Intellinetics (NYSE American: INLX) Q2 2026 revenue slips as losses and costs rise
Rhea-AI Filing Summary
Intellinetics, Inc. reported softer results for the quarter and six months ended June 30, 2026. Second-quarter revenue was $3.95 million, down 1.6% year over year, as a 5.8% decline in professional services and an 11.7% decline in software maintenance more than offset 4.2% SaaS growth and 8.8% storage and retrieval growth.
Gross profit fell to $2.62 million, and operating expenses rose 14.7% to $3.71 million, driven mainly by higher general and administrative costs and increased share-based compensation. Net loss widened to $1.09 million, or $(0.24) per share, and Adjusted EBITDA turned to a $(0.37) million loss.
For the first half of 2026, revenue declined 4.9% to $7.86 million, net loss increased to $2.26 million, and Adjusted EBITDA was a $(0.66) million loss. Cash was $1.71 million at June 30, 2026. Management emphasizes a shift toward higher-growth SaaS and recurring revenue and continues to expect double-digit SaaS growth for 2026.
Positive
- None.
Negative
- Profitability weakened materially: net loss increased to $1.09 million in Q2 2026 and $2.26 million for the first half, versus $0.57 million and $1.30 million in 2025, and Adjusted EBITDA swung from modest profit to losses of $(0.37) million in Q2 and $(0.66) million year-to-date.
Filing Explained
The filing adds liquidity detail: June 30 cash was approximately $1.7 million after $186,094 of first-half operating cash use.
This Form 8-K furnishes second-quarter and six-month results; at June 30, reported cash was approximately
Item 2.02 states that the results and Exhibit 99.1 are furnished and are not deemed filed for Section 18 purposes.
The balance sheet reports cash of
For the first six months, net cash decreased by
8-K Event Classification
Key Figures
Key Terms
Software as a Service (SaaS) financial
Adjusted EBITDA financial
deferred revenues financial
right of use assets financial
non-GAAP financial measures financial
Earnings Snapshot
Management expects double-digit year-over-year SaaS revenue growth for fiscal 2026 and notes that professional services revenue may continue to vary based on project timing and customer demand.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
(Exact name of Registrant as specified in its charter)
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S Employer Identification No.) |
| (Address of principal executive offices) | (Zip code) |
Registrant’s
telephone number, including area code:
Intellinetics, Inc.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.001 par value
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 12, 2026, the Company issued a press release announcing its financial results for the fiscal quarter ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information reported under this Item 2.02 of Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Name of Exhibit | |
| 99.1 | Press release issued by Intellinetics, Inc., on August 12, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INTELLINETICS, INC. | ||
| By: | /s/ Alison G. Forsythe | |
| Alison G. Forsythe | ||
| President and Chief Executive Officer | ||
| Dated: August 12, 2026 | ||
Exhibit 99.1
Intellinetics Reports Second Quarter and Six-Month 2026 Results
COLUMBUS, OH – August 12, 2026 – Intellinetics, Inc. (NYSE American: INLX), a digital transformation solutions provider, announced financial results for the three and six months ended June 30, 2026.
