Financial Data and Key Metrics Changes - Total revenue for Q1 2025 decreased by 5.8% to $4.2 million compared to $4.5 million in the same period last year [11] - SaaS revenue grew by 9.8% to $1.5 million, driven by early successes in payables automation [11] - Professional services revenue decreased by 13.2% to $2.2 million, accounting for 51% of total revenue compared to 55% last year [12] - Consolidated gross margin increased by 322 basis points to 67.6% due to a better revenue mix and improved SaaS margins [12] - Net loss for Q1 was $728,000 compared to a net loss of $175,000 in the same period last year [13] - Adjusted EBITDA for the quarter was $77,000, down from $673,000 in Q1 2024 [14] Business Line Data and Key Metrics Changes - SaaS revenue, including hosting, showed growth while professional services experienced a decline [11][12] - The company closed multiple orders with partners, indicating a strong pipeline for SaaS products [5][9] Market Data and Key Metrics Changes - The company noted a significant order intake week with over $2.4 million in new project contracts, expected to be recognized over the next six to seven months [9] - Recent political events and economic conditions, such as high interest rates in the building industry, have created some uncertainty but are expected to improve [10][25] Company Strategy and Development Direction - The company is focusing on transforming into a predominantly SaaS-driven business with a diverse suite of solutions [6] - Investments in sales and marketing, as well as IT infrastructure, are aimed at accelerating growth and enhancing customer trust [8] - The company plans to continue scaling its business and enhancing development capabilities to bring new features to market more quickly [6][8] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strong competitive position and growth opportunities in the market [35] - The company expects to grow revenues year-over-year for fiscal 2025, particularly in SaaS, while maintaining positive adjusted EBITDA [17] Other Important Information - The company has paused aggressive debt prepayments to focus on sales and marketing initiatives [15] - A shelf registration was filed to strengthen the balance sheet and enable quick capital actions [16] Q&A Session Summary Question: How many implementations will you have and what would those mean in terms of annual recurring revenue? - The company expects to have about 22 to 23 customers using the SaaS product [20] Question: How is the implementation of purchase orders progressing? - The first release of payables order was launched in April, with positive initial feedback [21][22] Question: Are there any customer hesitations regarding implementation timing? - Hesitations are more related to market conditions rather than the company's products [24][25] Question: Are the new orders in professional services stable in terms of margin opportunities? - The company has a strong backlog with over $3 million of work queued, which should help restore historical performance levels [27] Question: Is the company still serving over 600 K-12 customers? - Yes, the company has launched new products in the K-12 market and is seeing positive growth [28][30]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 decreased by 5.8% to $4.2 million compared to $4.5 million in the same period last year [11] - SaaS revenue grew by 9.8% to $1.5 million, driven by early successes in payables automation [11] - Professional services revenue decreased by 13.2% to $2.2 million, accounting for 51% of total revenue compared to 55% last year [12] - Net loss for Q1 was $728,000, compared to a net loss of $175,000 for the same period last year [13] - Adjusted EBITDA for the quarter was $77,000, down from $673,000 in Q1 2024 [14] Business Line Data and Key Metrics Changes - SaaS revenue increased due to payables automation, while professional services revenue declined due to timing issues [11][12] - The gross margin percentage increased to 67.6%, driven by a better revenue mix and improved SaaS margins [12][13] Market Data and Key Metrics Changes - The company experienced a record-breaking week with over $2.4 million in new project contracts, indicating strong demand from state agencies and commercial clients [9] - Recent political events have created uncertainty, but management is optimistic about future demand for their products and services [10] Company Strategy and Development Direction - The company is focusing on transforming into a predominantly SaaS-driven business with a diverse suite of solutions [5] - Investments are being made in sales and marketing, as well as IT infrastructure, to enhance customer trust and cybersecurity [7] - The company plans to continue scaling its business and