SaaS Revenue Grew 24% and Totaled
$2,776,000
Intellicheck, Inc. (Nasdaq: IDN), an industry leader in
identification authentication solutions, today announced its
financial results for the first quarter ended March 31, 2021. SaaS
revenue for the first quarter ended March 31, 2021 grew 24% and
totaled $2,776,000 versus $2,238,000 in the prior year comparable
period. Total revenue for the same period decreased 8% to
$2,863,000 versus $3,115,000 in the prior year comparable period
due to fewer ancillary hardware sales during the quarter versus the
prior year.
CEO Bryan Lewis said, “In addition to continued growth in our
client base, we are seeing current clients employ a variety of new
applications for our powerful identity platform. At the same time,
we are rapidly advancing in the digital world by offering new and
existing clients additional fraud indicators to add to the
certainty of person-not-present transactions.”
Lewis continued, “Against the backdrop of surging identity theft
and fraud, Intellicheck’s technology solutions continue to prove
their value by demonstrating time and time again that we provide
the most certainty in assuring the person on the other side of a
transaction is who they say they are.”
Gross profit as a percentage of revenues was 92.3% for the three
months ended March 31, 2021 versus 77.8% in the prior year
comparable period. SaaS revenues represented 97% of total sales
during the quarter.
Net loss for the three months ended March 31, 2021 was
$1,060,000 or ($0.06) per diluted share versus net income of
$27,000 or $0.00 per diluted share for the comparable prior year
period. Non-cash expenses during the quarter included stock-based
compensation primarily related to new hires that totaled
$981,000.
Adjusted EBITDA (earnings before gains on debt forgiveness,
interest and other income, income taxes, depreciation,
amortization, stock-based compensation expense and certain
non-recurring charges) was a loss of ($52,000) for the first
quarter of 2021 as compared to positive $144,000 in the prior year
comparable period. A reconciliation of adjusted EBITDA to net
(loss) income is provided elsewhere in this release.
Cash at March 31, 2021 totaled $12.6 million and stockholders’
equity totaled $22.1 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 fiscal
year ended March 31, 2021.
Conference Call Information
The Company will hold an earnings conference call on May 4 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 13718955. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13718955. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until May 18, 2021.
INTELLICHECK, INC.
BALANCE SHEETS
ASSETS
March 31,
December 31,
2021
2020
(Unaudited)
CURRENT ASSETS:
Cash
$
12,611,616
$
13,121,392
Accounts receivable, net of allowance of
$42,974 at March 31, 2021 and December 31, 2020, respectively
2,267,700
2,119,861
Other current assets
555,943
340,718
Total current assets
15,435,259
15,581,971
PROPERTY AND EQUIPMENT, net
170,692
138,870
GOODWILL
8,101,661
8,101,661
INTANGIBLE ASSETS, net
456,346
482,591
OPERATING LEASE RIGHT-OF-USE ASSET
-
31,131
OTHER ASSETS
4,250
4,250
Total assets
$
24,168,208
$
24,340,474
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
256,243
$
46,171
Accrued expenses
1,317,298
1,638,798
Operating lease liability, current
portion
-
32,620
Deferred revenue, current portion
455,896
402,782
Total current liabilities
2,029,437
2,120,371
OTHER LIABILITIES:
Deferred revenue, long-term portion
6,763
8,662
Total liabilities
2,036,200
2,129,033
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000
shares authorized; 18,686,391 and 18,410,458 shares issued and
outstanding at March 31, 2021 and December 31, 2020,
respectively
18,686
18,410
Additional paid-in capital
139,550,103
138,569,746
Accumulated deficit
(117,436,781)
(116,376,715)
Total stockholders' equity
22,132,008
22,211,441
Total liabilities and stockholders'
equity
$
24,168,208
$
24,340,474
INTELLICHECK, INC.
