Planet MicroCap April 23, 2025 NASDAQ:IDN Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the forward-looking statements in this presentation reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be mat ...

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Intellicheck Mobilisa, Inc. (IDN) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question. Intellicheck Mobilisa, Inc. is one of 199 individual stocks in the Industrial Products sector. Collectively, these companies sit at #11 i ...

Revenue and Profitability - Revenues for the year ended December 31, 2024 increased by $1,091 or 6% to $19,997 compared to $18,906 for the year ended December 31, 2023, primarily driven by higher SaaS revenue[137] - SaaS revenues increased by $1,215 or 7% to $19,810 for the year ended December 31, 2024, compared to $18,595 for the year ended December 31, 2023[137] - Gross profit for the year ended December 31, 2024 was $18,166, representing a 4% increase from $17,531 in 2023, with gross profit margin decreasing to 90.8% from 92.7%[138] - Net loss for the year ended December 31, 2024 was $(918) or $(0.05) per share, an improvement from a net loss of $(1,980) or $(0.10) per share in 2023[141] - Adjusted EBITDA for the year ended December 31, 2024 was $520, compared to $377 in 2023, reflecting operational improvements[150] Operating Expenses and Cash Flow - Operating expenses decreased by $473 or 2.4% to $19,334 for the year ended December 31, 2024, with research and development expenses decreasing by $823 or 18%[139] - Cash used in operating activities was $(2,694) for the year ended December 31, 2024, compared to $(647) in 2023, while cash provided by investing activities was $2,895[143] Financial Position - Cash and cash equivalents as of December 31, 2024 were $4,666, with total assets of $20,933 and stockholders' equity of $17,747[142] - As of December 31, 2024, the company had cash and cash equivalents of $4,666[157] - The company has approximately $28,500 in net operating loss carryforwards as of December 31, 2024, with $10,900 expiring between 2035 and 2037[151] - The company anticipates that available cash and expected cash from operations will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[146] Investment Activities - The primary objectives of the company's investment activities are capital preservation, liquidity fulfillment, and fiduciary control of cash and investments[157] - The company does not expect a hypothetical 100 basis point change in interest rates to materially affect the fair market value of its investment portfolio[157] - The company has never entered into off-balance sheet financing arrangements or established special purpose entities[156] Regulatory and Accounting Updates - The FASB issued ASU 2024-03, requiring disaggregated disclosures for certain expenses, effective for annual reporting periods beginning after December 15, 2026[155]

Financial Data and Key Metrics Changes - Fourth quarter revenues increased by 15% year-over-year, reaching a record $5.936 million compared to $5.176 million in Q4 2023 [48][50] - SaaS revenues for Q4 grew 17% quarter-over-quarter, totaling $5.913 million, while full-year SaaS revenues increased by 7% to $19.8 million [13][55] - Adjusted EBITDA for the full year 2024 was positive at $520,000, an improvement from a loss of $377,000 in 2023 [49][59] - Gross profit margin for Q4 was 91%, down from 95% in the same period of 2023, primarily due to increased R&D costs [50][55] Business Line Data and Key Metrics Changes - The company focused on vertical channel diversification, with significant growth in new verticals such as automotive (13%), title insurance (2,500%), email (54%), social media (17%), and retail banking [14][17] - SaaS revenue for the full year was $19.8 million, just shy of the $20 million mark, indicating strong performance in the SaaS segment [13][55] Market Data and Key Metrics Changes - Retail still represents approximately 75% of the company's scan volume, but transaction volumes from major retailers were down 45% year-over-year in Q1 2025 [44][82] - The company anticipates that lower mortgage rates will drive significant refinancing and improved home purchasing activity, particularly benefiting the title insurance vertical [17] Company Strategy and Development Direction - The company is investing in IT initiatives and enhancing customer experience through new leadership in the customer success team [9][31] - A strategic focus on longer contracts with minimums and guarantees is expected to yield positive results [42] - The transition from Azure to AWS is anticipated to improve efficiency and reduce costs, while also enhancing AI capabilities [30][76] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the first quarter of 2025, expecting revenues to align with sell-side consensus estimates of $4.78 million [45] - The company is aware of macroeconomic challenges affecting consumer confidence and spending, which could impact retail volumes [43][71] - Management believes that the diversification strategy is working, with a focus on higher-value transactions in new verticals [42][84] Other Important Information - The company reported a net loss of $918,000 for the full year 2024, an improvement from a loss of $1.98 million in 2023 [58] - The company has a $2 million revolving credit facility with Citibank, which was not utilized during 2024 [60] Q&A Session Summary Question: Visibility on stronger back half of the year - Management indicated that visibility is based on rollout schedules and proof of concepts, with expectations for growth in the back half of the year [65][68] Question: Disruption in sales conversations due to macro conditions - Management reported no disruption in sales conversations, as fraud remains a consistent issue across industries [70][72] Question: Potential operating expense savings from switching to AWS - Management expects significant savings from the transition to AWS, while balancing the need for extensive computing power for AI and machine learning [75][76] Question: Clarification on Q4 revenue strength and Q1 outlook - Management noted that Q4 strength was driven by non-retail improvements, with a significant drop in retail transaction volumes expected in Q1 [81][84] Question: Update on large social media customer - Management is finalizing procurement discussions and expects updates soon, with testing already completed [87][89] Question: Sales team composition and focus - The company has added three new sales associates, focusing on a consultative selling approach across various verticals [92][94] Question: Top priorities for 2025 - Management emphasized that sales growth is the top priority, alongside improving customer success and marketing strategies [98][100]

