IDN Intellicheck Inc

Total Revenues Grew 10% Year Over Year

Continued Net Income and EBITDA Improvements

Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the first quarter ended March 31, 2024. Total revenue for the first quarter ended March 31, 2024 grew 10% to $4,680,000 compared to $4,254,000 in the same period of 2023. SaaS revenue grew 9% and totaled $4,609,000 compared to $4,228,000 in the same period of 2023.

“Unrelenting incidents of identity theft and fraud have led to a significant new focus on security and growing consumer concerns. Not only must every business have the advanced technology in place to protect their bottom line, but they also must be responsive to the clear message from consumers. Consumers want better protection, but they do not want to be burdened with time consuming, arduous processes to get that protection. They will take their business elsewhere if they do not get what they want in a user-friendly process. We will continue to capitalize on the demand for consumer-engaging solutions with our distinctive, affordable technology that is hardware agnostic. Uniquely, our technology features rapid, frictionless, and accurate identity verification that has no need for additional hardware. This differentiates Intellicheck from other would-be solution providers,“ said Intellicheck CEO Bryan Lewis.

Gross profit as a percentage of revenues was 90.7%, in line with expectations, for the three months ended March 31, 2024 compared to 92.2% in the same period in 2023.

Operating expenses for the three months ended March 31, 2024, which consist of selling, general and administrative expenses and research and development expenses, decreased 10% to $4,768,000 for the first quarter of 2024 compared to $5,303,000 for the same period of 2023. Included within operating expenses for the first quarters of 2024 and 2023 were $344,000 and $682,000, respectively, of non-cash equity compensation expense.

Net loss for the three months ended March 31, 2024 improved by $945,000 to ($442,000) or ($0.02) per diluted share compared to net loss of ($1,387,000) or ($0.07) per diluted share for the same period in 2023.

Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accruals, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) improved by $441,000 to $(117,000) for the first quarter of 2024 as compared to ($558,000) for the same period of 2023. A reconciliation of adjusted EBITDA to net loss is provided in this release.

As of March 31, 2024, the Company had cash and cash equivalents in the form of U.S. Treasuries that totaled $9.2 million and stockholders’ equity totaled $17.2 million.

The unaudited financial results reported today do not consider 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 three months ended March 31, 2024.

Conference Call Information

The Company will hold an earnings conference call on May 13 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 13745587. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13745587. The replay will be available beginning approximately three hours after the completion of the live event and will remain available until May 20, 2024.

INTELLICHECK, INC.

UNAUDITED CONDENSED BALANCE SHEETS

MARCH 31, 2024 and DECEMBER 31, 2023

(in thousands except share amounts)

 

March 31, 2024

 

December 31, 2023

 

 

 

 

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

9,239

 

 

$

3,980

 

Short-term investments

 

—

 

 

 

5,000

 

Accounts receivable, net of allowance of $85 and $69 at March 31, 2024 and December 31, 2023, respectively

 

2,744

 

 

 

4,703

 

Other current assets

 

654

 

 

 

692

 

Total current assets

 

12,637

 

 

 

14,375

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

628

 

 

 

666

 

GOODWILL

 

8,102

 

 

 

8,102

 

INTANGIBLE ASSETS, NET

 

1,157

 

 

 

575

 

OTHER ASSETS

 

91

 

 

 

90

 

Total assets

$

22,615

 

 

$

23,808

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable

$

1,121

 

 

$

884

 

Accrued expenses

 

2,657

 

 

 

3,245

 

Equity awards liability

 

—

 

 

 

4

 

Liability for shares withheld

 

190

 

 

 

190

 

Deferred revenue, current portion

 

1,469

 

 

 

2,209

 

Total current liabilities

 

5,437

 

 

 

6,532

 

 

 

 

 

Total liabilities

 

5,437

 

 

 

6,532

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

Preferred stock - $0.01 par value; 30,000 shares authorized; Series A convertible preferred stock, zero shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

 

—

 

 

 

—

 

Common stock - $.001 par value; 40,000,000 shares authorized; 19,404,561 and 19,354,335 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

 

19

 

 

 

19

 

Additional paid-in capital

 

151,166

 

 

 

150,822

 

Accumulated deficit

 

(134,007

)

 

 

(133,565

)

Total stockholders’ equity

 

17,178

 

 

 

17,276

 

 

 

 

 

Total liabilities and stockholders’ equity

$

22,615

 

 

$

23,808

 

INTELLICHECK, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(in thousands except share and per share amounts)

 

Three months ended March 31,

 

 

2024

 

 

 

2023

 

 

 

 

 

REVENUES

$

4,680

 

 

$

4,254

 

COST OF REVENUES

 

(435

)

 

 

(332

)

Gross profit

 

4,245

 

 

 

3,922

 

 

 

 

 

OPERATING EXPENSES

 

 

 

Selling, general and administrative

 

3,949

 

 

 

3,995

 

Research and development

 

819

 

 

 

1,308

 

Total operating expenses

 

4,768

 

 

 

5,303

 

 

 

 

 

Loss from operations

 

(523

)

 

 

(1,381

)

 

 

 

 

OTHER INCOME

 

 

 

Interest and other income

 

83

 

 

 

1

 

Total other income

 

83

 

 

 

1

 

 

 

 

 

Net loss before provision for income taxes

 

(440

)

 

 

(1,380

)

Provision for income taxes

 

2

 

 

 

7

 

 

 

 

 

Net loss

$

(442

)

 

$

(1,387

)

 

 

 

 

PER SHARE INFORMATION

 

 

 

Loss per common share -

 

 

 

Basic/Diluted

$

(0.02

)

 

$

(0.07

)

 

 

 

 

Weighted average common shares used in computing per share amounts -

 

 

 

Basic/Diluted

 

19,404,561

 

 

 

19,088,752

 

INTELLICHECK, INC.

