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): February 17, 2021
INFORMATION ANALYSIS INCORPORATED
(Exact name of registrant as specified in its charter)
| VA | 000-22405 | 54-1167364 |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | 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))
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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None |
N/A |
N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 – Financial Information
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Item 2.02 |
Results of Operations and Financial Condition. |
On February 17, 2021, Information Analysis Incorporated issued a press release reporting earnings and other financial results for its three months and year ended December 31, 2020. A copy of this press release, captioned "Information Analysis Inc Releases 2020 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 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.
Section 9 – Financial Statements and Exhibits
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Item 9.01 |
Financial Statements and Exhibits |
Press Release dated February 17, 2021, captioned: "Information Analysis Inc Releases 2020 Results.”
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Exhibit Index |
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Exhibit No.
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Description
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EX-99.1 |
SIGNATURES
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.
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INFORMATION ANALYSIS INCORPORATED
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Date: February 17, 2021
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By:
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/s/ Matthew T. Sands
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Matthew T. Sands
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Chief Financial Officer
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Exhibit 99.1
Information Analysis Inc Releases 2020 Results
Company continues profitable growth
FAIRFAX, VA, February 17, 2021 – Information Analysis Incorporated (OTCQB: IAIC) today released its results for its fourth quarter and year ended December 31, 2020.
For the year ended December 31, 2020, revenues were $13,903,000, an increase of $3,738,000, or 37%, over its 2019 revenues of $10,165,000. Net income was $413,000 in 2020 versus a net loss of ($717,000) in 2019, a difference of $1,130,000. Basic and diluted earnings per share were $0.04 and $0.03, respectively, for 2020, versus basic and diluted net loss per share of ($0.06) in 2019.
The improvement in 2020 was primarily attributable to our performance in the fourth quarter of 2020. Fourth quarter 2020 revenues were $3,099,000, an increase of $1,000,000, or 48%, over its 2019 fourth quarter revenues of $2,099,000. Net income was $360,000 versus a net loss of ($139,000) for the same period in 2019, a difference of $499,000.
“We significantly accelerated our business in 2020, delivering our highest annual revenues since the mid-1990’s, while expanding gross margin and increasing net income,” said Stan Reese, IAI’s CEO. “Our 2021 financial outlook highlights the strength of our services and product portfolios and robust demand for modernizing mainframe applications, particularly in the federal government. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our vision for both the services and products roadmaps.”
“Our earnings and cash flow are solid, we are upgrading and updating our business development processes, and we are bringing much-needed communication, value and, in light of being traded on the OTCQB Market, greater liquidity to our shareholders. Without losing focus on our core competencies and strategic relationships, we are actively making strides towards such targeted high-growth fields such as cyber security and cloud services.”
With consideration for the investments IAI is making in progressing toward its business plan, and making allowances for unknowns such as the effects of COVID-19, IAI is projecting net income for 2021 of between $1.1 million and $1.2 million.
About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology product and services company. The Company is a software conversion specialist, modernizing legacy systems and extending their reach to the cloud and more modern platforms.
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-K for the fiscal year ended December 31, 2019 and in other filings with the Securities and Exchange Commission.
For additional information contact:
Matt Sands, CFO
msands@infoa.com
(703) 293-7925
Information Analysis Incorporated
Statements of Operations
(unaudited, except where indicated)
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Three months ended December 31, |
Year ended December 31, |
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(in thousands, except per share data) |
2020 |
2019 |
2020 |
2019 |
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(audited) |
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Revenues |
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Professional fees |
$ | 2,174 | $ | 831 | $ | 5,527 | $ | 3,244 | ||||||||
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Software sales |
925 | 1,268 | 8,376 | 6,921 | ||||||||||||
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Total revenues |
3,099 | 2,099 | 13,903 | 10,165 | ||||||||||||
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Cost of revenues |
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Cost of professional fees |
1,334 | 536 | 3,566 | 1,981 | ||||||||||||
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Cost of software sales |
838 | 1,227 | 8,128 | 6,784 | ||||||||||||
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Total cost of revenues |
2,172 | 1,763 | 11,694 | 8,765 | ||||||||||||
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Gross profit |
927 | 336 | 2,209 | 1,400 | ||||||||||||
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Selling, general, and administrative expenses |
454 | 394 | 1,504 | 1,875 | ||||||||||||
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Commission expense |
114 | 83 | 293 | 253 | ||||||||||||
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Income (loss) from operations |
359 | (141 | ) | 412 | (728 | ) | ||||||||||
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Other income, net |
1 | 2 | 1 | 11 | ||||||||||||
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Income before provision for Income taxes |
$ | 360 | $ | (139 | ) | $ | 413 | $ | (717 | ) | ||||||
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Net income (loss) |
$ | 360 | $ | (139 | ) | $ | 413 | $ | (717 | ) | ||||||
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Net income (loss) per share: |
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Basic |
$ | 0.03 | $ | (0.01 | ) | $ | 0.04 | $ | (0.06 | ) | ||||||
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Diluted |
$ | 0.03 | $ | (0.01 | ) | $ | 0.03 | $ | (0.06 | ) | ||||||
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Weighted average common shares Outstanding: |
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Basic |
11,255,782 | 11,211,760 | 11,222,826 | 11,208,308 | ||||||||||||
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Diluted |
12,161,763 | 11,211,760 | 12,049,322 | 11,208,308 | ||||||||||||
Information Analysis Incorporated
Balance Sheets
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As of: |
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December 31, |
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2020 |
2019 |
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(in thousands, except per share data) |
(unaudited) |
(audited) |
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ASSETS: |
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Current assets |
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Cash and cash equivalents |
$ | 1,858 | $ | 1.039 | ||||
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Accounts receivable |
1,442 | 669 | ||||||
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Prepaid expenses and other current assets |
143 | 500 | ||||||
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Total current assets |
3,443 | 2.208 | ||||||
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Contract assets |
211 | - | ||||||
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Property and equipment, net |
62 | 10 | ||||||
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Right-of-use operating lease asset |
51 | 150 | ||||||
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Other assets |
6 | 6 | ||||||
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Total assets |
$ | 3,773 | $ | 2.374 | ||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
$ | 104 | $ | 216 | ||||
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Contract liabilities |
947 | 464 | ||||||
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Accrued payroll and related liabilities |
375 | 220 | ||||||
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Commissions payable |
182 | 108 | ||||||
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Other accrued liabilities |
57 | 54 | ||||||
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Operating lease liability current portion |
45 | 104 | ||||||
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Total current liabilities |
1,710 | 1,166 | ||||||
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Note payable |
450 | - | ||||||
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Operating lease liability non-current portion |
- | 46 | ||||||
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Total liabilities |
2,160 | 1,212 | ||||||
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Stockholders’ equity |
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Common stock, $0.01 par value, 30,000,000 shares authorized, 12,904,376 and 12,854,376 shares issued, 11,261,760 and 11,211,760 shares outstanding as of December 31, 2020, and 2019, respectively |
129 | 128 | ||||||
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Additional paid-in capital |
14,720 | 14,683 | ||||||
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Accumulated deficit |
(12,306 | ) | (12,719 | ) | ||||
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Treasury stock, 1,642,616 shares at cost at December 31, 2020 and 2019 |
(930 | ) | (930 | ) | ||||
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Total stockholders’ equity |
1,613 | 1,162 | ||||||
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Total liabilities and stockholders’ equity |
$ | 3,773 | $ | 2,374 | ||||