Intellicheck Mobilisa Announces 2014 Third Quarter Financial Results

Conference Call Scheduled for Tuesday, November 4th, at 2:00 p.m. ET/11:00 a.m. PT

PORT TOWNSEND, Wash.--(BUSINESS WIRE)--Intellicheck Mobilisa (NYSE MKT: IDN), a leader in ID Verification and Wireless Technology, has released its financial results for the third quarter ended September 30, 2014.

Revenues for the quarter ended September 30, 2014, increased 25% to $3.2 million compared to $2.6 million in the same period of the previous year. Net Income for the three months ended September 30, 2014 was $328,000 or $0.07 per diluted share compared to a net income of $16,000 or $0.00 per diluted share for the three months ended September 30, 2013. Adjusted EBITDA was $444,000 for the third quarter of 2014 compared to $287,000 for the third quarter of 2013. A reconciliation of GAAP net income to adjusted EBITDA is provided below. The Company’s backlog, which represents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $710,000 at September 30, 2014, compared to $411,000 at September 30, 2013.

Dr. William Roof, CEO of Intellicheck Mobilisa, stated, “I am thrilled with our Q3 results and with the addition of Bill Georges and Jack Davis to our Board of Directors. Both of these gentlemen have strong law enforcement backgrounds and are committed to helping the company provide our Fugitive Finder product to law enforcement agencies nationwide. I look forward to serving our shareholders, our employees and their families, as well as to speaking with investors during our conference call later today.”

Q3 2014 and Recent Highlights

• Sales, Net Income, EBITDA, Backlog and Bookings all up for the Quarter
• Hired a COO as of 11 August 2014
• CEO (Nelson Ludlow) and SVP (Bonnie Ludlow) retired on 30 September 2014
• COO transitioned to CEO on 1 October 2014
• Added 2 new Board Members with strong law enforcement backgrounds

Conference Call Information

IDN will host a conference call for members of the investment community at the time referenced at the beginning of this release. Interested parties should dial [phone] approximately 10 minutes before the scheduled beginning. For callers outside the U.S., please dial [phone]. A webcast is available here: http://www.investorcalendar.com/IC/CEPage.asp?ID=173295

For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The recording can be accessed by dialing [phone] and [phone] for international callers. The conference replay ID is 13591911. After the 48-hour window, please visit the Investor Relations portion of our website at www.icmobil.com for rebroadcast.

About Intellicheck Mobilisa

Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; and Aegeus, a wireless security buoy system for the government, military and oil industry. For more information on Intellicheck Mobilisa, please visit www.icmobil.com. For more news and information on ICMOBIL, please visit www.icmobil.com.

Safe Harbor Statement

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as “will,” “believe,” “expect,” “anticipate,” “encouraged,” and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company’s management identify forward-looking statements. Actual results may differ materially from the information presented here. Additional information concerning forward-looking statements is contained under the heading of risk factors listed from time to time in the company’s filings with the SEC. We do not assume any obligation to update the forward-looking information.

Adjusted EBITDA

Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by starting with net income (loss) and adding back interest, 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 Intellicheck Mobilisa 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 the Company's operations and compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures that management uses to monitor and evaluate financial and operating results.

Intellicheck Mobilisa considers Adjusted EBITDA to be an important indicator of the Company's operational strength and performance of its business and a useful measure of the Company's historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA, because it excludes interest income and expense, impairments of long-lived assets and goodwill, and stock based compensation expense, all of which impact the Company's profitability, as well as depreciation and amortization related to the use of long term assets, which benefit multiple periods. Intellicheck Mobilisa believes that these limitations are compensated by providing Adjusted EBITDA only as a supplement to 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 the Company may not be comparable with similarly named measures provided by other entities. A reconciliation of Adjusted EBITDA to GAAP net income (loss) is included in the enclosed schedule.

