Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Olema Pharmaceuticals, Inc. (OLMA) has seen a substantial increase of 213%, trading at $26.68 - Diginex Limited (DGNX) is up 12%, currently priced at $15.25 - Gorilla Technology Group Inc. (GRRR) has risen by 11%, trading at $14.05 - Amer Sports, Inc. (AS) is up 9%, priced at $33.47 - Click Holdings Limited (CLIK) has increased by 9%, trading at $7.38 - Beamr Imaging Ltd. (BMR) is up 9%, currently at $2.14 - James Hardie Industries plc (JHX) has risen by 8%, trading at $18.22 - Arvinas, Inc. (ARVN) is up 8%, priced at $12.00 - Axalta Coating Systems Ltd. (AXTA) has increased by 7%, trading at $30.28 - Genprex, Inc. (GNPX) is up 6%, currently at $4.31 [3] Premarket Losers - LifeMD, Inc. (LFMD) has decreased by 22%, trading at $3.65 - Alpha Technology Group Limited (ATGL) is down 21%, currently priced at $17.00 - Intellinetics, Inc. (INLX) has fallen by 19%, trading at $7.25 - Energizer Holdings, Inc. (ENR) is down 16%, priced at $20.00 - Invivyd, Inc. (IVVD) has decreased by 14%, currently at $2.42 - BellRing Brands, Inc. (BRBR) is down 12%, trading at $22.30 - Sadot Group Inc. (SDOT) has fallen by 9%, currently priced at $3.99 - CEVA, Inc. (CEVA) is down 8%, trading at $21.60 - Helmerich & Payne, Inc. (HP) has decreased by 7%, currently at $25.44 - Opendoor Technologies Inc. (OPEN) is down 5%, trading at $7.39 [4]

Core Insights - Intellinetics, Inc. (INLX) reported a quarterly loss of $0.08 per share, which was better than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of +20.00% [1] - The company posted revenues of $4 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 7.38% and down from $4.59 million a year ago [2] - Intellinetics shares have declined approximately 33.2% year-to-date, contrasting with the S&P 500's gain of 16.4% [3] Financial Performance - Over the last four quarters, Intellinetics has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $4.46 million, and for the current fiscal year, it is -$0.50 on revenues of $17.03 million [7] Industry Outlook - The Zacks Industry Rank for Internet - Content is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 12.8% to $4.0 million compared to $4.6 million in Q3 2024 [10] - SaaS revenue grew by 14.6% to $1.6 million, driven by early payables automation successes [10] - Professional services revenue decreased by 28% to $1.9 million, contributing to a net loss of $370,000, an improvement from a net loss of $393,000 in the same period last year [10][12] - Adjusted EBITDA for the quarter was $105,000, down from $480,000 in Q3 2024, primarily due to reduced professional services revenue [12] Business Line Data and Key Metrics Changes - SaaS revenue, including hosting, increased to $1.6 million, while software maintenance services decreased by 11.9% to $0.3 million [10] - Professional services revenue constituted 48% of total revenue, down from 57% the previous year [11] - Storage and retrieval services showed strong margins at 71%, up from 50.6% last year, due to price increases [11] Market Data and Key Metrics Changes - The company is experiencing a recovery in professional services revenue following the renewal of a large state contract [4] - The K-12 education market is showing positive momentum, with 31 new SaaS deals closed recently [8] - Homebuilders, despite a tough year, are expected to contribute to SaaS revenue growth [6] Company Strategy and Development Direction - The company aims to build a longer backlog while expanding other revenue streams, particularly in storage and retrieval services [5] - AI is being integrated into development and sales efforts, enhancing product offerings and customer engagement [6] - The strategy includes reinvesting cash flow into sales and marketing to drive growth and attract new investors [43] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 revenues to be lower than 2024 due to professional services weakness but anticipates SaaS revenue growth [14] - The company is optimistic about fourth quarter SaaS revenues exceeding those of Q4 2024 and fiscal year 2026 SaaS revenues surpassing 2025 [15] - Management highlighted a strong competitive position and diverse solutions with ample cross-selling opportunities [42] Other Important Information - The company has maintained a strong gross margin of 64.2%, up from 59.8% last year, driven by a favorable revenue mix [11] - Cash on hand as of September 30, 2025, was $3.2 million, with no debt on the balance sheet [12][13] Q&A Session Summary Question: What kind of ARR are we looking at for the K-12 deals? - The K-12 deals will drive over $100,000 in annual ARR, with potential for significant growth as the company gains access to more customers through partnerships [21][22] Question: Are homebuilders willing to expand beyond payables into other modules? - There is interest from customers in expanding into document management systems, indicating potential for cross-selling [25][26] Question: Will there be any churn in SaaS revenue? - The company has historically experienced low churn rates, around 5%, and expects net growth despite some churn [36][40]

