New Products and New Sales Force Amongst Key
Developments Anticipated To Generate Significant Returns
Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a leader in threat
identification, identity authentication, verification and
validation technology solutions, today announced its financial
results for the second quarter ended June 30, 2016.
Revenue for the second quarter ended June 30, 2016 decreased
59.0% to $940,354 compared to $2,291,570 in the same period
of the previous year. Gross profit as a percentage of revenues
increased to 79.6% for the three months ended June 30, 2016
compared to 45.4% for the three months ended June 30, 2015.
Dr. William Roof, Intellicheck CEO, noted, “We believe this
quarter represents a significant turning point for our Company. We
have taken several important steps to successfully achieve the
goals we articulated in Q1 that reflect the next phase of
implementation of the turn around strategic plan we initiated in
2015. Our investment in research and development, which is critical
to our ongoing growth and industry standing as a leader in our
space, has led to the launch of Retail ID Mobile and the
development of another product we will be announcing shortly. Our
accelerated new product development initiatives are now being
guided by a new product development director. In addition, we have
followed through with our commitment to staff and train a new,
larger and more experienced sales force to maximize adoption of our
existing product line, move our new products into our key verticals
and drive our expansion into new markets, all of which we expect to
result in high margin, recurring revenues. It should be noted that
Q2 revenues from last year included over $1,000,000 in low margin
hardware sales to a major international telecommunications
corporation, and approximately $269,000 in revenues from our
wireless business unit that we divested later in 2015."
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and certain non-recurring charges) was a loss of
($1,293,000) for the second quarter of 2016 compared to a loss of
($809,000) for the second quarter of 2015. A reconciliation of
adjusted EBITDA to net loss is provided elsewhere in this release.
The net loss for the three months ended June 30, 2016 was
($1,775,116) or ($0.19) per diluted share compared to a net loss of
($1,213,973) or ($0.12) per diluted share for the quarter ended
June 30, 2015.
Cash and cash equivalents at the end of the quarter totaled $4.0
million or $0.39 per share. Stockholders’ equity totaled $13.8
million at the end of the quarter or $1.35 per share.
"We are a very different Company than we were just one year ago.
We believe our strategic decisions have led to the new market
awareness that is beginning to generate the traction we expected
with the industry leading products that address demonstrated and
growing market needs. Moreover, our confidence reflects the strong
support we are receiving from current customers who have voiced
their appreciation for our products and services. That confidence
underlies our strong belief that we will continue to move the
Company forward with our focus on growth strategies and building
long-term shareholder value,” Dr. Roof concluded.
The financial results reported today do not take into account
any adjustments that may be required in connection with the
completion of the Company’s review process and should be considered
preliminary until Intellicheck Mobilisa files its Form 10-Q for the
fiscal quarter ended June 30, 2016.
INTELLICHECK MOBILISA, INC. CONSOLIDATED
BALANCE SHEETS ASSETS June
30, December 31, 2016 2015 (Unaudited) CURRENT ASSETS: Cash and
cash equivalents $ 3,992,757 $ 5,953,257
Accounts receivable, net of allowance of
$18,411 as of June 30, 2016 and December 31, 2015
816,523 1,158,972 Inventory 76,977 74,732 Other current assets
303,644 178,362 Total current assets
5,189,901 7,365,323 NOTES RECEIVABLE, net of current portion
131,246 150,496 PROPERTY AND EQUIPMENT, net 299,355 325,427
GOODWILL 8,101,661 8,101,661 INTANGIBLE ASSETS, net 2,312,346
2,470,127 OTHER ASSETS 61,298 59,800
Total assets $ 16,095,807 $ 18,472,834
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES: Accounts payable $ 81,555 $ 260,276
Accrued expenses 881,133 536,316 Deferred revenue, current portion
1,019,717 909,233 Total current
liabilities 1,982,405 1,705,825 OTHER LIABILITIES Deferred
revenue, long-term portion 271,915 341,242 Deferred rent
