Exhibit 99.1

 

 

Intellinetics, Inc. Reports Second Quarter and Six-Month Financial Results

Revenue and Channel Growth Accelerating

 

COLUMBUS, OH – (August 15, 2016) – 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 second quarter and six-months ended June 30, 2016.

 

Second Quarter Highlights

1.8.4% increase in Revenue
2.91% increase in Software as a service revenues
3.Expanded internal sales team
4.Expanded sales channel

 

Second Quarter Results

Revenues for the three months ended June 30, 2016 were $636,749 as compared with $587,170 for the same period in 2015. The increase is primarily attributed to revenues from the sale of software as a service, software maintenance services, and third-party services.

 

Intellinetics reported a net loss of $401,964 and $642,742 for the three months ended June 30, 2016 and 2015, respectively, representing a decrease in net loss of $240,778, or 37%. Net loss per share for the three months ended June 30, 2016 and 2015 was ($0.02) and ($0.09), respectively.

 

Six-Month Results

Revenues for the six months ended June 30, 2016 were $1,240,140 as compared with $1,170,945 for the same period in 2015. Intellinetics reported a net loss of $937,730 and $851,599, respectively, for the six months ended June 30, 2016 and 2015, respectively, an increase of $86,161. Net loss per share for the six months ended June 30, 2016 and 2015 was ($0.06) and ($0.12), respectively, a decrease of 50%.

 

Matthew L. Chretien, President and CEO of Intellinetics, noted that, “Q2 results, including markedly improved top and bottom line numbers, do not yet reflect the progress we have made and the foundation that was laid during the quarter to position the Company for accelerated growth during the balance of the year and beyond. We have doubled the internal sales team to six during this quarter.

 

“Because of the increase of our sales staff, and particularly because of the growth of our sales channel partners, we recently established IntelliCloud™ University (www.intelliclouduniversity.com). This automated system provides sales training and marketing services to help increase partner sales competency and revenue production. These investments are key objectives in our strategy, which have already resulted in a 91% increase in recurring, cloud-based revenue this period, and are critical steps to build shareholder value and financial strength as we grow,” concluded Chretien.

 

-Continued-

 

 

 

 

IntelliCloudTM – Powered by the Intel® NUC

The Intellinetics’ IntelliCloud Program provides turnkey document workflow solutions for SMB’s through a growing network of channel partners who already serve them. Our channel 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.

 

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 they 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: 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 future events, operations and financial results, are forward-looking statements. Forward-looking statements include statements regarding accelerated growth, increased partner sales competency and revenue production and building shareholder value and financial strength, new products and solutions and statements of assumptions underlying the foregoing. The forward-looking statements are not guarantees of future performance or events and are subject to a number of risks and uncertainties and other factors that are difficult to predict and could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, customer and channel acceptance of new solutions, variations and limitations in the company’s cash flow and the inadequacy of capital resources to fund operations for the next 9 to 12 months, market acceptance risks, technical development risks, and other risks, uncertainties and other factors identified from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including the company's most recent Annual Report on Form 10-K, as well as subsequently filed reports on Form 10-Q and Form 8-K. Accordingly, there is no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and the company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. 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:

Terri MacInnis, VP of Investor Relations

Bibicoff + MacInnis, Inc.

818.379.8500 terri@bibimac.com

 

-Continued-

 

 

 

 

INTELLINETICS, INC. and SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2016   2015   2016   2015 
                 
Revenues:                    
Sale of software  $101,694   $147,723   $192,568   $337,760 
Software as a service   116,343    60,966    226,499    117,505 
Software maintenance services   245,317    231,939    491,913    460,610 
Professional services   85,609    92,782    183,785    175,020 
Third Party services   87,786    53,760    145,375    80,050 
                     
Total revenues   636,749    587,170    1,240,140    1,170,945 
                     
Cost of revenues:                    
Sale of software   18,051    19,704    37,569    67,226 
Software as a service   37,054    11,764    61,642    22,674 
Software maintenance services   37,988    31,451    84,546    62,459 
Professional services   30,612    23,593    61,967    44,111 
Third Party services   55,373    35,933    82,814    39,512 
                     
Total cost of revenues   179,078    122,445    328,538    235,982 
                     
Gross profit   457,671    464,725    911,602    934,963 
                     
Operating expenses:                    
General and administrative   528,163    791,404    1,177,292    1,157,245 
Sales and marketing   304,593    217,679    503,536    431,655 
Depreciation   2,767    2,673    5,723    6,051 
                     
Total operating expenses   835,523    1,011,756    1,686,551    1,594,951 
                     
Loss from operations   (377,852)   (547,031)   (774,949)   (659,988)
                     
Other income (expense)                    
Interest expense, net   (24,112)   (95,711)   (162,781)   (191,611)
                     
Total other income (expense)   (24,112)   (95,711)   (162,781)   (191,611)
                     
Net loss  $(401,964)  $(642,742)  $(937,730)  $(851,599)
                     
Basic and diluted net loss per share:  $(0.02)  $(0.09)  $(0.06)  $(0.12)
                     
Weighted average number of common shares outstanding - basic and diluted   16,794,992    7,123,024    16,529,023    7,123,024 

 

-Continued-

 

 

 

 

INTELLINETICS, INC. and SUBSIDIARY

Condensed Consolidated Balance Sheets

 

   (Unaudited)     
   June 30,   December 31, 
   2016   2015 
         
ASSETS          
Current assets:          
Cash  $401,842   $1,117,118 
Accounts receivable, net   281,353    217,028 
Prepaid expenses and other current assets   169,885    46,521 
           
Total current assets   853,080    1,380,667 
           
Property and equipment, net   19,891    22,603 
Other assets   10,285    10,285 
           
Total assets  $883,256   $1,413,555 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
           
Current liabilities:          
Accounts payable and accrued expenses  $694,812   $826,864 
Deferred revenues   479,587    638,193 
Deferred compensation   215,012    215,012 
Notes payable - current   323,934    401,573 
Notes payable - related party - current   36,449    92,805 
Total current liabilities   1,749,794    2,174,447 
           
Long-term liabilities:          
Notes payable - net of current portion   606,260    782,206 
Notes payable - related party   108,706    127,409 
Deferred interest expense   152,018    136,078 
Other long-term liabilities - related parties   -    12,852 
           
Total long-term liabilities   866,984    1,058,545 
           
Total liabilities   2,616,778    3,232,992 
           
           
Stockholders' deficit:          
Common stock, $0.001 par value, 50,000,000 shares authorized; 16,794,992 and 14,908,439 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively   26,795    21,909 
Additional paid-in capital   12,555,852    11,537,093 
Accumulated deficit   (14,316,169)   (13,378,439)
Total stockholders' deficit   (1,733,522)   (1,819,437)
Total liabilities and stockholders' deficit  $883,256   $1,413,555