Intellinetics, Inc. Reports Third Quarter And Nine-Month Financial Results

Intellinetics, Inc. ( OTCQB: INLX), an Enterprise Content Management (ECM) software company focused on cloud-based document solutions for the Small to Medium Business (SMB) market, announced financial results for the third quarter and nine-months ended September 30, 2016.

Third Quarter Highlights
  1. 9.2% increase in Revenue
  2. 111.9% increase in recurring SaaS revenues

Third Quarter Results

Revenues for the three months ended September 30, 2016 were $679,445 as compared with $621,974 for the same period in 2015. The increase is primarily attributed to revenues from the sale of software as a service.

Intellinetics reported a net loss of $246,767 and $253,553 for the three months ended September 30, 2016 and 2015, respectively, representing a decrease in net loss of $6,786, or 2.7%. Net loss per share for the three months ended September 30, 2016 and 2015 was ($0.01) and ($0.04), respectively.

Nine-Month Results

Revenues for the nine months ended September 30, 2016 were $1,919,585 as compared with $1,767,919 for the same period in 2015. Of this $363,842 was SaaS revenue in 2016 and $182,322 was SaaS revenue in 2015. Intellinetics reported a net loss of $1,184,497 and $1,130,173, respectively, for the nine months ended September 30, 2016 and 2015, respectively, an increase of $54,324. Net loss per share for the nine months ended September 30, 2016 and 2015 was ($.07) and ($.16), respectively, a decrease of 56.3%.

Matthew L. Chretien, President and CEO of Intellinetics, noted that, "We posted a significant increase in our recurring SaaS revenue segment which is vital to financial strength and sustained revenue growth. We continue to add to our dealer network with increased adoption and use of IU ( www.intelliclouduniversity.com) - our automated IntelliCloud sales training and partner enablement platform, and is an important contributor to the increase in Cloud based revenue. Working with our strategic offices solutions partner to build the sales and operations model was an additional focus during this quarter that cleared the path for in-field selling activities moving forward. We believe that we have all of the pieces in place to be able to show continuous quarter over quarter revenue growth on a sustained basis."

IntelliCloud™ - Powered by the Intel ® NUC

Intellinetics, Inc. is a Columbus, Ohio-based, innovative and trusted provider of its cloud-enabled document management platform - IntelliCloud. IntelliCloud is optimized for the vast SMB market segment and business teams within large enterprises stuck with paper in business-critical processes. Thousands and Thousands of people at any given moment depend upon IntelliCloud to perform their work. IntelliCloud is strategically packaged with Intel technology, provides Law Enforcement Grade security and compliance tools and is supported by a growing network of market-leading reseller partners. Resellers often attach IntelliCloud to the software, hardware, and/or services they already sell without the sales or technical complexity of other less effective options in the market.

About Intellinetics, Inc.

Intellinetics, Inc. is a Columbus, Ohio-based ECM software company. Intellinetics partnered with Intel to create the IntelliCloud Channel Program that makes it easy to add turnkey document workflow solutions to the copiers, productivity software and services they already provide. IntelliCloud provides dealers a "deploy once, use many" innovation where one IntelliCloud customer sale/activation creates endless possibilities to add other software applications that deliver more value and increase revenue. For additional information, please visit: www.intellinetics.com.

Cautionary Statement

Statements in this press release which are not purely historical, including statements regarding Intellinetics' future revenues and growth, market penetration and product acceptance, 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, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks, and other risks and uncertainties discussed in the company's most recent annual report on Form 10-K and subsequently filed Form 10-Qs and Form 8-Ks. The company 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 and its Affiliates on its website or at  www.intellinetics.com or at www.sec.gov .
 
INTELLINETICS, INC. and SUBSIDIARY
Condensed Consolidated Statements of Operations
(Unaudited)
               

For the Three Months Ended September 30,
   

For the Nine Months Ended September 30,
2016 2015     2016 2015
Revenues:
Sale of software $ 96,869 $ 136,459 $ 289,437 $ 449,219
Software as a service 137,343 64,817 363,842 182,322
Software maintenance services 256,441 239,506 748,354 700,116
Professional services 153,895 152,169 337,680 327,189
Third Party services 34,897 29,023 180,272 109,073
       
Total revenues   679,445     621,974         1,919,585     1,767,919  
 
Cost of revenues:
Sale of software 16,432 23,650 54,001 90,876
Software as a service 41,883 14,097 103,525 36,771
Software maintenance services 25,019 32,943 109,564 95,402
Professional services 32,476 41,670 94,443 85,781
Third Party services   26,103     18,334         108,918     57,846  
 
Total cost of revenues   141,913     130,694         470,451     366,676  
 
Gross profit   537,532     491,280         1,449,134     1,401,243  
 
Operating expenses:
General and administrative 420,935 390,841 1,598,185 1,548,096
Sales and marketing 338,843 191,325 842,421 622,990
Depreciation   2,437     2,589         8,160     8,640  
 
Total operating expenses   762,215     584,755         2,448,766     2,179,726  
 
Loss from operations (224,683 ) (93,475 ) (999,632 ) (778,483 )
 
Other income (expense)
Interest expense, net   (22,084 )   (160,078 )       (184,865 )   (351,690 )
 
Total other income (expense) (22,084 ) (160,078 ) (184,865 ) (351,690 )
 
Net loss $ (246,767 ) $ (253,553 )     $ (1,184,497 ) $ (1,130,173 )
 
Basic and diluted net loss per share: $ (0.01 ) $ (0.04 ) $ (0.07 ) $ (0.16 )
 

Weighted average number of common shares outstanding - basic and diluted
 

16,810,582
   

7,123,024
   

16,622,864
 

 

7,123,024
 

 

 

 

 

 
INTELLINETICS, INC. and SUBSIDIARY
Condensed Consolidated Balance Sheets
       
ASSETS
(Unaudited)
September 30, December 31,
2016 2015
 
Current assets:
Cash $ 159,553 $ 1,117,118
Accounts receivable, net 329,084 217,028
Prepaid expenses and other current assets   172,065     46,521  
 
Total current assets 660,702 1,380,667
 
Property and equipment, net 21,310 22,603
Other assets   10,284     10,285  
 
Total assets $ 692,296   $ 1,413,555  
 
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
Current liabilities:
Accounts payable and accrued expenses $ 675,563 $ 826,864
Deferred revenues 592,186 638,193
Deferred compensation 215,012 215,012
Notes payable - current 354,768 401,573
Notes payable - related party - current   37,368     92,805  
Total current liabilities 1,874,897 2,174,447
 
Long-term liabilities:
Notes payable - net of current portion 516,135 782,206
Notes payable - related party 99,012 127,409
Deferred interest expense 159,304 136,078
Other long-term liabilities - related parties   -     12,852  
 
Total long-term liabilities   774,451     1,058,545  
 
Total liabilities 2,649,348 3,232,992
 
 
Stockholders' deficit:

Common stock, $0.001 par value, 50,000,000 shares authorized; 16,815,850 and 14,908,439 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively
26,816 21,909
Additional paid-in capital 12,579,068 11,537,093
Accumulated deficit   (14,562,936 )   (13,378,439 )
Total stockholders' deficit   (1,957,052 )   (1,819,437 )
Total liabilities and stockholders' deficit $ 692,296   $ 1,413,555  

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