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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
The
Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 13, 2024
INTELLINETICS,
INC.
(Exact
name of Registrant as specified in its charter)
Nevada |
|
001-41495 |
|
87-0613716 |
(State
or other jurisdiction
of
incorporation) |
|
(Commission
File
Number) |
|
(I.R.S
Employer
Identification
No.) |
2190
Dividend Dr., Columbus, Ohio |
|
43228 |
(Address
of principal executive offices) |
|
(Zip
code) |
Registrant’s
telephone number, including area code: (614) 388-8908
Intellinetics,
Inc.
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under
any of the following provisions (see General Instruction A.2. below):
|
☐ |
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
|
|
☐ |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
|
|
☐ |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Common
Stock, $0.001 par value |
|
INLX |
|
NYSE
American |
Securities
registered pursuant to Section 12(g) of the Act: Common Stock, $0.001 par value
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
2.02 Results of Operations and Financial Condition.
On
August 13, 2024, the Company issued a press release announcing its financial results for the fiscal quarter ended June 30, 2024. A copy
of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The
information reported under this Item 2.02 of Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed”
for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject
to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities
Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item
9.01 Financial Statements and Exhibits
(d)
Exhibits
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
|
INTELLINETICS,
INC. |
|
|
|
|
By: |
/s/
James F. DeSocio |
|
|
James
F. DeSocio |
|
|
President
and Chief Executive Officer |
|
|
|
Dated:
August 13, 2024 |
|
|
Exhibit
99.1
Intellinetics
Grows 2024 Revenues 9.0% for Second Quarter of 2024
SaaS
Revenue Increases 9.6% and
Professional
Services Revenue Increases 15.8% with GAAP Profitability
COLUMBUS,
OH – August 13, 2024 – Intellinetics, Inc. (NYSE American: INLX), a digital
transformation solutions provider, announced financial results for the three and six months ended June 30, 2024.
2024
Second Quarter Financial Highlights
|
● |
Total
Revenue increased 9.0% over the same period in 2023; the growth in the second quarter was fully organic. |
|
● |
Software
as a Service revenue increased 9.6% over the same period in 2023. |
|
|
○ |
“IPAS”
(IntelliCloud Payables Automation System) continued its commercialization; live reference accounts doubled to four in the quarter
and they are running smoothly. An additional three are scheduled to go live in Q3 2024. |
|
|
○ |
Management
believes IPAS will be the primary driver of the Company’s SAAS growth going forward. |
|
● |
Professional
services revenue increased 15.8% over the same period in 2023. |
|
● |
Net
income was $75,050, or $0.02 net income per basic and fully diluted share, compared to net income of $135,734, or $0.03 per basic
and fully diluted share, for the same period in 2023. |
|
● |
Adjusted
EBITDA increased 7.1% to $698,217, compared to $651,646 for the same period in 2023. |
|
● |
Ended
the quarter with $2,139,500 in debt principal, down from $2,964,500 at December 31, 2023 after paying down $325,000 in the quarter
as a pre-payment. Year-to-date, Intellinetics has made $825,000 in debt pre-payments, and expects to pay down another $800,000 in
Q3. |
| |
For the Quarter ended June 30, | |
| |
2024 | | |
2023 | |
| |
| | |
| |
Revenues: | |
| | | |
| | |
Sale of software | |
$ | 14,933 | | |
$ | 63,646 | |
Software as a service | |
| 1,400,591 | | |
| 1,277,918 | |
Software maintenance services | |
| 353,966 | | |
| 349,139 | |
Professional services | |
| 2,662,358 | | |
| 2,298,316 | |
Storage and retrieval services | |
| 209,745 | | |
| 269,411 | |
Total revenues | |
$ | 4,641,593 | | |
$ | 4,258,430 | |
James
F. DeSocio, President & CEO of Intellinetics, stated, “We continue to grow SaaS revenue, overall recurring revenue, and
maintain solid profitability and cash generation while reducing our leverage and investing in our sales and marketing capabilities. Demand
for our SaaS offerings remains robust, including encouraging market reception to our new IPAS solution, and we are building our SaaS-focused
sales organization to take advantage of this opportunity. The return on investment for IPAS customers is typically well less than a year
and the overall return is financially compelling, creating a large addressable market. We continue to believe that IPAS has the potential
to rapidly expand our recurring revenue and support sustainable, profitable growth for years to come.”
