INLX Intellinetics Inc

Net Income improved over $500,000, EPS of $0.03 vs. $(0.09)

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

2023 Second Quarter Financial Highlights

• Total Revenue increased 24.7% over the same period in 2022.
  • The growth in Q2 was fully organic, being the first quarter of year over year Yellow Folder contributions.
• Software as a Service revenue increased 10.3% over the same period in 2022.
• Total operating expenses declined 1.2% against 24.7% revenue increase, leading to $430,087 positive swing in operating income.
• Net Income of $135,734, or $0.03 per fully diluted share, compared to net loss of $374,167, or $(0.09) per fully diluted share, for the same period in 2022.
• Adjusted EBITDA increased 28.2% to $651,646, compared to $507,743 from the same period in 2022.

 

 

Three months ended June 30, 2023

 

 

Three months ended June 30, 2022

 

Revenues by revenue source

 

 

 

 

 

 

 

 

Sale of software

 

$

63,646

 

 

$

11,105

 

Software as a service

 

 

1,277,918

 

 

 

1,158,456

 

Software maintenance services

 

 

349,139

 

 

 

343,881

 

Professional services

 

 

2,298,316

 

 

 

1,625,765

 

Storage and retrieval services

 

 

269,411

 

 

 

276,436

 

Total revenues

 

$

4,258,430

 

 

$

3,415,643

 

James F. DeSocio, President & CEO of Intellinetics, stated, “This was another strong quarter for Intellinetics, with double-digit revenue growth, combined with lower operating expenses, driving significant positive swings in operating income, net income, and Adjusted EBITDA. Growth in SaaS revenue was somewhat lower in the quarter, due largely to timing of orders and renewals, but we anticipate re-acceleration in the second-half of the year as we continue to see strong demand. Intellinetics has built a stable, profitable platform for continued robust top- and bottom-line growth, and we are investing in marketing to help us capture share in the large, growing markets that we serve.”

“We remain specifically focused on cross-selling, and this initiative is driving results,” continued Mr. DeSocio. “The number of customers using more than one of our services has continued to grow as we expand our wallet-share with clients. As a result, we anticipate continued organic growth, both in terms of new customers and expanding our relationships with existing customers, throughout 2023 and into 2024.”

Summary – 2023 Second Quarter Results

Revenues for the three months ended June 30, 2023 were $4,258,430, an increase of 24.7%, organically, as compared with $3,415,643 for the same period in 2022. The increase was driven by a 10.3% increase in SaaS revenue, and a 41.4% increase in professional services fees. The increase in professional services was enabled by our ability to hire and retain people in our document conversion segment.

Total operating expenses decreased 1.2% to $2,294,045, compared to $2,322,717 due to the absence of transaction costs associated with the acquisition of Yellow Folder in the prior-year quarter, as well as a 7% reduction in sales and marketing expenses, partially offset by higher depreciation and amortization (a non-cash expense) and general and administrative costs associated with higher revenue. As a result of higher revenue and lower expenses, income from operations was $296,388, a positive swing of $430,087 compared to a loss from operations of $133,699 in the second quarter last year.

Intellinetics reported net income of $135,743 for the three months ended June 30, 2023 compared to net loss of $374,167 for the same period in 2022, representing an improvement of $509,901. Basic and diluted net income per share for the three months ended June 30, 2023 was $0.03. Basic and diluted net loss per share for the three months ended June 30, 2022 was $(0.09). Adjusted EBITDA improved year over year by $143,903 which was driven by the strong revenue growth.

Summary – 2023 Year-to-Date Results

Yellow Folder, acquired April 1, 2022, contributed $1,738,893 in revenue in the six months ended June 30, 2023, compared to $790,368 in revenue in the six months ended June 20, 2022. Inclusive of the contribution from Yellow Folder, revenues for the six months ended June 30, 2023 were $8,445,263, an increase of 38.0% as compared with $6,119,155 for the same period in 2022. Total operating expenses increased 20.6% to $4,655,885, compared to $3,862,079. Income from operations was $580,387, a positive swing of $621,611 compared to a loss from operations of $41,224 last year. Intellinetics reported net income of $248,297, or $0.06 per basic and diluted share, compared to net loss of $394,293, or $(0.11) per basic and diluted share, for the same period in 2022. Adjusted EBITDA was $1,281,525 compared to $932,235.