Revenue Performance - Revenues for the three months ended September 30, 2024 decreased by $51, or 1%, to approximately $4,709 compared to $4,760 for the same period of 2023[116] - Revenues for the nine months ended September 30, 2024 increased by $330, or 2%, to approximately $14,060 compared to $13,730 for the same period of 2023[119] - Equipment revenue decreased by $93, or 88%, to $13 for the three months ended September 30, 2024, while SaaS revenue increased by $26, or 1%, to $4,661[116] - SaaS revenue for the nine months ended September 30, 2024 increased by $370, or 2%, to $13,896 compared to $13,526 for the same period of 2023[119] Profit and Loss - Gross profit for the three months ended September 30, 2024 decreased by $47, or 1%, to $4,285, maintaining a gross profit margin of 91%[117] - The net loss for the three months ended September 30, 2024 was $(837), compared to a net loss of $(724) for the same period in 2023[118] - The net loss for the nine months ended September 30, 2024 was $(1,406), significantly improved from a net loss of $(2,964) for the same period in 2023[124] - Net loss for the three months ended September 30, 2023, was $(837) million, while the net loss for the nine months ended September 30, 2023, was $(1,406) million[134] Operating Expenses - Operating expenses for the nine months ended September 30, 2024 decreased by $1,352, or 9%, to $14,391 compared to $15,743 for the same period of 2023[123] - Restructuring severance expenses amounted to $376 million for the three months ended September 30, 2023, and $548 million for the nine months ended September 30, 2023[134] - Stock-based compensation, including liability classified awards, was $237 million for the three months ended September 30, 2023, and $1,347 million for the nine months ended September 30, 2023[134] Cash and Assets - As of September 30, 2024, the company had cash and cash equivalents of $5,747 and total assets of $20,682[125] - The company anticipates that available cash and expected cash from operations will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[127] Other Financial Information - Adjusted EBITDA for the three months ended September 30, 2023, was $(167) million, compared to $(341) million for the nine months ended September 30, 2023[134] - Interest and other income for the three months ended September 30, 2023, was $(73) million, while for the nine months it was $(230) million[134] - The company reported a provision for income taxes of $8 million for the three months ended September 30, 2023[134] - Depreciation and amortization for the three months ended September 30, 2023, was $130 million[134] Financing and Risk - The company has not entered into any off-balance sheet financing arrangements or established any special purpose entities[135] - There were no guarantees of debt or commitments of other entities by the company[135] - The company has not disclosed any market risk applicable to smaller reporting companies[135]

Core Viewpoint - Investors reacted negatively to Intellicheck's slight revenue miss, resulting in a 12% drop in shares, but management highlighted potential growth in identity verification services, particularly in real estate and banking sectors [1] Financial Performance - Third-quarter revenue was $4.7 million, approximately flat year-over-year and about 3% below consensus estimates [2] - Software-as-a-Service (SaaS) revenue increased by 1%, contributing significantly to the overall revenue [2] - Pricing power remained robust, with new business pricing per transaction rising by 25% year-on-year and 8% sequentially [2] Business Development - The appointment of Sandra Bower as vice president of customer success is expected to enhance revenue from existing customers through a deeper focus on the product pipeline [3] - A large regional bank has signed a multiyear agreement, fully implementing Intellicheck's services in 1,200 branches, with expectations of mid-6-figure annual revenue [5] - Another regional bank with over 2,700 branches is finalizing a multiyear deal for in-branch implementations, with potential for a seven-figure revenue increase by 2025 [6] Sector Growth - The real estate sector is experiencing solid growth, driven by the need for identity verification due to fraud schemes that have resulted in billions in losses [7] - Fraudsters often exploit stolen personal information in real estate transactions, highlighting the importance of Intellicheck's ID verification tools [8] - Westcor Land Title Insurance Company is utilizing Intellicheck's technology for advanced ID verification, contributing to growth in the automobile segment, which saw a 28% year-on-year increase [9] Market Challenges - The retail segment has faced pressures, including bankruptcies of three clients and reduced consumer spending, impacting overall revenue stability [10] - Management expressed hope that declining inflation could reverse current headwinds into tailwinds for the business [11] - The company is actively exploring other verticals for growth, indicating that many customers have not fully implemented their solutions yet [12]

