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Intellicheck Mobilisa Reports Fourth Quarter and Full Year 2013 Financial Results

Intellicheck Mobilisa, Inc. (NYSE MKT:IDN), a global leader in identity solutions and wireless security systems, has released its financial results for the fourth quarter and full year ended December 31, 2013.

Financial Highlights for the Fourth Quarter and Full Year 2013:

  • Revenue for the quarter ended December 31, 2013 increased 159% to $1,366,000 from $528,000 in the fourth quarter 2012. For the year ending 2013, revenue was $7,299,000 compared with $8,803,000 in 2012.
  • Adjusted EBITDA for the fourth quarter 2013 was ($330,000) compared to ($1,680,000) in the fourth quarter 2012. For the year 2013, adjusted EBITDA was ($1,324,000) compared with ($1,114,000) in 2012.
  • Net loss for the quarter was ($600,000) or ($0.02) per share, compared with a net loss of ($1,955,000) or ($0.07) per share in the fourth quarter 2012. For the year, net loss was ($2,424,000) or ($0.09) per share, compared with a net loss of ($2,260,000) or ($0.08) per share in 2012.

Highlights for the Fourth Quarter 2013 and Subsequent Months:

Business Initiatives

  • The Company successfully completed a secondary offering of its common stock in January 2014, raising approximately $3.6 million in net proceeds that are being used to fund its continued research and development initiatives to expand and improve its product line, and significantly increase its sales and marketing groups.
  • Its $2 million line of credit with Silicon Valley Bank was renewed.

Product and Technology Initiatives

  • Installed its IM2620h Prox-PACS readers, one of the most advanced ID readers in the world, at one of the nation’s most secure facilities.
  • Launched the barZapp™ 2.0 mobile app for iPhones and Android.
  • Launched test for its new “State Aware Software” ID scanning product at 400 locations of a major nationwide retail chain. This software facilitates compliance with state requirements and the appropriate use of ID data, helping nationwide retailers comply with regulations.
  • With the launch of MexiScan ID Check, the Company now offers Mexican and U.S. clients the ability to authenticate Mexican IDs, expanding Intellicheck Mobilisa’s footprint to cover all of North America.
  • The Company was issued two new patents, strengthening its intellectual property, bringing the total number of patents issued to 18.

Dr. Nelson Ludlow, President and CEO of Intellicheck Mobilisa, commented, “The past several months have been eventful ones for our company from a financial, corporate and business perspective, as we continued to pursue our objective of becoming the leading developer and distributor of document and age verification products. On the financial and business front, we successfully completed a secondary public offering of our common stock, which provided us approximately $3.6 million in net proceeds, most of which will go toward the marketing and sales of our software and technologies. That offering also helped us to expand our shareholder base. Following the completion of the offering, we added to our sales and marketing staff, and entered 2014 with a stronger, vertically aligned team to penetrate our core markets, specifically law enforcement as well as commercial businesses. We also renewed our $2 million line of credit with Silicon Valley Bank, and were pleased to receive their continuing commitment to our business.

“Over the past several months we have begun to roll out and implement our new cloud computing business model. We believe our new Software as a Service (SaaS) model will help ensure better customer service, be far less expensive to support, enable us to focus on higher-margin software sales and provide better financial controls and predictability to our business,” Dr. Ludlow added.

He concluded, “With what we believe is a growing need for identity verification software in both the commercial and law enforcement markets, we feel we offer one of the most reliable and affordable technologies to serve the needs of our growing customer base.”

Conference Call Information

The Company will hold an earnings conference call today at 11:00 am ET/8:00 am PT 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. For those unable to participate in the live conference, a recording will be available for 48 hours after the call. The rebroadcast can be accessed by dialing (877) 660-6853 and (201) 612-7415 for international callers. The conference replay ID is 13576248. The conference call will also be simultaneously webcast, and can be accessed at:

The webcast will be available for 14 days following the conference call.

About Intellicheck Mobilisa

Intellicheck Mobilisa is a leading technology company providing wireless technology and identity systems for various applications, including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Fugitive Finder system, an advanced ID card access control product currently protecting military bases and secure federal locations; ID Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issued IDs, designed to improve the Customer Experience for the financial, hospitality and retail sectors; barZapp™, an ID-checking mobile app that allows a user’s smartphone to check an ID card. For more information on Intellicheck Mobilisa, please visit

Safe Harbor Statement

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press release, words such as “will,” “believe,” “expect,” “anticipate,” “encouraged,” and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company’s management identify forward-looking statements. Actual results may differ materially from the information presented here. Additional information concerning forward-looking statements is contained under the heading of risk factors listed from time to time in the company’s filings 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 adding back to net income (loss) 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 can compare its results on a more consistent basis to the results of other companies. In addition, adjusted EBITDA is one of the primary measures 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 since it excludes interest income and expense, impairments of long lived assets and goodwill, 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 with 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. A reconciliation of Adjusted EBITDA to GAAP net income or loss is included in the enclosed schedule.





