INTELLINETICS, INC.
For the period ended Jun 30, 2025. Filed Aug 13, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 13, 2025
INLX$3.82-5.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001641172-25-009938
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-13.
0001641172-25-023453
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 70 previous paragraphs and 72 current paragraphs.
39 unchanged; 18 reworded; 13 added; 13 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 13 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Our 2025 results reflect the impact of two unrelated factors affecting our revenue. First, our document conversion segment was negatively impacted by a temporary reduction in volume prior to our June 1, 2025 contract renewal with our largest customer. We have since taken orders to refill the backlog and expect production to resume at more historical levels. Second and to a much lesser degree, our document management segment faced longer lead times to secure orders due to economic uncertainty, primarily in our homebuilder construction and K-12 education vertical markets, hindering the growth of our software as a service solutions in those markets. Our gross margins remained stable by revenue source, increasing overall for both the second quarter 2025 and the six-month period 2025 over the respective 2024 periods primarily from a favorable mix of revenues shift.
Current report
Revenues were down for the second quarter and six-month period 2025 by $630,780, or 13.6%, and $890,519, or 9.7%, respectively, primarily driven by a reduction in professional services in our document conversion segment. Professional services were negatively impacted by a temporary reduction in volume prior to our June 1, 2025 contract renewal with our largest customer. This reduction more than offset our SaaS growth.
Current report
Our total cost of revenues during the second quarter 2025 decreased by $354,358, or 21.6%, from second quarter 2024 and decreased by $583,653, or 18.0%, during the six-month period 2025 from the six-month period 2024. Our cost of revenues for our Document Management segment increased by $48,698, or 20.3%, in the second quarter 2025 compared to the second quarter 2024 and increased $43,016, or 8.5%, in the six-month period 2025 compared to the six-month period 2024 increasing in line with expectations relative to the revenue growth. Our cost of revenues for our Document Conversion segment decreased by $403,056, or 28.8%, in the second quarter 2025 compared to the second quarter 2024 and decreased by $626,669, or 22.9%, during the six-month period 2025 compared to the six-month period 2024 in proportion to the decreased work volume.
Current report
Our overall gross profit increased to 68.0% in the second quarter 2025 from 64.7% in the second quarter 2024 and increased to 67.8% during the six-month period 2025 from 64.5% for the six-month period 2024. The mix of revenues by source contributed favorably; with more of the higher margin SaaS revenue relative to the lower margin professional services revenue compared to 2024. Within each revenue line item, margins were stable.
Current report
Cost of software as a service, or SaaS, consists primarily of technical support personnel, hosting services, and related costs. Cost of software as a service during the second quarter 2025 increased by $29,465, or 13.5%, from the second quarter 2024 and increased by $28,602, or 6.6%, during the six-month period 2025 from the six-month period 2024. This increase in the cost of SaaS is in line with the revenue growth, with normal fluctuations based on support demand volumes. Gross profit in the second quarter 2025 decreased to 84.3% compared to 84.5% in the second quarter 2024 and increased to 85.2% during the six-month period 2025 compared to 84.5% during the six-month period 2024.
Current report
General and administrative expenses during the second quarter 2025 increased by $246,425, or 12.2%, over the second quarter 2024, and increased in the six-month period 2025 by $549,966, or 13.2%, over the six-month period 2024, primarily related to incremental share-based compensation expense of $200,641 over the six-month period 2024 and investments made in order to scale, including: our expanded System and Organization Controls 2 (SOC2) process with additional monitoring and controls, expanding our development team in order to accelerate SaaS solution enhancements, and some one-time items such as recruiting fees as we expand our team.
Current report
Additionally, share-based compensation expense in total continues to be a significant portion of general and administrative expenses, amounting to $965,471 in the six-month period 2025 and $764,830 in the six-month period 2024. A portion of share-based compensation expense pertains to payments to taxing authorities in connection with shares directly withheld from employees, and is reported in our condensed consolidated statements of cash flow under cash flows from financing activities.
Current report
In total, our general and administrative expenses in our Document Management segment increased to $1,225,057 in the second quarter 2025 compared to $1,204,509 in the second quarter 2024, and increased to $2,572,778 in the six-month period 2025 compared to $2,349,541 in the six-month period 2024. In our Document Conversion segment, our general and administrative expenses increased to $1,047,164 in the second quarter 2025 compared to $821,287 in the second quarter 2024,and increased to $2,131,477 in the six-month period 2025 compared to $1,804,748 in the six-month period 2024.
