Intellicheck Mobilisa Announces 2014 Fourth Quarter and Year-End Financial Results

Conference Call Scheduled for Tuesday, March 24, at 1:00 p.m. ET/10:00 a.m. PT

PORT TOWNSEND, Wash.--()--Intellicheck Mobilisa (NYSE MKT:IDN), a leader in ID verification and wireless technology, has released its financial results for the fourth quarter and full year ended December 31, 2014.

Revenue for the fourth quarter ended December 31, 2014, was $1.1 million, compared to $1.4 million in the same period of the previous year. In Q4 2014, the Company took a Goodwill impairment charge in the amount of $4.2 million. Adjusted EBITDA was ($875,000) for the fourth quarter of 2014 compared to ($330,000) for the fourth quarter of 2013. Net loss for the three months ended December 31, 2014 was ($6.0) million (including the Goodwill write-down of $4.2 million) or ($1.24) per diluted share compared to a net loss of ($600,000) or ($0.17) per share for the quarter ended December 31, 2013. Excluding the goodwill write-down, net loss for the three months would have been ($1.8) million or ($0.38) per diluted share.

For the full year ended December 31, 2014, revenue was $6.6 million compared with $7.3 million in the previous year. Adjusted EBITDA was ($2.1) million for full year 2014, compared with ($1.3) million for the prior year. Net loss for the full year including the Goodwill write-down taken was ($7.6) million or ($1.59) per diluted share compared to a net loss of ($2.4) million or ($0.70) per share in 2013. Excluding the goodwill write-down, net loss for the full year would have been ($3.4) million or ($0.72) per share. The Company’s backlog, which represents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $530,000 at December 31, 2014, compared to $381,000 at December 31, 2013.

Dr. William Roof, CEO of Intellicheck Mobilisa, stated, “The year 2014 was very much a transitional one for our Company. With new management taking the helm during the fourth quarter of the year, we had the opportunity to review the Company’s operations and implement a new strategic direction for the business. Specifically, we have been working on maximizing the efficiency of our resources, opening new markets with experts leading those charges, improving functional areas throughout our organization by enhancing our current processes and practices, and vigorously protecting our intellectual property that we have worked so hard to develop. We were also successful in raising additional capital to support our research and new product development, as well as attracting new shareholders to our Company whose investment philosophies are aligned with our long-term initiatives.”

Dr. Roof continued, “We strengthened our management team with the appointment of Bob Williamsen as our new Chief Revenue Officer, someone who brings years of experience in commercial technology sales, and many of the verticals we believe hold promise for our products. Additionally, the appointment to our Board of Directors of Bill Georges and Jack Davis, both of whom have law enforcement backgrounds, bring us more expertise in that area. We believe we have the team in place to supplement the Company’s growth trajectory.”

Q4 2014 and Recent Highlights:

  • Hired Bob Williamsen as our new Chief Revenue Officer. With a successful track record in commercial information technology sales and marketing, Bob is now leading our new business development initiatives.
  • Rebranded its products to create a stronger affinity with Intellicheck Mobilisa’s best-in-class identity solutions.
  • Strengthened sales team with hiring of Bob Sanfelippo as Vice President of Sales, Enterprise. Bob brings a strong background as a sales and business development executive who has been successful across several market verticals including retail, manufacturing, defense, consumer products, healthcare and information technology.
  • Signed a contract with Helzberg Diamonds, one of the most respected retail and online jewelry stores, to implement ID Check® at all of its 230 retail locations throughout the U.S.

Dr. Roof concluded, “We have implemented a number of changes during the past few months. We are well-capitalized, with a new team in place operating under new, efficient processes. We put into place new pricing models that we expect will increase our bottom line. We are enhancing our existing products and developing new products for new markets, with fundamental emphasis on our robust intellectual property portfolio. We are excited and optimistic about the future of Intellicheck Mobilisa and look forward to improving all aspects of our business each day.”

Conference Call Information

To listen to the conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037. The conference call will also be simultaneously webcast and can be accessed at: http://www.icmobile.com/about/investor-relations/presentations, and clicking on the link to the Webcast. Alternatively, the webcast can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=173743.

The webcast will be available for 14 days following the conference call.

About Intellicheck Mobilisa

Intellicheck Mobilisa is a leader in identity verification and validation systems, and in wireless broadband Internet backhaul design and implementation. The company holds 19 patents pertaining to identification technology, and its identity solutions support customers in the financial, retail, hospitality, national defense and law enforcement markets. The Company’s products read, authenticate and parse various identity documents including driver licenses, military identification cards and other government forms of identification containing magnetic stripe, barcode and smart chip information.

Intellicheck Mobilisa also excels in designing, installing and maintaining long-range, high-speed wireless broadband networks, many providing Internet service to rural or remote locations.

For more information on Intellicheck Mobilisa and ICMOBIL, please visit www.icmobile.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.

 

INTELLICHECK MOBILISA, INC.

