Intellinetics (INLX) 10-Q 16 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 12, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-31671
Entity Registrant Name	INTELLINETICS, INC.
Entity Central Index Key	0001081745
Entity Tax Identification Number	87-0613716
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	2190 Dividend Drive
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43228
City Area Code	(614)
Local Phone Number	921-8170
Title of 12(b) Security	None.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,823,072

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash	$ 1,140,631	$ 1,907,882
Accounts receivable, net	1,001,625	792,380
Accounts receivable, unbilled	512,075	523,522
Parts and supplies, net	60,922	79,784
Prepaid expenses and other current assets	252,661	162,166
Total current assets	2,967,914	3,465,734
Property and equipment, net	1,010,312	698,752
Right of use assets	3,832,916	2,641,005
Intangible assets, net	1,076,733	1,184,971
Goodwill	2,322,887	2,322,887
Other assets	27,284	31,284
Total assets	11,238,046	10,344,633
Current liabilities:
Accounts payable	163,869	141,823
Accrued compensation	458,567	271,889
Accrued expenses, other	152,370	131,685
Lease liabilities - current	606,350	518,531
Deferred revenues	942,947	996,131
Deferred compensation	100,828	100,828
Earnout liabilities - current	923,109	877,522
Accrued interest payable - current		5,941
Notes payable - current		580,638
Total current liabilities	3,348,040	3,624,988
Long-term liabilities:
Notes payable - net of current portion	1,649,324	1,802,184
Lease liabilities - net of current portion	3,304,366	2,196,951
Earnout liabilities - net of current portion	643,369	1,566,478
Total long-term liabilities	5,597,059	5,565,613
Total liabilities	8,945,099	9,190,601
Stockholders’ equity:
Common stock, $0.001 par value, 25,000,000 shares authorized; 2,823,072 and 2,810,865 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	2,823	2,811
Additional paid-in capital	24,251,172	24,147,488
Accumulated deficit	(21,961,048)	(22,996,267)
Total stockholders’ equity	2,292,947	1,154,032
Total liabilities and stockholders’ equity	$ 11,238,046	$ 10,344,633

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	2,823,072	2,810,865
Common stock, shares outstanding	2,823,072	2,810,865

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Total revenues	$ 2,909,646	$ 1,836,182	$ 5,544,865	$ 3,049,846
Cost of revenues:
Total cost of revenues	1,095,579	664,789	2,125,894	1,133,209
Gross profit	1,814,067	1,171,393	3,418,971	1,916,637
Operating expenses:
General and administrative	1,058,061	844,657	2,097,087	1,688,860
Change in fair value of earnout liabilities	7,261		77,211
Significant transaction costs		175,673		636,440
Sales and marketing	341,595	229,873	631,906	473,562
Depreciation and amortization	101,432	86,750	196,316	114,842
Total operating expenses	1,508,349	1,336,953	3,002,520	2,913,704
Income (loss) from operations	305,718	(165,560)	416,451	(997,067)
Other income (expense)
Gain on extinguishment of debt			845,083	287,426
Interest expense, net	(113,271)	(116,796)	(226,315)	(407,226)
Total other income/expense	(113,271)	(116,796)	618,768	(119,800)
Income (loss) before income taxes	192,447	(282,356)	1,035,219	(1,116,867)
Income tax benefit				188,300
Net income/loss	$ 192,447	$ (282,356)	$ 1,035,219	$ (928,567)
Basic and diluted net income (loss) per share:	$ 0.07	$ (0.10)	$ 0.37	$ (0.46)
Diluted net income (loss) per share:	$ 0.06	$ (0.10)	$ 0.33	$ (0.46)
Weighted average number of common shares outstanding - basic and diluted	2,823,072	2,810,865	2,822,870	1,998,356
Weighted average number of common shares outstanding - diluted	3,104,334	2,810,865	3,105,602	1,998,356
Sale of Software [Member]
Revenues:
Total revenues	$ 5,598	$ 9,674	$ 15,192	$ 103,774
Cost of revenues:
Total cost of revenues	2,122	5,357	6,359	43,659
Software as a Service [Member]
Revenues:
Total revenues	376,154	248,693	699,880	474,687
Cost of revenues:
Total cost of revenues	91,781	71,281	168,121	143,796
Software Maintenance Services [Member]
Revenues:
Total revenues	335,073	314,111	675,519	575,354
Cost of revenues:
Total cost of revenues	22,272	31,569	46,660	78,085
Professional Services [Member]
Revenues:
Total revenues	1,897,780	1,045,679	3,550,243	1,605,709
Cost of revenues:
Total cost of revenues	861,267	514,036	1,695,505	811,132
Storage and Retrieval Services [Member]
Revenues:
Total revenues	295,041	218,025	604,031	290,322
Cost of revenues:
Total cost of revenues	$ 118,137	$ 42,546	$ 209,249	$ 56,537

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 371	$ 14,419,437	$ (20,796,066)	$ (6,376,258)
Beginning balance, shares at Dec. 31, 2019	370,497
Stock Issued to Directors	$ 16	57,484		57,500
Stock Issued to Directors, shares	16,429
Stock Issued	$ 955	3,819,045		3,820,000
Stock Issued, shares	955,000
Stock Issued for Convertible Notes	$ 1,469	5,728,566		5,730,035
Stock Issued for Convertible Notes, shares	1,468,939
Equity Issuance Costs		(307,867)		(307,867)
Note Offer Warrants		372,053		372,053
Stock Option Compensation		18,683		18,683
Net Income (loss)			(928,567)	(928,567)
Ending balance, value at Jun. 30, 2020	$ 2,811	24,107,401	(21,724,633)	2,385,579
Ending balance, shares at Jun. 30, 2020	2,810,865
Beginning balance, value at Mar. 31, 2020	$ 2,811	24,100,291	(21,442,277)	2,660,825
Beginning balance, shares at Mar. 31, 2020	2,810,865
Stock Option Compensation		7,110		7,110
Net Income (loss)			(282,356)	(282,356)
Ending balance, value at Jun. 30, 2020	$ 2,811	24,107,401	(21,724,633)	2,385,579
Ending balance, shares at Jun. 30, 2020	2,810,865
Beginning balance, value at Dec. 31, 2020	$ 2,811	24,147,488	(22,996,267)	1,154,032
Beginning balance, shares at Dec. 31, 2020	2,810,865
Stock Issued to Directors	$ 12	57,488		57,500
Stock Issued to Directors, shares	12,207
Stock Option Compensation		46,196		46,196
Net Income (loss)			1,035,219	1,035,219
Ending balance, value at Jun. 30, 2021	$ 2,823	24,251,172	(21,961,048)	2,292,947
Ending balance, shares at Jun. 30, 2021	2,823,072
Beginning balance, value at Mar. 31, 2021	$ 2,823	24,228,074	(22,153,495)	2,077,402
Beginning balance, shares at Mar. 31, 2021	2,823,072
Stock Option Compensation		23,098		23,098
Net Income (loss)			192,447	192,447
Ending balance, value at Jun. 30, 2021	$ 2,823	$ 24,251,172	$ (21,961,048)	$ 2,292,947
Ending balance, shares at Jun. 30, 2021	2,823,072

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ 1,035,219	$ (928,567)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	196,316	114,842
Bad debt (recovery) expense	(11,453)	44,705
Parts and supplies reserve change	9,000	6,000
Amortization of deferred financing costs	51,869	65,222
Amortization of beneficial conversion option		11,786
Amortization of debt discount	53,333	35,555
Amortization of right of use asset	292,051	160,290
Stock issued for services	57,500	57,500
Stock options compensation	46,196	18,683
Note conversion stock issue expense		141,000
Warrant issue expense		236,761
Interest on converted debt		176,105
Amortization of original issue discount on notes		18,296
Gain on extinguishment of debt	(845,083)	(287,426)
Change in fair value of earnout liabilities	77,211
Changes in operating assets and liabilities:
Accounts receivable	(197,792)	804,874
Accounts receivable, unbilled	11,447	(150,846)
Parts and supplies	9,862	1,676
Prepaid expenses and other current assets	(86,495)	(53,400)
Accounts payable and accrued expenses	229,409	(399,261)
Lease liabilities, current and long-term	(288,728)	(154,257)
Deferred compensation		(16,338)
Accrued interest, current and long-term	442	2,236
Deferred revenues	(53,184)	(37,723)
Total adjustments	(448,099)	796,280
Net cash used in operating activities	587,120	(132,287)
Cash flows from investing activities:
Cash paid to acquire business, net of cash acquired		(4,017,816)
Purchases of property and equipment	(399,638)	(21,927)
Net cash used in investing activities	(399,638)	(4,039,743)
Cash flows from financing activities:
Payment of earnout liabilities	(954,733)
Proceeds from issuance of common stock		3,167,500
Offering costs paid on issuance of common stock		(307,867)
Payment of deferred financing costs		(175,924)
Proceeds from notes payable		3,008,700
Repayment of notes payable - related parties		(47,728)
Net cash provided by financing activities	(954,733)	5,644,681
Net increase in cash	(767,251)	1,472,651
Cash - beginning of period	1,907,882	404,165
Cash - end of period	1,140,631	1,876,816
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	121,339	85,949
Cash paid during the period for income taxes	2,088
Supplemental disclosure of non-cash financing activities:
Accrued interest notes payable converted to equity		796,074
Accrued interest notes payable related parties converted to equity		238,883
Discount on notes payable for beneficial conversion feature		320,000
Discount on notes payable for warrants		135,292
Notes payable converted to equity		3,421,063
Notes payable converted to equity - related parties		1,465,515
Right-of-use asset obtained in exchange for operating lease liability	1,483,962
Supplemental disclosure of non-cash investing activities relating to business acquisitions:
Cash		17,269
Accounts receivable		1,122,737
Accounts receivable, unbilled		276,023
Parts and supplies		91,396
Prepaid expenses		73,116
Other current assets		5,954
Right of use assets		2,885,618
Property and equipment		735,885
Intangible assets		1,361,000
Accounts payable		(169,289)
Accrued expenses		(163,168)
Lease liabilities		(2,947,684)
Federal and state taxes payable		(168,900)
Deferred revenues		(195,448)
Deferred tax liabilities, net		(149,900)
Net assets acquired in acquisition		2,774,609
Total goodwill acquired in acquisition		2,319,676
Total purchase price of acquisition		5,094,285
Purchase price of business acquisition financed with earnout liability		(889,200)
Purchase price of business acquisition financed with installment payments		(170,000)
Cash used in business acquisition		$ 4,035,085

Business Organization and Natur

Business Organization and Nature of Operations	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Nature of Operations	1. Business Organization and Nature of Operations Intellinetics, Inc., formerly known as GlobalWise Investments, Inc. (“Intellinetics” or the “Company” or “we” or “us”), is a Nevada corporation incorporated in 1997, with two subsidiaries: Intellinetics, Inc., an Ohio corporation that is wholly-owned by the Company (“Intellinetics Ohio”), and Graphic Sciences, Inc., a Michigan corporation that is also wholly-owned by the Company (“Graphic Sciences”). Intellinetics Ohio was incorporated in 1996, and on February 10, 2012, Intellinetics Ohio became the sole operating subsidiary of the Company as a result of a reverse merger and recapitalization. On March 2, 2020, the Company purchased all the outstanding capital stock of Graphic Sciences. Our products and services are provided through two reporting segments: Document Management and Document Conversion. Our Document Management segment, which includes the CEO Imaging Systems, Inc. (“CEO Image”) asset acquisition in April 2020, consists primarily of solutions involving our software platform, allowing customers to capture and manage their documents across operations such as scanned hard-copy documents and digital documents including those from Microsoft Office 365, digital images, audio, video and emails. Our Document Conversion segment, which includes and primarily consists of the Graphic Sciences acquisition, provides assistance to customers as a part of their overall document strategy to convert documents from one medium to another, predominantly paper to digital, including migration to our software solutions, as well as long-term storage and retrieval services. Our solutions create value for customers by making it easy to connect business-critical documents to the people who need them by making those document easy to find and access, while also being secure and compliant with the customers’ audit requirements. Solutions are sold both directly to end-users and through resellers.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The financial statements presented in this Quarterly Report on Form 10-Q are unaudited. However, in the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with GAAP applicable to interim periods. The financial data and other financial information disclosed in these notes to the accompanying condensed consolidated financial statements are also unaudited. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to applicable rules and regulations thereunder. Operating results for the interim periods presented are not necessarily indicative of the results that may be expected for the full fiscal year ending December 31, 2021 or any other future period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC filed on March 30, 2021.

