What changed in this filing

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Item 1. Business

2023-03-28 compared with 2022-03-24 · 284 added, 442 removed, 46 unchanged (94% of the section changed)

were originally incorporated in the state of New York in 1994 as Intelli-Check, Inc.

We were originally incorporated in the state of New York in 1994 as Intelli-Check, Inc.

In August 1999, we reincorporated in Delaware.

March 14, 2008, our corporation was renamed Intelli-Check - Mobilisa, Inc.

On March 14, 2008, our corporation was renamed Intelli-Check - Mobilisa, Inc.

after the consummation of the merger with Mobilisa, Inc.

(references to “Intelli-Check” in this annual report refer to the Company prior to the merger with Mobilisa).

At the closing

of the merger, our headquarters were moved to Mobilisa’s offices in Port Townsend, Washington.

On October 27, 2009, we made a further

change in our name to Intellicheck Mobilisa, Inc.

On May 4, 2017, with the approval of our shareholders, we changed our name to Intellicheck,

(“Mobilisa”) (references to “Intelli-Check” in this annual report refer to the Company prior to the merger with Mobilisa).

At the closing of the merger, our headquarters were moved to Mobilisa’s offices in Port Townsend, Washington.

On October 27, 2009, we made a further change in our name to Intellicheck Mobilisa, Inc.

On May 4, 2017, with the approval of our shareholders, we changed our name to Intellicheck, Inc.

(“Intellicheck,” “we,” “our,” “us,” or “the Company”).

On August 31,

2009, the Company acquired 100% of the common stock of Positive Access Corporation (“Positive Access”), a developer of driver

license reading technology.

The acquisition of Positive Access expanded the Company’s technology portfolio and related product

offerings and allowed the Company to reach a larger number of customers through Positive Access’s extensive distribution network.

On December 31, 2018, we formally merged the Mobilisa and Positive Access subsidiaries into one corporation under the name Intellicheck,

are a prominent technology company engaged in developing, integrating and marketing identity verification solutions to address challenges

that include commercial retail and banking fraud prevention, access control and identity validation.

Intellicheck’s products include

solutions for preventing identity fraud across any industry delivered via smartphone, tablet, POS integration, and other electronic devices.

plan to expand our business in the near term by pursuing a strategy designed to increase market share in our existing markets and expand

into new product markets that are expected to benefit from fraud prevention and identity validation.

For example, we have extended our

technologies into online applications to provide identity validation and fraud prevention for the billions of transactions that occur

online each day.

We have also incorporated biometric, facial recognition and other enhancements to several of our current product offerings

in order to stay on the leading edge of technology.

plan to leverage our intellectual property in the markets we are targeting to strengthen our competitive position.

primary businesses include Identity Systems products, which include commercial applications of identity card reading authentication.

technologies address problems such as:

Fraud and Risk Management – which may lead to economic losses to financial institutions and merchants from check cashing,

debit and credit card transactions, e-commerce as well as other types of fraud such as identity theft that principally use fraudulent

identification documents as proof of identity;

Credit Card Approval – retail stores and financial institutions use our technology to scan a driver license at a kiosk

or at the Point Of Sale (POS) and send the information to underwriters and others to get instant approval for a loyalty-branded credit

This technique protects consumer data and is significantly more likely to result in a completed transaction compared to in-store

personnel asking customers to fill out a paper form;

Access – our systems and software are designed to increase security and deter terrorism at airports, shipping ports, rail

and bus terminals, military installations, high profile buildings and infrastructure where security is a concern;

Inefficiencies

Associated With Manual Data Entry – by reading encoded data contained in the bar code and magnetic stripe of an identification

card with a quick swipe or scan of the card, where permitted by law, customers are capable of accurately and instantaneously inputting

information into forms, applications and the like without the errors associated with manual data entry.

CARD READING AND VERIFICATION SECTOR

on Identification Documentation

driver license is the most widely used form of government issued photo identification in North America.

The Real ID Act, which became

federal law in May 2005, recognizes that the driver license is also a quasi-identification card.

In addition to its primary function,

the driver license is used to verify identity for social services, firearm sales, check cashing, credit card issuance and use and other

applications.

Our technology can read the digitally stored barcode information on all currently issued driver licenses (even those that

do not comply with the AAMVA/ANSI/ISO standards).

Today, all 50 states, the District of Columbia and all 13 Canadian provinces/territories

digitally store information on their driver license.

identification card

and Canadian Jurisdiction also provides a non-driver identification card as an alternative form of identification for those unable

to acquire a driver license.

On August 31, 2009, the Company acquired 100% of the common stock of Positive Access Corporation (“Positive Access”), a developer of driver license reading technology.

The acquisition of Positive Access expanded the Company’s technology portfolio and related product offerings and allowed the Company to reach a larger number of customers through Positive Access’s extensive distribution network.

On December 31, 2018, we formally merged the Mobilisa and Positive Access subsidiaries into one corporation under the name Intellicheck, Inc.

We are a prominent technology company that delivers on-demand digital identity validation solutions for KYC, fraud, and age verification needs.

We validate both digital and physical identities for financial services, fintech companies, BNPL providers, e-commerce, and retail commerce businesses, law enforcement and government agencies across North America.

Our software solutions can be used through a mobile device, a browser, or a retail point-of-sale scanner.

We plan to expand our business in the near term by pursuing a strategy designed to increase market share in our existing markets and expand into new product markets that are expected to benefit from fraud prevention and identity validation.

For example, we have extended our technologies into online applications to provide identity validation and fraud prevention for the billions of transactions that occur online each day.

We have also incorporated biometric, facial recognition and other enhancements to several of our current product offerings in order to stay on the leading edge of technology.

We plan to leverage our intellectual property in the markets we are targeting to strengthen our competitive position.

Our primary businesses include Identity Systems products, which include commercial applications of identity card reading authentication.

Our technologies address problems such as:

■ Commercial Fraud and Risk Management – which may lead to economic losses to financial institutions and merchants from check cashing, debit and credit card transactions, account take overs, e-commerce as well as other types of fraud such as identity theft that principally use fraudulent identification documents as proof of identity;

■ Instant Credit Card Approval – retail stores and financial institutions use our technology to scan a driver license at a kiosk or at the Point of Sale (POS) to confirm that an applicant is who they claim to be with additional certainty.

