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, 2020. Total revenue for the fourth quarter ended
December 31, 2020 grew 6% to $3,078,000 versus $2,896,000 in the
prior year comparable period. Quarter over Quarter SaaS revenue for
the fourth quarter grew 18% and totaled $3,012,000 versus
$2,557,000 in the prior year comparable period and grew 23%
sequentially over the third quarter of 2020.
CEO Bryan Lewis said, “We continued to show solid growth with
total revenue for fiscal year 2020 up 40% over 2019 and SaaS
revenue up 54% during the same period. During the fourth quarter,
total revenue was up 6% over fourth quarter 2019, but more
importantly, SaaS revenue was up 18% over the same period.
Sequentially, fourth quarter SaaS revenue was up 23% versus third
quarter 2020. We believe that given COVID-19, and the impact on
store traffic, those numbers bode well for the future.”
Lewis noted that the COVID-19 pandemic has served to fuel what
were already surging rates of identity theft and fraud raising
consumer and market awareness of the toll it takes. “In the past
year, one in five Americans fell victim to identity theft or
attempted identity theft. According to a new Harris Research Poll,
identity theft has become top-of-mind for 3 in 5 Americans this
year and 60% expect that they will suffer financial loss as victims
of identity theft. The need is there, and we remain confident that
we have an important role to play in meeting that need.”
Gross profit as a percentage of revenues was 92.6% for the three
months ended December 31, 2020 versus 88.8% in the prior year
comparable period.
Net income for the three months ended December 31, 2020 was
$1,260,000 or $0.07 per diluted share versus $106,000 or $0.01 per
diluted share for the comparable prior year period.
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 $635,000 for the fourth quarter of 2020
as compared to $216,000 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, 2020 grew 40%
to $10,735,000 versus $7,664,000 in the prior year comparable
period. Year over year SaaS revenue grew 54% and totaled $9,373,000
versus $6,102,000 in the prior year comparable period.
Gross profit as a percentage of revenue was 86.7% for the year
ended December 31, 2020 versus 87.0% in the prior year comparable
period.
Net income for the fiscal year ended December 31, 2020 improved
to $558,000 or $0.03 per diluted share versus a net loss of
($2,549,000) or ($0.16) per diluted share in the prior year
comparable period. 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) improved by approximately $2.1 million to of
$329,000 for fiscal 2020 versus a loss of ($1,813,000) for fiscal
2019. A reconciliation of adjusted EBITDA to net income (loss) is
provided elsewhere in this release.
Cash at December 31, 2020 totaled $13.1 million and
stockholders’ equity totaled $22.2 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 audit process and should be considered
preliminary until Intellicheck files its Form 10-K for the fiscal
year ended December 31, 2020.
Conference Call Information
The Company will hold an earnings conference call on March 16 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 13717133. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13717133. The replay will be
available beginning approximately two hours after the completion of
the live event and will remain available until March 30, 2021.
INTELLICHECK, INC.
BALANCE SHEETS
DECEMBER 31, 2020 and 2019
2020
2019
ASSETS
CURRENT ASSETS:
Cash
$
13,121,392
$
3,350,853
Accounts receivable, net of allowance of
$42,974 and $42,055 as of December 31, 2020, and 2019,
respectively
2,119,861
1,674,894
Other current assets
340,718
354,349
Total current assets
15,581,971
5,380,096
PROPERTY AND EQUIPMENT, net
138,870
181,731
GOODWILL
8,101,661
8,101,661
INTANGIBLE ASSETS, net
482,591
174,237
OPERATING LEASE RIGHT-OF-USE ASSET
31,131
151,668
OTHER ASSETS
4,250
7,778
Total assets
$
24,340,474
$
13,997,171
LIABILITIES
AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
46,171
$
95,388
Accrued expenses
1,638,798
1,408,086
Operating lease liability, current
portion
32,620
125,851
Deferred revenue, current portion
402,782
572,391
Total current liabilities
2,120,371
2,201,716
OTHER LIABILITIES
Deferred revenue, long-term portion
8,662
13,322
Operating lease liability, long-term
portion
-
32,620
Total liabilities
2,129,033
2,247,658
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock – $.001 par value; 40,000,000
shares authorized; 18,410,458 and 16,041,650 shares issued and
outstanding as of December 31, 2020 and 2019, respectively
18,410
16,042
Additional paid-in capital
138,569,746
128,668,583
Accumulated deficit
(116,376,715
)
(116,935,112
)
Total stockholders’ equity
22,211,441
11,749,513
Total liabilities and stockholders’
equity
$
24,340,474
$
13,997,171
INTELLICHECK, INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2020
AND 2019
2020
2019
REVENUES
$
10,734,509
$
7,663,658
COST OF REVENUES
(1,425,802
)
(995,791
)
Gross profit
9,308,707
6,667,867
OPERATING EXPENSES
Selling, general and administrative
5,893,371
5,658,958
Research and development
3,674,987
3,656,679
Total operating expenses
9,568,358
9,315,637
Loss from operations
(259,651
)
(2,647,770
)
OTHER INCOME
Gain on forgiveness of unsecured
promissory note
796,100
-
Interest and other income
21,948
99,059
Total other income
818,048
99,059
Net income (loss)
$
558,397
$
(2,548,711
)
PER SHARE INFORMATION:
Income (Loss) per common share -
Basic
$
0.03
$
(0.16
)
Diluted
$
0.03
$
(0.16
)
Weighted average common shares used in
computing per share amounts -
Basic
17,324,150
15,792,470
Diluted
17,957,414
15,792,470
INTELLICHECK, INC.