Liquidity and Management_s Plan

Liquidity and Management’s Plans	6 Months Ended
	Jun. 30, 2021
Liquidity And Managements Plans
Liquidity and Management’s Plans	3. Liquidity and Management’s Plans 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 total of approximately $ 18.6 million in cash through issuances of debt and equity securities. As of June 30, 2021, we had $ 1,140,631 in cash and cash equivalents, net working capital deficit of $ 380,126 , and an accumulated deficit of approximately $ 22 million. In June 2021, we paid $954,733 in annual earnout liabilities. In 2020, we engaged in several actions that significantly improved our liquidity and cash flows, including: ● acquiring Graphic Sciences and CEO Image, resulting in increased cash flow from operations, ● receiving aggregate gross proceeds of $ 3.5 ● converting all of the outstanding principal and accrued interest payable on our then-existing convertible debt in the approximate amount of $ 6.0 4.00 ● receiving $ 2.0 12 February 28, 2023 ● obtaining the loan under the Paycheck Protection Program through PNC Bank in the principal amount of $ 838,700 (the “PPP loan”), the principal and interest on which was forgiven in its entirety by the U.S. Small Business Administration (the “SBA”) by notice we received on January 20, 2021. Overall, we reduced our outstanding debt by approximately $ 3 Our ability to meet our capital needs in the future will depend on many factors, including maintaining and enhancing our operating cash flow, successfully managing the transition of our recent acquisitions of Graphic Sciences and CEO Image, successfully retaining and growing our client base in the midst of general economic uncertainty, and managing the continuing effects of the COVID-19 pandemic on our business. We will need to successfully manage our cash flows to support potential future earnout commitments and debt service commitments. 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, will be sufficient to meet our anticipated cash needs arising in the ordinary course of business for at least the next 12 months, including to satisfy our expected working capital needs, earnout obligations and capital and debt service commitments.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	4. Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements accompanying these notes include the accounts of Intellinetics and the accounts of all its subsidiaries in which it holds a controlling interest. Under GAAP, consolidation is generally required for investments of more than 50 Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. By their nature, these estimates and assumptions are subject to an inherent degree of uncertainty. The impact of COVID-19 has significantly increased economic and demand uncertainty. Because future events and their effects cannot be determined with precision, actual results could differ significantly from estimated amounts. Significant estimates and assumptions include valuation allowances related to receivables, accounts receivable -unbilled, allowance for obsolescence or slow-moving parts and supplies inventory, the recoverability of long-term assets, depreciable lives of property and equipment, purchase price allocations for acquisitions, fair value for goodwill and intangibles, the lease liabilities, estimates of fair value deferred taxes and related valuation allowances. Our management monitors these risks and assesses our business and financial risks on a quarterly basis. Revenue Recognition In accordance with ASC 606, “Revenue From Contracts With Customers,” we follow a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time. Revenue is recognized when a performance obligation is satisfied and the customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We categorize revenue as software, software as a service, software maintenance services, professional services, and storage and retrieval services. We earn the majority of our revenue from the sale of professional services, followed by the sale of software maintenance services and software as a service. We apply our revenue recognition policies as required in accordance with ASC 606 based on the facts and circumstances of each category of revenue. More detail regarding each category of revenue is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC filed on March 30, 2021 Contract balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by deferred revenue until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consisted of accounts receivable, unbilled, which are disclosed on the condensed consolidated balance sheets. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software as a service or software maintenance contracts. We classify deferred revenue as current based on the timing of when we expect to recognize revenue, which are disclosed on the condensed consolidated balance sheets. The following table present changes in our contract assets and liabilities during the six months ended June 30, 2021 and 2020: Schedule of Changes in Contract Assets and Liabilities Balance at Addition Revenue Billings Balance at Six months ended June 30, 2021 Contract assets: Accounts receivable, unbilled $ 523,522 $ - $ 1,944,919 $ (1,956,366 ) $ 512,075 Six months ended June 30, 2020 Contract assets: Accounts receivable, unbilled $ 23,371 $ 276,023 $ 208,404 $ (57,558 ) $ 450,240 Deferred revenue Amounts that have been invoiced are recognized in accounts receivable, deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet be recognized. Deferred revenues typically relate to maintenance and software-as-a-service agreements which have been paid for by customers prior to the performance of those services, and payments received for professional services and license arrangements and software-as-a-service performance obligations that have been deferred until fulfilled under our revenue recognition policy. Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 95 % of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations for software as a service and software maintenance contracts with a duration greater than one year was $ 48,454 . As of December 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations for software as a service and software maintenance contracts with a duration greater than one year was $ 45,323 . This does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. Balance at Addition Billings Recognized Balance at Six months ended June 30, 2021 Contract liabilities: Deferred revenue $ 996,131 $ - $ 2,141,905 $ (2,195,089 ) $ 942,947 Six months ended June 30, 2020 Contract liabilities: Deferred revenue $ 754,073 $ 195,448 $ 1,482,894 $ (1,520,617 ) $ 911,798 Parts and Supplies Parts and supplies are valued at the lower of cost or net realizable value. Costs are determined using the first-in, first-out method. Parts and supplies are used for scanning and document conversion services. A provision for potentially obsolete or slow-moving parts and supplies inventory is made based on parts and supplies levels, future sales forecasted and management’s judgment of potentially obsolete parts and supplies. We recorded an allowance of $ 24,000 and $ 15,000 at June 30, 2021 and December 31, 2020, respectively. Property and Equipment Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed over the estimated useful lives of the related assets on a straight-line basis. Furniture and fixtures, computer hardware and purchased software are depreciated over three seven seven ten Purchase Accounting Related Fair Value Measurements We allocate the purchase price, including contingent consideration, of our acquisitions to the assets and liabilities acquired, including identifiable intangible assets, based on their respective fair values at the date of acquisition. Such fair market value assessments are primarily based on third-party valuations using assumptions developed by management that require significant judgments and estimates that can change materially as additional information becomes available. The purchase price allocated to intangibles is based on unobservable factors, including but not limited to, projected revenues, expenses, customer attrition rates, a weighted average cost of capital, among others. The weighted average cost of capital uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The approach to valuing the initial contingent consideration associated with the purchase price also uses similar unobservable factors such as projected revenues and expenses over the term of the contingent earnout period, discounted for the period over which the initial contingent consideration is measured, and volatility rates. We finalize the purchase price allocation once certain initial accounting valuation estimates are finalized, and no later than 12 months following the acquisition date. Software Development Costs We design, develop, test, market, license, and support new software products and enhancements of current products. We continuously monitor our software products and enhancements to remain compatible with standard platforms and file formats. In accordance with ASC 985-20 “Costs of Software to be Sold, Leased or Otherwise Marketed,” we expense software development costs, including costs to develop software products or the software component of products to be sold, leased, or marketed to external users, before technological feasibility is reached. Once technological feasibility has been established, certain software development costs incurred during the application development stage are eligible for capitalization. Based on our software development process, technical feasibility is established upon completion of a working model. Technological feasibility is typically reached shortly before the release of such products. No such costs were capitalized during the periods presented in this report. In accordance with ASC 350-40, “Internal-Use Software,” we capitalize purchase and implementation costs of internal use software. Once an application has reached development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon complete of all substantial testing. We also capitalize costs related to specific upgrades and enhancements when it is probable that the expenditure will result in additional functionality. No such costs were capitalized during the periods presented in this report. For the three and six months ended June 30, 2021 and 2020, our expensed software development costs were $ 95,374 197,569 80,854 168,749 Recently Issued Accounting Pronouncements Not Yet Effective Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. The Company is currently evaluating the impact of this ASU. No other Accounting Standards Updates that have been issued but are not yet effective are expected to have a material effect on the Company’s future condensed consolidated financial statements. Advertising We expense the cost of advertising as incurred. Advertising expense for the three and six months ended June 30, 2021 and 2020 amounted to $ 366 1,041 1,691 3,680 Earnings (Loss) Per Share Basic income or loss per share is computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period. Diluted income or loss per share is computed by dividing net income or loss by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive, including warrants or options which are out-of-the-money and for those periods with a net loss. The three and six months ended June 30, 2021 reported net income, while the three and six months ended June 30, 2020 reported net losses. We have outstanding stock options which have not been included in the calculation of diluted net loss per share for the three and six months ended June 30, 2020 because to do so would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same. Income Taxes We file a consolidated federal income tax return with our subsidiaries. The provision for income taxes is computed by applying statutory rates to income before taxes. Deferred income taxes are recognized for the tax consequences in future years of temporary differences between the financial reporting and tax bases of assets and liabilities as of each period-end based on enacted tax laws and statutory rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A 100 We account for uncertainty in income taxes in our financial statements as required under ASC 740, “Income Taxes.” The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition accounting. Management determined there were no material uncertain positions taken by us in our tax returns. Segment Information Operating segments are defined in the criteria established under the FASB ASC Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by our chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. Our CODM assesses performance and allocates resources based on two The Document Management Segment provides cloud-based and premise-based content services software. Its modular suite of solutions complements existing operating and accounting systems to serve a mission-critical role for organizations to make content secure, compliant, and process-ready. This segment conducts its primary operations in the United States. Markets served include highly regulated, risk and compliance-intensive markets in healthcare, K-12 education, public safety, other public sector, risk management, financial services, and others. Solutions are sold both directly to end-users and through resellers. The Document Conversion Segment provides services for scanning and indexing, converting images from paper to digital, paper to microfilm, and microfiche to microfilm, as well as long-term physical document storage and retrieval. This segment conducts its primary operations in the United States. Markets served include business and federal, county, and municipal governments. Solutions are sold both directly to end-users and through a reseller distributor. Information by operating segment is as follows: Schedule of Segment Information For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Revenues Document Management $ 791,004 $ 622,865 $ 1,526,822 $ 1,240,916 Document Conversion 2,118,642 1,213,317 4,018,043 1,808,930 Total revenues $ 2,909,646 $ 1,836,182 $ 5,544,865 $ 3,049,846 Gross profit Document Management $ 638,169 $ 486,127 $ 1,225,700 $ 920,832 Document Conversion 1,175,898 685,266 2,193,271 995,805 Total gross profit $ 1,814,067 $ 1,171,393 $ 3,418,971 $ 1,916,637 Capital additions, net Document Management $ - $ 4,717 $ 38,116 $ 7,911 Document Conversion 165,455 12,981 361,522 17,529 Total capital additions, net $ 165,455 $ 17,698 $ 399,638 $ 25,440 As of June 30, 2021 2020 Total assets Document Management $ 1,562,655 $ 2,295,165 Document Conversion 9,675,391 8,049,468 Total assets $ 11,238,046 $ 10,344,633 Statement of Cash Flows For purposes of reporting cash flows, cash includes cash on hand and demand deposits held by banks. Reclassifications Certain amounts reported in prior filings of the condensed consolidated financial statements have been reclassified to conform to current period presentation.

