Group 1 - Intellicheck Inc. (IDN) is showing signs of recovery in both growth and profitability after a period of struggle [1] - The company's growth is projected to be sustainable in the low double digits despite facing significant challenges [1] Group 2 - The article reflects the author's personal investment perspective, focusing on technology-based growth stocks and long-term holding strategies [1]

Summary of Intellicheck (IDN) Conference Call - August 20, 2025 Company Overview - **Company**: Intellicheck (Ticker: IDN) - **Industry**: Identity verification and fraud prevention, primarily through SaaS solutions Key Points and Arguments 1. **Unique Technology**: Intellicheck claims to be the only SaaS-based identity company with a proprietary method for interpreting barcodes on driver's licenses, which is crucial for identifying fake IDs [4][5] 2. **Market Size**: The identity fraud problem is significant, with $27 billion in identity fraud reported last year and 1.5 billion people affected [5] 3. **Real-Time Verification**: The company can verify licenses in approximately 44 milliseconds, allowing businesses to operate with immediate knowledge of customer identity [6] 4. **Market Reach**: Intellicheck validates nearly 100 million people in North America, covering about half of the adult U.S. population [8] 5. **Diverse Applications**: The company operates in various sectors including banking, retail, automotive, and law enforcement, providing services for account openings and fraud prevention [9][10] 6. **Customer Retention**: The company boasts a 100% renewal rate among significant revenue-generating customers, indicating a strong and sticky customer base [13] 7. **Financial Performance**: The company reported Q2 revenue of $5.1 million, with a positive EBITDA of $75,000, and expects to maintain 90% gross margins [20][14] 8. **Growth Areas**: Retail banking is currently the strongest growth area, with significant expansion in automotive and title insurance markets [22][23] 9. **Customer Adoption**: A large regional bank is rolling out Intellicheck's services across 2,700 branches, indicating strong customer adoption and potential revenue growth [22][24] 10. **Pricing Power**: The company has seen a price increase of over 25% for existing business and over 36% for new business, driven by its unique accuracy and fraud prevention capabilities [30] 11. **Regulatory Trends**: Increasing regulatory pressure around fraud prevention and KYC compliance is expected to benefit Intellicheck, as businesses seek reliable identity verification solutions [34][36] 12. **Cash Generation**: The company does not foresee the need for additional capital raising, expecting to generate cash from operations and invest in marketing and sales [46][49] 13. **Sales Cycle**: The sales cycle varies significantly by customer type, with quicker integrations for smaller clients compared to larger banks, which may take years due to internal processes [50][52] 14. **Revenue Model**: Revenue is primarily generated on a per-transaction basis, with customers committing to annual revenue amounts based on expected usage [53][57] 15. **Customer Concentration**: The top 100 customers account for 88% of revenue, with a diversified portfolio among these clients [58][59] Additional Important Insights - **Customer Feedback**: Major banks have described Intellicheck as a "game changer" in fraud prevention, highlighting the company's effectiveness [17] - **Team Expertise**: The leadership team includes individuals with significant experience in sales and technology, enhancing the company's growth potential [19] - **Future Opportunities**: The company is exploring new markets, including age verification for online services, which could present additional revenue opportunities [40][42] This summary encapsulates the key insights from the Intellicheck conference call, highlighting the company's unique position in the identity verification market, its financial performance, and growth strategies.

