Financial Results Conference Call Today at 4:30
p.m. EDT/1:30 p.m. PT
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
quarter ended March 31, 2017.
Revenue for the first quarter ended March 31, 2017 decreased 25%
to $713,000 compared to $951,000 for the quarter ended March 31,
2016. The Company’s booked orders for the three months ended March
31, 2017 were approximately $510,000 compared to $1,134,000 for the
March 2016 quarter. Gross profit as a percentage of revenues was
84.6% for the three months ended March 31, 2017 compared to 82.8%
for the three months ended March 31, 2016. Operating expenses,
which consist of selling, general and administrative, and research
and development expenses, decreased by approximately 47% or
$1,393,000 to $1,543,000 for the three months ended March 31, 2017
from $2,936,000 for the three months ended March 31, 2016. The net
loss for the three months ended March 31, 2017 improved 56% to
$937,000 or $0.09 per diluted share compared to a net loss of
$2,143,000 or $0.22 per diluted share for the three months ended
March 31, 2016. Adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization, stock-based compensation expense and
certain non-recurring charges) for the quarter ended March 31, 2017
improved 58% to a loss of $739,000 compared to an Adjusted EBITDA
loss of $1,744,000 for the first quarter of 2016. A reconciliation
of net loss to adjusted EBITDA is provided elsewhere in this
release.
“We now believe our outlook to be even stronger than we
communicated on our fourth quarter earnings call. Our financial
metrics show marked improvement with demonstrated increased gross
margins, ongoing success in lowering operating expenses and
significantly improved EBIDTA performance. We believe that our
sales and product development processes are returning the value we
expected. We presently anticipate persistent, increasing momentum
as pilots convert to contracts and our client engagement
demonstrates escalating strength. We are seeing our robust and
growing product suites of industry leading technology solutions
enthusiastically embraced by an expanding client base ranging from
large financial institutions and major national retailers to
alcohol control and law enforcement organizations,” said
Intellicheck CEO Dr. William Roof.
“Every sign reinforces our belief that we are at a decisive
turning point for the Company. The turn-around plan we initiated
beginning in late 2014 is demonstrating its effectiveness
underscoring our belief and forecast that Intellicheck anticipates
a turn to EBITDA positive in late 2017 or early 2018,” 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 March 31, 2017.
PART I – FINANCIAL INFORMATION
Item 1. FINANCIAL
STATEMENTS
INTELLICHECK MOBILISA, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS March 31, December 31,
2017 2016 (Unaudited) CURRENT ASSETS: Cash
$
2,303,342
$
3,092,172
Accounts receivable, net of allowance of
$74,354 as of March 31, 2017 and December 31, 2016,
respectively
360,688 502,126 Inventory 75,777 70,547 Other current assets
277,909 165,473 Total current assets 3,017,716 3,830,318
NOTE RECEIVABLE, net of current portion 101,642 114,909 PROPERTY
AND EQUIPMENT, net 254,380 270,776 GOODWILL 8,101,661 8,101,661
INTANGIBLE ASSETS, net 2,075,673 2,154,563 OTHER ASSETS 59,798
61,298 Total assets
$
13,610,870
$
14,533,525
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT
LIABILITIES: Accounts payable
$
45,492
$
14,140
Accrued expenses 550,402 519,957 Deferred revenue, current portion
680,823 825,538 Total current liabilities 1,276,717 1,359,635
OTHER LIABILITIES: Deferred revenue, long-term portion
164,234 177,306 Deferred rent 50,025 61,133 Total
liabilities 1,490,976 1,598,074 COMMITMENTS AND
CONTINGENCIES STOCKHOLDERS EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized; 10,743,598 and 10,718,553 shares issued and
outstanding, respectively
10,744 10,719 Additional paid-in capital 117,448,227 117,293,158
Accumulated deficit (105,339,077) (104,368,426) Total stockholders'
equity 12,119,894 12,935,451 Total liabilities and
stockholders' equity
$
13,610,870
$
14,533,525
See notes to consolidated financial statements set forth in
the Company’s 10-Q filing for the quarter ended March 31, 2017;
filed May 10, 2017.
