Intellicheck, Inc. · NASDAQ:IDN
Intellicheck — Non-Deal Roadshow (October 2019)
23 slides from Intellicheck's roadshow presentation, Oct 2, 2019
Slide 1: Intellicheck, Inc. Non-Deal Road Show Investor Deck
Intellicheck, Inc. (NYSE American: IDN) Non-Deal Road Show Investor Deck 10/2/2019 ¥ INTELLICHECK
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as "will," "believe," "expect," "anticipate“, "encouraged" and similar expressions, as they relate to
Slide 3: Intellicheck at a Glance
Intellicheck at a Glance * Identity as a Service instantly authenticates ID’s to stop: * Identity theft * Underage access to age-restricted products Current primary focus is stopping identity theft in the financial services market, which we believe is the fastest path to revenue and profitability. 3
Slide 4: Key Identity Theft Statistics
Key Identity Theft Statistics * Personally Identifiable Information (PII) exposed in 2018 was up 126% over 2017 * 145 million names, social security numbers and dates of birth breached at Equifax in 2017 * In 2018, 14.4 million adult Americans had their identity stolen with losses totaling $14.7 Bil
Slide 5: Main Use Cases for Banks and Retailers
Main Use Cases for Banks and Retailers Credit Card Applications The victim’s stolen data used to open an account ¢ Estimated $3.4 Bn stolen in 2018 * Average consumer spends 300 hrs. clearing their name * 69% of victims blame the stores and change shopping habits Card Not Present The victim’s stolen
Slide 6: Intellicheck Growth
Intellicheck Growth * Q2 2019 SaaS revenue up 79% versus Q2 2018 * 30% sequential SaaS revenue increase over Q1 ¢ 4 Banks signed or renewed engagements since | started * New client implementations up significantly over 2018 V} INTELLICHECK
Slide 7: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 ¢ 4 Major changes leading to growth. We reset: > Where we focus resources > How and to who we sell > Pricing model > Implementation ¥ INTELLICHECK
Slide 8: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 ¢ 4 Major changes leading to growth. We reset: > Where we focus resources > Financial Services — specifically targeting identity theft >» How and to who we sell > Pricing model > Implementation V} INTELLICHECK
Slide 9: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 ¢ 4 Major changes leading to growth. We reset: >» Where we focus resources >How and to who we sell > Shift focus from Retailers to the Banks » Pricing model > Implementation ¥ INTELLICHECK
Slide 10: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 * 4 Major changes leading to growth. We reset: >» Where we focus resources > How and to who we sell > Pricing model > Shift from flat per-store model to per-scan model > Implementation V} INTELLICHECK
Slide 11: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 ¢ 4 Major changes leading to growth. We reset: >» Where we focus resources > How and to who we sell > Pricing model > Implementation > Created a separate, professional implementation team V} INTELLICHECK
Slide 12: Change Results - Banks
Change Results - Banks * Bank 1 * Reference client for any prospect * Now working with Innovations team for new projects within the bank . phevation team checked 277 fakes against the system, we caught thema * Bank 2 * Oldest banking client * Very low pricing * No new retailers in 2 years * Renegoti
Slide 13: Change Results - Banks
Change Results - Banks * Bank 3 * Had been selling through a 3" party for over a year with no results * Went direct and closed in 6 months * Charged for custom development * Paying monthly SaaS subscription fees * Working to deploy their 4 largest retailers * Bank doing development work to roll out
Slide 14: Change Results - Banks
Change Results - Banks * Bank 5 * On-line bank for mobile enrollment * First joint sale with one of our facial recognition partners * Authenticate the license, facial recognition comparison to photo * Proof of concept and reference client * Banks are now calling us * A major on-line and a traditiona
Slide 15: Change Results - Implementations
Change Results - Implementations *2018 Implementations °2019 YTD Implementations * 3 Retailers * 3 new Banks ¢ 1 Bank conversion to SaaS * 7 retailers ¢ 1 visitor management system «ln queue through Q1 2020 * 12 retailers * 3 bank branch systems * 1 auto dealer management system ¥ INTELLICHECK
Slide 16: Pipeline Market Size Opportunity for Bank
Pipeline Market Size Opportunity for Bank 2 Revenue Assumptions by Size see Store Count Average Revenue/Year small <500 $200,000 Medium 500 - 1500 $500,000 Large > 1500 $900,000 Bank 2 Relevant Clients see # of Retailers Total Revenue Small 28 $5,600,000 Medium 20 $10,000,000 Large 7 $6,300,000 $21,
Slide 17: ROI for Banks, Issuers and Retailers
ROI for Banks, Issuers and Retailers * No new hardware required — works through the POS, mobile device, or online * Frictionless — authentication takes less than 3 seconds * Simple —pre-populates the application, less work for the customer and results in fewer data entry errors Scan to Credit is les
Slide 18: Why Intellicheck?
Why Intellicheck? °We are signing banks ¢ We have improved our pricing model ¢We are on-boarding clients faster than ever Because this is a new Intellicheck and the reset is working ¥ INTELLICHECK
Slide 19: Financial Overview
Financial Overview ¥ INTELLICHECK
Slide 20: 2019 Q2 Financial Highlights
2019 Q2 Financial Highlights ¢ $1,121,000 in Q1 (+79% YoY) ¢ ~S$3.5 MM 12-month trailing through Q2 * 86% Q2 gross margin * Cash: $3.1 MM * Stockholder Equity: $11.5 MM * Debt free * Consumer authentication - large markets without clear market leaders * Identity theft reduction ¢ Age-Restricted prod
Slide 21: Q2 2019 Financial Summary
Q2 2019 Financial Summary Q2 2018 Q2 2019 Actual Actual Description Revenue $ 1001418 $ 1,557,991 $ 556,573 Operating $ 2,062,621 $ 2,258,745 $ 196,124 10% {A} Expenses EBITDA $ (1,018,135) $ (785,318) $ 232,817 23% Net Loss $ (1,100,375) $ (873,677) $ 226,698 21% Margin 91.8% 85.9% (6)% NTELLICHECK
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GAAP net loss to non-GAAP adjusted EBITDA: (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net loss $ (873,677) $ (1.100.375) «S$ —«(2,086,668) s (2.168.332) Reconciling items Interest and other income (46,065) (43,221) (52,084) (5
Slide 23: Contact Information
Contact Information Bryan Lewis 516.453.6647 blewis @intellicheck.com Bill White 516.992.1985 bwhite@intellicheck.com Gar Jackson Global IR Group 949.873.2789 gar@globalirgroup.com ¥ INTELLICHECK