Group 1: Financial Performance - Intellicheck Mobilisa reported a quarterly loss of $0.01 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.01 per share a year ago [1] - The company posted revenues of $5.12 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 1.35%, and up from $4.67 million year-over-year [2] - Over the last four quarters, Intellicheck Mobilisa has surpassed consensus EPS estimates two times and revenue estimates three times [2][1] Group 2: Stock Performance and Outlook - Intellicheck Mobilisa shares have increased approximately 80.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.4% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $5.34 million, and for the current fiscal year, it is -$0.01 on revenues of $21.87 million [7] Group 3: Industry Context - The Security and Safety Services industry, to which Intellicheck Mobilisa belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased to $5.1 million from $4.7 million in the prior year, representing a 10% growth [5][26] - Adjusted EBITDA improved by $145,000 year-over-year, reaching $75,000 for the quarter [5][26] - Cash at the end of the quarter was $8.6 million, an increase of $3.5 million from $5.1 million at the end of Q1 [5][29] - Gross profit margin was 89.8% for the quarter, down from 90.5% in the previous year, while adjusted gross margin improved to 92.2% from 91% [27][28] Business Line Data and Key Metrics Changes - SaaS revenue for Q2 2025 was up 10% to $5.08 million, accounting for over 99% of total revenue [27] - Retail revenue decreased by 20% year-over-year, contributing approximately 25% to total revenue, while banking and lending contributed about 38% [20][44] - Pricing power was evident with average price per scan and new business price per scan increasing by 25% and 36% respectively [10] Market Data and Key Metrics Changes - Banking sector showed a 12% increase quarter-over-quarter and an 85% increase year-over-year, offsetting the decline in retail [42] - Retail scan volumes were down 2% quarter-over-quarter and down 20% year-over-year [42][44] - Interest from banking and finance users increased by 79% on Google Analytics over Q1, indicating growing market interest [18] Company Strategy and Development Direction - The company is focusing on expanding relationships with major clients and entering new verticals such as title insurance and automotive [8][10] - A new channel manager has been appointed to enhance coverage in strategic verticals and drive revenue through existing partners [14][15] - The company is committed to modernizing its technology stack, having migrated approximately 95% of clients to the AWS platform, expecting annual savings of over $300,000 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the banking sector's growth and the potential for retail to recover with anticipated interest rate cuts [42][59] - The company is addressing integration issues with a major social media client, emphasizing the importance of resolving these to unlock significant revenue potential [36][67] - Management highlighted the successful signing of multiyear renewal agreements with the four largest clients, indicating strong validation of the company's technology [71] Other Important Information - The company plans to participate in several upcoming conferences to raise visibility among investors and prospects [23][24] - A shelf registration filing is anticipated, allowing the company to sell shares efficiently if needed [30][31] Q&A Session Summary Question: Update on the Southeastern Regional Bank deal - The company started invoicing for the bank branches in July, and revenue from this deal is expected to be present for all of Q3 [35] Question: Timeline for resolution of social media client integration issues - The company is actively working with the client's engineering team to resolve issues, but no specific timeline for resolution was provided [36][40] Question: Retail scan volumes in the quarter - Retail was down 2% quarter-over-quarter and down 20% year-over-year, but banking growth has more than offset this decline [42] Question: Correlation of SaaS and total revenue with retail revenue - Retail revenue was down 20% year-over-year, contributing approximately 25% to total revenue [44] Question: Update on the sales pipeline and performance under new leadership - The sales pipeline is robust, with significant improvements in lead generation and marketing effectiveness noted [51]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Condensed Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Financial%20Statements) This section presents the unaudited condensed financial statements for the three and six months ended June 30, 2025, and 2024, covering balance sheets, operations, equity, and cash flows [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) Total assets increased to **$23,066 thousand** by June 30, 2025, from **$20,933 thousand** at year-end 2024, driven by higher cash and deferred revenue, with stockholders' equity reaching **$18,005 thousand** Condensed Balance Sheets (in thousands) | | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $8,573 | $4,666 | | Accounts receivable, net | $2,676 | $4,675 | | Total current assets | $12,143 | $9,912 | | Total assets | $23,066 | $20,933 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Deferred