Current report
Depreciation and amortization during the second quarter 2025 increased by $32,804, or 11.9%, over the second quarter 2024 and increased by $76,479, or 14.2%, during the six-month period 2025 over the six-month period 2024, as a result of increased amortization of capitalized software costs and depreciation on upgraded system infrastructure assets.
Current report
Interest expense decreased by $37,944, or 39.1%, in the second quarter 2025 as compared to the second quarter 2024, and decreased by $135,172, or 57.0% during the six-month period 2025 as compared to the six-month period 2024. The decrease resulted from reduced interest resulting from principal repayments in March, June, and August 2024 and culminating in June 2025 with full repayment of notes payable.
Current report
At-the-Market Offering
Current report
We maintain an effective registration statement (the “Registration Statement”) covering up to $12.9 million of common stock, warrants, and units. The Registration Statement includes a prospectus covering the offer, issuance and sale of up to $10.0 million in our common stock from time to time in “at-the-market offerings” pursuant to an At the Market Agreement (the “ATM Program”) with Lucid Capital Markets, LLC (“Lucid”) as our sales agent. We have sold 139,945 and 5,993 shares of our common stock pursuant to the ATM Program during the second quarter and the period of July 1, 2025 through the filing date of this Quarterly Report, respectively, and received aggregate net proceeds totaling $174,350. As of the filing date of this Quarterly Report, 2025, approximately $8.2 million remained available under the ATM Program.
Current report
Cash Provided by Operating Activities
Removed paragraphs (13)
Previous report
Our 2025 results reflected our current strategy to grow our SaaS revenue, including our investments in sales and marketing and related initiatives. Revenue growth in SaaS was more than offset by a shortfall in Professional Services, driven by reduced project work, primarily due to timing of large scanning projects. Cost of revenues contracted more than overall revenues, generating improved gross profits (revenues less cost of revenues) as a percentage of revenue.
Previous report
Our total revenues in the first quarter 2025 decreased by $259,739, or 5.8%, from our first quarter 2024 revenues, driven primarily by project timing in our professional services revenues, which decreased 13.2% year over year for the first quarter 2025, and more than offset our software as a service revenues, which grew 9.8% year over year. Slight erosion in revenues for Software maintenance services and Storage and retrieval services, both in line with expectations, exacerbated the impact of the professional services decrease.
Previous report
Our total cost of revenues during the first quarter 2025 decreased by $229,295, or 14.3%, from 2024. Our cost of revenues for our Document Management segment decreased by $5,682, or 2.2%, primarily due to higher margin professional services projects, where we expended less in costs to service the increased professional services revenue. Our cost of revenues for our Document Conversion segment decreased by $223,613, or 16.6%, in the first quarter 2025 compared to 2024 primarily due to the decreased demand, and also benefited from higher margin projects.
Previous report
The following tables sets forth our gross profit by reportable segment and revenue source for the periods indicated:
Previous report
Our overall gross profit increased to 67.6% in the first quarter 2025 from 64.3% in 2024. The increase in the mix of software as a service revenue was the principal driver of the increase, further enhanced by continued overall strong margins in the Document Management segment, and by margin improvement in the Document Conversion segment, driven by the Professional services mix improvement from higher margin projects.
Previous report
Cost of software as a service, or SaaS, consists primarily of technical support personnel, hosting services, and related costs. Cost of software as a service during the first quarter 2025 decreased by $863, or 0.4%, from the first quarter 2024. Cost of software as a service is impacted by increasing our implementations team and support desk staff, the volume of support calls, and periodic improvements to infrastructure, which did not materially change in the first quarter 2025. Our gross margin in the first quarter 2025 increased to 86.1% compared to 84.6% in the first quarter 2024.
Previous report
General and administrative expenses increased $303,541 or 14.3% in the first quarter 2025, primarily related to investments made in order to scale, primarily our expanded System and Organization Controls 2 (SOC2) process with additional monitoring and controls, plus some timing items such as project-based legal fees and recruiting fees as we expand our team. These increases were reflected in both our Document Management segment, in which our general and administrative expenses increased to $1,347,720 in first quarter 2025 from $1,145,031 in 2024, and also in our Document Conversion segment, in which our general and administrative expenses increased to $1,084,314 in first quarter 2025 from $983,462 in 2024. Additionally, share-based compensation expense, which is non-cash, continues to be a significant portion of general and administrative expenses, amounting to $536,763 in first quarter 2025 and $513,357 in first quarter 2024.
