Intellicheck Announces Fourth Quarter and Full-Year 2023 Financial Results
Achieved Fourth Quarter Net Income of
SaaS Revenues Grew 18% Year Over Year
“We anticipate continued growth driven by our expectations from our pipeline and the number of deals anticipated to go live in Q2 and Q3. We believe that we are on the cusp of a number of sizeable revenue generators that will really move the needle in the back half of the year. These include the addition of new retailers with our long standing bank partners, global media companies, auto, title and now crypto currency, our latest vertical. Additionally, we have made important progress in strengthening our organization with the addition of a new CTO, a new leader for our Channel and Technology Alliances, and a new Vice President of Marketing. We remain committed to giving our clients the innovative tools that allow them to onboard more customers quickly and easily while fundamentally eliminating fraud and building value for our shareholders,” said
Gross profit as a percentage of revenues was 94.9% for the three months ended
Operating expenses for the three months ended
Net income for the three months ended
Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales tax accrual, depreciation, amortization, stock-based compensation expense and certain non-recurring charges) improved to
Full Year 2023 Results
Total revenue for the full year ended
Gross profit as a percentage of revenue was 92.7% for the year ended
Operating expenses for the year ended
Net loss for the year ended
As of
The financial results reported today do not consider any adjustments that may be required in connection with the completion of the Company’s audit 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 13743896 For callers outside the
|
|||||||
|
(Unaudited) |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands except share
|
||||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
3,980 |
|
|
$ |
5,196 |
|
Short-term investments |
|
5,000 |
|
|
|
4,880 |
|
Accounts receivable, net |
|
4,703 |
|
|
|
2,637 |
|
Other current assets |
|
692 |
|
|
|
608 |
|
Total current assets |
|
14,375 |
|
|
|
13,321 |
|
|
|
|
|
||||
PROPERTY AND EQUIPMENT, NET |
|
666 |
|
|
|
749 |
|
|
|
8,102 |
|
|
|
8,102 |
|
INTANGIBLE ASSETS, NET |
|
575 |
|
|
|
273 |
|
OTHER ASSETS |
|
90 |
|
|
|
8 |
|
|
|
|
|
||||
Total assets |
$ |
23,808 |
|
|
$ |
22,453 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
884 |
|
|
$ |
358 |
|
Accrued expenses |
|
3,245 |
|
|
|
3,156 |
|
Income taxes payable |
|
— |
|
|
|
90 |
|
Equity awards liability |
|
4 |
|
|
|
54 |
|
Liability for shares withheld |
|
190 |
|
|
|
221 |
|
Deferred revenue, current portion |
|
2,209 |
|
|
|
906 |
|
Total current liabilities |
|
6,532 |
|
|
|
4,785 |
|
|
|
|
|
||||
OTHER LIABILITIES |
|
|
|
||||
Deferred revenue, long-term portion |
|
— |
|
|
|
1 |
|
Total liabilities |
|
6,532 |
|
|
|
4,786 |
|
|
|
|
|
||||
|
|
|
|
||||
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
Preferred stock – |
|
— |
|
|
|
— |
|
Common stock – |
|
19 |
|
|
|
19 |
|
Additional paid-in capital |
|
150,822 |
|
|
|
149,233 |
|
Accumulated deficit |
|
(133,565 |
) |
|
|
(131,585 |
) |
Total stockholders’ equity |
|
17,276 |
|
|
|
17,667 |
|
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
23,808 |
|
|
$ |
22,453 |
|
FOR THE YEARS ENDED |
|||||||
|
(Unaudited) |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(in thousands except share and
|
||||||
REVENUES |
$ |
18,906 |
|
|
$ |
15,966 |
|
COST OF REVENUES |
|
(1,375 |
) |
|
|
(1,275 |
) |
Gross profit |
|
17,531 |
|
|
|
14,691 |
|
|
|
|
|
||||
OPERATING EXPENSES |
|
|
|
||||
Selling, general and administrative |
|
15,127 |
|
|
|
12,707 |
|
Research and development |
|
4,680 |
|
|
|
6,014 |
|
Total operating expenses |
|
19,807 |
|
|
|
18,721 |
|
|
|
|
|
||||
Loss from operations |
|
(2,276 |
) |
|
|
(4,030 |
) |
|
|
|
|
||||
OTHER INCOME (EXPENSE) |
|
|
|
||||
Interest and other income (expense) |
|
234 |
|
|
|
(5 |
) |
Total other income (expense) |
|
234 |
|
|
|
(5 |
) |
|
|
|
|
||||
Net loss before provision (benefit) for income taxes |
|
(2,042 |
) |
|
|
(4,035 |
) |
Provision (Benefit) for income taxes |
|
(62 |
) |
|
|
124 |
|
|
|
|
|
||||
Net loss |
$ |
(1,980 |
) |
|
$ |
(4,159 |
) |
|
|
|
|
||||
PER SHARE INFORMATION: |
|
|
|
||||
Loss per common share - |
|
|
|
||||
Basic/Diluted |
$ |
(0.10 |
) |
|
$ |
(0.22 |
) |
|
|
|
|
||||
Weighted average common shares used in computing per share amounts - |
|
|
|
||||
Basic/Diluted |
|
19,243,179 |
|
|
|
18,838,971 |
|
FOR THE YEARS ENDED (in thousands, except number of shares) |
|||||||||||||||||
|
Common Stock |
|
Additional
Capital |
|