“The
quarter benefitted from excellent professional services revenue that exceeded previous quarters, in fact, Q2 2024 was a record revenue
quarter,” continued DeSocio. “As discussed last quarter, our largest professional services customer plans to transition certain
tasks performed by our document conversion business from one office location to another location in a way that could reduce annual revenue
of our document conversion segment. The amount of the future revenue reduction is still uncertain, and the transition has been delayed
by the customer with no clear timeline. We are continuing to negotiate with the customer to mitigate the impact of this future revenue
reduction. In the meantime, the real star of Q2 2024 was the management team in our Document Conversion division. I’m extremely
proud of how hard they’ve worked to grow the business and scale our operations.”
“Year-to-date,
the strong free cash flow has enabled us to pre-pay $825,000 of our long-term debt so far this year, leaving us with a debt principal
balance of just $2.1 million at June 30,” continued DeSocio. “We’ve accomplished this even as we’ve increased
our operating expenses with structural investments designed to help us scale. We have implemented NetSuite to provide better visibility
and functionality into our financials and project profitability and also grew our development team to expediate new product releases.
We intend to continue to reduce our leverage while further investing in sales and marketing initiatives. Specifically, we’re planning
to prepay another $800,000 before the end of August. This demonstrates the structural profitability of our business model. As this strategy
matures, we will be positioned for robust profitability and sustainable growth, with a high predictability.”
Summary
– 2024 Second Quarter Results
Revenues
for the three months ended June 30, 2024 were $4,641,593, an increase of 9.0%, as compared with $4,258,430 for the same period in 2023.
This organic increase was driven by a 9.6% increase in SaaS revenue, and a 15.8% increase in professional services fees, partially offset
by lower sales of storage and retrieval and modest growth, at 1.4% as expected, in software maintenance services. Recurring revenue grew
6.6% and represented 57% of total revenue.
Total
operating expenses increased 23.4% to $2,830,873, compared to $2,294,045, driven by higher non-cash depreciation and amortization expenses
including an incremental $135,900 related to our issuance of restricted stock awards to employees, planned investments in sales and marketing,
and higher general and administrative expenses. Income from operations was $172,106 compared to income from operations of $296,388 in
the second quarter last year.
Intellinetics
reported net income of $75,050 compared to net income of $135,734 for the same period in 2023. Basic and diluted net income per share
for the three months ended June 30, 2024 was $0.02, compared to net income per share of $0.03 per basic and fully diluted share for the
period ended June 30, 2023. Adjusted EBITDA was $698,217 compared to $651,646 in 2023.
Summary
– 2023 Year-to-Date Results
Revenues
for the six months ended June 30, 2024 were $9,148,677, an increase of 8.3% compared to $8,445,263 for the same period in 2023. Total
operating expenses increased 23.8% to $5,764,997 compared to $4,655,885. In addition to structural investments for growth and scale,
the primary driver of the expense increase was $533,919 related to our issuance of restricted stock awards to employees, a non-cash expense
except for $69,525. Income from operations was $137,626, compared to income from operations of $580,387 last year. Intellinetics reported
a net loss of $99,664, or $(0.02) per basic and diluted share (inclusive of a $397,901 charge in the first quarter of 2024 related to
restricted stock awards), compared to net income of $248,297, or $0.06 per basic and diluted share, for the same period in 2023. Adjusted
EBITDA was $1,371,579 compared to $1,281,525.
2024
Outlook
Based
on management’s current plans and assumptions, the Company reiterated expectations that it will grow revenues on a year-over-year
basis for the fiscal year 2024, and revised expectations for Adjusted EBITDA to decline modestly compared to 2023.
“Industry
response to our SaaS solutions has given us confidence that the time is right to meaningfully, but judiciously, upgrade our sales and
marketing investments,” commented Joe Spain, Chief Financial Officer of Intellinetics. “Historically, we have delivered reasonable
growth with a relatively small sales organization. The introduction of IPAS has significantly expanded our addressable market and our
potential customer base, and the growing portfolio warrants a more robust presence at trade shows as well as expanding our sales team.