2026 Second Quarter Financial Highlights
| ● | Software as a Service (SaaS) revenue increased 4.2% year over year to $1.6 million. | |
| ● | Professional services revenue decreased 5.8% year over year. | |
| ● | Total revenue decreased 1.6% year over year to $3.9 million, driven by the decline in professional services revenue. | |
| ● | Gross profit decreased 3.9% year over year, with gross profit margin decreasing 162 basis points due to decreased professional services margins, driven by project mix. | |
| ● | Net loss of $1.1 million, or ($0.24) per basic and fully diluted share, compared to net loss of $0.6 million, or ($0.13) per basic and fully diluted share, for the same period in 2025. | |
| ● | Adjusted EBITDA loss of $371,096, compared to $27,573 Adjusted EBITDA profit from the same period in 2025. | |
| ● | Cash at quarter end was approximately $1.7 million. |
2026 Six-Month Financial Highlights
| ● | Software as a Service (SaaS) revenue increased 2.2% year over year to $3.2 million. | |
| ● | Professional services revenue decreased 10.3% year over year. | |
| ● | Total revenue decreased 4.9% year over year to $7.9 million, driven by the decline in professional services revenue. | |
| ● | Gross profit decreased 8.2% year over year, with gross profit margin decreasing 232 basis points due to decreased professional services margins, driven by project mix. | |
| ● | Net loss of $2.3 million, or ($0.51) per basic and fully diluted share, compared to net loss of $1.3 million, or ($0.31) per basic and fully diluted share, for the same period in 2025. |
| ◌ | Operating expenses for the six months ended June 30, 2026 include approximately $430,000 in non-recurring CEO transition costs, all of which were incurred in the first quarter of 2026. |
| ● | Adjusted EBITDA loss of $658,746, compared to $104,162 Adjusted EBITDA profit from the same period in 2025. | |
| ● | Cash at period end was approximately $1.7 million. |
Alison Forsythe, President & CEO of Intellinetics, stated: “Q2 was my first full quarter as CEO, and it reinforced my conviction that Intellinetics has the foundation to become a stronger, more scalable software and services company. We have high-value software assets, strong recurring revenue characteristics, long-standing customer relationships, and deep experience in document-intensive, compliance-driven markets where automation, workflow, secure content management, and process efficiency are increasingly important.”
“In the first half of 2026, we moved quickly to establish the operating discipline required to scale. We improved forecasting visibility, strengthened sales pipeline management, implemented a more consistent management cadence, launched a new website to support clearer market positioning, and added greater structure, ownership, timelines, and accountability around key initiatives. These are important building blocks as we move from assessment to execution.”
“Our priorities for the second half are clear: accelerate SaaS growth, improve go-to-market execution, prioritize product and technology investments, and reduce operating variability. SaaS revenue increased 4.2% year over year in Q2, and we continue to expect double-digit year-over-year SaaS growth for fiscal 2026. While we do not publicly report bookings, project backlog, or pipeline metrics, internally we observed improvement in those measures during the first half of 2026, which supports our continued 2026 Outlook. As a result, we believe the first half of 2026 is not representative of the execution profile we are building for the second half and beyond.”
“Over the next two to four years, we see a meaningful opportunity to build a more focused and predictable business. That means expanding SaaS and recurring revenue, using Document Services as a strategic entry point into broader software relationships, modernizing and prioritizing the product portfolio, and aligning talent and capital behind the opportunities with the highest return. We are early in the transformation, but the direction is clear, and we are moving with urgency.”
Summary – 2026 Second Quarter Results
Revenues for the three months ended June 30, 2026 were $3,946,477, a decrease of 1.6%, as compared with $4,010,813 for the same period in 2025. This net decrease was driven by a 5.8% decrease in professional services revenues, reflecting continued project volume challenges in our Document Services segment, and an 11.7% decrease in software maintenance services revenues, which more than offset SaaS revenue growth of 4.2% and storage and retrieval revenue growth of 8.8%.
Total operating expenses increased 14.7% to $3,709,046, compared to $3,235,035, driven by a 24.4% increase in general and administrative expenses primarily from increased variable compensation expense and increased engineering development personnel, partially offset by a 13.9% decrease in sales and marketing expenses and an 8.7% decrease in depreciation and amortization. Additionally, for the second quarter, share-based compensation expense increased $228,771 from 2025 to 2026, to $657,478. Loss from operations was $1,090,059 compared to a loss from operations of $508,478 in the second quarter last year.
Intellinetics reported a net loss of $1,086,138 compared to a net loss of $567,590 for the same period in 2025. Basic and diluted net loss per share for the three months ended June 30, 2026 was $(0.24), compared to net loss per basic and diluted share of $(0.13) for the period ended June 30, 2025. Adjusted EBITDA was $(371,096) compared to $27,573 in 2025.
