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Intellinetics Grows 2023 Full-Year Revenues 21%

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Full-Year SaaS Revenue Grows 28%; Initial IPAS Revenue Expanding SaaS Opportunity;

Company to make $500,000 debt prepayment

COLUMBUS, Ohio–(BUSINESS WIRE)–Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, announced financial results for the three and 12 months ended December 31, 2023.


2023 Fourth Quarter Financial Highlights

  • Total Revenue increased 3.8% over the same period in 2022.

    • The growth in Q4 was fully organic.
  • Software as a Service revenue increased 8.8% over the same period in 2022.
  • Commercialized IPAS with two launched customers, and signed seven more.
  • Professional services revenue increased 4.7% over the same period in 2022.
  • Net Income of $61,638, or $0.02 per basic and $0.01 per fully diluted share, compared to net income of $200,784, or $0.05 per basic and $0.04 per fully diluted share, for the same period in 2022.
  • Adjusted EBITDA increased 12.5% to $754,375, compared to $670,321 from the same period in 2022.
  • Ended the year with less than $1.8 million dollars in debt, net of cash.

2023 Full-Year Financial Highlights

  • Total Revenue increased 20.5% over the same period in 2022.
  • The Company commercially launched the IntelliCloud™ Payables Automation System (IPAS), its newest SaaS offering.
  • Software as a Service revenue increased 27.8% over the same period in 2022.
  • Professional services revenue increased 24.6% over the same period in 2022.
  • Net Income of $519,266, or $0.13 per basic and $0.11 per fully diluted share, compared to net income of $24,027, or $0.01 per basic and fully diluted share, for the same period in 2022.
  • Adjusted EBITDA increased 13.7% to $2,744,649, compared to $2,413,901 from the same period in 2022.

 

 

For the years ended

December 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Sale of software

 

$

100,260

 

 

$

159,084

 

Software as a service

 

 

5,133,215

 

 

 

4,017,409

 

Software maintenance services

 

 

1,407,064

 

 

 

1,387,885

 

Professional services

 

 

9,167,428

 

 

 

7,357,937

 

Storage and retrieval services

 

 

1,078,414

 

 

 

1,094,613

 

Total revenues

 

$

16,886,381

 

 

$

14,016,928

 

James F. DeSocio, President & CEO of Intellinetics, stated, “This was a milestone year for Intellinetics, as we expanded our base of recurring SaaS revenue, making our business more predictable and increasingly profitable. Our SaaS revenue continues to grow faster than our consolidated revenue. From this position of strength, we enter 2024 with increasing confidence that our new payables automation offering, IPAS, will become a more meaningful contributor to our results, adding another SaaS revenue stream to our profile.”

“For the year, we delivered double-digit increases in revenue, net income, and Adjusted EBITDA, with only a modest contribution from IPAS,” continued Mr. DeSocio. “This progress enabled us to pay down debt, strengthen our balance sheet and invest in sales and marketing initiatives to support IPAS and YellowFolder.”

Summary – 2023 Fourth Quarter Results

Revenues for the three months ended December 31, 2023 were $4,192,689, an increase of 3.8%, as compared with $4,038,146 for the same period in 2022. This organic increase was driven by an 8.8% increase in SaaS revenue, and a 4.7% increase in professional services fees, partially offset by lower sales of licensed software as the Company continued to shift its focus to recurring revenue.

Total operating expenses increased 17.0% to $2,540,565, compared to $2,171,576 driven by increases in stock expense of $194,541 and depreciation and amortization of $66,614 (all non-cash expenses). Income from operations was $181,527 compared to $410,542 in the fourth quarter last year.

Intellinetics reported net income of $61,638, down 69% compared to $200,784 for the same period in 2022. Basic and diluted net income per share for the three months ended December 31, 2023 was $0.02 and $0.01, respectively, compared to $0.05 per basic and $0.04 per fully diluted share for the period ended December 31, 2022. Adjusted EBITDA was $754,375 compared to $670,321 in 2022.

