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].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Intellicheck Mobilisa, Inc. (IDN) - IDN currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Performance Metrics - IDN shares have increased by 16.7% over the past week, outperforming the Zacks Security and Safety Services industry, which rose by 1.32% [6] - Over the past month, IDN's price change is 68.81%, significantly higher than the industry's 0.33% [6] - In the last quarter, IDN shares have surged by 105.88%, and over the past year, they have gained 43.05%, while the S&P 500 has only increased by 8.33% and 12.92%, respectively [7] Trading Volume - IDN's average 20-day trading volume is 755,106 shares, which is a positive indicator of market interest [8] Earnings Outlook - In the past two months, two earnings estimates for IDN have been revised upwards, with the consensus estimate improving from -$0.03 to -$0.01 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [10] Conclusion - Given the strong performance metrics and positive earnings outlook, IDN is positioned as a promising momentum pick for investors [12]

Group 1: Penny Stocks Overview - Trading penny stocks allows investors to buy a significant number of shares with limited capital, potentially generating substantial profits from small price movements [1] - Penny stocks are often associated with small-cap or micro-cap companies, many of which are unprofitable and may lack revenue [1][2] Group 2: Microvast Holdings Inc. - Microvast Holdings Inc. (NASDAQ: MVST) is a leader in battery technologies for electric vehicles and energy storage, holding over 800 patents [4] - The company reported a strong earnings performance, beating revenue expectations and maintaining a full-year revenue growth guidance of 18% to 25% [5] - MVST stock has risen 80% in the last 30 days, partly due to its recent addition to the Russell 3000 index, which may attract institutional interest [6] Group 3: Ribbon Communications Inc. - Ribbon Communications Inc. (NASDAQ: RBBN) is positioned as a key player in AI infrastructure, particularly in telecommunications for large language models [8][9] - The company has maintained its full-year revenue guidance between $870 million and $890 million, exceeding analysts' forecasts [10] - RBBN stock has increased over 20% following its latest earnings report, with a consensus price target of $5.88, indicating a potential upside of 49.8% [11] Group 4: Intellicheck Inc. - Intellicheck Inc. (NYSE: IDN) focuses on identity verification and fraud detection within the cybersecurity sector, a rapidly growing niche [12][13] - The company reported 100% renewal rates and high gross margins, with annual contract values exceeding $10 million [14] - Analysts have set a consensus price target of $5.83 for IDN stock, suggesting potential for speculative investment [15]

Group 1 - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - Intellicheck Mobilisa, Inc. (IDN) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2][11] - The Zacks Rank for IDN is 2 (Buy), suggesting a favorable outlook for the stock based on its performance metrics [3] Group 2 - IDN shares have increased by 35.8% over the past week, while the Zacks Security and Safety Services industry has declined by 2.97% during the same period [5] - Over the past quarter, IDN shares have risen by 80.71%, significantly outperforming the S&P 500, which has moved -3.17% [6] - The average 20-day trading volume for IDN is 390,918 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Group 3 - Earnings estimates for IDN have improved, with two estimates moving higher in the past two months, raising the consensus estimate from -$0.03 to -$0.01 [9] - The positive earnings outlook contributes to IDN's strong momentum score and overall favorable investment profile [8][11]

Core Viewpoint - Intellicheck Mobilisa, Inc. (IDN) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on changes in a company's earnings picture, tracking EPS estimates from sell-side analysts through a consensus measure [2]. - The recent upgrade reflects a significant increase in earnings estimates, with the Zacks Consensus Estimate for Intellicheck Mobilisa rising by 33.3% over the past three months [9]. Impact of Earnings Estimates on Stock Prices - There is a strong correlation between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [5][6]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Company Performance Outlook - The expected earnings for Intellicheck Mobilisa for the fiscal year ending December 2025 is -$0.03 per share, indicating no year-over-year change [9]. - The upgrade to Zacks Rank 1 positions Intellicheck Mobilisa in the top 5% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [11].

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Intellicheck Mobilisa, Inc. (IDN) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.02 per share a year ago. These figures are adjusted ...