Business Acquisitions _ Earnout

Business Acquisitions – Earnout Liability	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions – Earnout Liability	5. Business Acquisitions – Earnout Liability On March 2, 2020, we acquired all of the issued and outstanding stock of Graphic Sciences. The purchase price paid for Graphic Sciences was $ 3,906,253 in cash plus potential contingent, or earnout, payments of up $ 833,000 annually over a three year period based on a gross profit level achieved by Graphic Sciences on an annual basis, for maximum total earnout payments over a three year period of $ 2,500,000 , and with no minimum earnout payments. At the time of this acquisition, management estimated a fair value of the contingent liability—earnout (“earnout liability”) of $ 686,200 based on the terms of the earnout, and accordingly, recorded this amount as our earnout liability at the acquisition date in accordance with GAAP. For the three and six months ended June 30, 2021 we recorded a change in fair value of our earnout liabilities in the amount of $ 0 69,950 769,733 for the first annual period. At June 30, 2021, our condensed consolidated balance sheets reflected an earnout liability for Graphic Sciences in the amount of $ 1,410,217 . See Note 7 for the estimated fair value of the earnout liability as of June 30, 2021. On April 21, 2020, we acquired substantially all of the assets of CEO Image. The purchase price paid for the assets of CEO Image consisted of $ 128,832 in cash, $ 170,000 in installment payments paid during 2020, and potential contingent, or earnout, payments of up $ 185,000 annually over a two year period based on a sales revenue level achieved by certain customers of CEO Image on an annual basis, for maximum total earnout payments over a two year period of $ 370,000 , and with no minimum earnout payments. At the time of this acquisition, management estimated a fair value of the contingent liability—earnout (“earnout liability”) of $ 203,000 based on the terms of the earnout, and accordingly, recorded this amount as our earnout liability at the acquisition date in accordance with GAAP. For the three and six months ended June 30, 2021 we recorded a change in fair value of our earnout liabilities in the amount of $ 7,261 185,000 for the first annual period. At June 30, 2021, our condensed consolidated balance sheets reflected an earnout liability for CEO Image in the amount of $ 156,261 . See Note 7 for the estimated fair value of the earnout liability as of June 30, 2021. The following unaudited pro forma information presents a summary of the condensed consolidated results of operations for the Company as if the acquisitions of Graphic Sciences and CEO Image had occurred on January 1, 2020. Schedule of Pro Forma Information For the six months ended June 30, 2020 (unaudited) June 30, 2020 Total revenues $ 4,482,809 Net loss $ (721,755 ) Basic and diluted net loss per share $ (0.26 ) The unaudited pro forma consolidated results are based on the Company’s historical financial statements and those of Graphic Sciences and CEO Image and do not necessarily indicate the results of operations that would have resulted had the acquisition actually been completed at the beginning of the applicable period presented. The pro forma financial information assumes that the companies were combined as of January 1, 2020. The following tables present the amounts of revenue and earnings of the acquirees since the acquisition date included in the condensed consolidated income statement for the reporting period. For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Graphic Sciences: Total revenues $ 2,028,798 $ 1,192,164 $ 3,872,019 $ 1,843,221 Net income 279,374 $ 61,984 $ 497,895 $ 141,326 For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 CEO Image: Total revenues $ 139,591 $ 64,519 $ 272,196 $ 64,519 Net income $ - (a) $ - (a) $ - (a) $ - (a) (a) Total earnings from the CEO Image acquisition are impracticable to disclose as they are not accounted for separately because its operations and financial reporting were merged with existing operations and financial reporting.

Intangible Assets, Net

Intangible Assets, Net	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	6. Intangible Assets, Net At June 30, 2021, intangible assets consisted of the following: Schedule of Intangible Assets Estimated Accumulated Useful Life Costs Amortization Net Trade names 10 $ 119,000 $ (15,867 ) $ 103,133 Customer contracts 5 8 1,242,000 (268,400 ) 973,600 $ 1,361,000 $ (284,267 ) $ 1,076,733 At December 31, 2020, intangible assets consisted of the following: Estimated Accumulated Useful Life Costs Amortization Net Trade names 10 $ 119,000 $ (9,917 ) $ 109,083 Customer contracts 5 8 1,242,000 (166,112 ) 1,075,888 $ 1,361,000 $ (176,029 ) $ 1,184,971 Amortization expense for the three and six months ended June 30, 2021 and June 30, 2020, amounted to $ 54,119 108,238 51,936 67,792 Schedule of Amortization Expense for Intangible Assets For the Twelve Months Ending June 30, Amount 2022 $ 216,475 2023 216,475 2024 216,475 2025 212,108 2026 137,608 Thereafter 77,592 Intangible assets $ 1,076,733

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements Under GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of the following three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs consist of quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3 inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The carrying values of cash and equivalents, accounts receivable, accounts payable, accrued expenses, and the PPP loan (prior to forgiveness) approximate fair value because of its short maturity. Management believes that the carrying value of the 2020 Notes approximate fair value given the March 2, 2020 transaction proximity to December 31, 2020 in conjunction with the absence of significant net change in the overall economic environment with regards to availability of credit to Company. We have earnout liabilities related to our two 2020 acquisitions which are measured on a recurring basis and recorded at fair value, measured using probability-weighted analysis and discounted using a rate that appropriately captures the risks associated with the obligation. The inputs used to calculate the fair value of the earnout liabilities are considered to be Level 3 inputs due to the lack of relevant market activity and significant management judgment. Key unobservable inputs include revenue growth rates, which ranged from 0% to 7%, and volatility rates, which were 20% for gross profits. An increase in future revenues and gross profits may result in a higher estimated fair value while a decrease in future revenues and gross profits may result in a lower estimated fair value of the earnout liabilities The following table provides a summary of the changes in fair value of the earnout liabilities for the three and six months ended June 30, 2021: Summary of Changes in Fair Value of Earnout Liabilities Three months ended June 30, 2021 Fair value at March 31, 2021 $ 2,513,950 Payment (954,733 ) Change in fair value 7,261 Fair value at June 30, 2021 $ 1,566,478 Six months ended June 30, 2021 Fair value at December 31, 2020 $ 2,444,000 Payment (954,733 ) Change in fair value 77,211 Fair value at June 30, 2021 $ 1,566,478 The fair values of amounts owed are recorded in the current and long-term portions of earnout liabilities in our condensed consolidated balance sheets. Changes in fair value are recorded in change in fair value of earnout liabilities in our condensed consolidated statements of operations.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	8. Property and Equipment Property and equipment are comprised of the following: Schedule of Property and Equipment June 30, 2021 December 31, 2020 Computer hardware and purchased software $ 1,407,667 $ 1,019,259 Leasehold improvements 286,337 275,106 Furniture and fixtures 82,056 82,056 Property and equipment, gross 1,776,060 1,376,421 Less: accumulated depreciation (765,748 ) (677,669 ) Property and equipment, net $ 1,010,312 $ 698,752 Total depreciation expense on our property and equipment for the three and six months ended June 30, 2021 and 2020 amounted to $ 47,313 88,078 34,814 47,050

Notes Payable _ Unrelated Parti

Notes Payable – Unrelated Parties	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Notes Payable – Unrelated Parties	9. Notes Payable – Unrelated Parties Summary of Notes Payable to Unrelated Parties The table below summarizes all notes payable at June 30, 2021 and December 31, 2020, respectively, with the exception of related party notes disclosed in Note 10 “Notes Payable - Related Parties.” Schedule of Notes Payable to Unrelated Parties June 30, 2021 December 31, 2020 PPP Note (a) $ - $ 838,700 2020 Notes 2,000,000 2,000,000 Total notes payable $ 2,000,000 $ 2,838,700 Less unamortized debt issuance costs (172,898 ) (224,767 ) Less unamortized debt discount (177,778 ) (231,111 ) Less current portion - (580,638 ) Long-term portion of notes payable $ 1,649,324 $ 1,802,184 (a) The full amount of the principal and interest on the PPP Note was forgiven in its entirety in January 2021. Future minimum principal payments of the 2020 Notes are as follows: Schedule of Future Minimum Principal Payments of Notes Payable As of June 30, Amount 2023 $ 2,000,000 Total $ 2,000,000 As of June 30, 2021 and December 31, 2020, accrued interest for these notes payable with the exception of the related party notes in Note 10, “Notes Payable - Related Parties,” was $ 0 5,941 With respect to all notes outstanding (other than the notes to related parties), interest expense, including the amortization of deferred financing costs, accrued loan participation fees, original issue discounts, deferred interest and related fees, interest expense related to warrants issued for the conversion of convertible notes, and the embedded conversion feature for the three and six months ended June 30, 2021 was $ 113,271 and $ 226,315 , respectively, and for the three and six months ended June 30, 2021 and 2020 $ 115,365 and $ 318,285 , respectively. We have evaluated the terms of our convertible notes payable in accordance with ASC 815 – 40, “Derivatives and Hedging - Contracts in Entity’s Own Stock” and determined that the underlying common stock is indexed to our common stock. We determined that the conversion feature did not meet the definition of a derivative and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. We evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared with the market price on the date of each note. If the conversion price was deemed to be less than the market value of the underlying common stock at the inception of the note, then we recognized a beneficial conversion feature resulting in a discount on the note payable, upon satisfaction of the contingency. The beneficial conversion features were amortized to interest expense over the life of the respective notes, starting from the date of recognition. 2016-18 Unrelated Party Notes and 2020 Note Conversion In 2016 through 2018, we issued convertible promissory notes to unrelated parties in an aggregate principal amount of $ 3,535,000 1,433,689 4.00 35,250 4.00 2020 Notes On March 2, 2020, we sold 2,000 units, at an offering price of $ 1,000 per unit, to accredited investors in a private placement offering, with each unit consisting of $1,000 in 12% Subordinated Notes (“2020 Notes”) and 40 shares of our common stock, for aggregate gross proceeds of $ 2,000,000 . The entire outstanding principal and accrued interest of the 2020 Notes are due and payable on February 28, 2023 . Interest on the 2020 Notes accrues at the rate of 12% per annum, payable quarterly in cash, beginning on June 30, 2020. Any accrued but unpaid quarterly installment of interest will accrue interest at the rate of 14.0% per annum. Any overdue principal and accrued and unpaid interest at the maturity date will accrue a mandatory default penalty of 20% of the outstanding principal balance and an interest rate of 14% per annum from the maturity date until paid in full. We used a portion of the net proceeds from the private placement offering to finance the acquisitions of Graphic Sciences and CEO Image and the remaining net proceeds for working capital and general corporate purposes. We recognized a debt discount of $ 320,000 for the 80,000 shares issued in conjunction with the units. The amortization of the debt discount, which will be recognized over the life of the 2020 Notes as interest expense, for the three and six months ended June 30, 2021 was $ 26,667 and $ 53,333 , respectively, and for the three and six months ended June 30, 2020 was $ 26,667 and $ 35,556 , respectively. PPP Note On April 15, 2020, we were issued an unsecured promissory note (“PPP Note”) for the PPP loan through PNC Bank with a principal amount of $ 838,700 . The term of the PPP Note Payable was two years , with an interest rate of 1.0% per annum deferred for the first six months. We received notice on January 20, 2021 that the SBA had forgiven the full amount of principal and interest of the PPP Note, and we have recognized a gain on extinguishment of debt of $ 0 and $ 845,083 for the three and six months ended June 30, 2021, respectively.

