Revenue Growth Over 2018

COLUMBUS, OH – (March 30, 2020) – Intellinetics, Inc. (OTCQB: INLX), a cloud-based document solutions provider, announced financial results for the three and twelve months ended December 31, 2019.

2019 Fourth Quarter Financial Highlights

  • Total Revenue decreased 1% from Q4 2018.
  • Software as a Service Revenue decreased 2% from Q4 2018.
  • Net Loss of $591,013.
  • Adjusted EBITDA Loss of $309,549, an increase of 20% from Q4 2018.

2019 Twelve Month Financial Highlights

  • Total Revenue increased 6% from the same period in 2018.

  • Software as a Service Revenue increased 15% from the same period in 2018.

  • Net Loss of $2,133,281.
  • Adjusted EBITDA Loss of $857,276, a decrease of 26% from the same period in 2018.

Summary – 2019 Fourth Quarter Results

Revenues for the three months ended December 31, 2019 were $624,394 as compared with $633,266 for the same period in 2018. Intellinetics reported a net loss of $591,013 and $552,403 for the three months ended December 31, 2019 and 2018, respectively, representing an increase in net loss of $38,610. The increased net loss was a result of higher interest expense (14%), lower revenue (1%) driven by timing of projects, and higher operating expenses (3%) driven by acquisition costs, partially offset by lower cost of revenues (15%) driven by product mix and process improvements. Net loss per share for the three months ended December 31, 2019 and 2018 was ($1.60) and (1.56), respectively.

Summary – 2019 Twelve-month Results

Revenues for the twelve months ended December 31, 2019 were $2,535,955 as compared with $2,381,427 for the same period in 2018. Intellinetics reported a net loss of $2,133,281 and $2,340,280 for the twelve months ended December 31, 2019 and 2018, respectively, representing a decrease in net loss of $206,999. The decreased net loss was a result of slightly higher revenue combined with lower cost of revenues from favorable mix and improved processes, and flat operating expenses. Net loss per share for the twelve months ended December 31, 2019 and 2018 was ($5.76) and ($6.60), respectively.

2019 Highlights

  • Our expansion in direct sales has yielded improved gross profits (revenue less costs of revenues), resulting in 78% gross profits for the twelve months ended December 31, 2019.
  • Our commitment to the Human Services Provider market continued with focus on purpose-built solutions such as our advanced Incident Case Management System, which vastly enhanced compliance and organization transparency regarding the status of incidents, enabling our customers to make better decisions in providing service to their consumers.
  • Our continued investment in enhancing the security of our platform for all users, as well as help our customers improved their systems through strategic collaboration.
  • We continue to expand and enhance our partnerships with solutions providers, including health care and education, as well as participation in relevant associations.

James F. DeSocio, President & CEO of Intellinetics, stated, “I am pleased that our focused market strategy has resulted in an increase in year over year revenue and a decrease in net loss. Our revenue mix shifted towards our own internal software and sales and away from third party solution integrations resulting in higher margins for us. Our current backlog of orders is at a record high, which reflects our steady commitment to the Human Service Provider, state and local government, and education markets, where we not only maintain our exemplary customer service, but we also innovate, as reflected in the timely solutions we bring to market.”

“To illustrate our innovation, we started a new solution offering, DSS, Document Scanning Service. DSS has been developed in partnership with one of our Human Service Provider customers, ARC Industries. The unique partnership program enables us to employ and train people with development disabilities. After a progressive development over three months, we can graduate the participants and bring in a new group. In 2019, we have ramped up the revenue of that offering to $167,815 while at the same time graduating six students and bringing in another eight students to grow the program,” DeSocio continued.

“Most exciting, we have completed a financing and acquired Graphic Science, Inc., based in Madison Heights, MI, earlier this month. This acquisition provides us with an opportunity for cross-selling our complementary solutions, and gives us a significant boost to our critical mass. While COVID-19 is currently limiting the operations of Graphic Science, we’re well underway with integration efforts and I am very pleased with the progress. Our eyes are on future growth,” DeSocio concluded.

As previously announced, the stockholders of the Company approved a 1-for-50 reverse stock split, which was given effect by OTC Capital Markets on March 20, 2020, for stockholders of record as of the close of business on March 19, 2020. We believe this corporate action will improve the liquidity and marketability of our shares of common stock.

About Intellinetics, Inc.

Intellinetics, Inc., located in Columbus, Ohio, is a cloud-based content services software provider. Its IntelliCloud™ suite of solutions serve a mission-critical role for organizations in highly regulated, risk and compliance-intensive markets in Healthcare, K-12, Public Safety, Public Sector, Risk Management, Financial Services and beyond. IntelliCloud solutions make content secure, compliant, and process-ready to drive innovation, efficiencies and growth. For additional information, please visit

Cautionary Statement

Statements in this press release which are not purely historical, including statements regarding future business and growth, the ability of the Company to improve the liquidity and marketability of its common stock, and new revenues associated with our recent acquisition of Graphic Science, our other offerings and partnerships mentioned in this release, and in any other industry, market, initiative, service or innovation; Intellinetics’ future revenues, 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, 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 10-Q and 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 or at


Joe Spain, CFO
Intellinetics, Inc.

Non-GAAP Financial Measure

Intellinetics uses non-GAAP Adjusted EBITDA as a supplemental measure of our performance that is 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, any income taxes, depreciation and amortization expense, share-based compensation, note conversion and note offer warrant expense, and gain or loss on debt retirement.

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