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 six month periods
ended June 30, 2015.
Second Quarter 2015 Highlights
-
Revenues were $5,588,153 in the Second Quarter of 2015; a 31% increase
as compared to the $4,267,656 in the Second Quarter of 2014. Increases
of $850,000 in sales of software licenses, which pertained to a
license fee for InsPro Enterprise™ recognized for a recently
implemented client, $377,804 in ASP/hosting services, and increases of
$62,256 in Maintenance revenues all due to the growth in clients,
accounts for the increase in Revenue.
-
Net loss was $1,489,166 in the Second Quarter of 2015 as compared to a
net loss of $2,487,141 in the Second Quarter of 2014. The net loss in
the Second Quarter of 2015 was favorably impacted by license fee
revenue and lower equity compensation expense in Second quarter 2015
as compared to Second quarter 2014 partially offset by higher cost of
revenues, a result of increased utilization of several outside
consulting firms, to assist with modifications to InsPro Enterprise’s
functionality and new clients’ implementations of InsPro Enterprise.
In Third Quarter of 2014 the Company engaged a third party consulting
firm to be a preferred system integrator.
Year-to-Date 2015 Highlights
-
Revenues were $9,320,926 in the six months ended June 30, 2015; a 19%
increase as compared to the $7,844,255 in the six months ended June 30
2014. Increases of $1,036,624 in sales of software licenses, which
pertained to a license fee for InsPro Enterprise recognized for
a recently implemented client and the re-sale of third party software
licenses to clients that are in the process of implementing InsPro
Enterprise, $798,907 in ASP/hosting services, and increases of
$128,448 in Maintenance revenues all due to the growth in clients,
accounts for the increase in Revenue.
-
Net loss was $4,710,727 in the six months ended June 30, 2015 as
compared to a net loss of $2,988,900 in the six months ended June 30,
2014. The net loss in the six months ended June 30, 2015 was favorably
impacted by higher cost of revenues, a result of increased utilization
of several outside consulting firms, to assist with modifications to
InsPro Enterprise’s functionality and new clients’ implementations of InsPro
Enterprise, partially offset by higher license fee revenue and
lower equity compensation expense in the six months ended June 30,
2015 as compared to the same time period last year.
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) 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 June 30,
|
|
For the Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
5,588,153
|
|
|
$
|
4,267,656
|
|
|
$
|
9,320,926
|
|
|
$
|
7,844,255
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
5,600,260
|
|
|
|
3,614,767
|
|
|
|
11,015,370
|
|
|
|
6,567,200
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
(12,107
|
)
|
|
|
652,889
|
|
|
|
(1,694,444
|
)
|
|
|
1,277,055
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
Salaries, employee benefits and related taxes
|
|
|
682,823
|
|
|
|
2,385,650
|
|
|
|
1,699,513
|
|
|
|
3,043,145
|
|
|
Advertising and other marketing
|
|
|
69,230
|
|
|
|
91,319
|
|
|
|
91,649
|
|
|
|
143,248
|
|
|
Depreciation
|
|
|
21,877
|
|
|
|
42,139
|
|
|
|
64,547
|
|
|
|
78,854
|
|
|
Rent, utilities, telephone and communications
|
|
|
90,223
|
|
|
|
103,427
|
|
|
|
177,936
|
|
|
|
194,089
|
|
|
Professional fees
|
|
|
317,250
|
|
|
|
366,434
|
|
|
|
497,396
|
|
|
|
537,099
|
|
|
Other general and administrative
|
|
|
304,606
|
|
|
|
211,564
|
|
|
|
504,451
|
|
|
|
392,979
|
|
|
|
|
|
|
|
|
|
|
|
|
Total selling, general and administrative expenses
|
|
|
1,486,009
|
|
|
|
3,200,533
|
|
|
|
3,035,492
|
|
|
|
4,389,414
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss from continuing operations
|
|
|
(1,498,116
|
)
|
|
|
(2,547,644
|
)
|
|
|
(4,729,936
|
)
|
|
|
(3,112,359
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Gain on the change of the fair value of warrant liability
|
|
|
-
|
|
|
|
10,120
|
|
|
|
-
|
|
|
|
10,120
|
|
|
Gain on the sale of equipment
|
|
|
20,669
|
|
|
|
-
|
|
|
|
20,669
|
|
|
|
-
|
|
|
Interest expense
|
|
|
(52,770
|
)
|
|
|
(11,234
|
)
|
|
|
(81,196
|
)
|
|
|
(18,678
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense
|
|
|
(32,101
|
)
|
|
|
(1,114
|
)
|
|
|
(60,527
|
)
|
|
|
(8,558
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
|
(1,530,217
|
)
|
|
|
(2,548,758
|
)
|
|
|
(4,790,463
|
)
|
|
|
(3,120,917
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
|
|
41,018
|
|
|
|
61,617
|
|