INTELLICHECK MOBILISA, INC. CONSOLIDATED BALANCE SHEETS
ASSETS
	September 30,			December 31,
		2014			2013
	(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	3,066,968		$	224,386
Accounts receivable, net of allowance of $0 as of
September 30, 2014, and December 31, 2013		2,622,301			1,041,519
Inventory		115,021			54,677
Other current assets		90,796			107,519
Total current assets		5,895,086			1,428,101
PROPERTY AND EQUIPMENT, net		348,919			369,095
GOODWILL		12,308,661			12,308,661
INTANGIBLE ASSETS, net		3,972,812			3,724,354
OTHER ASSETS		72,006			72,006
Total assets	$	22,597,484		$	17,902,217
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	637,492		$	478,588
Accrued expenses		637,898			701,928
Deferred revenue, current portion		1,173,130			967,912
Other current liabilities		505,000			-
Total current liabilities		2,953,520			2,148,428
OTHER LIABILITIES
Deferred revenue, long-term portion		495,614			233,732
Deferred rent		134,965			163,753
Other long-term liabilities		82,500			0
Total liabilities		3,666,599			2,545,913
STOCKHOLDERS’ EQUITY:
Common stock - $.001 par value; 40,000,000 shares authorized;
4,932,057 and 3,486,557 shares issued and outstanding, respectively		4,932			3,487
Additional paid-in capital		106,264,525			101,008,381
Accumulated deficit		(87,338,572	)		(85,655,564	)
Total stockholders’ equity		18,930,885			15,356,304
Total liabilities and stockholders’ equity	$	22,597,484		$	17,902,217

INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2014			2013			2014			2013
REVENUES	$	3,218,344		$	2,578,863		$	5,507,434		$	5,932,239
COST OF REVENUES		(1,202,760	)		(797,488	)		(2,013,218	)		(2,295,871	)
Gross profit		2,015,584			1,781,375			3,494,216			3,636,368
OPERATING EXPENSES
Selling		398,035			257,000			1,106,206			793,908
General and administrative		836,841			1,035,941			2,744,225			3,074,299
Research and development		453,022			472,711			1,327,376			1,592,056
Total operating expenses		1,687,898			1,765,652			5,177,807			5,460,263
Income (loss) from operations		327,686			15,723			(1,683,591	)		(1,823,895	)
OTHER INCOME (EXPENSE)
Interest income		7			73			661			88
Interest expense		-			-			(78	)		-
Other income (expense)		50			-			-			-
Net income (loss)	$	327,743		$	15,796		$	(1,683,008	)	$	(1,823,807	)
PER SHARE INFORMATION
Income (loss) per common share -
Basic	$	0.07		$	0.00		$	( 0.35	)	$	(0.53	)
Diluted	$	0.07		$	0.00		$	( 0.35	)	$	(0.53	)
Weighted average common shares used
in computing per share amounts -
Basic		4,932,057			3,474,449			4,756,703			3,471,477
Diluted		4,945,807			3,480,170			4,756,703			3,471,477

INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY For the nine months ended September 30, 2014 (Unaudited)
				Additional
	Common Stock			Paid-in		Accumulated
	Shares	Amount		Capital		Deficit			Total
BALANCE, January 1, 2014	3,486,557	$	3,487	$	101,008,381	$	(85,655,564	)	$	15,356,304
Stock option compensation					10,266					10,266
Issuance of common stock	1,445,500		1,445		5,245,878					5,247,323
Net loss	-		-		-		(1,683,008	)		(1,683,008	)
BALANCE, September 30, 2014	4,932,057	$	4,932	$	106,264,525	$	(87,338,572	)	$	18,930,885

INTELLICHECK MOBILISA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Nine Months Ended September 30,
		2014		2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(1,683,008)	$	(1,823,807)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Depreciation and amortization		454,971		802,402
Noncash stock-based compensation expense		10,266		27,958
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable		(1,580,782)		(712,613)
Decrease (Increase) in inventory		(60,344)		283,284
(Decrease)Increase in other current assets		16,723		4,430
(Decrease) Increase in accounts payable, accrued expenses		94,874		835,518
(Decrease)Increase in deferred revenue		467,100		(442,310)
(Decrease) Increase in deferred rent		(28,788)		(14,690)
Net cash provided by (used in) operating activities	$	(2,308,988)	$	(1,039,828)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(95,753)		(73,106)
Net cash used in investing activities	$	(95,753)	$	(73,106)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock from exercise of stock options		5,247,323		70,472
Net cash provided by financing activities		5,247,323		70,472
Net increase in cash and cash equivalents	$	2,842,582	$	(1,042,462)
CASH AND CASH EQUIVALENTS, beginning of period		224,386		1,685,879
CASH AND CASH EQUIVALENTS, end of period	$	3,066,968	$	643,417
Supplemental disclosure of noncash investing activities:	$	587,500	$	-
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