Attached files
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| 8-K - 8-K - INTELLINETICS, INC. | v410665_8k.htm |
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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