SaaS Revenues Grew 38% Year Over Year
Fourth Quarter SaaS Revenues Grew 23%
Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity
company delivering on-demand digital and physical identity
validation solutions, today announced its financial results for the
fourth quarter and full-year ended December 31, 2021. Total revenue
for the fourth quarter ended December 31, 2021 grew 27% to
$3,902,000 compared to $3,078,000 in the same period of 2020.
Quarter-over-Quarter SaaS revenue grew 23% and totaled $3,715,000
compared to $3,012,000 in the same period of 2020 and grew 14%
sequentially over the third quarter of 2021.
“We made a number of significant changes in 2021 to move the
Company forward. We have launched Platform 2.0 featuring additional
multinational ID and KYC capabilities. We are also seeing results
from our emphasis on increasing brand awareness with an increase in
inbound leads for the age-restricted market. We believe these
initiatives will drive our continued growth and will promote
additional opportunities with both new and existing clients,” said
Intellicheck CEO Bryan Lewis.
Gross profit as a percentage of revenues was 92.0% for the three
months ended December 31, 2021 compared to 92.6% in the same period
in 2020.
Operating expenses for the three months ended December 31, 2021,
which consist of selling, general and administrative expenses and
research and development expenses, were $4,987,000 for the fourth
quarter of 2021 compared to $2,389,000 for the same period of 2020.
The Company is always looking for synergistic opportunities
including merger and acquisition opportunities. Included within
operating expenses are $454,000 of costs incurred related to this
activity. Also included within operating expenses are $797,000 of
non-cash equity compensation expense. In addition, the company
incurred higher personnel, consulting, and marketing expenses.
Net loss for the three months ended December 31, 2021 was
($1,396,000) or ($0.07) per diluted share compared to Net income of
$1,260,000 or $0.07 per diluted share for the same period in
2020.
Adjusted EBITDA (earnings before gains on debt forgiveness,
interest and other income, income taxes, depreciation,
amortization, equity compensation expense and certain non-recurring
charges) was ($557,000) for the fourth quarter of 2021 as compared
to $635,000 for the same period of 2020. A reconciliation of
adjusted EBITDA to net income (loss) is provided in this
release.
Total revenue for the full year ended December 31, 2021 grew 53%
to $16,393,000 compared to $10,735,000 in the same period of 2020.
Year-over-year SaaS revenue grew 38% and totaled $12,970,000
compared to $9,373,000 in the same period of 2020.
Gross profit as a percentage of revenue was 78.6% for the year
ended December 31, 2021 compared to 86.7% in the same period of
2020. The decrease in gross profit percentage was driven by a
$2,741,000 hardware order from one of our financial institution
customers in 2021 which they are deploying in their bank branches
to integrate our software into their workflow. Excluding hardware
sales and related costs, our gross profit as a percentage of
revenues was 93.2% and 92.1% for the years ended December 31, 2021
and 2020, respectively. The increase in this percentage is
primarily due to continued growth of our SaaS revenue.
Operating expenses for the year ended December 31, 2021 were
$17,044,000 compared to $9,569,000 for the same period of 2020.
Included within these operating expenses are the previously
mentioned $454,000 of costs related to merger and acquisition
opportunities and $3,068,000 of non-cash equity compensation
expense. In addition, the company incurred higher personnel costs,
consulting, and marketing expenses.
Net loss for the year ended December 31, 2021 was ($4,146,000)
or ($0.22) per diluted share compared to net income of $558,000 or
$0.03 per diluted share in the same period of 2020. Adjusted EBITDA
(earnings before gains on debt forgiveness, interest and other
income, income taxes, depreciation, amortization, equity
compensation expense and certain non-recurring charges) was
approximately ($925,000) for the year ended December 31, 2021
compared to $329,000 for the same period of 2020. A reconciliation
of adjusted EBITDA to net income (loss) is provided in this
release.
As of December 31, 2021, Cash totaled $13.7 million, and
stockholders’ equity totaled $21.2 million.
The financial results reported today do not consider any
adjustments that may be required in connection with the completion
of the Company’s audit process and should be considered preliminary
until Intellicheck files its Form 10-K for the fiscal year ended
December 31, 2021.
Q1 2022 Outlook
We have learned that one of our financial services clients has
begun a project that will enable them to extend credit to tens of
thousands of additional merchants. This required the financial
services client to put a code freeze on all other development,
which meant multiple retailers that had been expected to go live in
the first half of the year will not. The above-described project
should be an interim delay to our short-term growth as they expect
to resume integrations in the September timeframe. We believe this
short-term pain now represents a likely long-term gain as these
additional applications will now need validations. This is very
likely going to impact our Q1 results and although we still have a
few weeks remaining in the quarter we currently anticipate our
first quarter SaaS revenues will be in the range of $3.2 to $3.35
million.
Conference Call Information
The Company will hold an earnings conference call on March 9th
at 4:30 p.m. ET/1:30 p.m. PT 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.
