MELVILLE, N.Y.--(BUSINESS WIRE)--Intellicheck, Inc. (NYSE American: IDN), an industry leader in identification authentication solutions, today announced its financial results for the second quarter ended June 30, 2018.
Revenue for the second quarter ended June 30, 2018 increased 5% to $1,001,418 versus $951,334 in the prior year comparable period. SaaS revenue in the second quarter grew 107% and totaled $625,000 versus $302,000 in the quarter ending June 30, 2017. Gross profit as a percentage of revenues improved to 91.8% for the three months ended June 30, 2018 versus 78.5% in the prior year comparable period.
Intellicheck CEO Bryan Lewis said, “The growth in SaaS based product revenue reflects the early success of our strategic plan in refocusing our efforts in our key markets and the importance of the steps we have taken to build a new sales organization and initiate operational changes.”
Lewis said the path forward is well-defined, “We will continue our concentration on growing market traction for our key products, powering market opportunities to galvanize consistent growth.”
The net loss for the three months ended June 30, 2018 was ($1,100,375) or ($0.07) per diluted share versus ($1,098,553) or ($0.10) 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) was a loss of ($1,018,135) for the second quarter of 2018 versus a loss of ($902,211) in the prior year comparable period. A reconciliation of adjusted EBITDA to net loss is provided elsewhere in this release.
Cash at June 30, 2018 totaled $6.5 million and stockholders’ equity totaled $14.7 million at the end of 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 period ended June 30, 2018.
Conference Call Information:
The Company will hold an earnings conference call today, August 14, 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.
The conference call will also be webcast simultaneously and can be accessed at http://www.investorcalendar.com/event/29079 by clicking on the link to the webcast.
The webcast will be available for 14 days following the conference call.
PART I – FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
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INTELLICHECK, INC. |
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| CONSOLIDATED BALANCE SHEETS | ||||||
| ASSETS | ||||||
| June 30, | December 31, | |||||
| 2018 | 2017 | |||||
| (Unaudited) | ||||||
| CURRENT ASSETS: | ||||||
| Cash | $ | 6,462,631 | $ | 8,010,161 | ||
| Accounts receivable, net of allowance of $24,375 and $18,750 | ||||||
| at June 30, 2018 and December 31, 2017, respectively | 473,704 | 652,627 | ||||
| Inventory | 81,217 | 85,321 | ||||
| Other current assets | 453,355 | 218,835 | ||||
| Total current assets | 7,470,907 | 8,966,944 | ||||
| NOTE RECEIVABLE, net of current portion | 50,287 | 71,138 | ||||
| PROPERTY AND EQUIPMENT, net | 296,992 | 211,602 | ||||
| GOODWILL | 8,101,661 | 8,101,661 | ||||
| INTANGIBLE ASSETS, net | 385,075 | 463,578 | ||||
| OTHER ASSETS | 9,742 | 67,181 | ||||
| Total assets | $ | 16,314,664 | $ | 17,882,104 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable | $ | 52,762 | $ | 71,578 | ||
| Accrued expenses | 928,281 | 815,350 | ||||
| Deferred revenue, current portion | 624,064 | 739,980 | ||||
| Total current liabilities | 1,605,107 | 1,626,908 | ||||
| OTHER LIABILITIES: | ||||||
| Deferred revenue, long-term portion | 48,751 | 87,736 | ||||
| Other long-term liabilities | 7,863 | 158,407 | ||||
| Total liabilities | 1,661,721 | 1,873,051 | ||||
| COMMITMENTS AND CONTINGENCIES (Note 11) | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||
| Common stock - $.001 par value; 40,000,000 shares authorized; | ||||||
| 15,625,329 and 15,009,246 shares issued and outstanding at | ||||||
| June 30, 2018 and December 31, 2017, respectively | 15,625 | 15,009 | ||||
| Additional paid-in capital | 127,228,475 | 126,416,869 | ||||
| Accumulated deficit | (112,591,157) | (110,422,825) | ||||
| Total stockholders' equity | 14,652,943 | 16,009,053 | ||||
| Total liabilities and stockholders' equity | $ | 16,314,664 | $ | 17,882,104 | ||
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INTELLICHECK, INC. |
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
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(Unaudited) |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2018 |
2017 |
2018 |
2017 |
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| REVENUES | $ | 1,001,418 | $ | 951,334 | $ | 2,063,480 | $ | 1,663,994 | ||||
| COST OF REVENUES | (82,393) | (204,634) | (182,862) | (314,070) | ||||||||
| Gross profit | 919,025 | 746,700 | 1,880,618 | 1,349,924 | ||||||||
| OPERATING EXPENSES | ||||||||||||
| Selling, general and administrative | 1,307,524 | 1,352,361 | 2,722,908 | 2,525,244 | ||||||||
| Research and development | 755,097 | 495,048 | 1,383,133 | 865,645 | ||||||||
| Total operating expenses | 2,062,621 | 1,847,409 | 4,106,041 | 3,390,889 | ||||||||
| Loss from operations | (1,143,596) | (1,100,709) | (2,225,423) | (2,040,965) | ||||||||
| OTHER INCOME | ||||||||||||
| Interest and other income | 43,221 | 2,156 | 57,091 | 5,655 | ||||||||
| Net loss | $ | (1,100,375) | $ | (1,098,553) | $ | (2,168,332) | $ | (2,035,310) | ||||
| PER SHARE INFORMATION | ||||||||||||
| Loss per common share - | ||||||||||||
| Basic/Diluted | $ | (0.07) | $ | (0.10) | $ | (0.14) | $ | (0.19) | ||||
| Weighted average common shares used | ||||||||||||
