PORT TOWNSEND, Wash.--(BUSINESS WIRE)--Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a leader in identity authentication, verification and validation solutions, today announced its financial results for the quarter ended June 30, 2015.
Revenue for the second quarter ended June 30, 2015 increased 91.5% to $2,292,000, compared to $1,197,000 in the same period of the previous year. Adjusted EBITDA was ($809,000) for the second quarter of 2015 compared to ($952,000) for the second quarter of 2014. Net loss for the three months ended June 30, 2015 was ($1,214,000) million or ($0.12) per diluted share compared to a net loss of ($1,101,000) or ($0.22) per share for the quarter ended June 30, 2014.
The Company’s booked orders for the three months ending June 30, 2015 increased 28% to $2,909,000 compared to $2,267,000 for the same period in 2014.
“The current management team has revitalized and focused the product line, leading to greater customer traction and higher revenue from target markets. These efforts are driving new sales and building a sustainable sales pipeline, clear indicators of our capability to deliver increasingly high value solutions to identity authentication markets," commented Intellicheck’s CEO Dr. William Roof.
Dr. Roof said, “There were a number of important developments in Q2 2015. The Company has reasserted its leadership position with newly upgraded products optimized for mobile devices, while improving user interfaces, providing affordable and scalable SaaS solutions, and facilitating interoperability with standard and proprietary data sources. We have also added higher margin customized analytics. We are engaged in a company-wide re-branding and other strategic marketing programs that will enable us to reach our key markets efficiently and effectively as the backbone of a predictable sales model. Specifically, we recently launched both Law ID™ and Age ID™ and Intellicheck has been awarded new contracts in both the public and private sector including the California Military Department, the Army Corps of Engineers and the US Navy via a subcontract with TechFlow. We also recently signed a contract for a nationwide retail deployment with a prominent American telecommunications services company."
Dr. Roof concluded, "We remain focused on implementing a sustainable financial model that includes building a predictable and repeatable sales pipeline across our target markets with the goal of high margin, recurring revenues. With revitalized identity and security solutions, an expanded patent portfolio, and building new market awareness, we believe our foundational pillars are in place for profitable future growth. We will continue to vigorously pursue opportunities to drive demand, increase revenues and grow shareholder value.”
The financial results reported today do not take into account any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until Intellicheck Mobilisa files its Form 10-Q for the fiscal quarter ended June 30, 2015.
| INTELLICHECK MOBILISA, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| ASSETS | ||||||||
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (Unaudited) | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 7,903,548 | $ | 2,966,350 | ||||
|
Accounts receivable, net of allowance of $49,613 and $78,724 as of June 30, 2015 and December 31, 2014, respectively |
1,705,593 | 792,072 | ||||||
| Inventory | 135,115 | 115,021 | ||||||
| Other current assets | 223,958 | 108,884 | ||||||
| Total current assets | 9,968,214 | 3,982,327 | ||||||
| PROPERTY AND EQUIPMENT, net | 383,006 | 346,915 | ||||||
| GOODWILL | 8,101,661 | 8,101,661 | ||||||
| INTANGIBLE ASSETS, net | 2,928,590 | 3,307,797 | ||||||
| OTHER ASSETS | 62,800 | 75,007 | ||||||
| Total assets | $ | 21,444,271 | $ | 15,813,707 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 816,632 | $ | 45,193 | ||||
| Accrued expenses | 683,713 | 915,809 | ||||||
| Deferred revenue, current portion | 923,075 | 1,141,069 | ||||||
| Total current liabilities | 2,423,420 | 2,102,071 | ||||||
| OTHER LIABILITIES | ||||||||
| Deferred revenue, long-term portion | 348,567 | 435,153 | ||||||
