Intellicheck, Inc. · NASDAQ:IDN
Intellicheck — Investor Presentation (August 2020)
23 slides from Intellicheck's investor presentation, Aug 13, 2020
Slide 1: Intellicheck: Authentication made simple
INTELLICHECK Authentication made simple Investor Presentation — August 13, 2020
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Forward-Looking Statements: This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the forward-looking statements in this pr
Slide 3: Intellicheck at a Glance
INTELLICHECK AT A GLANCE IDENTITY ASA SERVICE INSTANTLY AUTHENTICATES ID’STO STOP: * Identity theft « Underage access to age-restricted products PRIMARY FOCUS IS STOPPING IDENTITY THEFT IN THE FINANCIAL SERVICES AND RETAIL MARKETS, WHICH WE BELIEVE ISTHE FASTEST PATH TO REVENUE GROWTH AND PROFITABIL
Slide 4: Key Identity Theft Statistics
KEY IDENTITY THEFT STATISTICS +100 Million Record Data Breaches Since 2010 (!) 885 | 4 8 M M 8 B Where Stolen Records include SSN, Passport, Credit Card, DoB, DL lol 12 Names, SSN and DoB Exposed Records Exposed in Data Equifax 2017 Breaches The beginning of the glut CY 2019 DOCUMENTED & GROWING W7
Slide 5: Financial Services — Use Cases
FINANCIAL SERVICES — USE CASES In-Store, Online, Call Centers — the victim’s stolen data is used to open an account Estimated stolen in 2019 () The victim’s stolen data is used where they have an account Estimated to cost Retailers through 2020 ?) Domain of Organized Crime Estimated to cost Retailer
Slide 6: Business Model Changes Driving Growth
BUSINESS MODEL CHANGES DRIVING GROWTH 6 Engage Market Banks bear primary (“hold the bag”) and the price for identity theft fraud Intellicheck strategy: Sell to and through Banks INTELLIC Pain Point eS Professional Services Team at Primary Loss Savings Solution with Compelling ROI risk for fraud Get
Slide 7: Impacts/Benefits of Per-Scan Pricing Model
IMPACTS/BENEFITS OF PER-SCAN PRICING MODEL MOST NEW CLIENTS AND ALL AVERAGE SCAN SEASONALITY BASED ON RETAILERS FULLY IMPLEMENTED FOR A MAJOR RENEWALS ARE ONA WHOLE YEAR: PAY PER-SCAN PLATFORM RETAIL SALES CYCLE IS SEASONAL -— PAY PER-SCAN ALLOWS US TO SHARE THE BENEFIT OF STOPPING FRAUD DURING THE
Slide 8: ROI for Banks, Issuers, and Retailers
ROI FOR BANKS, ISSUERS, AND RETAILERS NO NEW HARDWARE PRIMARY PURCHASING MOTIVATIONS THURS WAN _ . Why we win SIMPLE “Prior to using it in the field, we Pre-populates the application, scanned over 1,000 known counterfeits, less work for the customer each one was detected by the device and results in
Slide 9: Revenue 2018 — Q2 2020
REVENUE 2018 — Q2 2020 QUARTERLY REVENUE ($ in 000s) p—— YEARLY SaaS REVENUE ——4 ($ in 000s) $1708 $826.1 J $861.2 Note: LTM defined as Last Twelve Months from ] 1.2019 —June 30, 2020
Slide 10: COVID-19 Impact — Positive and Negative
COVID-19 IMPACT — POSITIVE AND NEGATIVE * STORE CLOSURES DO NOT MEAN ZERO REVENUE * ON-LINE BUSINESS, MULTIPLE “ESSENTIAL BUSINESS” CLIENTS, PER-STORE REVENUES AND PER- SCAN MONTHLY MINIMUMS DRIVE REVENUE * SCAN VOLUMES IMPACTED BY CLOSURES, BUT RECOVERING * AVERAGE WEEKLY Q2 SCANS WERE 48% OF Q1 ¢
Slide 11: These Changes Have Led To Notable Wins and Improved Financial Results
THESE CHANGES HAVE LEDTO NOTABLE WINS AND IMPROVED FINANCIAL RESULTS
