Financial Performance - Total revenue for the second quarter of 2021 decreased by 1.8% compared to the same period in 2020, while revenue from professional fees increased by $2.4 million, or 258.5%[108] - Gross profit for the second quarter of 2021 increased by $566,912, or 145.7%, reaching $955,928, with an overall gross profit margin of 20.2%, up from 8.1% in 2020[109] - For the three months ended June 30, 2021, three subcontracts represented 47.5% of total revenue and 85.7% of gross profit[103] - Income from operations for the first six months of 2021 was $322,849, compared to a loss of $162,057 in 2020, marking a difference of $484,906[118] - The gross profit margin for professional fees in the first six months of 2021 was 33.0%, while software sales contributed a gross profit margin of only 3.1%[115] Acquisition and Integration - The acquisition of Tellenger, Inc. contributed to a $4.0 million increase in professional fees revenue, or 225.3%, in the first six months of 2021[114] - Selling, general and administrative expenses (SG&A) increased by $638,817 in the first six months of 2021, partly due to the incorporation of Tellenger's administrative structure[116] - The company incurred acquisition costs of $153,286 related to the Tellenger acquisition in the first six months of 2021[117] - The integration of Tellenger, Inc. into the company's internal control systems is expected to be completed by the start of the 2022 calendar year[128] Liquidity and Financing - Cash balance at June 30, 2021, was $1,532,764, indicating sufficient liquidity for operations[119] - The company secured a $1 million term loan and a $1 million revolving line of credit, with a current balance of $916,667 and $402,306 respectively as of June 30, 2021[120] - A private placement raised $495,999 in March 2021, with an additional $83,545 from exercised stock options through June 30, 2021[121] - The company accrued $477,268 through June 30, 2021, related to a financing component of a subcontract, with expectations to release the total amount in Q4 2021[123] - The company received a $450,000 Paycheck Protection Program loan on April 20, 2020, with a fixed interest rate of 1% and a two-year term[122] Operational Developments - A lease for new headquarters in Fairfax, Virginia, was executed to begin on July 1, 2021, to meet foreseeable facility requirements[124] - There were no material commitments for capital expenditures reported[125] Compliance and Controls - The company’s disclosure controls and procedures were evaluated as effective as of June 30, 2021[127] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended June 30, 2021[128] - No legal proceedings were reported against the company[131] Future Plans - The company plans to elevate its common stock to trade on a major exchange before the end of 2021[102]

Revenue and Profitability - Revenue for the first quarter of 2021 was $3,419,580, an increase of $1,357,824 or 65.9% compared to $2,061,756 in the first quarter of 2020[90] - Professional fee revenue increased to $2,439,259 in Q1 2021, up $1,594,856 or 188.9% from $844,403 in Q1 2020[90] - Gross profit for Q1 2021 was $1,019,650, representing 29.8% of revenue, compared to $278,827 or 13.5% of revenue in Q1 2020[91] - Net income for Q1 2021 was $270,815, or 7.9% of revenue, compared to a net loss of ($126,339), or (6.1%) of revenue in Q1 2020[95] - Software revenue decreased to $980,321 in Q1 2021, down $237,032 or 19.5% from $1,217,353 in Q1 2020[90] Expenses and Financial Position - Selling, general and administrative expenses were $545,663, or 16.0% of revenues, in Q1 2021, an increase of $204,850 or 60.1% from Q1 2020[92] - The company raised $499,549 in equity transactions and borrowed $500,000 from its line of credit, resulting in a cash balance of $3,015,943 at March 31, 2021[96] - As of March 31, 2021, the company had a revolving line of credit with a bank for up to $1,000,000, with $500,000 outstanding[97] - On April 16, 2021, the company secured a $1 million 24-month term loan and a $1 million revolving line of credit for the Tellenger acquisition[98] - The company received a Paycheck Protection Program loan of $450,000 on April 20, 2020, with a fixed interest rate of 1% and a term of two years[99] - The company anticipates being able to meet its cash requirements for at least one year from the filing date of the Quarterly Report[100] Acquisitions and Business Strategy - The company acquired Tellenger, Inc. on April 7, 2021, to enhance its capabilities in cyber security, cloud services, and data analytics[78] - The company is exploring additional acquisition opportunities that align with its business plan and complement its current operations[81] Government Contracts - Prime contracts with U.S. government agencies generated 41.1% of revenue, while subcontracts under federal procurements accounted for 57.6% of revenue in Q1 2021[86] Lease and Commitments - The current lease for corporate offices expires on June 30, 2021, with a new lease expected to commence on July 1, 2021[101] - The company has no material commitments for capital expenditures[102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) Virginia 54-1167364 (State o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) Virginia 54-1167364 (State or oth ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) Virginia 54-1167364 (State or ot ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) Virginia 54-1167364 (State o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) Virginia 54-116 ...

Information Analysis Incorporated Form 10-Q First Quarter 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-22405 Information Analysis Incorporated (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 11240 Waples Mill Road Suite 201 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20 ...