Notes Payable - Related Parties

Notes Payable - Related Parties	6 Months Ended
	Jun. 30, 2021
Notes Payable - Related Parties
Notes Payable - Related Parties	10. Notes Payable - Related Parties For the three and six months ended June 30, 2021, there was no 1,431 and $ 88,941 , respectively. 2016-19 Related Party Notes and 2020 Note Conversion In 2016 through 2019, we issued convertible promissory notes to related parties, including 5% 1,562,728 1,433,689 4.00 350,000 47,728

Deferred Compensation

Deferred Compensation	6 Months Ended
	Jun. 30, 2021
Compensation Related Costs [Abstract]
Deferred Compensation	11. Deferred Compensation Pursuant to an employment agreement, we have accrued incentive compensation totaling $ 100,828 in cash as of June 30, 2021 and December 31, 2020 for one of our founders. We deferred these payment obligations until we reasonably believe we have sufficient cash to make those payments in cash. We made no deferred incentive compensation payments during the six months ended June 30, 2021. Following the retirement of founder A. Michael Chretien on December 8, 2017, we made bi-weekly payments until his deferred compensation had been fully paid, which occurred in May 2020. During the three and six months ended June 30, 2020, we paid $ 3,292 and $ 16,338 in deferred incentive compensation, which amounts were reflected as a reduction in our deferred compensation liability.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies From time to time we are involved in legal proceedings, claims and litigation related to employee claims, contractual disputes and taxes in the ordinary course of business. Although we cannot predict the outcome of such matters, currently we have no reason to believe the disposition of any current matter could reasonably be expected to have a material adverse impact on our financial position, results of operations or the ability to carry on any of our business activities. Employment Agreements We have entered into employment agreements with three of our key executives, including one of our founders. Under their respective employment agreements, the executives are employed on an “at-will” basis and are bound by typical confidentiality, non-solicitation and non-competition provisions. Deferred compensation for one founder remains outstanding as of June 30, 2021. Operating Leases On January 1, 2010, we entered into an agreement to lease 6,000 January 1, 2010 August 9, 2016 December 31, 2021 Our subsidiary, Graphic Sciences, uses 36,000 square feet of leased space in Madison Heights, Michigan as its main facility. Graphic Sciences uses about 20,000 square feet for its records storage services, with the remainder of the space used for production, sales, and administration. The monthly rental payment is $ 41,508 , with gradually higher annual increases each September up to $ 45,828 for the final year, and with a lease term continuing until August 31, 2026 . Graphic Sciences also leases and uses a separate 20,000 square foot building for document storage in Highland Park, Michigan, and a satellite office in Traverse City, Michigan for production. The monthly Highland Park rental payment is $ 11,250 , with a lease term continuing until September 30, 2021 . The monthly Traverse City rental payment is $ 4,500 , with a lease term continuing until January 31, 2024 . Graphic Sciences also leases and uses four leased vehicles for logistics. The monthly rental payments for these vehicles total $ 2,618 , with lease terms continuing until October 31, 2024 . Graphic Sciences also leases and uses an additional temporary storage space in Madison Heights, with a monthly rental payment of $ 1,605 During 2021, we signed a lease for 37,000 square foot building, primarily for document storage, in Sterling Heights, Michigan, with monthly rental payments of $ 20,452 commencing on May 1, 2021 , with gradually higher annual increases each May up to $ 24,171 for the final year, and with a lease term continuing to April 30, 2028 . The following table sets forth the future minimum lease payments under these operating leases: Schedule of Future Rental Payments for Operating Leases For the period ending June 30, Amount 2022 $ 954,935 2023 871,294 2024 848,274 2025 812,086 2026 824,564 Thereafter 617,218 Future lease payments under operating lease $ 4,928,371 Lease costs charged to operations for the three months ended June 30, 2021 and 2020 amounted to $ 260,907 and $ 217,570 , respectively, and for the six months ended June 30, 2021 and 2020 amounted to $ 498,982 and $ 294,620 , respectively. Included in the lease costs for the three and six months ended June 30, 2021 were short-term lease costs of $ 17,314 and $ 56,418 , respectively. The following table sets forth additional information pertaining to our leases: Schedule of Operating Lease Costs For the Six Months Ending June 30, 2021: Operating cash flows from operating leases $ 371,894 Weighted average remaining lease term – operating leases 5.6 Weighted average discount rate – operating leases 7.1 % Because these leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Warehouse Equipment Financing During the six months ended June 30, 2021, we committed to purchase warehouse racking in the amount of $ 351,854 300,276

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Stockholders’ Equity	13. Stockholders’ Equity Common Stock As of June 30, 2021, 2,823,072 135,902 497,330 On March 2, 2020, we sold 955,000 ● 875,000 4.00 3,500,000 ● 2,000 1,000 1,000 12% 40 2,000,000 In connection with the private placement offering, we paid the placement agent $ 440,000 in cash, equal to 8% of the gross proceeds of the offering, along with 95,500 warrants to purchase shares of our common stock and reimbursement for the placement agent’s reasonable out of pocket expenses, FINRA filing fees and related legal fees. The warrants are exercisable at an exercise price at $ 4.00 per share for a period of five years 236,761 and debt issuance costs of $ 135,291 were recorded for the issuance of the March 2, 2020 warrants, utilizing the Black-Scholes valuation model. The fair value of warrants issued was determined to be $ 3.90 . Underwriting expense of $ 307,867 and debt issuance costs of $ 175,924 was recorded for the placement agent cash fee and other related legal fees. For the three and six months ended June 30, 2021, interest expense of $ 25,935 and $ 51,869 , respectively, was recorded as amortization of the debt issuance costs for this private placement offering. For the three and six months ended June 30, 2020, interest expense of $ 25,935 and $ 34,580 , respectively, was recorded as amortization of the debt issuance costs for this private placement offering. Reverse Stock Split In February 2020, upon recommendation and authorization by our Board of Directors, our stockholders holding a majority in interest of the issued and outstanding shares of our common stock, acting by written consent, adopted an amendment to our Articles of Incorporation to effectuate a reverse split of our issued and outstanding shares of common stock at a ratio of one-for-fifty (1-for-50) (the “Reverse Split”), and reduce the number of authorized shares of our common stock to 25,000,000 Effective March 2, 2020, before the Reverse Split and the 25,000,000 Share Amendment became effective, upon recommendation and authorization by the Board of Directors, stockholders holding a majority in interest of the issued and outstanding shares of our common stock, acting by written consent, adopted an amendment to our Articles of Incorporation to increase the authorized number of shares of our common stock to 160,000,000 3,200,000 75,000,000 1,500,000 25,000,000 The Reverse Split did not cause an adjustment to the par value of the common stock. Pursuant to the Reverse Split, we adjusted the amounts for shares reserved for issuance upon the exercise of outstanding warrants, outstanding stock options, and shares reserved for the 2015 Plan. All references to shares of common stock and per share data in the accompanying condensed consolidated financial statements and in these notes related thereto have been adjusted to reflect the Reverse Split for all periods presented. Warrants The following sets forth the warrants to purchase our common stock that were outstanding as of June 30, 2021: ● Warrants to purchase 3,077 37.50 ● Warrants to purchase 3,000 15.00 ● Warrants to purchase 17,200 12.50 ● Warrants to purchase 15,999 9.00 ● Warrants to purchase 95,500 4.00 No warrants were issued during the six months ended June 30, 2021. Warrants to purchase 95,500 3.90 Schedule of Estimated Values of Warrants Valuation Assumptions Warrants Issued Risk-free interest rate 0.88 % Weighted average expected term 5 Expected volatility 130.12 % Expected dividend yield 0.00 %

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	14. Stock-Based Compensation From time to time, we issue stock options and restricted stock as compensation for services rendered by our directors and employees. Restricted Stock On February 15, 2021 and January 2, 2020, we issued 12,207 shares and 16,429 shares, respectively, of restricted common stock to our directors as part of their annual compensation plan. The grants of restricted common stock were made outside the 2015 Plan and were not subject to any vesting conditions. Stock compensation of $ 57,500 was recorded on this issuance of restricted common stock for the six months ended June 30, 2021. Stock compensation of $ 57,500 on the issuance of the restricted common stock to directors was recorded for the twelve months ending December 31, 2020. Stock Options We did not make any stock option grants during the six months ended June 30, 2021 or 2020. Stock-based compensation for options was $ 23,098 7,109 46,196 18,682 A summary of stock option activity during the six months ended June 30, 2021 and 2020 is as follows: Schedule of Stock Option Activity Weighted- Weighted- Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2021 145,360 $ 5.61 9 $ 19,200 Outstanding at June 30, 2021 145,360 $ 5.61 9 $ 19,200 Exercisable at June 30, 2021 41,560 $ 9.34 7 $ 19,200 Weighted- Weighted- Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2020 46,860 $ 9.02 9 $ 19,200 Outstanding at June 30, 2020 46,860 $ 9.02 8 $ 19,200 Exercisable at June 30, 2020 38,785 $ 9.54 8 $ 19,200 As of June 30, 2021 and December 31, 2020, there was $ 276,678 and $ 322,874 , respectively, of total unrecognized compensation costs related to stock options granted under our stock option agreements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of three years 10,800 and $ 14,963 , respectively.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2021
Risks and Uncertainties [Abstract]
Concentrations	15. Concentrations Revenues from a limited number of customers have accounted for a substantial percentage of our total revenues. During the three months ended June 30, 2021 and 2020, our largest customer, the State of Michigan, accounted for 45% 43% 9% 11% 48% 40% 10% 8% For the three months ended June 30, 2021 and 2020, government contracts represented approximately 59% and 57% , respectively, of our net revenues. For the six months ended June 30, 2021 and 2020, government contracts represented approximately 64% and 58% , respectively, of our net revenues. A significant portion of our sales to resellers represent ultimate sales to government agencies. As of June 30, 2021, accounts receivable concentrations from our two largest customers were 36% 12% 54% 16%

Certain Relationships and Relat

Certain Relationships and Related Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Certain Relationships and Related Transactions	16. Certain Relationships and Related Transactions We did not participate in any related person transactions during the three and six months ended June 30, 2021.