Financial Performance - Revenues for Q3 2025 were $4,001,445, a decrease of 12.8% year-over-year, while revenues for the nine-month period were $12,259,603, down 10.8% year-over-year[95]. - SaaS revenues increased to $1,608,253 in Q3 2025, reflecting a growth of 14.6% year-over-year, and for the nine-month period, SaaS revenues reached $4,727,526, up 12.3% year-over-year[95][101]. - The Document Management segment generated $2,017,087 in Q3 2025, compared to $1,913,116 in Q3 2024, while the Document Conversion segment saw revenues drop to $1,984,358 from $2,676,509 in the same period[100]. - The net loss for Q3 2025 was $369,765, with a basic and diluted net loss per share of $0.08, compared to a net loss of $392,850 and a loss per share of $0.09 in Q3 2024[95]. - The company experienced a loss from operations of $1,572,261 for the nine-month period 2025, compared to a loss of $160,585 for the same period in 2024[99]. Operating Expenses - Operating expenses (excluding cost of revenues) for Q3 2025 were $2,947,128, a decrease of 3.2% year-over-year[95]. - Total operating expenses for Q3 2025 were $2,947,128, a decrease from $3,044,312 in Q3 2024, while total operating expenses for the nine-month period 2025 were $9,645,063, an increase from $8,756,898 in the nine-month period 2024[110]. - General and administrative expenses decreased by $38,376, or 1.9%, in Q3 2025 compared to Q3 2024, but increased by $473,142, or 7.7%, in the nine-month period 2025 compared to the nine-month period 2024[111]. - Sales and marketing expenses decreased by $86,531, or 12.3%, in Q3 2025 compared to Q3 2024, but increased by $310,821, or 17.5%, in the nine-month period 2025 compared to 2024[114]. - Depreciation and amortization increased by $27,723, or 9.6%, in Q3 2025 over Q3 2024, and by $104,202, or 12.6%, in the nine-month period 2025 compared to 2024[115]. Revenue Costs - Cost of revenues for Q3 2025 was $1,433,541, a decrease of 22.2% year-over-year, while for the nine-month period, it was $4,186,801, down 18.6% year-over-year[95]. - Total cost of revenues decreased by $409,983, or 22.2%, in Q3 2025 compared to Q3 2024, and decreased by $955,188, or 18.6%, in the nine-month period 2025 compared to the nine-month period 2024[105]. - The Document Conversion segment's cost of revenues decreased by $413,798, or 26.3%, in Q3 2025 compared to Q3 2024, and decreased by $1,002,019, or 22.9%, in the nine-month period 2025 compared to the nine-month period 2024[105]. - Cost of software as a service (SaaS) increased by $13,486, or 5.9%, in Q3 2025 compared to Q3 2024, and increased by $42,088, or 6.4%, in the nine-month period 2025 compared to the nine-month period 2024[107]. - Cost of professional services decreased by $372,876, or 25.0%, in Q3 2025 compared to Q3 2024, and decreased by $964,768, or 23.1%, in the nine-month period 2025 compared to the nine-month period 2024[108]. Cash Flow and Liquidity - As of September 30, 2025, the company had $3.2 million in cash and cash equivalents and a working capital deficit of $0.1 million, with the largest liability being $3.6 million in deferred revenues[119]. - Net cash provided by operating activities during the nine-month period 2025 was $1,463,711, a decrease from $3,721,943 in the same period of 2024[123]. - Net cash used in investing activities in the nine-month period 2025 was $677,868, compared to $695,359 in 2024[124]. - Net cash used by financing activities during the nine-month period 2025 amounted to $52,900, including $1,797,106 in gross proceeds from the issuance of common stock[125]. - The company has engaged in actions to improve liquidity, including securing a renewal contract with its largest customer effective June 1, 2025[118]. Market Conditions - Economic conditions, including wage inflation and interest rates, are expected to continue impacting the company's performance and growth plans[96][97]. - The company anticipates production in the Document Conversion segment to resume at more historical levels following a temporary reduction in volume prior to a contract renewal[94]. Employee Count - As of September 30, 2025, the company had 162 employees, down from 199 employees as of September 30, 2024[99]. Shareholder Information - Share-based compensation expense amounted to $1,131,891 in the nine-month period 2025, compared to $1,254,856 in the nine-month period 2024[112]. - The company raised a net total of approximately $23.1 million in cash through equity securities and $5.0 million through debt securities since 2012, all of which have been repaid as of June 18, 2025[117]. - The company has an effective registration statement covering up to $12.9 million of common stock, with approximately $8.2 million remaining available under the ATM Program as of the filing date[120].

