8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  03/31/2009

INFORMATION ANALYSIS INC

(Exact name of registrant as specified in its charter)

Commission File Number:  000-22405

VA	54-1167364
(State or other jurisdiction of	(IRS Employer
incorporation)	Identification No.)

11240 Waples Mill Rd, Ste 201, Fairfax, VA 22030

(Address of principal executive offices, including zip code)

703-383-3000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.    Results of Operations and Financial Condition

On March 31, 2009, Information Analysis Incorporated issued a press release reporting earnings and other financial results for its fourth quarter and year end. A copy of this press release, captioned "Information Analysis Inc. Announces Fourth Quarter Results", is attached as exhibit 99.1 to this Current Report on Form 8-K (the "8-K"). The information in this 8-K, including the exhibit, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.    Financial Statements and Exhibits

Press Release dated March 31, 2009, captioned:

    "Information Analysis Inc. Announces Fourth Quarter Results"

Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INFORMATION ANALYSIS INC
Date: March 31, 2009	By:	/s/    Matthew Sands
		Matthew Sands
		Controller

Exhibit Index

Exhibit No.	Description
EX-99.1	Press Release dated March 31, 2009

EX-99.1 2 rrd238587_27926.htm PRESS RELEASE DATED MARCH 31, 2009

Exhibit 99.1

For additional information contact:
Richard S. DeRose (703) 293-7901
For release:
March 31, 2009 at 9:00 am.

Information Analysis Inc. Announces Fourth Quarter Results

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for the fourth quarter and full year ended December 31, 2008. Revenues were $1,651,000, compared to $2,156,000 reported in the fourth quarter 2007. The information technology services company reported a net loss of $102,000 or $(0.01) per share basic and diluted, compared to a net loss of $23,000 or $0.00 per share basic and diluted in the comparable period in 2007.

     For the year ended December 31, 2008, IAI posted revenue of $6,694,000 and a net loss of $371,000, or $(0.03) per share basic and diluted. The Company reported revenue of $9,953,000 and net income of $184,000 or $0.02 per share basic and diluted for the year ended December 31, 2007.

     “This has been a challenging 2008 for us due to the deterioration of the economy and constrained budgets within the federal government,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “In response, we invested added resources in the area of sales to build a larger pipeline of business, and we have been aggressively working on building more strategic partnerships with some of the larger service companies. Those efforts have borne fruit, and the results are beginning to take hold in 2009. We are also beginning a new business practice in the area of IT business intelligence that looks very promising. In addition, we have made substantial cost cutting moves to improve our profit picture for 2009. Our financial net worth and cash position are strong and will help carry us through this difficult period. Having gone through several of these retooling efforts over the last thirty years, I am confident that 2009 will be much improved over 2008.

     “We are continuing to pursue merger/acquisition opportunities with other organizations.”

--more--

Information Analysis Reports Fourth Quarter Results

March 31, 2009 Page 2 of 4

About Information Analysis Incorporated

     Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is a web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the internet world.

Additional information for investors

     This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2007, and in other filings with the Securities and Exchange Commission.

--more--

Information Analysis Reports Fourth Quarter Results
March 31, 2009
Page 3 of 4
Information Analysis Incorporated
Condensed Statements of Operations
	Three months ended December 31,
(in thousands, except per share data)		2008		2007
Sales:
Professional fees	$	857	$	1,677
Software sales		794		479
Total sales		1,651		2,156
Cost of goods sold and services provided:
Cost of professional fees		642		1,268
Cost of software sales		667		369
Total cost of sales		1,309		1,637
Gross profit		342		519
Operating expenses:
Selling, general and administrative		450		514
(Loss) income from operations		(108)		5
Other income (expenses), net		6		(24)
(Loss) before provision for income taxes		(102)		(19)
Provision for income taxes		-		4
Net (loss)	$	(102)	$	(23)
Earnings per Common Share: Basic and Diluted
Basic net loss	$	(0.01)	$	0.00
Diluted net loss	$	(0.01)	$	0.00
Shares used in calculating earnings per share:
Basic	11,196,760		11,196,760
Diluted	11,196,760		11,383,584
	Twelve months ended December 31,
(in thousands, except per share data)		2008		2007
Sales:
Professional fees	$	4,951	$	7,042
Software sales		1,743		2,911
Total revenue		6,694		9,953
Cost of goods sold and services provided:
Cost of professional fees		3,669		5,361
Cost of software sales		1,348		2,300
Total cost of sales		5,017		7,661
Gross profit		1,677		2,292
Operating expenses:
Selling, general and administrative		2,069		2,100
(Loss) income from operations		(392)		192
Other income (expenses)		21		(4)
(Loss) income before provision for income taxes		(371)		188
Provision for income taxes		--		4
Net (loss) income	$	(371)	$	184
Earnings per Common Share:
Basic net (loss) income	$	(0.03)	$	0.02
Diluted net (loss) income	$	(0.03)	$	0.02
Shares used in calculating earnings per share:
Basic	11,196,760		11,196,760
Diluted	11,196,760		11,398,180

--more--

Information Analysis Reports Fourth Quarter Results
March 31, 2009
Page 4 of 4
Information Analysis Incorporated
Balance Sheets
		As of		As of
(in thousands)	December 31, 2008		December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	1,549	$	1,223
Accounts receivable, net		1,122		1,560
Prepaid expenses		470		463
Other assets		1		4
Other receivables		--		2
Total current assets		3,142		3,252
Fixed assets, net		56		79
Other assets		6		9
Total assets	$	3,204	$	3,340
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	802	$	721
Deferred revenue		603		394
Accrued payroll and related liabilities		214		258
Other accrued liabilities		31		45
Income taxes payable		2		3
Total current liabilities		1,652		1,421
Total liabilities		1,652		1,421
Common stock, par value $0.01, 30,000,000 shares authorized;
12,839,376 shares issued, 11,196,760 outstanding at
December 31, 2008, and 2007		128		128
Additional paid in capital		14,550		14,546
Accumulated deficit		(12,196)		(11,825)
Less treasury stock; 1,642,616 shares at
cost at December 31, 2008 and 2007		(930)		(930)
Total stockholders' equity		1,552		1,919
Total liabilities and stockholders' equity	$	3,204	$	3,340

--end--

-----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

Exhibit 99.1

For additional information contact:
Richard S. DeRose (703) 293-7901
For release:
March 31, 2009 at 9:00 am.

