News Column

Intellicheck Mobilisa Reports First Quarter 2014 Financial Results

May 13, 2014

Conference Call Scheduled for Today, May 13 at 1:00 PM ET, 10:00 AM PT

PORT TOWNSEND, Wash.--(BUSINESS WIRE)-- Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the first quarter ended March 31, 2014.

Financial Highlights for the First Quarter:

  • Revenue for the quarter ended March 31, 2014 was $1.1 million compared with $1.6 million in the year-ago first quarter.
  • Adjusted EBITDA for the first quarter 2014 was ($710,000) compared to ($646,000) in the first quarter 2013.
  • Net loss for the quarter was ($910,000) or ($0.03) per share, compared with a net loss of ($921,000) or ($0.03) per share in the first quarter 2013. Per share figures are based on 35.5 million shares outstanding at the end of the first quarter 2014 and 27.7 million shares outstanding at the end of the first quarter 2013.
  • Bookings for the quarter improved 18% over last year’s first quarter.

    Highlights for the First Quarter 2014 and Subsequent Months:

    Business Initiatives

  • Successfully raised approximately $6.1 million in gross proceeds following the completion of a second public offering of its common stock on January 8, 2014 and April 3, 2014 with Aegis Capital Corp. as the underwriter.
  • Appointed a new Director of Sales and a new Director of Marketing in late 2013.
  • Restructured the sales team into vertical markets of Retail/Department Stores and Clothing, Retail/Grocery and Pharmacy, Financial and Banking, Telecom, Hotel/Hospitality, Rental Car, Law Enforcement, TWIC/Seaports, Government/Military, and Age-Related Products.
  • Nearly tripled the size of its sales team.

    Product and Technology Initiatives

  • Received 18th patent protecting company technology that provides security alerts while scanning ID cards that adapts to varying threat levels.
  • Received 19th patent protecting company technology that compares fields between two ID cards.
  • Awarded an approximately $400K contract to improve security at a U.S. Army installation, upgrading its Defense ID system by adding high-speed wireless links and the ability to provide the FBI’s National Crime Information Center background checks of the scanned IDs.
  • Awarded an approximately $200K contract by a major East Coast grocery store chain followed by an additional $100K of ID scanning software.
  • Launched MexiScan™, its Mexican ID product that uses the Company’s patented ID reading software to authenticate Mexican driver’s licenses and IDs.
  • Launched Fugitive Finder law enforcement app for iPhone available to law enforcement customers through the Apple App Store as a Business to Business Application. Law enforcement customers can use the app to scans an ID and conduct an FBI check.
  • Texas-based restaurant chain purchased barZapp™ age-verification product for their 16 locations.

    Dr. Nelson Ludlow, President and CEO of Intellicheck Mobilisa, commented, “We started the year by executing our plan to grow the Sales Team. We raised new capital to specifically support our sales and marketing efforts. We hired two new Directors for Sales and Marketing in late 2013, organized the sales team into ten vertical markets in January, and nearly tripled the size of the sales team.

    “We launched two new key products: MexiScan™, ID scanning for Mexican driver’s licenses and IDs, and Fugitive Finder, a law enforcement tool to scan an ID with an Apple iPhone and conduct a law enforcement check. With time this quarter spent on product development, we are extremely excited about our recently announced launch of the Fugitive Finder app for smartphones, available through the Apple App Store for credentialed law enforcement officers. Based upon the underlying technology of our existing Fugitive Finder product, we believe this new app will have a positive impact on making sure that law enforcement officials have quick and easy access to databases in the field, whether they are patrolling on foot, in their car or on horseback or motorcycle.

    He concluded, “The company is now well funded, and we are building the sales team necessary to grow revenue. As we stated before, our business plan expects to see initial results of the increased sales staff in Q3 and Q4 of 2014. We welcome our new and existing shareholders, to learn more about our new initiatives on today’s shareholders conference call.”

    Conference Call Information

    The Company will hold an earnings conference call today at 1:00 pm ET/10:00 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 13581011.

    The conference call will also be simultaneously webcast, and can be accessed at:

    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 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

    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.