| For the quarters ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenues: | ||||||||
| Software as a service | $ | 1,643,416 | $ | 1,577,104 | ||||
| Software maintenance services | 291,767 | 330,459 | ||||||
| Professional services | 1,789,768 | 1,899,619 | ||||||
| Storage and retrieval services | 221,526 | 203,631 | ||||||
| Total revenues | 3,946,477 | 4,010,813 | ||||||
Summary – 2026 Six-Month Results
Revenues for the six months ended June 30, 2026 were $7,855,659, a decrease of 4.9% compared to $8,258,158 for the same period in 2025. This net decrease was driven by a 10.3% decrease in professional services revenues, reflecting continued project volume challenges in our Document Services segment, and an 11.6% decrease in software maintenance services revenues, which more than offset SaaS revenue growth of 2.2% and storage and retrieval revenue growth of 6.0%. Total operating expenses increased 9.3% to $7,373,657 compared to $6,746,794. The increase was driven by a 16.4% increase in general and administrative expenses, including approximately $430,000 of non-recurring CEO transition costs, partially offset by a 13.8% decrease in sales and marketing expenses. Loss from operations was $2,272,611, compared to a loss from operations of $1,193,037 last year. Intellinetics reported a net loss of $2,263,991, or $(0.51) per basic and diluted share compared to net loss of $1,295,155, or $(0.31) per basic and diluted share, for the same period in 2025. Adjusted EBITDA was $(658,746) compared to $104,162 in 2025.
| For the six-months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenues: | ||||||||
| Software as a service | $ | 3,187,263 | $ | 3,119,273 | ||||
| Software maintenance services | 588,160 | 665,650 | ||||||
| Professional services | 3,639,931 | 4,057,934 | ||||||
| Storage and retrieval services | 440,305 | 415,301 | ||||||
| Total revenues | 7,855,659 | 8,258,158 | ||||||
2026 Outlook
Management remains focused on accelerating SaaS growth and currently expects double-digit year-over-year SaaS growth for fiscal 2026.
As the Company enters the second half of 2026, management is focused on converting software opportunities into recurring revenue, improving go-to-market execution, and prioritizing product and technology investments that support a more scalable business model.
Professional services revenue may continue to vary based on project timing and customer demand. However, management believes the actions underway are strengthening execution and positioning Intellinetics for improved predictability and long-term recurring revenue growth.
Conference Call
Intellinetics is holding a conference call to discuss these results on a live webcast at 4:30 p.m. ET today. Interested parties can access the webcast through the Intellinetics website at https://ir.intellinetics.com/. Investors can also dial in to the webcast by calling (877) 407-8133 (toll-free) or (201) 689-8040. A replay of the call can also be accessed via phone through September 11, 2026 by dialing (877) 660-6853 (toll-free) or (201) 612-7415 and using replay access code 13762189.
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; opportunities to expand our software and SaaS business; improved revenue predictability; expanded margins; predictable and sustainable growth, including the growth of SaaS business; future revenues, including the “2026 Outlook” for revenues; improved business execution and go-to-market approach; execution of our 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, challenges with hiring and maintaining a stable workforce, our ability to execute on our business plan and strategy including our transition to a SaaS-based company, customary risks attendant to 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.
CONTACT:
Joe Spain, CFO
Intellinetics, Inc.
614.921.8170
investors@intellinetics.com
Non-GAAP Financial Measures
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: 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 Income, 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 (income) expense, any income taxes, depreciation and amortization expense, non-cash share-based compensation, transaction costs, and CEO transition one-time costs (including overlapping wages and benefits, recruiting costs, legal costs, and severance costs including share-based compensation).
