Intellinetics Grows 2024 Revenues 9.0% for Second Quarter of 2024
Intellinetics, Inc. (NYSE American: INLX) reported financial results for Q2 2024, showing 9.0% revenue growth to $4,641,593. Key highlights include:
- SaaS revenue increased 9.6% year-over-year
- Professional services revenue grew 15.8%
- Net income of $75,050 or $0.02 per share
- Adjusted EBITDA rose 7.1% to $698,217
The company's IPAS solution is gaining traction, with live reference accounts doubling to four. Intellinetics reduced its debt principal to $2,139,500 and plans further debt reduction. Despite increased operating expenses due to investments in growth, the company maintains profitability and expects continued revenue growth in 2024.
Intellinetics, Inc. (NYSE American: INLX) ha riportato i risultati finanziari per il secondo trimestre del 2024, evidenziando una crescita del fatturato del 9,0% con un totale di $4.641.593. I punti salienti includono:
- Il fatturato da SaaS è aumentato del 9,6% rispetto all'anno precedente
- Il fatturato dei servizi professionali è cresciuto del 15,8%
- Il reddito netto è stato di $75.050, ovvero $0,02 per azione
- EBITDA rettificato è aumentato del 7,1% fino a $698.217
La soluzione IPAS dell'azienda sta guadagnando terreno, con i conti di riferimento attivi che sono raddoppiati a quattro. Intellinetics ha ridotto il capitale del debito a $2.139.500 e prevede ulteriori riduzioni del debito. Nonostante l'aumento delle spese operative dovuto agli investimenti per la crescita, l'azienda mantiene la redditività e si aspetta una continua crescita del fatturato nel 2024.
Intellinetics, Inc. (NYSE American: INLX) reportó resultados financieros para el segundo trimestre de 2024, mostrando un crecimiento del 9.0% en ingresos alcanzando $4,641,593. Los aspectos más destacados incluyen:
- Los ingresos por SaaS aumentaron un 9.6% interanual
- Los ingresos por servicios profesionales crecieron un 15.8%
- La renta neta fue de $75,050 o $0.02 por acción
- El EBITDA ajustado aumentó un 7.1% a $698,217
La solución IPAS de la empresa está ganando tracción, con cuentas de referencia en vivo que se duplicaron a cuatro. Intellinetics redujo su principal de deuda a $2,139,500 y planea una mayor reducción de deuda. A pesar de los aumentos en los gastos operativos debido a inversiones en crecimiento, la compañía mantiene la rentabilidad y espera un crecimiento continuo en los ingresos en 2024.
Intellinetics, Inc. (NYSE American: INLX)는 2024년 2분기 재무 결과를 보고하며 수익이 9.0% 증가하여 $4,641,593에 도달했다고 발표했습니다. 주요 내용은 다음과 같습니다:
- SaaS 수익는 전년 대비 9.6% 증가했습니다
- 전문 서비스 수익은 15.8% 성장했습니다
- 순이익은 $75,050로 주당 $0.02입니다
- 조정 EBITDA는 7.1% 상승하여 $698,217에 달했습니다
회사의 IPAS 솔루션은 라이브 레퍼런스 계정이 네 개로 두 배 증가하여 인기를 얻고 있습니다. Intellinetics는 부채를 $2,139,500으로 줄였으며 추가적인 부채 감축을 계획하고 있습니다. 성장에 대한 투자의 증가로 인해 운영 비용이 증가했음에도 불구하고, 회사는 수익성을 유지하고 있으며 2024년에 지속적인 수익 성장을 기대하고 있습니다.
Intellinetics, Inc. (NYSE American: INLX) a annoncé ses résultats financiers pour le deuxième trimestre 2024, affichant une croissance du chiffre d'affaires de 9,0% atteignant $4.641.593. Les faits marquants incluent :
- Les revenus SaaS ont augmenté de 9,6% par rapport à l'année précédente
- Les revenus des services professionnels ont progressé de 15,8%
- Le revenu net s'est élevé à $75.050, soit $0,02 par action
- L'EBITDA ajusté a augmenté de 7,1% pour atteindre $698.217
La solution IPAS de l'entreprise gagne en popularité, avec des comptes de référence en direct doublant pour atteindre quatre. Intellinetics a réduit son principal d'endettement à $2.139.500 et prévoit de poursuivre la réduction de sa dette. Malgré une augmentation des dépenses d'exploitation en raison d'investissements dans la croissance, l'entreprise maintient sa rentabilité et prévoit une poursuite de la croissance du chiffre d'affaires en 2024.