A replay of the conference call will be available shortly after
completion of the live event. To listen to the replay, please dial
877-660-6853 and use conference identification number 13726737. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13726737. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until March 16, 2022.
INTELLICHECK, INC.
BALANCE SHEETS
DECEMBER 31, 2021 and 2020
2021
2020
(in thousands except share
amounts)
ASSETS
CURRENT ASSETS:
Cash
$
13,651
$
13,121
Accounts receivable, net of allowance of
$3 and $43
as of December 31, 2021, and 2020,
respectively
2,192
2,120
Other current assets
643
341
Total current assets
16,486
15,582
PROPERTY AND EQUIPMENT, net
737
139
GOODWILL
8,102
8,102
INTANGIBLE ASSETS, net
378
483
OPERATING LEASE RIGHT-OF-USE ASSET
-
31
OTHER ASSETS
8
4
Total assets
$
25,711
$
24,341
LIABILITIES AND
STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
368
$
46
Accrued expenses
2,870
1,639
Operating lease liability, current
portion
-
33
Deferred revenue, current portion
1,266
403
Total current liabilities
4,504
2,121
NONCURRENT LIABILITIES
Deferred revenue, long-term portion
8
9
Total liabilities
4,512
2,130
COMMITMENTS AND CONTINGENCIES (Note
10)
STOCKHOLDERS’ EQUITY:
Common stock – $.001 par value; 40,000,000
shares authorized; 18,753,003 and 18,410,458 shares issued and
outstanding as of December 31, 2021 and 2020, respectively
19
18
Additional paid-in capital
141,703
138,570
Accumulated deficit
(120,523
)
(116,377
)
Total stockholders’ equity
21,199
22,211
Total liabilities and
stockholders’ equity
$
25,711
$
24,341
INTELLICHECK, INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2021
AND 2020
2021
2020
(in thousands except shares and
per share amounts)
REVENUES
$
16,393
$
10,735
COST OF REVENUES
(3,511
)
(1,426
)
Gross profit
12,882
9,309
OPERATING EXPENSES
Selling, general and administrative
11,564
5,894
Research and development
5,480
3,675
Total operating expenses
17,044
9,569
Loss from operations
(4,162
)
(260
)
OTHER INCOME
Gain on forgiveness of unsecured
promissory note
10
796
Interest and other income
6
22
Total other income
16
818
Net (loss) income
$
(4,146
)
$
558
PER SHARE INFORMATION:
Income (Loss) per common share -
Basic
$
(0.22
)
$
0.03
Diluted
$
(0.22
)
$
0.03
Weighted average common shares used in
computing per share amounts -
Basic
18,676,965
17,324,150
Diluted
18,676,965
18,020,866
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2021
AND 2020
(in thousands, except number of
shares)
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2019
16,041,650
$
16
$
128,669
$
(116,935
)
$
11,750
Equity compensation expense
-
-
409
-
409
Issuance of common stock, net of costs
1,769,230
2
10,567
-
10,569
Exercise of stock options, net of cashless
exercise of 93,840 shares
689,901
-
203
-
203
Issuance of shares for vested restricted
stock grants
24,778
-
-
-
-
Exercise of warrants
50,750
-
112
-
112
Settlement of executive bonuses with
issuance of restricted stock units
14,993
-
85
-
85
Shares forfeited in exchange for
withholding taxes
(180,844
)
-
(1,475
)
-
(1,475
)
Net income
-
-
-
558
558
BALANCE, December 31, 2020
18,410,458
$
18
$
138,570
$
(116,377
)
$
22,211
Equity compensation expense
-
-
3,068
-
3,068
Exercise of stock options, net of cashless
exercise of 58,926 shares
301,375
1
46
-
47
Issuance of shares for vested restricted
stock grants
32,170
-
-
-
-
Exercise of warrants
9,000
-
19
-
19
Net loss
-
-
-
(4,146
)
(4,146
)
BALANCE, December 31, 2021
18,753,003
$
19
$
141,703
$
(120,523
)
$
21,199
INTELLICHECK, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2021
AND 2020
2021
2020
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income
$
(4,146
)
$
558
Adjustments to reconcile net loss (income)
to net cash provided by (used in) operating activities:
Depreciation and amortization
169
180
Equity compensation expense
3,068
409
Gain on forgiveness of unsecured
promissory note
(10
)
(796
)
Changes in assets and liabilities:
Increase in accounts receivable
(72
)
(445
)
Increase in other current assets
(302
)
(15
)
(Increase) decrease in other assets
(4
)
3
Increase in accounts payable and accrued
expenses
1,551
261
Increase (decrease) in deferred
revenue
862
(174
)
Net cash provided by (used in) operating
activities
1,116
(19
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software license
-
(400
)
Capital expenditures
(662
)
(45
)
Collection on note receivable
-
29
Net cash used in investing activities
(662
)
(416
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Return of repayment of unsecured
promissory note
10
-
Net proceeds from issuance of common
stock
-
10,569
Loan proceeds on unsecured promissory note
under Paycheck Protection Program
-
796
Loan proceeds on unsecured promissory note
under Economic Injury Disaster Loan program
-
10
Net proceeds from issuance of common stock
from exercise of stock options
47
203
Proceeds from issuance of common stock
from exercise of warrants
19
112
Withholding taxes paid on exercise of
stock options and vesting of restricted stock units
-
(1,475
)
Loan payments on unsecured promissory
note
-
(10
)
Net cash provided by financing
activities
76
10,205
Net increase in cash
530
9,770
CASH, beginning of year
13,121
3,351
CASH, end of year
$
13,651
$
13,121
Supplemental disclosure of noncash
investing and financing activities:
Settlement of executive bonuses with
restricted stock units
$
3,365
