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| 8-K - FORM 8-K - InsPro Technologies Corp | v313429_8k.htm |
InsPro Technologies Corporation Announces
First Quarter 2012
Financial Results
Radnor, PA – May 15, 2012 – InsPro Technologies Corporation (OTC Bulletin Board: ITCC), a leading software innovator and provider of an insurance administration and marketing system, InsPro Enterprise, used by insurance carriers and third party administrators, that supports group and individual business lines and efficiently processes agent, direct market, worksite and web site generated business, today announced its financial results for the quarter ended March 31, 2012.
First Quarter 2012 Highlights
| · | Revenues from continuing operations increased 2% to $2,392,927 in the first quarter of 2012, compared to $2,342,869 in the first quarter of 2011 due primarily to increased professional services fees and increased ASP revenue partially offset by lower license fee revenue pertaining to the completion of our implementation of InsPro Enterprise for a client in 2011. |
| · | Loss from continuing operations was $744,517 in the first quarter of 2012, compared to a loss of $501,709 in the first quarter of 2011. The increased loss was the result of higher staffing and professional fee expense related to the increase in the number of clients and modifications to InsPro Enterprise’s functionality. |
| · | Net loss was $466,896 in the first quarter of 2012, compared to net income of $27,641 in the first quarter of 2011. |
Anthony R. Verdi, Chief Executive Officer, stated, “We are pleased to report the financial progress of the Company in the form of continued modest revenue growth in 2012. More importantly, however, we have added new clients and therefore additional partnerships in 2012 to date and our prospect pipeline remains strong. We plan to continue to invest in our product, InsPro Enterprise, and in our client service. We are looking forward to reporting to you throughout 2012.”
About InsPro Enterprise
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. InsPro Enterprise was designed as a single technology solution to manage all insurance processing requirements and built from the ground up to support both group and individual policies. 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.
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 IT support costs, increase customer retention, 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 the effects of existing and new clients, and the investments in and potential of our technology platform. 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 Corporation’s most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission. These documents are 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.
Contact:
Anthony R. Verdi, CEO, CFO and COO
484-654-2200
finance@inspro.com
– financial tables to follow –
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| Revenues | $ | 2,392,927 | $ | 2,342,869 | ||||
| Cost of revenues | 2,025,949 | 1,658,861 | ||||||
| Gross profit | 366,978 | 684,008 | ||||||
| Selling, general and administrative expenses: | ||||||||
| Salaries, employee benefits and related taxes | 561,578 | 653,122 | ||||||
| Advertising and other marketing | 32,532 | 23,477 | ||||||
| Depreciation and amortization | 207,835 | 181,718 | ||||||
| Rent, utilities, telephone and communications | 91,324 | 97,448 | ||||||
| Professional fees | 101,758 | 104,537 | ||||||
| Other general and administrative | 116,468 | 125,415 | ||||||
| 1,111,495 | 1,185,717 | |||||||
| Loss from operations | (744,517 | ) | (501,709 | ) | ||||
| Gain from discontinued operations | 153,842 | 219,020 | ||||||
| Other income (expense): | ||||||||
| Gain on the change of the fair value of warrant liability | 124,545 | 309,294 | ||||||
| Interest income | 2,284 | 8,301 | ||||||
| Interest expense | (3,050 | ) | (7,265 | ) | ||||
| Total other income (expense) | 123,779 | 310,330 | ||||||
| Net income (loss) | $ | (466,896 | ) | $ | 27,641 | |||
| Net income (loss) per common share - basic and diluted: | ||||||||
| Income (loss) from operations | $ | (0.01 | ) | $ | (0.01 | ) | ||
| Gain from discontinued operations | 0.00 | 0.01 | ||||||
| Net income (loss) per common share | $ | (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, 2012 | December 31, 2011 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 3,895,721 | $ | 3,702,053 | ||||
| Accounts receivable, net | 1,534,617 | 1,506,234 | ||||||
| Tax receivable | 766 | 766 | ||||||
| Prepaid expenses | 91,742 | 116,649 | ||||||
| Other current assets | 499 | 2,139 | ||||||
| Assets of discontinued operations | 71,793 | 104,002 | ||||||
| Total current assets | 5,595,138 | 5,431,843 | ||||||
| Property and equipment, net | 494,446 | 496,692 | ||||||
| Intangibles, net | 173,366 | 260,050 | ||||||
| Other assets | 80,608 | 80,608 | ||||||
| Total assets | $ | 6,343,558 | $ | 6,269,193 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Note payable | $ | - | $ | 8,586 | ||||
| Accounts payable | 716,201 | 644,563 | ||||||
| Accrued expenses | 349,766 | 521,383 | ||||||
| Current portion of capital lease obligations | 93,631 | 109,872 | ||||||
| Deferred revenue | 1,401,200 | 622,500 | ||||||
| Total current liabilities | 2,560,798 | 1,906,904 | ||||||
| LONG TERM LIABILITIES: | ||||||||
| Warrant liability | 1,549,681 | 1,674,226 | ||||||
| Capital lease obligations | 100,477 | 113,943 | ||||||
| Total long term liabilities | 1,650,158 | 1,788,169 | ||||||
| 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, 2,797,379 shares issued and outstanding (liquidation value $8,392,137) | 5,427,604 | 5,427,604 | ||||||
| Common stock ($.001 par value; 300,000,000 shares authorized, 41,543,655 shares issued and outstanding) | 41,543 | 41,543 | ||||||
| Additional paid-in capital | 37,063,696 | 37,038,318 | ||||||
| Accumulated deficit | (43,264,345 | ) | (42,797,449 | ) | ||||
| Total shareholders' equity | 2,132,602 | 2,574,120 | ||||||
| Total liabilities and shareholders' equity | $ | 6,343,558 | $ | 6,269,193 | ||||
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net (loss) income | $ | (466,896 | ) | $ | 27,641 | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 207,835 | 181,718 | ||||||
| Stock-based compensation | 25,377 | 17,777 | ||||||
| (Gain) on change of fair value of warrant liability | (124,545 | ) | (309,294 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (28,383 | ) | (860,523 | ) | ||||
| Tax receivable | - | 2,840 | ||||||
| Prepaid expenses | 24,907 | 4,527 | ||||||
| Other current assets | 1,640 | (316 | ) | |||||
| Accounts payable | 71,638 | (28,720 | ) | |||||
| Accrued expenses | (171,617 | ) | 99,451 | |||||
| Due to related parties | - | (8,370 | ) | |||||
| Deferred revenue | 778,700 | 809,613 | ||||||
| Assets of discontinued operations | 32,209 | (215,012 | ) | |||||
| Net cash used in operating activities | 350,865 | (278,668 | ) | |||||
| Cash Flows From Investing Activities: | ||||||||
| Purchase of property and equipment | (118,904 | ) | (29,816 | ) | ||||
| Net cash used in investing activities | (118,904 | ) | (29,816 | ) | ||||
| Cash Flows From Financing Activities: | ||||||||
| Payments on note payable | (8,586 | ) | (17,313 | ) | ||||
| Payments on capital leases | (29,707 | ) | (43,943 | ) | ||||
| Restricted cash in connection with letters of credit | - | 1,152,573 | ||||||
| Net cash (used) provided by financing activities | (38,293 | ) | 1,091,317 | |||||
| Net increase in cash | 193,668 | 782,833 | ||||||
| Cash - beginning of the period | 3,702,053 | 4,429,026 | ||||||
| Cash - end of the period | $ | 3,895,721 | $ | 5,211,859 | ||||