“Importantly, our first two IPAS customers were both live and successfully running in the fourth quarter,” added Mr. DeSocio.

Summary – 2023 Full-Year Results

Yellow Folder, acquired April 1, 2022, contributed $3,613,764 in revenue in the year ended December 31, 2023, compared to $2,460,474 in revenue for the year ended December 31, 2022. Inclusive of the contribution from Yellow Folder, revenues for the year ended December 31, 2023 were $16,886,381, an increase of 20.5% as compared with $14,016,928 for the same period in 2022. Total operating expenses increased 17.0% to $9,456,486, compared to $8,081,837. Income from operations was $1,107,469, an increase of 33.9% compared to income from operations of $827,321 for last year. Intellinetics reported net income of $519,266, or $0.13 per basic and $0.11 per diluted share, compared to net income of $24,027, or $0.01 per basic and diluted share, for the same period in 2022. Adjusted EBITDA was $2,744,649 compared to $2,413,901.

2024 Outlook

Based on management’s current plans and assumptions, the Company reiterated expectations that it will grow revenues and EBITDA on a year-over-year basis for the fiscal year 2024.

“Our IPAS offering provides customers with an almost instant positive return, and offers our company an organic growth opportunity to more than double our SaaS revenue over the next four to five years,” continued Mr. DeSocio. “We view IPAS as a transformative opportunity for our company, and we plan to make investments to position the product for as rapid an adoption as we can drive. Even with these investments, 2024 Adjusted EBITDA is expected to grow on a year-over-year basis, as we focus on making all the early adopters of IPAS happy, we round out its capabilities and set the stage for wholesale adoption in select ERP ecosystems over the next 4-5 years.”

We will be prepaying $500,000 of our long term debt shortly, and expect to have no net debt at the end of 2024.

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 April 11, 2024 by dialing (877) 660-6853 (toll-free) or (201) 612-7415 and using replay access code 13744747.

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 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

December 31,

 

 

 

2023

 

 

2022

 

Net income – GAAP

 

$

61,638

 

$

200,784

Interest expense, net

 

 

119,889

 

 

 

209,758

 

Depreciation and amortization

 

 

259,268

 

 

 

198,127

 

Stock-based compensation

 

 

313,580

 

 

 

118,999

 

Change in fair value of earnout liabilities

 

 

 

 

 

(57,347

)

Adjusted EBITDA

 

$

754,375

 

$

670,321

 

 

 

For the Twelve Months Ended

December 31,

 

 

 

2023

 

 

2022

 

Net income – GAAP

 

$

519,266

 

$

24,027

Interest expense, net

 

 

588,203

 

 

 

803,294

 

Depreciation and amortization

 

 

974,527

 

 

 

722,197

 

Stock-based compensation

 

 

662,653

 

 

 

421,450

 

Change in fair value of earnout liabilities

 

 

 

 

 

355,281

 

Transaction costs

 

 

 

 

 

87,652

 

Adjusted EBITDA

 

$

2,744,649

 

$

2,413,901

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 December 31,

2023

 

2022

Revenues as reported:

Sale of software

$

11,899

$

65,098

Software as a service

 

1,323,120

 

1,216,325

Software maintenance services

 

355,373

 

354,510

Professional services

 

2,236,733

 

2,136,611

Storage and retrieval

 

265,564

 

265,602

$

4,192,689

$

4,038,146

Revenues – recurring only:

Sale of software – recurring

$

 

$

Software as a service – recurring

 

1,267,202

 

 

1,144,832

Software maintenance services – recurring

 

355,373

 

 

354,510

Professional services – recurring

 

798,444

 

 

675,026

Storage and retrieval – recurring

 

225,561

 

 

239,379

$

2,646,580

 

$

2,413,747

Revenues – non-recurring only:

 

Sale of software – non-recurring

$

11,899

 

$

65,098

Software as a service – non-recurring

 

55,918

 

 

71,493

Software maintenance services – non-recurring

 

 

 

Professional services – non-recurring

 

1,438,289

 

 

