Intellicheck, Inc. · NASDAQ:IDN
Intellicheck — Oppenheimer 22nd Annual Technology, Internet & Communications Conference 2019
24 slides from Intellicheck's conference presentation, Aug 5, 2019
Slide 1: Intellicheck, Inc. - Oppenheimer 22nd Annual Technology, Internet & Communications Conference
Intellicheck, Inc. (NYSE American: IDN) Oppenheimer 22nd Annual Technology, Internet & Communications Conference August 6, 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 Trusted industry leader in technology solutions that stop identity theft and fraud with real-time identification authentication and age verification. ¢ Intellicheck instantly authenticates ID’s through barcode scanning to stop: e Identity theft ¢ Underage access to age- rest
Slide 4: Key Identity Theft Statistics
Key Identity Theft Statistics * Personally Identifiable Information (PII) exposed in 2018 was up 126% over 2017 ¢ 1,244 data breaches in 2018 exposed 446,515,334 records * 145 million names, social security numbers and dates of birth breached at Equifax in 2017 * In 2018, 14.4 million adult American
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 Highlights
Intellicheck Growth Highlights © Q2 2019 SaaS revenue up 79% versus Q2 2018 ¢ 30% sequential SaaS revenue increase over Q1 e 4 Banks signed or renewed engagements since | started ¢ New client implementations up significantly over 2018 ¥ INTELLICHECK
Slide 7: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 e 4 Major changes driving 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 driving growth. We reset: > Where we focus resources > Financial Services — specifically targeting identity theft > How and to who we sell > Pricing model > Implementation ¥ INTELLICHECK
Slide 9: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 ¢ 4 Major changes driving 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 e 4 Major changes driving 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 ¥ INTELLICHECK
Slide 11: Completely Different Company vs Feb 2018
Completely Different Company vs Feb 2018 e 4 Major changes driving growth. We reset: > Where we focus resources > How and to who we sell > Pricing model > Implementation > Created a separate, professional implementation team ¥ INTELLICHECK
Slide 12: Change Results - Banks
Change Results - Banks ¢ Bank1 © Reference client for any prospect * Now working with Innovations team for new projects within the bank ¢ Innovation team checked 277 fakes against the system, we caught them all ¢ Bank 2 © Oldest banking client © Very low pricing © Hadn’t brought on a new retailer in
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 e Paying monthly SaaS subscription fees ¢ Working to deploy their 4 largest retailers ¢ Bank doing development work to roll out t
Slide 14: Change Results - Banks
Change Results - Banks ¢ Bank5 ® Online bank for mobile enrollment e First joint sale with one of our facial recognition partners — Authenticate the license first then use facial recognition to compare live person to photo on license ® Serves as proof of concept ° Great reference client ¢ Banks are
Slide 15: Change Results - Implementations
Change Results - Implementations ¢ 2018 Implementations + 2019 YTD Implementations e 3 Retailers ¢ 3 New banks ¢ 1 Bank conversion to SaaS ¢ 7 Retailers ¢ 1 Visitor management system ¢ In queue through Qi 2020 ¢ 12 Retailers ¢ 3 Bank branch systems ¢ 1 Auto dealer management system 15: ¥ INTELLICHEC
Slide 16: Pipeline Market Size Opportunity for Bank
Pipeline Market Size Opportunity for Bank 2 Revenue Assumptions by Size Average Revenue/Year Small <500 $200,000 Medium 500 - 1500 $500,000 Large > 1500 $900,000 Bank 2 Relevant Client Matrix sizes # of Retailers Total Revenue Small 28 $5,600,000 Medium 20 $10,000,000 Large if $6,300,000 $21,900,000
Slide 17: ROI for Banks, Issuers and Retailers
ROI for Banks, Issuers and Retailers e¢ No new hardware required — works through the POS, mobile device, or online e Frictionless — authentication takes less than 3 seconds e Simple — pre-populates the application, less work for the customer and results in fewer data entry errors Scan to Credit is t
Slide 18: Why Intellicheck?
Why Intellicheck? Under New Leadership: ° We have refocused our sales process ° We are signing banks © We have improved our pricing model ° We are on-boarding clients faster than ever This is a new Intellicheck and the reset is working 18 ¥ INTELLICHECK
Slide 19: Stock and Market Information
Stock and Market Information Ticker IDN Exchange NYSE-American Shares Outstanding 15.8 Million Warrants/Options Outstanding 1.6 Million Share Count Including Warrants/Options 17.4 Million Public Float* 12.7 million Recent Price** $5.36 Market Cap** $85 Million Average Daily Volume (3 Month)** 65,000
Slide 20: Financial Overview
Financial Overview ¥ INTELLICHECK
Slide 21: 2019 Financial Highlights
2019 Financial Highlights e $1,121,000 in Q2 (+79% YoY) e¢ ~S3.5 MM 12-month trailing through Q2 ¢ 86% Q2 gross margin e Cash: $3.1 MM ¢ Stockholder Equity: $11.5 MM ¢ Debt free ¢ Consumer authentication - large markets without clear market leaders e Identity theft reduction e Age-Restricted product
Slide 22: Q2 2019 Summary Operating Results
Q2 2019 Summary Operating Results Description Revenue Operating Expenses Adjusted EBITDA SaaS Margin INTELLICHECK 1,557,991 2,258,745 (785,318 ) 1,121,000 85.9% Q2 2018 1,001,418 2,062,621 (1,018,135 ) 625,000 91.8% $556,573 $196,124 $232,817 $496,000 (6.9) % Change 2019 vs 2018 56% 10% 23% 79% (6%)
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation GAAP net loss to non-GAAP adjusted EBITDA: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Net loss $ (873,677) $ (1,100,375) $___ (2,086,668) $ (2,168,332) Reconciling items: Interest and other income (46,065) (43,221) (62,084) (67,091) Depre
Slide 24: 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
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