MRO Magazine

Intellicheck Mobilisa Announces First Quarter 2015 Financial Results


May 6, 2015
By Business Wire News

PORT TOWNSEND, Wash.

Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a leader in identity verification and validation systems, today announced its financial results for the quarter ended March 31, 2015.

Revenue for the first quarter ended March 31, 2015 was $987,000, compared to $1,092,000 in the same period of the previous year. Adjusted EBITDA was ($898,000) for the first quarter of 2015 compared to ($710,000) for the first quarter of 2014. Net loss for the three months ended March 31, 2015 was ($1,302,000) million or ($0.14) per diluted share compared to a net loss of ($910,000) or ($0.21) per share for the quarter ended March 31, 2014.

The Company’s backlog, which represents sales orders for products not yet shipped and services to be performed, was approximately $292,000 at March 31, 2015, compared to $358,000 at March 31, 2014.

Intellicheck Mobilisa CEO Dr. William Roof commented, “We are optimistic about our progress as we re-start the company and execute our turn-around plan. We believe successful implementation of this plan will result in growing, increasingly predictable revenues and earnings, and management anticipates a future that holds exciting potential for the Company.”

Dr. Roof noted, “There were a number of important developments in Q1 2015. The Company expanded its sales, marketing and strategic communications capabilities, which are expected to fuel sales, increase awareness in key markets, build brand value, and create tactical marketing and communications initiatives that will speak to important markets, in line with the Company’s long-term strategic plan. New contract awards demonstrated growing traction in the public and private sector, including the U.S. Army Corps of Engineers, TechFlow and the U.S. Navy, as well as Helzberg Diamonds.”

Dr. Roof concluded, “We are working to build our opportunities pipeline and leverage existing and new partnerships to expand market awareness and sales. Our strategic plans, our expanded leadership team and the strength of our technology, all point to a future of growing possibilities for the Company. We will continue to vigorously pursue opportunities to grow revenues and increase shareholder value.”

The financial results reported today do not take into account any adjustments that may be required in connection with the completion of the Company’s review process and should be considered preliminary until Intellicheck Mobilisa files its Form 10-Q for the fiscal quarter ended March 31, 2015.

 
INTELLICHECK MOBILISA, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
     
March 31, December 31,
2015 2014
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 9,734,746 $ 2,966,350

Accounts receivable, net of allowance of $78,724 and $78,724 as of March 31, 2015, and December 31, 2014

587,219 792,072
Inventory 111,907 115,021
Other current assets  138,999    108,884  
Total current assets 10,572,871 3,982,327
 
PROPERTY AND EQUIPMENT, net 372,868 346,915
GOODWILL 8,101,661 8,101,661
INTANGIBLE ASSETS, net 3,126,273 3,307,797
OTHER ASSETS  65,800    75,007  
 
Total assets$22,239,473  $15,813,707  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
CURRENT LIABILITIES:
Accounts payable $ 232,032 $ 45,193
Accrued expenses 866,142 915,809
Deferred revenue, current portion  1,086,027    1,141,069  
Total current liabilities 2,184,201 2,102,071
 
OTHER LIABILITIES
Deferred revenue, long-term portion 343,735 435,153
Deferred rent 121,927 128,446
Note payable, net of current portion  24,404      
Total liabilities 2,674,267 2,665,670
 
COMMITMENTS AND CONTINGENCIES
 
STOCKHOLDERS’ EQUITY:

Common stock – $.001 par value; 40,000,000 shares authorized; 9,826,333 and 4,934,601 shares issued and outstanding, respectively

9,826 4,934
Additional paid-in capital 114,157,287 106,442,897
Accumulated deficit  (94,601,907)  (93,299,794)
Total stockholders’ equity  19,565,206    13,148,037  
Total liabilities and stockholders’ equity$22,239,473  $15,813,707  
 
 
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Three Months Ended March 31,

2015

   

2014

 
REVENUES $ 987,127 $ 1,092,049
COST OF REVENUES  (392,162)  (362,647)
Gross profit 594,965 729,402
 
OPERATING EXPENSES
Selling 233,353 298,054
General and administrative 1,192,937 910,653
Research and development  495,938    430,523  
Total operating expenses  1,922,228    1,639,230  
 
Loss from operations (1,327,263 ) (909,828 )
 
OTHER INCOME (EXPENSE)
Interest and other income 27,329 223
Interest expense  (2,179)  (79)
 
Net loss$(1,302,113)$(909,684)
 
PER SHARE INFORMATION
Loss per common share –
Basic$(0.14)$(0.21)
Diluted$(0.14)$(0.21)
 

Weighted average common shares used in computing per share amounts –

Basic  9,057,326    4,431,589  
Diluted  9,057,326    4,431,589  
 
 
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

For the three months ended March 31, 2015

(Unaudited)

         
Additional

Common Stock

Paid-in Accumulated    

Shares

   

Amount

Capital

Deficit

Total

 
BALANCE, January 1, 2015 4,934,601 $ 4,934 $ 106,442,897 $ (93,299,794) $ 13,148,037
 

Stock-based compensation expense

88,525 88,525

Issuance of common stock, net of costs

4,857,143

4,857 7,625,900 7,630,757

Vesting of restricted stock

34,589 35 (35)
Net loss(1,302,113)(1,302,113)
 
BALANCE, March 31, 20159,826,333$ 9,826$ 114,157,287$ (94,601,907)$ 19,565,206
 
 
INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Three Months Ended March 31,

2015

   

2014

 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,302,113 ) $ (909,684 )