Provision For Income Taxes

Provision For Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Provision For Income Taxes	17. Provision For Income Taxes We file federal and various state income tax returns in the U.S. For the three and six months ended June 30, 2021 and 2020, we have recognized the minimum amount of state income tax as required by the states in which we are required to file taxes. We are not currently subject to any other federal or state taxes because we have incurred losses since our inception. Income tax benefit consists of the following federal, deferred components for the six months ended June 30, 2021 and 2020: Summary of Income Tax Benefits Six months ended June 30, 2021 Six months ended June 30, 2020 Benefit of net operating losses $ 48,641 $ (154,168 ) Other timing differences 28,609 (62,741 ) Change in valuation allowance, including $ 188,000 (77,250 ) 29,909 Tax benefit $ - $ (188,300 ) A reconciliation is provided below of the U.S. Federal income tax expense at a statutory rate of 21% Summary of Reconciliation of Income Tax Expense Six months ended June 30, 2021 Six months ended June 30, 2020 U.S. statutory rate 21 % 21 % U.S. Federal income tax at statutory rate $ 217,688 $ (234,570 ) Increase (decrease) in income taxes due to: Non-taxable PPP loan and accrued interest recovery (177,467 ) - Non-deductible earnout expense 16,214 - Non-deductible goodwill amortization 19,979 12,810 Other differences 836 4,830 Benefit of acquisition-date purchased deferred tax liability - (188,300 ) Other change in valuation allowance (77,250 ) 216,930 Income tax benefit $ - $ (188,300 ) The approximate tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Summary of Deferred Tax Assets and Liabilities June 30, 2021 December 31, 2020 Deferred tax assets Reserves and accruals not currently deductible for tax purposes $ 49,000 $ 51,000 Amortizable assets 68,000 72,000 Net operating loss carryforwards 3,971,000 4,020,000 Deferred tax assets 4,088,000 4,143,000 Deferred tax liabilities Property and equipment (164,000 ) (143,000 ) Net Deferred tax assets 3,924,000 4,000,000 Valuation allowance (3,924,000 ) (4,000,000 ) Deferred tax assets and liabilities $ - $ - As of June 30, 2021 and December 31, 2020, we had federal net operating loss carry forwards of approximately $ 18,988,000 and $ 19,129,000 , respectively, which can be used to offset future federal income tax. The federal and state net operating loss carry forwards expire at various dates through 2039 for pre-2020 losses. The operating losses during and after 2020 do not expire. We recorded a valuation allowance against all of our deferred tax assets as of both June 30, 2021 and December 31, 2020. We intend to continue maintaining a full valuation allowance on our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that we are able to actually achieve.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements accompanying these notes include the accounts of Intellinetics and the accounts of all its subsidiaries in which it holds a controlling interest. Under GAAP, consolidation is generally required for investments of more than 50
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. By their nature, these estimates and assumptions are subject to an inherent degree of uncertainty. The impact of COVID-19 has significantly increased economic and demand uncertainty. Because future events and their effects cannot be determined with precision, actual results could differ significantly from estimated amounts. Significant estimates and assumptions include valuation allowances related to receivables, accounts receivable -unbilled, allowance for obsolescence or slow-moving parts and supplies inventory, the recoverability of long-term assets, depreciable lives of property and equipment, purchase price allocations for acquisitions, fair value for goodwill and intangibles, the lease liabilities, estimates of fair value deferred taxes and related valuation allowances. Our management monitors these risks and assesses our business and financial risks on a quarterly basis.
Revenue Recognition	Revenue Recognition In accordance with ASC 606, “Revenue From Contracts With Customers,” we follow a five-step model to assess each contract of a sale or service to a customer: identify the legally binding contract, identify the performance obligations, determine the transaction price, allocate the transaction price, and determine whether revenue will be recognized at a point in time or over time. Revenue is recognized when a performance obligation is satisfied and the customer obtains control of promised goods and services. The amount of revenue recognized reflects the consideration to which we expect to be entitled to receive in exchange for these goods and services. In addition, ASC 606 requires disclosures of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. We categorize revenue as software, software as a service, software maintenance services, professional services, and storage and retrieval services. We earn the majority of our revenue from the sale of professional services, followed by the sale of software maintenance services and software as a service. We apply our revenue recognition policies as required in accordance with ASC 606 based on the facts and circumstances of each category of revenue. More detail regarding each category of revenue is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC filed on March 30, 2021 Contract balances When the timing of our delivery of goods or services is different from the timing of payments made by customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Customers that prepay are represented by deferred revenue until the performance obligation is satisfied. Contract assets represent arrangements in which the good or service has been delivered but payment is not yet due. Our contract assets consisted of accounts receivable, unbilled, which are disclosed on the condensed consolidated balance sheets. Our contract liabilities consisted of deferred (unearned) revenue, which is generally related to software as a service or software maintenance contracts. We classify deferred revenue as current based on the timing of when we expect to recognize revenue, which are disclosed on the condensed consolidated balance sheets. The following table present changes in our contract assets and liabilities during the six months ended June 30, 2021 and 2020: Schedule of Changes in Contract Assets and Liabilities Balance at Addition Revenue Billings Balance at Six months ended June 30, 2021 Contract assets: Accounts receivable, unbilled $ 523,522 $ - $ 1,944,919 $ (1,956,366 ) $ 512,075 Six months ended June 30, 2020 Contract assets: Accounts receivable, unbilled $ 23,371 $ 276,023 $ 208,404 $ (57,558 ) $ 450,240 Deferred revenue Amounts that have been invoiced are recognized in accounts receivable, deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet be recognized. Deferred revenues typically relate to maintenance and software-as-a-service agreements which have been paid for by customers prior to the performance of those services, and payments received for professional services and license arrangements and software-as-a-service performance obligations that have been deferred until fulfilled under our revenue recognition policy. Remaining performance obligations represent the transaction price from contracts for which work has not been performed or goods and services have not been delivered. We expect to recognize revenue on approximately 95 % of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations for software as a service and software maintenance contracts with a duration greater than one year was $ 48,454 . As of December 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations for software as a service and software maintenance contracts with a duration greater than one year was $ 45,323 . This does not include revenue related to performance obligations that are part of a contract whose original expected duration is one year or less. Balance at Addition Billings Recognized Balance at Six months ended June 30, 2021 Contract liabilities: Deferred revenue $ 996,131 $ - $ 2,141,905 $ (2,195,089 ) $ 942,947 Six months ended June 30, 2020 Contract liabilities: Deferred revenue $ 754,073 $ 195,448 $ 1,482,894 $ (1,520,617 ) $ 911,798
Parts and Supplies	Parts and Supplies Parts and supplies are valued at the lower of cost or net realizable value. Costs are determined using the first-in, first-out method. Parts and supplies are used for scanning and document conversion services. A provision for potentially obsolete or slow-moving parts and supplies inventory is made based on parts and supplies levels, future sales forecasted and management’s judgment of potentially obsolete parts and supplies. We recorded an allowance of $ 24,000 and $ 15,000 at June 30, 2021 and December 31, 2020, respectively.
Property and Equipment	Property and Equipment Property, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed over the estimated useful lives of the related assets on a straight-line basis. Furniture and fixtures, computer hardware and purchased software are depreciated over three seven seven ten
Purchase Accounting Related Fair Value Measurements	Purchase Accounting Related Fair Value Measurements We allocate the purchase price, including contingent consideration, of our acquisitions to the assets and liabilities acquired, including identifiable intangible assets, based on their respective fair values at the date of acquisition. Such fair market value assessments are primarily based on third-party valuations using assumptions developed by management that require significant judgments and estimates that can change materially as additional information becomes available. The purchase price allocated to intangibles is based on unobservable factors, including but not limited to, projected revenues, expenses, customer attrition rates, a weighted average cost of capital, among others. The weighted average cost of capital uses a market participant’s cost of equity and after-tax cost of debt and reflects the risks inherent in the cash flows. The approach to valuing the initial contingent consideration associated with the purchase price also uses similar unobservable factors such as projected revenues and expenses over the term of the contingent earnout period, discounted for the period over which the initial contingent consideration is measured, and volatility rates. We finalize the purchase price allocation once certain initial accounting valuation estimates are finalized, and no later than 12 months following the acquisition date.
Software Development Costs	Software Development Costs We design, develop, test, market, license, and support new software products and enhancements of current products. We continuously monitor our software products and enhancements to remain compatible with standard platforms and file formats. In accordance with ASC 985-20 “Costs of Software to be Sold, Leased or Otherwise Marketed,” we expense software development costs, including costs to develop software products or the software component of products to be sold, leased, or marketed to external users, before technological feasibility is reached. Once technological feasibility has been established, certain software development costs incurred during the application development stage are eligible for capitalization. Based on our software development process, technical feasibility is established upon completion of a working model. Technological feasibility is typically reached shortly before the release of such products. No such costs were capitalized during the periods presented in this report. In accordance with ASC 350-40, “Internal-Use Software,” we capitalize purchase and implementation costs of internal use software. Once an application has reached development stage, internal and external costs, if direct and incremental, are capitalized until the software is substantially complete and ready for its intended use. Capitalization ceases upon complete of all substantial testing. We also capitalize costs related to specific upgrades and enhancements when it is probable that the expenditure will result in additional functionality. No such costs were capitalized during the periods presented in this report. For the three and six months ended June 30, 2021 and 2020, our expensed software development costs were $ 95,374 197,569 80,854 168,749
Recently Issued Accounting Pronouncements Not Yet Effective	Recently Issued Accounting Pronouncements Not Yet Effective Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” which provides optional relief through specific exceptions and practical expedients for transitioning away from reference rates that are expected to be discontinued. The relief generally applies to eligible modifications of contractual terms that change (or have the potential to change) the amount or timing of contractual cash flows related to replacement of a reference rate. The relief allows such modifications to be accounted for as continuations of existing contracts without additional analysis. The optional relief is available from March 2020 through December 31, 2022. The Company is currently evaluating the impact of this ASU. No other Accounting Standards Updates that have been issued but are not yet effective are expected to have a material effect on the Company’s future condensed consolidated financial statements.
Advertising	Advertising We expense the cost of advertising as incurred. Advertising expense for the three and six months ended June 30, 2021 and 2020 amounted to $ 366 1,041 1,691 3,680
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic income or loss per share is computed by dividing net income or loss by the weighted average number of shares of common stock outstanding during the period. Diluted income or loss per share is computed by dividing net income or loss by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method. Diluted earnings per share exclude all diluted potential shares if their effect is anti-dilutive, including warrants or options which are out-of-the-money and for those periods with a net loss. The three and six months ended June 30, 2021 reported net income, while the three and six months ended June 30, 2020 reported net losses. We have outstanding stock options which have not been included in the calculation of diluted net loss per share for the three and six months ended June 30, 2020 because to do so would be anti-dilutive. As such, the numerator and the denominator used in computing both basic and diluted net loss per share for each period are the same.
Income Taxes	Income Taxes We file a consolidated federal income tax return with our subsidiaries. The provision for income taxes is computed by applying statutory rates to income before taxes. Deferred income taxes are recognized for the tax consequences in future years of temporary differences between the financial reporting and tax bases of assets and liabilities as of each period-end based on enacted tax laws and statutory rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A 100 We account for uncertainty in income taxes in our financial statements as required under ASC 740, “Income Taxes.” The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition accounting. Management determined there were no material uncertain positions taken by us in our tax returns.
Segment Information	Segment Information Operating segments are defined in the criteria established under the FASB ASC Topic 280 as components of public entities that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is evaluated regularly by our chief operating decision maker (“CODM”) in deciding how to assess performance and allocate resources. Our CODM assesses performance and allocates resources based on two The Document Management Segment provides cloud-based and premise-based content services software. Its modular suite of solutions complements existing operating and accounting systems to serve a mission-critical role for organizations to make content secure, compliant, and process-ready. This segment conducts its primary operations in the United States. Markets served include highly regulated, risk and compliance-intensive markets in healthcare, K-12 education, public safety, other public sector, risk management, financial services, and others. Solutions are sold both directly to end-users and through resellers. The Document Conversion Segment provides services for scanning and indexing, converting images from paper to digital, paper to microfilm, and microfiche to microfilm, as well as long-term physical document storage and retrieval. This segment conducts its primary operations in the United States. Markets served include business and federal, county, and municipal governments. Solutions are sold both directly to end-users and through a reseller distributor. Information by operating segment is as follows: Schedule of Segment Information For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Revenues Document Management $ 791,004 $ 622,865 $ 1,526,822 $ 1,240,916 Document Conversion 2,118,642 1,213,317 4,018,043 1,808,930 Total revenues $ 2,909,646 $ 1,836,182 $ 5,544,865 $ 3,049,846 Gross profit Document Management $ 638,169 $ 486,127 $ 1,225,700 $ 920,832 Document Conversion 1,175,898 685,266 2,193,271 995,805 Total gross profit $ 1,814,067 $ 1,171,393 $ 3,418,971 $ 1,916,637 Capital additions, net Document Management $ - $ 4,717 $ 38,116 $ 7,911 Document Conversion 165,455 12,981 361,522 17,529 Total capital additions, net $ 165,455 $ 17,698 $ 399,638 $ 25,440 As of June 30, 2021 2020 Total assets Document Management $ 1,562,655 $ 2,295,165 Document Conversion 9,675,391 8,049,468 Total assets $ 11,238,046 $ 10,344,633
Statement of Cash Flows	Statement of Cash Flows For purposes of reporting cash flows, cash includes cash on hand and demand deposits held by banks.
Reclassifications	Reclassifications Certain amounts reported in prior filings of the condensed consolidated financial statements have been reclassified to conform to current period presentation.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Schedule of Changes in Contract Assets and Liabilities	The following table present changes in our contract assets and liabilities during the six months ended June 30, 2021 and 2020: Schedule of Changes in Contract Assets and Liabilities Balance at Addition Revenue Billings Balance at Six months ended June 30, 2021 Contract assets: Accounts receivable, unbilled $ 523,522 $ - $ 1,944,919 $ (1,956,366 ) $ 512,075 Six months ended June 30, 2020 Contract assets: Accounts receivable, unbilled $ 23,371 $ 276,023 $ 208,404 $ (57,558 ) $ 450,240 Balance at Addition Billings Recognized Balance at Six months ended June 30, 2021 Contract liabilities: Deferred revenue $ 996,131 $ - $ 2,141,905 $ (2,195,089 ) $ 942,947 Six months ended June 30, 2020 Contract liabilities: Deferred revenue $ 754,073 $ 195,448 $ 1,482,894 $ (1,520,617 ) $ 911,798
Schedule of Segment Information	Information by operating segment is as follows: Schedule of Segment Information For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Revenues Document Management $ 791,004 $ 622,865 $ 1,526,822 $ 1,240,916 Document Conversion 2,118,642 1,213,317 4,018,043 1,808,930 Total revenues $ 2,909,646 $ 1,836,182 $ 5,544,865 $ 3,049,846 Gross profit Document Management $ 638,169 $ 486,127 $ 1,225,700 $ 920,832 Document Conversion 1,175,898 685,266 2,193,271 995,805 Total gross profit $ 1,814,067 $ 1,171,393 $ 3,418,971 $ 1,916,637 Capital additions, net Document Management $ - $ 4,717 $ 38,116 $ 7,911 Document Conversion 165,455 12,981 361,522 17,529 Total capital additions, net $ 165,455 $ 17,698 $ 399,638 $ 25,440 As of June 30, 2021 2020 Total assets Document Management $ 1,562,655 $ 2,295,165 Document Conversion 9,675,391 8,049,468 Total assets $ 11,238,046 $ 10,344,633