Financial Data and Key Metrics Changes - The company's first quarter revenues increased by 5% year-over-year, reaching a record of $4,894,000 compared to $4,680,000 in the same period of 2024 [25] - Adjusted EBITDA improved by $100,000 year-over-year, resulting in a small loss of $17,000 for the quarter [25] - SaaS revenue grew by 6% to $4,868,000, representing over 99% of total revenue for the quarter [25] - Gross profit margin was 89.7%, with an adjusted gross margin of 91.8%, up from 91.2% in Q1 2024 [26][27] Business Line Data and Key Metrics Changes - Revenue from title insurance increased by approximately 350% in Q1 2025, indicating strong growth in this vertical [35] - Retail banking revenue rose by about 50% compared to Q1 2024, showcasing significant expansion in this area [36] - Retail revenue declined by 26% year-over-year, reflecting challenges in the retail sector [40] Market Data and Key Metrics Changes - The company has diversified its client base beyond retail credit cards, now seeing growth in sectors such as retail banking, title insurance, and logistics [9][22] - The logistics and shipping market is identified as a significant opportunity due to high levels of theft and fraud [9][62] Company Strategy and Development Direction - The company is focused on diversifying its market presence and reducing reliance on retail, which has been a drag on growth [22][41] - A strategic initiative includes migrating clients from Azure to AWS, expected to enhance operational efficiency and reduce costs [8][28] - The appointment of a new senior vice president of sales is anticipated to drive revenue growth and improve client relationships [11][105] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is down nearly 8% year-over-year, impacting retail purchases [22] - The company expects to continue seeing positive cash flow and growth in revenue throughout 2025 [30] - Management expressed optimism about the future, highlighting the importance of new partnerships and marketing efforts [105] Other Important Information - The company has a $2,000,000 revolving credit line with Citibank, which was not utilized during 2025 [30] - Marketing changes have led to increased engagement, with LinkedIn followers up 16% and website visitors up 34% [18] Q&A Session Summary Question: What is the company's penetration in the title market? - Management indicated that they have exposure to about 40% of the title market, with revenue from title insurance up 350% in Q1 [34][35] Question: What are the next largest verticals after retail? - The next largest verticals are banking and auto, with retail banking revenue up 50% year-over-year [36] Question: What percentage of revenue does retail represent now? - Retail revenue is down 26% year-over-year, and it is now roughly equal to retail banking in terms of revenue contribution [40][50] Question: What drove the increase in deferred revenue and SaaS RPOs? - The increase was attributed to moving customers to a pricing model that encourages upfront payments [52][53] Question: Any updates on the large social media customer and regional bank? - Management confirmed ongoing discussions with both, with procurement processes underway for the regional bank [56][57] Question: How is the company addressing the shipping and logistics market? - The company is addressing fraud in logistics by verifying truckers' identities, which is a significant concern in the industry [62] Question: What is the status of the reseller strategy? - The reseller strategy is still developing, with ongoing efforts to engage more resellers, particularly in banking [66][68] Question: What is the current state of accounts receivable? - The increase in accounts receivable is primarily due to changes in the pricing model, moving away from billing in arrears [69] Question: What are the leading indicators for future growth? - Management highlighted a robust pipeline of committed customers and contracts as indicators of future growth [74][75]

