Advertisement
U.S. markets close in 3 hours 8 minutes
  • S&P 500

    5,250.68
    +2.19 (+0.04%)
     
  • Dow 30

    39,760.33
    +0.25 (+0.00%)
     
  • Nasdaq

    16,382.42
    -17.10 (-0.10%)
     
  • Russell 2000

    2,129.83
    +15.48 (+0.73%)
     
  • Crude Oil

    82.84
    +1.49 (+1.83%)
     
  • Gold

    2,245.20
    +32.50 (+1.47%)
     
  • Silver

    25.02
    +0.27 (+1.08%)
     
  • EUR/USD

    1.0805
    -0.0025 (-0.23%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • GBP/USD

    1.2641
    +0.0003 (+0.03%)
     
  • USD/JPY

    151.2950
    +0.0490 (+0.03%)
     
  • Bitcoin USD

    70,763.02
    +1,698.31 (+2.46%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Intellinetics Grows Revenue 22%

Intellinetics, Inc.
Intellinetics, Inc.

SaaS Revenue Increases 244%,
Reflecting Successful Acquisition and Transition to SaaS Model

COLUMBUS, OH, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, announced financial results for the three and nine months ended September 30, 2022.

2022 Third Quarter Financial Highlights

  • Total Revenue increased 22% from the same period in 2021.

  • Software as a Service Revenue increased 244% from the same period in 2021.

  • Net Income of $217,536, compared to Net Income of $296,437 for the same period in 2021.

    • The third quarter of 2022 included $127,437 in incremental interest expense compared to the third quarter 2021.

  • Adjusted EBITDA increased 48% to $799,359, compared to $538,488 from the same period in 2021.

2022 Nine Month Financial Highlights

  • Total Revenue increased 14% from the same period in 2021.

  • Software as a Service Revenue increased 166% from the same period in 2021.

  • Net Loss of $176,757, compared to Net Income of $1.3 million for the same period in 2021.

    • Nine-month 2021 included other income of $845,083 for forgiveness of the PPP loan and interest, and $77,211 in charges for change in fair value of earnout.

    • Nine-month 2022 included $144,999 of charges for change in fair value of earnout and $355,281 of transaction costs.

  • Adjusted EBITDA increased 29% to $1.7 million, compared to $1.3 million from the same period in 2021.

2022 Other Highlights

  • On April 1, 2022 we completed the acquisition of Yellow Folder, LLC. This acquisition more than doubled software as a service (SaaS) revenues, added positive cash flow in the three months ended June 30, 2022, and approximately doubled our customer count in the K-12 education market.

  • Simultaneously with the acquisition, we completed $8.7 million in equity and debt financing.

  • SAAS revenues continue to be strong for the nine months ended September 30, 2022, growing 166% including the Yellow Folder acquisition and growing 34% organically.

“Our transition to a diversified, SaaS-focused model is accelerating and our Adjusted EBITDA is expanding,” commented James F. DeSocio, President & CEO of Intellinetics. “Year-to-date, we have sold $6.3 million in total contract value across all products and services, which is 9% more than we sold in all of FY21. Total Contract Value represents orders secured by the sales team, generally recognizable in revenue over a period of less than one year. Our Adjusted EBITDA through the first nine months exceeds the total amount generated in all of last year, and our quarterly Adjusted EBITDA reached an all-time high of $799,359 (21% of total revenues) in the third quarter. We have built a sustainable, cash-generating business with a growing base of recurring revenue, creating significant visibility. With more than 500 customers in the K-12 education market alone, and durable, secular catalysts driving demand for our digital transformation capabilities, we are increasingly well-positioned for success.”

“The Yellow Folder acquisition has been a compelling success, giving us broad access to the vibrant K-12 education market and expanding our cross-selling opportunities for document conversion scanning, document storage, and business process outsourcing,” added DeSocio. “Since April, we’ve utilized our internal document scanning operations to process three separate projects that Yellow Folder would have historically outsourced, for a Total Contract Value of approximately $152,000.”

DeSocio continued, “We continue to drive adoption of our core IntelliCloudTM Payables Automation Solution (IPAS), launched earlier this year, including showcasing this solution as a Platinum Sponsor at the Build Smarter 2022 Conference in Chicago and expanding our collaboration with Constellation HomeBuilder Systems, part of the $5 billion Constellation Software family. As part of this, a new IPAS customer is sharing their success story. IPAS is a new, enterprise-class software payables automation solution for financial platforms with very complex cost-accounting. New software offerings expand our paths to market, and grow our revenue per customer, especially with software partnerships like ours with Constellation HomeBuilder Systems, where we can embed our technology and scale customer acquisition as part of an ongoing process.”