expects to see returns on these investments in late 2025 and beyond [7][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges headwinds in the building industry due to high interest rates and tariffs but remains optimistic about future growth [23] - The company expects to grow revenues year-over-year for fiscal 2025, particularly in SaaS revenues, while maintaining positive adjusted EBITDA [16] Other Important Information - The company has temporarily paused aggressive debt prepayments to focus on sales and marketing initiatives [15] - A shelf registration has been filed to strengthen the balance sheet and act quickly on market opportunities [15] Q&A Session Summary Question: How many implementations will you have and what would those mean in terms of annual recurring revenue? - The company will have about 22 to 23 customers using the SaaS product for payables automation [19] Question: How is the implementation of purchase orders progressing? - The first release of payables order was launched in April, with positive initial feedback [20][21] Question: Are there any customer hesitations regarding implementation timing? - Hesitation is more related to market conditions rather than the company's product [23] Question: Are the new orders in professional services stable in terms of margin opportunities? - Yes, the company has a strong backlog with over $3 million of work queued [27] Question: Does the company still serve over 600 K-12 customers? - Yes, the company has launched new products in the K-12 market and is seeing good growth [28][29]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Intellinetics' Q1 2025 revenue fell 5.8% to $4.25 million, leading to increased net loss and reduced Adjusted EBITDA amid strategic investments Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $4,247,345 | $4,507,084 | -5.8% | | SaaS Revenue | $1,542,169 | $1,405,153 | +9.8% | | Professional Services Revenue | $2,158,315 | $2,485,457 | -13.2% | | Net Loss | ($727,565) | ($174,714) | Increased Loss | | Adjusted EBITDA | $76,589 | $673,362 | -88.6% | - The company is strategically investing in sales, marketing, and IT infrastructure to scale the business and accelerate its transformation into a predominantly SaaS-driven company[4](index=4&type=chunk) - Key operational achievements include the launch of an initial Purchase Order feature set for its Payables Automation partner and a **50% quarterly increase** in live reference accounts for the IntelliCloud Payables Automation solution[4](index=4&type=chunk)[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO DeSocio emphasized strategic investments in sales and marketing to scale SaaS, anticipating professional services rebound and long-term SaaS growth via ERP partnerships - The company is investing to scale its business and transition to a SaaS-driven model, supported by the launch of a new purchase order feature for its key Payables Automation partner[4](index=4&type=chunk) - Recent hires include a Sales Engineer, Senior Solutions Consultant, and a new VP of Sales to develop and direct the growing sales team[4](index=4&type=chunk) - Professional services revenue is expected to rebound, with a significant increase in the order backlog indicating a return to historical scanning levels[5](index=5&type=chunk) - The core long-term strategy is to grow the SaaS business by penetrating the customer bases of strategic ERP partners[6](index=6&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Summary%20%E2%80%93%202025%20First%20Quarter%20Results) Q1 2025 revenues fell 5.8% to $4.25 million, driven by professional services decline, while operating expenses rose 21.1% from investments, leading to a wider net loss Q1 2025 vs Q1 2024 Revenue Performance | Revenue Stream | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | SaaS Revenue | $1,542,169 | $1,405,153 | +9.8% | | Professional Services | $2,158,315 | $2,485,457 | -13.2% | | **Total Revenues** | **$4,247,345** | **$4,507,084** | **-5.8%** | - Total operating expenses increased **21.1%** to **$3.55 million**, driven by initiatives in sales, marketing, and enhancements to the IT and control environment (SOC2)[9](index=9&type=chunk) Q1 2025 vs Q1 2024 Profitability | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss from Operations | ($684,559) | ($34,480) | | Net Loss | ($727,565) | ($174,714) | | Net Loss Per Share | ($0.17) | ($0.04) | [2025 Outlook](index=3&type=section&id=2025%20Outlook) Management expects FY2025 revenue growth, primarily from SaaS, with positive Adjusted EBITDA, though reduced by over half due to heavy sales and marketing investments - The company expects to grow revenues on a year-over-year basis for fiscal year 2025, with a particular focus on growing SaaS