We are investing now to drive accelerated, profitable growth in 2025 and beyond. As such, we are now revising our guidance, and expect
Adjusted EBITDA to decline compared to 2023 levels, reflecting these investments.”
Conference
Call
Intellinetics
is holding a conference call to discuss these results on a live webcast at 4:30 p.m. ET today. Interested parties can access the webcast
through the Intellinetics website at https://ir.intellinetics.com/. Investors can also dial in to the webcast by calling (877) 407-8133
(toll-free) or (201) 689-8040. A replay of the call can also be accessed via phone through August 27, 2024 by dialing (877) 660-6853
(toll-free) or (201) 612-7415 and using replay access code 13748254.
About
Intellinetics, Inc.
Intellinetics,
Inc. (NYSE American: INLX) is enabling the digital transformation. Intellinetics empowers organizations to manage, store and protect
their important documents and data. The Company’s flagship solution, the IntelliCloud™ content management platform, delivers
advanced security, compliance, workflow and collaboration features critical for highly regulated, risk-intensive markets. IntelliCloud
connects documents to users and the processes they support anytime, anywhere to accelerate innovation and empower organizations to think
and work in new ways. In addition, Intellinetics offers business process outsourcing (BPO), document and micrographics scanning services,
and records storage. From highly regulated industries like Healthcare/Human Service Providers, K-12, Public Safety, and State and Local
Governments, to businesses looking to move away from paper-based processes, Intellinetics is the all-in-one, compliant, document management
solution. Intellinetics is headquartered in Columbus, Ohio. For additional information, please visit www.intellinetics.com.
Cautionary
Statement
Statements
in this press release which are not purely historical, including statements regarding future business and growth, increased sales and
marketing efforts, future revenues, including second quarter and full year results; organic revenue growth from both new and existing
customers; market share, growth of our markets, and better results due to price increases; sustainable profitability; the rollout and
success of new products, including IPAS; continued growth of SaaS revenue; expansion of relationships with key customers; the timing
and ongoing negotiations relating to potential revenue reductions with our largest professional services customer; execution of Intellinetics’
business plan, strategy, direction and focus; and other intentions, beliefs, expectations, representations, projections, plans or strategies
regarding future growth, financial results, and other future events are forward-looking statements. The forward-looking statements involve
risks and uncertainties including, but not limited to, the risks and uncertainties related to a potential revenue reduction from our
largest professional services customer; the risks associated with the effect of changing economic conditions including inflationary pressures,
challenges with hiring and maintaining a stable workforce, Intellinetics’ ability to execute on its business plan and strategy,
customary risks attendant to acquisitions, trends in the products markets, variations in Intellinetics’ cash flow or adequacy of
capital resources, market acceptance risks, the success of Intellinetics’ solutions providers, including human services, health
care, and education, technical development risks, and other risks, uncertainties and other factors discussed from time to time in its
reports filed with or furnished to the Securities and Exchange Commission, including in Intellinetics’ most recent annual report
on Form 10-K as well as subsequently filed reports on Form 8-K. Intellinetics cautions investors not to place undue reliance on the forward-looking
statements contained in this press release. Intellinetics disclaims any obligation and does not undertake to update or revise any forward-looking
statements in this press release. Expanded and historical information is made available to the public by Intellinetics on its website
at www.intellinetics.com or at www.sec.gov.
CONTACT:
FNK
IR
Tom
Baumann / Rob Fink
646.349.6641
/ 646.809.4048
INLX@fnkir.com
Joe
Spain, CFO
Intellinetics,
Inc.
614.921.8170
investors@intellinetics.com
Non-GAAP
Financial Measures
Intellinetics
uses non-GAAP Adjusted EBITDA as supplemental measures of our performance that are not required by, or presented in accordance with,
accounting principles generally accepted in the United States (GAAP). A non-GAAP financial measure is a numerical measure of a company’s
financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and
presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company.
