Year Over Year Revenue Increased to
$1,930,000
SaaS Revenue Increased to $1,564,000
Intellicheck, Inc. (NYSE American: IDN), a trusted industry
leader in identity authentication and verification solutions, today
announced its financial results and record SaaS revenues for the
third quarter ended September 30, 2019.
Revenue for the third quarter ended grew 86% to $1,930,000
versus $1,040,000 in the prior year comparable period. SaaS revenue
in the third quarter grew 140% and totaled $1,564,000 versus
$651,000 in the prior year comparable period and grew 40%
sequentially over Q2. Gross profit as a percentage of revenues was
86.6% for the three months ended September 30, 2019 versus 89.1% in
the prior year comparable period.
“These are impressive SaaS growth numbers, which we believe
reflect the progress we have achieved as a result of the changes we
have put in place over the past year. The success of refocusing of
our sales efforts can be seen in our growing portfolio of clients
that I am excited to say includes the addition of another
significant financial institution. We believe that our strategy to
sell through the banks and credit issuers, who bear a large portion
of the cost and the pain of Identity theft, is paying off,” said
CEO Bryan Lewis.
“I have been saying that I believe the market is coming our way
and the evidence is bearing that out both in terms of clients and
prospects. With data breaches and the resulting incidents of
identity theft and fraud surging at an unprecedented rate, I
believe that we are just getting started,” concluded Lewis.
The net loss for the three months ended September 30, 2019 was
($568,000) or ($0.04) per diluted share an improvement versus
($1,131,000) or ($0.07) 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) improved by $591,000 to a loss of
($457,000) for the third quarter of 2019 versus a loss of
($1,048,000) in the prior year comparable period. A reconciliation
of adjusted EBITDA to net loss is provided elsewhere in this
release.
Cash at September 30, 2019 totaled $2,757,000 and stockholders’
equity totaled $11,235,000 at the end of the 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 third
quarter ended September 30, 2019.
Conference Call Information:
The Company will hold an earnings conference call on November
7th 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 13695910. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13695910. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until November 21,
2019.
INTELLICHECK, INC.
BALANCE SHEETS
ASSETS
September 30,
December 31,
2019
2018
(Unaudited)
CURRENT ASSETS:
Cash
$
2,757,327
$
4,376,017
Accounts receivable, net of allowance of
$47,980 and $24,675 at September 30, 2019 and December 31, 2018,
respectively
1,420,467
1,019,434
Inventory
73,989
82,337
Other current assets
458,754
271,415
Total current assets
4,710,537
5,749,203
NOTE RECEIVABLE, net of current
portion
-
29,017
PROPERTY AND EQUIPMENT, net
216,675
264,583
GOODWILL
8,101,661
8,101,661
INTANGIBLE ASSETS, net
194,988
306,575
OPERATING LEASE RIGHT-OF-USE ASSET
180,844
-
OTHER ASSETS
7,778
9,742
Total assets
$
13,412,483
$
14,460,781
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
151,710
$
73,334
Accrued expenses
1,138,708
726,918
Operating lease liability, current
portion
123,341
-
Deferred revenue, current portion
681,977
704,536
Total current liabilities
2,095,736
1,504,788
OTHER LIABILITIES:
Deferred revenue, long-term portion
17,177
29,486
Operating lease liability, long-term
portion
64,835
-
Other long-term liabilities
-
6,802
Total liabilities
2,177,748
1,541,076
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized; 15,881,142 and 15,638,765 shares issued and
outstanding at September 30, 2019 and December 31, 2018,
respectively
15,881
15,639
Additional paid-in capital
128,260,153
127,290,467
Accumulated deficit
(117,041,299)
(114,386,401)
Total stockholders' equity
11,234,735
12,919,705
Total liabilities and stockholders'
equity
$
13,412,483
$
14,460,781
INTELLICHECK, INC.
