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
third quarter ended September 30, 2024. Total revenue for the third
quarter ended September 30, 2024 was relatively flat at $4,709,000
compared to $4,760,000 in the same period of 2023. SaaS revenue
increased 1% and totaled $4,661,000 compared to $4,635,000 in the
same period of 2023.
“The strategic moves we have made in expanding into new markets
have yielded new sales and new sources of transaction volume. I
remain laser focused on revenue growth and I will continue that
intense focus for our shareholders and stakeholders alike,” said
Intellicheck CEO, Bryan Lewis.
Gross profit as a percentage of revenues remained strong at 91%,
in line with expectations, for the three months ended September 30,
2024, equaling the 91% in the same period in 2023.
Operating expenses for the three months ended September 30,
2024, which consist of selling, general and administrative expenses
and research and development expenses, decreased 1% to $5,195,000
for the third quarter of 2024 compared to $5,227,000 for the same
period of 2023. Included within operating expenses for the third
quarters of 2024 and 2023 were $237,000 and $342,000, respectively,
of non-cash stock-based compensation expense.
Net loss for the three months ended September 30, 2024 increased
by $113,000 to ($837,000) or ($0.04) per diluted share compared to
a net loss of ($724,000) or ($0.04) 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 $104,000 to a loss of ($167,000)
for the third quarter of 2024 as compared to a loss of $(271,000)
for the same period of 2023. A reconciliation of adjusted EBITDA to
net loss is provided in this release.
As of September 30, 2024, the Company had cash and cash
equivalents that totaled $5.7 million and stockholders’ equity
totaled $16.7 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
and nine months ended September 30, 2024.
Conference Call Information The Company will hold an
earnings conference call today, November 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 13745589. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13745589. The replay will be
available beginning approximately three hours after the completion
of the live event and will remain available until November 20,
2024.
INTELLICHECK, INC.
UNAUDITED CONDENSED BALANCE
SHEETS
SEPTEMBER 30, 2024 and DECEMBER 31,
2023
(in thousands, except share and per
share amounts)
September 30, 2024
December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
5,747
$
3,980
Short-term investments
—
5,000
Accounts receivable, net of allowance for
credit losses of $100 and $69 at September 30, 2024 and December
31, 2023, respectively
3,374
4,703
Other current assets
525
692
Total current assets
9,646
14,375
PROPERTY AND EQUIPMENT, NET
573
666
GOODWILL
8,102
8,102
INTANGIBLE ASSETS, NET
2,271
575
OTHER ASSETS
90
90
Total assets
$
20,682
$
23,808
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
848
$
884
Accrued expenses
1,787
3,245
Equity awards liability
—
4
Liability for shares withheld
—
190
Deferred revenue
1,312
2,209
Total current liabilities
3,947
6,532
Total liabilities
3,947
6,532
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock - $0.01 par value; 30,000
shares authorized; Series A convertible preferred stock, zero
shares issued and outstanding at September 30, 2024 and December
31, 2023, respectively
—
—
Common stock - $0.001 par value;
40,000,000 shares authorized; 19,550,965 and 19,354,335 shares
issued and outstanding at September 30, 2024 and December 31, 2023,
respectively
19
19
Additional paid-in capital
151,687
150,822
Accumulated deficit
(134,971
)
(133,565
)
Total stockholders’ equity
16,735
17,276
Total liabilities and stockholders’
equity
$
20,682
$
23,808
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF
OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024 AND 2023
(in thousands, except share and per
share amounts)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
REVENUES
$
4,709
$
4,760
$
14,060
$
13,730
COST OF REVENUES
(424
)
(428
)
(1,303
)
(1,112
)
Gross profit
4,285
4,332
12,757
12,618
OPERATING EXPENSES
Selling, general and administrative
4,018
3,677
11,562
11,609
Research and development
1,177
1,550
2,829
4,134
Total operating expenses
5,195
5,227
14,391
15,743
Loss from operations
(910
)
(895
)
(1,634
)
(3,125
)
OTHER INCOME
Interest and other income
73
179
230
181
Total other income
73
179
230
181
Net loss before provision for income
taxes
(837
)
(716
)
(1,404
)
(2,944
)
Provision for income taxes
—
8
2
20
Net loss
$
(837
)
$
(724
)
$
(1,406
)
$
(2,964
)
PER SHARE INFORMATION
Loss per common share -
Basic/Diluted
$
(0.04
)
$
(0.04
)
$
(0.07
)
$
(0.15
)
Weighted average common shares used in
computing per share amounts -
Basic/Diluted
19,499,174
19,278,295
19,390,258
19,209,620
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF
STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024 AND 2023