Adjusted
EBITDA: Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to
net income, operating income, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from
operating activities or a measure of our liquidity. Intellinetics urges investors to review the reconciliation of non-GAAP Adjusted EBITDA
to the comparable GAAP Net Income, which is included in this press release, and not to rely on any single financial measure to evaluate
Intellinetics’ financial performance.
We
believe that Adjusted EBITDA is a useful performance measure and is used by us to facilitate a comparison of our operating performance
on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business
than measures under GAAP can provide alone. We define “Adjusted EBITDA” as earnings before interest expense, any income taxes,
depreciation and amortization expense, stock-based compensation, note conversion and note or equity offer warrant or stock expense, gain
or loss on debt extinguishment, change in fair value of contingent consideration, and transaction costs.
Reconciliation
of Net Income to Adjusted EBITDA
| |
For the Three Months Ended June 30, | |
| |
2024 | | |
2023 | |
Net income - GAAP | |
$ | 75,050 | | |
$ | 135,734 | |
Interest expense, net | |
| 97,056 | | |
| 160,654 | |
Depreciation and amortization | |
| 274,638 | | |
| 239,803 | |
Stock-based compensation | |
| 251,473 | | |
| 115,455 | |
Adjusted EBITDA | |
$ | 698,217 | | |
$ | 651,646 | |
| |
For the Six Months Ended June 30, | |
| |
2024 | | |
2023 | |
Net (loss) income - GAAP | |
$ | (99,664 | ) | |
$ | 248,297 | |
Interest expense, net | |
| 237,290 | | |
| 332,090 | |
Depreciation and amortization | |
| 538,648 | | |
| 467,521 | |
Stock-based compensation | |
| 695,305 | | |
| 233,617 | |
Adjusted EBITDA | |
$ | 1,371,579 | | |
$ | 1,281,525 | |
Recurring
Revenue: Recognized revenue for any applicable period that we characterize as being recurring in nature, without regard to contract
start or end dates or renewal rates. It includes the following revenue types: SaaS subscription agreements, maintenance contracts related
to perpetual software licenses, storage and retrieval services, and professional services revenues in the nature of business process
outsourcing. It excludes revenues of a type that are not expected to recur, primarily perpetual licenses, most document conversion services,
and other professional services that are project based. Recurring revenue is not determined by reference to deferred revenue, unbilled
revenue, or any other GAAP financial measure over any period, so the Company has not reconciled the Recurring Revenues to any GAAP measure.
Recurring revenue should not be extrapolated into a precise prediction of future revenues, because it does not take into account our
contract start and end dates and our renewal rates. Management believes that reviewing this metric, in addition to GAAP results, helps
investors and financial analysts understand the value of Intellinetics’ recurring revenue streams versus prior periods.
Reconciliation
of revenues to recurring revenues:
| |
For the Three Months Ended June 30, | |
| |
2024 | | |
2023 | |
Revenues as reported: | |
| | |
| |
Sale of software | |
$ | 14,933 | | |
$ | 63,646 | |
Software as a service | |
| 1,400,591 | | |
| 1,277,918 | |
Software maintenance services | |
| 353,966 | | |
| 349,139 | |
Professional services | |
| 2,662,358 | | |
| 2,298,316 | |
Storage and retrieval | |
| 209,745 | | |
| 269,411 | |
| |
$ | 4,641,593 | | |
$ | 4,258,430 | |
Revenues - recurring only: | |
| | | |
| | |
Sale of software - recurring | |
$ | - | | |
$ | - | |
Software as a service - recurring | |
| 1,311,644 | | |
| 1,182,483 | |
Software maintenance services - recurring | |
| 353,966 | | |
| 349,139 | |
Professional services - recurring | |
| 773,908 | | |
| 704,023 | |
Storage and retrieval - recurring | |
| 190,303 | | |
| 230,609 | |
| |
$ | 2,629,821 | | |
$ | 2,467,066 | |
Revenues - non-recurring only: | |
| | | |
| | |
Sale of software - non-recurring | |
$ | 14,933 | | |
$ | 63,646 | |
Software as a service - non-recurring | |
| 88,947 | | |
| 95,435 | |
Software maintenance services - non-recurring | |
| - | | |
| - | |
Professional services - non-recurring | |
| 1,888,450 | | |
| 1,593,481 | |
Storage and retrieval - non-recurring | |
| 19,442 | | |
| 38,802 | |
| |
$ | 2,011,772 | | |
$ | 1,791,364 | |
| |
| | | |
| | |
Total recurring and non-recurring revenues | |
$ | 4,641,593 | | |
$ | 4,258,430 | |
Note
1 – Software as a service non-recurring revenue is comprised of professional services setup fees which are recognized ratably over
the initial contract period. They do not renew, and are therefore non-recurring. Under ASC 606, they are deemed essential to the functionality
of the subscription Software as a service, and are therefore recognized together with the subscription Software as a service revenue.