Once confirmed that the driver license is valid, the transaction can proceed to the underwriting stage where qualified applicants can get instant approval for a loyalty-branded credit card.

This technique protects consumer data and is significantly more likely to result in a completed transaction compared to in-store personnel asking customers to fill out a paper form and then entering the data;

■ Age Restricted Product Access – Products validate driver licenses and other government forms of identification to confirm the age of customers purchasing age restricted products.

Target industries include alcohol, cannabis, tobacco, gambling, bars and nightclubs.

■ Unauthorized Access – our systems and software are designed to increase security and deter terrorism at airports, shipping ports, rail and bus terminals, military installations, high profile buildings and infrastructure where security is a concern;

■ Fraudulent Retail Purchase Returns – Implementing our validation software solutions can prevent fraudulent retail returns in situations where customers are seeking store credit or cash compensation for items being returned without a receipt when the transaction requires a driver license for identification;

■ Inefficiencies Associated with Manual Data Entry – by reading encoded data contained in the bar code and magnetic stripe of an identification card with a quick swipe or scan of the card, where permitted by law, customers are capable of accurately and instantaneously inputting information into forms, applications and the like without the errors associated with manual data entry.

IDENTITY CARD READING AND VERIFICATION SECTOR

Background on Identification Documentation

Driver license

The driver license is the most widely used form of government issued photo identification in North America.

The Real ID Act, which became federal law in May 2005, recognizes that the driver license is also a quasi-identification card.

In addition to its primary function, the driver license is used to verify identity for social services, firearm sales, check cashing, credit card issuance and use and other applications.

Our technology can read the digitally stored barcode information on all currently issued driver licenses even those that do not comply with the standards of the American Association of Motor Vehicle Administrators (“AAMVA”), the American National Standards Institute (“ANSI”) and the International Standards Organization (“ISO”).

Today, all 50 states, the District of Columbia and all 13 Canadian provinces/territories digitally store information on their driver license.

Non-driver identification card

and Canadian Jurisdiction also provides a non-driver identification card as an alternative form of identification for those unable to acquire a driver license.

These identification cards are issued with most of the same data found on a driver license.

Military documents

also provide a means of identification and contain encoded data as well.

Since driver licenses are the most widely used form of legally

acceptable government documentation, we refer to all these identification documents as “driver licenses.” Intellicheck Platform

software can perform its function on all these forms of identification.

Challenges Associated with Verifying Identification Documents

high-tech revolution, coupled with the staggering amount of personal information available from data breaches, has created a major problem

for those who rely on identification documents.

In an age where high-tech scanners, computers and color printers are commonplace, and

where personal information so cheap to purchase, fake IDs of the highest quality with the identity theft victim’s actual information

on the document are easily obtainable from many locations including college campuses and from multiple sites on the Internet.

appear so real, even law enforcement agencies have encountered difficulty distinguishing them from legally issued documents.

Additionally,

these high-tech devices can easily alter properly issued forms of ID.

Therefore, anyone can gain access to a false identity that gives

them the ability, in a commercial transaction, to present fake and stolen credit cards or checks that are supported by false identification.

Additionally, starting with only a fraudulent driver license, an individual may be able to create multiple identities, commit fraud,

buy age restricted products such as alcohol and tobacco while underage, evade law enforcement and engage in other criminal activities,

identity theft

entrance to high profile buildings and sensitive infrastructures

boarding airplanes

in medical fraud

credit card, debit card and check cashing fraud

age restricted products such as alcohol and tobacco while underage, and

purchasing firearms

welfare or other government benefits.

committing pharmacy fraud including false narcotic prescriptions

the ease with which identification can be falsified, simply looking at a driver license may not be sufficient to verify age or identity

and determine if it is fraudulent.

Since merchants and financial institutions are facing significant economic losses due to these frauds,

we believe that a document authentication system which can accurately read the digitally stored information is needed.

We possess patented

technology that provides an analysis of the data contained on the encoded formats of these identification documents by reading and analyzing

the encoded format on the magnetic stripe or bar code on the driver license and comparing it against known standards.

PRODUCTS AND SERVICES

Products and Services are generally sold as Software as a Service (“SaaS”) where customers pay for our cloud-based service.

Systems Products and Services

Identity Systems are marketed to the Commercial, Retail, Financial and Government identification sectors.

Identification

Intellicheck®

Intellicheck Platform is a complete identity solution that checks whether an ID is valid, matches the ID to the person presenting it,

and provides a risk score to help determine the risk of doing business with that person.

It is designed to be used in online and retail

using devices that can include a mobile phone, a PC and a retail scanner.

The Intellicheck platform is designed to address the needs

of users across a variety of use cases including account access, account open, receipt-less returns, receipt of delivery, age restricted

purchases and more.

its own technology, Intellicheck provides the ability to use an iOS or Android phone, or a retail scanner to read and verify the encoded

format contained on U.S.

and Canadian driver licenses, state issued non-driver identification cards, and military IDs.

Our technology

has the ability to verify the encoded formats on all currently encoded documents, even those that do not comply with the standards of

the American Association of Motor Vehicle Administrators (‘‘AAMVA’’), the American National Standards Institute

(‘‘ANSI’’) and the International Standards Organization (‘‘ISO’’).

integrated third-party technology, Intellicheck offers the ability, through IDN-Direct, to scan and verify over 10,000 documents around

the world including drivers licenses, state identity documents and passports.

can quickly determine if:

format of the document is valid;

document has been altered or is fake, by displaying the parsed, encoded data for comparison with the printed information;

document has expired;

encoded data contains a date of birth equal to or greater than the legal age to purchase age restricted products, such as alcohol,

vaping, cannabis and tobacco

the person to the ID

integrates third party software to provide the ability to match a selfie of a person to the picture on the driver license.

biometrics capabilities allow the Intellicheck platform to check for liveness to ensure that static photos are not being used as a stand-in

for the user on both ends of the match, and the ability to match the ID photo to the self and provide a match score.

