Fourth Quarter Revenues Increase 39% Over Prior Year Q4
Full Year Revenues Up 6% Over Prior Year
Intellicheck
Mobilisa, Inc. (NYSE MKT:IDN), a leader in threat identification,
identity authentication, verification and validation solutions, today
announced its financial results for the fourth quarter and full-year
ended December 31, 2015.
Revenue for the fourth quarter ended December 31, 2015 increased 39.0%
to $1,536,496 compared to $1,105,622 in the same period of the previous
year. During the third quarter of 2015, the Company sold its wireless
division. Excluding the revenue generated from the wireless division
from last year’s comparable period, sales were up 42% for the fourth
quarter. The Company’s booked orders for the three months ended December
31, 2015, excluding the $42,000 in wireless bookings from the prior
year’s comparable period, increased 4% to $968,000. Approximately
80% of the Company’s bookings were attributable to its commercial
products. Gross profit as a percentage of revenues was 63.6% for the
three months ended December 31, 2015 compared to 32.1% for the three
months ended December 31, 2014.
"Our fourth quarter revenue increase reflects the important successes we
have achieved in growing product traction and market scope. We attribute
our progress to the focused execution of our strategic plan that we
believe will position us to achieve profitable, sustainable long term
growth, while maximizing shareholder value," commented Dr. William Roof,
CEO of Intellicheck.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and certain non-recurring charges) was a loss of $1,140,415
for the fourth quarter of 2015 compared to a loss of $873,466 for the
fourth quarter of 2014. A reconciliation of adjusted EBITDA to net
income is provided elsewhere in this release. The net loss for the three
months ended December 31, 2015 was $1,550,068 or $0.16 per diluted share
compared to a net loss of $5,961,222 or $1.24 per diluted share for the
quarter ended December 31, 2014. In the fourth quarter of 2014, the
Company took a goodwill impairment charge in the amount of $4.2 million.
Excluding the goodwill write-down, the comparable net loss for the three
months would have been $1,754,222 or $0.37 per diluted share.
Revenue for the full year ended December 31, 2015 increased 6% to
$7,014,665 compared to $6,613,056 in the previous year. As previously
mentioned, the Company sold its wireless division in 2015 that accounted
for $369,000 in revenue during fiscal 2015 and $963,000 in revenue in
the prior year period. Excluding the revenue generated from the wireless
division from both periods, sales were up 18% year over year. Gross
profit as a percentage of revenue was down slightly to 57.1% for the
year ended December 31, 2015 compared to 58.2% for the year ended
December 31, 2014.
"We are pushing forward with key initiatives that we believe will fuel
growth at a time when domestic and international security challenges
represent growing opportunities for our innovative products that address
critical needs. With our strong product suite, strengthened operations,
and financial discipline, we expect to continue to see a positive
revenue pattern that will reflect growing product adoption and market
penetration," noted Dr. Roof.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization and certain non-recurring charges) was a loss of $3,581,418
for fiscal 2015 compared to a loss of $2,091,820 for fiscal 2014. A
reconciliation of adjusted EBITDA to net income is provided elsewhere in
this release. The net loss for the fiscal year ended December 31, 2015
was $5,333,951 or $0.55 per diluted share compared to a net loss of
$7,644,230 or $1.59 per diluted share for the fiscal year ended December
31, 2014. As previously mentioned, in the fourth quarter of 2014, the
Company took a goodwill impairment charge in the amount of $4.2 million.
Excluding the goodwill write-down, the comparable net loss for the 2014
fiscal year would have been $3,437,230 or $0.72 per diluted share.
As of December 31, 2015, and excluding the wireless division backlog,
the Company’s backlog, which represents non-cancelable sales orders for
products not yet shipped and services to be performed, decreased 15%, to
approximately $197,000.
Cash and cash equivalents at the end of fiscal 2015 totaled $6.0 million
or $0.60 per diluted share. Stockholders’ equity totaled $16.3 million
at the end of the fiscal year or $1.65 per diluted share.