2023 Outlook

Based on management's current plans and assumptions, the Company reiterated expectations that it will continue to grow revenues and Adjusted EBITDA on a year-over-year basis for 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 (877) 407-8133 (toll-free) or (201) 689-8040. A replay of the call can also be accessed via phone through August 28, 2023 by dialing (877) 660-6853 (toll-free) or (201) 612-7415 and using replay access code 13740337.

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 2023 revenues, outlook, and organic revenue growth from both new and existing customers, market share, growth of our markets, demand for our SaaS solutions, sustainable profitability, continued growth of SaaS revenue, cross-selling efforts and other synergies associated with our acquisition of Yellow Folder; 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 June 30,

 

 

 

2023

 

 

2022

 

Net income (loss) - GAAP

 

$

135,734

 

$

(374,167

)

Interest expense, net

 

 

160,654

 

 

 

240,468

 

Depreciation and amortization

 

 

239,803

 

 

 

200,919

 

Stock-based compensation

 

 

115,455

 

 

 

102,992

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

52,301

 

Transaction costs

 

 

-

 

 

 

285,230

 

Adjusted EBITDA

 

$

651,646

 

$

507,743

 

 

 

For the Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

Net income (loss) - GAAP

 

$

248,297

 

$

(394,293

)

Interest expense, net

 

 

332,090

 

 

 

353,069

 

Depreciation and amortization

 

 

467,521

 

 

 

318,221

 

Stock-based compensation

 

 

233,617

 

 

 

183,452

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

116,505

 

Transaction costs

 

 

-

 

 

 

355,281

 

Adjusted EBITDA

 

$

1,281,525

 

$

932,235

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,

 

2023

2022

 

 

 

Revenues as reported:

 

 

 

 

Sale of software

$

63,646

 

 

$

11,105

Software as a service

 

1,277,918

 

 

 

1,158,456

Software maintenance services

 

349,139

 

 

 

343,881

Professional services

 

2,298,316

 

 

 

1,625,765

Storage and retrieval services

 

269,411

 

 

 

276,436

Total revenues

$

4,258,430

 

 

$

3,415,643

 

 

 

 

 

 

Revenues – recurring only:

 

 

 

 

 

 

Sale of software – recurring

$

-

 

 

$

-

Software as a service – recurring

 

1,182,483

 

 

 

1,072,323

Software maintenance services – recurring

 

349,139

 

 

 

343,881

Professional services – recurring

 

704,835

 

 

 

664,494

Storage and retrieval services – recurring

 

230,609

 

 

 

203,237

Total recurring revenues

$

2,467,066

 

 

$

2,283,935

 

 

 

 

 

 

 

Revenues – non-recurring only:

 

 

 

 

 

 

Sale of software – non-recurring only

 

$63,646

 

 

 

$11,105

Software as a service – non-recurring only1

 

95,435

 

 

 

86,133

Software maintenance services – non-recurring only

 

-

 

 

 

-

Professional services – non-recurring only

 

1,593,481

 

 

 

961,271

Storage and retrieval services – non-recurring only

 

38,802

 

 

 

73,199

Total non-recurring revenues

$

1,791,364

 

 

$

1,131,708

 

 

 

 

 

 

 

Total recurring and non-recurring revenues

$

4,258,430

 

 

$

3,415,643

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)

 

 

 

 

 

 

June 30, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,130,487

 

 

$

2,696,481

 

Accounts receivable, net

 

 

1,326,986

 

 

 

1,121,083

 

Accounts receivable, unbilled

 

 

1,038,013

 

 

 

596,410

 

Parts and supplies, net

 

 