$
85
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by adjusting net income
(loss) for certain reductions such as gains on debt forgiveness and
interest and other income and certain addbacks such as income
taxes, impairments of long-lived assets and goodwill, depreciation,
amortization, and equity 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 our financial results with other companies that also use
Adjusted EBITDA in their communications to investors. By excluding
non-cash charges such as gains on debt forgiveness, impairments of
long-lived assets and goodwill, amortization, depreciation, and
equity compensation, as well as non-operating charges for interest
and income taxes, investors can evaluate our operations and can
compare the results on a more consistent basis to the results of
other companies. In addition, Adjusted EBITDA is one of the primary
measures management uses to monitor and evaluate financial and
operating results.
We consider Adjusted EBITDA to be an important indicator of our
operational strength and performance of our business and a useful
measure of our historical operating trends. However, there are
significant limitations to the use of Adjusted EBITDA since it
excludes gains on debt forgiveness, interest and other income,
impairments of long-lived assets and goodwill, equity compensation
expense, all of which impact our profitability, as well as
depreciation and amortization related to the use of long-term
assets which benefit multiple periods. We believe that these
limitations are compensated by providing Adjusted EBITDA only with
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 us
may not be comparable with similarly named measures provided by
other entities.
(Unaudited)
Three Months Ended
Years Ended
December 31,
December 31,
2021
2020
2021
2020
Net (loss) income
$
(1,396
)
$
1,260
$
(4,146
)
$
558
Reconciling items:
Gain on forgiveness of unsecured
promissory note
-
(796
)
(10
)
(796
)
Interest and other income
-
(4
)
(6
)
(22
)
Depreciation and amortization
42
52
169
180
Equity compensation expense
797
123
3,068
409
Adjusted EBITDA
$
(557
)
$
635
$
(925
)
$
329
About Intellicheck
Intellicheck (Nasdaq: IDN) is an identity company that delivers
on-demand digital identity validation solutions for KYC, fraud, and
age verification needs. Intellicheck validates both digital and
physical identities for financial services, fintech companies, BNPL
providers, e-commerce, and retail commerce businesses, law
enforcement and government agencies. Intellicheck can be used
through a mobile device, a browser, or a retail point-of-scale
scanner. For more information on Intellicheck, visit us on the web
and follow us on follow us on LinkedIn, Twitter, Facebook, and
YouTube.
Safe Harbor Statement
Statements in this news release about Intellicheck’s future
expectations, including: the advantages of our products, future
demand for Intellicheck’s existing and future products, whether
revenue and other financial metrics will improve in future periods,
whether Intellicheck 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, whether there will be any
impact on sales and revenues due to an epidemic, pandemic or other
public health issue 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). These statements, which express management’s current views
concerning future events, trends, contingencies or results, appear
at various places in this release and use words like “anticipate,”
“assume,” “believe,” “continue,” “estimate,” “expect,” “forecast,”
“future,” “intend,” “plan,” “potential,” “predict,” “project,”
“sense”, “strategy,” “target” and similar terms, and future or
conditional tense verbs like “could,” “may,” “might,” “should,”
“will” and “would” are forward-looking statements within the
meaning of the PSLRA. This statement is included for the express
purpose of availing Intellicheck, 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 our products and the
presently anticipated growth in the commercial adoption of our
products and services; our ability to successfully transition pilot
programs into formal commercial scale programs; continued adoption
of our SaaS product offerings; changing levels of demand for our
current and future products; our ability to reduce or maintain
expenses while increasing sales; our ability to successfully expand
the sales of our products and services into new areas including
health care and auto dealerships; customer results achieved using
our products in both the short and long term; success of future
research and development activities; uncertainties around the
duration and severity of the COVID-19 outbreak and its ultimate
impact on our business and results of operations; our ability to
successfully market and sell our products, any delays or
difficulties in our supply chain coupled with the typically long
sales and implementation cycle for our products; our ability to
enforce our intellectual property rights; changes in laws and
regulations applicable to the our products; our 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, together with other risks detailed from time to
time in our reports filed with the SEC. We do not assume any
obligation to update the forward-looking information.
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Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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