Reconciliation of Net Loss to Adjusted EBITDA
| For the Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net loss – GAAP | $ | (1,086,138 | ) | $ | (567,590 | ) | ||
| Interest (income) expense, net | (3,921 | ) | 59,112 | |||||
| Depreciation and amortization | 280,756 | 307,442 | ||||||
| Share-based compensation, non-cash | 420,749 | 228,609 | ||||||
| Transaction costs | 17,458 | - | ||||||
| Adjusted EBITDA | $ | (371,096 | ) | $ | 27,573 | |||
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net loss – GAAP | $ | (2,263,991 | ) | $ | (1,295,155 | ) | ||
| Interest (income) expense, net | (8,620 | ) | 102,118 | |||||
| Depreciation and amortization | 583,637 | 615,127 | ||||||
| Share-based compensation, non-cash, excluding CEO transition | 582,640 | 682,072 | ||||||
| Transaction costs | 17,458 | - | ||||||
| CEO transition costs, including cash and non-cash share-based compensation | 430,130 | - | ||||||
| Adjusted EBITDA | $ | (658,746 | ) | $ | 104,162 | |||
INTELLINETICS, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues: | ||||||||||||||||
| Software as a service | $ | 1,643,416 | $ | 1,577,104 | $ | 3,187,263 | $ | 3,119,273 | ||||||||
| Software maintenance services | 291,767 | 330,459 | 588,160 | 665,650 | ||||||||||||
| Professional services | 1,789,768 | 1,899,619 | 3,639,931 | 4,057,934 | ||||||||||||
| Storage and retrieval services | 221,526 | 203,631 | 440,305 | 415,301 | ||||||||||||
| Total revenues | 3,946,477 | 4,010,813 | 7,855,659 | 8,258,158 | ||||||||||||
| Cost of revenues: | ||||||||||||||||
| Software as a service | 277,614 | 247,051 | 534,570 | 462,180 | ||||||||||||
| Software maintenance services | 14,455 | 12,978 | 26,847 | 29,343 | ||||||||||||
| Professional services | 975,361 | 964,448 | 2,086,810 | 2,046,454 | ||||||||||||
| Storage and retrieval services | 60,060 | 59,779 | 106,386 | 166,424 | ||||||||||||
| Total cost of revenues | 1,327,490 | 1,284,256 | 2,754,613 | 2,704,401 | ||||||||||||
| Gross profit | 2,618,987 | 2,726,557 | 5,101,046 | 5,553,757 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 2,949,488 | 2,371,530 | 5,803,215 | 4,987,276 | ||||||||||||
| Sales and marketing | 478,802 | 556,063 | 986,805 | 1,144,391 | ||||||||||||
| Depreciation and amortization | 280,756 | 307,442 | 583,637 | 615,127 | ||||||||||||
| Total operating expenses | 3,709,046 | 3,235,035 | 7,373,657 | 6,746,794 | ||||||||||||
| Loss from operations | (1,090,059 | ) | (508,478 | ) | (2,272,611 | ) | (1,193,037 | ) | ||||||||
| Interest income (expense), net | 3,921 | (59,112 | ) | 8,620 | (102,118 | ) | ||||||||||
| Net loss | $ | (1,086,138 | ) | $ | (567,590 | ) | $ | (2,263,991 | ) | $ | (1,295,155 | ) | ||||
| Basic net loss per share: | $ | (0.24 | ) | $ | (0.13 | ) | $ | (0.51 | ) | $ | (0.31 | ) | ||||
| Diluted net loss per share: | $ | (0.24 | ) | $ | (0.13 | ) | $ | (0.51 | ) | $ | (0.31 | ) | ||||
| Weighted average number of common shares outstanding - basic | 4,460,957 | 4,251,689 | 4,427,268 | 4,213,389 | ||||||||||||
| Weighted average number of common shares outstanding - diluted | 4,460,957 | 4,251,689 | 4,427,268 | 4,213,389 | ||||||||||||
INTELLINETICS, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets
| (unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,713,637 | $ | 2,528,281 | ||||
| Accounts receivable, net | 705,463 | 1,239,802 | ||||||
| Accounts receivable, unbilled | 756,337 | 909,574 | ||||||
| Parts and supplies, net | 109,675 | 173,295 | ||||||
| Prepaid expenses and other current assets | 545,529 | 378,305 | ||||||
| Total current assets | 3,830,641 | 5,229,257 | ||||||
| Property and equipment, net | 995,491 | 1,092,694 | ||||||
| Right of use assets, operating | 1,397,016 | 1,394,806 | ||||||
| Right of use assets, finance | 128,626 | 164,998 | ||||||
| Intangible assets, net | 2,716,800 | 2,906,188 | ||||||
