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Intellicheck Announces Fourth Quarter and Full-Year 2018 Financial Results

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Year over year fourth quarter revenues increased 37%

SaaS revenues increased 45%

Intellicheck, Inc. (NYSE:IDN), an industry leader in
identification authentication solutions, today announced its financial
results for the fourth quarter and full-year ended December 31, 2018.

Revenue for the fourth quarter ended December 31, 2018 grew 37% to
$1,330,393 versus $967,612 in the prior year comparable period. SaaS
revenue in the fourth quarter grew 45% and totaled $826,000 versus
$569,000 in the prior year comparable period. Gross profit as a
percentage of revenues improved to 93.1% for the three months ended
December 31, 2018 versus 89.4% in the prior year comparable period.

Intellicheck CEO Bryan Lewis said adoption of the company's leading
identity authentication technology solutions is strong and continues to
grow. "We achieved significant milestones in 2018 and I am very pleased
with the advances we have made. We are working with four banks and
credit card issuers right now in addition to some 16 retailers of all
sizes in various stages of product adoption. These merchants represent
thousands of retail locations in which Retail ID will be used when fully
rolled out. We are also in pilot with our latest new bank for its own
credit cards and its retail bank branches. This as we continue to see
growing adoption of Age ID at a time when there has been noteworthy
market attention to issues surrounding underage access to vaping,
cannabis and alcohol products," said Intellicheck CEO Bryan Lewis.

"Together, we believe that our suite of identity authentication products
are demonstrating their value and effectiveness in meeting multiple
market needs. As we focus on our strategic objectives for 2019, we
anticipate that as long as we continue to execute on the opportunities
before us, we believe it will be a banner year," Lewis concluded.

The net loss for the three months ended December 31, 2018 was ($664,025)
or ($0.04) per diluted share versus ($2,910,350) or ($0.19) per diluted
share in the comparable prior year period. The prior year loss includes
a $500,000 expense attributable to the employment contract of the former
CEO. Additionally, during the fourth quarter of 2017 the Company had an
impairment charge on intangible assets of $1,375,422 for the year ended
December 31, 2017. Adjusted EBITDA (earnings before interest, taxes,
depreciation, amortization, stock-based compensation expense and certain
non-recurring charges that includes the prior year impairment charge)
was a loss of ($632,674) for the fourth quarter of 2018 versus a loss of
($1,327,603) in the prior year comparable period. A reconciliation of
adjusted EBITDA to net loss is provided elsewhere in this release.

Revenue for the full year ended December 31, 2018 was $4,433,454 versus
$3,598,296 in the prior year comparable period. Gross profit as a
percentage of revenue improved to 91.3% for the year ended December 31,
2018 versus 85.5% in the prior year comparable period.

The net loss for the fiscal year ended December 31, 2018 was
($3,963,576) or ($0.26) per diluted share versus a net loss of
($6,020,505) or (0.48) per diluted share that includes the $500,000
expense attributable to the employment contract of the former CEO and
the $1,375,422 impairment charge. Adjusted EBITDA (earnings before
interest, taxes, depreciation, amortization, stock-based compensation
expense and certain non-recurring charges that includes the prior year
impairment charge) improved by $0.2 million to a loss of ($3,661,244)
for fiscal 2018 versus a loss of ($3,856,894) for fiscal 2017. A
reconciliation of adjusted EBITDA to net loss is provided elsewhere in
this release.

Cash at the end of fiscal 2018 totaled $4.4 million versus $8.0 million
in the prior year comparable period. Stockholders' equity totaled $12.9
million at the end of the 2018 fiscal year versus $16.0 million at the
end of the comparable prior year period.

The financial results reported today do not take into account any
adjustments that may be required in connection with the completion of
the Company's review process and should be considered preliminary until
Intellicheck files its Form 10-K for the fiscal year ended December 31,
2018.

Conference Call Information:

The Company will hold an earnings conference call today, March 21, at
4:30 p.m. ET/1:30 p.m. PT to discuss operating results. To listen to the
earnings conference call, please dial 877-407-8037. For callers outside
the U.S., please dial 201-689-8037.

A replay of the conference call will be available shortly after
completion of the live event. To listen to the replay, please dial
877-660-6853 and use conference identification number 13688253. For
callers outside the U.S., please dial 201-612-7415 and use conference
identification number 13688253. The replay will be available beginning
approximately two hours after the completion of the live event and will
remain available until April 4, 2019.

     
INTELLICHECK, INC.
 
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 and 2017
(Unaudited)
 
2018 2017
 

ASSETS

CURRENT ASSETS:
Cash $ 4,376,017 $ 8,010,161
Accounts receivable, net of allowance of $24,675 and $18,750
as of December 31, 2018, and 2017, respectively 1,019,434 652,627
Inventory 82,337 85,321
Other current assets   271,415   218,835
Total current assets 5,749,203 8,966,944
 
NOTE RECEIVABLE, net of current portion 29,017 71,138
PROPERTY AND EQUIPMENT, net 264,583 211,602
GOODWILL 8,101,661 8,101,661
INTANGIBLE ASSETS, net 306,575 463,578
OTHER ASSETS   9,742   67,181
 
Total assets $ 14,460,781 $ 17,882,104
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 
CURRENT LIABILITIES:
Accounts payable $ 73,334 $ 71,578
Accrued expenses 726,918 815,350
Deferred revenue, curr
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