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Certain Relationships and Related Transactions
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Certain Relationships and Related Transactions

15. Certain Relationships and Related Transactions

 

Certain Relationships and Related Transactions

 

The following is a summary of the related person transactions that Intellinetics has participated in at any time during the reporting period.

 

Notes Payable – Related Parties

 

See Note 9 for a summary of notes issued to related parties.

 

2022 Private Placement

 

The following related persons participated as investors a private placement of our securities, on the same terms as all other investors participating in the offering. We issued and sold (i) shares of common stock, at a price of $4.62 per share and (ii) 12% subordinated notes. The principal amount of the 12% subordinated notes, together with any accrued and unpaid interest thereon, become due and payable from February 28, 2023 to August 31, 2023.

 

Name of
Investor		  Relationship to Intellinetics  Number of
Shares
Purchased		   Amount of
Notes
Purchased		   Date of
Transaction		 
Michael N. Taglich  Beneficially owns more than 5% of the common stock of Intellinetics.   262,986    -    04/01/2022 
Robert F. Taglich  Beneficially owns more than 5% of the Common Stock of Intellinetics.   179,652   $600,000    04/01/2022 

 

Promoters and Certain Control Persons

 

William M. Cooke, a director of Intellinetics, is the Vice President of Investment Banking at Taglich Brothers, Inc. Robert F. Taglich and Michael N. Taglich, each beneficial owners of more than 5% of our common stock, are also both principals of Taglich Brothers, Inc.

 

We retained Taglich Brothers, Inc. on an exclusive basis to render financial advisory and investment banking services to us in connection with our acquisition of Yellow Folder. Pursuant to an Engagement Agreement, dated May 1, 2020, we paid Taglich Brothers, Inc. a success fee of $200,000 as a result of the successful completion of the acquisition of Yellow Folder.

 

We retained Taglich Brothers, Inc., as the exclusive placement agent for the 2022 private placement, as described above, pursuant to a Placement Agent Agreement. In connection with the 2022 private placement, we paid Taglich Brothers, Inc. $696,420, which represented an 8% commission based upon the gross proceeds of the 2022 private placement. In addition, for its services in the 2022 private placement, Taglich Brothers, Inc. was issued warrants to purchase 124,258 shares of common stock, which amount is equal to 10% of the shares sold in the 2022 private placement, which have an exercise price of $4.62 per share of common stock, are exercisable for a period of five years, contain customary cashless exercise and anti-dilution protection rights and are entitled to piggy-back registration rights.