revenue | $3,038 | $1,001 | | Total current liabilities | $5,061 | $3,186 | | Total liabilities | $5,061 | $3,186 | | Total stockholders' equity | $18,005 | $17,747 | | Total liabilities and stockholders' equity | $23,066 | $20,933 | [Unaudited Condensed Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Statements%20of%20Operations) Q2 2025 revenues grew 9.6% year-over-year to **$5,123 thousand**, but increased operating expenses led to a wider net loss of **$251 thousand**, while H1 net loss remained flat at **$569 thousand** Condensed Statements of Operations (in thousands) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **REVENUES** | $5,123 | $4,672 | $10,017 | $9,352 | | Gross profit | $4,600 | $4,228 | $8,992 | $8,473 | | Total operating expenses | $4,898 | $4,443 | $9,638 | $9,197 | | Loss from operations | $(298) | $(215) | $(646) | $(724) | | **Net loss** | $(251) | $(127) | $(569) | $(569) | | **Loss per common share - Basic/Diluted** | $(0.01) | $(0.01) | $(0.03) | $(0.03) | [Unaudited Condensed Statements of Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased from **$17,747 thousand** at the end of 2024 to **$18,005 thousand** as of June 30, 2025, driven by stock-based compensation and option exercises, partially offset by net loss - For the six months ended June 30, 2025, stockholders' equity increased by **$258 thousand**, from **$17,747 thousand** to **$18,005 thousand**. This change was influenced by **$381 thousand** in stock-based compensation and **$446 thousand** from stock option exercises, offset by a net loss of **$569 thousand**[15](index=15&type=chunk) [Unaudited Condensed Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to **$3,884 thousand** for H1 2025, from **$312 thousand** used in H1 2024, increasing cash and cash equivalents to **$8,573 thousand** Condensed Statements of Cash Flows (in thousands) | | Six months ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash provided by (used in) operating activities | $3,884 | $(312) | | Net cash (used in) provided by investing activities | $(232) | $3,592 | | Net cash provided by financing activities | $255 | $— | | **Net increase in cash** | **$3,907** | **$3,280** | | **CASH, end of period** | **$8,573** | **$7,260** | [Notes to Unaudited Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) Notes detail the company's identity verification business, confirm 12-month liquidity, outline key accounting policies, and highlight SaaS revenue dominance and customer concentration - The company develops, integrates, and markets identity verification solutions for fraud prevention in commercial retail and banking[21](index=21&type=chunk) - Management expects existing cash and future revenues to satisfy working capital requirements for at least the **next 12 months** from the filing date[22](index=22&type=chunk) Disaggregation of Revenue (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **SaaS** | $5,080 | $4,627 | $9,948 | $9,236 | | Equipment | $— | $40 | $6 | $95 | | Other | $43 | $5 | $63 | $21 | | **Total** | **$5,123** | **$4,672** | **$10,017** | **$9,352** | - For the six months ended June 30, 2025, **three customers** accounted for approximately **58% of total revenues** (**31%**, **18%**, and **9%**, respectively)[65](index=65&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2025 revenue grew 10% to **$5,123 thousand**, but increased operating expenses led to a wider net loss of **$251 thousand**, while H1 net loss remained flat and liquidity improved significantly with cash from operations at **$3,884 thousand** - **Q2 2025 vs Q2 2024 Performance:** - Revenues increased by **10%** (**$451 thousand**) to **$5,123 thousand**, primarily from higher SaaS revenue - Gross profit rose by **9%** (**$372 thousand**), with the gross margin slightly decreasing from **91%** to **90%** - Operating expenses increased by **10%** (**$455 thousand**), mainly due to less capitalization of R&D costs - Net loss widened to **$(251) thousand** from **$(127) thousand**[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) - **Six Months 2025 vs Six Months 2024 Performance:** - Revenues increased by **7%** (**$665 thousand**) to **$10,017 thousand**, driven by higher SaaS transaction volumes - Gross profit grew by **6%** (**$519 thousand**), with the gross margin slightly decreasing from **91%** to **90%** - Net loss remained unchanged at **$(569) thousand**[115](index=115&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk) - As of June 30, 2025, the company had cash and cash equivalents of **$8,573 thousand** and working capital of **$7,082 thousand**. Cash from operations for the first six months of 2025 was **$3,884 thousand**, a significant improvement from a **$312 thousand** use of cash in the prior-year period[119](index=119&type=chunk)[120](index=120&type=chunk) Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (in thousands) | | Three Months Ended June 30 | Six Months Ended June 30 | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net loss** | **$(251)** | **$(127)** | **$(569)** | **$(569)** | | Reconciling items | $420 | $145 | $627 | $395 | | **Adjusted EBITDA** | **$75** | **$(70)** | **$58** | **$(174)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This disclosure is not applicable as the company