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 nine month periods
ended September 30, 2015.
Third Quarter 2015 Highlights
-
Revenues were $6,381,855 in the Third Quarter of 2015, a 7% increase
as compared to the $5,973,754 in the Third Quarter of 2014. Increases
of $1,243,830 in professional services and $435,345 of ASP/hosting
services due to the growth in clients, which was partially offset by
$1,300,000 decline in license fees, accounted for the increase in
Revenue.
-
Net loss was $394,447 in the Third Quarter of 2015 as compared to a
net loss of $213,694 in the Third Quarter of 2014. The net loss in the
Third Quarter of 2015 was unfavorably impacted by lower license fee
revenue, which was partially offset by higher professional services
revenue in Third Quarter 2015 as compared to Third Quarter 2014. The
net loss in Third Quarter 2015 improved for the 2nd consecutive
quarter in 2015.
Year-to-Date 2015 Highlights
-
Revenues were $15,702,781 in the nine months ended September 30, 2015;
a 14% increase as compared to the $13,818,009 in the nine months ended
September 30 2014. Increases of $720,334 in professional services,
$1,234,252 of ASP revenue and $146,567 of maintenance revenue due to
the growth in clients, was partially offset by lower sales of software
licenses in the nine months ended September 30, 2015 as compared to
the same period in 2014.
-
Net loss was $5,105,174 in the nine months ended September 30, 2015 as
compared to a net loss of $3,202,594 in the nine months ended
September 30, 2014. The net loss in the nine months ended September
30, 2015 was unfavorably 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 revenues in the nine months ended September 30, 2015 as
compared to the same time period last year.
Anthony R. Verdi, Chief Financial Officer, stated, “We continued to
generate significant revenue growth in the first nine months of 2015,
the result of our expanding portfolio of clients. Our bottom line
results have improved for the 2nd consecutive quarter in
2015. We received $0.9 million of cash in September and an additional
$1.0 million of cash in October, which was the result of our closing of
2 equity purchase agreements with several existing stockholders. In
addition to cash received, another $2.5 million of liabilities in the
form of notes and loans were converted into equity in the third quarter.
The completion of these transactions strengthened our financial
position. 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 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 September 30,
|
|
For the Nine Months Ended September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
6,381,855
|
|
|
$
|
5,973,754
|
|
|
$
|
15,702,781
|
|
|
$
|
13,818,009
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
5,324,024
|
|
|
|
4,880,477
|
|
|
|
16,339,394
|
|
|
|
11,447,677
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
1,057,831
|
|
|
|
1,093,277
|
|
|
|
(636,613
|
)
|
|
|
2,370,332
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses:
|
|
|
|
|
|
|
|
|
|
Salaries, employee benefits and related taxes
|
|
|
851,594
|
|
|
|
750,226
|
|
|
|
2,551,107
|
|
|
|
3,793,371
|
|
|
Advertising and other marketing
|
|
|
22,986
|
|
|
|
95,872
|
|
|
|
114,635
|
|
|
|
239,120
|
|
|
Depreciation
|
|
|
21,967
|
|
|
|
44,471
|
|
|
|
86,514
|
|
|
|
123,325
|
|
|
Rent, utilities, telephone and communications
|
|
|
92,954
|
|
|
|
91,951
|
|
|
|
270,890
|
|
|
|
286,040
|
|
|
Professional fees
|
|
|
190,334
|
|
|
|
205,147
|
|
|
|
687,730
|
|
|
|
742,246
|
|
|
Other general and administrative
|
|
|
266,559
|
|
|
|
203,412
|
|
|
|
771,010
|
|
|
|
596,391
|
|
|
|
|
|
|
|
|
|
|
|
|
Total selling, general and administrative expenses
|
|
|
1,446,394
|
|
|
|
1,391,079
|
|
|
|
4,481,886
|
|
|
|
5,780,493
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss from continuing operations
|
|
|
(388,563
|
)
|
|
|
(297,802
|
)
|
|
|
(5,118,499
|
)
|
|
|
(3,410,161
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Gain on the change of the fair value of warrant liability
|
|
|
-
|
|
|
|
40,480
|
|
|
|
-
|
|
|
|
50,600
|
|
|
Gain on the sale of equipment
|
|
|
(2,931
|
)
|
|
|
-
|
|
|
|
17,738
|
|
|
|
-
|
|
|
Interest expense
|
|
|
(39,999
|
)
|
|
|
(12,850
|
)
|
|
|
(121,195
|
)
|
|
|
(31,528
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense)
|
|
|
(42,930
|
)
|
|
|
27,630
|
|
|
|
(103,457
|
)
|
|
|
19,072
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
|
|
|
(431,493
|
)
|
|
|
(270,172
|
)
|
|
|
(5,221,956
|
)
|
|
|
(3,391,089
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations
|
|
|
37,046
|
|
|
|
56,478
|
|
|
|
116,782
|
|
|
|
188,495
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(394,447
|
)
|
|
$
|