This capability

is integrated into the Intellicheck platform to allow for fast deployment and is an option for platform subscribers.

the risk score

Intellicheck platform offers the ability to analyze data or signals to determine the risk of doing business with the person on the identity

Intellicheck provides access to a wide variety of data signals including device fingerprinting, IP address, phone number, time

zone, geo location and more to analyze, using machine learning, the risk of doing business with that person.

the Platform is Delivered

Intellicheck Platform consists of the following elements:

is an Intellicheck-branded identity validation application that can be set-up for a user

in under an hour.

It provides the ability to scan an ID using a mobile phone and the optional

ability to perform a facial biometrics test to match the picture on the ID to a selfie of

the user presenting the ID.

IDN-Portal provides the flexibility to allow the Intellicheck

customer or their customer to perform the scan and allows the Intellicheck customer to manage

their application online using the PC.

● IDN-Portal+

Military documents and passports also provide a means of identification and contain encoded data as well.

Since driver licenses are the most widely used form of legally acceptable government documentation, we refer to all these identification documents as “driver licenses.” Our software can perform its function on all these forms of identification.

Current Challenges Associated with Verifying Identification Documents

The high-tech revolution, coupled with the staggering amount of personal information available from data breaches, has created a major problem for those who rely on identification documents.

In an age where high-tech scanners, computers and color printers are commonplace, and where personal information is so cheap to purchase off of the 'dark web', fake IDs of the highest quality with the identity theft victim’s actual information on the document are easily obtainable from many locations including college campuses and from multiple sites on the Internet.

These fakes appear so real, even law enforcement agencies have encountered difficulty distinguishing them from legally issued documents.

Additionally, high-tech equipment can easily alter properly issued forms of ID.

Therefore, anyone can gain access to a false identity that gives them the ability, in a commercial transaction, to present fake and stolen credit cards or checks that are supported by false identification.

Additionally, starting with only a fraudulent driver license, an individual may be able to create multiple credit accounts, commit fraud, buy age restricted products such as alcohol, tobacco and cannabis while underage, evade law enforcement and engage in other criminal activities, such as:

• committing identity theft

• gaining entrance to high profile buildings and sensitive infrastructures

• improperly boarding airplanes

• engaging in medical fraud

• committing credit card, debit card and check cashing fraud

• purchasing age restricted products such as alcohol, cannabis and tobacco while underage

• illegally purchasing firearms

• obtaining welfare or other government benefits.

• unlawfully committing pharmacy fraud including false narcotic prescriptions;

• committing refund fraud

Given the ease with which identification can be falsified, simply looking at a driver license may not be sufficient to verify age or identity and determine if it is fraudulent.

Since merchants and financial institutions are facing significant economic losses due to these frauds, we believe that a document authentication system which can accurately read the digitally stored information is needed.

We possess patented technology that provides an analysis of the data contained on the encoded formats of these identification documents by reading and analyzing the encoded format on the magnetic stripe or bar code on the driver license and comparing it against known standards.

OUR PRODUCTS AND SERVICES

Our Products and Services are generally sold as Software as a Service (“SaaS”) where customers pay for our cloud-based service.

Identity Systems Products and Services

Our Identity Systems are marketed to the Commercial, Retail, Financial and Government identification sectors.

Commercial Identification

Intellicheck ® Platform

The Intellicheck Platform is a complete identity solution that checks whether an ID is valid, matches the ID to the person presenting it, and provides a risk score to help determine the risk of doing business with that person.

It is designed to be used in online and retail settings using devices that can include a mobile phone or tablet, a PC or retail scanner.

The Intellicheck Platform is designed to address the needs of users across a variety of use cases including account access, account openings, receipt-less returns, receipt of delivery, age restricted purchases and more.

Validating the ID

Using its own proprietary technology, Intellicheck utilizes an iOS or Android phone, or a retail scanner to read and verify the encoded format contained on U.S.

and Canadian driver licenses, state issued non-driver identification cards, military IDs and passports.

Our technology has the ability to verify the encoded formats on all currently encoded documents, even those that do not comply with the standards of the AAMVA, ANSI and ISO.

Using integrated third-party technology, Intellicheck offers the ability, through certain platforms, to scan and verify over 10,000 documents around the world including drivers licenses, state identity documents and passports.

Our Intellicheck Platform can quickly determine if:

• the format of the document is valid;

• the document has been altered or is fake, by displaying the parsed, encoded data for comparison with the printed information;

• the document has expired;

• the encoded data contains a date of birth equal to or greater than the legal age to purchase age restricted products, such as alcohol, vaping, cannabis and tobacco.

Matching the person to the ID

Intellicheck integrates third party software to provide the ability to match a selfie of a person to the picture on the driver license.

These facial biometrics capabilities allow the Intellicheck platform to check for likeness to ensure that static photos are not being used as a stand-in for the user on both ends of the match, in addition to the ability to match the ID

photo to the selfie and provide a match score.

This capability is integrated into the Intellicheck platform to allow for fast deployment and is an option for platform subscribers.

Determining the risk score

The Intellicheck platform offers the ability to analyze data or signals to determine the risk of doing business with the person on the identity document.

Intellicheck provides access to a wide variety of data signals including device fingerprinting, IP address, phone number, time zone, geographic location and more to analyze, using machine learning, the risk of doing business with that person.

How the Platform is Delivered

The Intellicheck Platform consists of the following elements:

• IDN-Portal is an Intellicheck-branded identity validation application that can be typically set-up for a user in under an hour.

It provides the ability to scan an ID using a mobile phone or tablet.

IDN-Portal provides the flexibility to allow the Intellicheck customer or their customer to perform the scan and enables the Intellicheck customer to manage their application online using the PC.

• IDN-Portal+

starts with all the features in IDN-Portal plus the ability to brand the application, use

a retail scanner to validate an ID, and get additional data for analytics and analysis.

provides the capabilities of the Intellicheck platform within the users own apps and integrated

with their systems.

IDN-Direct is accessible through the Intellicheck API to aid integration

into customer applications and systems.

IDN-Direct also provides an SDK to simplify integration

into the user’s mobile applications.

IDN-Direct provides access to additional data

and also provides the ability to use the platform’s Risk Score capability to help with

decision-making.

