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]

Financial Data and Key Metrics Changes - Q2 2024 revenue decreased by 1% to $4.672 million compared to $4.716 million in Q2 2023 [31] - SaaS revenue for Q2 2024 decreased by 0.8% to $4.627 million from $4.663 million in the same period last year, representing 99% of total revenue [31] - Net income improved by $726,000 to a net loss of $127,000 for Q2 2024 compared to a net loss of $853,000 for Q2 2023 [33] - Adjusted EBITDA decreased by $106,000, resulting in a loss of $70,000 compared to a gain of $36,000 for the same period in 2023 [34] Business Line Data and Key Metrics Changes - SaaS revenues were $4.6 million, down $36,000 year-over-year [8] - Operating expenses decreased by $770,000 or 17% to $4.443 million for Q2 2024 compared to $5.213 million for Q2 2023 [32] - The average price per scan increased by 11% sequentially from Q1 to Q2 2024, indicating a positive trend in pricing strategy [10][58] Market Data and Key Metrics Changes - Retail sector saw a 16% year-over-year decline in volumes, with significant impacts from bankruptcies and store closures [44] - New customer acquisition in non-retail sectors is showing positive growth, helping to offset declines in the retail sector [50][56] - The electronics vertical and new categories like auto and title insurance are performing better, partially offsetting declines in traditional retail categories [11] Company Strategy and Development Direction - The company is diversifying its market presence beyond traditional retail to include sectors like title insurance, automotive, and background checks [11][21] - A focus on enhancing customer experience and account management through new leadership roles is expected to drive growth [13][14] - Continued investment in technology and product enhancements is planned to address evolving fraud tactics and improve service delivery [24][25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant increase in identity theft and fraud, emphasizing the importance of their technology in combating these issues [5][6] - The economic environment is seen as a headwind, particularly affecting the retail sector, but diversification into other verticals is expected to provide growth opportunities [47][56] - Management remains optimistic about future growth, particularly if the economy improves, which could provide a tailwind for retail recovery [45][47] Other Important Information - The company completed a successful proof of concept with a large lease-to-own retail client and is expanding its services [17] - New technology initiatives, including a self-administration hub for clients, are set to launch in Q3 2024 [24] - The company is actively cultivating partnerships with hardware companies to enhance its service offerings [39] Q&A Session Summary Question: Retail customer usage and deployment - Management noted that retail customers are using solutions in fewer locations due to store closures and economic factors affecting consumer spending [42][43] Question: Year-over-year retail volume decline - Retail volumes are down approximately 16% year-over-year, with variations across different sectors [44] Question: Future SaaS revenue expectations - Management refrained from providing specific revenue guidance but indicated that other market verticals are accelerating, which may offset retail declines [55][56]

Core Insights - The second quarter for Intellicheck showed pressure in retail verticals and customers, but diversification efforts are expected to yield long-term benefits [1] - Total revenues decreased by 0.9% to $4.7 million, with SaaS revenue down 0.8% at $4.6 million; net loss improved to $127,000 from $853,000 a year ago [1][2] Retail Segment Performance - Customers in the retail segment are reducing spending, particularly on cards, impacting transaction volumes and ID verification on a "per scan" basis [3] - Retail bankruptcies and store closures among clients led to a 16% volume decline in the quarter, worsening from a 10% decline in the first quarter [3] - There is a bifurcation within retail, with volume gains in sporting goods and electronics, while other categories are losing ground [3] Identity Fraud Concerns - Identity fraud remains a significant issue, with increasing breaches resulting in tens of billions of dollars in losses; the cost of stolen identity information is alarmingly low [4] - Knowledge-based security protocols are becoming less effective due to compromised challenge questions and answers [4] Diversification Efforts - The company is expanding into verticals beyond retail, including a partnership with Doma Title Insurance to combat seller impersonation amid rising real estate scams [5] - New business lines have seen an 11% average price increase per transaction compared to older retail lines, indicating successful diversification strategies [6] - Management emphasizes that diversification is a crucial strategy that is proving effective [6]

Intellicheck, Inc. (IDN) is expected to release second-quarter 2024 results on Aug 8, after market close. In the last reported quarter, the company reported an adjusted loss of 2 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 6 cents per share. Let's see how things have shaped up for Intellicheck this earnings season. Factors to Note Intellicheck's second-quarter performance is likely to have been aided by higher Software as a Service (SaaS) revenues, which consist of sof ...

One other Industrial Products stock that has outperformed the sector so far this year is Napco (NSSC) . The stock is up 42% year-to-date. In Napco's case, the consensus EPS estimate for the current year increased 3.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Intellicheck Mobilisa, Inc. (IDN) one of those stocks right n ...

Index UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission File No.: 001-15465 Intellicheck, Inc. (Exact name of Registrant as specified in its charter) 200 Broadhollow Road, ...

As identity fraud continues to plague business verticals from banking to automotive and even higher education, verification company Intellicheck posted record Q1 earnings Monday (May 13). "The landscape of the market for identity verification is evolving against the backdrop of a growing sense of urgency being fueled by across-the-board incidents of identity theft and fraud," Intellicheck CEO Bryan Lewis told the company's earnings call. "This has led to a significant new focus on security and the consumers ...