Intellicheck Announces Third Quarter 2024 Financial Results

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 [phone] / [e-mail] Media and Public Relations: Sharon Schultz [phone] / [e-mail]