DECEMBER 31, 2013 and 2012







Cash and cash equivalents $ 224,386 $ 1,685,879
Accounts receivable, net of allowance of $0 and $1,613 1,041,519 869,747
Inventory 54,677 337,559
Other current assets   107,519     105,881  
Total current assets 1,428,101 2,999,066
PROPERTY AND EQUIPMENT, net 369,095 449,438
GOODWILL 12,308,661 12,308,661
INTANGIBLE ASSETS, net 3,724,354 4,631,577
OTHER ASSETS   72,006     72,006  
Total assets $ 17,902,217   $ 20,460,748  


Accounts payable $ 478,588 $ 247,289
Accrued expenses 701,928 556,814
Deferred revenue, current portion   967,912     1,450,923  
Total current liabilities 2,148,428 2,255,026
Deferred revenues, long-term portion 233,732 341,948
Deferred rent   163,753     185,339  
Total liabilities 2,545,913 2,782,313
Common stock – $.001 par value; 40,000,000 shares authorized; 27,897,467 and
27,724,267 shares issued and outstanding as of 2013 and 2012 , respectively 27,897 27,724
Additional paid-in capital 100,983,971 100,882,019
Accumulated deficit   (85,655,564 )   (83,231,308 )
Total stockholders’ equity   15,356,304     17,678,435  
Total liabilities and stockholders’ equity $ 17,902,217   $ 20,460,748  








REVENUES $ 7,298,537 $ 8,803,217
COST OF REVENUES   (2,772,984 )   (3,001,997 )
Gross profit 4,525,553 5,801,220
Selling 1,096,486 1,613,819
General and administrative 3,796,735 4,209,385
Research and development   2,056,744     2,239,011  
Total operating expenses   6,949,965     8,062,215  
Loss from operations (2,424,412 ) (2,260,995 )
Interest income 156 909
Net loss $ (2,424,256 ) $ (2,260,086 )
Net loss per common share
Basic $ (0.09 ) $ (0.08 )
Diluted $ (0.09 ) $ (0.08 )
Weighted average common shares used in computing
per share amounts
Basic   27,828,699     27,724,267  
Diluted   27,828,699     27,724,267  




Common Stock Paid-in Accumulated






BALANCE, December 31, 2011 27,462,504 $ 27,462 $ 100,699,156 $ (80,971,222 ) $ 19,755,396
Stock based compensation expense (employees and directors) - - 52,677 - 52,677
Exercise of stock options 261,763 262 130,186 - 130,448
Net loss -   -   -   (2,260,086 )   (2,260,086 )
BALANCE, December 31, 2012 27,724,267 27,724 100,882,019 (83,231,308 ) 17,678,435
Stock based compensation expense (employees and directors) - - 19,053 - 19,053
Exercise of stock options 153,200 153 70,319 - 70,472
Issuance of common stock 20,000 20 12,580 - 12,600
Net loss -   -   -   (2,424,256 )   (2,424,256 )
BALANCE, December 31, 2013 27,897,467 $ 27,897 $ 100,983,971 $ (85,655,564 ) $ 15,356,304  








Net loss $ (2,424,256 ) $ (2,260,086 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization 1,068,408 1,094,173
Non cash stock based compensation expense 31,653 52,677
Provision for doubtful accounts - (3,271 )
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (171,772 ) 2,192,312
Decrease (increase) in inventory 282,882 (325,665 )
(Increase) decrease in other current assets (1,637 ) 2,888
Increase (decrease) in accounts payable and accrued expenses 376,413 (92,823 )
(Decrease) in deferred revenue (591,227 ) (305,200 )
(Decrease) in deferred rent   (21,587 )   (9,420 )
Net cash (used in) provided by operating activities   (1,451,123 )   345,585  
Purchases of property and equipment   (80,842 )   (184,303 )
Net cash (used in) investing activities   (80,842 )   (184,303 )
Net proceeds from issuance of common stock from exercise of stock options
and warrants   70,472     130,448  
Net cash provided by financing activities   70,472     130,448  
Net (decrease) increase in cash and cash equivalents (1,461,493 ) 291,730
CASH AND CASH EQUIVALENTS, beginning of year   1,685,879     1,394,148  
CASH AND CASH EQUIVALENTS, end of year $ 224,386   $ 1,685,878  

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