STATEMENTS OF STOCKHOLDERS’
EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2020
AND 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
-
-
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 vested 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
Stock-based compensation expense
-
-
409,477
-
409,477
Issuance of common stock, net of costs
1,769,230
1,769
10,567,698
-
10,569,467
Exercise of stock options, net of cashless
exercise of 94,300 shares
689,901
690
203,468
-
204,158
Issuance of shares for vested restricted
stock grants
24,778
24
(24
)
-
-
Exercise of warrants
50,750
51
111,599
-
111,650
Settlement of executive bonuses with
issuance of restricted stock units
14,993
15
84,695
-
84,710
Shares forfeited in exchange for
withholding taxes
(180,844
)
(181
)
(1,475,750
)
-
(1,475,931
)
Net income
-
-
-
558,397
558,397
BALANCE, December 31, 2020
18,410,458
$
18,410
$
138,569,746
$
(116,376,715
)
$
22,211,441
INTELLICHECK, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2020
AND 2019
2020
2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
$
558,397
$
(2,548,711
)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization
179,405
249,895
Stock-based compensation expense
409,477
584,865
Change in provision for doubtful
accounts
919
17,380
Forgiveness of unsecured promissory
note
(796,100
)
-
Changes in assets and liabilities:
(Increase) in accounts receivable
(445,886
)
(672,840
)
(Increase) in other current assets
(19,635
)
(28,317
)
Decrease in other assets
7,778
1,964
Increase in accounts payable and accrued
expenses
260,892
703,223
(Decrease) in deferred revenue
(174,269
)
(148,309
)
Net cash used in operating activities
(19,022
)
(1,840,850
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software license
(400,000
)
-
Purchases of property, plant and
equipment
(44,900
)
(20,088
)
Collection on note receivable
29,017
42,120
Net cash (used in) provided by investing
activities
(415,883
)
22,032
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common
stock
10,569,467
-
Loan proceeds on unsecured promissory note
under Paycheck Protection Program
796,100
-
Loan proceeds on unsecured promissory note
under Economic Injury Disaster Loan program
10,000
Net proceeds from issuance of common stock
from exercise of stock options
204,158
89,500
Proceeds from issuance of common stock
from exercise of warrants
111,650
704,154
Withholding taxes paid on exercise of
stock options and vesting of restricted stock units
(1,475,931
)
-
Loan payments on unsecured promissory
note
(10,000
)
-
Net cash provided by financing
activities
10,205,444
793,654
Net increase (decrease) in cash
9,770,539
(1,025,164
)
CASH, beginning of year
3,350,853
4,376,017
CASH, end of year
$
13,121,392
$
3,350,853
Supplemental disclosure of noncash
investing and financing activities:
Settlement of executive bonuses with
restricted stock units
$
84,710
$
-
Adjusted EBITDA
We use Adjusted EBITDA as a non-GAAP financial performance
measurement. Adjusted EBITDA is calculated by adjusting net income
(loss) for certain reductions such as 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 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 by us
may not be comparable with similarly named measures provided by
other entities.
A reconciliation of GAAP net income (loss) to Non-GAAP Adjusted
EBITDA follows:
(Unaudited)
Three Months Ended
December 31,
Years Ended December
31,
2020
2019
2020
2019
Net income (loss)
$
1,259,656
$
106,187
$
558,397
$
(2,548,711
)
Reconciling items:
Gain on forgiveness of unsecured
promissory note
(796,100
)
-
(796,100
)
-
Interest and other income
(3,762
)
(34,681
)
(21,948
)
(99,059
)
Depreciation and amortization
52,262
73,861
179,405
249,895
Stock-based compensation expense
122,568
71,041
409,477
584,865
Adjusted EBITDA
$
634,624
$
216,408
$
329,231
$
(1,813,010
)
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 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/20210316005148/en/
Investor Relations: Gar Jackson (949) 873-2789 Media and Public
Relations: Sharon Schultz (302) 539-3747
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