SOURCE: Health Benefits Direct Corporation

Health Benefits Direct Corporation

November 16, 2009 16:25 ET

Health Benefits Direct Announces Third Quarter 2009 Financial Results

RADNOR, PA--(Marketwire - November 16, 2009) - Health Benefits Direct Corporation (OTCBB: HBDT), a leading technology innovator in the marketing, sales and administration of a range of insurance technology products, today announced its financial results for the third quarter ended September 30, 2009.

During the third quarter, the Company continued its previously announced restructuring activities. As part of these restructuring efforts, in the first quarter of 2009, the Company ceased selling health and life insurance products to individuals and families and disposed of a significant portion of its agency business, which is now classified as discontinued operations in the Company's financial statements.

Third Quarter Highlights

--  Revenues from continuing operations of $1.5 million, compared to $1.4
    million in the third quarter of 2008. The increase was due primarily to
    increased InsPro Technologies (formerly Atiam Technologies LLC) revenues
    from ASP, maintenance and licensing agreements.
--  Operating expenses for continuing operations of $3.7 million, compared
    to $3.0 million in the third quarter of 2008. The increase was primarily
    attributable to an increase in InsPro staffing and technology consultants
    to support current client requirements and growth plans.
--  Net loss from continuing operations of $2.2 million, compared to $1.7
    million in the third quarter of 2008. This increase is consistent with the
    Company's strategy to enhance InsPro Technologies' capacity by increasing
    expenditures for marketing, sales, infrastructure and product development.
--  Total net loss from continued and discontinued operations of $1.4
    million or ($0.03) per share, compared with total net loss of $1.7 million,
    or ($0.04) per share in the third quarter of 2008.
    

"We continue to make progress with our initiatives to further align our operations and cost structure with our promising technology business," said Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer. "We realized an $800,000 net gain from discontinued operations in the third quarter as we continue to reduce expenses that are not essential to our core technology business.

"In conjunction with our plan to continue to invest in our promising subsidiary, InsPro Technologies, we are working on obtaining additional financing through a rights offering of up to $8 million, which will give all of our shareholders the opportunity to participate in an equity investment in the Company on the same economic terms as our private placements in 2008 and 2009," Mr. Verdi concluded.

About Health Benefits Direct Corporation

Through its subsidiary, InsPro Technologies, Health Benefits Direct offers InsPro software, an internet-based marketing and administration system used by Insurance carriers and Third Party Administrators. Through its subsidiary, Insurint Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates real-time quotes from more than 100 health insurance carriers, life insurance carriers and carriers of related insurance products. www.healthbenefitsdirect.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 the growth potential of our technology platforms and obtaining additional financing through a rights offering to fund our operations. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Moreover, Health Benefits Direct 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 Health Benefit Direct's 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 Health Benefits Direct's website at www.healthbenefitsdirect.com. These documents are also available on the Securities and Exchange Commission's website at www.sec.gov. Health Benefits Direct does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.

            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS




                    For the Three Months Ended  For the Nine Months Ended
                          September 30,               September 30,
                    --------------------------  --------------------------
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
                    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Revenues            $  1,475,696  $  1,426,160  $  4,733,406  $  4,120,950


Operating Expenses:
   Salaries,
    employee
    benefits and
    related taxes      1,805,213     1,587,203     6,151,608     5,156,072
   Advertising and
    other marketing       90,814         6,171       231,923        29,971
   Depreciation and
    amortization         293,696       253,770       859,103       759,285
   Rent, utilities,
    telephone and
    communications       201,700       149,299       613,017       469,541
   Professional
    fees                 942,010       715,080     2,449,555     1,773,352
   Other general
    and administrative   372,011       337,786     1,088,244     1,129,043
                    ------------  ------------  ------------  ------------

                       3,705,444     3,049,309    11,393,450     9,317,264
                    ------------  ------------  ------------  ------------

Loss from
 operations           (2,229,748)   (1,623,149)   (6,660,044)   (5,196,314)
                    ------------  ------------  ------------  ------------

Gain (loss) from
 discontinued
 operations              806,791      (118,548)      423,764    (2,245,592)

Other income
 (expense):
   Interest income         4,771        14,384        27,082        67,119
   Interest expense      (28,413)      (11,695)      (72,449)      (27,910)
                    ------------  ------------  ------------  ------------

      Total other
       income
       (expense)         (23,642)        2,689       (45,367)       39,209
                    ------------  ------------  ------------  ------------

Net loss            $ (1,446,599) $ (1,739,008) $ (6,281,647) $ (7,402,697)
                    ============  ============  ============  ============

Net loss per common
 share - basic and
 diluted:
  Loss from
   operations       $      (0.05) $      (0.04) $      (0.16) $      (0.13)
  Gain (loss) from
   discontinued
   operations               0.02         (0.00)         0.01         (0.06)
                    ------------  ------------  ------------  ------------
  Net loss per
   common share -
   basic and
   diluted          $      (0.03) $      (0.04) $      (0.15) $      (0.19)
                    ============  ============  ============  ============

Weighted average
 common shares
 outstanding -
 basic and diluted    41,279,645    41,354,645    41,279,645    39,248,333
                    ============  ============  ============  ============



