Intellinetics, Inc. Reports First Quarter Results

Revenue and Channel Growth Accelerating

COLUMBUS, Ohio--(BUSINESS WIRE)-- 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 first quarter ended March 31, 2015.

First Quarter Key Metrics Trending Positively

  • Revenue increased 95%
  • Gross margins increased 2%
  • Net loss narrowed 48%

Summary - First Quarter Results

Revenues for the three months ended March 31, 2015 were $583,775, as compared with $299,183 for the same period in 2014, an increase of $284,592, or 95%, primarily attributable to increases in revenues from the sale of software, software as a service and professional services. Overall gross margins were 81% and 79% for the three months ended March 31, 2015 and 2014, respectively, an increase of 2%.

Expenses were $679,095 for the three months ended March 31, 2015, as compared with $639,577 for the three months ended March 31, 201, representing an increase of $31,518 or 6%. The increase in expenses was due to an increase in interest expense of $47,896, as a result of an increase debt outstanding for the three months ended March 31, 2015. The increased debt was incurred to fund our growth.

Intellinetics reported a net loss of $208,857 and $403,822 for the three months ended March 31, 2015 and 2014, respectively, representing a decrease in net loss of $194,965, or 48%.

Matthew L. Chretien, President and CEO of Intellinetics, stated, “This year we will accelerate our revenue growth and become both, cash flow positive and profitable. Our three dedicated channel managers, one for each partner profile, are laser focused on growing the revenue from each of the partners within their profile as well as establishing new profile partners. We are already seeing, material results from that focus.”

Murray Gross, Chairman of the Board, stated, “It is very encouraging to see that our EBITA improved from ($348,848) in Q1 2014 to ($109,575) in Q1 2015. It is a clear indication of the progress being made in executing our strategy.”

IntelliCloud – Powered by the Intel® NUC

The Intellinetics’ IntelliCloud Program provides turnkey document workflow solutions for SMB’s through a growing network of partners who already serve them. Our partners simply attach IntelliCloud to the software, hardware, and/or services they already sell to existing customers and deliver more value to the customer and create new / recurring revenue streams for themselves…and us, all without the sales or technical complexity of other less effective options in the market.

Targeted Channel Strategy

Intellinetics’ is focused on IntelliCloud Program growth within three specific partner profiles:

  • Office Equipment Dealers (OED) - Copier dealers who also provide value added software, service and technology services
  • ECM Value Added Reseller (VAR) - Expert ECM software, hardware and service providers
  • Software Solution Providers - Enterprise Resource Planning (ERP) or other software applications with proprietary IntelliCloud Integration.

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 the 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: or

Cautionary Statement

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 or at or at

Condensed Consolidated Balance Sheets
March 31, December 31,
2015 2014
Current assets:
Cash $ 79,775 $ 184,081
Accounts receivable, net 226,297 99,061
Prepaid expenses and other current assets   30,808     45,668  
Total current assets 336,880 328,810
Property and equipment, net 25,293 28,671
Other assets   23,929     27,809  
Total assets $ 386,102   $ 385,290  
Current liabilities:
Accounts payable and accrued expenses $ 672,434 $ 615,305
Deferred revenues 501,475 563,998
Deferred compensation 215,012 215,012
Notes payable - current 744,410 756,614
Notes payable - related party - current   1,789,053     1,549,965  
Total current liabilities 3,922,384 3,700,894
Long-term liabilities:
Notes payable - net of current portion 508,371 543,615
Notes payable - related party 153,714 217,479
Deferred interest expense 112,855 103,242
Other long-term liabilities - related parties   108,011     73,769  
Total long-term liabilities   882,951     938,105  
Total liabilities 4,805,335 4,638,999
Stockholders' deficit:

Common stock, $0.001 par value, 50,000,000 shares authorized; 7,123,074 shares issued and outstanding at March 31, 2015 and December 31, 2014

14,124 14,124
Additional paid-in capital 5,232,511 5,189,178
Accumulated deficit   (9,665,868 )   (9,457,011 )
Total stockholders' deficit   (4,419,233 )   (4,253,709 )
Total liabilities and stockholders' deficit $ 386,102   $ 385,290  
Consolidated Statements of Operations
For the Three Months Ended 31,
2015 2014
Sale of software $ 190,037 $ 8,000
Software as a service 56,539 39,442
Software maintenance services 228,671 210,522
Professional services 82,238 29,424
Third Party services 26,290 11,795
Total revenues   583,775     299,183  
Cost of revenues:
Sale of software 47,522 6,444
Software as a service 10,910 6,930
Software maintenance services 31,008 31,747
Professional services 20,518 9,710
Third Party services   3,579     8,597  
Total cost of revenues   113,537     63,428  
Gross profit   470,238     235,755  
Operating expenses:
General and administrative 365,840 468,469
Sales and marketing 213,977 116,174
Depreciation   3,378     6,930  
Total operating expenses   583,195     591,573  
Loss from operations (112,957 ) (355,818 )
Other income (expense)
Interest expense, net   (95,900 )   (48,004 )
Total other income (expense) (95,900 ) (48,004 )
Net loss $ (208,857 ) $ (403,822 )
Basic and diluted net loss per share: $ (0.03 ) $ (0.06 )

Weighted average number of common shares outstanding - basic and diluted

  7,123,074     6,765,930  

Intellinetics, Inc.
Matthew L. Chretien, 614-921-8170
President and CEO

Source: Intellinetics, Inc.