Accumulated Deficit |
|
Total Stockholders’ Equity |
||||||||||
|
Shares |
|
Amount |
|
|
|
|||||||||||
BALANCE, |
18,660,369 |
|
|
$ |
19 |
|
$ |
146,455 |
|
|
$ |
(127,426 |
) |
|
$ |
19,048 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
— |
|
|
|
— |
|
|
2,778 |
|
|
|
— |
|
|
|
2,778 |
|
Issuance of shares for vested restricted stock grants |
296,997 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
— |
|
|
|
— |
|
|
— |
|
|
|
(4,159 |
) |
|
|
(4,159 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, |
18,957,366 |
|
|
$ |
19 |
|
$ |
149,233 |
|
|
$ |
(131,585 |
) |
|
$ |
17,667 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
— |
|
|
|
— |
|
|
1,646 |
|
|
|
— |
|
|
|
1,646 |
|
Issuance of common stock for vested restricted stock units and earned performance stock units |
421,689 |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Shares forfeited in exchange for withholding taxes |
(24,720 |
) |
|
|
— |
|
|
(57 |
) |
|
|
— |
|
|
|
(57 |
) |
Net loss |
— |
|
|
|
— |
|
|
— |
|
|
|
(1,980 |
) |
|
|
(1,980 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
BALANCE, |
19,354,335 |
|
|
$ |
19 |
|
$ |
150,822 |
|
|
$ |
(133,565 |
) |
|
$ |
17,276 |
|
FOR THE YEARS ENDED |
|||||||
|
(Unaudited) |
||||||
|
|
2023 |
|
|
|
2022 |
|
|
(In thousands) |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(1,980 |
) |
|
$ |
(4,159 |
) |
Adjustments to reconcile Net loss to net cash (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
282 |
|
|
|
285 |
|
Stock-based compensation |
|
1,596 |
|
|
|
2,455 |
|
Allowance for credit losses |
|
49 |
|
|
|
17 |
|
Change in accrued interest and accretion of discount on short-term investments |
|
(206 |
) |
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
||||
(Increase) in accounts receivable |
|
(2,115 |
) |
|
|
(462 |
) |
(Increase) decrease in other current assets |
|
(84 |
) |
|
|
34 |
|
(Increase) in other assets |
|
(82 |
) |
|
|
— |
|
Increase (decrease) in accounts payable and accrued expenses |
|
622 |
|
|
|
(260 |
) |
Increase (decrease) in deferred revenue |
|
1,302 |
|
|
|
(367 |
) |
(Decrease) in other current liabilities |
|
(31 |
) |
|
|
(1,023 |
) |
Net cash (used in) operating activities |
|
(647 |
) |
|
|
(3,480 |
) |
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchase of property and equipment |
|
(93 |
) |
|
|
(192 |
) |
Proceeds from maturity of short-term investments |
|
5,000 |
|
|
|
— |
|
Purchases of short-term investments |
|
(4,914 |
) |
|
|
(4,880 |
) |
Software development and other costs |
|
(407 |
) |
|
|
— |
|
Net cash (used in) investing activities |
|
(414 |
) |
|
|
(5,072 |
) |
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds of insurance financing arrangement |
|
49 |
|
|
|
319 |
|
Withholding taxes paid on RSU vesting |
|
(57 |
) |
|
|
— |
|
Repayment of insurance financing arrangement |
|
(147 |
) |
|
|
(222 |
) |
Net cash (used in) provided by financing activities |
|
(155 |
) |
|
|
97 |
|
|
|
|
|
||||
Net (decrease) in cash |
|
(1,216 |
) |
|
|
(8,455 |
) |
|
|
|
|
||||
CASH, beginning of year |
|
5,196 |
|
|
|
13,651 |
|
|
|
|
|
||||
CASH, end of year |
$ |
3,980 |
|
|
$ |
5,196 |
|
|
|
|
|
||||
Supplemental disclosures of cash flow information: |
|
|
|
||||
Cash paid for interest |
$ |
2 |
|
|
$ |
5 |
|
Cash paid for income taxes |
$ |
80 |
|
|
$ |
31 |
|
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, impairments of long-lived assets and goodwill, sales tax accrual, 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 impairments of long-lived assets and goodwill, sales tax accrual, 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, impairments of long-lived assets and goodwill, sales tax accrual, 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 entities.
|
(Unaudited) |
||||||||||||||
|
Three Months Ended
|
|
Years Ended |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) |
$ |
757 |
|
|
$ |
(869 |
) |
|
$ |
(1,980 |
) |
|
$ |
(4,159 |
) |
Reconciling items: |
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
(82 |
) |
|
|
124 |
|
|
|
(62 |
) |
|
|
124 |
|
Non-restructuring severance expenses |
|
- |
|
|
|
58 |
|
|
|
548 |
|
|
|
58 |
|
Sales tax accrual |
|
227 |
|
|
|
308 |
|
|
|
227 |
|
|
|
308 |
|
Interest and other expense (income) |
|
(53 |
) |
|
|
5 |
|
|
|
(234 |
) |
|
|
5 |
|
Depreciation and amortization |
|
71 |
|
|
|
76 |
|
|
|
282 |
|
|
|
285 |
|
Stock-based compensation expense including liability classified awards |
|
249 |
|
|
|
687 |
|
|
|
1,596 |
|
|
|
2,455 |
|
Adjusted EBITDA |
$ |
1,169 |
|
|
$ |
389 |
|
|
$ |
377 |
|
|
$ |
(924 |
) |
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
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