Business Acquisitions _ Earno_2

Business Acquisitions – Earnout Liability (Tables)	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of Pro Forma Information	The following unaudited pro forma information presents a summary of the condensed consolidated results of operations for the Company as if the acquisitions of Graphic Sciences and CEO Image had occurred on January 1, 2020. Schedule of Pro Forma Information For the six months ended June 30, 2020 (unaudited) June 30, 2020 Total revenues $ 4,482,809 Net loss $ (721,755 ) Basic and diluted net loss per share $ (0.26 ) For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Graphic Sciences: Total revenues $ 2,028,798 $ 1,192,164 $ 3,872,019 $ 1,843,221 Net income 279,374 $ 61,984 $ 497,895 $ 141,326 For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 CEO Image: Total revenues $ 139,591 $ 64,519 $ 272,196 $ 64,519 Net income $ - (a) $ - (a) $ - (a) $ - (a) (a) Total earnings from the CEO Image acquisition are impracticable to disclose as they are not accounted for separately because its operations and financial reporting were merged with existing operations and financial reporting.

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	At June 30, 2021, intangible assets consisted of the following: Schedule of Intangible Assets Estimated Accumulated Useful Life Costs Amortization Net Trade names 10 $ 119,000 $ (15,867 ) $ 103,133 Customer contracts 5 8 1,242,000 (268,400 ) 973,600 $ 1,361,000 $ (284,267 ) $ 1,076,733 At December 31, 2020, intangible assets consisted of the following: Estimated Accumulated Useful Life Costs Amortization Net Trade names 10 $ 119,000 $ (9,917 ) $ 109,083 Customer contracts 5 8 1,242,000 (166,112 ) 1,075,888 $ 1,361,000 $ (176,029 ) $ 1,184,971
Schedule of Amortization Expense for Intangible Assets	Schedule of Amortization Expense for Intangible Assets For the Twelve Months Ending June 30, Amount 2022 $ 216,475 2023 216,475 2024 216,475 2025 212,108 2026 137,608 Thereafter 77,592 Intangible assets $ 1,076,733

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Summary of Changes in Fair Value of Earnout Liabilities	The following table provides a summary of the changes in fair value of the earnout liabilities for the three and six months ended June 30, 2021: Summary of Changes in Fair Value of Earnout Liabilities Three months ended June 30, 2021 Fair value at March 31, 2021 $ 2,513,950 Payment (954,733 ) Change in fair value 7,261 Fair value at June 30, 2021 $ 1,566,478 Six months ended June 30, 2021 Fair value at December 31, 2020 $ 2,444,000 Payment (954,733 ) Change in fair value 77,211 Fair value at June 30, 2021 $ 1,566,478

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment are comprised of the following: Schedule of Property and Equipment June 30, 2021 December 31, 2020 Computer hardware and purchased software $ 1,407,667 $ 1,019,259 Leasehold improvements 286,337 275,106 Furniture and fixtures 82,056 82,056 Property and equipment, gross 1,776,060 1,376,421 Less: accumulated depreciation (765,748 ) (677,669 ) Property and equipment, net $ 1,010,312 $ 698,752

Notes Payable _ Unrelated Par_2

Notes Payable – Unrelated Parties (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Schedule of Notes Payable to Unrelated Parties	The table below summarizes all notes payable at June 30, 2021 and December 31, 2020, respectively, with the exception of related party notes disclosed in Note 10 “Notes Payable - Related Parties.” Schedule of Notes Payable to Unrelated Parties June 30, 2021 December 31, 2020 PPP Note (a) $ - $ 838,700 2020 Notes 2,000,000 2,000,000 Total notes payable $ 2,000,000 $ 2,838,700 Less unamortized debt issuance costs (172,898 ) (224,767 ) Less unamortized debt discount (177,778 ) (231,111 ) Less current portion - (580,638 ) Long-term portion of notes payable $ 1,649,324 $ 1,802,184 (a) The full amount of the principal and interest on the PPP Note was forgiven in its entirety in January 2021.
Schedule of Future Minimum Principal Payments of Notes Payable	Future minimum principal payments of the 2020 Notes are as follows: Schedule of Future Minimum Principal Payments of Notes Payable As of June 30, Amount 2023 $ 2,000,000 Total $ 2,000,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Rental Payments for Operating Leases	The following table sets forth the future minimum lease payments under these operating leases: Schedule of Future Rental Payments for Operating Leases For the period ending June 30, Amount 2022 $ 954,935 2023 871,294 2024 848,274 2025 812,086 2026 824,564 Thereafter 617,218 Future lease payments under operating lease $ 4,928,371
Schedule of Operating Lease Costs	Schedule of Operating Lease Costs For the Six Months Ending June 30, 2021: Operating cash flows from operating leases $ 371,894 Weighted average remaining lease term – operating leases 5.6 Weighted average discount rate – operating leases 7.1 %

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Schedule of Estimated Values of Warrants Valuation Assumptions	Schedule of Estimated Values of Warrants Valuation Assumptions Warrants Issued Risk-free interest rate 0.88 % Weighted average expected term 5 Expected volatility 130.12 % Expected dividend yield 0.00 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	A summary of stock option activity during the six months ended June 30, 2021 and 2020 is as follows: Schedule of Stock Option Activity Weighted- Weighted- Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2021 145,360 $ 5.61 9 $ 19,200 Outstanding at June 30, 2021 145,360 $ 5.61 9 $ 19,200 Exercisable at June 30, 2021 41,560 $ 9.34 7 $ 19,200 Weighted- Weighted- Average Shares Average Remaining Aggregate Under Exercise Contractual Intrinsic Option Price Life Value Outstanding at January 1, 2020 46,860 $ 9.02 9 $ 19,200 Outstanding at June 30, 2020 46,860 $ 9.02 8 $ 19,200 Exercisable at June 30, 2020 38,785 $ 9.54 8 $ 19,200

Provision For Income Taxes (Tab

Provision For Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Summary of Income Tax Benefits	Income tax benefit consists of the following federal, deferred components for the six months ended June 30, 2021 and 2020: Summary of Income Tax Benefits Six months ended June 30, 2021 Six months ended June 30, 2020 Benefit of net operating losses $ 48,641 $ (154,168 ) Other timing differences 28,609 (62,741 ) Change in valuation allowance, including $ 188,000 (77,250 ) 29,909 Tax benefit $ - $ (188,300 )
Summary of Reconciliation of Income Tax Expense	Summary of Reconciliation of Income Tax Expense Six months ended June 30, 2021 Six months ended June 30, 2020 U.S. statutory rate 21 % 21 % U.S. Federal income tax at statutory rate $ 217,688 $ (234,570 ) Increase (decrease) in income taxes due to: Non-taxable PPP loan and accrued interest recovery (177,467 ) - Non-deductible earnout expense 16,214 - Non-deductible goodwill amortization 19,979 12,810 Other differences 836 4,830 Benefit of acquisition-date purchased deferred tax liability - (188,300 ) Other change in valuation allowance (77,250 ) 216,930 Income tax benefit $ - $ (188,300 )
Summary of Deferred Tax Assets and Liabilities	The approximate tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Summary of Deferred Tax Assets and Liabilities June 30, 2021 December 31, 2020 Deferred tax assets Reserves and accruals not currently deductible for tax purposes $ 49,000 $ 51,000 Amortizable assets 68,000 72,000 Net operating loss carryforwards 3,971,000 4,020,000 Deferred tax assets 4,088,000 4,143,000 Deferred tax liabilities Property and equipment (164,000 ) (143,000 ) Net Deferred tax assets 3,924,000 4,000,000 Valuation allowance (3,924,000 ) (4,000,000 ) Deferred tax assets and liabilities $ - $ -

Liquidity and Management_s Pl_2

Liquidity and Management’s Plans (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended	114 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2021
Schedule of Capitalization, Long-term Debt [Line Items]
Proceeds from Issuance of Long-term Debt and Capital Securities, Net			$ 18,600,000
Cash and Cash Equivalents, at Carrying Value	$ 1,140,631	$ 1,907,882	1,140,631
Net working capital	380,126		380,126
Retained Earnings (Accumulated Deficit)	21,961,048	22,996,267	$ 21,961,048
Earnout liabilities	$ 954,733
Proceeds from private placement		3,500,000
Debt instrument, coversion of debt		$ 6,000,000
Conversion price		$ 4
Proceeds from issuance promissory notes		$ 2,000,000
Interest rate		12.00%
Maturity date		Feb. 28, 2023
Reduced outstanding debt		$ 3,000,000

