Health Revenue Assurance Holdings, Inc. Reports Financial Results For The Second Quarter 2013; Company To Host Earnings Conference Call August 12, 2013

Plantation, FL, Aug. 9, 2013 (GLOBE NEWSWIRE) -- Health Revenue Assurance Holdings, Inc. (OTCQB:HRAA), a provider of technology and revenue integrity solutions forhealthcare organizations, announced its financial results for thesecond quarter ended June 30, 2013.

Second QuarterHighlights:
  • Total quarterly revenue of $2,067,464 increased 101% ascompared to $1,028,266 for the prior year's second quarter;
  • Gross profit of $1,091,832 at the end of the second quarter of2013 as compared to a gross profit of $575,033 in the same periodof 2012;

"During the second quarter our total revenuesmore than doubled to $2,067,464, compared to the same period lastyear as our pipeline for our solutions package, including ourrevolutionary ICD Visualizer TM, continues to bein demand," stated Andrea Clark, HRAA's Chairman, CEO and Founder."We had a significant customer win this quarter with the signing ofVanderbilt University Medical Center for our ICD-10 transitionservices.  With over 60 locations and 2,200 clinical providerphysicians serving 1.7 million patients annually, VUMC is one ofthe premier academic medical institutions in Tennessee and Kentuckyand will be a benchmark for HRAA's services."

Mrs. Clark continued, "As we near the deadlinefor ICD-10, we continue to add seasoned professionals to ourleadership team. During the quarter, we hired Evan McKeown as ournew Chief Financial Officer.  Evan is a 25+ year financeveteran in the technology and healthcare industries where he hasserved in the CFO capacity for more than half his career. We alsorecently added Peter Russo and Michael Brainerd as new members toour Board of Directors.  Peter is the former CFO of magicJackand Michael is an experienced corporate strategist. We areconfident their financial experience and industry knowledge areperfect fits for our Company as we continue to meet the increasingdemands placed on health systems by the upcoming ICD-10deadline."

Second Quarter 2013 FinancialResults

For the second quarter of 2013, total revenueswere $2,067,464, an increase of $1,039,198 or 101%, from revenuesof $1,028,266 for the second quarter of 2012. 

Operating expenses were $1,960,844 for thesecond quarter of 2013, compared to $1,081,133 for the prior year'ssecond quarter. The increase in operating expenses is due toincreased SG&A expenses as the company increased its staff from75 employees to 115. The Company had an operating loss in thesecond quarter of 2013 of $(869,012), compared to an operating lossof $(506,100) for the prior year's second quarter.  

The Company recorded a net loss of $(1,097,061),or $(0.02) per basic and diluted share, for the second quarter of2013, as compared to a net loss of $(511,022), or $(0.01) per basicand diluted share, for the second quarter of 2012.

Conference Call

The Company will be holding a conference call onMonday, August 12, 2013, at 8:00AM ET (5:00AM PT) to review thefirst quarter 2013 results.

Robert Rubinowitz, President and Chief OperatingOfficer and Evan McKeown, Chief Financial 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:         888-516-2411

Toll:                 719-457-2693

Passcode:        163147

A telephone replay of the call will be available by contactingHRAA's office at 1-954-472-2340.

About HRAA

HRAA (OTCQB: HRAA) interprets data to ensurethat healthcare is efficient and effective for everyone by pullingmedical data together to create a predictive window to understandcost and revenues looking back and going forward.Founded in 2001and based out of Plantation, FL, HRAA combines years ofindustry expertise with best-in-breed technology to create marketleading business intelligence products and consulting services toensure hospitals are reimbursed for every pill they prescribe,every procedure they perform and every test theyadminister. HRAA both trains and supplies the high techworkforce to hospitals to generate the predictive data used by thewhole healthcare system and offers a full suite of solutions neededto keep up with the ever-changing healthcare industry includingdata analytics software, business intelligence technology, medicalcoding, auditing, education, revenue cycle consulting, and ICD-10transition solutions. For more information 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. ANDSUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
    June 30,     Dec 31,  
    2013     2012  
    (unaudited)        
Assets            
             
Cash   $ 171,183     $ 893,458  
Accounts receivable     1,510,690       1,246,814  
Prepaid expenses     91,270       3,600  
Other current assets           12,831        688  
Total Current Assets     1,785,974       2,144,560  
                 
Property and Equipment, net     411,120       365,017  
                 
Software     940,305       258,933  
Other assets     8,865       8,871  
Finance costs, net     2,313       2,477  
Total Other Assets     951,483       270,281  
                 
Total Assets   $ 3,148,577     $ 2,779,858  
                 
Liabilities and Stockholders'Equity                
                 
Accounts payable   $ 338,296     $ 207,741  
Due to officer     75,000       75,000  
Accrued expenses     136,152       64,077  
Accrued payroll     641,621       412,186  
Loan payable to factor     552,439       827,075  
Accrued interest     --       4,524  
Lines of credit, current portion     74,791       25,000  
Capital Leases, current portion     21,972       16,923  
Notes payable, current portion, net ofdiscount     574,718       202,557  
Long term debt, current portion     32,610       37,513  
Settlement Payable     23,056       115,278  
Total CurrentLiabilities     2,470,655       1,987,874  
Capital Leases (net of current portion)     30,565       23,974  
Line of credit (net of current portion)     111,637       125,000  
Notes payable (net of current portion), netof discount     287,355       273,751  
Long term debt (net of current portion)     168,029       181,457  
Total Liabilities   $ 3,068,241     $ 2,592,056  
                 
                 
                 
Stockholders' Equity:                
Common stock ($0.001 par value, 75,000,000shares authorized,     46,511       39,055  
46,511,409 shares and 39,054,867 issued andoutstanding at                
June 30, 2013 and  December 31,2012, respectively)                
Additional paid-in capital     4,150,511       2,738,545  
Subscription receivable     --       (5,000 )
Accumulated deficit     (4,116,686 )     (2,584,798 )
Total Stockholders'Equity     80,336       187,802  
                 
Total Liabilities and Stockholders'Equity   $ 3,148,577     $ 2,779,858  

HEALTH REVENUE ASSURANCE HOLDINGS, INC. ANDSUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(unaudited)
    (for the three monthsended)  
    June 30,     June 30,  
    2013     2012  
             
Revenues   $ 2,067,464     $ 1,028,266  
                 
Cost of Revenues     _975,632       453,233  
Gross Profit     1,091,832       575,033  
                 
Operating Expenses                
Selling and administrative expenses     1,941,675       1,047,334  
Research and development     --       20,920  
Depreciation and amortization     19,169       12,879  
Total Operating Expenses     1,960,844       1,081,133  
                 
Operating Loss     (869,012 )     (506,100 )
                 
Other Income (Expense)                
Other income, net     635       --  
Interest expense     (228,684 )     (4,922 )
Total Other Income (Expense), net     (228,049 )     (4,922 )
                 
Loss before provision for incometaxes     (1,097,061 )     (511,022 )
                 
Provision for income taxes     --       --  
Net Loss   $ (1,097,061 )   $ (511,022 )
                 
Net Loss Per Share                
basic and diluted   $ (0.02 )   $ (0.01 )
Weighted Average Number of SharesOutstanding                
basic and diluted     45,422,517       35,229,195  
CONTACT: Investor Contacts:         KCSA Strategic Communications         Philip Carlson / Alex Woodbury         +1 212.896.1233 / +1 212.896.1267         pcarlson@kcsa.com / awoodbury@kcsa.com

HRAA

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