INTELLINETICS,
INC. and SUBSIDIARIES
Condensed
Consolidated Statements of Operations
(unaudited)
| |
For the Three Months Ended June 30, | | |
For the Six Months Ended June 30, | |
| |
2024 | | |
2023 | | |
2024 | | |
2023 | |
| |
| | |
| | |
| | |
| |
Revenues: | |
| | | |
| | | |
| | | |
| | |
Sale of software | |
$ | 14,933 | | |
$ | 63,646 | | |
$ | 20,712 | | |
$ | 78,939 | |
Software as a service | |
| 1,400,591 | | |
| 1,277,918 | | |
| 2,805,744 | | |
| 2,516,350 | |
Software maintenance services | |
| 353,966 | | |
| 349,139 | | |
| 711,949 | | |
| 698,681 | |
Professional services | |
| 2,662,358 | | |
| 2,298,316 | | |
| 5,142,036 | | |
| 4,597,605 | |
Storage and retrieval services | |
| 209,745 | | |
| 269,411 | | |
| 468,236 | | |
| 553,688 | |
Total revenues | |
| 4,641,593 | | |
| 4,258,430 | | |
| 9,148,677 | | |
| 8,445,263 | |
| |
| | | |
| | | |
| | | |
| | |
Cost of revenues: | |
| | | |
| | | |
| | | |
| | |
Sale of software | |
| 1,125 | | |
| 7,344 | | |
| 6,190 | | |
| 15,525 | |
Software as a service | |
| 217,586 | | |
| 258,382 | | |
| 433,578 | | |
| 479,022 | |
Software maintenance services | |
| 13,364 | | |
| 15,117 | | |
| 29,074 | | |
| 31,833 | |
Professional services | |
| 1,344,541 | | |
| 1,307,341 | | |
| 2,628,604 | | |
| 2,494,457 | |
Storage and retrieval services | |
| 61,998 | | |
| 79,813 | | |
| 148,608 | | |
| 188,154 | |
Total cost of revenues | |
| 1,638,614 | | |
| 1,667,997 | | |
| 3,246,054 | | |
| 3,208,991 | |
| |
| | | |
| | | |
| | | |
| | |
Gross profit | |
| 3,002,979 | | |
| 2,590,433 | | |
| 5,902,623 | | |
| 5,236,272 | |
| |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | |
General and administrative | |
| 2,025,796 | | |
| 1,561,939 | | |
| 4,154,289 | | |
| 3,116,550 | |
Sales and marketing | |
| 530,439 | | |
| 492,303 | | |
| 1,072,060 | | |
| 1,071,814 | |
Depreciation and amortization | |
| 274,638 | | |
| 239,803 | | |
| 538,648 | | |
| 467,521 | |
| |
| | | |
| | | |
| | | |
| | |
Total operating expenses | |
| 2,830,873 | | |
| 2,294,045 | | |
| 5,764,997 | | |
| 4,655,885 | |
| |
| | | |
| | | |
| | | |
| | |
Income from operations | |
| 172,106 | | |
| 296,388 | | |
| 137,626 | | |
| 580,387 | |
| |
| | | |
| | | |
| | | |
| | |
Interest expense, net | |
| (97,056 | ) | |
| (160,654 | ) | |
| (237,290 | ) | |
| (332,090 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net income (loss) | |
$ | 75,050 | | |
$ | 135,734 | | |
$ | (99,664 | ) | |
$ | 248,297 | |
| |
| | | |
| | | |
| | | |
| | |
Basic net income (loss) per share: | |
$ | 0.02 | | |
$ | 0.03 | | |
$ | (0.02 | ) | |
$ | 0.06 | |
Diluted net income (loss) per share: | |
$ | 0.02 | | |
$ | 0.03 | | |
$ | (0.02 | ) | |
$ | 0.06 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common shares outstanding - basic | |
| 4,229,518 | | |
| 4,073,757 | | |
| 4,171,570 | | |
| 4,073,757 | |
Weighted average number of common shares outstanding - diluted | |
| 4,722,063 | | |
| 4,073,757 | | |
| 4,171,570 | | |
| 4,073,757 | |
INTELLINETICS,
INC. and SUBSIDIARIES
Condensed
Consolidated Balance Sheets
| |
(unaudited) | | |
| |
| |
June 30, | | |
December 31, | |
