Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the fourth quarter and full year ended December 31, 2013.
Financial Highlights for the Fourth Quarter and Full Year 2013:
- Revenue for the quarter ended December 31, 2013 increased 159% to $1,366,000 from $528,000 in the fourth quarter 2012. For the year ending 2013, revenue was $7,299,000 compared with $8,803,000 in 2012.
- Adjusted EBITDA for the fourth quarter 2013 was ($330,000) compared to ($1,680,000) in the fourth quarter 2012. For the year 2013, adjusted EBITDA was ($1,324,000) compared with ($1,114,000) in 2012.
- Net loss for the quarter was ($600,000) or ($0.02) per share, compared with a net loss of ($1,955,000) or ($0.07) per share in the fourth quarter 2012. For the year, net loss was ($2,424,000) or ($0.09) per share, compared with a net loss of ($2,260,000) or ($0.08) per share in 2012.
Highlights for the Fourth Quarter 2013 and Subsequent Months:
Business Initiatives
- The Company successfully completed a secondary offering of its common stock in January 2014, raising approximately $3.6 million in net proceeds that are being used to fund its continued research and development initiatives to expand and improve its product line, and significantly increase its sales and marketing groups.
- Its $2 million line of credit with Silicon Valley Bank was renewed.
Product and Technology Initiatives
- Installed its IM2620h Prox-PACS readers, one of the most advanced ID readers in the world, at one of the nation’s most secure facilities.
- Launched the barZapp™ 2.0 mobile app for iPhones and Android.
- Launched test for its new “State Aware Software” ID scanning product at 400 locations of a major nationwide retail chain. This software facilitates compliance with state requirements and the appropriate use of ID data, helping nationwide retailers comply with regulations.
- With the launch of MexiScan ID Check, the Company now offers Mexican and U.S. clients the ability to authenticate Mexican IDs, expanding Intellicheck Mobilisa’s footprint to cover all of North America.
- The Company was issued two new patents, strengthening its intellectual property, bringing the total number of patents issued to 18.
Dr. Nelson Ludlow, President and CEO of Intellicheck Mobilisa, commented, “The past several months have been eventful ones for our company from a financial, corporate and business perspective, as we continued to pursue our objective of becoming the leading developer and distributor of document and age verification products. On the financial and business front, we successfully completed a secondary public offering of our common stock, which provided us approximately $3.6 million in net proceeds, most of which will go toward the marketing and sales of our software and technologies. That offering also helped us to expand our shareholder base. Following the completion of the offering, we added to our sales and marketing staff, and entered 2014 with a stronger, vertically aligned team to penetrate our core markets, specifically law enforcement as well as commercial businesses. We also renewed our $2 million line of credit with Silicon Valley Bank, and were pleased to receive their continuing commitment to our business.
“Over the past several months we have begun to roll out and implement our new cloud computing business model. We believe our new Software as a Service (SaaS) model will help ensure better customer service, be far less expensive to support, enable us to focus on higher-margin software sales and provide better financial controls and predictability to our business,” Dr. Ludlow added.
He concluded, “With what we believe is a growing need for identity verification software in both the commercial and law enforcement markets, we feel we offer one of the most reliable and affordable technologies to serve the needs of our growing customer base.”
Conference Call Information
The Company will hold an earnings conference call today at 11:00 am ET/8:00 am PT to discuss operating results. To listen to the conference call, please dial (877) 407-8037. For callers outside the U.S., please dial (201) 689-8037. For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The rebroadcast can be accessed by dialing (877) 660-6853 and (201) 612-7415 for international callers. The conference replay ID is 13576248. The conference call will also be simultaneously webcast, and can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=172288.
The webcast will be available for 14 days following the conference call.
About Intellicheck Mobilisa
Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; barZapp™, an ID-checking mobile app that allows a user’s smartphone to check an ID card. For more information on Intellicheck Mobilisa, please visit www.icmobil.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 adding back to net income (loss) 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 can compare its 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.
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 since it excludes interest income and expense, impairments of long lived assets and goodwill, 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 with 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. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule.
