Intellinetics Grows Revenues 10% in Q3 2023; 27% Year-to-Date

Initial IPAS Commercial Successes Expected to Significantly Accelerate SaaS Revenues

Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, announced financial results for the three and nine months ended September 30, 2023.

2023 Third Quarter Financial Highlights

• Total Revenue increased 10.0% over the same period in 2022.
  • The growth in Q3 was fully organic.
• Software as a Service revenue increased 6.8% over the same period in 2022.
• Professional services revenue increased 16.2% over the same period in 2022.
• Total operating expenses increased 10.3% over the same period in 2022.
• Net Income of $209,331, or $0.05 per fully diluted share, compared to net income of $217,536, or $0.05 per fully diluted share, for the same period in 2022.
• Adjusted EBITDA decreased 12.7% to $708,749, compared to $811,345 from the same period in 2022.

 

 

Three months ended September 30, 2023

 

 

Three months ended September 30, 2022

 

Revenues by revenue source

 

 

 

 

 

 

 

 

Sale of software

 

$

9,422

 

 

$

18,390

 

Software as a service

 

 

1,293,745

 

 

 

1,211,407

 

Software maintenance services

 

 

353,010

 

 

 

352,892

 

Professional services

 

 

2,333,090

 

 

 

2,007,613

 

Storage and retrieval services

 

 

259,162

 

 

 

269,325

 

Total revenues

 

$

4,248,429

 

 

$

3,859,627

 

James F. DeSocio, President & CEO of Intellinetics, stated, “We delivered another quarter of double-digit revenue growth, bolstered by continued expansion of our SaaS revenue and high customer retention, leading to continued profitability. While third quarter year-over-year net income and adjusted EBITDA results declined from a record-setting Q3 in 2022, for the 9-month period year-to-date, we generated meaningful improvements in operating income, net income, and Adjusted EBITDA. I am further pleased that our cash flow generation has continued to be strong: in the third quarter we paid off $700,000 in debt principal, fully repaying a debt financing round and bringing our year-to-date debt and earnout payments to $1.7 million. We look forward to continued growth of our business, and expect recently enacted price increases to contribute to our overall results. We continue to see strong demand. Intellinetics has built a stable, profitable platform for continued top- and bottom-line growth, and we are investing in marketing to help us capture share in the large, growing markets that we serve.”

“Our recently announced IPAS product has generated signed contracts which will yield in excess of $475,000 in annualized SaaS recurring revenue, all of which should be up and running before the end of March, 2024,” added Mr. DeSocio. ”IPAS is an excellent solution for managing payables for large and complex enterprises, providing an instant net cost savings for the customer. We look for IPAS to be a meaningful driver of accelerated growth in our SaaS revenues. IPAS is and will continue to be sold through channels where it is filling an unmet need, or direct to our existing customer base. We are excited by our early success to date, especially as it comes on top of the continued progress we are having with our other product offerings.”

“Cross-selling continues to be an area of focus,” continued Mr. DeSocio. “The number of customers using more than one of our services continues to grow. Simultaneously, we are expanding our relationship with key clients. We anticipate continued organic growth for the foreseeable future.”

Summary – 2023 Third Quarter Results

Revenues for the three months ended September 30, 2023 were $4,248,429, an increase of 10.0%, organically, as compared with $3,859,627 for the same period in 2022. The increase was driven by a 6.8% increase in SaaS revenue, and a 16.2% increase in professional services fees, partially offset by lower sales of licensed software. The increase in professional services was enabled by our ability to hire and retain people in our document conversion segment.

Total operating expenses increased 10.3% to $2,260,036, compared to $2,048,182 due to increases in depreciation and amortization (a non-cash expense) of $191,189 and general and administrative costs associated with higher revenue. Income from operations was $345,555 compared to $458,003 in the third quarter last year.

