Thank you, and good afternoon, everyone. My name is Joe Spain and I am the Chief Financial Officer for Intellinetics, Inc. I'm Pleased to Welcome You to our 2022 First Quarter Conference Call. Before we begin, I would like to remind listeners that during this conference call comments that we make may include forward-looking statements regarding Intellinetics, Inc that are not historical facts. These forward-looking statements are based on the current expectations and beliefs of management, and they are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results, we undertake 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 we issued today, as well as risks and uncertainties including the section under the caption Risk Factors and Management's Discussion Analysis of Financial Condition and Results of Operations in our annual report on Form 10-K, filed March 24, 2022, and other risks and uncertainties discussed in our Form 10-Q filed today. Also, please note that on the call today, we will discuss adjusted EBITDA and total contract value non-GAAP financial measures, when discussing the company's financial performance, we described total contract value and provided reconciliation of adjusted EBITDA to our GAAP financials in our earnings release. Our earnings release, including the non-GAAP measure reconciliation, is available on our website at Intellinetics. com/company -news. I would now like to turn the call over to Jim DeSocio, our President and CEO.

Thank you, Joe, and good afternoon, everyone. We achieved our goal in the first quarter of improved revenue numbers from Q1 of 2021 to Q1 of 2022 despite the headwinds we faced from Omicron lingering in a tight labor market. I'm especially pleased with our SaaS revenue growth of 33% over Q1 of 2021. As I mentioned in the last call, we've invested in expanding our marketing efforts and have added to our sales team. We're coming out of Q1 2022 with more sales headcount than we had last year. Our website consolidation and enhancements are paying off with increase leads from our new SCO strategy. This has resulted in a large increase in both our 90 to 120-day pipeline, and our contracts one. At the time of this call last year, 2021, year-to-date, we had closed a 131 contracts with an estimated total contract value of approximately $2.6 million. For this year, 2022, year-to-date, we closed a 154 contracts up 18% with an estimated total contract value of $3.9 million up a 150%. These orders are generally recognizable in revenue over one year or less, including last month, we closed the largest order in the history of the company for $1.8 million. Our wins or in our direct. And partner channels. In fact, our leading Europe partner Software Unlimited, has just this month reached a milestone of 150 orders with us. All together Software Unlimited channel customers generate $340,000 in annual recurring revenue. None of these results and initiatives I mentioned accrued our recent acquisition of Yellow Folder, which occurred April 1st, 2022. Yellow Folder's unaudited 2021 results included about $2.8 million in revenue, all recurring, and 100% of the k-12 mark. When adding Yellow Folder's 240 K-12 customers to our existing 260 K-12 customers, our footprint of 500…

Thanks, Jim. I will now review our financial results for the first quarter, 2022. For the revenue for the quarter ended March 31, 2022 increased 3% to $2.7 million as compared to $2.6 million for the same period last year. The following are the various components of revenue in the order presented on our statements of operations. Software revenue, which is comprised of perpetual license revenue, increased 572% for the quarter to $64,000 from $10,000 for the same period last year. The ongoing industry shift towards cloud solutions in lieu of on-premise solutions makes this small component of our overall revenue increasingly inconsistent and can make comparisons swing significantly as with this quarter. Recurring revenue, which is comprised of SaaS, including hosting revenue and software maintenance services revenue, increased 16% to 768,000 for the quarter from 664,000 for the same period last year. Within this category of recurring revenue, SaaS is growing more rapidly than software maintenance services at 33% versus minus 1% as expected given the continued shift toward cloud solutions. The slight decrease in software maintenance can be attributed to customers migrating from our on-premise solution to our cloud solution, which shifts the revenue from maintenance to SaaS. And in every migration case for Q1 resulted in higher overall revenues. Professional services revenue decreased 4% to 1.6 million for the quarter from 1.7 million for the same period last year. As a percentage of total revenue, professional services revenue decreased to 59% of total revenue for the quarter, compared to 63% of total revenue for the same period last year. The decrease is driven by Cogut on Macron absences at our graphic sciences subsidiary and also certain customers, including state agencies temporarily slowing demand as Omicron surged. Storage and retrieval services revenue decreased 8% to $283,000 for the…

Hi, guys. This is Harrison Howard.

Hi, Harry. How are you?

Okay. Congratulations. Great quarter. And I would like know if you're seeing the signs that the headwinds from Michigan are starting to abate and we can start to see, you know, the first quarter is really the lowest quarter in the revenue for the year.

Yes, the first quarter will definitely be the low point for the year, Howard. And it is starting to abate. Although we heard that they're slowly opening up the state a couple of days a week as from what we're finding out from our contacts. So they're not fully planning to open, which is what's happening all over the country, quite honestly. So we continue to work with the state. Our large contract was through the state, so things are certainly improving.

Okay. And in terms of the acquisition with the Yellow Folder, how is the integration going? You've mentioned that you had the one cross-selling deal. Are you seeing warrant the pipeline? And how does sales force suggest integrating and matching up with your expectations?

We're all 30 days in. We've had a lot going on with closing the year, closing the quarter. We are having a three-day strategy session with the entire management team and the Yellow Folder management team first week in June. But so far there's been no surprises. It's been in my opinion, a great acquisition based on other multiple I've seen out there for buying cure SaaS companies. So, so far so good. We've already started to build the joined pipeline. We're starting to doing some campaigns into the Yellow Folder customer base. So it's all just getting started, again, we're only 30 days in. But great opportunities for us, that's for sure.

Okay. Well, are you seeing any salary pressures for new hires or are you able to keep that on the controls?

So far we've been able to keep it under control, although it is a little slower with the hiring at this point, obviously again, something the entire country is experiencing. But we have not,-- we've raised salaries last year, but we have not had to do it recently for any new hires.

Okay. Well, thanks and keep up the great work.

Appreciate it, Howard, appreciate it. It's been going very well for us. Are there any other questions?

Howard, if you're done, if you wouldn't mind muting.

As I said, Joe and I are both very bullish on the company, a lot of good things, our pipeline is stronger than it's ever been. We're excited about the future and we appreciate the continued support of our long time shareholders, and our goal is to attract new investors as well by delivering ongoing, continued results. We're going to continue building our business model, which in turn builds shareholder value. Thank you for joining us today, and we look forward to speaking again on our next conference call. Thank you, everybody. Have a great day.

Goodbye.

Goodbye.