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Intellinetics Grows 2024 Revenues 9.0% for Second Quarter of 2024

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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.

Positive
  • 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
Negative
  • 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 9.0% revenue growth, driven by increases in SaaS (9.6%) and professional services (15.8%), is encouraging. However, net income decreased from $135,734 to $75,050, primarily due to higher operating expenses.

The company's focus on debt reduction is noteworthy, with $825,000 in pre-payments year-to-date and plans for another $800,000 in Q3. This aggressive debt reduction strategy, coupled with investments in sales and marketing, suggests management is positioning for future growth while strengthening the balance sheet.

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 9.6% and Professional Services Revenue Increases 15.8% with GAAP Profitability

COLUMBUS, Ohio--(BUSINESS WIRE)-- Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, announced financial results for the three and six months ended June 30, 2024.

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 $75,050, or $0.02 net income per basic and fully diluted share, compared to net income of $135,734, or $0.03 per basic and fully diluted share, for the same period in 2023.
  • Adjusted EBITDA increased 7.1% to $698,217, compared to $651,646 for the same period in 2023.
  • Ended the quarter with $2,139,500 in debt principal, down from $2,964,500 at December 31, 2023 after paying down $325,000 in the quarter as a pre-payment. Year-to-date, Intellinetics has made $825,000 in debt pre-payments, and expects to pay down another $800,000 in Q3.

 

For the Quarter ended
June 30,

 

 

 

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 $825,000 of our long-term debt so far this year, leaving us with a debt principal balance of just $2.1 million at June 30,” continued DeSocio. “We’ve accomplished this even as we’ve increased our operating expenses with structural investments designed to help us scale. We have implemented NetSuite to provide better visibility and functionality into our financials and project profitability and also grew our development team to expediate new product releases. We intend to continue to reduce our leverage while further investing in sales and marketing initiatives. Specifically, we’re planning to prepay another $800,000 before the end of August. This demonstrates the structural profitability of our business model. As this strategy matures, we will be positioned for robust profitability and sustainable growth, with a high predictability.”

Summary – 2024 Second Quarter Results

Revenues for the three months ended June 30, 2024 were $4,641,593, an increase of 9.0%, as compared with $4,258,430 for the same period in 2023. This organic increase was driven by a 9.6% increase in SaaS revenue, and a 15.8% increase in professional services fees, partially offset by lower sales of storage and retrieval and modest growth, at 1.4% as expected, in software maintenance services. Recurring revenue grew 6.6% and represented 57% of total revenue.

Total operating expenses increased 23.4% to $2,830,873, compared to $2,294,045, driven by higher non-cash depreciation and amortization expenses including an incremental $135,900 related to our issuance of restricted stock awards to employees, planned investments in sales and marketing, and higher general and administrative expenses. Income from operations was $172,106 compared to income from operations of $296,388 in the second quarter last year.

Intellinetics reported net income of $75,050 compared to net income of $135,734 for the same period in 2023. Basic and diluted net income per share for the three months ended June 30, 2024 was $0.02, compared to net income per share of $0.03 per basic and fully diluted share for the period ended June 30, 2023. Adjusted EBITDA was $698,217 compared to $651,646 in 2023.

Summary – 2023 Year-to-Date Results

Revenues for the six months ended June 30, 2024 were $9,148,677, an increase of 8.3% compared to $8,445,263 for the same period in 2023. Total operating expenses increased 23.8% to $5,764,997 compared to $4,655,885. In addition to structural investments for growth and scale, the primary driver of the expense increase was $533,919 related to our issuance of restricted stock awards to employees, a non-cash expense except for $69,525. Income from operations was $137,626, compared to income from operations of $580,387 last year. Intellinetics reported a net loss of $99,664, or $(0.02) per basic and diluted share (inclusive of a $397,901 charge in the first quarter of 2024 related to restricted stock awards), compared to net income of $248,297, or $0.06 per basic and diluted share, for the same period in 2023. Adjusted EBITDA was $1,371,579 compared to $1,281,525.

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 IntelliCloudcontent 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, 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 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 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, $0.001 par value, 25,000,000 shares authorized; 4,230,806 and 4,113,621 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

 

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

 

 

$

-

 

 

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

Source: Intellinetics, Inc.

FAQ

What was Intellinetics' (INLX) revenue growth in Q2 2024?

Intellinetics reported a 9.0% increase in total revenue for Q2 2024 compared to the same period in 2023, reaching $4,641,593.

How much did Intellinetics' (INLX) SaaS revenue grow in Q2 2024?

Intellinetics' SaaS revenue increased by 9.6% in Q2 2024 compared to the same quarter in 2023.

What was Intellinetics' (INLX) net income for Q2 2024?

Intellinetics reported a net income of $75,050, or $0.02 per basic and fully diluted share, for Q2 2024.

How much debt did Intellinetics (INLX) pay down in Q2 2024?

Intellinetics paid down $325,000 in debt as a pre-payment in Q2 2024, reducing its debt principal to $2,139,500.

What is the outlook for Intellinetics (INLX) for fiscal year 2024?

Intellinetics expects to grow revenues year-over-year for fiscal year 2024 but anticipates a modest decline in Adjusted EBITDA compared to 2023 due to increased investments in sales and marketing.

Intellinetics, Inc.

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