revenues[11](index=11&type=chunk) - Adjusted EBITDA is expected to remain positive for 2025 but will be reduced by **more than half** compared to fiscal 2024 due to increased investments in sales and marketing[11](index=11&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, is used to compare core operating performance, calculated by adjusting net income for interest, taxes, depreciation, amortization, and share-based compensation Reconciliation of Net Loss to Adjusted EBITDA | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net (loss) income - GAAP | $(727,565) | $(174,714) | | Interest expense, net | $43,006 | $140,234 | | Depreciation and amortization | $307,685 | $264,010 | | Share-based compensation | $453,463 | $443,832 | | **Adjusted EBITDA** | **$76,589** | **$673,362** | - Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization, share-based compensation, and other specific transaction-related costs[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements for Q1 2025, including the Statement of Operations, Balance Sheet, and Statement of Cash Flows [Statement of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total revenues were $4.25 million, with gross profit flat, but a 50% rise in sales and marketing costs led to a $684,559 operating loss and a $727,565 net loss Condensed Consolidated Statement of Operations (unaudited) | For the Three Months Ended March 31, | 2025 | 2024 | | :--- | :--- | :--- | | Total revenues | $4,247,345 | $4,507,084 | | Gross profit | $2,869,200 | $2,899,644 | | Total operating expenses | $3,553,759 | $2,934,124 | | Loss from operations | $(684,559) | $(34,480) | | Net loss | $(727,565) | $(174,714) | | Basic and Diluted net loss per share | $(0.17) | $(0.04) | [Balance Sheet](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $17.96 million, cash $2.14 million, total liabilities $7.61 million, and total stockholders' equity $10.36 million Key Balance Sheet Items | As of | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $2,138,243 | $2,489,236 | | Total current assets | $5,124,278 | $5,474,556 | | Total assets | $17,964,014 | $18,574,956 | | Total current liabilities | $6,458,701 | $6,597,773 | | Total liabilities | $7,606,373 | $7,943,201 | | Total stockholders' equity | $10,357,641 | $10,631,755 | [Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 experienced a net cash outflow from operating activities of $110,353, a shift from prior year's inflow due to higher net loss, decreasing cash by $350,993 Key Cash Flow Items | For the Three Months Ended March 31, | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(110,353) | $611,766 | | Net cash used in investing activities | $(223,934) | $(127,932) | | Net cash used in financing activities | $(16,706) | $(514,138) | | **Net decrease in cash** | **$(350,993)** | **$(30,304)** | | **Cash - end of period** | **$2,138,243** | **$1,184,944** |

Revenue Performance - Total revenues for Q1 2025 were $4,247,345, a decrease of 5.8% year over year from $4,507,084 in Q1 2024[92] - SaaS revenue increased to $1,542,169, reflecting a growth of 9.8% year over year[92] - Professional services revenue decreased by 13.2% to $2,158,315, primarily due to reduced project work[96] - Document Management segment revenue was $1,961,312, while Document Conversion segment revenue was $2,286,033[93] Profitability Metrics - Gross profit percentage improved to 67.6%, up from 64.3% in Q1 2024[92] - Total gross profit for Q1 2025 was $2,869,200, a slight decrease from $2,899,644 in Q1 2024, with a gross profit percentage increase to 67.6% from 64.3%[100][1] - Gross profit from Software as a Service (SaaS) increased to $1,327,040 in Q1 2025, up from $1,189,161 in Q1 2024, with a gross margin of 86.1% compared to 84.6%[1][101] - Cost of Professional Services decreased by $249,122, or 19.3%, in Q1 2025, leading to an increase in gross margin to 51.8% from 48.1% in Q1 2024[102] Operating Expenses - Operating expenses rose by 21.1% to $3,553,759, driven by increased sales and marketing initiatives[92] - Operating expenses rose to $3,553,759 in Q1 2025, up from $2,934,124 in Q1 2024, with General and Administrative expenses increasing by 14.3%[103][104] - Sales and marketing expenses surged by $272,419, or 50.3%, in Q1 2025, driven by the expansion of the sales team[105] Losses and Financial Position - Loss from operations was $684,559, compared to a loss of $34,480 in Q1 2024[92] - Net loss for Q1 2025 was $727,565, with a net loss per share of $0.17, compared to a net loss of $174,714 and $0.04 per share in Q1 2024[92] - Cash and cash equivalents stood at $2.1 million as of March 31, 2025, with a working capital deficit of $1.3 million[110] - Net cash used in operating activities was $110,353 in Q1 2025, compared to net cash provided of $611,766 in Q1 2024[115] Capital Expenditures and Financing - Capital expenditures totaled $223,934, including $102,854 in capitalized software costs, compared to $127,932 in Q1 2024[92] - Interest expense decreased by $97,228, or 69.3%, to $43,006 in Q1 2025, due to early principal repayments of the 2022 Notes[107] - The company plans to seek additional debt or equity financing on acceptable terms to meet future capital needs[112] Customer Contracts - The company secured a renewal contract with its largest customer effective from October 1, 2023, with an estimated net rate increase of approximately 21%[109]