|
|
79,736
|
|
|
|
132,017
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,489,199
|
)
|
|
$
|
(2,487,141
|
)
|
|
$
|
(4,710,727
|
)
|
|
$
|
(2,988,900
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic and diluted:
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
$
|
(0.04
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.07
|
)
|
|
Income from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net loss per common share
|
|
$
|
(0.04
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.11
|
)
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash
|
|
$
|
3,179,256
|
|
|
$
|
3,431,001
|
|
|
Accounts receivable, net
|
|
|
2,622,563
|
|
|
|
2,244,812
|
|
|
Prepaid expenses
|
|
|
366,236
|
|
|
|
321,228
|
|
|
Other current assets
|
|
|
2,642
|
|
|
|
2,796
|
|
|
Assets of discontinued operations
|
|
|
16,598
|
|
|
|
19,783
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
6,187,295
|
|
|
|
6,019,620
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
810,676
|
|
|
|
1,104,441
|
|
|
Other assets
|
|
|
50,000
|
|
|
|
50,000
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
7,047,971
|
|
|
$
|
7,174,061
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Notes payable
|
|
$
|
95,575
|
|
|
$
|
549,329
|
|
|
Notes payable to related party and accrued interest
|
|
|
2,054,358
|
|
|
|
-
|
|
|
Accounts payable
|
|
|
5,705,305
|
|
|
|
4,834,128
|
|
|
Accrued expenses
|
|
|
602,424
|
|
|
|
373,310
|
|
|
Current portion of capital lease obligations
|
|
|
169,036
|
|
|
|
182,388
|
|
|
Due to related parties
|
|
|
500,000
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
3,503,894
|
|
|
|
2,251,688
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
12,630,592
|
|
|
|
8,190,843
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES:
|
|
|
|
|
|
Warrant liability
|
|
|
-
|
|
|
|
5,760
|
|
|
Capital lease obligations
|
|
|
145,730
|
|
|
|
231,207
|
|
|
|
|
|
|
|
|
Total long term liabilities
|
|
|
145,730
|
|
|
|
236,967
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
12,776,322
|
|
|
|
8,427,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' DEFICIT:
|
|
|
|
|
|
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 shares authorized,
41,543,655 shares issued and outstanding)
|
|
|
41,543
|
|
|
|
41,543
|
|
|
Additional paid-in capital
|
|
|
45,975,099
|
|
|
|
45,738,974
|
|
|
Accumulated deficit
|
|
|
(62,319,016
|
)
|
|
|
(57,608,289
|
)
|
|
|
|
|
|
|
|
Total shareholders' deficit
|
|
|
(5,728,351
|
)
|
|
|
(1,253,749
|
)
|
|
|
|
|
|
|
|
Total liabilities and shareholders' deficit
|
|
$
|
7,047,971
|
|
|
$
|
7,174,061
|
|
|
|
|
|
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(4,710,727
|
)
|
|
$
|
(2,988,900
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation
|
|
|
354,908
|
|
|
|
383,686
|
|
|
Stock-based compensation
|
|
|
230,365
|
|
|
|
1,707,922
|
|
|
(Gain) on change of fair value of warrant liability
|
|
|
-
|
|
|
|
(10,120
|
)
|
|
(Gain) on the sale of equipment
|
|
|
(20,669
|
)
|
|
|
-
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(377,751
|
)
|
|
|
(505,663
|
)
|
|
Prepaid expenses
|
|
|
(45,008
|
)
|
|
|
(76,633
|
)
|
|
Other current assets
|
|
|
154
|
|
|
|
(1,835
|
)
|
|
Accounts payable
|
|
|
871,177
|
|
|
|
204,980
|
|
|
Accrued interest on secured note from related party
|
|
|
54,358
|
|
|
|
-
|
|
|
Accrued expenses
|
|
|
229,114
|
|
|
|
249,940
|
|
|
Deferred revenue
|
|
|
1,252,206
|
|
|
|
1,316,930
|
|
|
Assets of discontinued operations
|
|
|
3,185
|
|
|
|
9,506
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities
|
|
|
(2,158,688
|
)
|
|
|
289,813
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(70,691
|
)
|
|
|
(203,583
|
)
|
|
Sale of equipment
|
|
|
30,217
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(40,474
|
)
|
|
|
(203,583
|
)
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
Payments on notes payable
|
|
|
(453,754
|
)
|
|
|
(44,859
|
)
|
|
Gross proceeds from secured note from related party
|
|
|
2,000,000
|
|
|
|
-
|
|
|
Gross proceeds loan payable to related party
|
|
|
500,000
|
|
|
|
-
|
|
|
Payments on capital leases
|
|
|
(98,829
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
1,947,417
|
|
|
|
(44,859
|
)
|
|
|
|
|
|
|
|
Net decrease in cash
|
|
|
(251,745
|
)
|
|
|
41,371
|
|
|
|
|
|
|
|
|
Cash - beginning of the period
|
|
|
3,431,001
|
|
|
|
2,569,536
|
|
|
|
|
|
|
|
|
Cash - end of the period
|
|
$
|
3,179,256
|
|
|
$
|
2,610,907
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150814005028/en/
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