Record Q4 SaaS revenue of $2.56 Million Drives
$106,000 of Net Income
Two New Financial Institutions Signed Including
First Canadian Lender
Intellicheck, Inc. (Nasdaq: IDN), an industry leader in
identification authentication solutions, today announced its
financial results for the fourth quarter and full-year ended
December 31, 2019. Total revenue for the fourth quarter ended
December 31, 2019 grew 118% to $2,896,000 versus $1,330,000 in the
prior year comparable period. Quarter over Quarter SaaS revenue for
the fourth quarter grew 209% and totaled $2,557,000 versus $826,000
in the prior year comparable period.
Gross profit as a percentage of revenues was 88.8% for the three
months ended December 31, 2019 versus 93.1% in the prior year
comparable period.
“We are excited by our results that have been driven by our
focus on sales and implementations in 2019 that have yielded $2.56
million in SaaS revenue and $106,000 in net income during the
fourth quarter. The recent addition of two new financial
institutions, including a Canadian lender, will expand both our
market penetration and our geographical footprint,” said
Intellicheck CEO Bryan Lewis.
“The pace of data breaches and the data that has been harvested
makes it clear that identity theft is not going away for banks,
credit card issuers, retailers and consumers. In fact, it is going
to get worse. Given the ease of identity theft and the
record-setting pace of data breaches, more and more market
verticals are going to require that individuals authenticate
themselves. As we look forward, we believe that our implementation
pipeline remains robust and I remain confident that what I told you
when I first joined the company two years ago is evident, today.
The market is coming to us,” Lewis concluded.
Net income for the three months ended December 31, 2019 was
$106,000 or $0.01 per diluted share versus a net loss of ($664,000)
or ($0.04) per diluted share the comparable prior year period.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation expense and certain
non-recurring charges) was $216,000 for the fourth quarter of 2019
versus a loss of ($633,000) in the prior year comparable period. A
reconciliation of adjusted EBITDA to net income (loss) is provided
elsewhere in this release.
Total revenue for the full year ended December 31, 2019 grew 73%
to $7,664,000 versus $4,433,000 in the prior year comparable
period. Year over year SaaS revenue grew 126% and totaled
$6,100,000 versus $2,700,000 in the prior year comparable
period.
Gross profit as a percentage of revenue was 87.0% for the year
ended December 31, 2019 versus 91.3% in the prior year comparable
period.
The net loss for the fiscal year ended December 31, 2019
improved to ($2,549,000) or ($0.16) per diluted share versus a net
loss of ($3,964,000) or ($0.26) per diluted share. Adjusted EBITDA
(earnings before interest, taxes, depreciation, amortization,
stock-based compensation expense and certain non-recurring charges)
improved by $1.8 million to a loss of ($1,813,000) for fiscal 2019
versus a loss of ($3,661,000) for fiscal 2018. A reconciliation of
adjusted EBITDA to net income (loss) is provided elsewhere in this
release.
Cash at the end of fiscal 2019 totaled $3.4 million versus $4.4
million in the prior year comparable period. Stockholders’ equity
totaled $11.7 million at the end of the 2019 fiscal year versus
$12.9 million at the end of the comparable prior year period. As of
December 31, 2019, the Company had net operating loss carry
forwards of approximately $17 million.
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-K for the fiscal
year ended December 31, 2019.
Conference Call Information:
The Company will hold an earnings conference call today, March
11, 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 13699516. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13699516. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until March 26, 2020.
INTELLICHECK, INC.
