IntelliCheck Inc (IDN, Financial) filed Quarterly Report for the period ended 2009-09-30.
Intellicheck Mobilisa is a leading technology company, developing and marketing wireless technology and identity systems for various applications including: mobile and handheld wireless devices for the government, military and commercial markets. Products include the Defense ID system, an advanced ID card access control product currently protecting over 70 military and federal locations. ID-Check is a technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 U.S. and Canadian jurisdictions to determine if the content and format are valid. The company's products are used to address government and commercial fraud, focusing on age verification, secure access control and software tools, driver's license readers, and ID validation markets. Intelli-Check Mobilisa sells its products through its direct sales force and marketing partners. The company is headquartered in Port Townsend, Washington. Intellicheck Inc has a market cap of $40.9 million; its shares were traded at around $1.56 with and P/S ratio of 4.1.
Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 9.7% to $2,287,000 for the three months ended September 30, 2009 from $2,085,000 for the three months ended September 30, 2008. Selling expenses increased by $55,000 principally as a result of an increase in personnel and higher commissions on the increased revenue levels. General and administrative expenses increased by $146,000 principally due to an increase in investor relations and consulting fees. Research and development costs increased by $2,000. 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 participation in more trade shows. 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.
As a result of the factors noted above, our net income was $110,000 for the three months ended September 30, 2009 as compared to $167,000 for the three months ended September 30, 2008.
Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 21.4% to $6,394,000 for the nine months ended September 30, 2009 from $5,265,000 for the nine months ended September 30, 2008. Consolidated selling expenses increased 31.1% to $1,537,000 for the nine months ended September 30, 2009 from $1,172,000 for the nine months ended September 30, 2008. General and administrative expenses increased 18.2% to $2,840,000 for the nine months ended September 30, 2009 from $2,402,000 for the nine months ended September 30, 2008. Research and development expenses increased 19.3% to $2,017,000 for the nine months ended September 30, 2009 from $1,691,000 for the nine months ended September 30, 2008. Generally, the higher increases in expenses in the current period is because the 2008 period only include Mobilisa operating expenses for a period of 6.5 months.
As of September 30, 2009, the Company had cash and cash equivalents of $3,345,000, working capital (defined as current assets minus current liabilities) of $2,451,000, total assets of $26,760,000 and stockholders equity of $22,185,000. The Company currently is not utilizing any bank financing.
On August 31, 2009, the Company acquired 100% of the common stock of Positive Access Corporation, the leading competitor to Intellicheck Mobilisa for developing drivers license reading software for $2,080,000. The terms include cash payments of $1,225,000, payable $625,000 at August 31, 2009, $400,000 at August 31, 2010 and $200,000 at August 31, 2011. The notes payable have been recorded in the financial statements net of deferred debt discount of $40,000. In addition, the Company issued 608,520 shares of common stock valued at $882,000 (based on the closing stock price on August 31, 2009) plus direct issue costs of $13,000. Acquisition related costs of approximately $35,000 were expensed in connection with this transaction. The transaction was accounted for using the purchase method of accounting. The initial cash payments were funded out of the operating cash of the Company.
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Intellicheck Mobilisa is a leading technology company, developing and marketing wireless technology and identity systems for various applications including: mobile and handheld wireless devices for the government, military and commercial markets. Products include the Defense ID system, an advanced ID card access control product currently protecting over 70 military and federal locations. ID-Check is a technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 U.S. and Canadian jurisdictions to determine if the content and format are valid. The company's products are used to address government and commercial fraud, focusing on age verification, secure access control and software tools, driver's license readers, and ID validation markets. Intelli-Check Mobilisa sells its products through its direct sales force and marketing partners. The company is headquartered in Port Townsend, Washington. Intellicheck Inc has a market cap of $40.9 million; its shares were traded at around $1.56 with and P/S ratio of 4.1.
Highlight of Business Operations:
As of September 30, 2009, our backlog, which represents non-cancelable sales orders for products not yet shipped and services to be performed, was approximately $7.2 million compared to $9.4 million at September 30, 2008. Approximately $3.2 million of the current backlog could be recognized in excess of one year. Mobilisa has a significant amount of multi-year wireless research and development contracts with the US government that will be recognized as the research is performed. In the Commercial ID market, the actual recognition periods are determined depending upon the release dates by the customer.Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 9.7% to $2,287,000 for the three months ended September 30, 2009 from $2,085,000 for the three months ended September 30, 2008. Selling expenses increased by $55,000 principally as a result of an increase in personnel and higher commissions on the increased revenue levels. General and administrative expenses increased by $146,000 principally due to an increase in investor relations and consulting fees. Research and development costs increased by $2,000. 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 participation in more trade shows. 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.
As a result of the factors noted above, our net income was $110,000 for the three months ended September 30, 2009 as compared to $167,000 for the three months ended September 30, 2008.
Operating expenses, which consist of selling, general and administrative and research and development expenses, increased 21.4% to $6,394,000 for the nine months ended September 30, 2009 from $5,265,000 for the nine months ended September 30, 2008. Consolidated selling expenses increased 31.1% to $1,537,000 for the nine months ended September 30, 2009 from $1,172,000 for the nine months ended September 30, 2008. General and administrative expenses increased 18.2% to $2,840,000 for the nine months ended September 30, 2009 from $2,402,000 for the nine months ended September 30, 2008. Research and development expenses increased 19.3% to $2,017,000 for the nine months ended September 30, 2009 from $1,691,000 for the nine months ended September 30, 2008. Generally, the higher increases in expenses in the current period is because the 2008 period only include Mobilisa operating expenses for a period of 6.5 months.
As of September 30, 2009, the Company had cash and cash equivalents of $3,345,000, working capital (defined as current assets minus current liabilities) of $2,451,000, total assets of $26,760,000 and stockholders equity of $22,185,000. The Company currently is not utilizing any bank financing.
On August 31, 2009, the Company acquired 100% of the common stock of Positive Access Corporation, the leading competitor to Intellicheck Mobilisa for developing drivers license reading software for $2,080,000. The terms include cash payments of $1,225,000, payable $625,000 at August 31, 2009, $400,000 at August 31, 2010 and $200,000 at August 31, 2011. The notes payable have been recorded in the financial statements net of deferred debt discount of $40,000. In addition, the Company issued 608,520 shares of common stock valued at $882,000 (based on the closing stock price on August 31, 2009) plus direct issue costs of $13,000. Acquisition related costs of approximately $35,000 were expensed in connection with this transaction. The transaction was accounted for using the purchase method of accounting. The initial cash payments were funded out of the operating cash of the Company.
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