● Intellicheck

○ Intellicheck

Mobile is the pre-build iOS and Android application for use by purchasers of IDN-Portal and

The Intellicheck Mobile app provides that ability to login and scan an ID.

app also, depending on the level of Intellicheck service purchased has access to additional

data once the document has been analyzed.

of the Platform

• IDN-Portal+ starts with all the features of IDN-Portal in addition to the ability to perform a facial biometrics test to match the picture on the ID to a selfie of the user presenting the ID.

Additionally, Portal+ offers global document validation, retail POS integration, additional data for analytics and analysis and online validation among other features.

• IDN-Direct provides the capabilities of the Intellicheck platform within the users own apps and integrated with their systems.

IDN-Direct is accessible through the Intellicheck API to aid integration into customer applications and systems.

IDN-Direct also provides an SDK to simplify integration into the user’s mobile applications.

IDN-Direct provides access to additional data and also provides the ability to use the platform’s Risk Score capability to help with decision-making.

• Intellicheck Mobile

• Intellicheck Mobile is the pre-build iOS and Android application for use by purchasers of IDN-Portal and IDN-Portal+.

The Intellicheck Mobile app provides that the ability to login and scan an ID.

The app also, depending on the level of Intellicheck service purchased has access to additional data once the document has been analyzed.

Advantages of the Platform

• Fast results

• The Intellicheck platform provides results of an ID scan in under a second.

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• Fast deployment

With IDN-Portal or IDN-Portal+, customers can be up and running in under an hour.

• With IDN-Portal or IDN-Portal+, customers can typically be up and running in under an hour.

• Accurate ID validation

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For the rest of the world, Intellicheck provides best of breed document accuracy.

Aware Software

patented State Aware Software solution provides or restricts information that is electronically scanned from an ID based on the electronic

reading laws according to the state in which the ID is scanned.

For example, scanning an ID in New Hampshire for law enforcement purposes

is allowed, whereas electronically scanning an ID for a mailing list is not allowed.

With all the various uses of scanning and verifying

an ID, it is important for responsible users to be aware of the different state laws.

State Aware Software incorporates each state’s

requirements around electronic capture of ID barcode data directly into hosted Intellicheck Platform.

Collection Devices

software products are designed for use with multiple data collection devices, which are commercially available in various compact forms

and may contain either one or both of 2-D bar code and magnetic stripe readers.

These devices enable our software applications to be

used on a variety of commercially available data processing devices, including credit card terminals, PDAs, tablets, laptops, desktops,

mobile phones, and point-of-sale terminals.

Many of these devices contain an electronic serial number (ESN) to prevent unauthorized use

of our software.

Credit Application Kiosk Software Applications

are custom software applications that Intellicheck developed for a variety of major financial service companies and retail stores.

software installed on multiple kiosk devices provides the customers of the major financial service companies and retail stores with the

ability to perform in-store instant credit approval on these devices.

The hardware platforms, on which the software applications run,

range from stationary devices to handhelds to tablet PCs.

The process involves the swiping or scanning of the driver license to verify

the encoded format and after verification, the information parsed from the encoded data is populated into the proper fields on the application

displayed on the kiosk.

The applicant then completes the application by entering the remaining required information that is not encoded

on the driver license, such as social security and telephone numbers.

The software application then sends the data to the financial service

company’s backend ‘‘decisioning’’ tool for credit approval.

If approved, the applicant is granted instant

credit which can then be used to make purchases.

Intellicheck Platform Products and related databases are constantly updated to stay current with identification formats and new forms

objective is to be a leading identity verification company providing world class solutions in the identity sector.

These solutions include

our commercial identity systems focusing on workflow, productivity enhancement, fraud protection and risk management segments.

of our strategy are as follows:

State Aware Software

Our patented State Aware Software solution provides or restricts information that is electronically scanned from an ID based on the electronic reading laws according to the state in which the ID is scanned.

For example, scanning an ID in New Hampshire for law enforcement purposes is allowed, whereas electronically scanning an ID for a mailing list is not allowed.

With all the various uses of scanning and verifying an ID, it is important for responsible users to be aware of the different state laws.

State Aware Software incorporates each state’s requirements around electronic capture of ID barcode data directly into hosted Intellicheck Platform.

Data Collection Devices

Our software products are designed for use with multiple data collection devices, which are commercially available in various compact forms and may contain either one or both of 2-D bar code and magnetic stripe readers.

These devices enable our software applications to be used on a variety of commercially available data processing devices, including credit card terminals, PDAs, tablets, laptops, desktops, mobile phones, and point-of-sale terminals.

Many of these devices contain an electronic serial number (ESN) to prevent unauthorized use of our software.

Instant Credit Application Kiosk Software Applications

These are custom software applications that Intellicheck developed for a variety of major financial service companies and retail stores.

The software installed on multiple kiosk devices provides the customers of the major financial service companies and retail stores with the ability to perform in-store instant credit approval on these devices.

The hardware platforms, on which the software applications run, range from stationary devices to handhelds to tablet PCs.

The process involves the swiping or scanning of the driver license to verify the encoded format and after verification, the information parsed from the encoded data is populated into the proper fields on the application displayed on the kiosk.

The applicant then completes the application by entering the remaining required information that is not encoded on the driver license, such as social security number and telephone numbers.

The software application then sends the data to the financial service company’s backend “decisioning” tool for credit approval.

If approved, the applicant is granted instant credit which can then be used to make purchases.

Upgrade Capability

Our Intellicheck Platform products and related databases are constantly updated to stay current with identification formats and new forms of ID.

Our objective is to be a leading identity verification company providing world class solutions in the identity sector.

These solutions include our commercial identity systems focusing on workflow, productivity enhancement, fraud protection and risk management segments.

Key elements of our strategy are as follows:

Commercial Systems

Productivity Enhancement.

We market our technology as a key productivity enhancement tool.

Our proprietary Intellicheck Platform software can

add functionality to virtually any given software application to automatically populate fields within a given form, when a government-issued

photo ID is presented.

Our proprietary Intellicheck Platform software can add functionality to virtually any given software application to automatically populate fields within a given form, when a government-issued photo ID is presented.

