Intellicheck Announces Fourth Quarter and Full-Year 2018 Financials

MELVILLE, NY – March 21, 2019 -- Intellicheck, Inc. (NYSE American: IDN), an industry leader in identification authentication solutions, today announced its financial results for the fourth quarter and full- year ended December 31, 2018.

Revenue for the fourth quarter ended December 31, 2018 grew 37% to $1,330,393 versus $967,612 in the prior year comparable period. SaaS revenue in the fourth quarter grew 45% and totaled $826,000 versus $569,000 in the prior year comparable period. Gross profit as a percentage of revenues improved to 93.1% for the three months ended December 31, 2018 versus 89.4% in the prior year comparable period.

Intellicheck CEO Bryan Lewis said adoption of the company’s leading identity authentication technology solutions is strong and continues to grow. “We achieved significant milestones in 2018 and I am very pleased with the advances we have made. We are working with four banks and credit card issuers right now in addition to some 16 retailers of all sizes in various stages of product adoption. These merchants represent thousands of retail locations in which Retail ID will be used when fully rolled out. We are also in pilot with our latest new bank for its own credit cards and its retail bank branches. This as we continue to see growing adoption of Age ID at a time when there has been noteworthy market attention to issues surrounding underage access to vaping, cannabis and alcohol products,” said Intellicheck CEO Bryan Lewis.

“Together, we believe that our suite of identity authentication products are demonstrating their value and effectiveness in meeting multiple market needs. As we focus on our strategic objectives for 2019, we anticipate that as long as we continue to execute on the opportunities before us, we believe it will be a banner year,” Lewis concluded.

The net loss for the three months ended December 31, 2018 was ($664,025) or ($0.04) per diluted share versus ($2,910,350) or ($0.19) per diluted share in the comparable prior year period. The prior year loss includes a $500,000 expense attributable to the employment contract of the former CEO. Additionally, during the fourth quarter of 2017 the Company had an impairment charge on intangible assets of $1,375,422 for the year ended December 31, 2017. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and certain non- recurring charges that includes the prior year impairment charge) was a loss of ($632,674) for the fourth quarter of 2018 versus a loss of ($1,327,603) in the prior year comparable period. A reconciliation of adjusted EBITDA to net loss is provided elsewhere in this release.

Revenue for the full year ended December 31, 2018 was $4,433,454 versus $3,598,296 in the prior year comparable period. Gross profit as a percentage of revenue improved to 91.3% for the year ended December 31, 2018 versus 85.5% in the prior year comparable period.

The net loss for the fiscal year ended December 31, 2018 was ($3,963,576) or ($0.26) per diluted share versus a net loss of ($6,020,505) or (0.48) per diluted share that includes the $500,000 expense attributable to the employment contract of the former CEO and the $1,375,422 impairment charge. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and certain non-recurring charges that includes the prior year impairment charge) improved by $0.2 million to a loss of ($3,661,244) for fiscal 2018 versus a loss of ($3,856,894) for fiscal 2017. A reconciliation of adjusted EBITDA to net loss is provided elsewhere in this release.

Cash at the end of fiscal 2018 totaled $4.4 million versus $8.0 million in the prior year comparable period. Stockholders’ equity totaled $12.9 million at the end of the 2018 fiscal year versus $16.0 million at the end of the comparable prior year period.

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 files its Form 10-K for the fiscal year ended December 31, 2018.

Conference Call Information:

The Company will hold an earnings conference call today, March 21, 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 13688253. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13688253. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until April 4, 2019.