“Based on our current plans and assumptions, we expect to continue to grow revenues and Adjusted EBITDA on a year over year basis,” concluded DeSocio.

Summary – 2022 Third Quarter Results

Revenues for the three months ended September 30, 2022 were $3.9 million, an increase of 22% compared with $3.2 million for the same period in 2021. The increase was largely driven by our acquisition of Yellow Folder in April 2022. In addition to our acquisition growth, our SaaS and software maintenance revenues continued to grow. Professional services decreased, primarily driven by challenges in staffing back up after COVID reductions over the winter, due to the tight labor market. Intellinetics reported net income of $217,536, or $0.05 per diluted share, for the three months ended September 30, 2022 compared to a net income of $296,437, or $0.10 per diluted share, for the same period in 2021. The third quarter of last year included lower interest expense. Adjusted EBITDA increased 48% to $799,359, compared to $538,488 from the same period in 2021.

Summary – 2022 Nine Month Results

Revenues for the nine months ended September 30, 2022 were $10.0 million, up 14% compared to $8.7 million for the same period in 2021. The increase was largely driven by our acquisition of Yellow Folder in April 2022. Intellinetics reported a net loss of $176,757, or $0.05 per diluted share, for the nine months ended September 30, 2022 compared to net income of $1.3 million, or $0.43 per diluted share, for the same period in 2021. The net loss was the result of transaction costs of $355,281 in the nine months ended September 30, 2022 (compared to none in the same period in 2021), incurred in support of our acquisition on April 1, 2022, as well as a $67,788 increase in charges related to change in fair value of earnout, as well as $254,191 in increased interest expense. In addition, the nine-month period last year included a $845,000 gain on extinguishment of debt related to the PPP loan. Adjusted EBITDA increased 29% to $1.7 million, compared to $1.3 million from the same period in 2021.

Balance Sheet

Intellinetics ended the quarter with cash of $3.8 million, compared with $1.8 as of December 31, 2021. Gross working capital at September 30, 2022 was $5.6 million.

Conference Call

Intellinetics is holding a webcast to discuss these results at 4:30 p.m. Eastern Time. Interested parties can access the webcast through the Intellinetics website at https://www.intellinetics.com. Investors can also dial in to the webcast by calling (646) 558-8656 and using webcast ID 860-7364-2157# and passcode 123. To listen to the replay, the call will be archived on the company's website at https://www.intellinetics.com/company-news/.

About Intellinetics, Inc.

Intellinetics, Inc. (NYSE American: INLX) is enabling the digital transformation. Intellinetics empowers organizations to manage, store and protect their important documents and data. The Company’s flagship solution, the IntelliCloud content management platform, delivers advanced security, compliance, workflow and collaboration features critical for highly regulated, risk-intensive markets. IntelliCloud connects documents to users and the processes they support anytime, anywhere to accelerate innovation and empower organizations to think and work in new ways. In addition, Intellinetics offers business process outsourcing (BPO), document and micrographics scanning services, and records storage. From highly regulated industries like Healthcare/Human Service Providers, K-12, Public Safety, and State and Local Governments, to businesses looking to move away from paper-based processes, Intellinetics is the all-in-one, compliant, document management solution. Intellinetics is headquartered in Columbus, Ohio. For additional information, please visit www.intellinetics.com.

Cautionary Statement

Statements in this press release which are not purely historical, including statements regarding future business and growth, future revenues, future contract values, including 2022 revenues and future revenue streams from new and existing customers, 2022 Adjusted EBITDA, future cash flow, cross-selling efforts and other synergies associated with our acquisition of Yellow Folder and the success of our integration efforts; revenue consistency, growth and long-term value, including trends in revenue growth and mix; growth of software as a service, professional services, and maintenance revenue; market penetration; execution of Intellinetics’ business plan, strategy, direction and focus; and other intentions, beliefs, expectations, representations, projections, plans or strategies regarding future growth, financial results, and other future events 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 including inflationary pressures, the impact of COVID-19 and related governmental actions and orders on customers, suppliers, employees and the economy and our industry, Intellinetics’ ability to execute on its business plan and strategy, customary risks attendant to acquisitions, trends in the products markets, variations in Intellinetics’ cash flow or adequacy of capital resources, market acceptance risks, the success of Intellinetics’ solutions providers, including human services, health care, and education, technical development risks, and other risks, uncertainties and other factors discussed from time to time in its reports filed with or furnished to the Securities and Exchange Commission, including in Intellinetics’ most recent annual report on Form 10-K as well as subsequently filed reports on Form 8-K. Intellinetics 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 on its website at www.intellinetics.com or at www.sec.gov.