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
INTELLICHECK MOBILISA, INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2013 and 2012 | ||||||||||||
ASSETS | ||||||||||||
2013 | 2012 | |||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | $ | 224,386 | $ | 1,685,879 | ||||||||
| Accounts receivable, net of allowance of $0 and $1,613 | 1,041,519 | 869,747 | ||||||||||
| Inventory | 54,677 | 337,559 | ||||||||||
| Other current assets | 107,519 | 105,881 | ||||||||||
| Total current assets | 1,428,101 | 2,999,066 | ||||||||||
| PROPERTY AND EQUIPMENT, net | 369,095 | 449,438 | ||||||||||
| GOODWILL | 12,308,661 | 12,308,661 | ||||||||||
| INTANGIBLE ASSETS, net | 3,724,354 | 4,631,577 | ||||||||||
| OTHER ASSETS | 72,006 | 72,006 | ||||||||||
| Total assets | $ | 17,902,217 | $ | 20,460,748 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Accounts payable | $ | 478,588 | $ | 247,289 | ||||||||
| Accrued expenses | 701,928 | 556,814 | ||||||||||
| Deferred revenue, current portion | 967,912 | 1,450,923 | ||||||||||
| Total current liabilities | 2,148,428 | 2,255,026 | ||||||||||
| OTHER LIABILITIES | ||||||||||||
| Deferred revenues, long-term portion | 233,732 | 341,948 | ||||||||||
| Deferred rent | 163,753 | 185,339 | ||||||||||
| Total liabilities | 2,545,913 | 2,782,313 | ||||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||||||
| Common stock – $.001 par value; 40,000,000 shares authorized; 27,897,467 and | ||||||||||||
| 27,724,267 shares issued and outstanding as of 2013 and 2012 , respectively | 27,897 | 27,724 | ||||||||||
| Additional paid-in capital | 100,983,971 | 100,882,019 | ||||||||||
| Accumulated deficit | (85,655,564 | ) | (83,231,308 | ) | ||||||||
| Total stockholders’ equity | 15,356,304 | 17,678,435 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 17,902,217 | $ | 20,460,748 | ||||||||
INTELLICHECK MOBILISA, INC. | |||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 | |||||||||||||
2013 | 2012 | ||||||||||||
| REVENUES | $ | 7,298,537 | $ | 8,803,217 | |||||||||
| COST OF REVENUES | (2,772,984 | ) | (3,001,997 | ) | |||||||||
| Gross profit | 4,525,553 | 5,801,220 | |||||||||||
| OPERATING EXPENSES | |||||||||||||
| Selling | 1,096,486 | 1,613,819 | |||||||||||
| General and administrative | 3,796,735 | 4,209,385 | |||||||||||
| Research and development | 2,056,744 | 2,239,011 | |||||||||||
| Total operating expenses | 6,949,965 | 8,062,215 | |||||||||||
| Loss from operations | (2,424,412 | ) | (2,260,995 | ) | |||||||||
| OTHER INCOME | |||||||||||||
| Interest income | 156 | 909 | |||||||||||
| Net loss | $ | (2,424,256 | ) | $ | (2,260,086 | ) | |||||||
| PER SHARE INFORMATION: | |||||||||||||
| Net loss per common share | |||||||||||||
| Basic | $ | (0.09 | ) | $ | (0.08 | ) | |||||||
| Diluted | $ | (0.09 | ) | $ | (0.08 | ) | |||||||
| Weighted average common shares used in computing | |||||||||||||
| per share amounts | |||||||||||||
| Basic | 27,828,699 | 27,724,267 | |||||||||||
| Diluted | 27,828,699 | 27,724,267 | |||||||||||
INTELLICHECK MOBILISA, INC. | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2013 | ||||||||||||||||||||||
| Additional | ||||||||||||||||||||||
| Common Stock | Paid-in | Accumulated | ||||||||||||||||||||
Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||
| BALANCE, December 31, 2011 | 27,462,504 | $ | 27,462 | $ | 100,699,156 | $ | (80,971,222 | ) | $ | 19,755,396 | ||||||||||||
| Stock based compensation expense (employees and directors) | - | - | 52,677 | - | 52,677 | |||||||||||||||||
| Exercise of stock options | 261,763 | 262 | 130,186 | - | 130,448 | |||||||||||||||||
| Net loss | - | - | - | (2,260,086 | ) | (2,260,086 | ) | |||||||||||||||
| BALANCE, December 31, 2012 | 27,724,267 | 27,724 | 100,882,019 | (83,231,308 | ) | 17,678,435 | ||||||||||||||||
| Stock based compensation expense (employees and directors) | - | - | 19,053 | - | 19,053 | |||||||||||||||||
| Exercise of stock options | 153,200 | 153 | 70,319 | - | 70,472 | |||||||||||||||||
| Issuance of common stock | 20,000 | 20 | 12,580 | - | 12,600 | |||||||||||||||||
| Net loss | - | - | - | (2,424,256 | ) | (2,424,256 | ) | |||||||||||||||
| BALANCE, December 31, 2013 | 27,897,467 | $ | 27,897 | $ | 100,983,971 | $ | (85,655,564 | ) | $ | 15,356,304 | ||||||||||||
INTELLICHECK MOBILISA, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 | ||||||||||||
2013 | 2012 | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net loss | $ | (2,424,256 | ) | $ | (2,260,086 | ) | ||||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||
| Depreciation and amortization | 1,068,408 | 1,094,173 | ||||||||||
| Non cash stock based compensation expense | 31,653 | 52,677 | ||||||||||
| Provision for doubtful accounts | - | (3,271 | ) | |||||||||
| Changes in assets and liabilities: | ||||||||||||
| (Increase) decrease in accounts receivable | (171,772 | ) | 2,192,312 | |||||||||
| Decrease (increase) in inventory | 282,882 | (325,665 | ) | |||||||||
| (Increase) decrease in other current assets | (1,637 | ) | 2,888 | |||||||||
| Increase (decrease) in accounts payable and accrued expenses | 376,413 | (92,823 | ) | |||||||||
| (Decrease) in deferred revenue | (591,227 | ) | (305,200 | ) | ||||||||
| (Decrease) in deferred rent | (21,587 | ) | (9,420 | ) | ||||||||
| Net cash (used in) provided by operating activities | (1,451,123 | ) | 345,585 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Purchases of property and equipment | (80,842 | ) | (184,303 | ) | ||||||||
| Net cash (used in) investing activities | (80,842 | ) | (184,303 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Net proceeds from issuance of common stock from exercise of stock options | ||||||||||||
| and warrants | 70,472 | 130,448 | ||||||||||
| Net cash provided by financing activities | 70,472 | 130,448 | ||||||||||
| Net (decrease) increase in cash and cash equivalents | (1,461,493 | ) | 291,730 | |||||||||
| CASH AND CASH EQUIVALENTS, beginning of year | 1,685,879 | 1,394,148 | ||||||||||
| CASH AND CASH EQUIVALENTS, end of year | $ | 224,386 | $ | 1,685,878 | ||||||||
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Investor Relations:
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Schneider, 212-825-3210
or
Media Relations:
Enrique
Briz, 212-825-3210