Our ability to correctly read and authenticate all U.S.

jurisdictions, coupled with our proprietary technology,

is a key differentiator from our competitors.

The automation resulting from the intelligence added to the form dramatically increases

throughput and data integrity, and it significantly enhances the customer’s experience.

Additional Strategic Alliances with Providers of Security Solutions .

We have entered strategic alliances to utilize our systems and

software as the proposed or potential enrollment application for their technologies and to jointly market these security applications

with multiple biometric companies.

jurisdictions, coupled with our proprietary technology, is a key differentiator from our competitors.

The automation resulting from the intelligence added to the form dramatically increases throughput and data integrity, and it significantly enhances the customer’s experience.

Develop Additional Strategic Alliances with Providers of Security Solutions .

We have entered strategic alliances to utilize our systems and software as the proposed or potential enrollment application for their technologies and to jointly

market these security applications with multiple biometric companies.

Some of these companies have included Lenel, AMAG Technology, Inc., in the defense industry;

Technologies hardware manufacturers;

Zebra Technologies hardware manufacturers;

and Idemia Identity & Security USA, facial biometrics companies Ipsidy and Applied Recognition.

We are an associate member of AAMVA and a member of AAMVA’s Industry Advisory Board.

We believe these relationships will broaden

our marketing reach through their sales efforts and we intend to develop additional strategic alliances with additional providers of

security solutions.

Sales and Marketing Efforts .

We intend to capitalize on the growth in demand for document verification and productivity enhancement

by continuing to market and support our systems and software.

Our sales and marketing departments are organized by region and specifically

named accounts to provide focus and proximity to build solid long-term relationships.

Our recent focus has been on SaaS license arrangements

in the financial services, retail, and hospitality services industries.

into Additional Licensing Agreements .

We believe these relationships will broaden our marketing reach through their sales efforts and we intend to develop additional strategic alliances with additional providers of security solutions.

Strengthen Sales and Marketing Efforts .

We intend to capitalize on the growth in demand for document verification and productivity enhancement by continuing to market and support our systems and software.

Our sales and marketing departments are organized by region and specifically named accounts to provide focus and proximity to build solid long-term relationships.

Our recent focus has been on SaaS license arrangements in the financial services, retail, and hospitality services industries.

Enter into Additional Licensing Agreements .

We intend to continue to license our software for use with a customer’s system.

currently licensing our SDK software product for Windows, iOS, Android and other operating system platforms and intend to similarly continue

to license our PC software solutions.

We are currently licensing our SDK software product for Windows, iOS, Android and other operating system platforms and intend to similarly continue to license our PC software solutions.

Our software is intended to be used with a compatible hardware device.

We have entered into multiple

licensing agreements to date.

Intellectual Property .

We intend to protect our intellectual property portfolio to preserve value and obtain favorable settlements

where warranted.

Revenue Sources

derive our revenue primarily from the following sources:

of our systems by both our own direct sales force and marketing partners;

transaction or fixed price (SaaS) from the licensed use of our technology;

Non-Recurring

services revenue, which includes training, installation customization and configuration;

warranties on equipment

subscription and Support Services, such as jurisdictional updates to certain commercial customers and support

hardware sales related to SaaS implementation, Windows CE and Windows Mobile

Target Industry Sectors

Identity Systems

use of false identification cards, primarily driver licenses and non-driver identification cards, to engage in commercial fraud, to gain

access to unauthorized areas and to gain entry to critical infrastructure is all too common and the problem is growing with each passing

Given the ease with which identification can be falsified, we believe that simply looking at a driver license is not sufficient

to verify identity and determine if such an identification card is fraudulent.

Since merchants and financial institutions are facing

significant economic losses due to these frauds, we believe that what they need is a document authentication system that can accurately

read the digitally stored information.

We target the industry sectors that would most benefit from our systems and software.

also market our products to opportunities where our Intellicheck Platform technology can be used to enhance productivity.

significant progress in the sectors for the retail issuance of instant credit.

We believe there are financial benefits and compelling

business models for customers in this sector to utilize our technology.

merchandisers and retailers

dealerships and rental car agencies

and other financial institutions

for enrollment of guests

We have entered into multiple licensing agreements to date.

Protect Intellectual Property .

We intend to protect our intellectual property portfolio to preserve value and obtain favorable settlements where warranted.

Our Revenue Sources

We derive our revenue primarily from the following sources:

■ Sales of our systems by both our own direct sales force and marketing partners;

■ Per transaction or fixed price (SaaS) revenue from the licensed use of our technology;

■ Extended warranties on equipment;

■ Other subscription and Support Services, such as jurisdictional updates to certain commercial customers and support services.

Our Target Industry Sectors

Commercial Identity Systems

The use of false identification cards, primarily driver licenses and non-driver identification cards, to engage in commercial fraud, to gain access to unauthorized areas and to gain entry to critical infrastructure is all too common and the problem is growing with each passing day.

Given the ease with which identification can be falsified, we believe that simply looking at a driver license is not sufficient to verify identity and determine if such an identification card is fraudulent.

Since merchants and financial institutions are facing significant economic losses due to these frauds, we believe that what they need is a document authentication system that can accurately read the digitally stored information.

We target the industry sectors that we believe would benefit most from our systems and software.

We also market our products to opportunities where our Intellicheck Platform technology can be used to enhance productivity.

We have made significant progress in the sectors for the retail issuance of instant credit.

We believe there are financial benefits and compelling business models for customers in this sector to utilize our technology.