UNAUDITED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(in thousands, except number of shares)

 

Three months ended March 31, 2024

 

Common Stock

 

Additional

Paid-in

Capital

 

Accumulated

Deficit

 

Total

Stockholders’

Equity

 

Shares

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, December 31, 2023

19,354,335

 

$

19

 

$

150,822

 

$

(133,565

)

 

$

17,276

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

–

 

 

–

 

 

344

 

 

–

 

 

 

344

 

Issuance of shares for vested restricted stock grants

50,226

 

 

–

 

 

–

 

 

–

 

 

 

–

 

Net loss

–

 

 

–

 

 

–

 

 

(442

)

 

 

(442

)

BALANCE, March 31, 2024

19,404,561

 

$

19

 

$

151,166

 

$

(134,007

)

 

$

17,178

 

 

Three months ended March 31, 2023

 

Common Stock

 

Additional

Paid-in

Capital

 

Accumulated

Deficit

 

Total

Stockholders’

Equity

 

Shares

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, December 31, 2022

18,957,366

 

$

19

 

$

149,233

 

$

(131,585

)

 

$

17,667

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

–

 

 

–

 

 

642

 

 

–

 

 

 

642

 

Issuance of shares for vested restricted stock grants

258,497

 

 

–

 

 

–

 

 

–

 

 

 

–

 

Net loss

–

 

 

–

 

 

–

 

 

(1,387

)

 

 

(1,387

)

BALANCE, March 31, 2023

19,215,863

 

$

19

 

$

149,875

 

$

(132,972

)

 

$

16,922

 

INTELLICHECK, INC.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

 

Three months ended March 31,

 

 

2024

 

 

 

2023

 

 

(in thousands)

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net loss

$

(442

)

 

$

(1,387

)

Adjustments to reconcile net loss to net cash provided by operating activities

 

 

 

Depreciation and amortization

 

72

 

 

 

70

 

Stock-based compensation

 

334

 

 

 

682

 

Allowance for credit losses

 

16

 

 

 

10

 

Change in accrued interest and accretion of discount on short-term investments

 

—

 

 

 

(1

)

Changes in assets and liabilities:

 

 

 

Decrease (Increase) in accounts receivable

 

1,944

 

 

 

(900

)

Decrease (Increase) in other current assets and long-term assets

 

38

 

 

 

(145

)

(Decrease) Increase in accounts payable and accrued expenses

 

(353

)

 

 

783

 

(Decrease) Increase in deferred revenue

 

(740

)

 

 

1,121

 

Net cash provided by operating activities

 

869

 

 

 

233

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchases of property and equipment

 

(9

)

 

 

(17

)

Proceeds from maturity of short-term investments

 

5,000

 

 

 

—

 

Software development costs

 

(601

)

 

 

—

 

Net cash provided by (used in) investing activities

 

4,390

 

 

 

(17

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds of insurance financing arrangement

 

—

 

 

 

49

 

Repayment of insurance financing arrangements

 

—

 

 

 

(106

)

Net cash provided by (used in) financing activities

 

—

 

 

 

(57

)

 

 

 

 

Net increase in cash

 

5,259

 

 

 

159

 

 

 

 

 

CASH, beginning of period

 

3,980

 

 

 

5,196

 

 

 

 

 

CASH, end of period

$

9,239

 

 

$

5,355

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

—

 

 

$

1

 

Adjusted EBITDA

We use Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by adjusting net loss for certain reductions such as interest and other income and certain addbacks such as income taxes, sales tax accrual, 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 sales tax accruals, 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, sales tax accruals, 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 companies.

The reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA is as follows:

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

 

 

 

 

Net loss

$

(442

)

 

$

(1,387

)

Reconciling items:

 

 

 

Provision for income taxes

 

2

 

 

 

7

 

Interest and other income

 

(83

)

 

 

(1

)

Sales tax accrual

 

—

 

 

 

71

 

Depreciation and amortization

 

72

 

 

 

70

 

Stock-based compensation including liability classified awards

 

334

 

 

 

682

 

 

 

 

 

Adjusted EBITDA

$

(117

)

 

$

(558

)

Contact

Investor Relations: Gar Jackson (949) 873-2789 Media and Public Relations: Sharon Schultz (302) 539-3747 / sschultz@intellicheck.com

About Intellicheck

Intellicheck (Nasdaq: IDN) is an identity company that delivers on-demand digital identity validation solutions for KYC, fraud, and age verification needs. Intellicheck validates both digital and physical identities for financial services, fintech companies, BNPL providers, e-commerce, and retail commerce businesses, law enforcement and government agencies across North America. Intellicheck can be used through a mobile device, a browser, or a retail point-of-sale scanner. For more information on Intellicheck, visit us on the web and 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; the impact of inflation on our business and customer’s businesses and any effect this has on economic activity with our customer’s businesses; 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240513912436/en/

Contact Investor Relations: Gar Jackson (949) 873-2789 Media and Public Relations: Sharon Schultz (302) 539-3747 / sschultz@intellicheck.com