Intellinetics reported net income of $209,331, up 54% sequentially compared to the second quarter and down slightly compared to $217,536 for the same period in 2022. Basic and diluted net income per share for the three months ended September 30, 2023 and the period ended September 30, 2022 was $0.05. Adjusted EBITDA was $708,749 compared to $811,345 in the year-ago period.

Summary – 2023 Year-to-Date Results

Yellow Folder, acquired April 1, 2022, contributed $2,707,764 in revenue in the nine months ended September 30, 2023, compared to $1,620,224 in revenue in the nine months ended September 30, 2022. Inclusive of the contribution from Yellow Folder, revenues for the nine months ended September 30, 2023 were $12,639,692, an increase of 27.2% as compared with $9,978,782 for the same period in 2022. Total operating expenses increased 17.0% to $6,915,921, compared to $5,910,261. Income from operations was $925,942, an increase of 122.2% compared to income from operations of $416,779 for the first nine months last year. Intellinetics reported net income of $457,628, or $0.11 per basic and $0.10 per diluted share, compared to net loss of $176,757, or $(0.05) per basic and diluted share, for the same period in 2022. Adjusted EBITDA was $1,990,274 compared to $1,743,580.

2023 Outlook

Based on management's current plans and assumptions, the Company reiterated expectations that it will grow revenues and Adjusted EBITDA on a year-over-year basis for the fiscal year 2023.

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 [phone] (toll-free) or [phone]. A replay of the call can also be accessed via phone through November 28, 2023 by dialing [phone] (toll-free) or [phone] and using replay access code 13742495.

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, future revenues, including fourth 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; cross-selling efforts and other synergies associated with our acquisition of Yellow Folder; expansion of relationships with key customers; 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 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.

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 Loss, 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 September 30,

 

 

 

2023

 

 

2022

 

Net income (loss) - GAAP

 

$

209,331

 

$

217,536

Interest expense, net

 

 

136,224

 

 

 

240,467

 

Depreciation and amortization

 

 

247,738

 

 

 

205,849

 

Stock-based compensation

 

 

115,456

 

 

 

118,999

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

28,494

 

Adjusted EBITDA

 

$

708,749

 

$

811,345

 

 

For the Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Net income (loss) - GAAP

 

$

457,628

 

$

(176,757

)

Interest expense, net

 

 

468,314

 

 

 

593,536

 

Depreciation and amortization

 

 

715,259

 

 

 

524,070

 

Stock-based compensation

 

 

349,073

 

 

 

302,451

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

144,999

 

Transaction costs

 

 

-

 

 

 

355,281

 

Adjusted EBITDA

 

$

1,990,274

 

$

1,743,580

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 September 30,

 

2023

2022

 

 

 

Revenues as reported:

 

 

Sale of software

$

9,422

 

 

$

18,390

Software as a service

 

1,293,745

 

 

 

1,211,407

Software maintenance services

 

353,010

 

 

 

352,892

Professional services

 

2,333,090

 

 

 

2,007,613

Storage and retrieval services

 

259,162

 

 

 

269,325

Total revenues

$

4,248,429

 

 

$

3,859,627

 

 

 

 

Revenues – recurring only:

 

 

 

 

 

 

Sale of software – recurring

 

$

-

 

 

$

-

 

Software as a service – recurring

 

 

1,223,291

 

 

 

1,139,914

 

Software maintenance services – recurring

 

 

353,010

 

 

 

352,892

 

Professional services – recurring

 

 

732,576

 

 

 

681,783

 

Storage and retrieval services – recurring

 

 

227,050

 

 

 

239,308

 

Total recurring revenues

 

$

2,535,927

 

 

$

2,413,897

 

 

 

 

 

 

 

 

Revenues – non-recurring only:

 

 

 

 

 

 

Sale of software – non-recurring only

 

$

9,422

 

 

$

18,390

 

Software as a service – non-recurring only1

 

 

70,454

 

 

 

71,493

 

Software maintenance services – non-recurring only

 

 

-

 

 

 

-

 

Professional services – non-recurring only

 

 

1,600,514

 

 

 

1,325,830

 

Storage and retrieval services – non-recurring only

 

 

32,112

 

 

 

30,017

 

Total non-recurring revenues

 

$

1,712,502

 

 

$

1,445,730

 

 

 

 

 

 

 

 

Total recurring and non-recurring revenues

 

$

4,258,429

 

 

$

3,859,627

 

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.

