Continued Operating Expense and Net
Income 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
second quarter ended June 30, 2024. Total revenue for the second
quarter ended June 30, 2024 declined 0.9% to $4,672,000 compared to
$4,716,000 in the same period of 2023. SaaS revenue declined 0.8%
and totaled $4,627,000 compared to $4,663,000 in the same period of
2023.
“Our focus on innovation and market expansion has set the stage
for future financial growth. We believe our market diversification
strategy is already showing its value in the face of economic
variability in key markets such as retail. Going forward, we expect
those headwinds will become tailwinds that will contribute to our
growth and profitability,” said Intellicheck CEO Bryan Lewis.
Gross profit as a percentage of revenues was 90.5%, in line with
expectations, for the three months ended June 30, 2024 compared to
92.5% in the same period in 2023.
Operating expenses for the three months ended June 30, 2024,
which consist of selling, general and administrative expenses and
research and development expenses, decreased 14.8% to $4,443,000
for the second quarter of 2024 compared to $5,213,000 for the same
period of 2023. Included within operating expenses for the second
quarters of 2024 and 2023 were $72,000 and $323,000, respectively,
of non-cash equity compensation expense.
Net loss for the three months ended June 30, 2024 improved by
$726,000 to ($127,000) or ($0.01) per diluted share compared to net
loss of ($853,000) 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) decreased by $106,000 to (70,000) for the
second quarter of 2024 as compared to a gain of $36,000 for the
same period of 2023. A reconciliation of adjusted EBITDA to net
loss is provided in this release.
As of June 30, 2024, the Company had cash and cash equivalents
that totaled $7.3 million and stockholders’ equity totaled $17.3
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 June 30, 2024.
Conference Call Information
The Company will hold an earnings conference call on August 8 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 13745588. For
callers outside the U.S., please dial 201-612-7415 and use
conference identification number 13745588. The replay will be
available beginning approximately three hours after the completion
of the live event and will remain available until August 15,
2024.
INTELLICHECK, INC.
UNAUDITED CONDENSED BALANCE
SHEETS
JUNE 30, 2024 and DECEMBER 31,
2023
(in thousands, except share and per
share amounts)
June 30, 2024
December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
7,260
$
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
3,315
4,703
Other current assets
645
692
Total current assets
11,220
14,375
PROPERTY AND EQUIPMENT, NET
592
666
GOODWILL
8,102
8,102
INTANGIBLE ASSETS, NET
1,912
575
OTHER ASSETS
90
90
Total assets
$
21,916
$
23,808
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
$
909
$
884
Accrued expenses
1,902
3,245
Equity awards liability
—
4
Liability for shares withheld
—
190
Deferred revenue
1,798
2,209
Total current liabilities
4,609
6,532
OTHER LIABILITIES:
Deferred revenue, long-term portion
—
—
Total liabilities
4,609
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 June 30, 2024 and December 31,
2023 respectively
—
—
Common stock - $0.001 par value;
40,000,000 shares authorized; 19,492,702
and 19,354,335 shares issued and
outstanding at June 30, 2024 and December 31, 2023,
respectively
19
19
Additional paid-in capital
151,422
150,822
Accumulated deficit
(134,134
)
(133,565
)
Total stockholders’ equity
17,307
17,276
Total liabilities and stockholders’
equity
$
21,916
$
23,808
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF
OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE
30, 2024 AND 2023
(in thousands, except share and per
share amounts)
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
REVENUES
$
4,672
$
4,716
$
9,352
$
8,970
COST OF REVENUES
(444
)
(352
)
(879
)
(684
)
Gross profit
4,228
4,364
8,473
8,286
OPERATING EXPENSES
Selling, general and administrative
3,608
3,937
7,544
7,931
Research and development
835
1,276
1,653
2,584
Total operating expenses
4,443
5,213
9,197
10,515
Loss from operations
(215
)
(849
)
(724
)
(2,229
)
OTHER INCOME
Interest and other income
88
—
157
1
Total other income
88
—
157
1
Net loss before provision for income
taxes
(127
)
(849
)
(567
)
(2,228
)
Provision for income taxes
—
4
2
12
Net loss
$
(127
)
$
(853
)
$
(569
)
$
(2,240
)
PER SHARE INFORMATION
Loss per common share -
Basic/Diluted
$
(0.01
)
$
(0.04
)
$
(0.03
)
$
(0.12
)
Weighted average common shares used in
computing per share amounts -
Basic/Diluted
19,467,162
19,120,327
19,492,702
19,168,534
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF
STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE