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-K for the fiscal year ended
December 31, 2015.
|
INTELLICHECK MOBILISA, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
DECEMBER 31, 2015 and 2014
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
5,953,257
|
|
|
$
|
2,966,350
|
|
Accounts receivable, net of allowance of $18,411 and $78,724 as of
December 31, 2015 and 2014, respectively
|
|
|
1,158,972
|
|
|
|
792,072
|
|
Inventory
|
|
|
74,732
|
|
|
|
115,021
|
|
Other current assets
|
|
|
178,362
|
|
|
|
108,884
|
|
Total current assets
|
|
|
7,365,323
|
|
|
|
3,982,327
|
|
|
|
|
|
|
NOTE RECEIVABLE, net of current portion
|
|
|
150,496
|
|
|
|
-
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
325,427
|
|
|
|
346,915
|
|
GOODWILL
|
|
|
8,101,661
|
|
|
|
8,101,661
|
|
INTANGIBLE ASSETS, net
|
|
|
2,470,127
|
|
|
|
3,307,797
|
|
OTHER ASSETS
|
|
|
59,800
|
|
|
|
75,007
|
|
|
|
|
|
|
Total assets
|
|
$
|
18,472,834
|
|
|
$
|
15,813,707
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Accounts payable
|
|
$
|
260,276
|
|
|
$
|
45,193
|
|
Accrued expenses
|
|
|
536,316
|
|
|
|
915,809
|
|
Deferred revenue, current portion
|
|
|
909,233
|
|
|
|
1,141,069
|
|
Total current liabilities
|
|
|
1,705,825
|
|
|
|
2,102,071
|
|
|
|
|
|
|
OTHER LIABILITIES
|
|
|
|
|
Deferred revenue, long-term portion
|
|
|
341,242
|
|
|
|
435,153
|
|
Deferred rent
|
|
|
99,355
|
|
|
|
128,446
|
|
|
|
|
|
|
Total liabilities
|
|
|
2,146,422
|
|
|
|
2,665,670
|
|
|
|
|
|
|
COMMITMENTS AND CONTINIGENCIES
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
Common stock – $.001 par value; 40,000,000 shares authorized;
9,878,906 and 4,934,601 shares issued and outstanding as of December
31, 2015 and 2014, respectively
|
|
|
9,879
|
|
|
|
4,934
|
|
Additional paid-in capital
|
|
|
114,950,278
|
|
|
|
106,442,897
|
|
Accumulated deficit
|
|
|
(98,633,745
|
)
|
|
|
(93,299,794
|
)
|
Total stockholders’ equity
|
|
|
16,326,412
|
|
|
|
13,148,037
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
18,472,834
|
|
|
$
|
15,813,707
|
|
|
|
|
|
|
|
|
|
|
|
INTELLICHECK MOBILISA, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
REVENUES
|
|
$
|
7,014,665
|
|
|
$
|
6,613,056
|
|
COST OF REVENUES
|
|
|
(3,006,359
|
)
|
|
|
(2,763,432
|
)
|
Gross profit
|
|
|
4,008,306
|
|
|
|
3,849,624
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
Selling
|
|
|
1,449,803
|
|
|
|
1,374,004
|
|
General and administrative
|
|
|
5,444,034
|
|
|
|
4,090,642
|
|
Research and development
|
|
|
2,594,678
|
|
|
|
1,823,147
|
|
Goodwill impairment
|
|
|
-
|
|
|
|
4,207,000
|
|
|
|
|
|
|
Total operating expenses
|
|
|
9,488,515
|
|
|
|
11,494,793
|
|
|
|
|
|
|
Loss from operations
|
|
|
(5,480,209
|
)
|
|
|
(7,645,169
|
)
|
|
|
|
|
|
OTHER INCOME
|
|
|
|
|
Interest and other income
|
|
|
149,575
|
|
|
|
939
|
|
Interest expense
|
|
|
(3,317
|
)
|
|
|
-
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,333,951
|
)
|
|
$
|
(7,644,230
|
)
|
|
|
|
|
|
PER SHARE INFORMATION:
|
|
|
|
|
Loss per common share -
|
|
|
|
|
Basic
|
|
$
|
(0.55
|
)
|
|
$
|
(1.59
|
)
|
Diluted
|
|
$
|
(0.55
|
)
|
|
$
|
(1.59
|
)
|
|
|
|
|
|
Weighted average common shares used in computing per share amounts -
|
|
|
|
|
Basic
|
|
|
9,658,346
|
|
|
|
4,801,059
|
|
Diluted
|
|
|
9,658,346
|
|
|
|
4,801,059
|
|
|
|
|
|
|
|
|
|
|
|
INTELLICHECK MOBILISA, INC.