Company Overview - Intellinetics, Inc. (INLX) shares increased by 11% to close at $14.47, with notable trading volume compared to typical sessions, contrasting with a 1.4% loss over the past four weeks [1] - The company is experiencing strong growth in its Payables Automation Solution and is expanding into new markets such as K-12, while also investing in sales and marketing for future revenue growth [1] Financial Performance - Intellinetics is expected to report a quarterly loss of $0.07 per share, reflecting a year-over-year decline of 75%, with revenues projected at $4.6 million, a 2% increase from the previous year [2] - The consensus EPS estimate for Intellinetics has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Intellinetics operates within the Zacks Internet - Content industry, where Perion Network (PERI) is another player, having closed at $9.22 with a 0.1% decrease in the last trading session and a 30.4% return over the past month [3] - Perion Network's consensus EPS estimate has also remained unchanged at $0.09, representing a 79.6% decline from the previous year, and it holds a Zacks Rank of 3 (Hold) [4]

Company Overview - Intellinetics, Inc. (INLX) shares increased by 14.5% to close at $14.21, driven by notable trading volume and a 5.5% gain over the past four weeks [1] - The company is experiencing growth in SaaS revenue due to strong performance and customer acceptance of its Payables Automation Solution [1] Financial Performance - Intellinetics is expected to report a quarterly loss of $0.07 per share, reflecting a year-over-year decline of 75%, with revenues projected at $4.6 million, a 2% increase from the previous year [2] - The consensus EPS estimate for Intellinetics has remained unchanged over the last 30 days, indicating a lack of upward earnings estimate revisions [3] Market Position - Intellinetics holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] - In the same industry, Opera Limited (OPRA) has a Zacks Rank of 1 (Strong Buy) and reported a 1.3% increase in its stock price, although it has seen a -9.4% return over the past month [3][4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $4.3 million compared to $4.2 million in the same period last year [19] - SaaS revenue, including hosting, rose by 11.8% to $1.5 million from $1.3 million year-over-year, driven by early successes in payables automation [20] - Consolidated gross margin increased by 88 basis points to 65.8% for Q4 2024, compared to 64.9% last year [22] - Full year total revenue for 2024 increased by 6.7% to $18 million from $16.9 million in 2023 [25] - Full year net loss was $546,000 compared to net income of $519,000 last year [27] Business Line Data and Key Metrics Changes - Professional services revenue was flat at $2.2 million for Q4 2024, while year-to-date, it delivered 8.9% growth, reaching a record $10 million compared to $9.2 million last year [21][25] - SaaS revenue for the full year increased by 10.8%, contributing to improved margins [25] Market Data and Key Metrics Changes - The K-12 market is expanding quickly, with two additional Iowa school districts engaged after a pilot program [12] - The company is also targeting local governments and municipalities as potential new verticals for its solutions [46] Company Strategy and Development Direction - The company is transitioning to a predominantly SaaS-driven model, focusing on digital transformation solutions [7] - Investments are being made in sales and marketing to accelerate growth, with a focus on hiring more sales representatives and enhancing marketing efforts [17] - The launch of a complementary purchase order solution is expected to expand the customer base and increase transaction volume [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the payables automation solution as a key growth driver, highlighting high customer acceptance and significant ROI [8][9] - The company anticipates revenue growth for fiscal 2025, although EBITDA is expected to be reduced by more than half due to increased investments [31][32] Other Important Information - Cash flow from operating activities was $3.9 