Schedule of Changes in Contract

Schedule of Changes in Contract Assets and Liabilities (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Accounting Policies [Abstract]
Unbilled Accounts receivables, balance at beginning of period	$ 523,522	$ 23,371
Unbilled Accounts receivables, Addition from acquisition		276,023
Unbilled Accounts receivables, revenue recognized in advance of billings	1,944,919	208,404
Unbilled Accounts receivables, billings	(1,956,366)	(57,558)
Unbilled Accounts receivables, balance at end of period	512,075	450,240
Deferred revenue, balance at beginning of period	996,131	754,073
Deferred revenue, Addition from acquisition		195,448
Deferred revenue, billings	2,141,905	1,482,894
Deferred revenue, recognized revenue	(2,195,089)	(1,520,617)
Deferred revenue, balance at end of period	$ 942,947	$ 911,798

Schedule of Segment Information

Schedule of Segment Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total revenues	$ 2,909,646	$ 1,836,182	$ 5,544,865	$ 3,049,846
Total gross profit	1,814,067	1,171,393	3,418,971	1,916,637
Total capital additions, net	165,455	17,698	399,638	25,440
Total assets	11,238,046	10,344,633	11,238,046	10,344,633	$ 10,344,633
Document Management [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total revenues	791,004	622,865	1,526,822	1,240,916
Total gross profit	638,169	486,127	1,225,700	920,832
Total capital additions, net		4,717	38,116	7,911
Total assets	1,562,655	2,295,165	1,562,655	2,295,165
Document Conversion [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total revenues	2,118,642	1,213,317	4,018,043	1,808,930
Total gross profit	1,175,898	685,266	2,193,271	995,805
Total capital additions, net	165,455	12,981	361,522	17,529
Total assets	$ 9,675,391	$ 8,049,468	$ 9,675,391	$ 8,049,468

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)Segment	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Property, Plant and Equipment [Line Items]
Revenue, Remaining Performance Obligation, Percentage	95.00%		95.00%
Revenue, Remaining Performance Obligation, Amount	$ 48,454		$ 48,454		$ 45,323
Inventory Adjustments	24,000		24,000		$ 15,000
Research and development expense	95,374	$ 80,854	197,569	$ 168,749
Advertising expense	$ 366	$ 1,691	$ 1,041	$ 3,680
Percentage of valuation allowance established on deferred tax assets			100.00%		100.00%
Number of operating segments | Segment			2
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			7 years
Computer Hardware and Purchased Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			3 years
Computer Hardware and Purchased Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			7 years
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			7 years
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life			10 years
Intellinetics Ohio and Graphic Sciences [Member]
Property, Plant and Equipment [Line Items]
Percentage of voting rights outstanding	50.00%		50.00%

Schedule of Pro Forma Informati

Schedule of Pro Forma Information (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Total revenues				$ 4,482,809
Net income (loss)				$ (721,755)
Basic and diluted net loss per share				$ (0.26)
Graphic Sciences [Member]
Business Acquisition [Line Items]
Total revenues		$ 2,028,798	$ 1,192,164	$ 3,872,019	$ 1,843,221
Net income (loss)		279,374	61,984	497,895	141,326
CEO Image [Member]
Business Acquisition [Line Items]
Total revenues		139,591	64,519	272,196	64,519
Net income (loss)	[1]
[1]	Total earnings from the CEO Image acquisition are impracticable to disclose as they are not accounted for separately because its operations and financial reporting were merged with existing operations and financial reporting.

Business Acquisitions _ Earno_3

Business Acquisitions – Earnout Liability (Details Narrative) - USD ($)	Jun. 10, 2021	Jun. 08, 2021	Apr. 21, 2020	Mar. 02, 2020	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020
Entity Listings [Line Items]
Earnout liability					$ 1,566,478	$ 1,566,478		$ 2,513,950	$ 2,444,000
Change in fair value of earnout liabilities						(77,211)
Graphic Sciences, Inc. [Member]
Entity Listings [Line Items]
Business Combination, Consideration Transferred				$ 3,906,253
Earnout liability				686,200	1,410,217	1,410,217
Change in fair value of earnout liabilities					0	69,950
Graphic Sciences, Inc. [Member] | First Annual Period [Member]
Entity Listings [Line Items]
Business Combination, Consideration Transferred		$ 769,733
Graphic Sciences, Inc. [Member] | Seller [Member] | Three Year Period [Member]
Entity Listings [Line Items]
Earnout liability				833,000
Maximum payout				$ 2,500,000
CEO Image Systems [Member[
Entity Listings [Line Items]
Business Combination, Consideration Transferred			$ 128,832
Earnout liability			203,000		156,261	156,261
Change in fair value of earnout liabilities					$ 7,261	$ 7,261
Installment payments			170,000
CEO Image Systems [Member[ | First Annual Period [Member]
Entity Listings [Line Items]
Business Combination, Consideration Transferred	$ 185,000
CEO Image Systems [Member[ | Seller [Member] | Two Year Period [Member]
Entity Listings [Line Items]
Earnout liability			185,000
Maximum payout			$ 370,000

Schedule of Intangible Assets (

Schedule of Intangible Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, cost	$ 1,361,000	$ 1,361,000
intangible assets, accumulated amortization	(284,267)	(176,029)
Intangible assets, net	$ 1,076,733	$ 1,184,971
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life	10 years	10 years
Intangible assets, cost	$ 119,000	$ 119,000
intangible assets, accumulated amortization	(15,867)	(9,917)
Intangible assets, net	103,133	109,083
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, cost	1,242,000	1,242,000
intangible assets, accumulated amortization	(268,400)	(166,112)
Intangible assets, net	$ 973,600	$ 1,075,888
Customer Contracts [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life	5 years	5 years
Customer Contracts [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Estimated Useful Life	8 years	8 years

Schedule of Amortization Expens

Schedule of Amortization Expense for Intangible Assets (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 216,475
2023	216,475
2024	216,475
2025	212,108
2026	137,608
Thereafter	77,592
Intangible assets	$ 1,076,733	$ 1,184,971

Intangible Assets, Net (Details

Intangible Assets, Net (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 54,119	$ 51,936	$ 108,238	$ 67,792

Summary of Changes in Fair Valu

Summary of Changes in Fair Value of Earnout Liabilities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair value at December 31, 2020	$ 2,513,950		$ 2,444,000
Fair value at December 31, 2020	(954,733)		(954,733)
Fair value at December 31, 2020	7,261		77,211
Fair value at December 31, 2020	$ 1,566,478		$ 1,566,478

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair value measurement, valuation description	Key unobservable inputs include revenue growth rates, which ranged from 0% to 7%, and volatility rates, which were 20% for gross profits. An increase in future revenues and gross profits may result in a higher estimated fair value while a decrease in future revenues and gross profits may result in a lower estimated fair value of the earnout liabilities

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Computer hardware and purchased software	$ 1,407,667	$ 1,019,259
Leasehold improvements	286,337	275,106
Furniture and fixtures	82,056	82,056
Property and equipment, gross	1,776,060	1,376,421
Less: accumulated depreciation	(765,748)	(677,669)
Property and equipment, net	$ 1,010,312	$ 698,752

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 47,313	$ 34,814	$ 88,078	$ 47,050

Schedule of Notes Payable to Un

Schedule of Notes Payable to Unrelated Parties (Details) - USD ($)		Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total notes payable		$ 2,000,000	$ 2,838,700
Less unamortized debt issuance costs		(172,898)	(224,767)
Less unamortized debt discount		(177,778)	(231,111)
Less current portion			(580,638)
Long-term portion of notes payable		1,649,324	1,802,184
PPP Note Payable [Member]
Debt Instrument [Line Items]
Total notes payable	[1]		838,700
2020 Notes [Member]
Debt Instrument [Line Items]
Total notes payable		$ 2,000,000	$ 2,000,000
[1]	The full amount of the principal and interest on the PPP Note was forgiven in its entirety in January 2021.

Schedule of Future Minimum Prin

Schedule of Future Minimum Principal Payments of Notes Payable (Details)	Jun. 30, 2021USD ($)
Debt Disclosure [Abstract]
2023	$ 2,000,000
Total	$ 2,000,000

Notes Payable _ Unrelated Par_3

Notes Payable – Unrelated Parties (Details Narrative) - USD ($)	Apr. 15, 2020	Mar. 02, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Short-term Debt [Line Items]
Accrued interest			$ 0		$ 0		$ 5,941
Interest Expense, Debt			113,271	$ 115,365	226,315	$ 318,285
Proceeds from Issuance of Debt							$ 2,000,000
Debt Instrument, Maturity Date							Feb. 28, 2023
Amortization of Debt Discount (Premium)						18,296
Notes Payable			2,000,000		2,000,000		$ 2,838,700
Gain (Loss) on Extinguishment of Debt					845,083	287,426
Securities Purchase Agreement [Member] | Accredited Investors [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		12.00%
Debt Instrument, Interest Rate, Effective Percentage		14.00%
Default penalty percentage		20.00%
Amortization of Debt Discount (Premium)		$ 320,000	26,667	$ 26,667	53,333	$ 35,556
Stock Issued During Period, Shares, New Issues		80,000
PNC Bank [Member] | Paycheck Protection Program [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Notes Payable	$ 838,700
Debt Instrument, Term	2 years
Convertible Promissory Notes [Member] | Taglich Brothers, Inc.[Member]
Short-term Debt [Line Items]
Sale of stock price per share		$ 4
Number of common stock share earned fees		35,250
Convertible Promissory Notes [Member] | Two Thousand Sixteen To Two Thousand Eighteen [Member]
Short-term Debt [Line Items]
Principal amount			$ 3,535,000		$ 3,535,000
Common stock at a conversion price		1,433,689
Sale of stock price per share		$ 4
12% Subordinated Notes [Member] | Securities Purchase Agreement [Member] | Accredited Investors [Member]
Short-term Debt [Line Items]
Sale of stock price per share		$ 1,000
Sale of Stock, Number of Shares Issued in Transaction		2,000
Stock Issued During Period, Value, Conversion of Units		$ 1,000
Stock Issued During Period, Shares, Conversion of Units		40
Proceeds from Issuance of Debt		$ 2,000,000
Debt Instrument, Maturity Date		Feb. 28, 2023

Notes Payable - Related Parti_2

Notes Payable - Related Parties (Details Narrative) - USD ($)	Mar. 02, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	May 15, 2020
Transfer of Financial Assets Accounted for as Sales [Line Items]
Interest Expense, Debt		$ 113,271	$ 115,365	$ 226,315	$ 318,285
Convertible Promissory Notes [Member] | 2019 Related Notes [Member]
Transfer of Financial Assets Accounted for as Sales [Line Items]
Number of convertible units, value	$ 350,000
Convertible promissory notes						$ 47,728
Convertible Promissory Notes [Member] | 2016-2019 [Member] | Related Party [Member]
Transfer of Financial Assets Accounted for as Sales [Line Items]
Debt beneficial interest rate				5.00%
Principal amount		$ 1,562,728		$ 1,562,728
Common stock at a conversion price	1,433,689
Sale of stock price per share	$ 4
Notes Payable - Related Parties [Member]
Transfer of Financial Assets Accounted for as Sales [Line Items]
Interest Expense, Debt			$ 1,431		$ 88,941