(213,694
|
)
|
|
$
|
(5,105,174
|
)
|
|
$
|
(3,202,594
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic and diluted:
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
$
|
(0.04
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.08
|
)
|
|
Income from discontinued operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net loss per common share
|
|
$
|
(0.04
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash
|
|
$
|
1,968,421
|
|
|
$
|
3,431,001
|
|
|
Accounts receivable, net
|
|
|
6,532,672
|
|
|
|
2,244,812
|
|
|
Prepaid expenses
|
|
|
260,450
|
|
|
|
321,228
|
|
|
Other current assets
|
|
|
1,185
|
|
|
|
2,796
|
|
|
Assets of discontinued operations
|
|
|
14,107
|
|
|
|
19,783
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
8,776,835
|
|
|
|
6,019,620
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
862,659
|
|
|
|
1,104,441
|
|
|
Other assets
|
|
|
50,000
|
|
|
|
50,000
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
9,689,494
|
|
|
$
|
7,174,061
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Notes payable
|
|
$
|
61,851
|
|
|
$
|
549,329
|
|
|
Accounts payable
|
|
|
6,133,037
|
|
|
|
4,834,128
|
|
|
Accrued expenses
|
|
|
528,942
|
|
|
|
373,310
|
|
|
Current portion of capital lease obligations
|
|
|
225,918
|
|
|
|
182,388
|
|
|
Deferred revenue
|
|
|
2,957,827
|
|
|
|
2,251,688
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
9,907,575
|
|
|
|
8,190,843
|
|
|
|
|
|
|
|
|
LONG TERM LIABILITIES:
|
|
|
|
|
|
Warrant liability
|
|
|
-
|
|
|
|
5,760
|
|
|
Deferred revenue
|
|
|
2,000,000
|
|
|
|
-
|
|
|
Capital lease obligations
|
|
|
212,186
|
|
|
|
231,207
|
|
|
|
|
|
|
|
|
Total long term liabilities
|
|
|
2,212,186
|
|
|
|
236,967
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
12,119,761
|
|
|
|
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; 11,000,000 shares
authorized, 4,972,519 and 3,809,378 shares issued and outstanding
(liquidation value $14,917,557 and $11,428,134)
|
|
|
10,834,414
|
|
|
|
7,709,919
|
|
|
Common stock ($.001 par value; 500,000,000 shares authorized,
41,543,655 shares issued and outstanding)
|
|
|
41,543
|
|
|
|
41,543
|
|
|
Additional paid-in capital
|
|
|
46,543,135
|
|
|
|
45,738,974
|
|
|
Accumulated deficit
|
|
|
(62,713,463
|
)
|
|
|
(57,608,289
|
)
|
|
|
|
|
|
|
|
Total shareholders' deficit
|
|
|
(2,430,267
|
)
|
|
|
(1,253,749
|
)
|
|
|
|
|
|
|
|
Total liabilities and shareholders' deficit
|
|
$
|
9,689,494
|
|
|
$
|
7,174,061
|
|
|
|
|
|
|
|
|
|
|
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the Nine Months Ended September 30,
|
|
|
|
2015
|
|
2014
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(5,105,174
|
)
|
|
$
|
(3,202,594
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation
|
|
|
474,535
|
|
|
|
611,442
|
|
|
Stock-based compensation
|
|
|
433,473
|
|
|
|
1,752,550
|
|
|
(Gain) on change of fair value of warrant liability
|
|
|
-
|
|
|
|
(50,600
|
)
|
|
(Gain) on the sale of equipment
|
|
|
(17,738
|
)
|
|
|
-
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(4,287,860
|
)
|
|
|
(3,209,372
|
)
|
|
Prepaid expenses
|
|
|
60,778
|
|
|
|
10,020
|
|
|
Other current assets
|
|
|
1,611
|
|
|
|
2,564
|
|
|
Accounts payable
|
|
|
1,298,909
|
|
|
|
2,446,417
|
|
|
Accrued interest on secured note from related party
|
|
|
89,425
|
|
|
|
-
|
|
|
Accrued expenses
|
|
|
155,632
|
|
|
|
40,873
|
|
|
Due to related parties
|
|
|
-
|
|
|
|
(5,245
|
)
|
|
Deferred revenue
|
|
|
2,706,139
|
|
|
|
2,254,170
|
|
|
Assets of discontinued operations
|
|
|
5,676
|
|
|
|
11,464
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(4,184,594
|
)
|
|
|
661,689
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(129,188
|
)
|
|
|
(534,300
|
)
|
|
Proceeds from the sale of equipment
|
|
|
79,053
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
(50,135
|
)
|
|
|
(534,300
|
)
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
Gross proceeds from sale of preferred stock and warrants
|
|
|
899,998
|
|
|
|
-
|
|
|
Payments on notes payable
|
|
|
(487,478
|
)
|
|
|
(80,237
|
)
|
|
Gross proceeds from secured note from related party
|
|
|
2,000,000
|
|
|
|
-
|
|
|
Gross proceeds loan payable to related party
|
|
|
500,000
|
|
|
|
-
|
|
|
Payments on capital leases
|
|
|
(140,371
|
)
|
|
|
(26,186
|
)
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
2,772,149
|
|
|
|
(106,423
|
)
|
|
|
|
|
|
|
|
Net (decrease) increase in cash
|
|
|
(1,462,580
|
)
|
|
|
20,966
|
|
|
|
|
|
|
|
|
Cash - beginning of the period
|
|
|
3,431,001
|
|
|
|
2,569,536
|
|
|
|
|
|
|
|
|
Cash - end of the period
|
|
$
|
1,968,421
|
|
|
$
|
2,590,502
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151117005369/en/
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