Financial Performance - Total revenues for Q3 2025 were $4,001,445, a decrease of 12.8% compared to $4,589,625 in Q3 2024, primarily driven by a 28.0% decrease in professional services revenues[5] - Net loss for Q3 2025 was $369,765, or $0.08 per share, compared to a net loss of $392,850, or $0.09 per share in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $104,783, down from $479,537 in Q3 2024, attributed to increased infrastructure and SaaS spending[6] - For the nine months ended September 30, 2025, total revenues were $12,259,603, a decrease of 10.8% compared to $13,738,302 in the same period in 2024[9] - Net loss for the nine months ended September 30, 2025, was $1,664,920, compared to a net loss of $492,514 for the same period in 2024, representing a significant increase in losses[24] - Basic net loss per share for the three months ended September 30, 2025, was $(0.08), compared to $(0.09) for the same period in 2024[20] Revenue Streams - SaaS revenue increased by 14.6% year-over-year, with significant growth expected from Payables Automation solutions[6] - Professional services revenue decreased by 23.6% year-to-date, overshadowing the 12.3% growth in SaaS revenue[9] - The company is expanding its storage business to include climate-controlled storage for microfilm and microfiche, adding a new revenue stream[4] Cash and Assets - The company ended Q3 2025 with approximately $3.2 million in cash[6] - Cash at the end of the period increased to $3,222,179 from $2,489,236 at the beginning of the period, reflecting a net increase of $732,943[24] - Total current assets as of September 30, 2025, were $5,499,980, slightly up from $5,474,556 as of December 31, 2024[22] Liabilities and Expenses - Total liabilities decreased to $6,552,891 as of September 30, 2025, from $7,943,201 as of December 31, 2024[22] - Total operating expenses decreased by 3.2% to $2,947,128, driven by reductions in variable compensation and share-based compensation[7] - Operating expenses for the nine months ended September 30, 2025, totaled $9,645,063, an increase from $8,756,898 for the same period in 2024[20] - The company reported a total of $1,131,891 in share-based compensation for the nine months ended September 30, 2025[24] Future Outlook - The company expects 2025 revenues to be lower than 2024, but anticipates growth in SaaS revenues and positive Adjusted EBITDA in Q4 2025[10] Profitability - Gross profit for the three months ended September 30, 2025, was $2,567,904, down from $2,746,101 in the same period of 2024[20] - Deferred revenues increased to $3,635,648 as of September 30, 2025, compared to $3,411,852 as of December 31, 2024[22]

Core Insights - Intellinetics, Inc. (INLX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive shift in earnings estimates which is a significant factor influencing stock prices [1][3][10] Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6] - For the fiscal year ending December 2025, Intellinetics is expected to earn -$0.50 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.7% over the past three months [8] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7] - The upgrade of Intellinetics to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [10]

Core Viewpoint - Intellinetics, Inc. (INLX) has experienced a downtrend, losing 13.1% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near its opening price, reflecting buying interest [4][5]. - The effectiveness of the hammer pattern is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for INLX, which is a bullish indicator, as it typically leads to price appreciation [7]. - The consensus EPS estimate for the current year has increased by 5.7% over the last 30 days, indicating strong agreement among analysts regarding improved earnings potential [8]. - INLX holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [9][10].