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2017
2016
REVENUES $ 712,660 $ 950,668 COST OF REVENUES (109,436)
(163,042) Gross profit 603,224 787,626 OPERATING EXPENSES
Selling, general and administrative 1,172,883 2,016,776 Research
and development 370,597 919,456 Total operating expenses 1,543,480
2,936,232 Loss from operations (940,256) (2,148,606)
OTHER INCOME Interest and other income 3,499 5,115 Net loss
$ (936,757) $ (2,143,491) PER SHARE INFORMATION Loss per
common share - Basic/Diluted $ (0.09) $
(0.22)
Weighted average common shares used in
computing per share amounts -
Basic/Diluted 10,731,856 9,678,318 See notes to consolidated
financial statements set forth in the Company’s 10-Q filing for the
quarter ended March 31, 2017; filed May 10, 2017.
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Three Months Ended
March 31,
2017
2016
CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (936,757) $
(2,143,491)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 104,820 106,793 Noncash stock-based
compensation expense 96,800 298,030 Deferred rent (11,108) (8,779)
Changes in assets and liabilities: Decrease in accounts receivable
141,438 467,911 (Increase) in inventory (5,230) (1,479) (Increase)
decrease in other current assets (112,436) 19,343 Decrease in other
assets 1,500 - Increase in accounts payable and accrued expenses
61,797 395,120 (Decrease) increase in deferred revenue (157,787)
97,340 Net cash used in operating activities (816,963) (769,212)
CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property
and equipment (9,534) (22,747) Collection of note receivable 13,267
9,577 Net cash provided by (used in) investing activities 3,733
(13,170) CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock
from exercise of stock options
10,100
-
Net proceeds from issuance of common stock
from exercise of warrants
14,300 - Purchase and retirement of common stock - (1,096,608) Net
cash provided by (used in) financing activities 24,400 (1,096,608)
Net decrease in cash and cash equivalents (788,830)
(1,878,990) CASH, beginning of period 3,092,172 5,953,257
CASH, end of period $ 2,303,342 $ 4,074,267 See notes
to consolidated financial statements set forth in the Company’s
10-Q filing for the quarter ended March 31, 2017; filed May 10,
2017. A reconciliation of GAAP net loss to Non-GAAP
Adjusted EBITDA follows:
(Unaudited)
Three Months EndedMarch
31,
2017
2016
Net loss $ (936,757) $ (2,143,491) Reconciling items: Interest and
other income (3,499) (5,115) Depreciation and amortization 104,820
106,793 Stock-based compensation expense 96,800 298,030 Adjusted
EBITDA (Non-GAAP) $ (738,636) $ (1,743,783)
Earnings Conference Call InformationThe Company will hold
an earnings conference call today, May 10, at 4:30 p.m. EDT/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. The conference call will also be
simultaneously webcast and can be accessed at
http://www.investorcalendar.com/event/15048. The webcast will be
available for 14 days following the conference call.
About Intellicheck Mobilisa NYSE MKT:IDNIntellicheck
Mobilisa is the industry leader in technology solutions that are
the "antivirus" to the epidemic of counterfeit IDs providing
real-time threat identification and identification authentication.
Our technology solutions make it possible for our clients 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
http://www.intellicheck.com/ and follow Intellicheck on Twitter
@IntellicheckIDN, on Instagram @IntellicheckIDN, on LinkedIn
https://www.linkedin.com/company/intellicheck-inc, on Facebook
https://www.facebook.com/intellicheckidn/ on YouTube
https://www.youtube.com/user/ICMOBIL, and read Intellicheck’s
latest blog post at http://intellicheckidn.com/.
Safe Harbor StatementStatements 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”). These statements, which
express management’s current views concerning future events,
trends, contingencies or results, appear at various places in this
website and use words like “anticipate,” “assume,” “believe,”
“continue,” “estimate,” “expect,” “forecast,” “future,” “intend,”
“plan,” “potential,” “predict,” “project,” “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 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 and the presently anticipated
growth in the commercial adoption of the Company’s products and
services, 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 EBITDAIntellicheck 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/20170510005406/en/
Intellicheck Mobilisa, Inc.Investor Relations:Gar Jackson,
949-873-2789orMedia and Public Relations:Sharon Schultz,
302-539-3747
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