72,569

 

 

 

73,221

 

Contract assets

 

 

96,470

 

 

 

80,378

 

Prepaid expenses and other current assets

 

 

337,373

 

 

 

325,466

 

Total current assets

 

 

4,001,898

 

 

 

4,893,039

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,024,776

 

 

 

1,068,706

 

Right of use assets, operating

 

 

2,895,784

 

 

 

3,200,191

 

Right of use asset, finance

 

 

170,194

 

 

 

154,282

 

Intangible assets, net

 

 

4,164,492

 

 

 

4,419,646

 

Goodwill

 

 

5,789,821

 

 

 

5,789,821

 

Other assets

 

 

540,121

 

 

 

417,457

 

Total assets

 

$

18,587,086

 

 

$

19,943,142

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

356,545

 

 

$

370,300

 

Accrued compensation

 

 

336,317

 

 

 

411,683

 

Accrued expenses

 

 

181,961

 

 

 

114,902

 

Lease liabilities, operating - current

 

 

711,229

 

 

 

692,074

 

Lease liability, finance - current

 

 

28,303

 

 

 

22,493

 

Deferred revenues

 

 

2,067,744

 

 

 

2,754,064

 

Earnout liabilities - current

 

 

-

 

 

 

700,000

 

Notes payable - current

 

 

709,083

 

 

 

936,966

 

Total current liabilities

 

 

4,391,182

 

 

 

6,002,482

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Notes payable - net of current portion

 

 

2,147,139

 

 

 

2,085,035

 

Notes payable - related party

 

 

544,843

 

 

 

529,084

 

Lease liabilities, operating - net of current portion

 

 

2,307,326

 

 

 

2,624,608

 

Lease liability, finance - net of current portion

 

 

145,880

 

 

 

133,131

 

Total long-term liabilities

 

 

5,145,188

 

 

 

5,371,858

 

Total liabilities

 

 

9,536,370

 

 

 

11,374,340

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

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

 

 

4,074

 

 

 

4,074

 

Additional paid-in capital

 

 

30,412,634

 

 

 

30,179,017

 

Accumulated deficit

 

 

(21,365,992

)

 

 

(21,614,289

)

Total stockholders’ equity

 

 

9,050,716

 

 

 

8,568,802

 

Total liabilities and stockholders’ equity

 

$

18,587,086

 

 

$

19,943,142

 

INTELLINETICS, INC. and SUBSIDIARIES

Condensed Consolidated Statements of Operations

(unaudited)

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of software

 

$

63,646

 

 

$

11,105

 

 

$

78,939

 

 

$

75,596

 

Software as a service

 

 

1,277,918

 

 

 

1,158,456

 

 

 

2,516,350

 

 

 

1,589,677

 

Software maintenance services

 

 

349,139

 

 

 

343,881

 

 

 

698,681

 

 

 

680,483

 

Professional services

 

 

2,298,316

 

 

 

1,625,765

 

 

 

4,597,605

 

 

 

3,213,713

 

Storage and retrieval services

 

 

269,411

 

 

 

276,436

 

 

 

553,688

 

 

 

559,686

 

Total revenues

 

 

4,258,430

 

 

 

3,415,643

 

 

 

8,445,263

 

 

 

6,119,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of software

 

 

7,344

 

 

 

7,392

 

 

 

15,525

 

 

 

33,585

 

Software as a service

 

 

258,382

 

 

 

191,188

 

 

 

479,022

 

 

 

282,437

 

Software maintenance services

 

 

15,117

 

 

 

19,185

 

 

 

31,833

 

 

 

37,485

 

Professional services

 

 

1,307,341

 

 

 

918,542

 

 

 

2,494,457

 

 

 

1,766,709

 

Storage and retrieval services

 

 

79,813

 

 

 

90,318

 

 

 

188,154

 

 

 

178,084

 

Total cost of revenues

 

 

1,667,997

 

 

 

1,226,625

 

 

 

3,208,991

 

 

 