| Deferred rent | 115,407 | 128,446 | ||||||
| Note payable, net of current portion | 23,304 | - | ||||||
| Total liabilities | 2,910,698 | 2,665,670 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
|
Common stock - $.001 par value; 40,000,000 shares authorized; 9,836,262 and 4,934,601 shares issued and outstanding, respectively |
9,836 | 4,934 | ||||||
| Additional paid-in capital | 114,339,617 | 106,442,897 | ||||||
| Accumulated deficit | (95,815,880 | ) | (93,299,794 | ) | ||||
| Total stockholders’ equity | 18,533,573 | 13,148,037 | ||||||
| Total liabilities and stockholders’ equity | $ | 21,444,271 | $ | 15,813,707 | ||||
| INTELLICHECK MOBILISA, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited) |
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|
Three Months Ended June 30, |
Six Months Ended June 30, |
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|
2015 |
2014 |
2015 |
2014 |
|||||||||||||
| REVENUES | $ | 2,291,570 | $ | 1,197,041 | $ | 3,278,697 | $ | 2,289,090 | ||||||||
| COST OF REVENUES | (1,250,746 | ) | (447,812 | ) | (1,642,908 | ) | (810,458 | ) | ||||||||
| Gross profit | 1,040,824 | 749,229 | 1,635,789 | 1,478,632 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Selling | 308,197 | 410,116 | 541,550 | 708,171 | ||||||||||||
| General and administrative | 1,270,058 | 996,731 | 2,462,995 | 1,907,384 | ||||||||||||
| Research and development | 680,815 | 443,831 | 1,176,753 | 874,354 | ||||||||||||
| Total operating expenses | 2,259,070 | 1,850,678 | 4,181,298 | 3,489,909 | ||||||||||||
| Loss from operations | (1,218,246 | ) | (1,101,449 | ) | (2,545,509 | ) | (2,011,277 | ) | ||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest and other income | 4,829 | 382 | 32,158 | 605 | ||||||||||||
| Interest expense | (556 | ) | 0 | (2,735 | ) | (79 | ) | |||||||||
| Net loss | $ | (1,213,973 | ) | $ | (1,101,067 | ) | $ | (2,516,086 | ) | $ | (2,010,751 | ) | ||||
| PER SHARE INFORMATION | ||||||||||||||||
| Loss per common share - | ||||||||||||||||
| Basic | $ | (0.12 | ) | $ | (0.22 | ) | $ | (0.27 | ) | $ | (0.43 | ) | ||||
| Diluted | $ | (0.12 | ) | $ | (0.22 | ) | $ | (0.27 | ) | $ | (0.43 | ) | ||||
|
Weighted average common shares used in computing per share amounts - |
||||||||||||||||
| Basic | 9,835,927 | 4,900,330 | 9,448,777 | 4,667,255 | ||||||||||||
| Diluted | 9,835,927 | 4,900,330 | 9,448,777 | 4,667,255 | ||||||||||||
| INTELLICHECK MOBILISA, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY | |||||||||||||||||
|
For the six months ended June 30, 2015 |
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|
(Unaudited) |
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| Additional | |||||||||||||||||
|
Common Stock |
Paid-in | Accumulated | |||||||||||||||
|
Shares |
Amount |
Capital |
Deficit |
Total |
|||||||||||||
| BALANCE, January 1, 2015 | 4,934,601 | $ | 4,934 | $ | 106,442,897 | $ | (93,299,794 | ) | $ | 13,148,037 | |||||||
| Stock-based compensation expense | - | - | 267,408 | - | 267,408 | ||||||||||||
|
Issuance of common stock, net of costs |
4,857,143 | 4,857 | 7,625,900 | - | 7,630,757 | ||||||||||||
| Exercise of stock options | 313 | 1 | 3,456 | - | 3,457 | ||||||||||||
| Vesting of restricted stock | 44,205 | 44 | (44 | ) | - | - | |||||||||||
| Net loss | - | - | - | (2,516,086 | ) | (2,516,086 | ) | ||||||||||
| BALANCE, June 30, 2015 | 9,836,262 | $ | 9,836 | $ | 114,339,617 | $ | (95,815,880 | ) | $ | 18,533,573 | |||||||
|
INTELLICHECK MOBILISA, INC. |
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
|
(Unaudited) |
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|
Six Months Ended June 30, |
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|
2015 |
2014 |
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| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (2,516,086 | ) | $ | (2,010,751 | ) | ||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
| Depreciation and amortization | 571,023 | 343,794 | ||||||
| Noncash stock-based compensation expense | 267,408 | 4,581 | ||||||
| Deferred rent | (13,039 | ) | (23,731 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| (Increase) Decrease in accounts receivable | (913,521 | ) | 369,713 | |||||
