Exhibit 99.1

 

 

 

Intellinetics, Inc. Reports Third Quarter and Nine-Month Financial Results

Revenue and Channel Growth Accelerating

 

 

COLUMBUS, OH – (November 14, 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 third quarter and nine-months ended September 30, 2016.

 

Third Quarter Highlights

1.9.2% increase in Revenue
2.111.9% increase in recurring SaaS revenues

 

Third Quarter Results

Revenues for the three months ended September 30, 2016 were $679,445 as compared with $621,974 for the same period in 2015. The increase is primarily attributed to revenues from the sale of software as a service.

 

Intellinetics reported a net loss of $246,767 and $253,553 for the three months ended September 30, 2016 and 2015, respectively, representing a decrease in net loss of $6,786, or 2.7%. Net loss per share for the three months ended September 30, 2016 and 2015 was ($0.01) and ($0.04), respectively.

 

Nine-Month Results

Revenues for the nine months ended September 30, 2016 were $1,919,585 as compared with $1,767,919 for the same period in 2015. Of this $363,842 was SaaS revenue in 2016 and $182,322 was SaaS revenue in 2015. Intellinetics reported a net loss of $1,184,497 and $1,130,173, respectively, for the nine months ended September 30, 2016 and 2015, respectively, an increase of $54,324. Net loss per share for the nine months ended September 30, 2016 and 2015 was ($.07) and ($.16), respectively, a decrease of 56.3%.

 

Matthew L. Chretien, President and CEO of Intellinetics, noted that, “We posted a significant increase in our recurring SaaS revenue segment which is vital to financial strength and sustained revenue growth. We continue to add to our dealer network with increased adoption and use of IU (www.intelliclouduniversity.com) - our automated IntelliCloud sales training and partner enablement platform, and is an important contributor to the increase in Cloud based revenue. Working with our strategic offices solutions partner to build the sales and operations model was an additional focus during this quarter that cleared the path for in-field selling activities moving forward. We believe that we have all of the pieces in place to be able to show continuous quarter over quarter revenue growth on a sustained basis.”

 

IntelliCloudTM – Powered by the Intel® NUC

Intellinetics, Inc. is a Columbus, Ohio based, innovative and trusted provider of its cloud-enabled document management platform - IntelliCloud. IntelliCloud is optimized for the vast SMB market segment and business teams within large enterprises stuck with paper in business-critical processes. Thousands and Thousands of people at any given moment depend upon IntelliCloud to perform their work. IntelliCloud is strategically packaged with Intel technology, provides Law Enforcement Grade security and compliance tools and is supported by a growing network of market-leading reseller partners. Resellers often attach IntelliCloud to the software, hardware, and/or services they already sell 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’ future revenues and growth, market penetration and product acceptance, 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 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 risks and uncertainties discussed in the company’s most recent annual report on Form 10-K and subsequently filed Form 10-Qs and Form 8-Ks. 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:

Terri MacInnis, VP of Investor Relations

Bibicoff + MacInnis, Inc.

818.379.8500 terri@bibimac.com

 

 

 

 

INTELLINETICS, INC. and SUBSIDIARY

Condensed Consolidated Statements of Operations

(Unaudited)

 

                 
   For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
   2016   2015   2016   2015 
Revenues:                
Sale of software  $96,869   $136,459   $289,437   $449,219 
Software as a service   137,343    64,817    363,842    182,322 
Software maintenance services   256,441    239,506    748,354    700,116 
Professional services   153,895    152,169    337,680    327,189 
Third Party services   34,897    29,023    180,272    109,073 
                     
Total revenues   679,445    621,974    1,919,585    1,767,919 
                     
Cost of revenues:                    
Sale of software   16,432    23,650    54,001    90,876 
Software as a service   41,883    14,097    103,525    36,771 
Software maintenance services   25,019    32,943    109,564    95,402 
Professional services   32,476    41,670    94,443    85,781 
Third Party services   26,103    18,334    108,918    57,846 
                     
Total cost of revenues   141,913    130,694    470,451    366,676 
                     
Gross profit   537,532    491,280    1,449,134    1,401,243 
                     
Operating expenses:                    
General and administrative   420,935    390,841    1,598,185    1,548,096 
Sales and marketing   338,843    191,325    842,421    622,990 
Depreciation   2,437    2,589    8,160    8,640 
                     
Total operating expenses   762,215    584,755    2,448,766    2,179,726 
                     
Loss from operations   (224,683)   (93,475)   (999,632)   (778,483)
                     
Other income (expense)                    
Interest expense, net   (22,084)   (160,078)   (184,865)   (351,690)
                     
Total other income (expense)   (22,084)   (160,078)   (184,865)   (351,690)
                     
Net loss  $(246,767)  $(253,553)  $(1,184,497)  $(1,130,173)
                     
Basic and diluted net loss per share:  $(0.01)  $(0.04)  $(0.07)  $(0.16)
                    
Weighted average number of common shares outstanding – basic and diluted   16,810,582    7,123,024    16,622,864    7,123,024 

 

 

 

 

 

INTELLINETICS, INC. and SUBSIDIARY

Condensed Consolidated Balance Sheets

 

ASSETS    
   (Unaudited)     
   September 30,   December 31, 
   2016   2015 
         
Current assets:        
Cash  $159,553   $1,117,118 
Accounts receivable, net   329,084    217,028 
Prepaid expenses and other current assets   172,065    46,521 
           
Total current assets   660,702    1,380,667 
           
Property and equipment, net   21,310    22,603 
Other assets   10,284    10,285 
           
Total assets  $692,296   $1,413,555 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
           
Current liabilities:          
Accounts payable and accrued expenses  $675,563   $826,864 
Deferred revenues   592,186    638,193 
Deferred compensation   215,012    215,012 
Notes payable - current   354,768    401,573 
Notes payable - related party - current   37,368    92,805 
Total current liabilities   1,874,897    2,174,447 
           
Long-term liabilities:          
Notes payable - net of current portion   516,135    782,206 
Notes payable - related party   99,012    127,409 
Deferred interest expense   159,304    136,078 
Other long-term liabilities - related parties   -    12,852 
           
Total long-term liabilities   774,451    1,058,545 
           
Total liabilities   2,649,348    3,232,992 
           
           
Stockholders'  deficit:          
Common stock, $0.001 par value, 50,000,000 shares authorized; 16,815,850 and 14,908,439          
shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively   26,816    21,909 
Additional paid-in capital   12,579,068    11,537,093 
Accumulated deficit   (14,562,936)   (13,378,439)
Total stockholders' deficit   (1,957,052)   (1,819,43)
Total liabilities and stockholders' deficit  $692,296   $1,413,555