Intellinetics, Inc. (NYSE American: INLX) berichtete über die finanziellen Ergebnisse für das 2. Quartal 2024, die ein Umsatzwachstum von 9,0% auf $4.641.593 zeigten. Die wichtigsten Highlights sind:
- Die SaaS-Einnahmen stiegen um 9,6% im Jahresvergleich
- Die Einnahmen aus professionellen Dienstleistungen wuchsen um 15,8%
- Der Nettogewinn betrug $75.050 oder $0,02 pro Aktie
- Das angepasste EBITDA stieg um 7,1% auf $698.217
Die IPAS-Lösung des Unternehmens gewinnt an Bedeutung, da die Live-Referenzkonten auf vier verdoppelt wurden. Intellinetics hat seinen Schuldenhauptbetrag auf $2.139.500 reduziert und plant eine weitere Schuldenreduzierung. Trotz gestiegener Betriebskosten aufgrund von Investitionen in das Wachstum bleibt das Unternehmen rentabel und erwartet 2024 ein weiteres Umsatzwachstum.
- Total revenue increased 9.0% year-over-year to $4,641,593
- SaaS revenue grew 9.6% compared to the same period in 2023
- Professional services revenue increased 15.8% year-over-year
- Adjusted EBITDA rose 7.1% to $698,217
- Debt principal reduced to $2,139,500 from $2,964,500 at the end of 2023
- IPAS solution gaining traction with live reference accounts doubling to four
- Net income decreased to $75,050 from $135,734 in the same period last year
- Operating expenses increased 23.4% to $2,830,873
- Company expects Adjusted EBITDA to decline modestly compared to 2023 due to increased investments
- Potential future revenue reduction in document conversion segment due to customer transition
Insights
Intellinetics' Q2 2024 results show a mixed financial picture. The
The company's focus on debt reduction is noteworthy, with
The potential revenue reduction from a major professional services customer is a concern. While the impact remains uncertain, it could significantly affect future earnings. Investors should monitor this situation closely as it develops.
Intellinetics' IPAS (IntelliCloud Payables Automation System) is showing promising traction, with live reference accounts doubling to four in Q2. This SaaS solution appears to be a key growth driver for the company's future. The reported ROI of less than a year for IPAS customers is particularly compelling, suggesting strong potential for market adoption.
The implementation of NetSuite for improved financial visibility and functionality is a positive step towards scaling operations. This, combined with the expansion of the development team, indicates a commitment to product innovation and operational efficiency.
However, the transition of certain tasks by a major customer in the document conversion business poses a potential risk to the company's professional services segment. The uncertainty around this transition's timeline and impact warrants close attention from a technological and operational perspective.
SaaS Revenue Increases
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
, or$75,050 net income per basic and fully diluted share, compared to net income of$0.02 , or$135,734 per basic and fully diluted share, for the same period in 2023.$0.03 -
Adjusted EBITDA increased
7.1% to , compared to$698,217 for the same period in 2023.$651,646 -
Ended the quarter with
in debt principal, down from$2,139,500 at December 31, 2023 after paying down$2,964,500 in the quarter as a pre-payment. Year-to-date, Intellinetics has made$325,000 in debt pre-payments, and expects to pay down another$825,000 in Q3.$800,000
|
For the Quarter ended
|
|
||||||
|
|
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
Summary – 2024 Second Quarter Results
Revenues for the three months ended June 30, 2024 were
Total operating expenses increased
Intellinetics reported net income of
Summary – 2023 Year-to-Date Results
Revenues for the six months ended June 30, 2024 were
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
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.
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
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, |
|
|
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 |
|
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813153206/en/
FNK IR
Tom Baumann / Rob Fink
646.349.6641 / 646.809.4048
INLX@fnkir.com
Joe
Intellinetics, Inc.
614.921.8170 investors@intellinetics.com
Source: Intellinetics, Inc.
FAQ
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