Health Revenue Assurance Holdings, Inc. Reports Financial Results For The 4th Quarter And Year-end 2012; Company To Hold Earnings Conference Call April 2, 2013

Plantation, April 1, 2013 (GLOBE NEWSWIRE) -- Health Revenue Assurance Holdings, Inc. (OTCBB:HRAA), a provider of technology and revenue integrity solutions forhealthcare organizations, announced its financial results for thefourth quarter and full year ended December 31, 2012.

Fourth Quarter and Full Year 2012Highlights:
  • Total quarterly revenue of $2,187,237 increased 421% ascompared to $419,495 for the prior year's fourth quarter;
  • Total yearly revenue of $5,806,848 increased 305% versusrevenues of $1,432,773 for the full year of 2011;
  • Cash balance of $893,458 at the end of 2012 as compared to acash balance of $198,500 in the same period of 2011;

Andrea Clark, HRAA's Chairman, CEO and Founderstated, "The fourth quarter was another successful quarter for HRAAas we continue to deliver strong results reflected by the recordrevenues we have achieved. The quarter was also marked with asignificant milestone for the Company as we recorded the first saleof our ICD-Visualizerä software solution. This revolutionaryproduct has helped our client to mitigate their risk in preparationfor the upcoming mandated switch from ICD-9 to ICD-10 in October of2014.

Clark concluded, "In the fourth quarter, we alsointroduced our second software solution package, ReadmissionsVisualizerä. This product provides hospitals worldwide with theability to view current inpatient and historical readmissionsinformation through an intuitive web interface for the purpose ofdecreasing readmissions within the healthcare system. The demandfor readmission analysis is rapidly growing as seen under theAffordable Care Act as 2,217 hospitals were penalized under thisprogram and 307 hospitals were ordered to pay 1% of the Medicarereimbursement for 2012. As we continue to execute on our businessplan, we look forward to providing best-of-breed software solutionsas well as auditing, consulting and coding services that helpmaintain revenue integrity throughout the healthcare system."

Fourth Quarter 2012 FinancialResults

For the fourth quarter of 2012, total revenueswere $2,187,237, an increase of $1,767,742 or 421%, from revenuesof $419,495 for the fourth quarter of 2011. 

Adjusted EBITDA (loss) was ($147,265) for thequarter ended December 31, 2012 compared to adjusted EBITDA (loss)of ($481,608) for the same quarter in 2011.

Operating expenses were $1,242,496 for thefourth quarter of 2012, which are roughly in line from operatingexpenses of $1,251,158 for the prior year's fourth quarter. Companyhad an operating loss in the fourth quarter of 2012 of ($151,831),compared to an operating loss of ($1,052,991) for the prior year'sfourth quarter.

The Company recorded a net loss of ($233,733),or ($0.01) per basic and diluted share, for the fourth quarter of2012, as compared to a net loss of ($1,063,385), or ($0.06) perbasic and diluted share, for the fourth quarter of 2011.

Full Year 2012 Results

For the full year ended December 31, 2012, totalrevenues were $5,806,848, an increase of $4,374,075 or 305%, fromrevenues of $1,432,773 for the full year of 2011. 

Adjusted EBITDA (loss) was ($941,356) for thefull year ended December 31, 2012 compared to adjusted EBITDA(loss) of ($292,496) for the same period of 2011.

Operating expenses were $3,968,971 for the fullyear ended December 31, 2012, compared to operating expenses of$2,101,506 for the same period in 2011.  The Company had anoperating loss for the full year ended December 31, 2012 of($992,131), compared to an operating loss of ($1,142,453) for thesame period in 2011.

The Company recorded a net loss of ($1,457,470),or $(0.04) per basic and diluted share, for the full year endedDecember 31, 2012 as compared to a net loss of $(1,171,921) or$(0.08) per basic and diluted share, for the same period in 2011.The net loss for 2012 is due primarily to increased compensationand related expenses associated with the buildup of the Company'smanagement, sales and administrative staff in anticipation ofgrowth in business volume.

Conference Call

The Company will be holding a conference call onTuesday, April 2, 2013, at 5:30pm ET (2:30pm Pacific Time) toreview the fourth quarter and full year 2012 results. RobertRubinowitz, President and Chief Operating Officer of Health RevenueAssurance Holdings, Inc., will be on-line to discuss theseresults.

To listen in, please call one of the followingteleconferencing numbers at least 5 minutes before the conferencecall commences.

Toll-Free:         1-888-427-9376

Toll:                 1-719-325-2494

Passcode:       4956943

A telephone replay of the call will be availableby contacting HRAA's office at 1-954-472-2340.