Slide 12: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Fully deployed in their fraud call centers Added 10 new retailers to online applications in Q4 Signed 10 member Jewelry consortium — Mandated Use of Intellicheck Reference client for any new prospect Renewed in 2018 on a per-scan model at increased fees
Slide 13: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Signed in December 2018 Brought 1,000 location Electronics Retailer live in October In QI placed a $220,000 hardware order for ID authentication in bank branches Have large Home Improvement Retailer scheduled to go live at the end of September Signed in
Slide 14: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Signed in Q2 2019 Online bank for mobile enrollment Authentication plus facial recognition for AML/KYC account opening Signed in Q3 2019 700+ locations 488 locations live today, with roll out ongoing Signed contract to add facial recognition — targeting
Slide 15: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Signed in January 2020 Given spike in online fraud, rushed rollout to their US call centers Canadian Telecom approval pending, rollout anticipated to start by Q4 Signed in December 2019 5,000 retail locations 4-Month paid pilot — very excited about resul
Slide 16: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Teller Authentication for cashback, cashiers checks, any transaction over $2,000 Rushed as part of a project to stop fraud during COVID-19 Full deployment to bank branches by September 23rd Went live in March Authenticating both doctors and patients Firs
Slide 17: Change Results — Financial Services Companies
CHANGE RESULTS — FINANCIAL SERVICES COMPANIES Announced as a client in June Full deployment to bank branches be completed in August 3 Portfolio companies in consumer and commercial finance Intend to authenticate at each Live with the first company in July, other 2 in development INTELLICHECK 17
Slide 18: Change Results — Other Wins
E RESULTS — OTHER WINS 56% fee increase at a 1,000 location Big-Box Retailer After Black Friday, we were informed Intellicheck essentially eliminated their fraud An expanding use case for authentication Getting hit with BOPIS credit card fraud 3 integrations in 2018 Now authenticate in a person-not-
Slide 19: Why Intellicheck?
WHY INTELLICHECK? e i WE ARE SIGNING CLIENTS IN MULTIPLE VERTIC. e [7 'NE HAVE IMPROVED OUR PRICING MODEL AND DEMONSTRATED PRICING POWER AT TIME OF RENEW. @ z WE ARE ONBOARDING CLIENTS FASTERTHAN EVER . THE ACHIEVEME RE DRIVING IMPROVED FINANCI b PERFORMANCE THIS ISTHE THE RESET NEW INTELLICHECK HAS
Slide 20: Financial Overview
FINANCIAL OVERVIEW
Slide 21: Q2 2020 Financial Highlights
Q2 2020 FINANCIAL HIGHLIGHTS * Total Revenue: $1,842,195 (+18% YoY) * SaaS Revenue: $1,671,350 (+49% YoY) * Gross Margin: 88.6% Revenue Growth * Cash: $14,589,615 * Stockholder Equity: $22,064,442 * Debt: $1,106,100 Balance Sheet (as of June 30) * Net Loss: ($760,273) vs. prior year ($873,677) Net L
Slide 22: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun 30-Sep 31-Dec 31-Mar 30-Jun Net Income / (Loss) ($1,067,957) ($1,100,375) ($1,131,219) ($664,025) ($4,212,991) ($873,677) ($568,230) $106,187 $26,602 ($760,273) Reconciling Items Interest and Other Income ($13,870) ($43,221) ($
Slide 23: Intellicheck: Authentication made simple
INTELLICHECK Authentication made simple BRYAN LEWIS BILL WHITE 516.453.6647 516.992.1985 blewis@invellicieck com bwiite@inelichedccant GAR JACKSON Global IR Group 949.873.2789 Gai@¢lobeliteroujs.cen