| |
2024 | | |
2023 | |
| |
| | |
| |
ASSETS | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash | |
$ | 1,680,669 | | |
$ | 1,215,248 | |
Accounts receivable, net | |
| 1,449,188 | | |
| 1,850,375 | |
Accounts receivable, unbilled | |
| 1,483,313 | | |
| 1,320,837 | |
Parts and supplies, net | |
| 93,926 | | |
| 110,272 | |
Contract assets | |
| 141,214 | | |
| 140,165 | |
Prepaid expenses and other current assets | |
| 335,380 | | |
| 367,478 | |
Total current assets | |
| 5,183,690 | | |
| 5,004,375 | |
| |
| | | |
| | |
Property and equipment, net | |
| 999,276 | | |
| 924,257 | |
Right of use assets, operating | |
| 2,276,171 | | |
| 2,532,928 | |
Right of use assets, finance | |
| 274,112 | | |
| 219,777 | |
Intangible assets, net | |
| 3,654,183 | | |
| 3,909,338 | |
Goodwill | |
| 5,789,821 | | |
| 5,789,821 | |
Other assets | |
| 685,471 | | |
| 645,764 | |
Total assets | |
$ | 18,862,724 | | |
$ | 19,026,260 | |
| |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable | |
$ | 340,298 | | |
$ | 194,454 | |
Accrued compensation | |
| 540,237 | | |
| 337,884 | |
Accrued expenses | |
| 160,947 | | |
| 164,103 | |
Lease liabilities, operating - current | |
| 797,870 | | |
| 712,607 | |
Lease liabilities, finance - current | |
| 66,000 | | |
| 49,926 | |
Deferred revenues | |
| 2,755,185 | | |
| 2,927,808 | |
Total current liabilities | |
| 4,660,537 | | |
| 4,386,782 | |
| |
| | | |
| | |
Long-term liabilities: | |
| | | |
| | |
Notes payable - net of current portion | |
| 1,467,312 | | |
| 2,209,242 | |
Notes payable - related party | |
| 572,063 | | |
| 560,602 | |
Lease liabilities, operating - net of current portion | |
| 1,596,960 | | |
| 1,942,970 | |
Lease liabilities, finance - net of current portion | |
| 219,490 | | |
| 175,943 | |
Total long-term liabilities | |
| 3,855,825 | | |
| 4,888,757 | |
Total liabilities | |
| 8,516,362 | | |
| 9,275,539 | |
| |
| | | |
| | |
Stockholders’ equity: | |
| | | |
| | |
Common stock, $0.001 par value, 25,000,000 shares authorized; 4,230,806 and 4,113,621 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | |
| 4,231 | | |
| 4,114 | |
Additional paid-in capital | |
| 31,536,818 | | |
| 30,841,630 | |
Accumulated deficit | |
| (21,194,687 | ) | |
| (21,095,023 | ) |
Total stockholders’ equity | |
| 10,346,362 | | |
| 9,750,721 | |
Total liabilities and stockholders’ equity | |
$ | 18,862,724 | | |
$ | 19,026,260 | |
INTELLINETICS,
INC. and SUBSIDIARIES
Condensed
Consolidated Statements of Cash Flows
(unaudited)
| |
For the Six Months Ended June 30, | |
| |
2024 | | |
2023 | |
| |
| | |
| |
Cash flows from operating activities: | |
| | | |
| | |
Net (loss) income | |
$ | (99,664 | ) | |
$ | 248,297 | |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |
| | | |
| | |
Depreciation and amortization | |
| 538,648 | | |
| 467,521 | |
Bad debt (recovery) expense | |
| (143 | ) | |
| 27,528 | |
Loss on disposal of fixed assets | |
| 547 | | |
| - | |
Amortization of deferred financing costs | |
| 94,531 | | |
| 95,152 | |
Amortization of debt discount | |
| - | | |
| 17,778 | |
Amortization of right of use assets, financing | |
| 34,954 | | |