Total Contract Value: Estimated total future revenues from contracts signed during the period. This refers to contracts or projects that have been awarded by our customers, and it presumes the provision of all software, subscription services, and/or professional services, with no termination of any awarded contracts. There can be no guarantee that all work will be completed during any fiscal period, or that the contracts will not be terminated before all the estimated future revenues are earned, received, and/or recognized. Total Contract Value is a performance measure that the Company believes provides useful information to its management and investors as it allows the Company to better track the Company’s current sales performance, without any adjustment to exclude revenues that will not be earned, received, or recognized until future periods. Total Contract Value includes new sales in all our revenue categories, including SaaS, perpetual software licenses, maintenance, storage and retrieval, and professional services, to new or existing customers. It excludes renewals (and price increases on renewals if any). Total Contract Value is not a substitute for total revenue. There is no GAAP measure that is comparable to Total Contract Value, so the Company has not reconciled the Total Contract Value to any GAAP measure.

INTELLINETICS, INC. and SUBSIDIARIES

Condensed Consolidated Balance Sheets

 

 

 

 

 

 

(unaudited)

 

 

 

 

September 30, 2023

 

December 31, 2022

ASSETS

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

1,689,125

 

 

$

2,696,481

 

Accounts receivable, net

 

 

1,324,225

 

 

 

1,121,083

 

Accounts receivable, unbilled

 

 

1,277,800

 

 

 

596,410

 

Parts and supplies, net

 

 

95,170

 

 

 

73,221

 

Contract assets

 

 

138,062

 

 

 

80,378

 

Prepaid expenses and other current assets

 

 

339,391

 

 

 

325,466

 

Total current assets

 

 

4,863,773

 

 

 

4,893,039

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

961,504

 

 

 

1,068,706

 

Right of use assets, operating

 

 

2,716,512

 

 

 

3,200,191

 

Right of use asset, finance

 

 

233,711

 

 

 

154,282

 

Intangible assets, net

 

 

4,036,915

 

 

 

4,419,646

 

Goodwill

 

 

5,789,821

 

 

 

5,789,821

 

Other assets

 

 

624,184

 

 

 

417,457

 

Total assets

 

$

19,226,420

 

 

$

19,943,142

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

249,359

 

 

$

370,300

 

Accrued compensation

 

 

437,468

 

 

 

411,683

 

Accrued expenses

 

 

223,309

 

 

 

114,902

 

Lease liabilities, operating - current

 

 

713,638

 

 

 

692,074

 

Lease liability, finance - current

 

 

48,802

 

 

 

22,493

 

Deferred revenues

 

 

3,132,125

 

 

 

2,754,064

 

Earnout liabilities - current

 

 

-

 

 

 

700,000

 

Notes payable - current

 

 

-

 

 

 

936,966

 

Total current liabilities

 

 

4,804,701

 

 

 

6,002,482

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

Notes payable - net of current portion

 

 

2,178,190

 

 

 

2,085,035

 

Notes payable - related party

 

 

552,723

 

 

 

529,084

 

Notes payable

552,723

 

529,084

 

Lease liabilities, operating - net of current portion

 

 

2,126,449

 

 

 

2,624,608

 

Lease liability, finance - net of current portion

 

 

188,854

 

 

 

133,131

 

Total long-term liabilities

 

 

5,046,216

 

 

 

5,371,858

 

Total liabilities

 

 

9,850,917

 

 

 