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $4.71 million, a decrease of 1% compared to $4.76 million in Q3 2023 [67] - SaaS revenues increased by 1% to $4.66 million from $4.64 million in the same period last year, representing 99% of total revenues [67] - Gross margin remained strong at 91%, consistent with the previous year [66][68] - Net loss for Q3 2024 was $837,000, compared to a net loss of $724,000 in Q3 2023, with a net loss per diluted share of $0.04 for both periods [71] Business Line Data and Key Metrics Changes - New business price per transaction increased by 25% year-over-year and 8% sequentially from Q2 2024 [7] - The banking vertical is expected to see significant revenue growth, with a new multiyear agreement anticipated to generate mid-6-figure annual revenues [23][24] - The automotive vertical experienced a 28% growth over Q3 2023, indicating strong performance in this area [47] Market Data and Key Metrics Changes - Retail transaction volumes saw a double-digit decline in Q3 2024, attributed to economic conditions and inflation [90] - The company is diversifying into new verticals, which are expected to show significant growth opportunities in 2025, offsetting weaknesses in retail [100] Company Strategy and Development Direction - The company is focusing on expanding into financial services and other verticals to diversify revenue streams [76] - Marketing initiatives are being enhanced to drive interest in product offerings across multiple verticals [16] - The company is committed to maintaining high gross margins while improving architecture and data intelligence capabilities [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of retail bankruptcies and consumer spending pullback on business but emphasized the successful strategic plan to enter new markets [99] - The outlook for Q4 2024 anticipates continued gross margins of approximately 90% to 91% [75] - Management expressed optimism about the sales pipeline, particularly in financial services, social media, hospitality, and entertainment sectors [73] Other Important Information - The company has invested approximately $8.8 million in R&D related to product development over the past two years [61] - A significant focus is placed on enhancing the ID verification platform to stay ahead of evolving fraud tactics [60] Q&A Session Summary Question: When do you start to anniversary some of those more difficult retail comps? - Management indicated that the weakness in retail began about halfway through the previous year, with hopes for recovery as inflation decreases [80][82] Question: What is the comfort level regarding cash and potential investments in sales and marketing? - Management expressed confidence that there is no need to raise cash for operations and is assessing past marketing expenditures for better ROI [84][86] Question: Could you provide insights on retail volumes in Q3 and expectations for Q4? - Management noted a double-digit decline in retail transaction volumes in Q3 but remains hopeful for seasonal growth in Q4 due to new verticals coming online [90][91] Question: Clarification on the price per transaction increase and its implications? - Management clarified that the 25% year-over-year increase in price per transaction was specific to new business and not solely from existing customers [93] Question: What is the current size of the sales pipeline compared to previous quarters? - Management reported a more favorable pipeline today compared to three quarters ago, with ongoing discussions with large clients [95][96]