Deferred Compensation (Details

Deferred Compensation (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2021	Dec. 31, 2020
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred Compensation Liability, Current			$ 100,828	$ 100,828
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 3,292	$ 16,338
Employment Agreements [Member] | Founders [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred Compensation Liability, Current				$ 100,828

Schedule of Future Rental Payme

Schedule of Future Rental Payments for Operating Leases (Details)	Jun. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 954,935
2023	871,294
2024	848,274
2025	812,086
2026	824,564
Thereafter	617,218
Future lease payments under operating lease	$ 4,928,371

Schedule of Operating Lease Cos

Schedule of Operating Lease Costs (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating cash flows from operating leases	$ 371,894
Weighted average remaining lease term - operating leases	5 years 7 months 6 days
Weighted average discount rate - operating leases	7.10%

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative)	Jan. 02, 2020USD ($)	May 31, 2021USD ($)	Jun. 30, 2021USD ($)ft²	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)ft²	Jun. 30, 2020USD ($)	Jan. 01, 2010ft²
Loss Contingencies [Line Items]
Area of rental square feet of office space | ft²							6,000
Lease commenced date					Jan. 1, 2010
Lease extension date					Aug. 9, 2016
Lease expiration date					Dec. 31, 2021
Monthly rental payment					$ 24,171
Operating Lease, Cost			$ 260,907	$ 217,570	498,982	$ 294,620
Short-term Lease, Cost			17,314		56,418
Warehouse equipment committed to purchase			$ 300,276		$ 300,276
Sterling Heights, Michigan [Member]
Loss Contingencies [Line Items]
Area of rental square feet of office space | ft²			37,000		37,000
Lease commenced date					May 1, 2021
Lease expiration date					Apr. 30, 2028
Monthly rental payment		$ 20,452
Warehouse Equipment [Member]
Loss Contingencies [Line Items]
Warehouse equipment committed to purchase			$ 351,854		$ 351,854
Graphic Sciences, Inc. [Member] | Vehicles [Member]
Loss Contingencies [Line Items]
Lease extension date	Oct. 31, 2024
Monthly rental payment	$ 2,618
Graphic Sciences, Inc. [Member] | Traverse City [Member]
Loss Contingencies [Line Items]
Lease extension date	Jan. 31, 2024
Monthly rental payment	$ 4,500
Graphic Sciences, Inc. [Member] | Madison Heights [Member]
Loss Contingencies [Line Items]
Monthly rental payment	$ 1,605
Graphic Sciences, Inc. [Member] | Madison Heights [Member]
Loss Contingencies [Line Items]
Lease extension date	Aug. 31, 2026
Lessor, Operating Lease, Description	Our subsidiary, Graphic Sciences, uses 36,000 square feet of leased space in Madison Heights, Michigan as its main facility. Graphic Sciences uses about 20,000 square feet for its records storage services, with the remainder of the space used for production, sales, and administration.
Monthly rental payment	$ 41,508
Graphic Sciences, Inc. [Member] | Madison Heights [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Monthly rental payment	$ 45,828
Graphic Sciences, Inc. [Member] | Highland Park, MI, and a Satellite Office [Member]
Loss Contingencies [Line Items]
Lease extension date	Sep. 30, 2021
Lessor, Operating Lease, Description	Graphic Sciences also leases and uses a separate 20,000 square foot building for document storage in Highland Park, Michigan, and a satellite office in Traverse City, Michigan for production.
Monthly rental payment	$ 11,250

Schedule of Estimated Values of

Schedule of Estimated Values of Warrants Valuation Assumptions (Details) - Placement Agent [Member]	Mar. 02, 2020
Measurement Input, Risk Free Interest Rate [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Warrants, measurement input percentage	0.88
Measurement Input, Expected Term [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Warrants, term	5 years
Measurement Input, Price Volatility [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Warrants, measurement input percentage	130.12
Measurement Input, Expected Dividend Rate [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Warrants, measurement input percentage	0

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)	Mar. 02, 2020	Feb. 29, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Mar. 20, 2020	Feb. 28, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares issued			2,823,072		2,823,072		2,810,865
Common stock, shares outstanding			2,823,072		2,823,072		2,810,865
Proceeds from private placement							$ 3,500,000
Warrant to purchase of shares of common stock				95,500		95,500
Fair value of warrants issued price per share				$ 3.90		$ 3.90
Interest Expense, Debt			$ 113,271	$ 115,365	$ 226,315	$ 318,285
Common stock, shares authorized			25,000,000		25,000,000		25,000,000
Private Placement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Interest Expense, Debt			$ 25,935	$ 25,935	$ 51,869	$ 34,580
Placement Agent [Member] | Private Placement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Payment to placement agent on private placement offering	$ 440,000
Percentage of gross proceeds paid to private placement agent	8.00%
Warrant to purchase of shares of common stock	95,500
Class of warrant or right, exercise price of warrants or rights	$ 4
Warrants and Rights Outstanding, Term	5 years
Board of Directors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reverse stock split, description		effectuate a reverse split of our issued and outstanding shares of common stock at a ratio of one-for-fifty (1-for-50) (the “Reverse Split”), and reduce the number of authorized shares of our common stock to 25,000,000 shares (the “25,000,000 Share Amendment”).
Common stock, shares authorized	75,000,000	160,000,000						25,000,000	25,000,000
Board of Directors [Member] | Post-split Basis [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, shares authorized	1,500,000	3,200,000
Securities Purchase Agreement [Member] | Accredited Investors [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of stock issued during period, shares	80,000
Securities Purchase Agreement [Member] | Accredited Investors [Member] | 12% Subordinated Notes [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of sale of stock transaction	2,000
Sale of stock price per share	$ 1,000
Proceeds from private placement	$ 2,000,000
Number of convertible units, value	$ 1,000
Percentage of debt interest	12.00%
Number of convertible units, shares	40
Securities Purchase Agreement [Member] | Accredited Investors [Member] | Private Placement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of sale of stock transaction	955,000
Number of stock issued during period, shares	875,000
Sale of stock price per share	$ 4
Proceeds from private placement	$ 3,500,000
2015 Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, capital shares reserved for future issuance			497,330		497,330
Exercise of Outstanding Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Common stock, capital shares reserved for future issuance			135,902		135,902
Warrants [Member] | Private Placement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Underwriting expenses	236,761
Debt Issuance Costs, Net	$ 135,291
Fair value of warrants issued price per share	$ 3.90
Warrants [Member] | Placement Agent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Underwriting expenses	$ 307,867
Debt Issuance Costs, Net	$ 175,924
Warrant One [Member] | Placement Agent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant to purchase of shares of common stock			3,077		3,077
Class of warrant or right, exercise price of warrants or rights			$ 37.50		$ 37.50
Warrant Two [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant to purchase of shares of common stock			3,000		3,000
Class of warrant or right, exercise price of warrants or rights			$ 15		$ 15
Warrant Three [Member] | Placement Agent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant to purchase of shares of common stock			17,200		17,200
Class of warrant or right, exercise price of warrants or rights			$ 12.50		$ 12.50
Warrant Four [Member] | Placement Agent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant to purchase of shares of common stock			15,999		15,999
Class of warrant or right, exercise price of warrants or rights			$ 9		$ 9
Warrant Five [Member] | Placement Agent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant to purchase of shares of common stock			95,500		95,500
Class of warrant or right, exercise price of warrants or rights			$ 4		$ 4

Schedule of Stock Option Activi

Schedule of Stock Option Activity (Details) - Equity Option [Member] - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Under Option, Outstanding beginning balance	145,360	46,860
Weighted- Average Exercise Price, Outstanding beginning balance	$ 5.61	$ 9.02
Weighted Average Remaining Contractual Life Outstanding, beginning	9 years	9 years
Aggregate Intrinsic Value, Outstanding, beginning balance	$ 19,200	$ 19,200
Shares Under Option, Outstanding ending balance	145,360	46,860
Weighted- Average Exercise Price, Outstanding ending balance	$ 5.61	$ 9.02
Weighted Average Remaining Contractual Life Outstanding, ending	9 years	8 years
Aggregate Intrinsic Value, Outstanding ending balance	$ 19,200	$ 19,200
Shares Under Option, Exercisable ending balance	41,560	38,785
Weighted- Average Exercise Price, Exercisable ending balance	$ 9.34	$ 9.54
Weighted Average Remaining Contractual Life, Exercisable, ending	7 years	8 years
Aggregate Intrinsic Value, Exercisable ending balance	$ 19,200	$ 19,200

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($)	Feb. 15, 2021	Jan. 02, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount			$ 276,678		$ 276,678		$ 322,874
Employee service share-based compensation, unrecognized compensation not yet recognized, period					3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value					$ 10,800	$ 14,963
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	12,207	16,429
Employee Benefits and Share-based Compensation					57,500		$ 57,500
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Benefits and Share-based Compensation			$ 23,098	$ 7,109	$ 46,196	$ 18,682

Concentrations (Details Narrati

Concentrations (Details Narrative) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue Benchmark [Member] | The State of Michigan [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	45.00%	43.00%	48.00%	40.00%
Revenue Benchmark [Member] | Quicken Loans [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	9.00%	11.00%	10.00%	8.00%
Revenue Benchmark [Member] | Government Contracts [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	59.00%	57.00%	64.00%	58.00%
Accounts Receivable [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			36.00%		54.00%
Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			12.00%		16.00%

Summary of Income Tax Benefits

Summary of Income Tax Benefits (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Benefit of net operating losses			$ 48,641	$ (154,168)
Other timing differences			28,609	(62,741)
Change in valuation allowance, including $188,000 reduction in valuation allowance due to purchased deferred tax liability in 2020			(77,250)	29,909
Tax benefit				$ (188,300)

Summary of Income Tax Benefit_2

Summary of Income Tax Benefits (Details) (Parenthetical)	6 Months Ended
	Jun. 30, 2020USD ($)
Income Tax Disclosure [Abstract]
Reduction in valuation allowance	$ 188,000

Summary of Reconciliation of In

Summary of Reconciliation of Income Tax Expense (Details) (Parenthetical)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
U.S. statutory rate	21.00%	21.00%

Summary of Reconciliation of _2

Summary of Reconciliation of Income Tax Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
U.S. statutory rate			21.00%	21.00%
U.S. Federal income tax at statutory rate			$ 217,688	$ (234,570)
Non-taxable PPP loan and accrued interest recovery			(177,467)
Non-deductible earnout expense			16,214
Non-deductible goodwill amortization			19,979	12,810
Other differences			836	4,830
Benefit of acquisition-date purchased deferred tax liability				(188,300)
Other change in valuation allowance			(77,250)	216,930
Income tax benefit				$ (188,300)

Summary of Deferred Tax Assets

Summary of Deferred Tax Assets and Liabilities (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Reserves and accruals not currently deductible for tax purposes	$ 49,000	$ 51,000
Amortizable assets	68,000	72,000
Net operating loss carryforwards	3,971,000	4,020,000
Deferred tax assets	4,088,000	4,143,000
Property and equipment	(164,000)	(143,000)
Net Deferred tax assets	3,924,000	4,000,000
Valuation allowance	(3,924,000)	(4,000,000)
Deferred tax assets and liabilities

Provision For Income Taxes (Det

Provision For Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Operating loss carry forwards expiration period	2039
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards		$ 18,988,000	$ 19,129,000