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Stockholders’ Equity
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders’ Equity

10. Stockholders’ Equity

 

Description of Authorized Capital

 

We are authorized to issue up to 25,000,000 shares of common stock with $0.001 par value. The holders of our common stock are entitled to one vote per share. The holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors out of legally available funds. However, the current policy of the Board of Directors is to retain earnings, if any, for the operation and expansion of the business. Upon liquidation, dissolution or winding-up of Intellinetics, the holders of common stock are entitled to share ratably in all assets legally available for distribution.

 

Common Stock

 

As of December 31, 2024, 4,249,735 shares of common stock were issued and outstanding, 255,958 shares of common stock were reserved for issuance upon the exercise of outstanding warrants, 582,976 shares of common stock were reserved for issuance under our 2015 Equity Incentive Plan, as amended (the “2015 Plan”), and our 2024 Equity Incentive Plan (the “2024 Plan”), and 110,136 shares were reserved for issuance under our 2023 Non-Employee Director Compensation Plan.

 

 

Private Placement 2022

 

On April 1, 2022, we entered into a Securities Purchase Agreement with certain accredited investors, pursuant to which we issued and sold (i) 1,242,588 shares of the Company’s Common Stock, at a price of $4.62 per share, for aggregate gross proceeds of $5,740,756 and (ii) $2,964,500 in 12% Subordinated Notes, for aggregate gross proceeds of $8,705,256 for the combined private placement. We used a portion of the net proceeds of the offering to finance the acquisition of Yellow Folder, and used the remaining net proceeds for working capital and general corporate purposes, including debt reduction.

 

The following table describes the shares and warrants issued as part of our 2022 private placement:

 

Issuance of Common Stock  Issue Date  Shares
Issued		   Price per
share		   Warrants
Issued		   Warrant
Exercise
Price		   Warrant
Fair
Value		 
Private Placement 2022  April 1, 2022   1,242,588   $4.62    124,258   $4.62   $3.91 

 

Amortization of the debt issuance costs for the Private Placement 2022 offering was recorded at $152,604 and $155,724, for the years ended December 31, 2024 and 2023. 

 

Warrants

 

The following sets forth the warrants to purchase our common stock that were outstanding as of December 31, 2024:

 

 

Warrants Outstanding   Warrant
Exercise Price		   Warranty Expiry
 124,258   $4.62   March 30, 2027 (1)
 95,500   $4.00   March 30, 2027 (1)
 16,000   $9.00   March 30, 2027 (1)
 17,200   $12.50   March 30, 2027 (1)
 3,000   $15.00   March 30, 2027 (2)

 

(1)Issued to the placement agent in connection with private placements of our convertible promissory notes.
(2)Issued to certain 5% stockholders.