| (Increase) in inventory | (20,094 | ) | (34,924 | ) | ||||
| (Increase) Decrease in other current assets | (112,595 | ) | 2,166 | |||||
| Decrease in other assets | 12,207 | - | ||||||
| Increase (Decrease) in accounts payable, accrued expenses | 534,033 | (421,451 | ) | |||||
| (Decrease) Increase in deferred revenue | (304,580 | ) | 127,840 | |||||
| Net cash used in operating activities | (2,495,244 | ) | (1,642,763 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of patents | (125,000 | ) | - | |||||
| Purchases of property and equipment | (71,828 | ) | (63,170 | ) | ||||
| Net cash used in investing activities | (196,828 | ) | (63,170 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net proceeds from issuance of common stock | 7,630,757 | 5,247,324 | ||||||
|
Net proceeds from issuance of common stock from exercise of stock options |
977 | - | ||||||
| Payments on note payable | (2,464 | ) | - | |||||
| Net cash provided by financing activities | 7,629,270 | 5,247,324 | ||||||
| Net increase in cash and cash equivalents | 4,937,198 | 3,541,391 | ||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 2,966,350 | 224,386 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 7,903,548 | $ | 3,765,777 | ||||
| Supplemental disclosure of noncash investing and financing activities: | ||||||||
| Financing of property and equipment | $ | 31,078 | $ | - | ||||
Earnings Conference Call Information
The Company will hold an earnings conference call today, August 14, 2015, at 1:00 p.m. EDT/10:00 a.m. PDT 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. 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=174220. The webcast will be available for 14 days following the conference call.
About Intellicheck Mobilisa
Intellicheck Mobilisa is a leader in identity authentication, verification and validation solutions. The Company holds 20 patents including many pertaining to identification technology. Its identity solutions support customers in the financial, retail, law enforcement, national defense and hospitality markets. The Company’s products scan, authenticate and analyze components of identity documents including driver licenses, military identification cards and other government forms of identification containing magnetic stripe, barcode and smart chip information. For more information on Intellicheck Mobilisa and ICMOBIL, please visit www.icmobile.com.
Safe Harbor Statement
Statements in this news release about Intellicheck Mobilisa’s future expectations, including: the advantages of our products, future demand for Intellicheck Mobilisa’s existing and future products, whether revenue and other financial metrics will improve in future periods, whether Intellicheck Mobilisa 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, 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”). This statement is included for the express purpose of availing Intellicheck Mobilisa, 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 Intellicheck Mobilisa’s products, changing levels of demand for Intellicheck Mobilisa’s current and future products, Intellicheck Mobilisa’s ability to reduce or maintain expenses while increasing sales, customer results achieved using our products in both the short and long term, success of future research and development activities, Intellicheck Mobilisa’s ability to successfully manufacture, market and sell its products, Intellicheck Mobilisa’s ability to manufacture its products in sufficient quantities to meet demand within required delivery time periods while meeting its quality control standards, any delays or difficulties in the Company’s supply chain, the success of the Company’s sales and marketing efforts coupled with the typically long sales and implementation cycle for its products, Intellicheck Mobilisa’s ability to enforce its intellectual property rights, changes in laws and regulations applicable to the Company’s products, the Company’s 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, and other risks detailed from time to time in Intellicheck Mobilisa’s reports filed 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.
