Intellicheck Announces Second Quarter 2024 Financial Results
Continued Operating Expense and Net Income Improvements
“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
Gross profit as a percentage of revenues was 90.5%, in line with expectations, for the three months ended
Operating expenses for the three months ended
Net loss for the three months ended
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
As of
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
Conference Call Information
The Company will hold an earnings conference call on
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
|
|||||||
UNAUDITED CONDENSED BALANCE SHEETS
(in thousands, except share and per share amounts) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
7,260 |
|
|
$ |
3,980 |
|
Short-term investments |
|
— |
|
|
|
5,000 |
|
Accounts receivable, net of allowance of |
|
3,315 |
|
|
|
4,703 |
|
Other current assets |
|
645 |
|
|
|
692 |
|
Total current assets |
|
11,220 |
|
|
|
14,375 |
|
|
|
|
|
||||
PROPERTY AND EQUIPMENT, NET |
|
592 |
|
|
|
666 |
|
|
|
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 - |
|
— |
|
|
|
— |
|
Common stock -
and 19,354,335 shares issued and outstanding at |
|
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 |
|
|
|||||||||||||||
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED (in thousands, except share and per share amounts) |
|||||||||||||||
|
Three months ended |
|
Six months ended |
||||||||||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
UNAUDITED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED (in thousands, except share amounts) |
|||||||||||||||||
|
Three months ended |
||||||||||||||||
|
Common Stock |
|
Additional Paid-in Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||||
|
Shares |
|
Amount |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, |
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, |
19,492,702 |
|
$ |
19 |
|
$ |
151,422 |
|
$ |
(134,134 |
) |
|
$ |
17,307 |
|
|
Three months ended |
||||||||||||||||
|
Common Stock |
|
Additional Paid-in Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||||
|
Shares |
|
Amount |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, |
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, |
19,251,920 |
|
|
$ |
19 |
|
$ |
150,159 |
|
|
$ |
(133,825 |
) |
|
$ |
16,353 |
|
|
|||||||||||||||||
UNAUDITED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED (in thousands, except share amounts) |
|||||||||||||||||
|
Six months ended |
||||||||||||||||
|
Common Stock |
|
Additional Paid-in Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||||
|
Shares |
|
Amount |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, |
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, |
19,492,702 |
|
$ |
19 |
|
$ |
151,422 |
|
$ |
(134,134 |
) |
|
$ |
17,307 |
|
|
Six months ended |
||||||||||||||||
|
Common Stock |
|
Additional Paid-in Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||||
|
Shares |
|
Amount |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, |
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, |
19,251,920 |
|
|
$ |
19 |
|
$ |
150,159 |
|
|
$ |
(133,825 |
) |
|
$ |
16,353 |
|
|
|||||||
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED |
|||||||
|
Six months ended |
||||||
|
(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 |
|
Six Months Ended |
||||||||||||
|
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
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808901864/en/
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