|
|
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
|
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2015
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
Common Stock
|
|
Paid-in
|
|
Accumulated
|
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, December 31, 2013
|
|
3,486,557
|
|
$
|
3,487
|
|
$
|
101,008,381
|
|
|
$
|
(85,655,564
|
)
|
|
$
|
15,356,304
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense (employees and directors)
|
|
2,544
|
|
|
2
|
|
|
188,638
|
|
|
|
-
|
|
|
|
188,640
|
|
Issuance of common stock, net of costs
|
|
1,445,500
|
|
|
1,445
|
|
|
5,245,878
|
|
|
|
-
|
|
|
|
5,247,323
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(7,644,230
|
)
|
|
|
(7,644,230
|
)
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, December 31, 2014
|
|
4,934,601
|
|
$
|
4,934
|
|
$
|
106,442,897
|
|
|
$
|
(93,299,794
|
)
|
|
$
|
13,148,037
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense (employees and directors)
|
|
-
|
|
|
-
|
|
|
878,112
|
|
|
|
-
|
|
|
|
878,112
|
|
Issuance of common stock, net of costs
|
|
4,857,143
|
|
|
4,857
|
|
|
7,625,900
|
|
|
|
-
|
|
|
|
7,630,757
|
|
Exercise of stock options
|
|
313
|
|
|
1
|
|
|
3,456
|
|
|
|
-
|
|
|
|
3,457
|
|
Vesting of restricted stock
|
|
86,849
|
|
|
87
|
|
|
(87
|
)
|
|
|
-
|
|
|
|
-
|
|
Net loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
(5,333,951
|
)
|
|
|
(5,333,951
|
)
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, December 31, 2015
|
|
9,878,906
|
|
$
|
9,879
|
|
$
|
114,950,278
|
|
|
$
|
(98,633,745
|
)
|
|
$
|
16,326,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTELLICHECK MOBILISA, INC.