About HRAA

HRAA (OTCBB: HRAA) is a leading provider ofrevenue integrity technology and services for healthcareorganizations across the US, interpreting data to ensure thathealthcare is efficient and effective for everyone.  Foundedin 2001 and based out of Plantation, FL, HRAA combines years ofindustry expertise with best-in-breed technology to create marketleading business intelligence products and consulting services toimprove the healthcare delivery experience for doctors, nurses andpatients. HRAA offers the only  full suite ofsolutions needed to keep up with the ever-changing healthcareindustry, which include: data analytics software, businessintelligence technology, medical coding, auditing, education,revenue cycle consulting, and ICD-10 transition solutions. For moreinformation please visit:   http://www.hraa.com

Caution Regarding Forward LookingStatements

Certain statements in this news release and suchconference call are forward-looking, including (without limitation)expectations or guidance respecting customer contract expansion,growing revenues and profits through organic growth andacquisitions, attracting new business that will increase HRAA'srevenues, continuing to maintain costs and consummating anytransactions. Undue reliance should not be placed on suchforward-looking statements because the matters they describe aresubject to known and unknown risks, uncertainties and otherunpredictable factors, many of which are beyond the Company'scontrol. The Company's actual results, performance and trends coulddiffer materially from those indicated or implied by suchstatements as a result of various factors, including (withoutlimitation) the continued strengthening of HRAA's selling andmarketing functions, continued customer satisfaction and contractrenewal, new product development, continued availability of capablededicated personnel, continued cost management, the success andavailability of acquisitions, availability of financing and otherfactors, as well as by factors applicable to most companies such asgeneral economic, competitive and other business and civilconditions. Information regarding certain of those and other riskfactors and cautionary statements that could affect future results,performance or trends are discussed in HRAA's most recent annualreport on Form 10-K, quarterly reports on Form 10-Q, and otherfilings made with the Securities and Exchange Commission from timeto time. All of the Company's forward-looking statements areexpressly qualified by all such risk factors and other cautionarystatements.

-Tables Follow-

HEALTH REVENUE ASSURANCE HOLDINGS,INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OFOPERATIONS
    For theYear-Ended  
    December31,     December31,  
    2012     2011  
             
Revenues   $ 5,806,848     $ 1,432,773  
                 
Cost of Revenues     2,830,008       473,719  
Gross Profit     2,976,840       959,054  
                 
Operating Expenses                
Selling and administrative expenses (includesstock compensation of $0 and $818,595 in 2012 and 2011,respectively)     3,853,820       1,976,655  
Research and development     64,386       93,489  
Depreciation and amortization     50,765       31,362  
Total Operating Expenses     3,968,971       2,101,506  
                 
Operating Loss     (992,131 )     (1,142,453 )
                 
Other Income (Expense)                
Other income     10       --  
Interest expense     (465,349 )     (29,468 )
Total Other Income (Expense), net     (465,339 )     (29,468 )
                 
Income (Loss) before provision forincome taxes     (1,457,470 )     (1,171,921 )
                 
Provision for income taxes     --       --  
                 
Net Income (Loss)   $ (1,457,470 )   $ (1,171,921 )
                 
Net Loss Per Share                
basic and diluted   $ (0.04 )   $ (0.08 )
Weighted Average Number of SharesOutstanding                
basic and diluted     32,730,809       14,450,235  
HEALTH REVENUEASSURANCE HOLDINGS, INC. AND SUBSIDIARIES  
CONSOLIDATED BALANCESHEETS  
             
    December31,     December31,  
    2012     2011  
Assets            
             
Cash   $ 893,458     $ 198,500  
Accounts receivable     1,246,814       143,557  
Prepaid expenses     3,600       24,512  
Other current assets     688       5,842  
   Total CurrentAssets     2,144,560       372,411  
                 
Property and Equipment, net     365,017       352,499  
                 
Software     258,933       --  
Other assets     8,871       8,865  
Finance costs, net     2,477       2,803  
Total Other Assets     270,281       11,668  
                 
Total Assets   $ 2,779,858     $ 736,578  
                 
Liabilities and Stockholders'Equity (Deficit)                
                 
Accounts payable   $ 207,741     $ 195,901  
Due to officer     75,000       --  
Accrued expenses     64,077       23,266  
Accrued payroll     412,186       73,685  
Loan payable to factor     827,075       --  
Accrued interest     4,524       --  
Line of credit, current portion     25,000       98,500  
Capital Leases, current portion     16,923       --  
Notes payable, current portion, net ofdiscount     202,557       --  
Long term debt, current portion     37,513       283,640  
Advances on convertible promissory notes     --       170,000  
Settlement Payable     115,278       --  
Unearned revenue     --       32,988  
Total CurrentLiabilities     1,987,874       877,980  
Capital Leases (net of current portion)     23,974       --  
Line of credit (net of current portion)     125,000       --  
Notes payable (net of current portion), netof discount     273,751       --  
Long term debt (net of current portion)     181,457       218,417  
Total Liabilities   $ 2,592,056     $ 1,096,397  
                 
Commitments and Contingencies (see Note11)                
                 
Stockholders' Equity (Deficit):                
Common stock ($0.001 par value, 75,000,000shares authorized,                
39,054,867 shares and 16,499,021issued and outstanding at          
December 31, 2012 and 2011,respectively)     39,055       16,499  
Additional paid-in capital     2,738,545       751,010  
Subscription receivable     (5,000 )     --  
Accumulated deficit     (2,584,798 )     (1,127,328 )
Total Stockholders' Equity(Deficit)     187,802       (359,819 )
                 
Total Liabilities and Stockholders'Equity (Deficit)   $ 2,779,858     $ 736,578  
CONTACT: Investor Contacts:         KCSA Strategic Communications         Philip Carlson / Alex Woodbury         +1 212.896.1233 / +1 212.896.1267         pcarlson@kcsa.com / awoodbury@kcsa.com

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