Investor Contact:

FNK IR
Tom Baumann / Rob Fink
646.349.6641 / 646.809.4048
INLX@fnkir.com

Joe Spain, CFO
Intellinetics, Inc.
614.921.8170 investors@intellinetics.com

Non-GAAP Financial Measures

Intellinetics uses non-GAAP Adjusted EBITDA and Total Contract Value as supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (GAAP). A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of a company.

Adjusted EBITDA: Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income, operating income, or any other performance measure derived in accordance with GAAP, or as an alternative to cash flow from operating activities or a measure of our liquidity. Intellinetics urges investors to review the reconciliation of non-GAAP Adjusted EBITDA to the comparable GAAP Net Loss, which is included in this press release, and not to rely on any single financial measure to evaluate Intellinetics’ financial performance.

We believe that Adjusted EBITDA is a useful performance measure and is used by us to facilitate a comparison of our operating performance on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under GAAP can provide alone. We define “Adjusted EBITDA” as earnings before interest expense, any income taxes, depreciation and amortization expense, stock-based compensation, note conversion and note or equity offer warrant or stock expense, gain or loss on debt extinguishment, change in fair value of contingent consideration, and transaction costs.

 

 

For the Three Months Ended September 30,

 

 

 

2022

 

 

2021

 

Net income - GAAP

 

$

217,536

 

 

$

296,437

 

Interest expense, net

 

 

240,467

 

 

 

113,030

 

Depreciation and amortization

 

 

193,863

 

 

 

105,923

 

Stock-based compensation

 

 

118,999

 

 

 

23,098

 

Change in fair value of earnout liabilities

 

 

28,494

 

 

 

-

 

Adjusted EBITDA

 

$

799,359

 

 

$

538,488

 


 

 

For the Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

Net (loss) income - GAAP

 

$

(176,757

)

 

$

1,331,656

 

Interest expense, net

 

 

593,536

 

 

 

339,345

 

Depreciation and amortization

 

 

503,250

 

 

 

302,239

 

Stock-based compensation

 

 

302,451

 

 

 

126,794

 

Transaction costs

 

 

355,281

 

 

 

-

 

Change in fair value of earnout liabilities

 

 

144,999

 

 

 

77,211

 

Gain on extinguishment of debt

 

 

-

 

 

 

(845,083

)

Adjusted EBITDA

 

$

1,722,760

 

 

$

1,332,162

 

Total Contract Value: Total Contract Value is a performance measure that the Company believes provides useful information to its management and investors as it allows the Company to better track the Company’s current sales performance, without any adjustment to exclude revenues that will not be earned, received, or recognized until future periods. Total Contract Value is not a substitute for total revenue. There is no GAAP measure that is comparable to Total Contract Value, so the Company has not reconciled the Total Contract Value to any GAAP measure.

We define Total Contract Value as the estimated total future revenues from contracts signed during the period. This refers to deals that have been awarded by our government and commercial customers. It presumes the future provision of all software, subscription services, and/or professional services without any termination of the contracts by either party. There can be no guarantee that all work will be completed, during any fiscal period, or that the contracts will not be terminated before all the estimated future revenues are earned, received, and/or recognized.


INTELLINETICS, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets

ASSETS

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

3,776,627

 

 

$

1,752,630

 

Accounts receivable, net

 

 

853,930

 

 

 

1,176,059

 

Accounts receivable, unbilled

 

 

491,946

 

 

 

444,782

 

Parts and supplies, net

 

 

74,540

 

 

 

76,691

 

Other contract assets

 

 

122,754

 

 

 

78,556

 

Prepaid expenses and other current assets

 

 

324,555

 

 

 

155,550

 

Total current assets

 

 

5,644,352

 

 

 

3,684,268

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,070,724

 

 

 

1,091,780

 

Right of use assets

 

 

3,365,575

 

 

 

3,841,612

 

Intangible assets, net

 

 

4,547,223

 

 

 

968,496

 

Goodwill

 

 

5,789,821

 

 

 

2,322,887

 

Other assets

 

 

341,942

 

 

 

53,089

 

Total assets

 

$

20,759,637

 

 

$

11,962,132

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

263,427

 

 

$

181,521

 

Accrued compensation

 

 

389,150

 

 

 

343,576

 

Accrued expenses, other

 

 

116,231

 