2,298,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

2,590,433

 

 

 

2,189,018

 

 

 

5,236,272

 

 

 

3,820,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

1,561,939

 

 

 

1,254,862

 

 

 

3,116,550

 

 

 

2,190,553

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

52,301

 

 

 

-

 

 

 

116,505

 

Transaction costs

 

 

-

 

 

 

285,230

 

 

 

-

 

 

 

355,281

 

Sales and marketing

 

 

492,303

 

 

 

529,405

 

 

 

1,071,814

 

 

 

881,519

 

Depreciation and amortization

 

 

239,803

 

 

 

200,919

 

 

 

467,521

 

 

 

318,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

2,294,045

 

 

 

2,322,717

 

 

 

4,655,885

 

 

 

3,862,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

296,388

 

 

 

(133,699

)

 

 

580,387

 

 

 

(41,224

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(160,654

)

 

 

(240,468

)

 

 

(332,090

)

 

 

(353,069

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

135,734

 

 

$

(374,167

)

 

$

248,297

 

 

$

(394,293

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share:

 

$

0.03

 

 

$

(0.09

)

 

$

0.06

 

 

$

(0.11

)

Diluted net income (loss) per share:

 

$

0.03

 

 

$

(0.09

)

 

$

0.06

 

 

$

(0.11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

 

4,073,757

 

 

 

4,073,757

 

 

 

4,073,757

 

 

 

3,455,761

 

Weighted average number of common shares outstanding - diluted

 

 

4,073,757

 

 

 

4,073,757

 

 

 

4,073,757

 

 

 

3,455,761

 

INTELLINETICS, INC. and SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

248,297

 

 

$

(394,293

)

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

467,521

 

 

 

318,221

 

Bad debt expense

 

 

27,528

 

 

 

2,327

 

Amortization of deferred financing costs

 

 

95,152

 

 

 

90,801

 

Amortization of debt discount

 

 

17,778

 

 

 

53,332

 

Amortization of right of use asset, financing

 

 

14,959

 

 

 

-

 

Stock issued for services

 

 

-

 

 

 

57,500

 

Stock option compensation

 

 

233,617

 

 

 

125,952

 

Change in fair value of earnout liabilities

 

 

-

 

 

 

116,505

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(233,431

)

 

 

370,617

 

Accounts receivable, unbilled

 

 

(441,603

)

 

 

9,703

 

Parts and supplies

 

 

652

 

 

 

(8,442

)

Prepaid expenses and other current assets

 

 

(27,999

)

 

 

(146,026

)

Accounts payable and accrued expenses

 

 

(22,062

)

 

 

64,641

 

Operating lease assets and liabilities, net

 

 

6,280

 

 

 

15,333

 

Deferred compensation

 

 

-

 

 

 

(50,414

)

Deferred revenues

 

 

(686,320

)

 

 

(553,108

)

Total adjustments

 

 

(547,928

)

 

 

466,942

 

Net cash (used in) provided by operating activities

 

 

(299,631

)

 

 

72,649

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid to acquire business, net

 

 

-

 

 

 

(6,383,269

)

Capitalization of internal use software

 

 

(208,417

)

 

 

(171,205

)

Purchases of property and equipment

 

 

(82,684

)

 

 

(98,199

)

Net cash used in investing activities

 

 

(291,101

)

 

 

(6,652,673

)

 

 

 

 

 

 

 

 

 

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

 

 

(12,312

)

 

 

-

 

Repayment of notes payable

 

 

(262,950

)

 

 

-

 

Net cash (used in) provided by financing activities

 

 

(975,262

)

 

 

6,940,583

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash

 

 

(1,565,994

)

 

 

360,559

 

Cash - beginning of period

 

 

2,696,481

 

 

 

1,752,630

 

Cash - end of period

 

$

1,130,487

 

 

$

2,113,189

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

226,570

 

 

$

208,935

 

Cash paid during the period for income taxes

 

$

7,708

 

 

$

9,576

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

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/20230814850064/en/

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