SaaS Revenue Increased 86% 

 COLUMBUS, OH – (March 30, 2017) – Intellinetics, Inc. (OTCQB: INLX), a document solutions software company focused on IntelliCloudTM (a cloud-based document management solution for the Small to Medium Business (SMB) market and business teams within large enterprises), announced financial results for the twelve months ended December 31, 2016.

Year End Key Metrics 

  • Software as a Service Revenue increased 86%
  • Total Revenue increased 11%
  • Despite net loss improvement, Adjusted EBITDA erosion –a result of sales and marketing investments needed to support and execute our burgeoning pipeline

Summary –Year-End Results 

Revenues for the twelve months ended December 31, 2016 were $2,601,733, as compared with $2,336,991 for the same period in 2015, an increase of $264,742, or 11%. Sales of Software as a Service (SaaS) led the way with an 86% increase, which includes data storage and hosting services. Overall, gross margins were 73% and 77% for the twelve months ended December 31, 2016 and 2015, respectively, primarily due to product mix.

Net loss was $(1,576,311) and $(3,921,428) for the years ended December 31, 2016 and 2015, or $(0.09) and $(0.55) per share, respectively, representing a decrease of $(2,345,117), or 60%. Total decrease in net loss was attributable to the decrease in non-cash and mostly non-recurring expenses, including stock option expense, non-cash interest expense and notes payable conversion underwriting expense associated with the conversion of convertible notes to equity, effected in December 2015, as well as an increase in gross profit for the year ended December 31, 2016. However, Adjusted EBITDA loss for the year ended December 31, 2016 was $(1,023,668), compared with a loss of $(481,454) for the year ended December 31, 2015, a 113% increase.

Matthew L. Chretien, President and CEO of Intellinetics, stated, “We made tremendous progress in 2016 and many of the building blocks to create accelerating growth were put in place. We look forward to our quarterly financial results soon reflecting successful execution of our business plan. In the meantime, we look forward to providing progress reports on a growing number of OEM/Embedded channel technology partners.”

2016 Highlights 

  • Refined our imaging channel model by streamlining growth through a master distribution partner (such as copier resellers) using IntelliCloud to become a world-class managed business services provider.
    • The partner is initially focusing on its top 150 dealers in its top 30 markets -supported by a mature multi-channel marketing engine and in-field sales teams.
  • Designed, built and launched IntelliCloud University™, allowing dealers (that primarily sell Multi-Function Printers, Managed Print Services or Managed IT Services) to generate more sales by seamlessly adding IntelliCloud document management to their core offerings, while reducing our costs. (
  • Continued to grow total revenues quarter-over-quarter all year while focusing on SaaS business.
    • SaaS sales are a recurring revenue model -providing an increasingly growing, stable revenue base while maximizing long-term enterprise value.
  • Launched in Q4, we focused on growing new revenue streams through technology-based partners that have leading cloud-based platforms with large and growing installation bases.
    • This new OEM / Embedded channel segment embeds the sale of IntelliCloud into an existing model vs. as a separate / standalone process. In some cases, this created new offerings that we are also selling through our imaging channel.
  • At the end of December, we initiated a convertible debt financing round of $1.25M (which was fully subscribed in January) to support our expected rapid growth.

IntelliCloudTM –Powered by the Intel® NUC 

IntelliCloud™ is a cloud-based document management platform that is optimized for the vast SMB market segment and business teams within large enterprises who are stuck with paper in business-critical processes. Thousands and thousands of people at any given moment depend upon IntelliCloud to perform their work. IntelliCloud, which is strategically packaged with Intel® technology, provides Law Enforcement Grade security and compliance tools and is supported by a growing network of market-leading reseller partners. Resellers often attach IntelliCloud to the software, hardware, and/or services they already sell without the sales or technical complexity of other less effective options in the market.

About Intellinetics, Inc. 

Intellinetics, Inc. is a Columbus, Ohio-based ECM software company. Intellinetics partnered with Intel to create the IntelliCloud Channel Program that makes it easy to add turnkey document workflow solutions to the copiers, productivity software and services they already provide. IntelliCloud provides dealers a “deploy once, use many” innovation where one IntelliCloud customer sale/activation creates endless possibilities to add other software applications that deliver more value and increase revenue. For additional information, please visit:

Cautionary Statement 

Statements in this press release which are not purely historical, including statements regarding future business associated with any channel partner, distribution partner, or other reseller; Intellinetics’ future revenues and growth, whether SaaS-based or otherwise; market penetration; 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, trends in the products markets, variations in the company’s cash flow or adequacy of capital resources, market acceptance risks, the success of our channel partners and distribution partners, technical development risks, and other risks and uncertainties discussed in the annual report on Form 10-K, to be filed on the date of this release, and any previously filed Form 10-Qs and Form 8-Ks. The company 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 and its Affiliates on its website or at or at


Terri MacInnis, VP of Investor Relations

Bibicoff + MacInnis, Inc.


Non-GAAP Financial Measure 

Intellinetics uses non-GAAP Adjusted EBITDA 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 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, income taxes, depreciation and amortization expense, and other non-cash expenses such as share-based compensation, note conversion warrant/offer expense and other financing related transaction costs.