million, allowing the company to prepay $1.6 million of its debt [30] - The company has a strong balance sheet with total assets of $18.6 million and cash of $2.5 million as of December 31, 2024 [29] Q&A Session Summary Question: How many customers are live and what is the expectation for the second half of the year? - Management reported that two customers went live recently, with five more in the implementation process, indicating smooth transitions [36][38] Question: Is there any hesitation from customers regarding budget deployment? - Management noted that while some customers are cautious due to market conditions, the strong ROI from their solutions positions them well for sales [48][49] Question: Will SaaS line margins maintain above 85%? - Management indicated that while margins may fluctuate, they expect to maintain a mid-80s range due to the nature of customer engagements [50][52]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $4.3 million compared to $4.2 million in Q4 2023 [19] - SaaS revenue, including hosting, increased by 11.8% to $1.5 million for the quarter, driven by early payables automation successes [20] - Consolidated gross margin increased by 88 basis points to 65.8% for Q4 2024 compared to 64.9% in Q4 2023 [22] - Net loss for Q4 was $54,000, compared to net income of $62,000 for the same period last year [24] - Full year total revenue for 2024 increased by 6.7% to $18 million compared to $16.9 million in 2023 [25] - Full year adjusted EBITDA was $2.5 million, compared to $2.7 million for 2023 [28] Business Line Data and Key Metrics Changes - Professional services revenue was flat at $2.2 million for Q4 2024, accounting for 52% of total revenue, down from 53% last year [21] - SaaS revenue increased by 10.8% for the full year, while professional services revenue increased by 8.9% [25] Market Data and Key Metrics Changes - The K-12 market is growing quickly, with two additional Iowa school districts engaged after a pilot program [12] - The company is focusing on expanding into niche ERP providers and underserved markets, including county and local governments [46] Company Strategy and Development Direction - The company is transforming into a predominantly SaaS-driven business with a focus on digital transformation solutions [7] - Investments are being made in sales and marketing to accelerate growth, with a significant increase in sales and marketing expenses by 37% in Q4 2024 [23] - The company plans to enhance development capabilities and bring features to market more quickly [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Payables Automation Solution as a key growth driver, with high customer acceptance and significant ROI [8][9] - The company expects revenue growth for fiscal 2025, but anticipates EBITDA to be reduced by more than half due to increased investments [31][32] Other Important Information - Cash provided by operating activities was $3.9 million, allowing the company to prepay $1.6 million of its debt [30] - Total assets were $18.6 million, with total liabilities of $7.9 million as of December 31, 2024 [29] Q&A Session Summary Question: How many customers are live and how many are expected to go live in the second half of the year? - Majority of customers are in the process of implementation, with two going live recently and five more in progress [38] Question: Does the live customer count include the large customer mentioned in the last call? - Yes, that customer is included, and they are processing a significant number of invoices with minimal human intervention [40] Question: Are there any hesitations from customers regarding budget deployment? - Customers are cautious due to market conditions, but the company believes it is well-positioned to demonstrate ROI [48][49] Question: Will SaaS line margins maintain above 85%? - Margins are expected to fluctuate but should remain within the mid-80s range [50][52] Question: What verticals is the company looking to expand into? - The company is exploring opportunities in county and local governments, as well as other ERP players [46]

