Year over year first quarter revenues
increased 49% and SaaS revenues increased 120%
Intellicheck, Inc. (NYSE American: IDN), an industry leader in
identification authentication solutions, today announced its
financial results for the first quarter ended March 31, 2018.
Revenue for the first quarter ended March 31, 2018 grew 49% to
$1,062,062 versus $712,660 in the prior year comparable period.
SaaS revenue in the first quarter grew 120% and totaled $595,000
versus $270,000 in the quarter ending March 31, 2017. Gross profit
as a percentage of revenues improved to 90.5% for the three months
ended March 31, 2018 versus 84.6% in the prior year comparable
period.
Intellicheck CEO Bryan Lewis said, “While I am encouraged by our
progress, I am committed to refocusing our efforts to realize
greater revenue growth of our SaaS based products in our key
markets. To that end, I have initiated a complete reorganization of
the sales force, which includes bringing in new sales people to
work within a revamped operational structure. These operational
changes reflect my belief that significant adjustments needed to be
made to support our sales goals and allow us to manage the business
in real time on a daily basis.”
Lewis explained that the actions he has taken in the first
ninety days of his tenure make his intentions clear. “I am going to
continue taking what I believe are the necessary steps to build
momentum, drive consistent growth and position the Company on a
well-defined path for success,” he concluded.
The net loss for the three months ended March 31, 2018 was
($1,067,957) or ($0.07) per diluted share versus ($936,757) or
($0.09) per diluted share in the comparable prior year period.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation expense and certain
non-recurring charges) was a loss of ($961,969) for the first
quarter of 2018 versus a loss of ($738,636) in the prior year
comparable period. A reconciliation of adjusted EBITDA to net loss
is provided elsewhere in this release.
Cash at March 31, 2018 totaled $7.8 million and stockholders’
equity totaled $15.7 million at the end of period.
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 files its Form 10-Q for the fiscal
quarter ended March 31, 2018.
Conference Call Information:
The Company will hold an earnings conference call today, May 14,
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.
The conference call will also be webcast simultaneously and can
be accessed
at http://www.investorcalendar.com/event/29079 by
clicking on the link to the webcast.
The webcast will be available for 14 days following the
conference call.
PART I – FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
INTELLICHECK, INC. CONSOLIDATED BALANCE SHEETS
ASSETS March 31, December 31, 2018 2017
(Unaudited) CURRENT ASSETS: Cash $ 7,765,692 $ 8,010,161
Accounts receivable, net of allowance of
$18,750 at March 31, 2018 and December 31, 2017, respectively
703,016 652,627 Inventory 81,964 85,321 Other current assets
240,662 218,835 Total current assets 8,791,334
8,966,944 NOTE RECEIVABLE, net of current portion 60,764
71,138 PROPERTY AND EQUIPMENT, net 269,102 211,602 GOODWILL
8,101,661 8,101,661 INTANGIBLE ASSETS, net 424,327 463,578 OTHER
ASSETS 67,808 67,181
Total assets
$ 17,714,996 $ 17,882,104 LIABILITIES AND
STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $
123,052 $ 71,578 Accrued expenses 930,405 815,350 Deferred revenue,
current portion 810,361 739,980 Total current
liabilities 1,863,818 1,626,908 OTHER LIABILITIES: Deferred
revenue, long-term portion 82,650 87,736 Other long-term
liabilities 79,203 158,407 Total liabilities
2,025,671 1,873,051 COMMITMENTS AND CONTINGENCIES (Note 11)
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized;15,608,943 and 15,009,246 shares issued and
outstanding at March 31, 2018 and December 31, 2017,
respectively
15,609 15,009 Additional paid-in capital 127,164,498 126,416,869
Accumulated deficit (111,490,782 ) (110,422,825 ) Total
stockholders' equity 15,689,325 16,009,053
Total liabilities and stockholders' equity $ 17,714,996 $
17,882,104
INTELLICHECK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2018
2017
REVENUES $ 1,062,062 $ 712,660 COST OF REVENUES (100,469 )
(109,436 ) Gross profit 961,593 603,224 OPERATING EXPENSES
Selling, general and administrative 1,415,384 1,172,883 Research
and development 628,036 370,597