qualifies as a smaller reporting company - Disclosure is **not applicable** to smaller reporting companies[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of June 30, 2025, management, including the CEO and CFO, concluded that the company's internal control over financial reporting was **effective**[135](index=135&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[137](index=137&type=chunk) [Part II – OTHER INFORMATION](index=29&type=section&id=Part%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in material legal proceedings, and management expects no adverse financial impact from pending or threatened matters - The company is not currently involved in any **material legal proceedings**, and management does not expect pending matters to have a **material adverse effect**[139](index=139&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been **no material changes** to the risk factors described in the company's 2024 Annual Report on Form 10-K[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - **None reported** for the period[142](index=142&type=chunk) [Item 3. Defaults Upon Senior Securities](index=30&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - **None reported**[142](index=142&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[142](index=142&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during Q2 2025 - During the three months ended June 30, 2025, **no directors or officers** informed the company of the adoption, modification, or termination of a Rule 10b5-1 trading arrangement[143](index=143&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with this report include CEO and CFO certifications and XBRL interactive data files[144](index=144&type=chunk) [Signatures](index=32&type=section&id=Signatures) The report was signed and authorized on August 12, 2025, by the President and CEO, Bryan Lewis, and the CFO, Adam Sragovicz - The report was signed on **August 12, 2025**, by Bryan Lewis (President and CEO) and Adam Sragovicz (CFO)[148](index=148&type=chunk)[149](index=149&type=chunk)

[Financial Highlights & Management Commentary](index=1&type=section&id=1.%20Financial%20Highlights%20%26%20Management%20Commentary) This section presents Intellicheck's record second-quarter 2025 financial performance, management's strategic insights, and a snapshot of the company's financial position [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202025%20Financial%20Highlights) Intellicheck reported record second-quarter 2025 financial results, with total revenue growing 10% year-over-year and SaaS revenue also increasing by 10%. The company achieved positive Adjusted EBITDA for the quarter, marking a significant improvement from the prior year, despite an increase in operating expenses and a higher net loss Q2 2025 Key Financial Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Total Revenue | $5,123,000 | $4,672,000 | +10% | | SaaS Revenue | $5,080,000 | $4,627,000 | +10% | | Gross Profit % | 90% | 91% | -1 ppts | | Operating Expenses | $4,898,000 | $4,443,000 | +10% | | Net Loss | ($251,000) | ($127,000) | -97.6% | | Diluted EPS | ($0.01) | ($0.01) | 0% | | Adjusted EBITDA | $75,000 | ($70,000) | +$145,000 | [Management Commentary & Strategic Focus](index=1&type=section&id=1.2.%20Management%20Commentary%26%20Strategic%20Focus) CEO Bryan Lewis highlighted the company's success in expanding its market presence and securing multiple multiyear agreements with prominent financial services clients, underscoring the value of its identity verification technology in fraud prevention and customer onboarding - Achieved another record quarter by successfully expanding presence in new and existing market verticals[3](index=3&type=chunk) - Signed multiple multiyear agreements with prominent financial services clients[3](index=3&type=chunk) - Identity verification technology boasts a **99.975% decisioning success rate** in stopping fraud[3](index=3&type=chunk) - Future growth will be driven by a keen focus on sales and marketing efforts[4](index=4&type=chunk) [Financial Position Snapshot](index=2&type=section&id=1.3.%20Financial%20Position%20Snapshot) As of June 30, 2025, Intellicheck maintained a healthy cash position and stable stockholders' equity Financial Position as of June 30, 2025 | Metric | Amount | | :------------------- | :----------- | | Cash and Cash Equivalents | $8.6 million | | Stockholders' Equity | $18.0 million | [Condensed Financial Statements](index=4&type=section&id=2.%20Condensed%20Financial%20Statements) This section provides detailed condensed balance sheets, statements of operations, stockholders' equity, and cash flows for the reported periods [Condensed Balance Sheets](index=4&type=section&id=2.1.%20Condensed%20Balance%20Sheets) The balance sheet shows an increase in total assets primarily driven by a significant rise in cash and cash equivalents, while total liabilities also increased due to higher deferred revenue. Stockholders' equity saw a modest increase Condensed Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $8,573 | $4,666 | +$3,907 | | Accounts receivable, net | $2,676 | $4,675 | -$1,999 | | Total current assets | $12,143 | $9,912 | +$2,231 | | Total assets | $23,066 | $20,933 | +$2,133 | | Deferred revenue | $3,038 | $1,001 | +$2,037 | | Total current liabilities | $5,061 | $3,186 | +$1,875 | | Total liabilities | $5,061 | $3,186 | +$1,875 | | Total stockholders' equity | $18,005 | $17,747 | +$258 | [Condensed Statements of Operations](index=6&type=section&id=2.2.