InsPro Technologies Corporation Announces Third Quarter 2019 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 three and nine month period ended September 30, 2019.

Third Quarter 2019 Highlights

• Revenues were $3,504,443 in the Third Quarter of 2019; a 34% decrease as compared to $5,311,635in the Third Quarter of 2018. The decrease was the result of the Company having largely completed implementation services to what was our largest client in 2018.

• Net loss was $165,810 in the Third Quarter of 2019 as compared to net income of $479,814 in the Third Quarter of 2018. Net loss in the Third Quarter of 2019 was unfavorably impacted by lower professional service revenues partially offset by lower employee and IT consulting staffing as compared to the Third Quarter 2018.

September Year-To-Date 2019 Highlights

• Revenues were $10,575,724 in the nine months ended September 30, 2019; a 36% decrease as compared to $16,583,232 in the nine months ended September 30, 2018. The decrease was the result of the Company having largely completed implementation services to what was our largest client in 2018.

• Net loss was $1,611,651 in the nine months ended September 30, 2019 as compared to net income of $2,169,046 in the nine months ended September 30, 2018. Net loss for the nine months of 2019 was unfavorably impacted by lower professional service revenues partially offset by lower employee and IT consulting staffing as compared to the first nine months of 2018.

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 Ending September 30,								For the Nine Months Ending September 30,
		2019				2018				2019				2018
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Revenues		$	3,504,443			$	5,311,635			$	10,575,724			$	16,583,232
Cost of revenues			2,668,047				3,588,365				8,726,230				10,676,513
Gross profit			836,396				1,723,270				1,849,494				5,906,719
Selling, general and administrative expenses			967,306				1,167,813				3,364,242				3,578,121
(Loss) income from operations			(130,910	)			555,457				(1,514,748	)			2,328,598
Other income (expense):
Interest expense			(34,900	)			(8,643	)			(96,903	)			(21,552	)
Total other expense			(34,900	)			(8,643	)			(96,903	)			(21,552	)
(Loss) income before income taxes			(165,810	)			546,814				(1,611,651	)			2,307,046
Provision for income taxes			-				67,000				-				138,000
Net (loss) income		$	(165,810	)		$	479,814			$	(1,611,651	)		$	2,169,046
Net (loss) income per common share:
Net (loss) income per common share - basic		$	0.00			$	0.01			$	(0.04	)		$	0.05
Net (loss) income per common share - fully diluted		$	0.00			$	0.00			$	(0.04	)		$	0.01
Weighted average common shares outstanding - basic			41,673,655				41,543,655				41,673,655				41,543,655
Weighted average common shares outstanding - fully diluted			41,673,655				198,306,395				41,673,655				198,306,395

INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
		September 30, 2019				December 31, 2018
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash		$	4,390,641			$	5,100,660
Accounts receivable			1,814,803				3,146,597
Tax receivable			812				13,000
Prepaid expenses			466,781				305,643
Total current assets			6,673,037				8,565,900
LONG TERM ASSETS:
Property and equipment, net			1,607,187				594,767
Operating lease right of use asset			781,380				-
Prepaid assets			169,858				-
Total long term assets			2,558,425				594,767
Total assets		$	9,231,462			$	9,160,667
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable		$	64,936			$	39,025
Accounts payable			613,723				1,213,758
Accrued expenses			533,496				905,531
Current portion of finance lease obligations			154,206				115,771
Current portion of equipment loans			839,821				-
Current portion of operating lease obligations			321,345				-
Deferred revenue			4,152,948				2,850,976
Income tax payable			-				141,000
Total current liabilities			6,680,475				5,266,061
LONG TERM LIABILITIES:
Deferred revenue			-				875,000
Finance lease obligations			222,572				150,559
Equipment loans			604,734				-
Operating lease obligations			460,035				-
Total long term liabilities			1,287,341				1,025,559
Total liabilities			7,967,816				6,291,620
SHAREHOLDERS' EQUITY:
Preferred stock ($.001 par value; 20,000,000 shares authorized)
Series A convertible preferred stock; 3,437,500 shares designated, 1,270,250
shares issued and outstanding (liquidation value $12,702,500)			1,271				1,271
Series B convertible preferred stock; 11,000,000 shares designated, 5,307,212
shares issued and outstanding (liquidation value $15,921,636)			5,307				5,307
Series C convertible preferred stock; 4,000,000 shares designated, 1,254,175
shares issued and outstanding (liquidation value $6,270,875)			1,254				1,254
Common stock ($.001 par value; 750,000,000 shares authorized,
41,673,655 shares issued and outstanding)			41,673				41,673
Additional paid-in capital			65,377,611				65,371,361
Accumulated deficit			(64,163,470	)			(62,551,819	)
Total shareholders' equity			1,263,646				2,869,047
Total liabilities and shareholders' equity		$	9,231,462			$	9,160,667

 

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