Total operating expenses
2,043,420 1,543,480 Loss from operations
(1,081,827 ) (940,256 ) OTHER INCOME Interest and other
income 13,870 3,499 Net loss $ (1,067,957 ) $
(936,757 ) PER SHARE INFORMATION Loss per common share -
Basic/Diluted $ (0.07 ) $ (0.09 )
Weighted average common shares used in
computing per share amounts -
Basic/Diluted 15,271,213 10,731,856
INTELLICHECK, INC. CONSOLIDATED STATEMENT OF
STOCKHOLDERS’ EQUITY
For the three months ended March 31,
2018
(Unaudited)
Additional Total
Common
Stock
Paid-in Accumulated Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, January 1, 2018 15,009,246 $ 15,009 $ 126,416,869 $
(110,422,825 ) $ 16,009,053 Stock-based compensation expense
- - 60,708 - 60,708 Exercise of stock options 593,838 594 686,927 -
687,521 Vesting of restricted stock 5,859 6 (6 ) - - Net loss - - -
(1,067,957 ) (1,067,957 ) BALANCE, March 31, 2018
15,608,943 $ 15,609 $ 127,164,498 $ (111,490,782 ) $
15,689,325
INTELLICHECK, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
Three Months Ended
March 31,
2018
2017
CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (1,067,957
) $ (936,757 )
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 59,150 104,820 Noncash stock-based
compensation expense 60,708 96,800 Deferred rent (13,505 ) (11,108
) Changes in assets and liabilities: (Increase) decrease in
accounts receivable (50,389 ) 141,438 Decrease (increase) in
inventory 3,357 (5,230 ) (Increase) in other current assets (21,421
) (112,436 ) (Increase) decrease in other assets (627 ) 1,500
Increase in accounts payable and accrued expenses 180,034 61,797
Increase (decrease) in deferred revenue 65,295 (157,787 )
(Decrease) in other long-term liabilities (79,204 ) -
Net cash used in operating activities
(864,559 ) (816,963 ) CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (77,399 ) (9,534 ) Collection of note
receivable 9,968 13,267 Net cash (used in) provided
by investing activities (67,431 ) 3,733 CASH FLOWS
FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock
from exercise of stock options
687,521 10,100
Net proceeds from issuance of common stock
from exercise of warrants
- 14,300 Net cash provided by financing activities
687,521 24,400 Net decrease in cash (244,469 )
(788,830 ) CASH, beginning of period 8,010,161
3,092,172 CASH, end of period $ 7,765,692 $
2,303,342
A reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA
follows:
(Unaudited)
Three Months EndedMarch
31,
2018
2017
Net loss $ (1,067,957 ) $ (936,757 ) Reconciling items: Interest
and other income (13,870 ) (3,499 ) Depreciation and amortization
59,150 104,820 Stock-based compensation expense 60,708
96,800 Adjusted EBITDA (Non-GAAP) $ (961,969 ) $ (738,636 )
About Intellicheck NYSE American: IDN Intellicheck is a
trusted industry leader in technology solutions that provide
real-time identification authentication and age verification. We
make it possible for our clients to enhance safety and awareness,
increase revenues, 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. For more information
on Intellicheck, visit http://www.intellicheck.com/ and follow
Intellicheck on Twitter @IntellicheckIDN, on Facebook
https://www.facebook.com/intellicheckidn/, on Instagram
@IntellicheckIDN, on LinkedIn
https://www.linkedin.com/company/intellicheck-inc- and on YouTube
https://www.youtube.com/user/ICMOBIL,
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, 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 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
Intellicheck’s products and the presently anticipated growth in the
commercial adoption of the Company’s products and services,
changing levels of demand for Intellicheck’s current and future
products, Intellicheck’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’s ability to
successfully manufacture, market and sell its products,
Intellicheck’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’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’s
reports filed with the SEC. We do not assume any obligation to
update the forward-looking information.
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version on businesswire.com: https://www.businesswire.com/news/home/20180514005102/en/
Intellicheck, Inc.Investor Relations:Gar Jackson,
949-873-2789orMedia and Public Relations:Sharon Schultz,
302-539-3747
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