Intellicheck(IDN) - 2020 Q2 - Quarterly Report

Revenue Growth - Revenues for the three months ended June 30, 2020 increased 18% to $1,842,000 compared to $1,558,000 for the previous year, primarily due to higher commercial revenues[93] - Revenues for the six months ended June 30, 2020 increased 75% to $4,957,000 compared to $2,837,000 for the previous year, again driven by higher commercial revenues[99] SaaS Revenue - SaaS revenue increased $550,000 or 49% to $1,671,000 for the three months ended June 30, 2020, driven by growth in the Financial Services and Retail verticals[93] - SaaS revenue for the six months ended June 30, 2020 increased $1,928,000 or 97% to $3,910,000 compared to $1,982,000 for the same period last year[99] Gross Profit - Gross profit for the three months ended June 30, 2020 was $1,632,000, with a gross profit margin of 88.6%, up from 85.9% in the same period last year[94] - Gross profit for the six months ended June 30, 2020 was $4,055,000, with a gross profit margin of 81.8%, down from 85.5% in the same period last year[100] Operating Expenses - Operating expenses for the six months ended June 30, 2020 increased 5% to $4,800,000 compared to $4,564,000 for the same period last year, primarily due to higher personnel costs[101] Net Loss - The company generated a net loss of $734,000 for the six months ended June 30, 2020, an improvement compared to a net loss of $2,087,000 for the same period last year[103] - The company reported a net loss of $(760,273) for the three months ended June 30, 2020, compared to $(873,677) for the same period in 2019[119] Cash and Capital - As of June 30, 2020, the company had cash of $14,590,000 and working capital of $13,623,000[104] - The company completed a public offering of 1,769,230 shares at $6.50 per share, resulting in net proceeds of approximately $10,710,000[106] Net Operating Loss (NOL) - The company has approximately $17 million in available net operating loss (NOL) as of December 31, 2019, which can offset future taxable income[115] - The CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to generate refunds of previously paid income taxes, although this change will not have a material cash benefit for the company[116] Legal and Regulatory Matters - The company is not currently involved in any legal or regulatory proceedings that could materially affect its business[114] - The company has not entered into any off-balance sheet financing arrangements or established special purpose entities[120] Forward-Looking Statements - Forward-looking statements indicate expectations for future growth in revenues and cash flow, but these are subject to uncertainty and changes in circumstances[121] Financial Risk - The company maintains cash in two financial institutions, subjecting it to concentrations of credit risk[122] Adjusted EBITDA - Adjusted EBITDA for the three months ended June 30, 2020, was $(618,727), compared to $(785,318) for the same period in 2019, indicating an improvement[119] - Adjusted EBITDA is considered an important indicator of operational strength, but it has significant limitations and should not be viewed in isolation from GAAP net loss[118] SEC Filings - The company has filed a universal shelf registration statement with the SEC, allowing for future offerings of up to $25 million in securities[112]