Productivity Enhancement

■ Mass merchandisers and retailers

■ Auto dealerships and rental car agencies

■ Banks and other financial institutions

■ Casinos for enrollment of guests

■ Credit unions

patient admissions

cashing services

fraud protection

merchandisers and retailers☐

dealerships and rental car agencies

and other financial institutions

cage operations

medical facilities and health plans

cashing services

of Motor Vehicles

enforcement agencies

establishments

of Homeland Security

refineries and storage facilities

rail and port facilities

and night clubs

and gaming establishments

■ Hospital patient admissions

■ Credit card issuers

■ Lodging Industry

■ Check cashing services

Commercial fraud protection

■ Mass merchandisers and retailers

■ Auto dealerships and rental car agencies

■ Banks and other financial institutions

■ Casino cage operations

■ Credit unions

■ Hospitals, medical facilities and health plans

■ Credit card issuers

■ Lodging Industry

■ Check cashing services

Access control

■ Airports and airlines

■ Departments of Motor Vehicles

■ Law enforcement agencies

■ Notable buildings

■ Military establishments

■ Court houses

■ College campuses

■ Nuclear facilities

■ Department of Homeland Security

■ Oil refineries and storage facilities

■ Bus, rail and port facilities

Age verification

■ Bars and night clubs

■ Stadiums and arenas

■ Convenience stores

■ Casinos and gaming establishments

■ Grocery chains

■ Law Enforcement

■ Restaurants

■ Firearm dealers

■ Cannabis Industry

Enforcement/Government

Law Enforcement/Government

■ Drug Enforcement Administration

6 unchanged sentences

■ Border Patrol

AND DISTRIBUTION

Identity Systems

objective is to become a leading developer and distributor of document and age verification products.

To date, our marketing efforts

have been through direct sales by our sales and marketing personnel, through resellers and license agreements.

We are marketing our products

through direct marketing approaches such as web marketing, a small number of select trade shows and well-known public interest and trade

associations.

generate revenues from the licensing of our software and to a lesser extent the selling of bundled solutions that contain hardware and

MARKETING AND DISTRIBUTION

Commercial Identity Systems

Our objective is to become a leading developer and distributor of document and age verification software.

To date, our marketing efforts have been through direct sales by our sales and marketing personnel, through resellers and license agreements.

W e are marketing our products through direct marketing approaches such as web marketing, a small number of select trade shows and well-known public interest and trade associations.

We generate revenues from the licensing of our software and to a much lesser extent the selling of bundled solutions that contain hardware and software.

Depending on the specific needs of our clients, we tailor the right solution for them.

Intellicheck Platform software is available to customers via the cloud (SaaS) and available for Microsoft Windows platforms, Android

and iOS in addition to devices such as credit card terminals and other operating systems such as Linux.

We are marketing our Intellicheck

Platform technology to the financial institutions, mass merchandisers, government, airlines, airports, high profile buildings or infrastructure,

grocery, convenience and pharmacy chains, and casinos.

have developed a comprehensive marketing plan to build customer awareness and develop brand recognition in our target industry sectors.

Our Intellicheck Platform software is available to customers via the cloud (SaaS) and is available for Microsoft Windows, Android and iOS platforms in addition to devices such as credit card terminals and other operating systems such as Linux.

We are marketing our Intellicheck Platform technology to financial institutions, mass merchandisers, government, airlines, airports, high profile buildings or infrastructure, grocery, convenience and pharmacy chains, and casinos.

We have developed a comprehensive marketing plan to build customer awareness and develop brand recognition in our target industry sectors.

We promote the advantages and ease of use of our products through:

by nationally known public interest groups and trade associations;

seminars, as well as our own website;

■ Endorsements by nationally known public interest groups and trade associations;

■ Web seminars, as well as our own website;

■ Trade publications;

■ Various conventions and industry specific seminars.

intend to continue to develop and market other related software applications.

the composition of our largest customers has changed from year to year, a significant portion of our revenues have been attributable

to a limited number of major customers.

■ Trade shows;

We intend to continue to develop and market other related software applications.

MAJOR CUSTOMERS

Although the composition of our largest customers has changed from year to year, a significant portion of our revenues have been attributable to a limited number of major customers.

In 2022, our top ten customers accounted for approximately 72% of total revenues.

top ten customers accounted for approximately 75% of total revenues.

While we believe that one or more major customers could account

for a significant portion of our sales for at least the next two years, we anticipate that our customer base will continue to expand

and that in the future we will be less dependent on major customers.

sale and use of our Identity System products are subject to regulation, such as on data protection and storage, by government authorities.

In 2021, our top ten customers accounted for approximately 79% of total revenues.

While we believe that one or more major customers could account for a significant portion of our sales for at least the next two years, we anticipate that our customer base will continue to expand and that in the future we will be less dependent on major customers.

The sale and use of our Identity System products are subject to regulation, such as on data protection and storage, by government authorities.

We work on an ongoing basis with our customers to facilitate their compliance with such regulations.

Additionally, we believe that we

are currently in compliance with applicable United States, state and local laws and regulations relating to the protection of the environment.

Identity Systems

compete in an industry that is intensely competitive and rapidly changing.

Unless a device can read, decode and analyze all the information

that is legally permitted to be analyzed, which is digitally stored within the barcode on a driver license, the user may not obtain accurate

and reliable confirmation that a driver license is valid and has not been altered or tampered with.

We are aware of several companies

that are currently offering products that electronically read and calculate age from a driver license.

We have tested and compared some

of these products to the Intellicheck Platform and believe that our product is superior in quality and functionality.

We believe that

units unable to read bar codes are at a significant disadvantage because all states and Canadian provinces currently utilize bar codes

to encode their driver licenses, as well as all U.S.

Additionally, we believe that we are currently in compliance with applicable United States federal laws, state and local laws and regulations relating to the protection of the environment.

Commercial Identity Systems

We compete in an industry that is intensely competitive and rapidly changing.

Unless a device can read, decode and analyze all the information that is legally permitted to be analyzed, which is digitally stored within the barcode on a driver license, the user may not obtain accurate and reliable confirmation that a driver license is valid and has not been altered or tampered with.

We are aware of several companies that are currently offering products that electronically read and calculate age from a driver license.

We have tested and compared some of these products to the Intellicheck Platform and believe that our product is superior in quality and functionality.

We believe that units unable to read bar codes are at a

significant disadvantage because all states and Canadian provinces currently utilize bar codes to encode their driver licenses, as well as all U.S.

military IDs and uniformed services cards.

have experienced and expect to continue to experience increased competition in the document verification sector.

If any of our competitors

were to become the industry standard or were to enter or expand relationships with significantly larger companies through mergers, acquisitions

or otherwise, our business and operating results could be seriously harmed.

In addition, potential competitors could bundle their products

or incorporate functionality into existing products in a manner that discourages users from purchasing our products.