81,796 99,355 Total liabilities
2,336,116 2,146,422 COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized; 10,177,735 and 9,878,906 shares issued and
outstanding, respectively
10,178 9,879 Additional paid-in capital 116,301,865 114,950,278
Accumulated deficit (102,552,352 ) (98,633,745 )
Total stockholders' equity 13,759,691
16,326,412 Total liabilities and stockholders' equity
$ 16,095,807 $ 18,472,834
INTELLICHECK MOBILISA, INC. CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June
30, Six Months Ended June 30,
2016 2015 2016
2015 REVENUES $ 940,354 $
2,291,570 $ 1,891,022 $ 3,278,697 COST OF REVENUES (191,654
) (1,250,746 ) (354,696 ) (1,642,908 ) Gross
profit 748,700 1,040,824 1,536,326 1,635,789 OPERATING
EXPENSES Selling, general and administrative 1,830,147 1,578,255
3,846,923 3,004,545 Research and development 697,747
680,815 1,617,203 1,176,753
Total operating expenses 2,527,894
2,259,070 5,464,126 4,181,298
Loss from operations (1,779,194 ) (1,218,246 ) (3,927,800 )
(2,545,509 ) OTHER INCOME (EXPENSE) Interest and other
income 4,078 4,829 9,193 32,158 Interest expense -
(556 ) - (2,735 ) Net loss $
(1,775,116 ) $ (1,213,973 ) $ (3,918,607 ) $ (2,516,086 )
PER SHARE INFORMATION Loss per common share - Basic/Diluted $ (0.19
) $ (0.12 ) $ (0.42 ) $ (0.27 )
Weighted average common shares used in
computing per share amounts -
Basic/Diluted 9,108,856 9,835,927
9,393,587 9,448,777
INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENT
OF STOCKHOLDERS’ EQUITY
For the six months ended June 30, 2016
(Unaudited)
Additional
Common Stock Paid-in
Accumulated
Shares Amount
Capital Deficit Total
BALANCE, January 1, 2016 9,878,906 $ 9,879 $ 114,950,278 $
(98,633,745 ) $ 16,326,412 Stock-based compensation expense
- - 667,694 - 667,694
Issuance of common stock, net of costs
1,200,000 1,200 1,779,600 - 1,780,800
Purchase and retirement of common
stock
(979,114 ) (979 ) (1,095,629 ) - (1,096,608 ) Vesting of restricted
stock 77,943 78 (78 ) - - Net loss - -
- (3,918,607 ) (3,918,607 ) BALANCE,
June 30, 2016 10,177,735 $ 10,178 $ 116,301,865
$ (102,552,352 ) $ 13,759,691
INTELLICHECK MOBILISA, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
2016 2015 CASH FLOWS
FROM OPERATING ACTIVITIES: Net loss $ (3,918,607 ) $ (2,516,086 )
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 223,170 571,023 Noncash stock-based
compensation expense 667,694 267,408 Deferred rent (17,559 )
(13,039 ) Changes in assets and liabilities: Decrease (Increase) in
accounts receivable 342,449 (913,521 ) (Increase) in inventory
(2,245 ) (20,094 ) (Increase) in other current assets (125,282 )
(112,595 ) (Increase) Decrease in other assets (1,498 ) 12,207
Increase in accounts payable, accrued expenses 166,096 534,033
Increase (Decrease) in deferred revenue 41,157
(304,580 ) Net cash used in operating activities (2,624,625
) (2,495,244 ) CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of patents - (125,000 ) Purchases of property and
equipment (39,316 ) (71,828 ) Collection on note receivable
19,249 - Net cash used in investing activities
(20,067 ) (196,828 ) CASH FLOWS FROM FINANCING
ACTIVITIES: Net proceeds from issuance of common stock 1,780,800
7,630,757 Purchase and retirement of common stock (1,096,608 ) -
Net proceeds from issuance of common stock
from the exercise of stock options
- 977 Payments on note payable - (2,464 ) Net
cash provided by financing activities 684,192
7,629,270 Net (decrease) increase in cash and cash
equivalents (1,960,500 ) 4,937,198 CASH AND CASH
EQUIVALENTS, beginning of period 5,953,257
2,966,350 CASH AND CASH EQUIVALENTS, end of period $
3,992,757 $ 7,903,548 Supplemental disclosure
of noncash investing and financing activities: Financing of
property and equipment $ - $ 31,078
A reconciliation of GAAP net loss to
Adjusted EBITDA follows:
(Unaudited) Three Months Ended Six Months
Ended June 30, June 30, 2016
2015 2016
2015 Net loss $ (1,775,116 ) $ (1,213,973 ) $
(3,918,607 ) $ (2,516,086 ) Reconciling items: Interest and other -
net (4,078 ) (4,273 ) (9,193 ) (29,423 ) Depreciation and
amortization 116,377 230,702 223,170 571,023 Stock-based
compensation costs
369,664
178,883 667,694
267,408 Adjusted EBITDA
(1,293,153 ) $
(808,661 ) $
(3,036,936 ) $
(1,707,078 )
Earnings Conference Call Information
The Company will hold an earnings conference call today, August
11, at 1:00 p.m. EDT/10:00 a.m. PDT to discuss operating results.