| in computing per share amounts - | ||||||||||||
| Basic/Diluted | 15,623,351 | 10,769,437 | 15,448,255 | 10,750,751 | ||||||||
| INTELLICHECK, INC. | ||||||||||||||
| CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY | ||||||||||||||
| For the six months ended June 30, 2018 | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Additional | Total | |||||||||||||
|
Common Stock |
Paid-in | Accumulated | Stockholders’ | |||||||||||
|
Shares |
Amount |
Capital |
Deficit |
Equity |
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| BALANCE, January 1, 2018 | 15,009,246 | $ | 15,009 | $ | 126,416,869 | $ | (110,422,825) | $ | 16,009,053 | |||||
| Stock-based compensation expense | - | - | 124,701 | - | 124,701 | |||||||||
| Exercise of stock options | 593,838 | 594 | 686,927 | - | 687,521 | |||||||||
| Vesting of restricted stock | 22,155 | 22 | (22) | - | - | |||||||||
| Net loss | - | - | - | (2,168,332) | (2,168,332) | |||||||||
| BALANCE, June 30, 2018 | 15,625,239 | $ | 15,625 | $ | 127,228,475 | $ | (112,591,157) | $ | 14,652,943 | |||||
| INTELLICHECK, INC. | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (Unaudited) | ||||||
|
Six months ended June 30, |
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2018 |
2017 |
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| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net loss | $ | (2,168,332) | $ | (2,035,310) | ||
| Adjustments to reconcile net loss to net cash used in | ||||||
| operating activities: | ||||||
| Depreciation and amortization | 120,618 | 208,600 | ||||
| Stock-based compensation expense | 124,701 | 191,518 | ||||
| Provision for doubtful accounts | 5,625 | - | ||||
| Deferred rent | (6,002) | (22,215) | ||||
| Changes in assets and liabilities: | ||||||
| Decrease (increase) in accounts receivable | 173,298 | (273,595) | ||||
| Decrease (increase) in inventory | 4,104 | (11,580) | ||||
| (Increase) in other current assets | (233,703) | (187,879) | ||||
| Decrease in other assets | 57,439 | 1,358 | ||||
| Increase in accounts payable and accrued expenses | 107,980 | 93,792 | ||||
| (Decrease) in deferred revenue | (154,901) | (175,662) | ||||
| (Decrease) in other long-term liabilities | (158,407) | - | ||||
| Net cash used in operating activities | (2,127,580) | (2,210,973) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Capital expenditures | (127,505) | (12,794) | ||||
| Collection of note receivable | 20,034 | 19,185 | ||||
| Net cash (used in) provided by investing activities | (107,471) | 6,391 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Net proceeds from issuance of common stock from exercise | ||||||
| of stock options | 687,521 | 10,100 | ||||
| Net proceeds from issuance of common stock from exercise | ||||||
| of warrants | - | 137,500 | ||||
| Net cash provided by financing activities | 687,521 | 147,600 | ||||
| Net decrease in cash | (1,547,530) | (2,056,982) | ||||
| CASH, beginning of period | 8,010,161 | 3,092,172 | ||||
| CASH, end of period | $ | 6,462,631 | $ | 1,035,190 | ||
A reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA follows:
| (Unaudited) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||
| Net loss | $ | (1,100,375) | $ | (1,098,553) | $ | (2,168,332) | $ | (2,035,310) | |||
| Reconciling items: | |||||||||||
| Interest and other income | (43,221) | (2,156) | (57,091) | (5,655) | |||||||
| Depreciation and amortization | 61,468 | 103,780 | 120,618 | 208,600 | |||||||
| Stock-based compensation expense | 63,993 | 94,718 | 124,701 | 191,518 | |||||||
| Adjusted EBITDA | $ | (1,018,135) | $ | (902,211) | $ | (1,980,104) | $ | (1,640,847) | |||
About Intellicheck NYSE American: IDN Intellicheck is a trusted industry leader in technology solutions that provide real-time identification authentication and age verification. We make it possible for our clients to enhance safety and awareness, 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 at agencies, major seaports, and military bases, and diverse state and federal government agencies. For more information on Intellicheck, visit http://www.intellicheck.com/ and follow Intellicheck on Twitter @IntellicheckIDN, on Facebook https://www.facebook.com/intellicheckidn/, on Instagram @IntellicheckIDN, on LinkedIn https://www.linkedin.com/company/intellicheck-inc- and on YouTube https://www.youtube.com/user/ICMOBIL.
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,” “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 Intellicheck’s products and the presently anticipated growth in the commercial adoption of the Company’s products and services; changing levels of demand for Intellicheck’s current and future products; Intellicheck’s ability to reduce or maintain expenses while increasing sales; customer results achieved using our products in both the short and long term; success of future research and development activities; Intellicheck’s ability to successfully market and sell its products, any delays or difficulties in the Company’s supply chain coupled with the typically long sales and implementation cycle for its products; Intellicheck’s ability to enforce its intellectual property rights; changes in laws and regulations applicable to the Company’s products; the Company’s 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 Intellicheck’s reports filed with the SEC. We do not assume any obligation to update the forward-looking information.