    March 31December 31,
    2014 2013
    Cash and cash equivalents $ 2,670,764 $ 224,386
    Accounts receivable, net of allowance of $0
    as of both March 31, 2014, and December 31, 2013 954,357 1,041,519
    Inventory 91,787 54,677
    Other current assets   106,400     107,519  
    Total current assets 3,823,308 1,428,101
    PROPERTY AND EQUIPMENT, net 340,886 369,095
    GOODWILL 12,308,661 12,308,661
    INTANGIBLE ASSETS, net 3,566,374 3,724,354
    OTHER ASSETS   72,006     72,006  
    Total assets $20,111,235   $17,902,217  
    Accounts payable $ 154,207 $ 478,588
    Accrued expenses 655,107 701,928
    Deferred revenue, current portion   1,013,674     967,912  
    Total current liabilities 1,822,988 2,148,428
    Deferred revenue, long-term portion 194,335 233,732
    Deferred rent   156,199     163,753  
    Total liabilities 2,173,522 2,545,913
    Common stock - $.001 par value; 40,000,000 shares authorized;
    36,844,467 and 27,897,467 shares issued and outstanding, respectively 36,844 27,897
    Additional paid-in capital 104,466,117 100,983,971
    Accumulated deficit   (86,565,248)   (85,655,564)
    Total stockholders’ equity   17,937,713     15,356,304  
    Total liabilities and stockholders’ equity $20,111,235   $17,902,217  



    Three Months Ended March 31,




    REVENUES $ 1,092,049 $ 1,632,875
    COST OF REVENUES   (362,647)   (738,326)
    Gross profit 729,402 894,549
    Selling 298,054 280,115
    General and administrative 910,653 1,027,743
    Research and development   430,523     507,734  
    Total operating expenses   1,639,230     1,815,592  
    Income (Loss) from operations (909,828 ) (921,043 )
    Interest income 223 15
    Interest expense   (79)   -  
    Net Income (Loss) $(909,684)$(921,028)
    Net Income (Loss) per common share -
    Basic $(0.03)$(0.03)
    Diluted $(0.03)$(0.03)
    Weighted average common shares used
    in computing per share amounts -
    Basic   35,452,711     27,724,267  
    Diluted   35,452,711     27,724,267  

    For the three months ended March 31, 2014



    Common Stock

    Paid-in Accumulated  







    BALANCE, January 1, 2014 27,897,467 $ 27,897 $ 100,983,971 $ (85,655,564 ) $ 15,356,304
    Stock option compensation 2,286 2,286
    Issuance of common stock 8,947,000 8,947 3,479,860 3,488,807
    Net loss -   -   -   (909,684)   (909,684)
    BALANCE, March 31, 201436,844,467$36,844$104,466,117$(86,565,248)$17,937,713  



    Three Months Ended March 31,




    Net Loss $ (909,684 ) $ (921,028 )
    Adjustments to reconcile net loss to net cash (used in)
    provided by operating activities:
    Depreciation and amortization 197,338 270,316
    Noncash stock-based compensation expense 2,286 4,784
    Changes in assets and liabilities:
    Decrease in accounts receivable 87,162 207,146
    (Increase) Decrease in inventory (37,110 ) 187,921
    Decrease (Increase) in other current assets 1,119 (27,095 )
    (Decrease) in accounts payable, accrued expenses (371,202 ) (59,727 )
    Increase (Decrease) in deferred revenue 6,365 (260,786 )
    (Decrease) in deferred rent   (7,554)   (4,448)
    Net cash (used in) provided by operating activities   (1,031,280)   (602,917)
    Purchases of property and equipment   (11,149)   (5,762)
    Net cash used in investing activities   (11,149)   (5,762)
    Net proceeds from issuance of common stock   3,488,807     -  
    Net cash provided by financing activities   3,488,807     -  
    Net Increase (Decrease) in cash and cash equivalents 2,446,378 (608,679 )
    CASH AND CASH EQUIVALENTS, beginning of period   224,386     1,685,879  
    CASH AND CASH EQUIVALENTS, end of period $2,670,764   $1,077,200  

    Dian Griesel Int’l.

    Investor Relations:

    Cheryl Schneider, 212-825-3210


    Media Relations:

    Enrique Briz, 212-825-3210

    Source: Intellicheck Mobilisa, Inc.

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    Source: Business Wire