Financial Data and Key Metrics Changes - The company's first quarter revenues increased by 5% year-over-year, reaching a record of $4,894,000 compared to $4,680,000 in the same period of 2024 [22] - SaaS revenue grew by 6% to $4,868,000, representing over 99% of total revenue for the quarter [22] - Adjusted EBITDA improved by $100,000, resulting in a small loss of $17,000 for the quarter, indicating a near breakeven performance [22] - Gross profit margin was 89.7%, slightly down from 90.7% in the previous year, while adjusted gross margin improved to 91.8% from 91.2% [23][24] - Operating expenses decreased by 1% to $4,740,000, with a notable reduction in selling, general, and administrative expenses [25] Business Line Data and Key Metrics Changes - The company has diversified its client base beyond retail credit cards, now seeing significant growth in retail banking, title insurance, auto, email account security, and background checks [6][7] - Revenue from title insurance increased by approximately 350% in Q1, indicating strong market penetration [32] - Retail banking revenue grew by 50% year-over-year, showcasing the effectiveness of the company's diversification strategy [33] Market Data and Key Metrics Changes - The company reported a 26% decline in revenue from retail, reflecting challenges in the retail sector [36] - Despite the retail decline, the overall revenue growth was driven by gains in other sectors, demonstrating the success of the diversification strategy [39] Company Strategy and Development Direction - The company is focused on a diversification strategy, moving away from a retail-first emphasis to capture opportunities in various sectors [20] - The migration from Azure to AWS is expected to yield cloud savings and improve client onboarding processes [6][15] - The appointment of a new senior vice president of sales is anticipated to drive revenue growth and enhance client relationships [10][90] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is down nearly 8% from the previous year, impacting retail purchases [20] - The company remains optimistic about future growth, driven by strategic initiatives and a revitalized sales team [90] - Management emphasized the importance of adapting to market changes and economic conditions as they evolve [21] Other Important Information - The company had cash and cash equivalents of $5,100,000 at the end of Q1, exceeding consensus estimates [26] - The company has a $2,000,000 revolving credit line with Citibank, which was not utilized during 2025 [28] Q&A Session Summary Question: What is the company's penetration in the title insurance market? - The company estimates it has exposure to about 40% of the title insurance market, with revenue from title insurance up 350% in Q1 [31][32] Question: What are the next largest verticals after credit cards? - The next largest verticals are banking and auto, with retail banking revenue up 50% year-over-year [33] Question: What percentage of revenue does retail represent now? - Retail revenue was down 26% year-over-year, indicating a declining percentage of total revenue [36] Question: What drove the increase in deferred revenue and SaaS RPOs? - The increase was largely due to moving customers to a pricing model that encourages upfront payments [45] Question: Any updates on the large social media customer and regional bank? - The social media customer is progressing well, while the regional bank is in procurement discussions [48][49] Question: How is the company addressing the shipping and logistics market? - The company is addressing fraud in shipping and logistics, with significant losses reported per truck due to organized crime [52][53] Question: What is the status of the reseller strategy? - The company sees plenty of room for improvement in its reseller strategy and is actively engaging with potential partners [55] Question: What is the current state of accounts receivable? - The increase in accounts receivable is primarily due to changes in the pricing model, moving towards prepayment [58]

