Intellicheck Mobilisa Announces 2012 Fourth Quarter and Year End Financial Results

Wed Mar 27, 2013 7:30am EDT

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Conference Call Scheduled for Today, Wednesday, March 27, at 1:00 pm ET/10:00 am
PT
PORT TOWNSEND, Wash.--(Business Wire)--
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 year ended December 31, 2012. 

Revenues for the quarter ended December 31, 2012 were $528,000 compared to
$2,868,000 in the same period of the previous year. Included in the revenue for
the current quarter is an adjustment of ($671,000) relating to the uncertainty
of the collection of certain accounts receivable regarding a contract with the
U.S. Navy, which the company learned about during the fourth quarter of 2012.
The Company believes this is a valid receivable, and is pursuing its collection.
Although this revenue had been recognized in prior periods, the Company believes
this is the proper accounting treatment, given that new information was received
during the fourth quarter. 

Adjusted EBITDA was ($1,681,000) for the fourth quarter of 2012 compared to
$284,000 for the fourth quarter of 2011. Net loss for the three months ended
December 31, 2012 was ($1,955,000) or ($0.07) per diluted share compared to a
net loss of ($14,000) or ($0.00) per diluted share for the three months ended
December 31, 2011. The Company`s backlog, which presents non-cancelable sales
orders for products not yet shipped and services to be performed, was
approximately $1.2 million at December 31, 2012, compared to $2.8 million at
December 31, 2011. 

For the year ended December 31, 2012, revenues were $8,803,000 compared to
revenues of $12,484,000 reported in the same period of the prior year. Included
in the 2012 revenue is the aforementioned adjustment of ($671,000) relating to
the uncertainty of an accounts receivable. Adjusted EBITDA for 2012 was
($1,114,000) compared to $875,000 in 2011. Net loss was ($2,260,000) or ($0.08)
per diluted share for the year ended December 31, 2012, compared to a net loss
of ($291,000) or ($0.01) per diluted share for the year ended December 31, 2011.


Nelson Ludlow, Ph.D., President and CEO of Intellicheck Mobilisa, stated, "As I
anticipated in my letter to shareholders issued on November 30, our financial
results for the fourth quarter and year 2012 were not strong. I detailed in that
letter, we are reviving innovation and new product development, providing
stronger customer service, completing partnership agreements and increasing
emphasis on closing sales. The changes we are making are beginning to positively
impact revenue, and I am pleased to note that we are forecasting Q1 2013
revenues to be significantly better than Q4 2012, but under Q1 revenue from
2012. We have more work to do, but we believe that we are on the right track." 

Q4 2012 and Recent Highlights:

* Nelson Ludlow, Ph.D. appointed President and CEO; Michael D. Malone, Vice
Admiral, U.S. Navy, Retired, appointed Chairman of Board of Directors; 
* Mark Armstrong hired as Senior VP of Sales, a new position for the Company; 
* Mobilisa, Inc. subsidiary awarded wireless contract worth $671,962 from
Jefferson County Public Utility District and Northwest Open Access Network
(NoaNet); 
* Mobilisa, Inc. subsidiary awarded wireless contract worth $283,948 from NoaNet
to provide broadband to schools and libraries in Spokane area and Whitman
County; 
* Intellicheck Mobilisa awarded software license agreement by major U.S. luxury
retailer to deploy ID-CheckĀ® verification software in retailer`s stores
nationwide; 
* Intellicheck Mobilisa partners with Vanguards of Enterprise Ltd. of Trinidad &
Tobago to help market, sell, distribute and install wireless, maritime security
and intelligent buoy monitoring solutions to Caribbean countries.

Conference Call Information

IDN will host a conference call for members of the investment community today at
1:00 p.m. Eastern / 10:00 a.m. Pacific Time. To listen to the conference call,
please dial (877) 407-8037 approximately 10 minutes before the scheduled
beginning. For callers outside the U.S., please dial (201) 689-8037. A webcast
of the call may be accessed at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=170676. 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 410895.
After the 48-hour window, please visit the investor relations portion of our
website at www.icmobil.com for rebroadcast. 

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; and Aegeus, a wireless security buoy
system for the government, military and oil industry. For more information on
Intellicheck Mobilisa, please visit www.icmobil.com. 

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, including, without limitation, any forecasts with respect to
quarterly revenues or earnings (loss) per share. 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.

