Intellicheck, Inc. (Nasdaq: IDN), an industry leader in
identification authentication solutions, today announced its
financial results for the first quarter ended March 31, 2020. Total
revenue for the first quarter ended March 31, 2020 grew 144% to
$3,115,000 versus $1,279,000 in the prior year comparable period.
Quarter over quarter SaaS revenue for the first quarter grew 160%
and totaled $2,238,000 versus $861,000 in the prior year comparable
period.
Intellicheck CEO Bryan Lewis said, “We believe our strong growth
in year over year SaaS revenues and our increased product adoption
in key markets during the first quarter demonstrate that our model
is working. Clearly, the shutdown of retailers and restaurants and
the effect of furloughs has influenced consumer spending habits and
transaction counts have been impacted by shelter-at-home mandates
in most markets. We are watching the evolving landscape recognizing
that it will impact our business in the near term.”
Looking forward, Lewis commented, “We are optimistic as we see
signs of recovery in key client verticals. Retailers are beginning
to open their doors, restaurants, bars and entertainment venues are
coming back and, in turn, this will be a positive force for our
transaction counts. We expect these positive beginnings will serve
as a foundation for recovery in the back half of the year. The fact
remains that fraud is not going away, and we believe that will fuel
the demand for Intellicheck's technology solutions.”
Gross profit as a percentage of revenues was 77.8% for the three
months ended March 31, 2020 versus 85.0% in the prior year
comparable period. The decline in gross margin was driven by sales
mix that included $784,000 of hardware sales that carry lower gross
margins than SaaS revenues.
Net income for the three months ended March 31, 2020 was $27,000
or $0.00 per diluted share versus a net loss of ($1,213,000) or
($0.08) per diluted share for the comparable prior year period.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation expense and certain
non-recurring charges) was $144,000 for the first quarter of 2020,
marking the second sequential quarter of positive Adjusted EBITDA.
This compares to a loss of ($787,000) in the prior year comparable
period. A reconciliation of adjusted EBITDA to net income (loss) is
provided elsewhere in this release.
Cash at March 31, 2020 totaled $3.0 million and stockholders’
equity totaled $12.1 million 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 first
quarter ended March 31, 2020.
Conference Call Information
The Company will hold an earnings conference call today, May 6,
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 13702573. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13702573. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until May 20, 2020.
INTELLICHECK, INC.
BALANCE SHEETS
ASSETS
March 31,
December 31,
2020
2019
(Unaudited)
CURRENT ASSETS:
Cash
$
3,010,089
$
3,350,853
Accounts receivable, net of allowance of
$42,055 at March 31, 2020 and December 31, 2019, respectively
1,962,113
1,674,894
Other current assets
382,405
354,349
Total current assets
5,354,607
5,380,096
PROPERTY AND EQUIPMENT, net
187,036
181,731
GOODWILL
8,101,661
8,101,661
INTANGIBLE ASSETS, net
561,326
174,237
OPERATING LEASE RIGHT-OF-USE ASSET
122,120
151,668
OTHER ASSETS
7,778
7,778
Total assets
$
14,334,528
$
13,997,171
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
112,090
$
95,388
Accrued expenses
1,070,293
1,408,086
Note payable
300,000
-
Operating lease liability, current
portion
128,073
125,851
Deferred revenue, current portion
615,471
572,391
Total current liabilities
2,225,927
2,201,716
OTHER LIABILITIES:
Deferred revenue, long-term portion
11,157
13,322
Operating lease liability, long-term
portion
-
32,620
Total liabilities
2,237,084
2,247,658
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized; 16,209,627 and 16,041,650 shares issued and
outstanding at March 31, 2020 and December 31, 2019,
respectively
16,210
16,042
Additional paid-in capital
128,989,744
128,668,583
Accumulated deficit
(116,908,510)
(116,935,112)
Total stockholders' equity
12,097,444
11,749,513
Total liabilities and stockholders'
equity
$
14,334,528
$
13,997,171
INTELLICHECK, INC.
STATEMENTS OF
OPERATIONS
(Unaudited)
Three
months ended March 31,
2020
2019
REVENUES
$
3,115,272
$
1,278,994
COST OF REVENUES
(692,884)
(192,297)
Gross profit
2,422,388
1,086,697
OPERATING EXPENSES
Selling, general & administrative and
customer support & integration
1,454,555
1,493,710
Research and development
943,299
811,997
Total operating expenses
2,397,854
2,305,707
Income (loss) from operations
24,534
(1,219,010)
OTHER INCOME
Interest and other income
2,068
6,019
Net income (loss)
$
26,602
$
(1,212,991)
PER SHARE INFORMATION
Income (Loss) per common share -
Basic
$
0.00
$
(0.08)
Diluted
$
0.00
$
(0.08)
Weighted average common shares used
in computing per share amounts -
Basic
16,153,549
15,638,765
Diluted
17,153,861
15,638,765
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
(Unaudited)
Three months ended March 31,
2020
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2019
16,041,650
$
16,042
$
128,668,583
$
(116,935,112)
$
11,749,513
Stock-based compensation expense
-
-
86,042
-
86,042
Exercise of warrants
50,000
50
109,950
-
110,000
Exercise of stock options, net of cashless
exercise of 2,451 shares
115,307
115
125,172
-
125,287
Issuance of shares for vested restricted
stock grants
2,670
3
(3)
-
-
Net income
-
-
-
26,602
26,602
BALANCE, March 31, 2020
16,209,627
$
16,210
$
128,989,744
$
(116,908,510)
$
12,097,444
Three Months Ended March 31,
2019
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2018
15,638,765
$
15,639
$
127,290,467
$
(114,386,401)
$
12,919,705
Stock-based compensation expense
-
-
369,739
-
369,739
Net loss
-
-
-
(1,212,991)
(1,212,991)
BALANCE, March 31, 2019
15,638,765
$
15,639
$
127,660,206
$
(115,599,392)
$
12,076,453
INTELLICHECK, INC.
STATEMENTS OF CASH
FLOWS
(Unaudited)
Three
months ended March 31,
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
26,602
$
(1,212,991)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization
33,795
62,110
Stock-based compensation expense
86,042
369,739
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable
(287,219)
222,600
(Increase) in other current assets
(38,851)
(53,021)
Decrease in other assets
-
1,964
(Decrease) increase in accounts payable
and accrued expenses
(321,941)
13,479
Increase in deferred revenue
40,915
53,871
Net cash used in operating activities
(460,657)
(542,249)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of software license
(100,000)
-
Purchases of property and equipment
(26,189)
(3,540)
Collection of note receivable
10,795
10,372
Net cash (used in) provided by investing
activities
(115,394)
6,832
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock
from exercise of stock options
125,287
-
Net proceeds from issuance of common stock
from exercise of warrants
110,000
-
Net cash provided by financing
activities
235,287
-
Net decrease in cash
(340,764)
(535,417)
CASH, beginning of period
3,350,853
4,376,017
CASH, end of period
$
3,010,089
$
3,840,600
Supplemental disclosure of noncash
investing and financing activities:
Note payable for software license
$
300,000
$
-
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 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 us may not be comparable with
similarly named measures provided by other entities.
A reconciliation of GAAP net income (loss) to Adjusted EBITDA
follows:
(Unaudited)
Three Months Ended
March 31,
2020
2019
Net income (loss)
$
26,602
$
(1,212,991)
Reconciling items:
Interest and other income
(2,068)
(6,019)
Depreciation and amortization
33,795
62,110
Stock-based compensation expense
86,042
369,739
Adjusted EBITDA
$
144,371
$
(787,161)
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/20200506005052/en/
Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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