Intellinetics, Inc.

Greetings and welcome to the IntelliNetics first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Roger Grabner, Director of Marketing. Thank you. You may begin.

Thank you and good afternoon, everyone. I'm pleased to welcome you to Intellianetics 2025 first quarter conference call. Before we begin, I would like to remind listeners that during this conference call, comments made by management may include forward-looking statements regarding Intellianetics, Inc. that are not historical facts. These forward-looking statements are based on current expectations and beliefs of management and they are subject to risk and uncertainties that could cause such statements to differ materially from actual future events or results. Intellinetics Inc. undertakes no duty to update any forward-looking statements. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release issued today, as well as risk and uncertainties included in the section under the caption risk factors and management discussion and analysis of financial conditions and results of operations. And Intellinetic's annual report on Form 10-K or the quarterly report on Form 10-Q filed today. Also, please note that on the call today, management will discuss non-GAAP financial measures such as adjusted EBITDA and total contract value. Non-GAAP financial measures are not limited are not intended to be considered an isolation or a substitute for results prepared in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today. With all that said, I would like now to turn the call over to Jim DiSocio, Intellinetics President and CEO. Jim, the call is yours.

Thank you, Roger. Our Payables Automation solution provides an extremely quick return on investment for our customers and offers our company a clear, organic growth opportunity to rapidly grow our SaaS revenue over the next four to five years, just with continuing a successful rollout with existing partners. We view Payables Automation as a transformative opportunity for our company, and we plan to continue to make investments to position the product for as rapid an adoption as we can drive. We have more reference accounts than we ever have, and that number will grow quarterly. With our home builder, ERP partner, we closed two orders in February and two in March. And with our K-12 partner, we closed three more in the first quarter. In addition to sales and marketing initiatives, we plan to enhance our development capabilities to bring features to market more quickly. and to bring our solutions to new ERP partnerships, which become additional ecosystems for happy customers. Because we have a solution with a very rapid and identifiable payback, with an identifiable market that dwarfs our historic performance, Now is the time for us to invest in scaling our business as we transform into a predominantly SaaS-driven company with a diverse, growing suite of solutions for customers in the digital transformation space. We've continued in 2025 to strengthen and institutionalize our sales tools and processes. For example, by hiring a sales engineer, senior payables automation solutions consultant, and VP of sales, all of whom have significant experience with both the solutions we offer and markets we serve. We've also made investments in IT infrastructure and controls for SOC 2 certification. Believing certification offers significant benefits, including increased customer trust and loyalty, improved cybersecurity risk mitigation, and creates a competitive advantage over non-compliant SaaS providers. As expected, and called out in prior communications, these investments reduced our EBITDA temporarily. We believe that these investments will bring additional revenue opportunities that should exceed the speed and be accretive, exceed the spend and be accretive at some point in later 2025 and into 2026. While our SaaS business continues to grow, our professional services business had a weak quarter. Shareholders should know that orders have already picked up this quarter. Earlier this quarter, we achieved our biggest single order intake week in years. The record-breaking week for over 2.4 million of total contract value in new project contracts was driven by numerous state agencies and commercial clients, with revenue expected to be recognized over the next six to seven months as work is completed. In addition, last week we received authorization to begin work and therefore begin revenue recognition on an $880,000 deal, total contract value, multi-month scanning project that was sold in Q4 of 2024, but had document pickup delayed by the client. These projects, so we just started picking up that work this week. These projects will enable us to resume work at more historical levels in the coming months. Hopefully, recent political events that created uncertainty in the first part of this year are moving behind us, and we will enjoy more of the tailwind our products and services ROI engender. At this time, I would like to turn the call over to our Chief Financial Officer, Joe Spain. Thank you, Jim. Joe?