Previous report
Depreciation and amortization during the first quarter 2025 increased by $43,675, or 16.5%, over the first quarter 2024 driven by both increased amortization on capitalized software, which has increased in recent quarters as we bring new functionality to our payables automation solution, and by purchases of server hardware and network routers in late 2024 to update our infrastructure.
Previous report
Interest expense was $43,006 during the first quarter 2025, net of $7,692 of interest income, as compared with $140,234 during the first quarter 2024, representing a decrease of $97,228 or 69.3%. The decrease resulted from reduced interest resulting from early principal repayments of the 2022 Notes of $500,000 on March 30, 2024, $325,000 on June 30, 2024, and $800,000 on August 30, 2024.
Previous report
Our future cash resources and capital requirements may vary materially from those now planned. For example, from time to time we evaluate opportunities to expand our current offerings or to develop new products and services and technology or to acquire or invest in complementary businesses, which could increase our capital needs. Our ability to meet our capital needs in the short term will depend on many factors, including maintaining and enhancing our operating cash flow and successfully retaining and growing our client base in the midst of continuing uncertainty regarding inflation and economic growth, the timing of sales, the success of our new business partners expanding our product and service lines, the mix of products and services, unanticipated events over which we have no control increasing our operating costs or reducing our revenues beyond our current expectations, and other factors as discussed in this Quarterly Report.
Previous report
We believe we could seek additional debt or equity financing on acceptable terms. While we are confident in our ability to satisfy our current debt requirements, we also believe that our capital resources, business operations and financial results would allow us to seek a full or partial refinancing or other appropriate modification of the current notes payable, such as an extension or conversion to equity, if we deem necessary or desirable. However, our ability to obtain additional capital, or to modify our existing debt arrangements, when needed or desired, will depend on many factors, including general economic and market conditions, our operating performance and investor and lender sentiment, and thus cannot be assured.
Previous report
As of March 31, 2025, our outstanding long-term indebtedness consisted of the 2022 Notes issued to accredited investors on April 1, 2022, with an aggregate outstanding principal balance of $1,339,500 and accrued interest of $0.
Previous report
Cash Provided by and Used in Operating Activities
Reworded paragraphs (18)
Previous wording
The following discussion and analysis of our financial conditions and results of operations should be read together with our condensed consolidated financial statements and notes thereto included in Part I, Item 1, “Financial Statements,” of this Quarterly Report on Form 10-Q, and with the condensed consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Historical results and percentage relationships among any amounts in the financial statements are not necessarily indicative of trends in operating results for any future periods. Any forward-looking statements in this discussion and analysis should be read in conjunction with the information set forth in “Note Regarding Forward-Looking Statements” elsewhere herein. In this Quarterly Report, we sometimes refer to the three month period ended March 31, 2025 as the first quarter 2025, and to the three month period ended March 31, 2024 as the first quarter 2024.
Current wording
The following discussion and analysis of our financial conditions and results of operations should be read together with our condensed consolidated financial statements and notes thereto included in Part I, Item 1, “Financial Statements,” of this Quarterly Report on Form 10-Q, and with the condensed consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Historical results and percentage relationships among any amounts in the financial statements are not necessarily indicative of trends in operating results for any future periods. Any forward-looking statements in this discussion and analysis should be read in conjunction with the information set forth in “Note Regarding Forward-Looking Statements” elsewhere herein. In this Quarterly Report, we sometimes refer to the three and six-month periods ended June 30, 2025 as the second quarter 2025 and the six-month period 2025 respectively, and to the three and six-month periods ended June 30, 2024 as the second quarter 2024 and the six-month period 2024.
