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): 11/13/2007

INFORMATION ANALYSIS INCORPORATED

(Exact Name of Registrant as Specified in its Charter)

VA	0-22405	54-1167364
(State or Other Jurisdiction Of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer 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)

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 (see General Instruction A.2. below):

¨ 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(17CFR240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17CFR240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17CFR240.13e-4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

Item 2.02. Results of Operations and Financial Condition

On November 13, 2007, Information Analysis Incorporated issued a press release reporting earnings and other financial results for its third quarter. A copy of this press release, captioned “Information Analysis Inc. Reports Third Quarter Results”, is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including the exhibit, shall not be deemed filed for 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 a filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1 Press Release dated November 13, 2007, captioned:

“Information Analysis Inc. Reports Third 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 INCORPORATED
Date: November 15, 2007.	By:	/s/ Matthew T. Sands
		Matthew T. Sands
		Controller

Exhibit Index

Exhibit No.	Description
EX-99.1	IAI Press Release dated November 13, 2007, captioned: “Information Analysis Inc. Reports Third Quarter Results”

EX-99.1

Exhibit 99.1

For additional information contact:

Richard S. DeRose (703) 293-7901

For release:

November 13, 2007

Information Analysis Inc. Reports Third Quarter Results

FAIRFAX, VIRGINIA – Information Analysis Inc. (IAIC:OTCBB) today reported results for its third fiscal quarter ended September 30, 2007. Revenues were $2,635,000, compared to $2,574,000 reported in the third quarter 2006. The information technology services company reported net income of $95,000, or $0.01 per share basic and diluted, compared to net income of $157,000 or $0.01 per share basic and diluted, in the third quarter 2006.

For the nine months ended September 30, 2007, IAI’s revenues were $7,797,000, compared to revenues of $7,457,000 for the same period in 2006. The Company reported net income of $207,000, or $0.02 per share basic and diluted, compared to net income of $396,000, or $0.04 per share basic and $0.03 per share diluted, reported for the comparable 2006 period.

“We have begun to increase our investment in sales and marketing efforts starting in the fourth quarter to improve our rate of growth and profitability,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “We still have a number of bid opportunities outstanding for new business and additional add-on business to existing contracts, which are expected to materialize during future quarters.

“We continue to pursue merger and acquisition opportunities.”

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, 2006 and in other filings with the Securities and Exchange Commission.

—more—

Information Analysis Reports Third Quarter Results

November 13, 2007

Page 2 of 4

Information Analysis Incorporated

Statements of Operations

	Three months ended September 30,
(in thousands, except per share data; unaudited)	2007		2006
Revenue:
Professional fees	$	1,688	$	2,180
Software sales		947		394
Total revenue		2,635		2,574
Cost of goods sold and services provided:
Cost of professional fees		1,272		1,626
Cost of software sales		749		183
Total cost of sales		2,021		1,809
Gross margin		614		765
Selling, general and administrative expense		527		610
Operating income		87		155
Other income (expense)		8		2
Income before income taxes		95		157
Provision for income taxes		—		—
Net income	$	95	$	157
Earnings per share:
Basic	$	0.01	$	0.01
Diluted	$	0.01	$	0.01
Shares used in calculating earnings per share:
Basic		11,196,760		11,137,371
Diluted		11,414,922		11,478,082

—more—

Information Analysis Reports Third Quarter Results

November 13, 2007

Page 3 of 4

Information Analysis Incorporated

Statements of Operations

	Nine months ended September 30,
(in thousands, except per share data; unaudited)	2007		2006
Revenue:
Professional fees	$	5,365	$	6,675
Software sales		2,432		782
Total revenue		7,797		7,457
Cost of goods sold and services provided:
Cost of professional fees		4,093		5,080
Cost of software sales		1,931		478
Total cost of sales		6,024		5,558
Gross margin		1,773		1,899
Selling, general and administrative expense		1,586		1,508
Operating income		187		391
Other income, net		20		5
Income before income taxes		207		396
Provision for income taxes		—		—
Net income	$	207	$	396
Earnings per share:
Basic	$	0.02	$	0.04
Diluted	$	0.02	$	0.03
Shares used in calculating earnings per share:
Basic		11,196,760		10,973,470
Diluted		11,408,401		11,436,461

—more—

Information Analysis Reports Third Quarter Results

November 13, 2007

Page 4 of 4

Information Analysis Incorporated

Balance Sheets

(in thousands)	As of September 30, 2007 (unaudited)			As of December 31, 2006 (audited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,263		$	808
Accounts receivable, net		1,759			1,758
Prepaid expenses		349			382
Note receivable		116			116
Other assets		7			4
Other receivables		6			6
Total current assets		3,500			3,074
Fixed assets, net		63			67
Other assets		6			9
Total assets	$	3,569		$	3,150
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	755		$	644
Deferred revenues		482			513
Accrued payroll and related liabilities		294			265
Other accrued liabilities		99			53
Total liabilities		1,630			1,475
Common stock, par value $0.01, 30,000,000 shares authorized; 12,839,376 shares issued, 11,196,760 outstanding		128			128
Additional paid in capital		14,543			14,486
Accumulated deficit		(11,802	)		(12,009	)
Less treasury stock; 1,642,616 shares at cost		(930	)		(930	)
Total stockholders’ equity		1,939			1,675
Total liabilities and stockholders’ equity	$	3,569		$	3,150

—end—