Exhibit 99.1

 

 

 

News

 

Intellinetics, Inc. Reports First Quarter Results

 

Revenue and Channel Growth Accelerating

 

COLUMBUS, OH – (May 14, 2015) – 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.”

 

IntelliCloudTM– 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.

 

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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: http://www.intel.com/intellicloud or www.intellinetics.com

 

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 www.intellinetics.com or at www.sec.gov .

 

Contact:

Matthew L. Chretien, President and CEO

Intellinetics, Inc.

614-921-8170 matt@intellinetics.com

 

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   (Unaudited)     
   March 31,   December 31, 
   2015   2014 
ASSETS          
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 
LIABILITIES AND STOCKHOLDERS' DEFICIT          
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 

 

See Notes to these condensed consolidated financial statements

 

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   For the Three Months Ended 31, 
   2015   2014 
         
Revenues:          
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 

 

See Notes to these condensed consolidated financial statements

 

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