1,461,585

Storage and retrieval – non-recurring

 

40,003

 

 

26,223

$

1,546,109

 

$

1,624,399

 

Total recurring and non-recurring revenues

$

4,192,689

$

4,038,146

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

Consolidated Balance Sheets

 

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,215,248

 

 

$

2,696,481

 

Accounts receivable, net

 

 

1,850,375

 

 

 

1,121,083

 

Accounts receivable, unbilled

 

 

1,320,837

 

 

 

596,410

 

Parts and supplies, net

 

 

110,272

 

 

 

73,221

 

Contract assets

 

 

140,165

 

 

 

80,378

 

Prepaid expenses and other current assets

 

 

367,478

 

 

 

325,466

 

Total current assets

 

 

5,004,375

 

 

 

4,893,039

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

924,257

 

 

 

1,068,706

 

Right of use assets, operating

 

 

2,532,928

 

 

 

3,200,191

 

Right of use assets, finance

 

 

219,777

 

 

 

154,282

 

Intangible assets, net

 

 

3,909,338

 

 

 

4,419,646

 

Goodwill

 

 

5,789,821

 

 

 

5,789,821

 

Other assets

 

 

645,764

 

 

 

417,457

 

Total assets

 

$

19,026,260

 

 

$

19,943,142

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

194,454

 

 

$

370,300

 

Accrued compensation

 

 

337,884

 

 

 

411,683

 

Accrued expenses

 

 

164,103

 

 

 

114,902

 

Lease liabilities, operating – current

 

 

712,607

 

 

 

692,074

 

Lease liabilities, finance – current

 

 

49,926

 

 

 

22,493

 

Deferred revenues

 

 

2,927,808

 

 

 

2,754,064

 

Earnout liabilities – current

 

 

 

 

 

700,000

 

Notes payable – current

 

 

 

 

 

936,966

 

Total current liabilities

 

 

4,386,782

 

 

 

6,002,482

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Notes payable – net of current portion

 

 

2,209,242

 

 

 

2,085,035

 

Notes payable – related party

 

 

560,602

 

 

 

529,084

 

Notes payable

560,602

529,084

Lease liabilities, operating – net of current portion

 

 

1,942,970

 

 

 

2,624,608

 

Lease liabilities, finance – net of current portion

 

 

175,943

 

 

 

133,131

 

Total long-term liabilities

 

 

4,888,757

 

 

 

5,371,858

 

Total liabilities

 

 

9,275,539

 

 

 

11,374,340

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 25,000,000 shares authorized; 4,113,621 and 4,073,757 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

 

4,114

 

 

 

4,074

 

Additional paid-in capital

 

 

30,841,630

 

 

 

30,179,017

 

Accumulated deficit

 

 

(21,095,023

)

 

 

(21,614,289

)

Total stockholders’ equity

 

 

9,750,721

 

 

 

8,568,802

 

Total liabilities and stockholders’ equity

 

$

19,026,260

 

 

$

19,943,142

 

INTELLINETICS, INC. and SUBSIDIARIES

Consolidated Statements of Income

 

 

 

For the Twelve Months

 

 

 

Ended December 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

Sale of software

 

$

100,260

 

 

$

159,084

 

Software as a service

 

 

5,133,215

 

 

 

4,017,409

 

Software maintenance services

 

 

1,407,064

 

 

 

1,387,885

 

Professional services

 

 

9,167,428

 

 

 

7,357,937

 

Storage and retrieval services

 

 

1,078,414

 

 

 

1,094,613

 

Total revenues

 

 

16,886,381

 

 

 

14,016,928

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

Sale of software

 

 

25,736

 

 

 

64,577

 

Software as a service

 

 

889,135

 

 

 

701,433

 

Software maintenance services

 

 

59,373

 

 

 

79,738

 

Professional services

 

 

4,992,826

 

 

 

3,908,205

 

Storage and retrieval services

 

 

355,356

 

 

 

353,817

 

Total cost of revenues

 

 

6,322,426

 

 

 

5,107,770

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

10,563,955

 