To listen to the earnings conference call, please dial
877-407-8037. For callers outside the U.S., please dial
201-689-8037. The conference call will also be simultaneously
webcast and can be accessed at
http://www.investorcalendar.com/IC/CEPage.asp?ID=175192 and
clicking on the link to the Webcast. The webcast will be available
for 14 days following the conference call.
About Intellicheck Mobilisa
Intellicheck Mobilisa is an industry leader in threat
identification, identity authentication, verification, and
validation systems. Our technology makes it possible for our
customers to enhance the safety and awareness of their facilities
and people, improve customer service, and increase operational
efficiencies. Founded in 1994, Intellicheck has grown to serve
dozens of Fortune 500 companies including retail and financial
industry clients, national defense clients at agencies, major
seaports, and military bases, police departments, and diverse state
and federal government agencies. For more information on
Intellicheck, please visit www.intellicheck.com.
Safe Harbor Statement
Statements in this news release about Intellicheck Mobilisa’s
future expectations, including: the advantages of our products,
future demand for Intellicheck Mobilisa’s existing and future
products, whether revenue and other financial metrics will improve
in future periods, whether Intellicheck Mobilisa will be able to
execute its turn-around plan or whether successful execution of the
plan will result in increased revenues, whether sales of our
products will continue at historic levels or increase, whether
brand value and market awareness will grow, whether the Company can
leverage existing partnerships or enter into new ones, and all
other statements in this release, other than historical facts, are
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 (“PSLRA”). This statement
is included for the express purpose of availing Intellicheck
Mobilisa, Inc. of the protections of the safe harbor provisions of
the PSLRA. It is important to note that actual results and ultimate
corporate actions could differ materially from those in such
forward-looking statements based on such factors as market
acceptance of Intellicheck Mobilisa’s products, changing levels of
demand for Intellicheck Mobilisa’s current and future products,
Intellicheck Mobilisa’s ability to reduce or maintain expenses
while increasing sales, customer results achieved using our
products in both the short and long term, success of future
research and development activities, Intellicheck Mobilisa’s
ability to successfully manufacture, market and sell its products,
Intellicheck Mobilisa’s ability to manufacture its products in
sufficient quantities to meet demand within required delivery time
periods while meeting its quality control standards, any delays or
difficulties in the Company’s supply chain, the success of the
Company’s sales and marketing efforts coupled with the typically
long sales and implementation cycle for its products, Intellicheck
Mobilisa’s ability to enforce its intellectual property rights,
changes in laws and regulations applicable to the Company’s
products, the Company’s continued ability to access
government-provided data, the risks inherent in doing business with
the government including audits and contract cancellations,
liability resulting from any security breaches or product failure,
and other risks detailed from time to time in Intellicheck
Mobilisa’s reports filed with the SEC. We do not assume any
obligation to update the forward-looking information.
Adjusted EBITDA
Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP
financial performance measurement. Adjusted EBITDA is calculated by
starting with net income (loss) and adding back interest, income
taxes, impairments of long-lived assets and goodwill, depreciation,
amortization and stock-based compensation expense. Adjusted EBITDA
is provided to investors to supplement the results of operations
reported in accordance with GAAP. Management believes that Adjusted
EBITDA provides an additional tool for investors to use in
comparing Intellicheck Mobilisa financial results with other
companies that also use Adjusted EBITDA in their communications to
investors. By excluding non-cash charges such as impairments of
long-lived assets and goodwill, amortization, depreciation and
stock-based compensation, as well as non-operating charges for
interest and income taxes, investors can evaluate the Company's
operations and compare its results on a more consistent basis to
the results of other companies. In addition, adjusted EBITDA is one
of the primary measures that management uses to monitor and
evaluate financial and operating results.
Intellicheck Mobilisa considers Adjusted EBITDA to be an
important indicator of the Company's operational strength and
performance of its business and a useful measure of the Company's
historical operating trends. However, there are significant
limitations to the use of Adjusted EBITDA, because it excludes
interest income and expense, impairments of long-lived assets and
goodwill, and stock based compensation expense, all of which impact
the Company's profitability, as well as depreciation and
amortization related to the use of long-term assets, which benefit
multiple periods. Intellicheck Mobilisa believes that these
limitations are compensated by providing Adjusted EBITDA only as a
supplement to GAAP net income (loss) and clearly identifying the
difference between the two measures. Consequently, Adjusted EBITDA
should not be considered in isolation or as a substitute for net
income (loss) presented in accordance with GAAP. Adjusted EBITDA as
defined by the Company may not be comparable with similarly named
measures provided by other entities.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160811005025/en/
Intellicheck Mobilisa, Inc.Media and Public Relations:Sharon
Schultz (302) 539-3747sschultz@intellicheck.com
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