IntelliCheck Inc (IDN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Intellicheck Inc has a market cap of $37.8 million; its shares were traded at around $1.43 with and P/S ratio of 3. IDN is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP.
Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 21% to $2,595,000 for the three months ended June 30, 2010 from $2,153,000 for the three months ended June 30, 2009. Selling expenses decreased by $143,000 principally as a result of lower commissions on the decreased revenue levels. General and administrative expenses increased by $632,000 principally due to increased payroll costs including new hires, contracted consulting fees to the former Positive Access principals, legal fees related litigation, contract review and shelf registration statement and additional Board and consulting fees. Research and development costs decreased by $46,000, principally as a result of a reduction in allocated time to R&D projects due to lower Wireless revenues. As the Company experiences sales growth, we expect that we will incur additional operating expenses to support this growth, including the hiring of additional salespersons and increasing marketing campaigns. Research and development expenses may also increase as the level of research and development projects increase and we continue to integrate additional products and technologies with our patented ID-Check technology.
Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 26% to $5,157,000 for the six months ended June 30, 2010 from $4,107,000 for the six months ended June 30, 2009. Consolidated selling expenses decreased 7% to $953,000 for the six months ended June 30, 2010 from $1,028,000 for the six months ended June 30, 2009, principally as a result of lower sales commissions. General and administrative expenses increased 61% to $2,815,000 for the six months ended June 30, 2010 from $1,748,000 for the six months ended June 30, 2009, principally due to increased payroll costs, contracted consulting fees to the former Positive Access principals, legal fees related to litigation and shelf registration statement and additional Board and consulting fees and higher intangible amortization. Research and development expenses increased 4% to $1,389,000 for the six months ended June 30, 2010 from $1,331,000 for the six months ended June 30, 2009, principally a result of salary increases.
As a result of the factors noted above, our net loss increased from $62,000 for the six months ended June 30, 2009 to $1,422,000 for the six months ended June 30, 2010.
As of June 30, 2010, the Company had cash and cash equivalents of $2,278,000, working capital (defined as current assets minus current liabilities) of $1,445,000, total assets of $24,564,000 and stockholders equity of $20,534,000.
During the six months ended June 30, 2010, the Company used net cash of $743,000 in operating activities compared to $836,000 during the six months ended June 30, 2009. This decrease in 2010 is primarily a result of a higher net loss for the first half of 2010, partially offset by higher non-cash charges and changes in working capital. Cash used by investing activities was $136,000 in the first half of 2010 compared to $107,000 in the same period last year. The use of cash for the 2010 period reflects capital expenditures principally related to equipment purchases and leasehold improvements. Cash provided by financing activities was $148,000 in the period ended June 30, 2010 compared to $16,000 in the same period last year. The increase in 2010 is a result of higher proceeds from the exercise of stock options.
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Intellicheck Inc has a market cap of $37.8 million; its shares were traded at around $1.43 with and P/S ratio of 3. IDN is in the portfolios of Louis Moore Bacon of Moore Capital Management, LP.
Highlight of Business Operations:
The decrease in Identity Systems revenues in the second quarter of 2010 is primarily a result of approximately $1.1 million in sales to a telecommunications company in the second quarter of 2009, including an enterprise wide software license and hardware sales. The decrease in Wireless R&D revenues is due to the completion of our RadHaz military contract, lower buoy equipment purchases and a reallocation of our software engineering resources to Identity Systems projects. Total booked orders were $2.0 million in the second quarter of 2010 compared to $2.7 million in the second quarter of 2009. As of June 30, 2010, our backlog, which represents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $4.9 compared to $7.3 million at June 30, 2009. Previously, the Company recorded in backlog certain Wireless R&D contracts when the award is announced and included in the congressional budget with the Company named as the requestor. As of June 30, 2010, management reduced the current period backlog by $3.3 million. This was done because Congress announced that earmarks awarded to public companies in FY 2010 are now subject to competition, even when the government had previously determined that a sole-source justification was the best option. Therefore, we will now be competing for the FY 2010 earmark for Littoral Sensor Grid. The entire backlog is expected to be realized over the next twelve to eighteen months.Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 21% to $2,595,000 for the three months ended June 30, 2010 from $2,153,000 for the three months ended June 30, 2009. Selling expenses decreased by $143,000 principally as a result of lower commissions on the decreased revenue levels. General and administrative expenses increased by $632,000 principally due to increased payroll costs including new hires, contracted consulting fees to the former Positive Access principals, legal fees related litigation, contract review and shelf registration statement and additional Board and consulting fees. Research and development costs decreased by $46,000, principally as a result of a reduction in allocated time to R&D projects due to lower Wireless revenues. As the Company experiences sales growth, we expect that we will incur additional operating expenses to support this growth, including the hiring of additional salespersons and increasing marketing campaigns. Research and development expenses may also increase as the level of research and development projects increase and we continue to integrate additional products and technologies with our patented ID-Check technology.
Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 26% to $5,157,000 for the six months ended June 30, 2010 from $4,107,000 for the six months ended June 30, 2009. Consolidated selling expenses decreased 7% to $953,000 for the six months ended June 30, 2010 from $1,028,000 for the six months ended June 30, 2009, principally as a result of lower sales commissions. General and administrative expenses increased 61% to $2,815,000 for the six months ended June 30, 2010 from $1,748,000 for the six months ended June 30, 2009, principally due to increased payroll costs, contracted consulting fees to the former Positive Access principals, legal fees related to litigation and shelf registration statement and additional Board and consulting fees and higher intangible amortization. Research and development expenses increased 4% to $1,389,000 for the six months ended June 30, 2010 from $1,331,000 for the six months ended June 30, 2009, principally a result of salary increases.
As a result of the factors noted above, our net loss increased from $62,000 for the six months ended June 30, 2009 to $1,422,000 for the six months ended June 30, 2010.
As of June 30, 2010, the Company had cash and cash equivalents of $2,278,000, working capital (defined as current assets minus current liabilities) of $1,445,000, total assets of $24,564,000 and stockholders equity of $20,534,000.
During the six months ended June 30, 2010, the Company used net cash of $743,000 in operating activities compared to $836,000 during the six months ended June 30, 2009. This decrease in 2010 is primarily a result of a higher net loss for the first half of 2010, partially offset by higher non-cash charges and changes in working capital. Cash used by investing activities was $136,000 in the first half of 2010 compared to $107,000 in the same period last year. The use of cash for the 2010 period reflects capital expenditures principally related to equipment purchases and leasehold improvements. Cash provided by financing activities was $148,000 in the period ended June 30, 2010 compared to $16,000 in the same period last year. The increase in 2010 is a result of higher proceeds from the exercise of stock options.
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