Previous wording
There has been no material change during the first quarter 2025 to the major qualitative and quantitative factors we consider in the evaluation of our operating results as set forth in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations —How We Evaluate our Business Performance and Opportunities” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Current wording
There has been no material change during the six-month period 2025 to the major qualitative and quantitative factors we consider in the evaluation of our operating results as set forth in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations —How We Evaluate our Business Performance and Opportunities” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Previous wording
Below are our key financial results for the first quarter 2025 (consolidated unless otherwise noted):
Current wording
Below are our key financial results for the second quarter 2025 (consolidated unless otherwise noted):
Previous wording
Volatility from increased trade protectionism is likely to have a minimal direct impact on us because we consume relatively little in raw materials. However, we have customers in industries that are likely to be affected, such as homebuilding and construction. Any industry-specific or macroeconomic downturn could affect our customers’ and potential customers’ budgets for technology procurement and stall our growth plans. However, absent economic disruptions, and based on the current trend of our business operations and our continued focus on strategic initiatives to grow our customer base, we believe in the strength of our brand and our focus on our strategic priorities.
Current wording
Volatility from increased trade protectionism is likely to have a minimal direct impact on us because we consume relatively little in raw materials. However, we have customers in industries that may be affected, such as homebuilding and construction. Additionally, the homebuilding and construction industries continue to be affected by a higher interest rate environment. Any industry-specific or macroeconomic downturn could affect our customers’ and potential customers’ budgets for technology procurement and stall our growth plans. However, absent economic disruptions, and based on the current trend of our business operations and our continued focus on strategic initiatives to grow our customer base, we believe in the strength of our brand and our focus on our strategic priorities.
Previous wording
The following tables sets forth our revenues by revenue source and segment for the periods indicated:
Current wording
The following table sets forth our revenues by revenue source and segment for the periods indicated:
Previous wording
We provide access to our software solutions as a service, accessible through the internet. Our customers typically enter into our software as a service agreement for periods of one year or more. Under these agreements, we generally provide access to the applicable software, data storage and related customer assistance and support. Revenues from the sale of software as a service, which are reported as part of our Document Management segment increased by $137,016, or 9.8% in the first quarter 2025 compared to 2024. This increase was primarily the result of new payables automation customers.
Current wording
We provide access to our software solutions as a service, accessible through the internet. Our customers typically enter into our software as a service agreement for periods of one year or more. Under these agreements, we generally provide access to the applicable software, data storage and related customer assistance and support. Revenues from the sale of software as a service, which are reported as part of our Document Management segment increased by $176,513, or 12.6%, in the second quarter 2025 compared to the second quarter 2024 and increased by $313,529, or 11.2% in the six-month period 2025 compared to the six-month period 2024. This increase was primarily the result of new payables automation customers.
Previous wording
Professional services revenues primarily consist of revenues from document scanning and conversion services, plus consulting, discovery, training, and advisory services to assist customers with document management needs. These revenues include arrangements that do not involve the sale of software. Of our $2,158,315 in professional services revenues during the first quarter 2025, $2,074,363 was derived from our Document Conversion operations and $83,952 was derived from our Document Management operations. Our overall professional services revenues decreased by $327,142, or 13.2%, in the first quarter 2025 compared to 2024. This decrease is the result of reduced scanning projects in our Document Conversion segment, due to timing of projects.
Current wording
Professional services revenues primarily consist of revenues from document scanning and conversion services, plus consulting, discovery, training, and advisory services to assist customers with document management needs. These revenues include arrangements that do not involve the sale of software. Of our professional services revenues during the second quarter 2025 and six-month period 2025, $1,806,656 and $3,881,019, respectively, were derived from our Document Conversion operations and $92,963 and $176,915, respectively, were derived from our Document Management operations. Our overall professional services revenues decreased by $777,672, or 29.0%, in the second quarter 2025 compared to the second quarter 2024 and decreased by $1,104,814, or 21.4%, in the six-month period 2025 compared to the six-month period 2024. This decrease is the result of reduced scanning projects in our Document Conversion segment, due to timing of projects, which experienced an unusually low ebb in backlog that corresponded with the expiry of our prior contract with our largest customer, prior to the renewal on June 1, 2025. We have since taken orders to refill the backlog and expect production to resume at more historical levels.
Previous wording
The following tables sets forth our cost of revenues by revenue source and segment for the periods indicated:
Current wording
The following table sets forth our cost of revenues, by revenue source and segment, for the periods indicated:
Previous wording
Cost of professional services consists primarily of compensation for employees performing the document conversion services, compensation of our software engineers and implementation consultants and related third-party costs. Cost of professional services decreased in the first quarter 2025 by $249,122, or 19.3% over 2024, due to reduced staffing levels in our Document Conversion segment, to support our corresponding decreased revenues, and higher margin projects requiring less labor. Further, the Document Management projects in the first quarter 2025 required less labor to complete than in 2024. Consolidated, our gross margin for professional services increased to 51.8% during the first quarter 2025 compared to 48.1% in 2024. Gross margins related to consulting services in Document Management and digital transformation services in Document Conversion may vary widely, depending upon the nature of the project and the amount of labor required to complete a project.