| Goodwill | 5,789,821 | 5,789,821 | ||||||
| Other assets | 783,687 | 727,808 | ||||||
| Total assets | $ | 15,642,082 | $ | 17,305,572 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 292,834 | $ | 284,680 | ||||
| Accrued compensation | 882,374 | 410,368 | ||||||
| Accrued expenses | 166,260 | 199,995 | ||||||
| Lease liabilities, operating - current | 813,982 | 721,879 | ||||||
| Lease liabilities, finance - current | 62,920 | 67,935 | ||||||
| Deferred revenues | 2,911,110 | 3,371,263 | ||||||
| Total current liabilities | 5,129,480 | 5,056,120 | ||||||
| Long-term liabilities: | ||||||||
| Lease liabilities, operating - net of current portion | 626,302 | 749,346 | ||||||
| Lease liabilities, finance - net of current portion | 83,882 | 116,090 | ||||||
| Total long-term liabilities | 710,184 | 865,436 | ||||||
| Total liabilities | 5,839,664 | 5,921,556 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, $0.001 par value, 25,000,000 shares authorized; 4,494,994 and 4,479,123 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively | 4,495 | 4,479 | ||||||
| Additional paid-in capital | 35,576,047 | 34,893,670 | ||||||
| Accumulated deficit | (25,778,124 | ) | (23,514,133 | ) | ||||
| Total stockholders’ equity | 9,802,418 | 11,384,016 | ||||||
| Total liabilities and stockholders’ equity | $ | 15,642,082 | $ | 17,305,572 | ||||
INTELLINETICS, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,263,991 | ) | $ | (1,295,155 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 583,637 | 615,127 | ||||||
| Bad debt expense | 9,824 | 29,126 | ||||||
| Loss on disposal of fixed assets | - | 10,202 | ||||||
| Amortization of deferred financing costs | - | 42,052 | ||||||
| Amortization of right of use assets, financing | 36,372 | 36,372 | ||||||
| Share-based compensation | 920,795 | 965,471 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 524,515 | 310,576 | ||||||
| Accounts receivable, unbilled | 153,237 | 204,630 | ||||||
| Parts and supplies | 63,620 | (64,000 | ) | |||||
| Prepaid expenses and other current assets | (167,224 | ) | (26,263 | ) | ||||
| Accounts payable and accrued expenses | 446,425 | 116,759 | ||||||
| Operating lease assets and liabilities, net | (33,151 | ) | (13,896 | ) | ||||
| Deferred revenues | (460,153 | ) | (818,480 | ) | ||||
| Total adjustments | 2,077,897 | 1,407,676 | ||||||
| Net cash (used in) provided by operating activities | (186,094 | ) | 112,521 | |||||
| Cash flows from investing activities: | ||||||||
| Capitalization of internal use software | (277,254 | ) | (209,171 | ) | ||||
| Purchases of property and equipment | (75,671 | ) | (262,733 | ) | ||||
| Net cash (used in) investing activities | (352,925 | ) | (471,904 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock | - | 1,716,957 | ||||||
| Offering costs paid on issuance of common stock | - | (118,629 | ) | |||||
| Principal payments on financing lease liability | (37,223 | ) | (33,795 | ) | ||||
| Payments to taxing authorities in connection with shares directly withheld from employees | (238,402 | ) | (283,399 | ) | ||||
| Exercise of stock warrants | - | (12 | ) | |||||
| Repayment of notes payable | - | (807,331 | ) | |||||
| Repayment of notes payable - related parties | - | (532,169 | ) | |||||
| Net cash (used in) financing activities | (275,625 | ) | (58,378 | ) | ||||
| Net decrease in cash | (814,644 | ) | (417,761 | ) | ||||
| Cash - beginning of period | 2,528,281 | 2,489,236 | ||||||
| Cash - end of period | $ | 1,713,637 | $ | 2,071,475 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid during the period for interest | $ | - | $ | 74,425 | ||||
| Cash paid during the period for income taxes | $ | 28,027 | $ | 18,849 | ||||
| Supplemental disclosure of non-cash financing activities: | ||||||||
| Right-of-use asset obtained in exchange for operating lease liability | $ | 424,286 | $ | 43,430 | ||||