Welcome!

News Feed Item

InsPro Technologies Corporation Announces First Quarter 2014 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 quarter ended March 31, 2014.

First Quarter 2014 Highlights

  • Revenues decreased 22% to $3,576,599 in the first quarter of 2014, compared to $4,592,823 in the first quarter of 2013 primarily due to a $1,200,000 license fee that was recognized in the first quarter of 2013 upon the completion of the implementation of InsPro Enterprise™ for a client. The variance was partially offset by increased maintenance, professional services and ASP/Hosting revenues.
  • Operating loss from continuing operations was $564,714 in the first quarter of 2014, compared to a loss of $64,791 in the first quarter of 2013. The results from operations in the first quarter of 2013 were favorably impacted by the $1,200,000 license fee.
  • Net loss increased to $501,758 in the first quarter of 2014, compared to a net loss of $238,492 in the first quarter of 2013 due primarily to the $1,200,000 license fee and lower revenues which were partially offset by lower expenses, particularly software consulting and professional services expenses, and loss on the change of the fair value of warrant liability.

Anthony R. Verdi, Chief Executive Officer, stated, “We are pleased with the start to 2014 as we are making significant progress on several ongoing implementations of InsPro Enterprise and just recently announced a new client with a strong presence in the growing Group Voluntary market. Additionally, we are receiving considerable market interest in our Annuity product capabilities. We are confident in our technology, pleased with the market recognition of InsPro Enterprise and 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 March 31
2014 2013
 
Revenues $ 3,576,599 $ 4,592,823
 
Cost of revenues 2,952,433 3,372,376
   
Gross profit   624,166     1,220,447  
 
Selling, general and administrative expenses:
Salaries, employee benefits and related taxes 657,495 651,964
Advertising and other marketing 51,929 56,172
Depreciation 36,715 38,213
Rent, utilities, telephone and communications 90,662 93,421
Professional fees 170,665 267,178
Other general and administrative   181,415     178,290  
 
Total selling, general and administrative expenses   1,188,880     1,285,238  
 
Operating loss from continuing operations   (564,714 )   (64,791 )
 
Other expense:
Loss on the change of the fair value of warrant liability - (279,799 )
Interest expense   (7,444 )   (7,655 )
 
Total other expense   (7,444 )   (287,454 )
 
Loss from continuing operations   (572,158 )   (352,245 )
 
Income from discontinued operations   70,400     113,753  
 
Net loss $ (501,758 ) $ (238,492 )
 
Net income (loss) per common share - basic and diluted:
Loss from operations $ (0.01 ) $ (0.02 )
Income from discontinued operations   0.00     0.01  
Net loss per common share $ (0.01 ) $ (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, 2014 December 31, 2013
ASSETS
 
CURRENT ASSETS:
Cash $ 1,837,930 $ 2,569,536
Accounts receivable, net 2,513,689 1,660,564
Prepaid expenses 226,056 200,985
Other current assets 2,066 2,564
Assets of discontinued operations   24,224     31,540  
 
Total current assets 4,603,965 4,465,189
 
Property and equipment, net 883,006 959,902
Other assets   60,000     60,000  
 
Total assets $ 5,546,971   $ 5,485,091  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES:
Notes payable $ 525,000 $ 550,761
Accounts payable 1,247,773 1,169,251
Accrued expenses 521,625 456,753
Current portion of capital lease obligations 78,885 57,932
Due to related parties 10,000 10,000
Deferred revenue   1,435,050     1,006,875  
 
Total current liabilities   3,818,333     3,251,572  
 
LONG TERM LIABILITIES:
Warrant liability 607,199 607,199
Capital lease obligations   6,892     23,184  
 
Total long term liabilities   614,091     630,383  
 
Total liabilities   4,432,424     3,881,955  
 
 
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, 3,809,378 shares issued and outstanding (liquidation value $11,428,134 and $9,892,134, respectively)

7,709,919 7,709,919

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 43,424,341 43,411,172
Accumulated deficit   (52,925,360 )   (52,423,602 )
 
Total shareholders' equity   1,114,547     1,603,136  
 
Total liabilities and shareholders' equity $ 5,546,971   $ 5,485,091  
 
   
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
For the Three Months Ended March 31,
2014 2013
Cash Flows From Operating Activities:
Net loss $ (501,758 ) $ (238,492 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 175,455 177,172
Stock-based compensation 13,168 18,183
Loss on change of fair value of warrant liability - 279,799
Changes in assets and liabilities:
Accounts receivable (853,125 ) (669,640 )
Prepaid expenses (25,071 ) (4,163 )
Other current assets 498 (5,704 )
Accounts payable 78,522 (425,293 )
Accrued expenses 64,872 61,894
Deferred revenue 428,175 630,223
Assets of discontinued operations   7,316     23,044  
 
Net cash used in operating activities   (611,948 )   (152,977 )
 
Cash Flows From Investing Activities:
Purchase of property and equipment   (70,601 )   (68,888 )
 
Net cash used in investing activities   (70,601 )   (68,888 )
 
Cash Flows From Financing Activities:
Gross proceeds from sale of preferred stock and warrants - 36,000
Fees paid in connection with sale of preferred stock and warrants - (28,800 )
Payments on notes payable (25,761 ) (26,985 )
Payments on capital leases   (23,296 )   (20,267 )
 
Net cash used in financing activities   (49,057 )   (40,052 )
 
Net decrease in cash (731,606 ) (261,917 )
 
Cash - beginning of the period   2,569,536     3,347,689  
 
Cash - end of the period $ 1,837,930   $ 3,085,772  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
IoT generates lots of temporal data. But how do you unlock its value? How do you coordinate the diverse moving parts that must come together when developing your IoT product? What are the key challenges addressed by Data as a Service? How does cloud computing underlie and connect the notions of Digital and DevOps What is the impact of the API economy? What is the business imperative for Cognitive Computing? Get all these questions and hundreds more like them answered at the 18th Cloud Expo...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.