Company Performance - Intellicheck Mobilisa, Inc. reported a quarterly loss of $0.02 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, marking an earnings surprise of -100% [1] - The company posted revenues of $4.71 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.98%, compared to revenues of $4.76 million a year ago [2] - Over the last four quarters, Intellicheck Mobilisa has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Intellicheck Mobilisa shares have increased by approximately 42.6% since the beginning of the year, outperforming the S&P 500's gain of 25.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $5.41 million, while for the current fiscal year, the estimate is -$0.03 on revenues of $19.67 million [7] Industry Outlook - The Security and Safety Services industry, to which Intellicheck Mobilisa belongs, is currently ranked in the top 34% 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 Performance - Total revenue for Q3 2024 was $4,709,000, relatively flat compared to $4,760,000 in Q3 2023[1] - SaaS revenue increased by 1% to $4,661,000 in Q3 2024 from $4,635,000 in Q3 2023[1] - Gross profit margin remained strong at 91% for both Q3 2024 and Q3 2023[2] - Operating expenses decreased by 1% to $5,195,000 in Q3 2024 from $5,227,000 in Q3 2023[3] - Net loss for Q3 2024 increased to ($837,000) or ($0.04) per diluted share, compared to a net loss of ($724,000) or ($0.04) per diluted share in Q3 2023[4] - Adjusted EBITDA improved by $104,000 to a loss of ($167,000) in Q3 2024 compared to a loss of ($271,000) in Q3 2023[5] - For the nine months ended September 30, 2024, the net loss was $1,406,000, compared to a net loss of $2,964,000 for the same period in 2023, representing a 52.7% improvement[17] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(341,000), compared to $(793,000) for the same period in 2023, indicating a 57.0% reduction in losses[20] Cash and Assets - As of September 30, 2024, cash and cash equivalents totaled $5.7 million, and stockholders' equity was $16.7 million[6] - Total assets decreased to $20,682,000 as of September 30, 2024, down from $23,808,000 at the end of 2023[9] - The company reported a cash balance of $5,747,000 at the end of the period, up from $3,962,000 at the end of the same period in 2023, marking a 45.0% increase[17] - The decrease in accounts receivable was $1,360,000 for the nine months ended September 30, 2024, compared to an increase of $1,284,000 in the same period of 2023, indicating improved cash collection[17] - The company experienced a decrease in accounts payable and accrued expenses by $1,493,000 for the nine months ended September 30, 2024, compared to an increase of $431,000 in the same period of 2023[17] Operating Activities - Cash flows from operating activities showed a net cash used of $1,373,000 for the nine months ended September 30, 2024, compared to $1,114,000 for the same period in 2023, reflecting a 23.3% increase in cash outflow[17] - The company incurred $1,833,000 in software development costs during the nine months ended September 30, 2024, with no comparable costs reported in the previous year[17] Strategic Focus - The company is focused on revenue growth and expanding into new markets to drive sales and transaction volume[2] - The company is focused on expanding its digital identity validation solutions for various sectors, including financial services and law enforcement[21] - Future expectations include potential growth in commercial adoption of products and services, with a focus on new market areas such as healthcare and auto dealerships[22] Conference and Reporting - The earnings conference call was held on November 13, 2024, to discuss operating results[7] - The company reported a total stockholders' equity of $17,667,000 as of September 30, 2023[16]

Revenue Performance - Revenues for the three months ended June 30, 2024 decreased by $44, or 1%, to approximately $4,672 compared to $4,716 for the same period of 2023[102] - SaaS revenue for the three months ended June 30, 2024 decreased by $36, or 1%, to $4,627 compared to $4,663 for the same period of 2023[102] - Revenues for the six months ended June 30, 2024 increased by $382, or 4%, to approximately $9,352 compared to $8,970 for the same period of 2023[104] - SaaS revenue for the six months ended June 30, 2024 increased by $345, or 4%, to $9,236 compared to $8,891 for the same period of 2023[104] Profitability and Loss - Gross profit for the three months ended June 30, 2024 decreased by $136, or 3%, to $4,228, with a gross profit margin of 91% compared to 93% for the same period of 2023[102] - The net loss for the three months ended June 30, 2024 was $(127), an improvement compared to a net loss of $(853) for the same period of 2023[103] - The net loss for the six months ended June 30, 2024 was $(569), an improvement compared to a net loss of $(2,240) for the same period of 2023[105] - Net loss for the six months ended June 30, 2024, was $(569) million, an improvement from $(2,240) million in the same period of 2023[112] Operating Expenses - Operating expenses for the three months ended June 30, 2024 decreased by $770, or 15%, to $4,443 compared to $5,213 for the same period of 2023[103] - Operating expenses for the six months ended June 30, 2024 decreased by $1,318, or 13%, to $9,197 compared to $10,515 for the same period of 2023[105] Cash and Financial Position - As of June 30, 2024, the company had cash and cash equivalents of $7,260 and working capital of $6,611[106] Adjusted EBITDA and Other Financial Metrics - Adjusted EBITDA for the three months ended June 30, 2024, was $(70) million, compared to $(174) million for the same period in 2023[112] - Depreciation and amortization for the three months ended June 30, 2024, was $73 million, compared to $69 million in the same period of 2023[112] - Stock-based compensation, including liability classified awards, was $72 million for the three months ended June 30, 2024, down from $323 million in the same period of 2023[112] - Interest and other income for the six months ended June 30, 2024, was $(157) million, compared to $(1) million in the same period of 2023[112] Off-Balance Sheet and Risk Information - The company has not entered into any off-balance sheet financing arrangements or established special purpose entities[113] - There are no guarantees of debt or commitments of other entities by the company[113] - The company has not disclosed any quantitative and qualitative market risk information as it is not applicable to smaller reporting companies[114]