Core Viewpoint - Intellinetics, Inc. reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.16, representing an earnings surprise of +18.75% [1] Financial Performance - The company posted revenues of $4.01 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.62% and down from $4.64 million a year ago [2] - Over the last four quarters, Intellinetics has surpassed consensus EPS estimates only once [2] Stock Performance - Intellinetics shares have declined approximately 23.7% since the beginning of the year, while the S&P 500 has gained 9.6% [3] - The current Zacks Rank for Intellinetics is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $4.81 million, and for the current fiscal year, it is -$0.53 on revenues of $18.1 million [7] - The trend of estimate revisions for Intellinetics was unfavorable prior to the earnings release [6] Industry Context - The Internet - Content industry, to which Intellinetics belongs, is currently in the bottom 20% of the Zacks Industry Rank, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 decreased by 13.6% to $4 million compared to $4.6 million in Q2 2024 [13] - SaaS revenue grew by 12.6% to $1.6 million from $1.4 million year-over-year, driven by early payables automation successes [13] - Professional services revenue decreased by 29% to $1.9 million from $2.7 million in the same period last year [14] - Net loss for Q2 was $568,000 compared to net income of $75,000 in Q2 2024, with loss per share at $0.13 [16] - Adjusted EBITDA was $28,000 compared to $698,000 for the same period in 2024 [17] Business Line Data and Key Metrics Changes - SaaS revenue, including hosting, showed growth of 12.6% [13] - Software maintenance services revenue decreased by 6.6% [14] - Professional services revenue constituted 49% of total revenue for the quarter, down from 56% last year [14] - Consolidated gross margin increased by 328 basis points to 68% [15] Market Data and Key Metrics Changes - Key vertical markets such as construction and homebuilding faced challenges due to higher interest rates and tariffs, leading to longer sales cycles [8] - K-12 education sector is experiencing concerns due to cuts in public education, affecting sales timelines [8] Company Strategy and Development Direction - The company aims to expand sales through various channels and has rebuilt its backlog of orders to historical levels [6] - Investments in sales and marketing are prioritized to enhance customer lifecycle management [9] - The company is committed to leveraging AI across three core pillars: new features, marketing and customer support, and internal development efficiencies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about renewed customer activity and expects a strong fourth quarter [9] - The company anticipates SaaS revenue growth and positive adjusted EBITDA despite a projected decline in overall revenue for 2025 compared to 2024 [18] - Management believes in the strength of their competitive position and plans to reinvest cash flow into sales and development [39] Other Important Information - The company has successfully paid off $7.6 million in debt and earn-outs, positioning itself for growth investments [12] - The June 1 contract renewal with the largest customer includes price increases, which may improve margins [24] Q&A Session Summary Question: Should margins for professional services return to historic levels? - Management indicated that margins are expected to be a little better than historical levels due to the June 1 contract renewal [22][24] Question: How many customers in the homebuilder sector are live or paused? - Management reported that a high percentage of customers are live and moving aggressively towards go-live dates, with no dissatisfaction reported [26][27] Question: Expectations for SaaS growth moving forward? - Management acknowledged the 12.6% growth but expressed confidence in achieving better results, citing a strong pipeline and new product launches [28][29] Question: Progress in entering new verticals? - Management confirmed ongoing efforts to engage new partners and expand into new verticals, although progress has been slower than desired [34]

PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements.) Intellinetics' financial statements show decreased assets and liabilities, a widened net loss of $1.30 million, and a 9.7% revenue decline for H1 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $17.16 million, liabilities fell to $5.59 million due to debt repayment, and equity rose to $11.56 million Condensed Consolidated Balance Sheet Highlights (in USD) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $4,602,726 | $5,474,556 | ($871,830) | | Cash | $2,071,475 | $2,489,236 | ($417,761) | | **Total Assets** | **$17,158,385** | **$18,574,956** | **($1,416,571)** | | **Total Current Liabilities** | $4,678,795 | $6,597,773 | ($1,918,978) | | Notes payable - current | $0 | $1,297,448 | ($1,297,448) | | **Total Liabilities** | **$5,594,713** | **$7,943,201** | **($2,348,488)** | | **Total Stockholders' Equity** | **$11,563,672** | **$10,631,755** | **$931,917** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw a net loss of $567,590 on 13.6% lower revenues, while H1 2025 net loss widened to $1.30 million with a 9.7% revenue drop Three Months Ended June 30, Performance (in USD) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4,010,813 | $4,641,593 | -13.6% | | Gross Profit | $2,726,557 | $3,002,979 | -9.2% | | (Loss) Income from Operations | ($508,478) | $172,106 | -395.4% | | Net (Loss) Income | ($567,590) | $75,050 | -856.3% | | Diluted EPS | ($0.13) | $0.02 | -750.0% | Six Months Ended June 30, Performance (in USD) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $8,258,158 | $9,148,677 | -9.7% | | Gross Profit | $5,595,757 | $5,902,623 | -5.2% | | (Loss) Income from Operations | ($1,193,037) | $137,626 | -966.9% | | Net (Loss) Income | ($1,295,155) | ($99,664) | -1200.0% | | Diluted EPS | ($0.31) | ($0.02) | -1450.0% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 operating cash flow significantly decreased to $112,521, leading to an overall cash decrease of $417,761 Six Months Ended June 30, Cash Flow Summary (in USD) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $112,521 | $1,788,381 | | Net cash used in investing activities | ($471,904) | ($398,766) | | Net cash used in financing activities | ($58,378) | ($924,194) | | **Net (decrease) increase in cash** | **($417,761)** | **$465,421** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment operations, accounting policies, significant customer concentration, and the full repayment of all outstanding notes payable - The company operates through two reporting segments: Document Management (software solutions) and Document Conversion (services to convert documents, primarily paper to digital)[24](index=24&type=chunk) - All outstanding notes payable to both unrelated and related parties were fully prepaid on June 18, 2025[64](index=64&type=chunk)[67](index=67&type=chunk) - The company has significant customer concentration risk, with the **State of Michigan accounting for 40% of total revenues** for the six months ended June 30, 2025, and 45% for the same period in 2024[83](index=83&type=chunk) Segment Revenue and Gross Profit (Six Months Ended June 30) | Segment | Revenue 2025 | Revenue 2024 | Gross Profit 2025 | Gross Profit 2024 | | :--- | :--- | :--- | :--- | :--- | | Document Management | $3,961,838 | $3,679,508 | $3,414,744 | $3,175,430 | | Document Conversion | $4,296,320 | $5,469,169 | $2,181,013 | $2,727,193 | | **Total** | **$8,258,158** | **$9,148,677** | **$5,595,757** | **$5,902,623** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses H1 2025 revenue decline due to customer volume and sales cycles, increased operating expenses, and debt repayment [Executive Overview of Results](index=25&type=section&id=Executive%20Overview%20of%20Results) H1 2025 revenues decreased 9.7% to $8.26 million, with SaaS growth offset by a $1.30 million net loss due to volume and sales cycle issues - Revenue decline was caused by a temporary volume reduction in the document conversion segment before a major contract renewal and longer sales lead times in the document management segment due to economic uncertainty[94](index=94&type=chunk) Key Financial Results for Six-Month Period 2025 | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | Revenues | $8,258,158 | -9.7% | | SaaS Revenues | $3,119,273 | +11.2% | | Cost of Revenues | $2,662,401 | -18.0% | | Operating Expenses | $6,788,794 | +17.8% | | Loss from Operations | ($1,193,037) | N/A (vs. income of $137,626) | | Net Loss | ($1,295,155) | N/A (vs. loss of $99,664) | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) H1 2025 revenues declined 9.7% due to professional services, offset by SaaS growth, while gross profit margin improved and operating expenses rose - **SaaS revenues increased by 11.2%** in H1 2025 compared to H1 2024, primarily due to new payables automation customers[102](index=102&type=chunk) - Professional services revenues decreased by **21.4%** in H1 2025, mainly from reduced scanning projects in the Document Conversion segment related to the timing of a contract renewal with its largest customer[103](index=103&type=chunk) - Overall gross profit percentage increased from **64.5% in H1 2024 to 67.8% in H1 2025**, attributed to a favorable revenue mix with a higher proportion of high-margin SaaS revenue[107](index=107&type=chunk) - Operating expenses rose due to investments in scaling, including expanded SOC2 processes, a larger development team, and an expanded sales team[112](index=112&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company holds $2.1 million in cash, fully repaid debt in June 2025, and believes current capital resources are sufficient for 12 months - The company had **$2.1 million in cash and cash equivalents** as of June 30, 2025[120](index=120&type=chunk) - All outstanding notes payable were repaid in full on June 18, 2025[122](index=122&type=chunk) - The company initiated an 'at-the-market' (ATM) offering program, with approximately **$8.2 million remaining available** as of the filing date[121](index=121&type=chunk) - Net cash provided by operating activities for H1 2025 was **$112,521**, a significant decrease from $1,788,381 in H1 2024[124](index=124&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section is not applicable as Intellinetics, Inc. is classified as a smaller reporting company - Not applicable to smaller reporting companies[129](index=129&type=chunk) [Controls and Procedures](index=29&type=section&id=ITEM%204.%20Controls%20and%20Procedures.) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[131](index=131&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[133](index=133&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=ITEM%201.%20Legal%20Proceedings.) The company reported no legal proceedings during the period - None[136](index=136&type=chunk) [Risk Factors](index=30&type=section&id=ITEM%201A.%20Risk%20Factors.) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - There have been no material changes to the risk factors from the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reported no unregistered sales of equity securities during the period - None[138](index=138&type=chunk) [Other Information](index=30&type=section&id=ITEM%205.%20Other%20Information.) No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter[141](index=141&type=chunk) [Exhibits](index=30&type=section&id=ITEM%206.%20Exhibits.) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including the At the Market Offering Agreement, the contract with the State of Michigan, and various officer certifications