%20Condensed%20Statements%20of%20Operations) For the three and six months ended June 30, 2025, Intellicheck experienced revenue growth but also saw an increase in operating expenses, particularly in research and development, leading to higher operating losses and net losses compared to the prior year periods Condensed Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $5,123 | $4,672 | $10,017 | $9,352 | | Gross profit | $4,600 | $4,228 | $8,992 | $8,473 | | Selling, general and administrative | $3,535 | $3,608 | $6,988 | $7,544 | | Research and development | $1,363 | $835 | $2,650 | $1,653 | | Total operating expenses | $4,898 | $4,443 | $9,638 | $9,197 | | Loss from operations | ($298) | ($215) | ($646) | ($724) | | Net loss | ($251) | ($127) | ($569) | ($569) | | Loss per common share - Basic/Diluted | ($0.01) | ($0.01) | ($0.03) | ($0.03) | [Condensed Statements of Stockholders' Equity](index=8&type=section&id=2.3.%20Condensed%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased slightly for both the three and six months ended June 30, 2025, primarily due to stock-based compensation and stock option exercises, partially offset by the net loss incurred during these periods Condensed Statements of Stockholders' Equity (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | March 31, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | :------------- | | Total Stockholders' Equity (Q2) | $18,005 | $17,608 | $17,307 | $17,178 | | Stock-based compensation (Q2) | $202 | - | $256 | - | | Stock option exercises (Q2) | $446 | - | $0 | - | | Net loss (Q2) | ($251) | - | ($127) | - | | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | :------------ | :---------------- | | Total Stockholders' Equity (YTD) | $18,005 | $17,747 | $17,307 | $17,276 | | Stock-based compensation (YTD) | $381 | - | $600 | - | | Stock option exercises (YTD) | $446 | - | $0 | - | | Net loss (YTD) | ($569) | - | ($569) | - | [Condensed Statements of Cash Flows](index=12&type=section&id=2.4.%20Condensed%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company generated significant net cash from operating activities, primarily due to a decrease in accounts receivable and an increase in deferred revenue, leading to a substantial net increase in cash compared to the prior year Condensed Statements of Cash Flows (in thousands) - Six Months Ended June 30 | Metric | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Net cash provided by (used in) operating activities | $3,884 | ($312) | | Net cash (used in) provided by investing activities | ($232) | $3,592 | | Net cash provided by financing activities | $255 | $0 | | Net increase in cash | $3,907 | $3,280 | | CASH, end of period | $8,573 | $7,260 | [Non-GAAP Financial Measures Reconciliation](index=14&type=section&id=3.%20Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures, including Adjusted EBITDA and Adjusted Gross Profit, to their most directly comparable GAAP measures [Adjusted EBITDA](index=14&type=section&id=3.1.%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, improved significantly to a positive $75,000 for Q2 2025, compared to a loss of ($70,000) in Q2 2024, reflecting operational strength by excluding non-cash and non-operating charges - Adjusted EBITDA is a non-GAAP measure used to supplement GAAP results, providing an additional tool for investors to compare financial results by excluding non-cash charges (amortization, depreciation, stock-based compensation) and non-operating charges (interest, income taxes)[16](index=16&type=chunk)[17](index=17&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | ($251) | ($127) | ($569) | ($569) | | Provision for income taxes | $0 | $0 | $0 | $2 | | Other income, net | ($47) | ($88) | ($77) | ($157) | | Depreciation and amortization | $171 | $73 | $325 | $145 | | Stock-based compensation | $202 | $72 | $379 | $405 | | **Adjusted EBITDA** | **$75** | **($70)** | **$58** | **($174)** | [Adjusted Gross Profit](index=14&type=section&id=3.2.%20Adjusted%20Gross%20Profit) Adjusted Gross Profit, a non-GAAP measure, increased for both the three and six months ended June 30, 2025, reflecting improved current operating performance by excluding amortization expense allocable to cost of revenues - Adjusted Gross Profit is a non-GAAP measure that adjusts gross profit by excluding amortization expense, focusing on current operating performance as amortization reflects historical software development costs[19](index=19&type=chunk)[20](index=20&type=chunk) Adjusted Gross Profit Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $5,123 | $4,672 | $10,017 | $9,352 | | Cost of revenue, exclusive of amortization | $401 | $421 | $800 | $832 | | Amortization allocable to cost of revenues | $122 | $23 | $225 | $47 | | Gross Profit | $4,600 | $4,228 | $8,992 | $8,473 | | Add: Amortization allocable to cost of revenues | $122 | $23 | $225 | $47 | | **Adjusted Gross Profit** | **$4,722** | **$4,251** | **$9,217** | **$8,520** | | Gross profit as a percentage of revenues | 89.8% | 90.5% | 89.8% | 90.6% | | Adjusted Gross Profit as a percentage of revenues | 92.2% | 91.0% | 92.0% | 91.1% | [Company Information & Disclosures](index=2&type=section&id=4.