 

 

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2014 and 2013

 

ASSETS

      2014         2013  
 
CURRENT ASSETS:
Cash and cash equivalents $ 2,966,350 $ 224,386
Accounts receivable, net of allowance of $78,724 and $0 792,072 1,041,519
Inventory 115,021 54,677
Other current assets   108,884     107,519  
Total current assets 3, 982,327 1,428,101
 
PROPERTY AND EQUIPMENT, net 346,915 369,095
GOODWILL 8,101,661 12,308,661
INTANGIBLE ASSETS, net 3,307,797 3,724,354
OTHER ASSETS   75,007     72,006  
 
Total assets $ 15,813 ,707     17,902,217  
 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 
CURRENT LIABILITIES:
Accounts payable $ 45,193 $ 478,588
Accrued expenses 915,809 701,928
Deferred revenue, current portion   1,141,069     967,912  
Total current liabilities 2,102,071 2,148,428
 
OTHER LIABILITIES
Deferred revenue, long-term portion 435,153 233,732
Deferred rent   128,446     163,753  
 
Total liabilities 2,665 ,670 2,545,913
 
 
 
STOCKHOLDERS’ EQUITY:
Common stock – $.001 par value; 40,000,000 shares authorized; 4,934,601 and
3,487,183 shares issued and outstanding as of 2014 and 2013, respectively 4,934 3,487
Additional paid-in capital 106,442,897 101,008,381
Accumulated deficit   (93,299,794 )   (85,655,564 )
Total stockholders’ equity   13,148,037     15,356,304  
 
Total liabilities and stockholders’ equity $ 15,813,707   $ 17,902,217  
 
       

INTELLICHECK MOBILISA, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

 
  2014     2013  
 
REVENUES $ 6,613,056 $ 7,298,537
COST OF REVENUES   (2,763,432 )   (2,772,984 )
Gross profit 3,849,624 4,525,553
 
OPERATING EXPENSES
Selling 1,374,004 1,096,486
 
General and administrative 4,090,642 3,796,735
 
Research and development   1,823,147     2,056,744  
Total operating expenses   7,287,793     6,949,965  
 
Goodwill impairment   4,207,000     -  
Loss from operations (7,645,169 ) (2,424,412 )
 
OTHER INCOME
Interest income 939 156
 
Net loss $ (7,644,230 ) $ (2,424,256 )
 
PER SHARE INFORMATION:
Net loss per common share
Basic $ (1.59 ) $ (0.70 )
Diluted $ ( 1.59 ) $ (0.70 )
 

 

Weighted average common shares used in computing per share amounts

Basic   4,801,059     3,487,183  
Diluted   4,801,059     3,487,183  
 
                   

INTELLICHECK MOBILISA, INC.

 

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2014

 
Additional
Common Stock Paid-in Accumulated
Shares Amount Capital Deficit Total
 
BALANCE, December 31, 2012 3,464,907 3,465 100,906,277 (83,231,308 ) 17,678,434
 
Stock based compensation expense (employees and directors) - - 19,053 - 19,053
Exercise of stock options 19,150 19 70,453 - 70,472
Issuance of common stock 2,500 3 12,598 - 12,601
Net loss -   -   -   (2,424,256 )   (2,424,256 )
 
BALANCE, December 31, 2013 3,486,557 $ 3,487 $ 101,008,381 $ (85,655,564 ) $ 15,356,304
 
Stock based compensation expense (employees and directors) 2,544 2 188,638 - 188,640
Exercise of stock options -
Issuance of common stock 1,445,500 1,445 5,245,878 - 5,247,323
Net loss

-

  -   -   (7,644,230 )   (7,644,230 )
 
BALANCE, December 31, 2014 4,934,601 $ 4,934 $ 106,442,897 $ (93,299,794 ) $ 13,148,037  
 
       

INTELLICHECK MOBILISA, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

 
 
  2014     2013  
CASH FLOWS FROM OPERATING ACTIVITIES:
 
Net loss $ (7,644,230 ) $ (2,424,256 )
Adjustments to reconcile net loss to net cash used in operating activities:
Non cash stock based compensation expense 188,640 31,653
Depreciation and amortization 1,157,709 1,068,408
Provision for doubtful accounts 78,724 -
Impairment of goodwill 4,207,000 -
Decrease (increase) in accounts receivable 170,724 (171,772 )
(Increase) decrease in inventory (60,344 ) 282,882
(Increase) in other current assets and other assets (4,365 ) (1,637 )
(Decrease) increase in accounts payable and accrued expenses (807,015 ) 376,413
Increase( decrease) in deferred revenue 374,578 (591,227 )
(Decrease) in deferred rent   (35,307 )   (21,587 )

Net cash used in operating activities

  (2,373,886 )   (1,451,123 )
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
Purchases of property and equipment   (131,473 )   (80,842 )
Net cash used in investing activities   (131,473 )   (80,842 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from the issuance of common stock 5,247,323

-

Net proceeds from issuance of common stock from exercise of stock options and warrants

  -     70,472  
 
Net cash provided by financing activities   5,247,323     70,472  
 
Net increase (decrease) in cash and cash equivalents 2,741,965 (1,461,493 )
 
CASH AND CASH EQUIVALENTS, beginning of year   224,386     1,685,879  
 
CASH AND CASH EQUIVALENTS, end of year $ 2,966,350   $ 224,386  
 
 

Non-cash investing

Non-compete covenant

$ 587,500 -

Contacts

Dian Griesel Int'l.
Investor Relations:
Cheryl Schneider, 212-825-3210
or
Media Relations:
Enrique Briz, 212-825-3210

Release Summary

Intellicheck Mobilisa releases its financial results for the fourth quarter and full year ended December 31, 2014.

Contacts

Dian Griesel Int'l.
Investor Relations:
Cheryl Schneider, 212-825-3210
or
Media Relations:
Enrique Briz, 212-825-3210