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].

Intellinetics, Inc. (NYSE:INLX) Q3 2022 Results Conference Call November 14, 2022 4:30 PM ET Company Participants Tom Baumann - IR Joe Spain - Chief Financial Officer Jim DeSocio - President and Chief Executive Officer Tom Baumann Good afternoon, everyone. My name is Tom Baumann from FNK IR, and we were recently retained by Intellinetics. I am pleased to welcome you to Intellinetics 2022 Third Quarter Conference Call. Before we begin, I would like to remind listeners that during this conference call, commen ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2022 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q For the transition period from _____________________to _________________________ (Mark One) INTELLINETICS, INC. (Exact name of registrant as specified in its charter) Nevada 87-0613716 (State or Othe ...

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].

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 increased by 26% to $3.2 million compared to $2.5 million in Q3 2020 [18] - Adjusted EBITDA for Q3 2021 was $538,000, marking the sixth consecutive positive quarter and exceeding $300,000 for the fifth consecutive quarter [12][30] - Net income for Q3 2021 was $296,000, up from $156,000 in the same period last year [30] Business Line Data and Key Metrics Changes - Software revenue increased by 9% to $59,000 in Q3 2021 from $54,000 in Q3 2020 [20] - Recurring revenue, which includes SaaS and software maintenance, grew by 11% to $689,000 from $622,000 year-over-year, with SaaS growing at 25% [21][22] - Professional services revenue surged by 34% to $2.2 million, accounting for 68% of total revenue, up from 64% in the same period last year [24] Market Data and Key Metrics Changes - Storage and retrieval services revenue increased by 17% to $259,000 in Q3 2021 compared to $220,000 in Q3 2020 [26] - The company noted a shift in customer preferences from on-premise solutions to cloud solutions, impacting software maintenance revenue negatively by 1% [22] Company Strategy and Development Direction - The company has transitioned to a new warehouse facility in Michigan, increasing capacity while maintaining operating costs [8] - Plans to expand the sales team and enhance marketing initiatives to support growth in key markets and verticals [10] - The business process outsourcing (BPO) service is expected to provide a recurring revenue stream and is a focus for future growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, highlighting a strong pipeline and the ability to meet sales goals for six consecutive quarters [17] - The management team is focused on filling backlogs and ensuring continuous revenue flow from existing and new projects [39] - The company maintains its prior guidance for 2021, expecting to build on positive adjusted EBITDA while driving revenue growth [32] Other Important Information - The company has successfully integrated acquisitions made in early 2020, contributing to revenue stability and growth [12] - Operating expenses increased by 24% to $1.5 million, reflecting higher revenue and expanded sales and marketing efforts [28] Q&A Session Summary Question: Were there any one-time projects that boosted professional services revenue? - Management indicated that while there are always one-time projects, the majority of professional services revenue comes from ongoing contracts, particularly in document conversion [35][36] Question: What are the hiring plans for the sales team? - The company is actively hiring, with plans to add more sales representatives in the coming months to support growth and cross-selling initiatives [40][41] Question: What impact has the new Director of Marketing had on operations? - The Director has successfully integrated the company's websites and is ramping up marketing campaigns, leading to increased website traffic and service inquiries [43][44] Question: What is the pipeline for SaaS in school districts? - The company has a strong partnership with Software Unlimited, which continues to deliver new customers, contributing significantly to revenue [45][46] Question: How much revenue is anticipated from existing customers through cross-selling? - Management expects a meaningful amount of revenue from existing customers, although specific quantifiable numbers were not provided [49]