%20Company%20Information%20%26%20Disclosures) This section provides an overview of Intellicheck, conference call details, a safe harbor statement, and contact information for stakeholders [About Intellicheck](index=17&type=section&id=4.1.%20About%20Intellicheck) Intellicheck is an industry leader in identity verification management, providing SaaS-based solutions that utilize proprietary analysis of DMV-issued IDs to prevent identity-based fraud across various sectors - Intellicheck is an industry-leading identity verification management company[23](index=23&type=chunk) - Offers SaaS-based validation and proofing services using proprietary analysis of DMV-issued IDs[23](index=23&type=chunk) - Validates approximately **100 million identities annually** across North America with **99.75% decisioning accuracy** in under a second[23](index=23&type=chunk) [Conference Call Information](index=2&type=section&id=4.2.%20Conference%20Call%20Information) Intellicheck hosted an earnings conference call on August 12, 2025, to discuss its operating results, with a replay available for a limited period - Earnings conference call held on **August 12, 2025, at 4:30 p.m. ET/1:30 p.m. PT**[9](index=9&type=chunk) - Dial-in numbers: **877-407-8037** (U.S.) and **201-689-8037** (International)[9](index=9&type=chunk) - Replay available until **August 19, 2025**, using conference ID **13754628**[10](index=10&type=chunk) [Safe Harbor Statement](index=17&type=section&id=4.3.%20Safe%20Harbor%20Statement) This section provides a standard Safe Harbor Statement, indicating that statements about Intellicheck's future expectations are forward-looking and subject to various risks and uncertainties, and the company does not undertake to update them - Statements regarding future expectations, product advantages, revenue improvement, market acceptance, and strategic execution are forward-looking statements[24](index=24&type=chunk) - Actual results may differ materially due to factors such as market acceptance, demand levels, ability to manage expenses, successful expansion, research and development, inflation, intellectual property rights, regulatory changes, and security breaches[24](index=24&type=chunk) - The company does not assume any obligation to update forward-looking information[24](index=24&type=chunk) [Contact Information](index=17&type=section&id=4.4.%20Contact%20Information) Contact details for investor relations and media inquiries are provided for interested parties - Investor Relations Contact: Gar Jackson at **(949) 873-2789** or gjackson@intellicheck.com[23](index=23&type=chunk) - Media and Public Relations Contact: Sharon Schultz at **(302) 539-3747** or sschultz@intellicheck.com[23](index=23&type=chunk)

Core Viewpoint - Intellicheck Mobilisa, Inc. (IDN) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - Intellicheck Mobilisa is projected to earn -$0.01 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Intellicheck Mobilisa has increased by 70%, reflecting a positive trend in earnings outlook [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Intellicheck Mobilisa to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Intellicheck, Inc. (NASDAQ: IDN) is gaining attention as a notable player in the niche SaaS market focused on identity verification [1] Company Overview - Intellicheck operates within a specialized segment of the Software as a Service (SaaS) market, emphasizing identity verification solutions [1] Analyst Background - The analysis is conducted by a financial analyst with a background in petroleum and gas engineering, now focusing on technology, infrastructure, and internet services [1]

Intellicheck's Market and Technology - Fraud and identity theft impact multiple verticals, creating a significant addressable market[7] - In 2024, fraud in the U S impacted 18 million people[7] - Account takeover fraud saw a 22% increase[7] - Intellicheck authenticates close to 100 million documents in North America annually[16] - Intellicheck's technology verifies in less than a second if an ID is REAL and confirms the ID belongs to the person presenting it[40] - Intellicheck's solution requires no new hardware and offers omni-channel validation[39] - Intellicheck has renewed focus on sales and marketing to drive growth[28] Financial Performance (Q1 2025) - Total revenue was $4894000[61] - SaaS revenue was $4868000[61] - Gross margin was 90%[61] - Net loss was $(318000)[63] - Adjusted EBITDA was $(17000)[63]

Core Viewpoint - Intellicheck Mobilisa, Inc. (IDN) shows potential as a stock pick due to its recent technical performance, surpassing resistance levels and indicating a bullish trend [1]. Technical Analysis - IDN has recently moved above its 20-day simple moving average, which is a positive indicator for short-term traders as it suggests a bullish trend [2]. - The stock has increased by 24.1% over the past four weeks, reinforcing the positive technical outlook [4]. Earnings Estimates - There have been two upward revisions in IDN's earnings estimates for the current fiscal year, with no downward revisions, indicating strong investor confidence [4]. - The consensus earnings estimate has also increased, further supporting the bullish sentiment around IDN [4][5].