Intellinetics, Inc. Reports Third Quarter and Nine-Month Results
COLUMBUS, Ohio--(BUSINESS WIRE)-- Intellinetics, Inc., (OTCQB: INLX) a leading-edge technology company focused on the design, implementation and management of cloud-based Enterprise Content Management (ECM) systems in both the public and private sectors, announced financial results for the third quarter and nine-month periods ended September 30, 2014.
Third Quarter Results
Total revenues for the three months ended September 30, 2014 were $316,762, as compared with $381,078 for the same period in 2013, a decrease of $64,316, or 17%, primarily attributable to decreases in revenues from the sale of software and professional services. Overall gross margins were 81% and 70% for the three months ended September 30, 2014 and 2013, respectively, an increase of 11%.
Total operating expenses were $824,906 for the three months ended September 30, 2014, as compared with $767,533 for the three months ended September 30, 2013, representing an increase of $57,373 or 7%. The increase in operating expenses is primarily due to outside consulting for the sales and marketing department offset by the decrease in general and administration personnel.
Intellinetics reported a net loss of $638,609 and $541,412 for the three months ended September 30, 2014 and 2013, respectively, representing an increase in net loss of $97,197, or 18%.
For the nine months ended September 30, 2014, the Company’s total revenues were $942,297, as compared with $1,207,123 for the same period in 2013, a decrease of $264,826 or 22%, primarily attributable to decreases in revenues from the sale of software and professional services. Overall gross margins were 80% and 61% for the nine months ended September 30, 2014 and 2013, respectively, an increase of 19%.
Total operating expenses for the nine months ended September 30, 2014 and 2013 were $1,991,418 and $2,335,288 respectively, a decrease of $343,870 or 15%. The decrease in operating expenses was primarily due to a reduction in sales and marketing expense and a decrease in administrative expenses from the reduction in personnel offset by consulting fees.
For the nine months ended September 30, 2014 and 2013, the Company reported a net loss of $1,415,145 and $1,732,106, respectively, representing a decrease of $316,961 or 18%.
Matthew L. Chretien, President and CEO of Intellinetics, stated, “We have now substantially completed the strategic shift in focus from premise-based, one-time sales to the new low-cost, cloud-based IntelliCloud™ model. I look forward to meaningful revenue growth in Q4 as a result of our expanding sales channel.”
A video of the power and innovation of IntelliCloud (and other market leaders that are a part of the growing IntelliCloud eco-system) can be seen at http://www.intel.com/content/www/us/en/nuc/nuc-intellinetics-video.html?wapkw=intellinetics
About Intellinetics, Inc.
Intellinetics, Inc., formerly known as GlobalWise Investments, Inc., is a Columbus, Ohio-based Enterprise Content Management (ECM) pioneer with industry-leading software that delivers cloud ECM based solutions on-demand. The Company’s flagship platform, Intellivue™, represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world. For additional information, please visit: www.Intellinetics.com
Statements in this press release which are not purely historical, including statements regarding Intellinetics' intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future 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 risk factors. 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 www.intellinetics.com or at www.sec.gov .
|INTELLINETICS, INC. and SUBSIDIARY|
|Condensed Consolidated Balance Sheets|
|September 30,||December 31,|
|Accounts receivable, net||45,138||144,071|
|Prepaid expenses and other current assets||45,253||39,242|
|Total current assets||104,676||443,873|
|Property and equipment, net||33,328||53,226|
|LIABILITIES AND STOCKHOLDERS' DEFICIT|
|Accounts payable and accrued expenses||$||563,847||$||500,322|
|Notes payable - current||727,185||391,266|
|Notes payable - related party - current||207,915||320,000|
|Total current liabilities||2,259,602||1,694,016|
|Notes payable - net of current portion||620,492||1,114,394|
|Notes payable - related party||1,137,751||222,915|
|Deferred interest expense||93,268||83,942|
|Other long-term liabilities - related parties||78,792||36,938|
|Total long-term liabilities||1,930,303||1,673,201|
Common stock, $0.001 par value, 50,000,000 shares authorized;
|Additional paid-in capital||5,189,178||4,953,410|
|Total stockholders' deficit||(4,020,213||)||(2,841,193||)|
|Total liabilities and stockholders' deficit||$||169,692||$||526,024|
|INTELLINETICS, INC. and SUBSIDIARY|
|Condensed Consolidated Statements of Operations|
|For the Three Months Ended September 30,||For the Nine Months Ended September 30,|
|Sale of software||$||25,990||$ 84,115||$||38,486||$||253,127|
|Software as a service||52,582||34,919||133,052||104,030|
|Software maintenance services||216,310||211,759||638,832||648,765|
|Third Party services||10,075||4,292||43,348||36,665|
|Cost of revenues:|
|Sale of software||4,073||55,419||11,777||300,472|
|Software as a service||6,909||6,881||20,779||20,684|
|Software maintenance services||31,274||32,172||94,097||92,496|
|Third Party services||12,989||15,769||40,217||52,434|
|Total cost of revenues||59,731||114,916||191,694||476,764|
|General and administrative||474,301||566,448||1,385,848||1,642,065|
|Sales and marketing||344,690||193,579||585,915||673,601|
|Total operating expenses||824,906||767,533||1,991,418||2,335,288|
|Loss from operations||(567,875||)||(501,371||)||(1,240,815||)||(1,604,929||)|
|Other income (expense)|
|Interest expense, net||(70,734||)||(40,041||)||(174,330||)||(142,647||)|
|Total other income (expense)||(70,734||)||(40,041||)||(174,330||)||(127,177||)|
|Net loss||$||(638,609||)||$ (541,412||)||$||(1,415,145||)||$||(1,732,106||)|
|Basic and diluted net loss per share:||$||(0.09||)||$ (0.08||)||$||(0.21||)||$||(0.27||)|
Weighted average number of common shares outstanding - basic and diluted
Matthew L. Chretien, President and CEO
Source: Intellinetics, Inc.
Released November 12, 2014