455

 

 
Provision for income taxes

 

 

 

(7,000

)

 

 

 

131,000

 

 
Net (loss) income

 

416,916

 

 

309,410

 

$

(1,194,735

)

$

2,478,455

 

 
Net (loss) income

$

416,916

 

$

309,410

 

$

(1,194,735

)

$

2,478,455

 

 
 
Net (loss) income per common share – basic

$

0.01

 

$

0.01

 

$

(0.03

)

$

0.06

 

Net (loss) income per common share – fully diluted

$

 

$

 

$

(0.03

)

$

0.01

 

 
Weighted average common shares outstanding – basic

 

41,673,655

 

 

41,543,655

 

 

41,673,655

 

 

41,673,655

 

Weighted average common shares outstanding – fully diluted

 

198,306,395

 

 

198,306,395

 

 

41,673,655

 

 

198,306,395

 

Evan Mullin

Director, Sales & Marketing

InsPro Technologies, LLC

610.872.6135

[email protected]