11,374,340

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.001 par value, 25,000,000 shares authorized; 4,073,757 shares issued and outstanding at September 30, 2023 and December 31, 2022

 

 

4,074

 

 

 

4,074

 

Additional paid-in capital

 

 

30,528,090

 

 

 

30,179,017

 

Accumulated deficit

 

 

(21,156,661

)

 

 

(21,614,289

)

Total stockholders’ equity

 

 

9,375,503

 

 

 

8,568,802

 

Total liabilities and stockholders’ equity

 

$

19,226,420

 

 

$

19,943,142

 

INTELLINETICS, INC. and SUBSIDIARIES

Condensed Consolidated Statements of Operations

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Sale of software

 

$

9,422

 

 

$

18,390

 

 

$

88,361

 

 

$

93,986

 

Software as a service

 

 

1,293,745

 

 

 

1,211,407

 

 

 

3,810,095

 

 

 

2,801,084

 

Software maintenance services

 

 

353,010

 

 

 

352,892

 

 

 

1,051,691

 

 

 

1,033,375

 

Professional services

 

 

2,333,090

 

 

 

2,007,613

 

 

 

6,930,695

 

 

 

5,221,326

 

Storage and retrieval services

 

 

259,162

 

 

 

269,325

 

 

 

812,850

 

 

 

829,011

 

Total revenues

 

 

4,248,429

 

 

 

3,859,627

 

 

 

12,693,692

 

 

 

9,978,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Sale of software

 

 

5,889

 

 

 

10,647

 

 

 

21,414

 

 

 

44,232

 

Software as a service

 

 

200,104

 

 

 

207,502

 

 

 

679,126

 

 

 

489,939

 

Software maintenance services

 

 

13,165

 

 

 

19,024

 

 

 

44,998

 

 

 

56,509

 

Professional services

 

 

1,338,526

 

 

 

1,028,074

 

 

 

3,832,983

 

 

 

2,794,783

 

Storage and retrieval services

 

 

85,154

 

 

 

88,195

 

 

 

273,308

 

 

 

266,279

 

Total cost of revenues

 

 

1,642,838

 

 

 

1,353,442

 

 

 

4,851,829

 

 

 

3,651,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

2,605,591

 

 

 

2,506,185

 

 

 

7,841,863

 

 

 

6,327,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

1,516,009

 

 

 

1,321,299

 

 

 

4,632,559

 

 

 

3,511,852

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

28,494

 

 

 

-

 

 

 

144,999

 

Transaction costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

355,281

 

Sales and marketing

 

 

496,289

 

 

 

492,540

 

 

 

1,568,103

 

 

 

1,374,059

 

Depreciation and amortization

 

 

247,738

 

 

 

205,849

 

 

 

715,259

 

 

 

524,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

2,260,036

 

 

 

2,048,182

 

 

 

6,915,921

 

 

 

5,910,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

345,555

 

 

 

458,003

 

 

 

925,942

 

 

 

416,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(136,224

)

 

 

(240,467

)

 

 

(468,314

)

 

 

(593,536

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

209,331

 

 

$

217,536

 

 

$

457,628

 

 

$

(176,757

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share:

 

$

0.05

 

 

$

0.05

 

 

$

0.11

 

 

$

(0.05

)

Diluted net income (loss) per share:

 

$

0.05

 

 

$

0.05

 

 

$

0.10

 

 

$

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

 

4,073,757

 

 

 

4,073,757

 

 

 

4,073,757

 

 

 

3,664,024

 

Weighted average number of common shares outstanding - diluted

 

 

4,387,515

 

 

 

4,695,162

 

 

 

4,389,145

 

 

 

3,664,024

 

INTELLINETICS, INC. and SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

2023

 

2022

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

457,628

 

 

$

(176,757

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

715,259

 

 

 

524,070

 

Bad debt expense

 

 

59,485

 

 

 

22,370

 

Amortization of deferred financing costs

 