Revenue Performance - Total revenue for 2024 was $18,018,373, representing a 6.7% increase compared to $16,886,381 in 2023[9] - SaaS revenue grew by 11.8% year-over-year, reaching $5,688,936 in 2024[5] - Professional services revenue increased by 0.3% to $9,985,028 in 2024[4] - Total revenues for the twelve months ended December 31, 2024, increased to $18,018,373, up from $16,886,381 in 2023, representing a growth of approximately 6.7%[25] - Software as a Service (SaaS) revenues reached $5,688,936 for the twelve months ended December 31, 2024, compared to $5,133,215 in 2023, reflecting an increase of about 10.8%[25] - Total recurring revenues for the three months ended December 31, 2024, were $2,649,893, slightly up from $2,646,580 in the same period of 2023[21] Net Income and Loss - The company reported a net loss of $546,215, or ($0.13) per share, compared to a net income of $519,266, or $0.13 per share in 2023[9] - The company reported a net loss of $546,215 for the twelve months ended December 31, 2024, compared to a net income of $519,266 in 2023[25] Operating Expenses - Operating expenses increased by 23.7% to $11,698,431, driven by structural investments and share-based compensation[9] - Total operating expenses for Q4 2024 were $2,829,369, an increase of 11.4% compared to $2,540,565 in Q4 2023[7] - Operating expenses for the twelve months ended December 31, 2024, totaled $11,698,431, up from $9,456,486 in 2023, representing an increase of approximately 23.5%[25] Cash and Assets - Cash and cash equivalents at the end of the period increased to $2,489,236 from $1,215,248 in 2023, marking a significant increase of approximately 104.5%[27] - The company’s total assets decreased to $18,574,956 as of December 31, 2024, down from $19,026,260 in 2023, a decline of about 2.4%[23] Liabilities - The company’s total liabilities decreased to $7,943,201 as of December 31, 2024, down from $9,275,539 in 2023, a reduction of approximately 14.4%[23] Future Outlook - Management expects revenue growth for fiscal year 2025, but anticipates EBITDA to be reduced by more than half due to increased sales and marketing investments[10] - The Payables Automation SaaS solutions are expected to be the primary drivers of future SaaS growth, with live reference accounts increasing by 50% in the last quarter[5][11] Debt Management - The company made $1,625,000 in debt prepayments in 2024, leaving just over $1.3 million in debt[4] Share Information - The weighted average number of common shares outstanding for basic calculations was 4,201,401 for the twelve months ended December 31, 2024, compared to 4,074,194 in 2023[25] Deferred Revenues - Deferred revenues rose to $3,411,852 as of December 31, 2024, compared to $2,927,808 in 2023, indicating an increase of about 16.5%[23]

Revenue Recognition and Stability - The company recognizes revenue from subscription agreements ratably over typically one-year terms, leading to potential delays in reflecting downturns in operating results [87]. - A significant portion of the company's revenue is derived from government contracts, which are subject to early termination and audits, posing risks to revenue stability [88]. - The company does not expect to pay any dividends on its common stock for the foreseeable future, as it plans to retain earnings to maintain and expand operations [109]. Compliance and Legal Risks - Compliance with federal securities laws results in higher expenses compared to privately held companies, impacting resource allocation for growth initiatives [90]. - The company may incur substantial expenditures due to indemnification obligations for directors and officers, which could discourage legal actions against them [91]. - The company faces risks from potential litigation related to intellectual property claims, which could increase costs and harm future revenue generation [97]. Market and Stock Performance - The issuance of additional securities may dilute existing shareholders' ownership and affect the market value of common stock [98]. - The market price of the company's common stock may fluctuate significantly, leading to potential losses for shareholders [106]. - FINRA sales practice requirements may limit the ability of shareholders to buy and sell the company's stock, adversely affecting market conditions [107]. - The company must comply with NYSE American listing requirements, and failure to do so could result in delisting and reduced trading activity [102]. Operational Risks - Security breaches could lead to loss of confidential information and significant liabilities, adversely affecting the company's reputation and business [92]. - The company faces risks from potential disruptions at third-party data centers, which could harm business operations and customer satisfaction [112]. - Global economic uncertainty, including inflation and higher interest rates, may adversely impact the company's operating results and financing [110]. - The company’s IntelliCloud Payables Automation Solution is targeted at industries like home-building and construction, which may be negatively affected by new tariffs [110]. Human Resources and Competition - The company relies heavily on attracting and retaining top employees, with competition for skilled personnel being intense [115]. - The company is dependent on its ability to protect proprietary technology, with software piracy posing a persistent threat to revenue [116].