We have experienced and expect to continue to experience increased competition in the document verification sector.

If any of our competitors were to become the industry standard or were to enter or expand relationships with significantly larger companies through mergers, acquisitions or otherwise, our business and operating results could be seriously harmed.

In addition, potential competitors could bundle their products or incorporate functionality into existing products in a manner that discourages users from purchasing our products.

MANUFACTURING

do not manufacture readers or input devices but use products from several manufacturers.

Some of these devices are private labeled and

programmed by the supplier to work with our Intellicheck Platform technology.

Most of our hardware consists of commercial off-the-shelf

(“COTS”) products.

We do not manufacture readers or input devices but use products from several manufacturers.

Some of these devices are private labeled and programmed by the supplier to work with our Intellicheck Platform technology.

Most of our hardware consists of commercial off-the-shelf (“COTS”) products.

We rely on a small number of suppliers to provide our COTS products.

AND DEVELOPMENT

research and development (“R&D”) efforts are mainly concentrated in two areas.

The most significant effort is concentrated

in the identity sector.

We modify existing software applications based on customer’s requirements, which are fee based.

we develop new software solutions and make improvements to existing software platforms, which are funded internally.

currently hold eighteen (18) U.S.

RESEARCH AND DEVELOPMENT

Our research and development efforts are mainly concentrated in the area of identity verification.

Research and development expenses consist primarily of employee salaries, benefits, bonuses, and stock-based compensation.

Research and development expenses also include consulting fees, software and subscription services, and a portion of our third-party cloud infrastructure expenses incurred in maintaining our platform.

INTELLECTUAL PROPERTY

We currently hold eighteen (18) U.S.

patents and one (1) Canadian patent.

At present, we have two patent applications pending in the U.S.

At present, we have three patent applications pending in the U.S.

Patent and Trademark Office.

These patents cover commercially important aspects of our capabilities relating to the authentication and

verification of identification documents.

We will continue to pursue patents for all our new technologies arising from our research and

development efforts.

January 1999, the U.S.

These patents cover commercially important aspects of our capabilities relating to the authentication and verification of identification documents.

We will continue to pursue patents for all our new technologies arising from our research and development efforts.

In January 1999, the U.S.

Patent and Trademark Office granted us a patent on our ID Check ® software technology.

In October 2002, April

2004, July 2005 and January 2009, we were granted additional patents that are a continuation of our patents relating to our document

authentication and age verification technology.

Upon our acquisition of the assets of IDentiScan, we also received equitable ownership

and sole ownership rights to its intellectual property, including other patents and patent applications relating to age verification

2010, we were granted two additional patents.

In October 2002 and July 2005, we were granted additional patents that are a continuation of our patents relating to our document authentication and age verification technology.

Upon our acquisition of the assets of IDentiScan, we received equitable ownership and sole ownership rights to its intellectual property, including other patents and patent applications relating to age verification technology.

During 2010, we were granted two additional patents.

The first patent was for a software key control for mobile devices.

It is used to get a

registration key for the parser that is based on the unique internal ID of one mobile device.

The Mobile Key Manager communicates with

the mobile device, reading its ID, and then requests a registration key specific for that ID from Intellicheck Mobilisa’s server.

This server maintains a database of all customers using IDecode Mobile Parsers, including the number of licenses they have purchased,

the latest software version for which they have paid support, and the registration keys and unique device IDs associated with those licenses.

It is used to get a registration key for the parser that is based on the unique internal ID of one mobile device.

The Mobile Key Manager communicates with the mobile device, reading its ID, and then requests a registration key specific for that ID from Intellicheck's server.

This server maintains a database of all customers using IDecode Mobile Parsers, including the number of licenses they have purchased, the latest software version for which they have paid support, and the registration keys and unique device IDs associated with those licenses.

The server generates a new registration key unique to the device ID and returns it to the Mobile Key Manager to register that device.

In this way, the customer can deploy the IDecode Mobile Parser to only one mobile device for each parser purchased.

second patent was related to a document comparison system and reinforces the innovative nature of Intellicheck’s security solutions

involving documents.

The technology described in the patent relates to a system and method for comparing information contained in at

least two documents.

For example, information on at least two different documents can be compared to determine whether the information

is the same on each document.

For instance, a name contained on an individual’s driver’s license is automatically compared

with a name contained on the individual’s airline boarding pass.

2011, we were issued another patent.

This patent allows for verifying and authenticating the encoded information on driver licenses of

all 50 states and other North American driver licenses and allows the information to be electronically transferred in a secure environment

to a local or remote jurisdiction for age verification, organ donor, or criminal activity checks critical in fighting both crime and

2012, we were granted a patent relating to a system and method for comparing information contained in at least two documents, but not

limited to just a driver license and passport.

This patent compares “like information” on different documents to determine

whether the information is the same on each document.

As an example, a passport is compared to a boarding pass to determine if “like

information” matches, for instance name and birthdate.

were also granted a patent related to a system that uses environmental information to determine a level of scrutiny that is to be applied

to identification information received at a location where user identification is being checked.

Depending on the level of scrutiny that

is applied and on generated candidate scores, the system will display many potential persons of interest that match the received identification

2013, we were granted four patents that are continuations of previously filed applications we previously filed.

One patent is related

to a document comparison system that compares information contained in two documents to determine whether the information is substantially

identical on each document.

An indication is provided as to whether the two documents identify the same entity or do not identify the

The second patent relates to improvements to software key control for mobile devices.

The third patent relates to an apparatus

for extracting date of birth information from driver’s licenses and displaying a calculated age along with a license background

Finally, the fourth patent is related to a system that uses environmental information to determine a level of scrutiny that

is to be applied to identification information received at a location and to display many potential persons of interest that match the

received identification information based on the applied level of scrutiny.

2014, we were granted one patent that was also a continuation of an earlier-filed application.

The patent is related to a document comparison

system that compares information contained in two documents to determine whether certain information is substantially identical on each

The second patent was related to a document comparison system and reinforces the innovative nature of Intellicheck’s security solutions involving documents.

The technology described in the patent relates to a system and method for comparing information contained in at least two documents.