 

138,234

 

 

 

155,667

 

Amortization of debt discount

 

 

22,044

 

 

 

79,999

 

Amortization of right of use asset, financing

 

 

28,181

 

 

 

-

 

Stock issued for services

 

 

-

 

 

 

57,500

 

Stock option compensation

 

 

349,073

 

 

 

244,951

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

144,999

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(262,627

)

 

 

368,139

 

Accounts receivable, unbilled

 

 

(681,390

)

 

 

(47,164

)

Parts and supplies

 

 

(21,949

)

 

 

2,151

 

Prepaid expenses and other current assets

 

 

(71,609

)

 

 

(168,815

)

Accounts payable and accrued expenses

 

 

13,251

 

 

 

45,403

 

Operating lease assets and liabilities, net

 

 

4,673

 

 

 

21,415

 

Deferred compensation

 

 

-

 

 

 

(80,662

)

Deferred revenues

 

 

378,061

 

 

 

731,468

 

Total adjustments

 

 

670,686

 

 

 

2,101,491

 

Net cash provided by operating activities

 

 

1,128,314

 

 

 

1,924,734

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Cash paid to acquire business, net

 

 

-

 

 

 

(6,383,269

)

Capitalization of internal use software

 

 

(348,051

)

 

 

(315,148

)

Purchases of property and equipment

 

 

(84,002

)

 

 

(142,903

)

Net cash used in investing activities

 

 

(432,053

)

 

 

(6,841,320

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Payment of earnout liabilities

 

 

(700,000

)

 

 

(1,018,333

)

Proceeds from issuance of common stock

 

 

-

 

 

 

5,740,758

 

Offering costs paid on issuance of common stock and notes

 

 

-

 

 

 

(746,342

)

Proceeds from notes payable

 

 

-

 

 

 

2,364,500

 

Proceeds from notes payable - related parties

 

 

-

 

 

 

600,000

 

Principal payments on financing lease liability

 

 

(23,167

)

 

 

-

 

Repayment of notes payable

 

 

(980,450

)

 

 

-

 

Net cash (used in) provided by financing activities

 

 

(1,703,617

)

 

 

6,940,583

 

 

 

 

 

 

 

 

Net (decrease) increase in cash

 

 

(1,007,356

)

 

 

2,023,997

 

Cash - beginning of period

 

 

2,696,481

 

 

 

1,752,630

 

Cash - end of period

 

$

1,689,125

 

 

$

3,776,627

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

329,855

 

 

$

357,870

 

Cash paid during the period for income taxes

 

$

8,344

 

 

$

11,050

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash financing activities:

 

 

 

 

 

 

Discount on notes payable for warrants

 

$

-

 

 

$

169,900

 

Discount on notes payable - related parties for warrants

 

 

-

 

 

 

43,113

 

Warrants issued and extended for common stock issuance costs

 

 

-

 

 

 

412,500

 

Right-of-use asset obtained in exchange for finance lease liability

 

 

107,610

 

 

 

-

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities relating to business acquisitions:

 

 

 

 

 

 

Accounts receivable

 

$

-

 

 

$

68,380

 

Prepaid expenses

 

 

-

 

 

 

38,913

 

Property and equipment

 

 

-

 

 

 

30,018

 

Intangible assets

 

 

-

 

 

 

3,888,000

 

Goodwill

 

 

-

 

 

 

3,466,934

 

Accounts payable

 

 

-

 

 

 

(36,446

)

Deferred revenues

 

 

-

 

 

 

(1,072,530

)

Net assets acquired in acquisition

 

 

-

 

 

 

6,383,269

 

Cash used in business acquisition

 

$

-

 

 

$

6,383,269

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231114813378/en/

FNK IR Tom Baumann / Rob Fink 646.349.6641 / 646.809.4048 [e-mail]

Joe Spain, CFO Intellinetics, Inc. 614.921.8170 [e-mail]