Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), an industry leader
in delivering real-time threat identification and identification
authentication that provides the "antivirus" to the epidemic of
counterfeit IDs, today announced its financial results for the
fourth quarter and full-year ended December 31, 2016.
Revenue for the fourth quarter ended December 31, 2016 was
$733,633. The Company’s booked orders for the three months ended
December 31, 2016 was $521,000. Approximately 71% of the Company’s
bookings were attributable to its commercial products. Gross profit
as a percentage of revenues was 80.0% for the three months ended
December 31, 2016.
“The events of recent months have given us great confidence that
our technology solutions are the right ones to help companies, in
market verticals ranging from retail to finance, address costly
problems at a critical time. Widespread hacking and the
compromising of personal data has had a dramatic impact on a wide
variety of high profile financial institutions and iconic brands,”
said Intellicheck CEO Dr. William Roof. “These costly intrusions
resulted, understandably, in new approaches. Many Intellicheck
clients now require security audits to ensure their partners meet
rigorous data protection requirements. We are currently supporting
several rigorous security audits by our clients. In the short term,
the accommodation for this reasonable and now customary marketplace
environment sees our mid-2017 projection for go-forward
EBITDA-positive status push to Q4 2017 or early 2018. We are,
however, excited about the larger view, which we believe
underscores our strength and high growth potential,” noted Dr.
Roof.
The net loss for the three months ended December 31, 2016 was
$1,089,152 or $0.10 per diluted share. Adjusted EBITDA (earnings
before interest, taxes, depreciation, amortization, stock-based
compensation expense and certain non-recurring charges) was a loss
of $851,990 for the fourth quarter of 2016. A reconciliation of
adjusted EBITDA to net loss is provided elsewhere in this release.
The net loss for the three months ended December 31, 2016 was
$1,089,152 or $0.10 per diluted share.
Revenue for the full year ended December 31, 2016 was
$3,838,963. Gross profit as a percentage of revenue was 80.0% for
the year ended December 31, 2016.
The net loss for the fiscal year ended December 31, 2016 was
$5,734,681 or $0.58 per diluted share. Adjusted EBITDA (earnings
before interest, taxes, depreciation, amortization, stock-based
compensation expense and certain non-recurring charges) was a loss
of $4,379,421 for fiscal 2016. A reconciliation of adjusted EBITDA
to net loss is provided elsewhere in this release.
“Going forward, our business opportunities are more robust now
than they were in 2016 when we first announced our plan to be
EBITDA positive by mid-2017. We expect to see revenue conversions
from our active and scheduled pilots that include nationally
recognized retail and banking clients. We believe our long-term
visibility of revenue-producing clients is clear, and these clients
want and need our products. We see the fundamentals of our business
and our business trajectory as solid and exciting,” concluded Dr.
Roof. He encouraged interested parties to get all the details by
listening to the full earnings call at
http://intellicheck.com/about/investor-center/presentations/.
As of December 31, 2016, the Company’s backlog, which represents
non-cancelable sales orders for products not yet shipped and
services to be performed was $133,000.
Cash and cash equivalents at the end of fiscal 2016 totaled $3.1
million or $0.29 per share. Stockholders’ equity totaled $12.9
million at the end of the fiscal year or $1.21 per share.
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-K for the
fiscal year ended December 31, 2016.
INTELLICHECK MOBILISA, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2016 and 2015
2016 2015
ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 3,092,172 $ 5,953,257
Accounts receivable, net of allowance of
$74,354 and $18,411 as of December 31, 2016 and 2015,
respectively
502,126 1,158,972 Inventory 70,547 74,732 Other current assets
165,473 178,362 Total current assets
3,830,318 7,365,323 NOTE RECEIVABLE, net of current portion
114,909 150,496 PROPERTY AND EQUIPMENT, net 270,776 325,427
GOODWILL 8,101,661 8,101,661 INTANGIBLE ASSETS, net 2,154,563
2,470,127 OTHER ASSETS 61,298 59,800
Total assets $ 14,533,525 $ 18,472,834
LIABILITIES AND
STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES: Accounts payable $ 14,140 $ 260,276
Accrued expenses 519,957 536,316 Deferred revenue, current portion
825,538 909,233 Total current
liabilities 1,359,635 1,705,825 OTHER LIABILITIES Deferred
revenue, long-term portion 177,306 341,242 Deferred rent
61,133 99,355
Total liabilities
1,598,074 2,146,422
COMMITMENTS AND CONTINIGENCIES
STOCKHOLDERS’ EQUITY: Common stock – $.001 par value;
40,000,000 shares authorized; 10,718,553 and 9,878,906 shares
issued and outstanding as of December 31, 2016 and 2015,
respectively 10,719 9,879 Additional paid-in capital 117,293,158
114,950,278 Accumulated deficit (104,368,426 )
(98,633,745 ) Total stockholders’ equity 12,935,451
16,326,412 Total liabilities and stockholders’
equity $ 14,533,525 $ 18,472,834
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2016
AND 2015
2016 2015 REVENUES $ 3,838,963 $
7,014,665 COST OF REVENUES (769,048 ) (3,006,359 )