Current wording
Cost of professional services consists primarily of compensation for employees performing the document conversion services, compensation of our software engineers and implementation consultants and related third-party costs. Cost of professional services during the second quarter 2025 decreased by $381,218, or 28.3%, from the second quarter 2024 and decreased in the six-month period 2025 by $630,340, or 23.9%, over the six-month period 2024. The decrease in cost of sales was in line with the decrease in revenues, driven by our Document Conversion segment. Gross margins related to consulting services in Document Management and digital transformation services in Document Conversion may vary widely, depending upon the nature of the project and the amount of labor required to complete a project, but remained stable for the periods reported. Our gross margins in professional services decreased to 49.2% in the second quarter 2025 compared to 49.5% in the second quarter 2024 and increased to 50.6% during the six-month period 2025 compared to 48.9% in the six-month period 2024.
Previous wording
Sales and marketing expenses during the first quarter 2025 increased by $272,419, or 50.3%, from the first quarter 2024, driven by the expansion of our sales team as part of our investments intended to accelerate our sales revenues, and further amplified by an open position in 2024.
Current wording
Sales and marketing expenses during the second quarter 2025 increased by $124,933, or 23.6%, from the second quarter 2024 and increased by $397,352, or 37.1%, during the six-month period 2025 over the six-month period 2024. The increases are driven by the expansion of our sales team as part of our investments intended to accelerate our sales revenues.
Previous wording
We have financed our operations primarily through a combination of cash on hand, cash generated from operations, borrowings from third parties and related parties, and proceeds from private sales of equity. Since 2012, we have raised a net total of approximately $21.6 million in cash through issuances of equity securities and a further $5.0 million in cash through issuances of debt securities, of which all but approximately $1.3 million has been repaid.
Current wording
We have financed our operations primarily through a combination of cash on hand, cash generated from operations, borrowings from third parties and related parties, and proceeds from public and private sales of equity. Since 2012, we have raised a net total of approximately $23.1 million in cash through issuances of equity securities and a further $5.0 million in cash through issuances of debt securities, of which all have been repaid as of June 30, 2025.
Previous wording
In recent years we engaged in several actions that significantly improved our liquidity and cash flows, including (i) effective October 1, 2023 through May 30, 2025, securing a renewal contract with our largest customer, containing an estimated net rate increase for all non-fixed pricing projects of approximately 21%, compared to the current rates in effect for the contract period commencing June 1, 2018, (ii) on March 13, 2024, we agreed with the note holders to amend the Unrelated Notes and Related Notes to extend the maturity date to December 31, 2025, for the remaining $807,331 in 2022 Unrelated Notes and $532,169 of the 2022 Related Notes, and (iii) on April 16, 2025 we filed a shelf Registration Statement on Form S-3 with the SEC to facilitate potential future equity capital raising. As of the date of this report, we expect to secure a renewal of our contract with our largest customer, which would be effective from June 1, 2025 through May 31, 2030, but such renewal remains subject to final customer approval.
Current wording
In recent years we engaged in several actions that significantly improved our liquidity and cash flows, including (i) effective June 1, 2025 through May 31, 2030, securing a renewal contract with our largest customer, (ii) on March 13, 2024, we agreed with the note holders to amend the Unrelated Notes and Related Notes to extend the maturity date to December 31, 2025, for the remaining $807,331 in 2022 Unrelated Notes and $532,169 of the 2022 Related Notes, and (iii) on May 28, 2025, we commenced an at-the-market offering, discussed below.
Previous wording
At March 31, 2025, we had $2.1 million in cash and cash equivalents, working capital deficit of $1.3 million, of which the largest liabilities include $2.9 million in deferred revenues and short-term debt relating to our notes payable of approximately $1.3 million due December 31, 2025. Additionally, at March 31, 2025 and December 31, 2024 we had approximately $0.9 million and $1.3 million, respectively, in unbilled accounts receivable. Due to certain customer terms regarding acceptance for certain projects, we have a number of projects where all of the document conversion work is completed, and the associated revenue has been recognized, but we are unable to invoice until the customer has received and approved the images. The balance is also affected by the timing of completion of major projects. We have initiatives in place to further improve process efficiencies and invoice more promptly. Based on our current plans and assumptions, we believe our capital resources, including our cash and cash equivalents, along with funds expected to be generated from our operations and potential financing options, will be sufficient to meet our anticipated cash flow needs for at least the next 12 months, including to satisfy our expected working capital needs and our capital and debt service commitments over that period.