 

 

161,862

 

Lease liabilities - current

 

 

672,159

 

 

 

616,070

 

Deferred revenues

 

 

2,998,647

 

 

 

1,194,649

 

Deferred compensation

 

 

20,166

 

 

 

100,828

 

Earnout liabilities - current

 

 

757,347

 

 

 

958,818

 

Notes payable - current

 

 

1,912,331

 

 

 

-

 

Total current liabilities

 

 

7,129,458

 

 

 

3,557,324

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Notes payable - net of current portion

 

 

2,053,984

 

 

 

1,754,527

 

Notes payable - related party - net of current portion

 

 

521,205

 

 

 

-

 

Lease liabilities - net of current portion

 

 

2,805,971

 

 

 

3,316,682

 

Earnout liabilities - net of current portion

 

 

-

 

 

 

671,863

 

Total long-term liabilities

 

 

5,381,160

 

 

 

5,743,072

 

Total liabilities

 

 

12,510,618

 

 

 

9,300,396

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 25,000,000 shares authorized; 4,073,757 and 2,823,072 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

 

4,074

 

 

 

2,823

 

Additional paid-in capital

 

 

30,060,018

 

 

 

24,297,229

 

Accumulated deficit

 

 

(21,815,073

)

 

 

(21,638,316

)

Total stockholders' equity

 

 

8,249,019

 

 

 

2,661,736

 

Total liabilities and stockholders' equity

 

$

20,759,637

 

 

$

11,962,132

 


INTELLINETICS, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of software

 

$

18,390

 

 

$

58,779

 

 

$

93,986

 

 

$

73,971

 

Software as a service

 

 

1,211,407

 

 

 

352,192

 

 

 

2,801,084

 

 

 

1,052,072

 

Software maintenance services

 

 

352,892

 

 

 

336,732

 

 

 

1,033,375

 

 

 

1,012,251

 

Professional services

 

 

2,007,613

 

 

 

2,165,030

 

 

 

5,221,326

 

 

 

5,715,273

 

Storage and retrieval services

 

 

269,325

 

 

 

258,629

 

 

 

829,011

 

 

 

862,660

 

Total revenues

 

 

3,859,627

 

 

 

3,171,362

 

 

 

9,978,782

 

 

 

8,716,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of software

 

 

10,647

 

 

 

3,691

 

 

 

44,232

 

 

 

10,050

 

Software as a service

 

 

207,502

 

 

 

73,596

 

 

 

489,939

 

 

 

241,717

 

Software maintenance services

 

 

19,024

 

 

 

18,270

 

 

 

56,509

 

 

 

64,930

 

Professional services

 

 

1,028,074

 

 

 

1,042,249

 

 

 

2,794,783

 

 

 

2,765,241

 

Storage and retrieval services

 

 

88,195

 

 

 

117,835

 

 

 

266,279

 

 

 

299,597

 

Total cost of revenues

 

 

1,353,442

 

 

 

1,255,641

 

 

 

3,651,742

 

 

 

3,381,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

2,506,185

 

 

 

1,915,721

 

 

 

6,327,040

 

 

 

5,334,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

1,333,285

 

 

 

1,027,932

 

 

 

3,532,672

 

 

 

3,125,019

 

Change in fair value of earnout liabilities

 

 

28,494

 

 

 

-

 

 

 

144,999

 

 

 

77,211

 

Transaction costs

 

 

-

 

 

 

-

 

 

 

355,281

 

 

 

-

 

Sales and marketing

 

 

492,540

 

 

 

372,399

 

 

 

1,374,059

 

 

 

1,004,305

 

Depreciation and amortization

 

 

193,863

 

 

 

105,923

 

 

 

503,250

 

 

 

302,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

2,048,182

 

 

 

1,506,254

 

 

 

5,910,261

 

 

 

4,508,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

458,003

 

 

 

409,467

 

 

 

416,779

 

 

 

825,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on extinguishment of debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

845,083

 

Interest expense

 

 

(240,467

)

 

 

(113,030

)

 

 

(593,536

)

 

 

(339,345

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expense), net

 

 

(240,467

)

 

 

(113,030

)

 

 

(593,536

)

 

 

505,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

217,536

 

 

 

296,437

 

 

 

(176,757

)

 

 

1,331,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

217,536

 

 

$

296,437

 

 

$

(176,757

)

 

$

1,331,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share:

 

$

0.05

 

 

$

0.11

 

 

$

(0.05

)

 

$

0.47

 

Diluted net income (loss) per share:

 

$

0.05

 

 