            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS


                                    September 30, 2009  December 31, 2008
                                    ------------------  ------------------
                                        (Unaudited)         (Audited)
               ASSETS

CURRENT ASSETS:
  Cash                              $          641,666  $        1,842,419
  Accounts receivable, less
   allowance for doubtful accounts
   $3,034 and $0                               899,797             461,875
  Tax receivable                                 5,615              31,290
  Prepaid expenses                             104,819             126,804
  Other current assets                          11,820               8,461
                                    ------------------  ------------------

    Total current assets                     1,663,717           2,470,849

  Restricted cash                            1,150,000           1,150,000
  Property and equipment, net of
   accumulated depreciation of
   $467,624 and $267,384                       846,054             729,881
  Intangibles, net of accumulated
   amortization of $1,616,345 and
   $1,021,187                                1,293,914           1,911,461
  Other assets                                 110,608             110,608
                                    ------------------  ------------------

    Total assets                    $        5,064,293  $        6,372,799
                                    ==================  ==================

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Note payable                      $           15,016  $                -
  Accounts payable                             780,011             733,128
  Accrued expenses                           1,062,364             697,256
  Current portion of capital lease
   obligations                                 123,004              89,297
  Due to related parties                        40,000               4,315
  Deferred revenue                             436,128             457,500
  Liabilities of discontinued
   operations                                2,305,272           2,238,315
                                    ------------------  ------------------

    Total current liabilities                4,761,795           4,219,811
                                    ------------------  ------------------

LONG TERM LIABILITIES:
    Capital lease obligations                  246,057             209,511
                                    ------------------  ------------------

    Total long term liabilities                246,057             209,511
                                    ------------------  ------------------

SHAREHOLDERS' EQUITY:
  Preferred stock ($.001 par value;
   10,000,000 shares authorized;
   Series A convertible preferred stock;
   3,437,500 shares authorized,
   1,000,000 shares issued
   and outstanding (liquidation
   value $10,000,000))                       1,983,984                   -
  Common stock ($.001 par value;
   200,000,000 shares authorized;
   41,279,645 shares issued and
   outstanding)                                 41,279              41,279
  Additional paid-in capital                45,691,766          43,281,139
  Accumulated deficit                      (47,660,588)        (41,378,941)
                                    ------------------  ------------------

    Total shareholders' equity                  56,441           1,943,477
                                    ------------------  ------------------

    Total liabilities and
     shareholders' equity           $        5,064,293  $        6,372,799
                                    ==================  ==================



            HEALTH BENEFITS DIRECT CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS




                                                For the Nine Months Ended
                                                      September 30,
                                                --------------------------
                                                    2009          2008
                                                ------------  ------------
                                                (Unaudited)   (Unaudited)
Cash Flows From Operating Activities:
 Net loss                                       $ (6,281,647) $ (7,402,697)
 Adjustments to reconcile net loss to net cash
  used in operating activities:
   Depreciation and amortization                     859,103       759,285
   Stock-based compensation and consulting           450,227     1,571,243
   Loss on impairment of property and equipment
    of discontinued operations                       416,764        88,922
   Loss on impairment of intangible assets of
    discontinued operations                        1,222,817       295,633
   Gain on the disposal of property and
    equipment of discontinued operations            (227,763)       92,374
   Provision for bad debt                              2,489        63,851
 Changes in assets and liabilities:
   Accounts receivable                              (440,411)     (212,914)
   Tax receivable                                     25,675       (31,290)
   Prepaid expenses                                   21,985       (55,822)
   Other current assets                               (3,359)       11,841
   Other assets                                            -         1,722
   Accounts payable                                   46,883        22,462
   Accrued expenses                                  365,109      (397,953)
   Due to related parties                             (4,315)      (28,500)
   Deferred revenue                                  (21,372)     (149,125)
   Income tax payable                                      -      (157,288)
   Liabilities of discontinued operations         (1,409,421)   (2,355,205)
                                                ------------  ------------

    Net cash used in operating activities         (4,977,236)   (7,883,461)
                                                ------------  ------------

Cash Flows From Investing Activities:
 Purchase of property and equipment                 (304,664)     (409,352)
 Proceeds from the sale of property and
  equipment of discontinued operations                11,495        27,000
 Purchase of intangible assets and
  capitalization of software development                   -      (291,847)
                                                ------------  ------------

    Net cash used in investing activities           (293,169)     (674,199)
                                                ------------  ------------

Cash Flows From Financing Activities:
 Gross proceeds from note                             32,831             -
 Payments on note payable                            (17,816)            -
 Gross proceeds from capital leases                  155,055       193,498
 Payments on capital leases                          (84,801)      (23,979)
 Gross proceeds from sales of preferred stock      4,000,000             -
 Gross proceeds from sales of common stock                 -     5,000,000
 Fees paid in connection with offering               (15,617)      (70,238)
                                                ------------  ------------

    Net cash provided by financing activities      4,069,652     5,099,281
                                                ------------  ------------

    Net decrease in cash                          (1,200,753)   (3,458,379)

Cash - beginning of the year                       1,842,419     5,787,585
                                                ------------  ------------

Cash - end of the period                        $    641,666  $  2,329,206
                                                ============  ============



Contact Information

  • Contact:

    Brandi Piacente
    The Piacente Group
    212-481-2050
    Email Contact