Current wording
At June 30, 2025, we had $2.1 million in cash and cash equivalents, working capital deficit of $0.1 million, of which the largest liabilities include $2.6 million in deferred revenues. Additionally, at June 30, 2025 and December 31, 2024 we had approximately $1.1 million and $1.3 million, respectively, in unbilled accounts receivable. Due to certain customer terms regarding acceptance for certain projects, we have a number of projects where all of the document conversion work is completed, and the associated revenue has been recognized, but we are unable to invoice until the customer has received and approved the images. The balance is also affected by the timing of completion of major projects. We have initiatives in place to further improve process efficiencies and invoice more promptly. Based on our current plans and assumptions, we believe our capital resources, including our cash and cash equivalents, along with funds expected to be generated from our operations and potential financing options, will be sufficient to meet our anticipated cash flow needs for at least the next 12 months. However, our future cash resources and capital requirements may vary materially from those now planned.
Previous wording
See Note 6 and Note 7 to our condensed consolidated financial statements included in Part 1, Item 1 of this Quarterly Report for further information on the 2022 Notes.
Current wording
On June 18, 2025, we repaid the remaining outstanding principal and interest on our 2022 Notes. See Note 6 and Note 7 to our condensed consolidated financial statements included in Part 1, Item 1 of this Quarterly Report for further information on the 2022 Notes.
Previous wording
Net cash used in operating activities during the first quarter 2025 was $110,353, primarily attributable to the net income adjusted for non-cash expenses of $839,743, an increase in operating assets of $44,905 and a decrease in operating liabilities of $177,626. Net cash provided by operating activities during the first quarter 2024 was $611,766, primarily attributable to the net income adjusted for non-cash expenses of $770,617, an increase in operating assets of $40,447 and an increase in operating liabilities of $56,310.
Current wording
Net cash provided by operating activities during the six-month period 2025 was $112,521, primarily attributable to the net income adjusted for non-cash expenses of $1,698,350, a decrease in operating assets of $424,943 and a decrease in operating liabilities of $715,617. Net cash provided by operating activities during the six-month period 2024 was $1,788,381, primarily attributable to the net income adjusted for non-cash expenses of $1,433,368, a decrease in operating assets of $286,249 and an increase in operating liabilities of $168,428.
Previous wording
Net cash used in investing activities in the first quarter 2025 was $223,934, including $102,854 related to capitalized internal use software. Net cash used in investing activities in the first quarter 2024 was $127,932, including $109,621 related to capitalized internal use software.
Current wording
Net cash used in investing activities in the six-month period 2025 was $471,904, including $209,171 in capitalized software. Net cash used in investing activities in the six-month period 2024 was $398,766, including $198,051 in capitalized software.
Previous wording
Net cash used in financing activities during 2025 amounted to $16,694 in the principal portion of a finance lease liability and $12 related to the exercise of stock warrants. Net cash used in financing activities during 2024 amounted to $500,000 in repayment of notes payable, and $14,138 in the principal portion of finance lease liabilities.
Current wording
Net cash used in financing activities during the six-month period 2025 amounted to $58,378, including $1,716,957 in gross proceeds from the issuance of common stock, offset by $118,629 in costs paid for issuance of common stock, $1,339,500 in repayment of notes payable, $283,411 related to the exercise of share-based compensation and warrants, and $33,795 in the principal portion of payments on the finance lease liabilities. Net cash used by financing activities during the six-month period 2024 amounted to $825,000 in repayment of notes payable, and $29,668 in the principal portion of payments on the finance lease liabilities.
Previous wording
Our critical accounting policies and estimates are set forth in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There were no material changes to our critical accounting policies and estimates during the first quarter 2025.
Current wording
Our critical accounting policies and estimates are set forth in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There were no material changes to our critical accounting policies and estimates during the second quarter 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
ITEM 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Current report — wording carried from elsewhere
Below are our key financial results for the six-month period 2025 (consolidated unless otherwise noted):