BALANCE SHEETS
DECEMBER 31, 2019 and 2018
2019
2018
ASSETS
CURRENT ASSETS:
Cash
$
3,350,853
$
4,376,017
Accounts receivable, net of allowance of
$42,055 and $24,675 as of December 31, 2019, and 2018,
respectively
1,674,894
1,019,434
Inventory
6,113
82,337
Other current assets
348,236
271,415
Total current assets
5,380,096
5,749,203
NOTE RECEIVABLE, net of current
portion
-
29,017
PROPERTY AND EQUIPMENT, net
181,731
264,583
GOODWILL
8,101,661
8,101,661
INTANGIBLE ASSETS, net
174,237
306,575
OPERATING LEASE RIGHT-OF-USE ASSET
151,668
-
OTHER ASSETS
7,778
9,742
Total assets
$
13,997,171
$
14,460,781
LIABILITIES
AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
95,388
$
73,334
Accrued expenses
1,408,086
726,918
Operating lease liability, current
portion
125,851
-
Deferred revenue, current portion
572,391
704,536
Total current liabilities
2,201,716
1,504,788
OTHER LIABILITIES
Deferred revenue, long-term portion
13,322
29,486
Operating lease liability, long-term
portion
32,620
-
Other long-term liabilities
-
6,802
Total liabilities
2,247,658
1,541,076
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock – $.001 par value; 40,000,000
shares authorized; 16,041,650 and 15,638,765 shares issued and
outstanding as of December 31, 2019 and 2018, respectively
16,042
15,639
Additional paid-in capital
128,668,583
127,290,467
Accumulated deficit
(116,935,112
)
(114,386,401
)
Total stockholders’ equity
11,749,513
12,919,705
Total liabilities and stockholders’
equity
$
13,997,171
$
14,460,781
INTELLICHECK, INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2019
AND 2018
2019
2018
REVENUES
$
7,663,658
$
4,433,454
COST OF REVENUES
(995,791
)
(386,617
)
Gross profit
6,667,867
4,046,837
OPERATING EXPENSES
Selling, general and administrative
5,658,958
5,236,170
Research and development
3,656,679
2,904,166
Total operating expenses
9,315,637
8,140,336
Loss from operations
(2,647,770
)
(4,093,499
)
OTHER INCOME
Interest and other income
99,059
129,923
Net loss
$
(2,548,711
)
$
(3,963,576
)
PER SHARE INFORMATION:
Loss per common share -
Basic/Diluted
$
(0.16
)
$
(0.26
)
Weighted average common shares used in
computing per share amounts -
Basic/Diluted
15,792,470
15,542,480
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019
AND 2018
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2017
15,009,246
$
15,009
$
126,416,869
$
(110,422,825
)
$
16,009,053
Stock-based compensation expense
-
-
186,707
-
186,707
Exercise of stock options
593,838
594
686,927
-
687,521
Issuance of shares for restricted stock
grants
35,681
36
(36
)
-
-
Net loss
-
-
-
(3,963,576
)
(3,963,576
)
BALANCE, December 31, 2018
15,638,765
$
15,639
$
127,290,467
$
(114,386,401
)
$
12,919,705
Stock-based compensation expense
-
-
584,865
-
584,865
Exercise of stock options, net of cashless
exercise of 21,864 shares
73,008
73
89,427
-
89,500
Issuance of shares for restricted stock
grants
9,807
9
(9
)
-
-
Exercise of warrants
320,070
321
703,833
-
704,154
Net loss
-
-
-
(2,548,711
)
(2,548,711
)
BALANCE, December 31, 2019
16,041,650
$
16,042
$
128,668,583
$
(116,935,112
)
$
11,749,513
INTELLICHECK, INC.
STATEMENTS OF CASH
FLOWS
FOR THE YEARS ENDED DECEMBER
31, 2019 AND 2018
2019
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(2,548,711
)
$
(3,963,576
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
249,895
245,548
Stock-based compensation expense
584,865
186,707
Change in provision for doubtful
accounts
17,380
5,925
Deferred rent
-
(5,202
)
Changes in assets and liabilities:
(Increase) in accounts receivable
(672,840
)
(372,732
)
Decrease in inventory
61,607
2,984
(Increase) in other current assets
(89,924
)
(50,931
)
Decrease in other assets
1,964
57,439
Increase (decrease) in accounts payable
and accrued expenses
703,223
(74,672
)
(Decrease) in deferred revenue
(148,309
)
(93,694
)
(Decrease) in other long-term
liabilities
-
(158,407
)
Net cash used in operating activities
(1,840,850
)
(4,220,611
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(20,088
)
(141,526
)
Collection on note receivable
42,120
40,472
Net cash provided by (used in) investing
activities
22,032
(101,054
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock
from exercise of stock options
89,500
687,521
Net proceeds from issuance of common stock
from exercise of warrants
704,154
-
Net cash provided by financing
activities
793,654
687,521
Net decrease in cash
(1,025,164
)
(3,634,144
)
CASH, beginning of year
4,376,017
8,010,161
CASH, end of year
$
3,350,853
$
4,376,017
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by adding back to net
income (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 its 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 us may not be comparable with similarly named
measures provided by other entities.
A reconciliation of GAAP net loss to Adjusted EBITDA
follows:
(Unaudited)
Three Months Ended December
31,
Years Ended December
31,
2019
2018
2019
2018
Net income (loss)
$
106,187
$
(664,025
)
$
(2,548,711
)
$
(3,963,576
)
Reconciling items:
Interest and other income
(34,681
)
(49,667
)
(99,059
)
(129,923
)
Depreciation and amortization
73,861
62,471
249,895
245,548
Stock-based compensation expense
71,041
18,547
584,865
186,707
Adjusted EBITDA
$
216,408
$
(632,674
)
$
(1,813,010
)
$
(3,661,244
)
About Intellicheck Nasdaq: IDN
Intellicheck (Nasdaq: IDN) is a trusted industry leader in
technology solutions that stop identity theft and fraud with
real-time identification authentication and age verification. We
make it possible for our clients to increase revenues, improve
customer service, and increase operational efficiencies. The
company is focused on partnering with banks, credit card issuers
and retailers to prevent fraud. Intellicheck also serves law
enforcement agencies, 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, 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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version on businesswire.com: https://www.businesswire.com/news/home/20200311005048/en/
Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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