Information Analysis Inc. Announces Fourth Quarter Results

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for the fourth quarter and full year ended December 31, 2008. Revenues were $1,651,000, compared to $2,156,000 reported in the fourth quarter 2007. The information technology services company reported a net loss of $102,000 or $(0.01) per share basic and diluted, compared to a net loss of $23,000 or $0.00 per share basic and diluted in the comparable period in 2007.

     For the year ended December 31, 2008, IAI posted revenue of $6,694,000 and a net loss of $371,000, or $(0.03) per share basic and diluted. The Company reported revenue of $9,953,000 and net income of $184,000 or $0.02 per share basic and diluted for the year ended December 31, 2007.

     “This has been a challenging 2008 for us due to the deterioration of the economy and constrained budgets within the federal government,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “In response, we invested added resources in the area of sales to build a larger pipeline of business, and we have been aggressively working on building more strategic partnerships with some of the larger service companies. Those efforts have borne fruit, and the results are beginning to take hold in 2009. We are also beginning a new business practice in the area of IT business intelligence that looks very promising. In addition, we have made substantial cost cutting moves to improve our profit picture for 2009. Our financial net worth and cash position are strong and will help carry us through this difficult period. Having gone through several of these retooling efforts over the last thirty years, I am confident that 2009 will be much improved over 2008.

     “We are continuing to pursue merger/acquisition opportunities with other organizations.”

--more--

Information Analysis Reports Fourth Quarter Results

March 31, 2009 Page 2 of 4

About Information Analysis Incorporated

     Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is a web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the internet world.

Additional information for investors

     This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2007, and in other filings with the Securities and Exchange Commission.

--more--

Information Analysis Reports Fourth Quarter Results
March 31, 2009
Page 3 of 4
Information Analysis Incorporated
Condensed Statements of Operations
	Three months ended December 31,
(in thousands, except per share data)		2008		2007
Sales:
Professional fees	$	857	$	1,677
Software sales		794		479
Total sales		1,651		2,156
Cost of goods sold and services provided:
Cost of professional fees		642		1,268
Cost of software sales		667		369
Total cost of sales		1,309		1,637
Gross profit		342		519
Operating expenses:
Selling, general and administrative		450		514
(Loss) income from operations		(108)		5
Other income (expenses), net		6		(24)
(Loss) before provision for income taxes		(102)		(19)
Provision for income taxes		-		4
Net (loss)	$	(102)	$	(23)
Earnings per Common Share: Basic and Diluted
Basic net loss	$	(0.01)	$	0.00
Diluted net loss	$	(0.01)	$	0.00
Shares used in calculating earnings per share:
Basic	11,196,760		11,196,760
Diluted	11,196,760		11,383,584
	Twelve months ended December 31,
(in thousands, except per share data)		2008		2007
Sales:
Professional fees	$	4,951	$	7,042
Software sales		1,743		2,911
Total revenue		6,694		9,953
Cost of goods sold and services provided:
Cost of professional fees		3,669		5,361
Cost of software sales		1,348		2,300
Total cost of sales		5,017		7,661
Gross profit		1,677		2,292
Operating expenses:
Selling, general and administrative		2,069		2,100
(Loss) income from operations		(392)		192
Other income (expenses)		21		(4)
(Loss) income before provision for income taxes		(371)		188
Provision for income taxes		--		4
Net (loss) income	$	(371)	$	184
Earnings per Common Share:
Basic net (loss) income	$	(0.03)	$	0.02
Diluted net (loss) income	$	(0.03)	$	0.02
Shares used in calculating earnings per share:
Basic	11,196,760		11,196,760
Diluted	11,196,760		11,398,180

--more--

Information Analysis Reports Fourth Quarter Results
March 31, 2009
Page 4 of 4
Information Analysis Incorporated
Balance Sheets
		As of		As of
(in thousands)	December 31, 2008		December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	1,549	$	1,223
Accounts receivable, net		1,122		1,560
Prepaid expenses		470		463
Other assets		1		4
Other receivables		--		2
Total current assets		3,142		3,252
Fixed assets, net		56		79
Other assets		6		9
Total assets	$	3,204	$	3,340
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	802	$	721
Deferred revenue		603		394
Accrued payroll and related liabilities		214		258
Other accrued liabilities		31		45
Income taxes payable		2		3
Total current liabilities		1,652		1,421
Total liabilities		1,652		1,421
Common stock, par value $0.01, 30,000,000 shares authorized;
12,839,376 shares issued, 11,196,760 outstanding at
December 31, 2008, and 2007		128		128
Additional paid in capital		14,550		14,546
Accumulated deficit		(12,196)		(11,825)
Less treasury stock; 1,642,616 shares at
cost at December 31, 2008 and 2007		(930)		(930)
Total stockholders' equity		1,552		1,919
Total liabilities and stockholders' equity	$	3,204	$	3,340

--end--