InsPro Technologies Corporation Announces Third Quarter 2016 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, 2016.

Third Quarter 2016 Highlights
  • Revenues were $5,647,379 in the Third Quarter of 2016, a 12% decrease as compared to $6,381,855 in the Third Quarter of 2015. The decrease was the result of lower professional services revenue offset by a $500,000 reseller fee pertaining to the Company's granting in Third Quarter 2015 an unaffiliated 3 rd party the exclusive right to market InsPro Enterprise to prospective clients for their administration of long term care insurance products.
  • Net income was $56,313 in the Third Quarter of 2016 as compared to a net loss of $394,447 in the Third Quarter of 2015. Included in the net income in Third Quarter 2016 and the net loss in Third Quarter 2015 was $19,465 and $203,108 of non cash stock based fees and compensation expense, respectively.

Year-to-Date 2016 Highlights
  • Revenues were $16,883,950 in the nine months ended September 30, 2016, an 8% increase as compared to the $15,702,781 in the nine months ended September 30 2015. Revenue included a reduction of $1,299,963 in the nine months ended September 30, 2016, for non-cash stock based fees. Increases of $2,602,532 in professional services revenues excluding stock based fees, $409,812 of ASP revenue and the $500,000 reseller fee in Third Quarter 2016 were partially offset by $1,026,624 of lower software license revenue in the nine months ended September 30, 2016 as compared to the same period in 2015.
  • Net loss was $1,826,787 in the nine months ended September 30, 2016 as compared to a net loss of $5,105,174 in the nine months ended September 30, 2015. The net loss in the nine months ended September 30, 2016 was favorably impacted by higher revenues, which was the result in the growth in clients and a reseller fee in 2016, combined with lower cost of revenues, a result of decreased utilization of several outside consulting firms that assisted with modifications to InsPro Enterprise's functionality and new clients' implementations of InsPro Enterprise as compared to the same time period last year. Included in the net loss was $1,502,806 and $433,473 of non cash stock based fees and compensation expense in nine months ended September 30, 2016 and 2015, respectively.

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 Ended September 30, For the Nine Months Ended September 30,
2016 2015 2016 2015
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
 

Revenues, net of $1,299,963 of stock based fees paid to a client during the quarter ended June 30, 2016
$ 5,647,379 $ 6,381,855 $ 16,883,950 $ 15,702,781
 
Cost of revenues 4,322,737 5,324,024 14,564,361 16,339,394
       
Gross profit (loss)   1,324,642     1,057,831     2,319,589     (636,613 )
 
Selling, general and administrative expenses   1,275,345     1,446,394     4,181,427     4,481,886  
 
Operating gain (loss) from continuing operations   49,297     (388,563 )   (1,861,838 )   (5,118,499 )
 
Other income (expense):
Gain (loss) on the sale of equipment - (2,931 ) - 17,738
Interest expense   (7,831 )   (39,999 )   (18,290 )   (121,195 )
 
Total other income (expense)   (7,831 )   (42,930 )   (18,290 )   (103,457 )
 
Gain (loss) from continuing operations   41,466     (431,493 )   (1,880,128 )   (5,221,956 )
 
Income from discontinued operations   14,847     37,046     53,341     116,782  
 
Net income (loss) $ 56,313   $ (394,447 ) $ (1,826,787 ) $ (5,105,174 )
 
Net income (loss) per common share - basic and diluted:
Income (loss) from operations $ 0.01 $ (0.04 ) $ (0.04 ) $ (0.12 )
Income from discontinued operations   -     -     -     -  
Net income (loss) per common share $ 0.01   $ (0.04 ) $ (0.04 ) $ (0.12 )
 
Weighted average common shares outstanding - basic and diluted   41,543,655     41,543,655     41,543,655     41,543,655  
 
 
INSPRO TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
   
September 30, 2016 December 31, 2015
(Unaudited)
ASSETS
 
CURRENT ASSETS:
Cash $ 2,791,900 $ 3,398,293
Accounts receivable, net 3,244,562 3,959,437
Prepaid expenses 279,630 179,700
Other current assets 42,758 4,954
Assets of discontinued operations   6,288     15,212  
 
Total current assets 6,365,138 7,557,596
 
Property and equipment, net 635,518 747,937
Other assets   -     40,000  
 
Total assets $ 7,000,656   $ 8,345,533  
 
LIABILITIES AND SHAREHOLDERS' DEFICIT
 
CURRENT LIABILITIES:
Notes payable $ 73,331 $ 27,474
Accounts payable 4,750,794 5,410,146
Accrued expenses 482,234 497,088
Current portion of capital lease obligations 230,215 227,880
Deferred revenue   2,745,033     2,680,361  
 
Total current liabilities   8,281,607     8,842,949  
 
LONG TERM LIABILITIES:
Deferred revenue 1,500,000 2,000,000
Capital lease obligations   186,258     149,892  
 
Total long term liabilities   1,686,258     2,149,892  
 
Total liabilities   9,967,865     10,992,841  
 
COMMITMENTS AND CONTINGENCIES:
 
SHAREHOLDERS' DEFICIT:
Preferred stock ($.001 par value; 20,000,000 shares authorized)

Series A convertible preferred stock; 3,437,500 shares authorized, 1,276,750 shares issued and outstanding (liquidation value $12,767,500)
2,864,104 2,864,104

Series B convertible preferred stock; 11,000,000 shares authorized, 5,307,212 and 5,305,852 shares issued and outstanding (liquidation value $15,921,636 and $15,917,556)
11,692,647 11,689,018

Common stock ($.001 par value; 500,000,000 shares authorized, 41,543,655 shares issued and outstanding)
41,543 41,543
Additional paid-in capital 48,246,041 46,742,784
Accumulated deficit   (65,811,544 )   (63,984,757 )
 
Total shareholders' deficit   (2,967,209 )   (2,647,308 )
 
Total liabilities and shareholders' deficit $ 7,000,656   $ 8,345,533  
 

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