Intellicheck Announces Third Quarter 2022 Financials

Record SaaS Revenue Grew 22% to $4 Million

Company Achieved Adjusted EBITDA Positive Results

MELVILLE, NY – November 14, 2022 - Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the third quarter ended September 30, 2022. Total revenue for the third quarter endedSeptember 30, 2022, that had negligible non-core hardware sales compared to the prior year that had a significant one-time hardware sale, were $4,012,000 compared to $4,831,000 in the same period of2021. The Company’s core quarter-over-quarter SaaS revenue grew 22% and totaled a record $3,970,000 compared to $3,245,000 in the same period of 2021.

“New products and use cases, including expanded digital applications, and the growth of our customer base continues to drive increased revenues and transaction volume. We are proud of our success in providing customers and partners with the leading-edge technology and frictionless customer experience that delivers solutions to the challenges of physical and digital identity validation with near perfect certainty. We believe these important strides are just the beginning as we remain focused on providing our clients with best-in-class, adaptable technology solutions. We are setting the stage for what we believe will be even greater growth and innovation in the future,” said Intellicheck CEO Bryan Lewis.

Gross profit as a percentage of revenues was 91% for the three months ended September 30, 2022 compared to 69% in the same period in 2021. The increase in gross profit percentage was driven by significantly lower equipment revenues in the current period versus the prior year.

Operating expenses for the three months ended September 30, 2022, which consist of selling, general and administrative expenses, marketing, and research and development expenses were $4,378,000 for the third quarter of 2022 compared to $4,346,000 for the same period of 2021. This increase was primarily driven by higher recruiting, sales and marketing expenses and higher advertising spend versus the prior year. Included within operating expenses for the third quarters of 2022 and 2021 were $729,000 and $712,000, respectively, of non-cash equity compensation expense.

Net loss for the three months ended September 30, 2022 was ($724,000) or ($0.04) per diluted share compared to a Net loss of ($1,026,000) or ($0.06) per diluted share for the same period in 2021.

Adjusted EBITDA (earnings before gains on debt forgiveness, other income, income taxes, depreciation, amortization, and equity compensation expense) was $75,000 for the third quarter of 2022 as compared to ($272,000) for the same period of 2021. A reconciliation table of adjusted EBITDA to net loss is provided in this release.

As of September 30, 2022, Cash totaled $11.8 million, and stockholders’ equity totaled $18.3 million.

The 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 Intellicheck files its Form 10-Q for the three months ended September 30, 2022.

Conference Call Information

The Company will hold an earnings conference call on November 14 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 13726737. For callers outside the U.S., please dial 201-612-7415 and use conference identification number 13726737. The replay will be available beginning approximately two hours after the completion of the live event and will remain available until November 21, 2022.