Intellinetics, Inc. (NYSE:INLX) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET Company Participants Tom Baumann – FNK IR Jim DeSocio – President and Chief Executive Officer Joe Spain – Chief Financial Officer Conference Call Participants Howard Halpern – Taglich Operator Good day, ladies and gentlemen, and welcome to the Intellinetics’ First Quarter 2023 Earnings Call. At this time all participants are in a listen-only mode and the floor will be opened for questions and comments following the pres ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________to _________________________ | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | C ...

Intellinetics, Inc. (NYSE:INLX) Q4 2022 Earnings Conference Call March 27, 2023 4:30 PM ET Company Participants Tom Baumann - IR Joe Spain - Chief Financial Officer Jim DeSocio - President and Chief Executive Officer Conference Call Participants Howard Halpern - Taglich Brothers Operator Hello and welcome to the Intellinetics Fourth Quarter and Full Year 2022 Earnings Conference Call and Webcast. [Operator Instructions]. A question-and-answer session will follow the formal presentation. As a reminder, this ...

Client Dependence - The company's two largest clients accounted for approximately 38% and 6% of total revenues for the year ended December 31, 2022, and 47% and 9% for 2021, indicating a significant reliance on a limited number of customers [86]. - Government contracts represented approximately 77% and 72% of net revenues for the years ended December 31, 2022, and 2021, respectively, highlighting the importance of government business [86]. Revenue Recognition and Financial Impact - Revenue recognition from subscription agreements occurs ratably over typically one-year terms, meaning a decline in new or renewed subscriptions may not be immediately reflected in current revenue [87]. - The company faces risks related to early termination and audits of government contracts, which could materially affect revenues [88]. - Global economic conditions, including anticipated recession and inflation, are likely to adversely affect the company's operating results and financial markets [108]. - Market fluctuations and external financial developments may adversely affect the company's ability to raise capital and access credit [109]. Compliance and Regulatory Risks - Compliance with federal securities laws results in higher expenses compared to privately held companies, impacting resource allocation for growth [89]. - The company must comply with NYSE American listing requirements, and failure to do so could result in delisting, limiting trading and capital-raising opportunities [100]. - The company is subject to FINRA sales practice requirements, which may limit shareholders' ability to buy and sell its stock [105]. Operational Risks - Security breaches could lead to loss of confidential information and significant liabilities, affecting the company's reputation and business [91]. - The company is subject to increased scrutiny and potential liabilities related to data privacy and security, which could impact operations [92]. - The company is vulnerable to disruptions at third-party data centers, which could lead to service interruptions and harm its business reputation [110]. - The company expects to experience interruptions in service and availability from time to time due to reliance on third-party data centers [110]. Financial Management and Shareholder Impact - Future financing may dilute existing shareholders' ownership if additional securities are issued [97]. - The common stock is expected to experience significant price volatility, which may lead to losses for stockholders [104]. - The company does not anticipate paying any cash dividends in the foreseeable future, as it plans to retain earnings for operational expansion [107]. Human Resources and Talent Management - Recruitment and retention of key personnel are critical for the company's success, with intense competition for top talent in the current labor market [115]. Intellectual Property and Competitive Position - The company faces risks related to the protection of its intellectual property, which is essential for maintaining its competitive position [118]. Infrastructure and Product Reliability - The company relies on the stability of infrastructure software, and weaknesses in this area could negatively impact product effectiveness and reliability [116].

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 increased by 22% to $3.9 million compared to $3.2 million in Q3 2021 [13] - Adjusted EBITDA for Q3 2022 was $790,000, up 48% from Q3 2021, marking the eleventh consecutive positive quarter [12][19] - Net income for Q3 2022 was $218,000, a decrease from $296,000 in the same period last year, primarily due to increased interest expenses [17][18] Business Line Data and Key Metrics Changes - SaaS revenue grew 244% year-over-year, with organic growth at 42% [5][14] - Recurring revenue, including SaaS and software maintenance services, increased by 127% to $1.5 million [14] - Professional services revenue decreased by 7% to $2 million, representing 52% of total revenue compared to 68% in Q3 2021 [15] Market Data and Key Metrics Changes - The K-12 operations now serve over 530 districts, significantly increasing SaaS revenue and doubling the company's presence in this vertical market since the Yellow Folder acquisition [8] - Yellow Folder contributed $710,000 to the revenue increase, indicating strong performance in the K-12 sector [14] Company Strategy and Development Direction - The company is focused on cross-selling services and expanding into new markets, supported by investments in sales and marketing [7] - The acquisition of Yellow Folder is seen as a strategic move to enhance recurring SaaS revenue and EBITDA [9][12] - The company aims to broaden its product portfolio and addressable markets, particularly through the adoption of the new IPAS solution [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, highlighting a strong pipeline and successful integration of Yellow Folder [5][12] - The company expects to continue growing revenues and adjusted EBITDA on a year-over-year basis [22] - Management emphasized the shift towards a more predictable SaaS model as a key driver for sustainable profitability [25] Other Important Information - The company had cash of $3.8 million and total assets of $20.8 million as of September 30, 2022 [21] - Total liabilities were $12.5 million, including $5 million in debt principal [21] Q&A Session Summary Question: What is the visibility for internal growth in 2023? - Management did not provide specific forward-looking visibility but expressed bullish sentiments for continued growth in 2023 [27] Question: Can you provide more details on IPAS? - IPAS is an accounts payable automation solution that significantly reduces headcount requirements and improves processing efficiency, with successful collaborations with Constellation Software [29][30]