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization 340,321 197,338
Noncash stock-based compensation expense 88,525 2,286
Deferred rent (6,519 ) (7,554 )
Changes in assets and liabilities:
Decrease in accounts receivable 204,853 87,162
Decrease (Increase) in inventory 3,115 (37,110 )
(Increase) Decrease in other current assets (30,115 ) 1,119
Decrease in other assets 9,206
Increase (Decrease) in accounts payable, accrued expenses 132,117 (371,202 )
(Decrease) Increase in deferred revenue  (146,460)  6,365  
Net cash used in operating activities  (707,070)  (1,031,280)
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of patents (125,000 )
Purchases of property and equipment  (28,671)  (11,149)
Net cash used in investing activities  (153,671)  (11,149)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock 7,630,757 3,488,807
Payments on vehicle loan  (1,620)    
Net cash provided by financing activities  7,629,137    3,488,807  
 
Net increase in cash and cash equivalents  6,768,396    2,446,378  
 
CASH AND CASH EQUIVALENTS, beginning of period  2,966,350    224,386  
 
CASH AND CASH EQUIVALENTS, end of period$9,734,746  $2,670,764  
 

Supplemental disclosure of noncash investing and financing activities:

Financing of property and equipment

$ 31,078   $  
 

Earnings Conference Call Information

The Company will hold an earnings conference calltoday, May 6,at 2:00 p.m. EDT/11:00 a.m. PDT to discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. For callers outside the U.S., please dial 201-689-8037. The conference call will also be simultaneously webcast and can be accessed at: http://www.icmobile.com/about/investor-relations/presentations, and clicking on the link to the Webcast. Alternatively, the webcast can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=173960. The webcast will be available for 14 days following the conference call.

About Intellicheck Mobilisa

Intellicheck Mobilisa is a leader in identity verification and validation systems. The Company holds 20 patents pertaining to identification technology. Its identity solutions support customers in the financial, retail, law enforcement, national defense and hospitality markets. The Company’s products scan, authenticate and analyze components of identity documents including driver licenses, military identification cards and other government forms of identification containing magnetic stripe, barcode and smart chip information. For more information on Intellicheck Mobilisa and ICMOBIL, please visit www.icmobile.com.

Safe Harbor Statement

Statements in this news release about Intellicheck Mobilisa’s future expectations, including: the advantages of our products, future demand for Intellicheck Mobilisa’s existing and future products, whether revenue and other financial metrics will improve in future periods, whether Intellicheck Mobilisa will be able to execute its turn-around plan or whether successful execution of the plan will result in increased revenues, whether sales of our products will continue at historic levels or increase, whether brand value and market awareness will grow, whether the Company can leverage existing partnerships or enter into new ones, and all other statements in this release, other than historical facts, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). This statement is included for the express purpose of availing Intellicheck Mobilisa, Inc. of the protections of the safe harbor provisions of the PSLRA. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as market acceptance of Intellicheck Mobilisa’s products, changing levels of demand for Intellicheck Mobilisa’s current and future products, Intellicheck Mobilisa’s ability to reduce or maintain expenses while increasing sales, customer results achieved using our products in both the short and long term, success of future research and development activities, Intellicheck Mobilisa’s ability to successfully manufacture, market and sell its products, Intellicheck Mobilisa’s ability to manufacture its products in sufficient quantities to meet demand within required delivery time periods while meeting its quality control standards, any delays or difficulties in the Company’s supply chain, the success of the Company’s sales and marketing efforts coupled with the typically long sales and implementation cycle for its products, Intellicheck Mobilisa’s ability to enforce its intellectual property rights, changes in laws and regulations applicable to the Company’s products, the Company’s continued ability to access government-provided data, the risks inherent in doing business with the government including audits and contract cancellations, liability resulting from any security breaches or product failure, and other risks detailed from time to time in Intellicheck Mobilisa’s reports filed with the SEC. We do not assume any obligation to update the forward-looking information.

Adjusted EBITDA

Intellicheck Mobilisa uses Adjusted EBITDA as a non-GAAP financial performance measurement. Adjusted EBITDA is calculated by starting with net income (loss) and adding back interest, income taxes, impairments of long-lived assets and goodwill, depreciation, amortization and stock-based compensation expense. Adjusted EBITDA is provided to investors to supplement the results of operations reported in accordance with GAAP. Management believes that Adjusted EBITDA provides an additional tool for investors to use in comparing Intellicheck Mobilisa financial results with other companies that also use Adjusted EBITDA in their communications to investors. By excluding non-cash charges such as impairments of long-lived assets and goodwill, amortization, depreciation and stock-based compensation, as well as non-operating charges for interest and income taxes, investors can evaluate the Company’s operations and compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures that management uses to monitor and evaluate financial and operating results.

Intellicheck Mobilisa considers Adjusted EBITDA to be an important indicator of the Company’s operational strength and performance of its business and a useful measure of the Company’s historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA, because it excludes interest income and expense, impairments of long-lived assets and goodwill, and stock based compensation expense, all of which impact the Company’s profitability, as well as depreciation and amortization related to the use of long-term assets, which benefit multiple periods. Intellicheck Mobilisa believes that these limitations are compensated by providing Adjusted EBITDA only as a supplement to GAAP net income (loss) and clearly identifying the difference between the two measures. Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net income (loss) presented in accordance with GAAP. Adjusted EBITDA as defined by the Company may not be comparable with similarly named measures provided by other entities.

Intellicheck Mobilisa, Inc.
Sharon Schultz, 302-539-3747
Media & Investor Relations
sharon.schultz@icmobile.com