STATEMENTS OF
OPERATIONS
(Unaudited)
Three
months ended March 31,
2021
2020
REVENUES
$
2,862,541
$
3,115,272
COST OF REVENUES
(220,728)
(692,884)
Gross profit
2,641,813
2,422,388
OPERATING EXPENSES
Selling, general and administrative
2,380,780
1,454,555
Research and development
1,336,241
943,299
Total operating expenses
3,717,021
2,397,854
(Loss) income from operations
(1,075,208)
24,534
OTHER INCOME
Gain on forgiveness of unsecured
promissory note
10,000
-
Interest and other income
5,142
2,068
Total other income
15,142
2,068
Net (loss) income
$
(1,060,066)
$
26,602
PER SHARE INFORMATION
(Loss) income per common share -
Basic
$
(0.06)
$
0.00
Diluted
$
(0.06)
$
0.00
Weighted average common shares used in
computing per share amounts -
Basic
18,515,550
16,153,549
Diluted
18,515,550
17,153,861
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
(Unaudited)
Three months ended March 31,
2021
Additional
Total
Common
Stock
Paid-in
Accumulated
Stockholders’
Shares
Amount
Capital
Deficit
Equity
BALANCE, December 31, 2020
18,410,458
$
18,410
$
138,569,746
$
(116,376,715)
$
22,211,441
Stock-based compensation expense
-
-
980,633
-
980,633
Exercise of stock options, net of cashless
exercise of 58,122 shares
274,179
274
(274)
-
-
Issuance of shares for vested restricted
stock grants
1,754
2
(2)
-
-
Net loss
-
-
-
(1,060,066)
(1,060,066)
BALANCE, March 31, 2021
18,686,391
$
18,686
$
139,550,103
$
(117,436,781)
$
22,132,008
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
INTELLICHECK, INC.
STATEMENTS OF CASH
FLOWS
(Unaudited)
Three
months ended March 31,
2021
2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income
$
(1,060,066)
$
26,602
Adjustments to reconcile net (loss) income
to net cash used in operating activities:
Depreciation and amortization
42,798
33,795
Stock-based compensation expense
980,633
86,042
Forgiveness of unsecured promissory
note
(10,000)
-
Changes in assets and liabilities:
(Increase) in accounts receivable
(147,839)
(287,219)
(Increase) in other current assets
(215,225)
(38,851)
(Decrease) in accounts payable and accrued
expenses
(112,917)
(321,941)
Increase in deferred revenue
51,215
40,915
Net cash used in operating activities
(471,401)
(460,657)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of software license
-
(100,000)
Purchases of property and equipment
(48,375)
(26,189)
Collection of note receivable
-
10,795
Net cash used in investing activities
(48,375)
(115,394)
CASH FLOWS FROM FINANCING ACTIVITIES:
Return of repayment on unsecured
promissory note
10,000
-
Net proceeds from issuance of common stock
from exercise of stock options
-
125,287
Proceeds from issuance of common stock
from exercise of warrants
-
110,000
Net cash provided by financing
activities
10,000
235,287
Net decrease in cash
(509,776)
(340,764)
CASH, beginning of period
13,121,392
3,350,853
CASH, end of period
$
12,611,616
$
3,010,089
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 adjusting net (loss)
income for certain reductions such gains on debt forgiveness and
interest and other income and certain addbacks such as 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 gains on debt forgiveness, 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) income 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) income
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) income to Non-GAAP Adjusted
EBITDA follows:
Three Months Ended
March 31,
2021
2020
Net (loss) income
$
(1,060,066)
$
26,602
Reconciling items:
Gain on forgiveness of unsecured
promissory note
(10,000)
-
Interest and other income
(5,142)
(2,068)
Depreciation and amortization
42,798
33,795
Stock-based compensation expense
980,633
86,042
Adjusted EBITDA
$
(51,777)
$
144,371
About Intellicheck Nasdaq: IDN
Intellicheck (Nasdaq: IDN) is a prominent technology company
that is engaged in developing, integrating and marketing identity
verification solutions to address challenges that include
commercial retail and banking fraud prevention. Intellicheck’s
products include ID Check®, a solution for preventing identity
fraud across any industry delivered via smartphone, tablet, POS
integration or other electronic devices. For more information on
Intellicheck, visit us on the web and follow us on follow us on
LinkedIn, Twitter, Facebook, and 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/20210504006087/en/
Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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