 

 

8,909,158

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

General and administrative

 

 

6,455,088

 

 

 

4,945,214

 

Change in fair value of earnout liabilities

 

 

 

 

 

87,652

 

Transaction costs

 

 

 

 

 

355,281

 

Sales and marketing

 

 

2,026,871

 

 

 

1,971,493

 

Depreciation and amortization

 

 

974,527

 

 

 

722,197

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

9,456,486

 

 

 

8,081,837

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

1,107,469

 

 

 

827,321

 

 

 

 

 

 

 

 

 

 

Other (expense) income

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(588,203

)

 

 

(803,294

)

 

 

 

 

 

 

 

 

 

Total other (expense) income, net

 

 

(588,203

)

 

 

(803,294

)

 

 

 

 

 

 

 

 

 

Net income

 

$

519,266

 

 

$

24,027

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

$

0.13

 

 

$

0.01

 

Diluted net income per share:

 

$

0.11

 

 

$

0.01

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding – basic

 

 

4,074,194

 

 

 

3,767,299

 

Weighted average number of common shares outstanding – diluted

 

 

4,652,058

 

 

 

4,295,817

 

INTELLINETICS, INC. and SUBSIDIARIES

Consolidated Statements of Cash Flows

 

 

 

For the Twelve Months

 

 

 

Ended December 31,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

519,266

 

 

$

24,027

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

 

974,527

 

 

 

722,197

 

Bad debt expense

 

 

77,211

 

 

 

42,129

 

Loss on disposal of fixed assets

 

 

 

 

 

24,473

 

Amortization of deferred financing costs

 

 

177,164

 

 

 

216,381

 

Amortization of debt discount

 

 

22,045

 

 

 

102,400

 

Amortization of right of use assets, financing

 

 

42,115

 

 

 

6,708

 

Stock issued for services

 

 

198,124

 

 

 

57,500

 

Stock option compensation

 

 

464,529

 

 

 

363,950

 

Change in fair value of earnout liabilities

 

 

 

 

 

87,652

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(806,503

)

 

 

81,227

 

Accounts receivable, unbilled

 

 

(724,427

)

 

 

(151,628

)

Parts and supplies

 

 

(37,051

)

 

 

3,470

 

Prepaid expenses and other current assets

 

 

(101,799

)

 

 

(176,596

)

Accounts payable and accrued expenses

 

 

(200,444

)

 

 

173,480

 

Operating lease assets and liabilities, net

 

 

6,158

 

 

 

25,351

Deferred compensation

 

 

 

 

 

(100,828

)

Deferred revenues

 

 

173,744

 

 

 

486,885

 

Total adjustments

 

 

265,393

 

 

 

1,964,751

 

Net cash provided by operating activities

 

 

784,659

 

 

 

1,988,778

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid to acquire business, net

 

 

 

 

 

(6,383,269

)

Capitalization of internal use software

 

 

(436,837

)

 

 

(376,345

)

Purchases of property and equipment

 

 

(111,240

)

 

 

(200,980

)

Net cash used in investing activities

 

 

(548,077

)

 

 

(6,960,594

)

 

 

 

 

 

 

 

 

 

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

 

Other net changes in finance lease assets and liabilities

 

 

(2,411

)

 

 

 

Principal payments on financing lease liability

 

 

(34,954

)

 

 

(5,366

)

Repayment of notes payable

 

 

(980,450

)

 

 

(1,019,550

)

Net cash (used in) provided by financing activities

 

 

(1,717,815

)

 

 

5,915,667

 

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash

 

 

(1,481,233

)

 

 

943,851

 

Cash – beginning of period

 

 

2,696,481

 

 

 

1,752,630

 

Cash – end of period

 

$

1,215,248

 

 

$

2,696,481

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

418,790

 

 

$

496,805

 

Cash paid during the period for income taxes

 

$

21,667

 

 

$

12,888

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

107,610

 

 

 

160,990

 

 

 

 

 

 

 

 

 

 

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

 

Contacts

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

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