Intellinetics, Inc. (NYSE:INLX) Q2 2022 Earnings Conference Call August 15, 2022 4:30 PM ET Company Participants Joe Spain - Chief Financial Officer Jim DeSocio - President and Chief Executive Officer Conference Call Participants Howard Halpern - Taglich Brothers Joe Spain Thank you and good afternoon everyone. My name is Joe Spain and I am the Chief Financial Officer for Intellinetics, Inc. I am pleased to welcome you to our 2022 Second Quarter Conference Call. Before we begin, I would like to remind liste ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________to _________________________ Commission file number: 000-31671 INTELLINETICS, INC. (Exact name of registrant as specified in its charter) Nev ...

Financial Data and Key Metrics Changes - Revenue for Q1 2022 increased by 3% to $2.7 million compared to $2.6 million in Q1 2021 [11] - Adjusted EBITDA for Q1 2022 was $421,000, up 18% from $356,000 in Q1 2021, marking the ninth consecutive positive quarter [9][18] - Net loss for Q1 2022 was $20,000, a significant improvement from a net income of $843,000 in the same period last year [17] Business Line Data and Key Metrics Changes - SaaS revenue grew by 33% year-over-year, contributing to a total of 29% of total revenues after the acquisition of Yellow Folder [4][7] - Recurring revenue, including SaaS, increased by 16% to $768,000, while professional services revenue decreased by 4% to $1.6 million [12][13] - Software revenue increased by 572% to $64,000, reflecting the industry's shift towards cloud solutions [11] Market Data and Key Metrics Changes - The company closed 154 contracts year-to-date in 2022, an 18% increase from 131 contracts in the same period last year, with an estimated total contract value of $3.9 million, up 150% [5] - The acquisition of Yellow Folder added 240 K-12 customers, increasing the total customer base in this market to 500 [6] Company Strategy and Development Direction - The company is focused on expanding its marketing efforts and sales team, which has resulted in increased leads and a stronger sales pipeline [4][10] - The integration of Yellow Folder is seen as a positive move, with expectations for cross-selling opportunities and enhanced EBITDA from high-margin business [7][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that Q1 2022 would be the low point for the year, with signs of improvement in the operating environment [22] - The company remains bullish on future growth, citing strong sales activity and lead generation as indicators of positive momentum [10][27] Other Important Information - Operating expenses increased to $1.54 million, primarily due to transaction costs related to the acquisition of Yellow Folder [15] - The company has maintained control over salary pressures for new hires despite a tight labor market [24] Q&A Session Summary Question: Are there signs that the headwinds from Michigan are starting to abate? - Management confirmed that the first quarter is expected to be the lowest point for the year and noted improvements in the operating environment [22] Question: How is the integration of Yellow Folder going? - Management reported no surprises in the integration process and highlighted the start of building a joint pipeline and campaigns into the Yellow Folder customer base [23] Question: Are there salary pressures for new hires? - Management indicated that they have been able to keep salary pressures under control, although hiring has been slower [24]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________to _________________________ Commission file number: 000-31671 INTELLINETICS, INC. (Exact name of registrant as specified in its charter) Ne ...

Revenue Sources and Risks - The company's two largest clients accounted for approximately 47% and 9% of total revenues for the year ending December 31, 2021, with government contracts representing about 62% of net revenues[87]. - A significant portion of revenues comes from government contracts, which are subject to early termination and funding authorizations, posing risks to financial stability[89]. - Revenue recognition from subscription agreements is ratable over typically one-year terms, meaning a decline in new subscriptions may not be immediately reflected in current revenue[88]. - The company anticipates that adverse economic conditions may lead to delayed or reduced technology purchases by customers[111]. - Any disruptions in service at data centers could lead to revenue reductions and potential customer terminations[117]. Legal and Compliance Risks - Compliance with federal securities laws results in higher expenses compared to privately held companies, impacting resource allocation for growth[90]. - The company may face substantial expenditures due to indemnification obligations for directors and officers, potentially discouraging legal actions against them[91]. - The company is subject to increased litigation risks, which could materially adversely affect its financial condition and operating results[97]. - Claims of intellectual property infringement could lead to increased costs and harm future revenue generation capabilities[98]. Operational Risks - Security breaches could lead to loss of confidential information and significant liabilities, affecting the company's reputation and business operations[92]. - The company is vulnerable to disruptions at third-party data centers, which could harm its business and affect service availability[113]. - The company may incur significant costs and service interruptions if it cannot renew agreements with data center owners on commercially reasonable terms[115]. - The company faces risks related to the recruitment and retention of key personnel, which is critical for its competitive position[118]. - The company relies on the stability of infrastructure software, and weaknesses in this area could negatively impact its products and reputation[119]. Financial Position and Shareholder Impact - 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[110]. - The company may need to issue additional securities, which could dilute existing shareholders' ownership and affect stock value[99]. - The common stock is quoted on the OTCQB, leading to limited trading and higher volatility, which may not reflect the actual value of the stock[102]. - The company is subject to loan covenants that may restrict its ability to pay dividends until certain loans are repaid[110]. Economic Conditions - Global economic conditions, including uncertainty and inflation, are likely to adversely affect the company's operating results and financing[111].