| 14,959 | |
Share based compensation | |
| 695,305 | | |
| 233,617 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Accounts receivable | |
| 401,330 | | |
| (233,431 | ) |
Accounts receivable, unbilled | |
| (162,476 | ) | |
| (441,603 | ) |
Parts and supplies | |
| 16,346 | | |
| 652 | |
Prepaid expenses and other current assets | |
| 31,049 | | |
| (27,999 | ) |
Accounts payable and accrued expenses | |
| 345,041 | | |
| (22,062 | ) |
Operating lease assets and liabilities, net | |
| (3,990 | ) | |
| 6,280 | |
Deferred revenues | |
| (172,623 | ) | |
| (686,320 | ) |
Total adjustments | |
| 1,818,519 | | |
| (547,928 | ) |
Net cash provided by (used in) operating activities | |
| 1,718,855 | | |
| (299,631 | ) |
| |
| | | |
| | |
Cash flows from investing activities: | |
| | | |
| | |
Capitalization of internal use software | |
| (198,051 | ) | |
| (208,417 | ) |
Purchases of property and equipment | |
| (200,715 | ) | |
| (82,684 | ) |
Net cash used in investing activities | |
| (398,766 | ) | |
| (291,101 | ) |
| |
| | | |
| | |
Cash flows from financing activities: | |
| | | |
| | |
Payment of earnout liabilities | |
| - | | |
| (700,000 | ) |
Principal payments on financing lease liability | |
| (29,668 | ) | |
| (12,312 | ) |
Repayment of notes payable | |
| (825,000 | ) | |
| (262,950 | ) |
Net cash used in financing activities | |
| (854,668 | ) | |
| (975,262 | ) |
| |
| | | |
| | |
Net increase (decrease) in cash | |
| 465,421 | | |
| (1,565,994 | ) |
Cash - beginning of period | |
| 1,215,248 | | |
| 2,696,481 | |
Cash - end of period | |
$ | 1,680,669 | | |
$ | 1,130,487 | |
| |
| | | |
| | |
Supplemental disclosure of cash flow information: | |
| | | |
| | |
Cash paid during the period for interest | |
$ | 160,813 | | |
$ | 226,570 | |
Cash paid during the period for income taxes | |
$ | 12,999 | | |
$ | 7,708 | |
| |
| | | |
| | |
Supplemental disclosure of non-cash financing activities: | |
| | | |
| | |
Right-of-use asset obtained in exchange for finance lease liability | |
$ | 89,289 | | |
$ | - | |
v3.24.2.u1
Cover
|
Aug. 13, 2024 |
Cover [Abstract] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Aug. 13, 2024
|
Entity File Number |
001-41495
|
Entity Registrant Name |
INTELLINETICS,
INC.
|
Entity Central Index Key |
0001081745
|
Entity Tax Identification Number |
87-0613716
|
Entity Incorporation, State or Country Code |
NV
|
Entity Address, Address Line One |
2190
Dividend Dr.
|
Entity Address, City or Town |
Columbus
|
Entity Address, State or Province |
OH
|
Entity Address, Postal Zip Code |
43228
|
City Area Code |
(614)
|
Local Phone Number |
388-8908
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Common
Stock, $0.001 par value
|
Trading Symbol |
INLX
|
Security Exchange Name |
NYSEAMER
|
Entity Emerging Growth Company |
false
|
Entity Information, Former Legal or Registered Name |
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Inc.
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Intellinetics (AMEX:INLX)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Intellinetics (AMEX:INLX)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024