30, 2024 AND 2023
(in thousands, except share amounts)
Three months ended June 30,
2024
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Total
Stockholders’
Equity
Shares
Amount
BALANCE, March 31, 2024
19,404,561
$
19
$
151,166
$
(134,007
)
$
17,178
Stock-based compensation
–
–
256
–
256
Stock option exercises, net of cashless
exercises
4,875
–
–
–
—
Issuance of shares for vested restricted
stock grants
83,266
–
–
–
–
Net loss
–
–
–
(127
)
(127
)
BALANCE, June 30, 2024
19,492,702
$
19
$
151,422
$
(134,134
)
$
17,307
Three months ended June 30,
2023
Common Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Total
Stockholders’
Equity
Shares
Amount
BALANCE, March 31, 2023
19,215,863
$
19
$
149,875
$
(132,972
)
$
16,922
Stock-based compensation
–
–
338
–
338
Issuance of shares for vested restricted
stock grants
60,777
–
–
–
–
Shares forfeited in exchange for
withholding taxes
(24,720
)
–
(54
)
—
(54
)
Net loss
–
–
–
(853
)
(853
)
BALANCE, June 30, 2023
19,251,920
$
19
$
150,159
$
(133,825
)
$
16,353
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF
STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED JUNE
30, 2024 AND 2023
(in thousands, except share amounts)
Six months ended June 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
–
–
600
–
600
Stock option exercises, net of cashless
exercises
4,875
–
–
–
—
Issuance of common stock for vested
restricted stock units and earned performance stock units
133,492
–
–
–
–
Shares forfeited in exchange for
withholding taxes
–
–
–
–
–
Net loss
–
–
–
(569
)
(569
)
BALANCE, June 30, 2024
19,492,702
$
19
$
151,422
$
(134,134
)
$
17,307
Six months ended June 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
–
–
980
–
980
Issuance of common stock for vested
restricted stock units and earned performance stock units
319,274
–
–
–
–
Shares forfeited in exchange for
withholding taxes
(24,720
)
–
(54
)
–
(54
)
Net loss
–
–
–
(2,240
)
(2,240
)
BALANCE, June 30, 2023
19,251,920
$
19
$
150,159
$
(133,825
)
$
16,353
INTELLICHECK, INC.
UNAUDITED CONDENSED STATEMENTS OF CASH
FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2024
AND 2023
Six months ended June 30,
(In thousands)
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(569
)
$
(2,240
)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation and amortization
145
139
Stock-based compensation
405
1,005
Allowance for credit losses
18
16
Change in accrued interest and accretion
of discount on short-term investments
—
(2
)
Changes in assets and liabilities:
Decrease (Increase) in accounts
receivable
1,371
(133
)
Decrease (Increase) in other current
assets and long-term assets
47
(178
)
(Decrease) Increase in accounts payable
and accrued expenses
(1,318
)
125
(Decrease) Increase in deferred
revenue
(411
)
412
Net cash used in operating activities
(312
)
(856
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(19
)
(31
)
Proceeds from maturity of short-term
investments
5,000
—
Software development costs
(1,389
)
—
Net cash provided by (used in) investing
activities
3,592
(31
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds of insurance financing
arrangement
—
49
Withholding taxes paid on RSU vesting
—
(54
)
Repayment of insurance financing
arrangements
—
(119
)
Net cash used in financing activities
—
(124
)
Net increase (decrease) in cash
3,280
(1,011
)
CASH, beginning of period
3,980
5,196
CASH, end of period
$
7,260
$
4,185
Supplemental disclosures of cash flow
information:
Cash paid for interest
$
—
$
2
Cash paid for income taxes
$
—
$
87
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, 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 June
30
Six Months Ended June
30
2024
2023
2024
2023
Net loss
$
(127
)
$
(853
)
$
(569
)
$
2,240
Reconciling items:
Non-restructuring severance expenses
—
417
—
417
Provision for income taxes
—
4
3
12
Interest and other income
(88
)
—
(157
)
(1
)
Sales tax accrual
—
76
—
147
Depreciation and amortization
73
69
145
139
Stock-based compensation including
liability classified awards
72
323
405
1,005
Adjusted EBITDA
$
(70
)
$
36
$
(173
)
$
(521
)
About Intellicheck
Intellicheck (Nasdaq: IDN) is an identity company that delivers
on-demand digital and physical identity validation solutions for
KYC, AML, fraud, and age verification needs. Intellicheck validates
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, 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/20240808901864/en/
Investor Relations: Gar Jackson (949) 873-2789 /
gjackson@intellicheck.com Media and Public Relations: Sharon
Schultz (302) 539-3747 / sschultz@intellicheck.com
Grafico Azioni Intellicheck (NASDAQ:IDN)
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Da Dic 2024 a Gen 2025
Grafico Azioni Intellicheck (NASDAQ:IDN)
Storico
Da Gen 2024 a Gen 2025