                                                                                                                                 
 INTELLICHECK MOBILISA, INC.                                                                                                     
                                                                                                                                 
 CONSOLIDATED BALANCE SHEETS                                                                                                     
 (Unaudited)                                                                                                                     
                                                                                                                                 
 ASSETS                                                                                                                          
                                                                                        2012                     2011            
                                                                                                                                 
 CURRENT ASSETS:                                                                                                                 
 Cash and cash equivalents                                                           $  1,685,879             $  1,394,148       
 Accounts receivable, net of allowance of $1,613 and $4,884, respectively               869,747                  3,058,788       
 Inventory                                                                              337,559                  11,894          
 Other current assets                                                                   105,881                  108,770         
 Total current assets                                                                   2,999,066                4,573,600       
                                                                                                                                 
 PROPERTY AND EQUIPMENT, net                                                            449,438                  439,736         
 GOODWILL                                                                               12,308,661               12,308,661      
 INTANGIBLE ASSETS, net                                                                 4,631,577                5,551,149       
 OTHER ASSETS                                                                           72,006                   72,006          
                                                                                                                                 
 Total assets                                                                        $  20,460,748            $  22,945,152      
                                                                                                                                 
 LIABILITIES AND STOCKHOLDERS` EQUITY                                                                                            
                                                                                                                                 
 CURRENT LIABILITIES:                                                                                                            
 Accounts payable                                                                    $  247,289               $  221,019         
 Accrued expenses                                                                       556,814                  675,907         
 Deferred revenue, current portion                                                      1,450,923                1,692,881       
 Total current liabilities                                                              2,255,026                2,589,807       
                                                                                                                                 
 OTHER LIABILITIES                                                                                                               
 Deferred revenues, long-term portion                                                   341,948                  405,190         
 Deferred rent                                                                          185,339                  194,759         
                                                                                                                                 
 Total liabilities                                                                      2,782,313                3,189,756       
                                                                                                                                 
 COMMITMENTS AND CONTINGENCIES (Notes 11 and 12)                                                                                 
                                                                                                                                 
 STOCKHOLDERS` EQUITY:                                                                                                           
 Common stock - $.001 par value; 40,000,000 shares authorized; 27,724,267 and                                                    
 27,462,504 shares issued and outstanding as of 2012 and 2011, respectively             27,724                   27,462          
 Additional paid-in capital                                                             100,882,019              100,699,156     
 Accumulated deficit                                                                    (83,231,308  )           (80,971,222  )  
 Total stockholders` equity                                                             17,678,435               19,755,396      
                                                                                                                                 
 Total liabilities and stockholders` equity                                          $  20,460,748            $  22,945,152      
                                                                                                                                 


                                                                                                                                                                               
 INTELLICHECK MOBILISA, INC.                                                                                                                                                   
                                                                                                                                                                               
 CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                                         
 (Unaudited)                                                                                                                                                                   
                                                                                                                                                                               
                                             Three Months Ended December 31,                                   Year Ended December 31,                                         
                                                                                                                                                                               
                                                   2012                                2011                              2012                                 2011             
                                                                                                                                                                               
 REVENUES                                    $     528,376                       $     2,868,031               $         8,803,217                  $         12,484,331       
 COST OF REVENUES                                  (482,244    )                       (927,466    )                     (3,001,997  )                        (4,339,772  )    
 Gross profit                                      46,132                              1,940,565                         5,801,220                            8,144,559        
                                                                                                                                                                               
 OPERATING EXPENSES                                                                                                                                                            
 Selling                                           382,253                             430,569                           1,613,819                            1,896,747        
 General and administrative                        1,129,161                           872,418                           4,209,385                            3,922,024        
 Research and development                          490,414                             651,488                           2,239,011                            2,608,020        
 Total operating expenses                          2,001,828                           1,954,475                         8,062,215                            8,426,791        
                                                                                                                                                                               
 Income (loss) from operations                     (1,955,696  )                       (13,910     )                     (2,260,995  )                        (282,232    )    
                                                                                                                                                                               
 OTHER INCOME (EXPENSE)                                                                                                                                                        
 Interest income                                   909                                 3                                 909                                  40               
 Interest expense                                  -                                   -                                 -                                    (8,667      )    
                                                   909                                 3                                 909                                  (8,627      )    
                                                                                                                                                                               
 Net (loss) income                           $     (1,954,787  )                 $     (13,907     )           $         (2,260,086  )              $         (290,859    )    
                                                                                                                                                                               
 PER SHARE INFORMATION                                                                                                                                                         
 Net (loss) income per common share -                                                                                                                                          
 Basic                                       $     (0.07       )                 $     0.00                    $         (0.08       )              $         (0.01       )    
 Diluted                                     $     (0.07       )                 $     0.00                    $         (0.08       )              $         (0.01       )    
                                                                                                                                                                               
 Weighted average common shares used                                                                                                                                           
 in computing per share amounts -                                                                                                                                              
 Basic                                             27,724,267                          27,462,504                        27,724,267                           27,247,558       
 Diluted                                           27,724,267                          27,462,504                        27,724,267                           27,247,558       
                                                                                                                                                                               