STATEMENTS OF
OPERATIONS
(Unaudited)
Three
months ended September 30,
Nine months
ended September 30,
2019
2018
2019
2018
REVENUES
$
1,930,201
$
1,039,581
$
4,767,186
$
3,103,061
COST OF REVENUES
(259,053)
(112,452)
(670,338)
(295,314)
Gross profit
1,671,148
927,129
4,096,848
2,807,747
OPERATING EXPENSES
Selling, general and
administrative
1,267,425
1,342,929
4,140,503
4,065,837
Research and development
984,247
738,584
2,675,621
2,121,717
Total operating expenses
2,251,672
2,081,513
6,816,124
6,187,554
Loss from operations
(580,524)
(1,154,384)
(2,719,276)
(3,379,807)
OTHER INCOME
Interest and other income
12,294
23,165
64,378
80,256
Net loss
$
(568,230)
$
(1,131,219)
$
(2,654,898)
$
(3,299,551)
PER SHARE INFORMATION
Loss per common share -
Basic/Diluted
$
(0.04)
$
(0.07)
$
(0.17)
$
(0.21)
Weighted average common shares used in
computing per share amounts -
Basic/Diluted
15,864,004
15,631,818
15,749,312
15,510,115
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
(Unaudited)
Three months ended September 30,
2019
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, June 30, 2019
15,791,629
$
15,792
$
128,000,628
$
(116,473,069)
$
11,543,351
Stock-based compensation expense
-
-
71,043
-
71,043
Exercise of warrants
85,714
86
188,485
-
188,571
Issuance of shares for restricted stock
grants
3,799
3
(3)
-
-
Net loss
-
-
-
(568,230)
(568,230)
BALANCE, September 30, 2019
15,881,142
$
15,881
$
128,260,153
$
(117,041,299)
$
11,234,735
Three months ended September 30,
2018
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, June 30, 2018
15,625,239
$
15,625
$
127,228,475
$
(112,591,157)
$
14,652,943
Stock-based compensation expense
-
-
43,459
-
43,459
Issuance of shares for restricted stock
grants
6,957
7
(7)
-
-
Net loss
-
-
-
(1,131,219)
(1,131,219)
BALANCE, September 30, 2018
15,632,196
$
15,632
$
127,271,927
$
(113,722,376)
$
13,565,183
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
(Unaudited)
Nine months ended September 30,
2019
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, January 1, 2019
15,638,765
$
15,639
$
127,290,467
$
(114,386,401)
$
12,919,705
Stock-based compensation expense
-
-
513,824
-
513,824
Exercise of stock options, net of cashless
exercise of 21,864 shares
58,008
58
63,192
-
63,250
Exercise of warrants
178,570
179
392,675
-
392,854
Issuance of shares for restricted stock
grants
5,799
5
(5)
-
-
Net loss
-
-
-
(2,654,898)
(2,654,898)
BALANCE, September 30, 2019
15,881,142
$
15,881
$
128,260,153
$
(117,041,299)
$
11,234,735
Nine months ended September 30,
2018
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
-
-
168,160
-
168,160
Exercise of stock options
593,838
594
686,927
-
687,521
Issuance of shares for restricted stock
grants
29,112
29
(29)
-
-
Net loss
-
-
-
(3,299,551)
(3,299,551)
BALANCE, September 30, 2018
15,632,196
$
15,632
$
127,271,927
$
(113,722,376)
$
13,565,183
INTELLICHECK, INC.
STATEMENTS OF CASH
FLOWS
(Unaudited)
Nine months
ended September 30,
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(2,654,898)
$
(3,299,551)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
176,034
183,077
Stock-based compensation expense
513,824
168,160
Provision for doubtful accounts
23,305
5,925
Deferred rent
-
(5,601)
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(424,338)
11,999
Decrease in inventory
8,348
1,493
(Increase) in other current assets
(189,754)
(186,901)
Decrease in other assets
1,964
57,439
Increase in accounts payable and accrued
expenses
490,696
48,828
(Decrease) in deferred revenue
(34,868)
(33,760)
(Decrease) in other long-term
liabilities
-
(158,407)
Net cash used in operating activities
(2,089,687)
(3,207,299)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(16,539)
(132,042)
Collection of note receivable
31,432
30,203
Net cash provided by (used in) investing
activities
14,893
(101,839)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock
from exercise of stock options
63,250
687,521
Net proceeds from issuance of common stock
from exercise of warrants
392,854
-
Net cash provided by financing
activities
456,104
687,521
Net decrease in cash
(1,618,690)
(2,621,617)
CASH, beginning of period
4,376,017
8,010,161
CASH, end of period
$
2,757,327
$
5,388,544
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by adding back to net
loss, interest and other income, 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 our
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 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 interest and other income, impairments of long lived
assets and goodwill, stock-based 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 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 loss presented in accordance with GAAP. Adjusted
EBITDA as defined by us may not be comparable with similarly named
measures provided by other entities.
A reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA
follows:
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
Net loss
$
(568,230)
$
(1,131,219)
$
(2,654,898)
$
(3,299,551)
Reconciling items:
Interest and other income
(12,294)
(23,165)
(64,378)
(80,256)
Depreciation and amortization
52,542
62,459
176,034
183,077
Stock-based compensation expense
71,043
43,459
513,824
168,160
Adjusted EBITDA
$
(456,939)
$
(1,048,466)
$
(2,029,418)
$
(3,028,570)
About Intellicheck NYSE American: IDN
Intellicheck is a trusted industry leader in technology
solutions that stop identity theft and fraud with real-time
identity authentication and age verification. We make it possible
for our clients to 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 and diverse state and federal government agencies.
For more information on Intellicheck, visit
http://www.intellicheck.com/ and follow Intellicheck on Twitter, on
Facebook, on LinkedIn and on 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, 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,” “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;
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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version on businesswire.com: https://www.businesswire.com/news/home/20191107005077/en/
Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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