Gross profit 3,069,915 4,008,306 OPERATING EXPENSES Selling,
general and administrative 6,413,933 6,893,837 Research and
development 2,405,593 2,594,678
Total operating expenses 8,819,526 9,488,515
Loss from operations (5,749,611 ) (5,480,209 )
OTHER INCOME (EXPENSE) Interest and other income 14,930 149,575
Interest expense - (3,317 ) Net loss $
(5,734,681 ) $ (5,333,951 ) PER SHARE INFORMATION: Loss per
common share - Basic/Diluted $ (0.58 ) $ (0.55 ) Weighted
average common shares used in computing per share amounts -
Basic/Diluted 9,914,809 9,658,346
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2016
AND 2015
Additional Common Stock Paid-in
Accumulated Shares Amount Capital Deficit Total
BALANCE, December 31, 2014 4,934,601 $ 4,934 $ 106,442,897 $
(93,299,794 ) $ 13,148,037 Stock-based compensation expense
(employees and directors) - - 878,112 - 878,112 Issuance of common
stock, net of costs 4,857,143 4,857 7,625,900 - 7,630,757 Exercise
of stock options 313 1 3,456 - 3,457 Vesting of restricted stock
86,849 87 (87 ) - - Net loss - - -
(5,333,951 ) (5,333,951 ) BALANCE,
December 31, 2015 9,878,906 $ 9,879 $ 114,950,278 $ (98,633,745 ) $
16,326,412 Stock-based compensation expense
(employees and directors) - - 935,899 - 935,899 Issuance of common
stock, net of costs 1,200,000 1,200 1,776,750 - 1,777,950 Purchase
and retirement of common stock (979,114 ) (979 ) (1,095,629 ) -
(1,096,608 ) Exercise of stock options 345,127 345 389,534 -
389,879 Exercise of warrants 153,000 153 336,447 - 336,600 Vesting
of restricted stock 120,634 121 (121 ) - - Net loss -
- - (5,734,681 ) (5,734,681 )
BALANCE, December 31, 2016 10,718,553 $ 10,719
$ 117,293,158 $ (104,368,426 ) $ 12,935,451
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2016
AND 2015
2016 2015 CASH FLOWS FROM OPERATING
ACTIVITIES: Net loss $ (5,734,681 ) $ (5,333,951 )
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization 434,291 1,020,679 Noncash
stock-based compensation expense 935,899 878,112 Noncash change in
provision for doubtful accounts 74,354 (60,313 ) Gain on sale of
wireless assets - (108,825 ) Gain on sale of property and equipment
- (31,500 ) Deferred rent (38,222 ) (29,091 ) Decrease (Increase)
in accounts receivable 582,492 (306,587 ) Decrease in inventory
4,185 40,289 Decrease (Increase) in other current assets 12,889
(30,127 ) (Increase) Decrease in other assets (1,498 ) 15,207
(Decrease) in accounts payable and accrued expenses (262,496 )
(164,410 ) (Decrease) Increase in deferred revenue (247,631
) (325,747 ) Net cash used in operating activities
(4,240,418 ) (4,436,264 ) CASH FLOWS FROM INVESTING
ACTIVITIES: Purchases of property and equipment (64,075 )
(126,618 ) Purchases of patents - (125,000 ) Proceeds from sale of
property and equipment - 31,500 Proceeds from sale of wireless
assets - 30,000 Collection on note receivable 35,587
12,633 Net cash used in investing activities
(28,488 ) (177,485 ) CASH FLOWS FROM FINANCING
ACTIVITIES: Net proceeds from the issuance of common stock
1,777,950 7,630,757 Net proceeds from issuance of common stock from
exercise of stock options 389,879 977 Net proceeds from the
issuance of common stock from exercise of warrants 336,600 -
Purchase and retirement of common stock (1,096,608 ) - Payments on
note payable - (31,078 ) Net cash provided by
financing activities 1,407,821 7,600,656
Net (decrease) increase in cash and cash equivalents
(2,861,085 ) 2,986,907 CASH AND CASH EQUIVALENTS, beginning
of year 5,953,257 2,966,350 CASH
AND CASH EQUIVALENTS, end of year $ 3,092,172 $ 5,953,257
Supplemental disclosure of noncash
investing and financing activities:
Issuance of note receivable related to
sale of wireless assets
$ - $ 200,000 Financing of property and equipment $ -
$ 31,078
A reconciliation of GAAP net loss to Adjusted EBITDA
follows:
Year Ended December 31, (Unaudited)
2016 2015 Net loss $ (5,734,681 ) $
(5,333,951 ) Reconciling items: Interest and other, net (14,930 )
(146,258 ) Depreciation and amortization 434,291 1,020,679
Stock-based compensation costs 935,899 878,112
Adjusted EBITDA $ (4,379,421 ) $ (3,581,418 )
Earnings Conference Call Information
The Company will hold an earnings conference call today, March
30, 2017, at 1:00 p.m. EDT/10:00 a.m. PT to discuss operating
results. To listen to the 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=175567 by 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 the industry leader in technology
solutions that are the "antivirus" to the epidemic of counterfeit
IDs providing virtual instant threat identification and identity
credentials authentication. Our technology solutions make 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, police departments, national defense
clients at agencies, major seaports, and military bases, and
diverse state and federal government agencies. The Company holds 25
patents including many patents pertaining to identification
technology. For more information on Intellicheck Mobilisa, please
visit www.intellicheck.com.
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.
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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170330005885/en/
Intellicheck Mobilisa, Inc.Media and Public Relations:Sharon
Schultz, 302-539-3747
Intellicheck (AMEX:IDN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Intellicheck (AMEX:IDN)
Historical Stock Chart
From Jul 2023 to Jul 2024