$

0.10

 

 

$

(0.05

)

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding - basic

 

 

4,073,757

 

 

 

2,823,072

 

 

 

3,664,024

 

 

 

2,822,938

 

Weighted average number of common shares outstanding - diluted

 

 

4,695,162

 

 

 

3,104,334

 

 

 

3,664,024

 

 

 

3,105,175

 


INTELLINETICS, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(176,757

)

 

$

1,331,656

 

Adjustments to reconcile net income (loss) to net cash

 

 

 

 

 

 

 

 

used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

503,250

 

 

 

302,239

 

Bad debt (recovery) expense

 

 

22,370

 

 

 

(10,304

)

Parts and supplies reserve change

 

 

-

 

 

 

9,000

 

Amortization of deferred financing costs

 

 

155,667

 

 

 

77,804

 

Amortization of debt discount

 

 

79,999

 

 

 

80,000

 

Amortization of right of use asset

 

 

476,037

 

 

 

472,402

 

Stock issued for services

 

 

57,500

 

 

 

57,500

 

Stock options compensation

 

 

244,951

 

 

 

69,294

 

Gain on extinguishment of debt

 

 

-

 

 

 

(845,083

)

Change in fair value of earnout liabilities

 

 

144,999

 

 

 

77,211

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

368,139

 

 

 

(145,824

)

Accounts receivable, unbilled

 

 

(47,164

)

 

 

(129,553

)

Parts and supplies

 

 

2,151

 

 

 

12,357

 

Prepaid expenses and other current assets

 

 

(147,995

)

 

 

(81,880

)

Accounts payable and accrued expenses

 

 

45,403

 

 

 

254,784

 

Lease liabilities, current and long-term

 

 

(454,622

)

 

 

(464,528

)

Deferred compensation

 

 

(80,662

)

 

 

-

 

Accrued interest, current and long-term

 

 

-

 

 

 

442

 

Deferred revenues

 

 

731,468

 

 

 

340,732

 

Total adjustments

 

 

2,101,491

 

 

 

76,593

 

Net cash provided by operating activities

 

 

1,924,734

 

 

 

1,408,249

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid to acquire business

 

 

(6,383,269

)

 

 

-

 

Capitalized software

 

 

(315,148

)

 

 

-

 

Purchases of property and equipment

 

 

(142,903

)

 

 

(532,151

)

Net cash used in investing activities

 

 

(6,841,320

)

 

 

(532,151

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payment of earnout liabilities

 

 

(1,018,333

)

 

 

(954,733

)

Proceeds from issuance of common stock

 

 

5,740,758

 

 

 

-

 

Offering costs paid on issuance of common stock and notes

 

 

(746,342

)

 

 

-

 

Proceeds from notes payable

 

 

2,364,500

 

 

 

-

 

Proceeds from notes payable - related parties

 

 

600,000

 

 

 

-

 

Net cash provided by (used in) financing activities

 

 

6,940,583

 

 

 

(954,733

)

 

 

 

 

 

 

 

 

 

Net (decrease) increase in cash

 

 

2,023,997

 

 

 

(78,635

)

Cash - beginning of period

 

 

1,752,630

 

 

 

1,907,882

 

Cash - end of period

 

$

3,776,627

 

 

$

1,829,247

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for interest

 

$

357,870

 

 

$

182,198

 

Cash paid during the period for income taxes

 

$

11,050

 

 

$

2,106

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash financing activities:

 

 

 

 

 

 

 

 

Discount on notes payable for warrants

 

$

169,900

 

 

$

-

 

Discount on notes payable - related parties for warrants

 

 

43,113

 

 

 

-

 

Warrants issued and extended for common stock issuance costs

 

 

412,500

 

 

 

-

 

Right-of-use asset obtained in exchange for operating lease liability

 

 

-

 

 

 

1,837,106

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities relating to business acquisitions:

 

 

 

 

 

 

 

 

Accounts receivable

 

$

68,380

 

 

$

-

 

Prepaid expenses

 

 

38,913

 

 

 

-

 

Property and equipment

 

 

30,018

 

 

 

-

 

Intangible assets

 

 

3,888,000

 

 

 

-

 

Goodwill

 

 

3,466,934

 

 

 

-

 

Accounts payable

 

 

(36,446

)

 

 

-

 

Deferred revenues

 

 

(1,072,530

)

 

 

-

 

Net assets acquired in acquisition

 

 

6,383,269

 

 

 

-

 

Cash used in business acquisition

 

$

6,383,269

 

 

$

-

 


Advertisement