(in thousands, except share amounts)
Three months ended September 30,
2024
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Total
Stockholders’
Equity
Shares
Amount
BALANCE, June 30, 2024
19,492,702
$
19
$
151,422
$
(134,134
)
$
17,307
Stock-based compensation
–
–
265
–
265
Stock option exercises, net of cashless
exercises
7,064
–
–
–
—
Issuance of shares for vested restricted
stock grants
51,199
–
–
–
–
Net loss
–
–
–
(837
)
(837
)
BALANCE, September 30, 2024
19,550,965
$
19
$
151,687
$
(134,971
)
$
16,735
Three months ended September 30,
2023
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Total
Stockholders’
Equity
Shares
Amount
BALANCE, June 30, 2023
19,251,920
$
19
$
150,159
$
(133,825
)
$
16,353
Stock-based compensation
–
–
381
–
381
Issuance of shares for vested restricted
stock grants
47,627
–
–
–
–
Shares forfeited in exchange for
withholding taxes
–
–
(3
)
–
(3
)
Net loss
–
–
–
(724
)
(724
)
BALANCE, September 30, 2023
19,299,547
$
19
$
150,537
$
(134,549
)
$
16,007
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF
STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2024 AND 2023
(in thousands, except share amounts)
Nine months ended September 30,
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
–
–
865
–
865
Stock option exercises, net of cashless
exercises
11,939
–
–
–
–
Issuance of common stock for vested
restricted stock units and earned performance stock units
184,691
–
–
–
–
Net loss
–
–
–
(1,406
)
(1,406
)
BALANCE, September 30, 2024
19,550,965
$
19
$
151,687
$
(134,971
)
$
16,735
Nine months ended September 30,
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
–
–
1,361
–
1,361
Issuance of common stock for vested
restricted stock units and earned performance stock units
366,901
–
–
–
–
Shares forfeited in exchange for
withholding taxes
(24,720
)
–
(57
)
–
(57
)
Net loss
–
–
–
(2,964
)
(2,964
)
BALANCE, September 30, 2023
19,299,547
$
19
$
150,537
$
(134,549
)
$
16,007
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH
FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2024 AND 2023
Nine months ended September
30,
(In thousands)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(1,406
)
$
(2,964
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
275
210
Stock-based compensation
842
1,347
Allowance for credit losses
(31
)
23
Change in accrued interest and accretion
of discount on short-term investments
—
(154
)
Changes in assets and liabilities:
Decrease (Increase) in accounts
receivable
1,360
(1,284
)
Decrease (Increase) in other current and
long-term assets
167
31
(Decrease) Increase in accounts payable
and accrued expenses
(1,493
)
431
(Decrease) Increase in deferred
revenue
(897
)
1,246
(Decrease) in liability for shares
withheld
(190
)
—
Net cash used in operating activities
(1,373
)
(1,114
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(47
)
(68
)
Proceeds from maturity of short-term
investments
5,000
5,000
Purchases of short-term investments
—
(4,914
)
Software development costs
(1,833
)
—
Net cash provided by investing
activities
3,120
18
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of stock
options
20
—
Proceeds of insurance financing
arrangement
—
49
Withholding taxes paid on RSU vesting
—
(54
)
Repayment of insurance financing
arrangements
—
(133
)
Net cash provided by (used in) financing
activities
20
(138
)
Net increase (decrease) in cash
1,767
(1,234
)
CASH, beginning of period
3,980
5,196
CASH, end of period
$
5,747
$
3,962
Supplemental disclosures of cash flow
information:
Cash paid for interest
$
—
$
2
Cash paid for income taxes
$
—
$
78
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 accruals,
depreciation, amortization, restructuring severance expenses 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, 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 September
30
Nine Months Ended September
30
2024
2023
2024
2023
Net loss
$
(837
)
$
(724
)
$
(1,406
)
$
(2,964
)
Reconciling items:
Restructuring severance expenses
376
131
376
548
Provision for income taxes
—
8
2
20
Interest and other income
(73
)
(179
)
(230
)
(181
)
Sales tax accrual
—
80
—
227
Depreciation and amortization
130
71
275
210
Stock-based compensation including
liability classified awards
237
342
642
1,347
Adjusted EBITDA
$
(167
)
$
(271
)
$
(341
)
$
(793
)
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, title
companies, e-commerce and retail commerce businesses, law
enforcement and government agencies across North America.
Intellicheck is hardware agnostic and can be used through a mobile
device, a browser, or a retail point-of-scale scanner. For more
information on Intellicheck, visit us on the web and follow us on
LinkedIn, X, 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/20241113176650/en/
Investor Relations: Gar Jackson (949) 873-2789 /
gjackson@intellicheck.com Media and Public Relations: Sharon
Schultz (302) 539-3747 / sschultz@intellicheck.com
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