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014
|
|
|
|
|
|
|
|
2015
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,333,951
|
)
|
|
$
|
(7,644,230
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
1,020,679
|
|
|
|
1,157,709
|
|
Non cash stock based compensation expense
|
|
|
878,112
|
|
|
|
188,640
|
|
Non cash change in provision for doubtful accounts
|
|
|
(60,313
|
)
|
|
|
78,724
|
|
Gain on sale of wireless assets
|
|
|
(108,825
|
)
|
|
|
-
|
|
Gain on sale of property and equipment
|
|
|
(31,500
|
)
|
|
|
-
|
|
Deferred rent
|
|
|
(29,091
|
)
|
|
|
(35,307
|
)
|
Impairment of goodwill
|
|
|
-
|
|
|
|
4,207,000
|
|
(Increase) Decrease in accounts receivable
|
|
|
(306,587
|
)
|
|
|
170,724
|
|
Decrease (Increase) in inventory
|
|
|
40,289
|
|
|
|
(60,344
|
)
|
(Increase) in other current assets
|
|
|
(30,127
|
)
|
|
|
(1,365
|
)
|
Decrease (Increase) in other assets
|
|
|
15,207
|
|
|
|
(3,000
|
)
|
(Decrease) in accounts payable and accrued expenses
|
|
|
(164,410
|
)
|
|
|
(807,015
|
)
|
(Decrease) Increase in deferred revenue
|
|
|
(325,747
|
)
|
|
|
374,578
|
|
Net cash used in operating activities
|
|
|
(4,436,264
|
)
|
|
|
(2,373,886
|
)
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(126,618
|
)
|
|
|
(131,473
|
)
|
Purchases of patents
|
|
|
(125,000
|
)
|
|
|
-
|
|
Proceeds from sale of property and equipment
|
|
|
31,500
|
|
|
|
-
|
|
Proceeds from sale of wireless assets
|
|
|
30,000
|
|
|
|
-
|
|
Collections on note receivable
|
|
|
12,633
|
|
|
|
-
|
|
Net cash used in investing activities
|
|
|
(177,485
|
)
|
|
|
(131,473
|
)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
Net proceeds from the issuance of common stock
|
|
|
7,630,757
|
|
|
|
5,247,323
|
|
Net proceeds from issuance of common stock from exercise of stock
options
|
|
|
977
|
|
|
|
-
|
|
Payments on note payable
|
|
|
(31,078
|
)
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
7,600,656
|
|
|
|
5,247,323
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
2,986,907
|
|
|
|
2,741,964
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, beginning of year
|
|
|
2,966,350
|
|
|
|
224,386
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, end of year
|
|
$
|
5,953,257
|
|
|
$
|
2,966,350
|
|
|
|
|
|
|
Supplemental disclosure of noncash investing and financing
activities:
|
|
|
|
|
Issuance of note receivable related to sale of wireless assets
|
|
$
|
200,000
|
|
|
$
|
-
|
|
Financing of property and equipment
|
|
$
|
31,078
|
|
|
$
|
-
|
|
Covenant not to compete
|
|
$
|
-
|
|
|
$
|
587,500
|
|
|
|
|
|
|
|
A reconciliation of GAAP net loss to Adjusted EBITDA follows:
|
|
|
|
Year Ended December 31,
|
|
|
(Unaudited)
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Net loss
|
|
$
|
(5,333,951
|
)
|
|
$
|
(7,644,230
|
)
|
Reconciling items:
|
|
|
|
|
Interest and other (income) expense
|
|
|
(146,258
|
)
|
|
|
(939
|
)
|
Depreciation and amortization
|
|
|
1,020,679
|
|
|
|
1,157,709
|
|
Stock-based compensation costs
|
|
|
878,112
|
|
|
|
188,640
|
|
Impairment of goodwill
|
|
|
-
|
|
|
|
4,207,000
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
(3,581,418
|
)
|
|
$
|
(2,091,820
|
)
|
|
|
|
|
|
|
|
|
|
Earnings Conference Call Information
The Company will hold an earnings conference call today, March
22, 2016, at 1:00 p.m. eastern time/10:00 a.m. pacific time to
discuss operating results. To listen to the 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.investorcalendar.com/IC/CEPage.asp?ID=174752
and clicking on the link to the Webcast. The webcast will be available
for 14 days following the conference call.
About Intellicheck Mobilisa
Intellicheck Mobilisa is an industry leader in threat identification,
identity authentication, verification and validation systems. Our
technology makes it possible for our customers to enhance the safety and
awareness of their facilities and people, improve customer service, and
increase operational efficiencies. Founded in 1994, Intellicheck has
grown to serve dozens of Fortune 500 companies including retail and
financial industry clients, national defense clients at agencies, major
seaports, and military bases, police departments, and diverse state and
federal government agencies. For more information on Intellicheck
Mobilisa, please visit http://www.intellicheck.com/.
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.
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.
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