                                                                                                                                                             
 INTELLICHECK MOBILISA, INC.                                                                                                                                 
                                                                                                                                                             
 CONSOLIDATED STATEMENT OF STOCKHOLDERS` EQUITY                                                                                                              
 For the years ended December 31, 2011 and 2012                                                                                                              
 (Unaudited)                                                                                                                                                 
                                                                                                                                                             
                                                                                 Additional                                                                  
                                         Common Stock                            Paid-in                  Accumulated                                        
                                         Shares                Amount            Capital                  Deficit                        Total               
                                                                                                                                                             
 BALANCE, January 1, 2012                27,462,504            $     27,462      $       100,699,156      $     (80,971,222  )           $   19,755,396      
                                                                                                                                                             
 Stock-based compensation expense        -                           -                   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      
                                                                                                                                                             


                                                                                                                                                                   
 INTELLICHECK MOBILISA, INC.                                                                                                                                       
                                                                                                                                                                   
 CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                             
 (Unaudited)                                                                                                                                                       
                                                                                                                                                                   
                                                                                                  For the years ended December 31,                                 
                                                                                                         2012                                    2011              
 CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                             
                                                                                                                                                                   
 Net loss                                                                                         $      (2,260,086  )                    $      (290,859   )      
 Adjustments to reconcile net loss to net cash (used in) provided by operating activities:                                                                         
 Depreciation and amortization                                                                           1,094,173                               1,123,509         
 Non cash stock based compensation expense                                                               52,677                                  33,887            
 Provision for doubtful accounts                                                                         (3,271      )                           3,233             
 Amortization of debt discount                                                                           -                                       6,667             
 Changes in assets and liabilities:                                                                                                                                
 Decrease (increase) in accounts receivable                                                              2,192,312                               (156,227   )      
 (Increase) decrease in inventory                                                                        (325,665    )                           5,630             
 Decrease (increase) in other current assets                                                             2,888                                   6,425             
 Decrease (increase) in other assets                                                                     -                                       1,045             
 (Decrease) increase in accounts payable and accrued expenses                                            (92,823     )                           (328,056   )      
 (Decrease) increase in deferred revenue                                                                 (305,200    )                           (546,451   )      
 (Decrease) increase in deferred rent                                                                    (9,420      )                           69,333            
 Net cash provided by (used in) operating activities                                                     345,585                                 (71,864    )      
                                                                                                                                                                   
 CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                             
 Purchases of property and equipment                                                                     (184,303    )                           (49,647    )      
 Net cash (used in) investing activities                                                                 (184,303    )                           (49,647    )      
                                                                                                                                                                   
 CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                             
 Repayment of notes payable                                                                              -                                       (200,000   )      
 Net proceeds from issuance of common stock from exercise of stock options                                                                                         
 and warrants                                                                                            130,448                                 226,755           
 Net cash provided by financing activities                                                               130,448                                 26,755            
                                                                                                                                                                   
 Net increase (decrease) in cash and cash equivalents                                                    291,730                                 (94,756    )      
                                                                                                                                                                   
 CASH AND CASH EQUIVALENTS, beginning of year                                                            1,394,148                               1,488,904         
                                                                                                                                                                   
 CASH AND CASH EQUIVALENTS, end of year                                                           $      1,685,878                        $      1,394,148         
                                                                                                                                                                   
 SUPPLEMENTAL CASH FLOW INFORMATION                                                                                                                                
                                                                                                                                                                   
 Interest                                                                                         $      -                                $      2,000             
                                                                                                                                                                   


                                                                                                                                                           
 INTELLICHECK MOBILISA, INC.                                                                                                                               
 (Unaudited)                                                                                                                                               
                                                                                                                                                           
 A reconciliation of GAAP net (loss) income to Adjusted EBITDA follows:                                                                                    
                                                                                                                                                           
                                             (Unaudited)                                                                                                   
                                             Three Months Ended                                       For the years ended                                  
                                             December 31,                                             December 31,                                         
                                                  2012                            2011                     2012                            2011            
 Net (loss) income                           $    (1,955,000  )              $    (14,000  )          $    (2,260,000  )              $    (291,000   )    
 Reconciling items:                                                                                                                                        
 Interest - net                                   (1,000      )                   -                        (1,000      )                   9,000           
 (Benefit) provision for income taxes             -                               -                        -                               -               
 Depreciation and amortization                    270,000                         276,000                  1,094,000                       1,123,000       
 Stock-based compensation costs                   5,000                           22,000                   53,000                          34,000          
 Adjusted EBITDA                             $    (1,681,000  )              $    284,000             $    (1,114,000  )              $    875,000         
                                                                                                                                                           


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Investor Relations:
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or
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