Intellicheck Announces Fourth Quarter and Full-Year 2023 Financial Results

MELVILLE, NY – March 21, 2024 – Intellicheck, Inc. (Nasdaq: IDN), an industry-leading identity company delivering on-demand digital and physical identity validation solutions, today announced its financial results for the fourth quarter and full-year ended December 31, 2023. Total revenue for thefourth quarter ended December 31, 2023 grew 14% to $5,176,000 compared to $4,551,000 in the same period of 2022. Quarter-over-Quarter SaaS revenue grew 13% and totaled $5,069,000compared to $4,479,000 in the same period of 2022 and grew 9% sequentially over the third quarter of 2023.

“We anticipate continued growth driven by our expectations from our pipeline and the number of deals anticipated to go live in Q2 and Q3. We believe that we are on the cusp of a number of sizeable revenue generators that will really move the needle in the back half of the year. These include the addition of new retailers with our long standing bank partners, global media companies, auto, title and now crypto currency, our latest vertical. Additionally, we have made important progress in strengthening our organization with the addition of a new CTO, a new leader for our Channel andTechnology Alliances, and a new Vice President of Marketing. We remain committed to giving our clients the innovative tools that allow them to onboard more customers quickly and easily while fundamentally eliminating fraud and building value for our shareholders,” said Intellicheck CEO BryanLewis.

Gross profit as a percentage of revenues was 94.9% for the three months ended December 31, 2023compared to 94.8% in the same period in 2022.

Operating expenses for the three months ended December 31, 2023, which consist of selling, general and administrative expenses and research and development expenses, decreased 15% to$4,291,000 for the fourth quarter of 2023 compared to $5,054,000 for the same period of 2022.Included within operating expenses for the fourth quarters of 2023 and 2022 were $249,000 and$687,000, respectively, of non-cash equity compensation expense.

Net income for the three months ended December 31, 2023 improved to $757,000 or $0.04 per diluted share compared to Net loss of ($869,000) or ($0.05) per diluted share for the same period in2022.

Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales taxaccrual, depreciation, amortization, stock-based compensation expense and certain non-recurringcharges) improved to $1,169,000 for the fourth quarter of 2023 as compared to $389,000 for thesame period of 2022. A reconciliation of adjusted EBITDA to net loss is provided in this release.

Full Year 2023 Results

Total revenue for the full year ended December 31, 2023 increased 18% to $18,906,000 compared to$15,966,000 in the same period of 2022. Year-over-year SaaS revenue grew 18% and totaled$18,595,000 compared to $15,728,000 in the same period of 2022.

Gross profit as a percentage of revenue was 92.7% for the year ended December 31, 2023 comparedto 92.0% in the same period of 2022. The increase in gross profit percentage was primarily driven byour concentration of SaaS-based revenues.

Operating expenses for the year ended December 31, 2023 were $19,807,000 compared to$18,721,000 for the same period of 2022. Included within operating expenses for the full years of2023 and 2022 were $1,596,000 and $2,455,000, respectively, of non-cash equity compensationexpense.

Net loss for the year ended December 31, 2023 was ($1,980,000) or ($0.10) per diluted sharecompared to a net loss of ($4,159,000) or ($0.22) per diluted share in the same period of 2022. Adjusted EBITDA (earnings before interest and other income, provision for income taxes, sales taxaccrual, depreciation, amortization, stock-based compensation expense and certain non-recurringcharges) was $377,000 for the year ended December 31, 2023 compared to ($924,000) for the sameperiod of 2022. A reconciliation of adjusted EBITDA to net loss is provided in this release.

As of December 31, 2023, the Company had cash and short-term investments in the form of U.S.Treasuries that totaled $9.0 million, and stockholders’ equity totaled $17.3 million.The financial results reported today do not consider any adjustments that may be required inconnection with the completion of the Company’s audit process and should be considered preliminaryuntil Intellicheck files its Form 10-K for the fiscal year ended December 31, 2023.

Conference Call Information

The Company will hold an earnings conference call on March 21, 2024 at 4:30 p.m. ET/1:30 p.m. PTto discuss operating results. To listen to the earnings conference call, please dial 877-407-8037. Forcallers outside the U.S., please dial 201-689-8037.

A replay of the conference call will be available shortly after completion of the live event. To listen tothe replay, please dial 877-660-6853 and use conference identification number 13743896 For callersoutside the U.S., please dial 201-612-7415 and use conference identification number 13743896. Thereplay will be available beginning approximately two hours after the completion of the live event andwill remain available until March 28, 2024.