PART I – FINANCIAL INFORMATION [Item 1. Unaudited Condensed Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Financial%20Statements) The company reported increased revenues and assets in Q1 2025, with a reduced net loss and sufficient liquidity for the next 12 months [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Total assets increased to **$24.6 million** by March 31, 2025, driven by higher receivables and deferred revenue, while liabilities also rose Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,148 | $4,666 | | Accounts receivable, net | $7,506 | $4,675 | | Total current assets | $13,527 | $9,912 | | Total assets | $24,561 | $20,933 | | Deferred revenue | $4,518 | $1,001 | | Total current liabilities | $6,953 | $3,186 | | Total stockholders' equity | $17,608 | $17,747 | [Unaudited Condensed Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Statements%20of%20Operations) Q1 2025 revenues increased by **4.6%** to **$4.9 million**, leading to a reduced net loss of **$318 thousand** compared to the prior year Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $4,894 | $4,680 | | Gross Profit | $4,392 | $4,245 | | Total Operating Expenses | $4,740 | $4,768 | | Loss from Operations | ($348) | ($523) | | Net Loss | ($318) | ($442) | | Loss per Share (Basic/Diluted) | ($0.02) | ($0.02) | [Unaudited Condensed Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows) Net cash from operations was **$750 thousand** in Q1 2025, with cash and equivalents ending at **$5.1 million**, impacted by investing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $750 | $869 | | Net cash (used in) provided by investing activities | ($173) | $4,390 | | Net cash (used in) financing activities | ($95) | $0 | | **Net increase in cash** | **$482** | **$5,259** | | **Cash, end of period** | **$5,148** | **$9,239** | [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, liquidity, revenue recognition, customer concentration, and legal matters - The company develops and markets identity verification solutions for fraud prevention, primarily in commercial retail and banking[18](index=18&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[19](index=19&type=chunk) Revenue Disaggregation by Type (in thousands) | Product/Service | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | SaaS | $4,868 | $4,609 | | Equipment | $6 | $55 | | Other | $20 | $16 | | **Total** | **$4,894** | **$4,680** | - In Q1 2025, three customers accounted for **56%** of total revenues (**28%**, **19%**, and **9%** respectively) and **81%** of total accounts receivable[62](index=62&type=chunk) - A class action complaint filed in March 2024 alleging violations of the Illinois Biometric Information Privacy Act was dismissed in April 2025, and no liability has been recognized[94](index=94&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights **5%** revenue growth, improved net loss, sufficient liquidity, and better non-GAAP Adjusted EBITDA in Q1 2025 [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2025 revenues increased **5%** to **$4.9 million**, primarily from SaaS, leading to a reduced net loss despite a slight gross margin decrease - Revenues increased **5%** to **$4,894 thousand** in Q1 2025 from **$4,680 thousand** in Q1 2024[109](index=109&type=chunk) - The increase in revenue was primarily driven by a **6%** increase in SaaS revenue, which rose to **$4,867 thousand**[109](index=109&type=chunk) - Gross profit as a percentage of revenue was **90%** for Q1 2025, compared to **91%** for Q1 2024[110](index=110&type=chunk) - Net loss improved to **$(318) thousand** in Q1 2025 from a net loss of **$(442) thousand** in Q1 2024[111](index=111&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$5.1 million** in cash and **$6.6 million** in working capital, with a **$2 million** unused credit facility, ensuring liquidity for 12 months - As of March 31, 2025, the company had cash and cash equivalents of **$5,148 thousand** and working capital of **$6,574 thousand**[112](index=112&type=chunk) - The company has an available **$2,000 thousand** revolving line of credit with no outstanding balance as of March 31, 2025[75](index=75&type=chunk)[114](index=114&type=chunk) - Management believes current resources are sufficient to meet anticipated working capital and capital expenditure requirements for at least the next 12 months[114](index=114&type=chunk) [Use of Non-GAAP Measures](index=28&type=section&id=Use%20of%20Non-GAAP%20Measures) Non-GAAP measures show improved Adjusted Gross Profit of **$4.5 million** and a narrowed Adjusted EBITDA loss of **$17 thousand** in Q1 2025 Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(318) | $(442) | | Other income and expense, net | $(30) | $(83) | | Depreciation and amortization | $154 | $72 | | Stock-based compensation | $177 | $334 | | **Adjusted EBITDA** | **$(17)** | **$(117)** | Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Profit (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit | $4,392 | $4,245 | | Add: Amortization allocable to cost of revenues | $103 | $24 | | **Adjusted Gross Profit** | **$4,495** | **$4,269** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company qualifies as a smaller reporting company - Disclosure is not applicable as the company is a smaller reporting company[126](index=126&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 March 31, 2025, with no material changes to internal controls - Management concluded that the Company's internal control over financial reporting was effective as of March 31, 2025[127](index=127&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal controls[129](index=129&type=chunk) Part II – OTHER INFORMATION [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in material legal proceedings, with a previously disclosed class action lawsuit dismissed in April 2025 - The company is not currently involved in any material legal proceedings, and management does not expect pending matters to have a material adverse effect[131](index=131&type=chunk) - A class action complaint served in March 2024 was dismissed in April 2025[94](index=94&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 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[133](index=133&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[134](index=134&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) No directors or officers reported changes to Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the quarter, no directors or officers reported the adoption, modification, or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement"[135](index=135&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including the 2025 Omnibus Incentive Plan and required certifications - Key exhibits filed with the report include: - Intellicheck, Inc. 2025 Omnibus Incentive Plan - Rule 13a-14(a) Certifications of CEO and CFO - Section 1350 Certifications - XBRL Instance Document and related files[137](index=137&type=chunk)