For example, information on at least two different documents can be compared to determine whether the information is the same on each document.

For instance, a name contained on an individual’s driver’s license is automatically compared with a name contained on the individual’s airline boarding pass.

In 2012, we were granted a patent relating to a system and method for comparing information contained in at least two documents, but not limited to just a driver license and passport.

This patent compares “like information” on different documents to determine whether the information is the same on each document.

As an example, a passport is compared to a boarding pass to determine if “like information” matches, for instance name and birthdate.

In 2014, we were granted one patent that was also a continuation of an earlier-filed application.

The patent is related to a document comparison system that compares information contained in two documents to determine whether certain information is substantially identical on each document.

The system provides a positive or negative indication as to whether portions of the two documents are substantially identical.

2015, we acquired an intellectual property portfolio that includes four patents involving technologies for checking the validity of identification

documents using a remote database.

Certain patents in this portfolio address the use of biometric information and identification credentials

as part of the process to control access to a secured area.

2015 we were granted two patents.

The first patent is related to a system and method for comparing documents.

The second patent is identity

matching in response to threat levels.

2016, we were granted three patents that were a continuation of earlier filed applications.

The first patent related to comparing documents.

The second patent related to identity in response to threat levels.

Finally, the third patent is related to checking the validity of

identification documents using a remote database.

were also granted two patents in 2016 in Canada.

The first patent is related to a system and method for comparing documents.

patent is related to identity matching in response to threat levels.

were granted one patent in 2017 that was also a continuation of an earlier filed application.

The patent is related to checking the validity

of identification documents using a remote database.

2018, we were granted one patent that was also a continuation of an earlier filed application to a document comparison that compares

information contained in multiple documents.

were granted two patents in 2019 that were a continuation of earlier filed applications.

The first patent is related to checking the

validity of identification documents using a remote database.

The second patent related to identification scanning in compliance with

jurisdictional or other rules.

2020, we were granted two patents that were a continuation of earlier filed applications.

The first patent is related to checking the

validity of identification documents using a remote database.

The second patent is related to document comparison that compares information

contained in multiple documents.

2022, we were granted one patent that was a continuation of earlier filed applications.

This patent is related to using a mobile device

to perform verification of a selfie to a photo on an identification document.

own multiple copyrights in the United States, which are effective in Canada and in other major industrial countries.

The copyright protection

covers software source codes and supporting graphics relating to the operation of the Intellicheck Platform and other software products.

In 2015, we acquired an intellectual property portfolio that includes four patents involving technologies for checking the validity of identification documents using a remote database.

Certain patents in this portfolio address the use of biometric information and identification credentials as part of the process to control access to a secured area.

In 2016 we were granted one patent in Canada that was a continuation of an earlier filed application and is related to identity matching in response to threat levels.

In 2018, we were granted one patent that was also a continuation of an earlier filed application to a document comparison that compares information contained in multiple documents.

We were granted two patents in 2019 that were a continuation of earlier filed applications.

The first patent is related to checking the validity of identification documents using a remote database.

The second patent related to identification scanning in compliance with jurisdictional or other rules.

In 2020, we were granted two patents that were a continuation of earlier filed applications.

The first patent is related to checking the validity of identification documents using a remote database.

The second patent is related to document comparison that compares information contained in multiple documents.

In 2022, we were granted two patents that were a continuation of earlier filed applications.

The first patent is related to using a mobile device to perform verification of a selfie to a photo on an identification document.

The second patent is related to a system and method for document comparison that compares information contained in multiple documents.

We own multiple copyrights in the United States, which are effective in Canada and in other major industrial countries.

The copyright protection covers software source codes and supporting graphics relating to the operation of the Intellicheck Platform and other software products.

We also have several trademarks relating to our company, its product names, and logos.

AND HUMAN CAPITAL RESOURCES

of March 24, 2022, we had 49 full-time employees.

Five are engaged in executive management such as our Chief Executive Officer

and Chief Financial Officer, twenty-two in information technology including those participating in our research and development efforts,

thirteen in sales and marketing, three in integration and customer support and six in administration.

All employees are employed “at

will.” We believe our relations with our employees are generally positive and we have no collective bargaining agreements with

any labor unions.

human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating our existing

and new employees.

The principal purposes of our equity compensation and cash incentive plans are to attract, retain and reward personnel,

whether existing employees or new hires, through the granting of equity and cash-based compensation awards.

We believe that this increases

value to our stockholders and the success of our company by motivating such individuals to perform to the best of their abilities and

achieve our objectives.

the success of our business is fundamentally connected to the well-being of our employees, we are committed to their health, safety and

We provide our employees and their families with access to convenient health and wellness programs, including benefits that

provide protection and security giving them peace of mind concerning events that may require time away from work or that impact their

financial well-being;

and that offer choice where possible so they can customize their benefits to meet their needs and the needs of

their families.

In response to the COVID-19 pandemic, we implemented and have continued significant changes that we determined were in

the best interest of our employees, as well as the community in which we operate, and which comply with government regulations, including

working in a remote environment where appropriate or required.

EMPLOYEES AND HUMAN CAPITAL RESOURCES

As of March 28, 2023, we had 53 full-time employees.

Four are engaged in executive management such as our Chief Executive Officer, Chief Financial Officer and Chief Technology Officer, twenty-five in information technology including those participating in our research and development efforts, fourteen in sales and marketing, four in customer and support integration, and six in administration.

All employees are employed “at will.” We believe our relations with our employees are generally positive and we have no collective bargaining agreements with any labor unions.

Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating our existing and new employees.

The principal purposes of our equity compensation and cash incentive plans are to attract, retain and reward personnel, whether existing employees or new hires, through the granting of equity and cash-based compensation awards.

We believe that this increases value to our stockholders and the success of our company by motivating such individuals to perform to the best of their abilities and achieve our objectives.

As the success of our business is fundamentally connected to the well-being of our employees, we are committed to their health, safety and wellness.

We provide our employees and their families with access to convenient health and wellness programs, including benefits that provide protection and security giving them peace of mind concerning events that may require time away from work or that impact their financial well-being;

and that offer choice where possible so they can customize their benefits to meet their needs and the needs of their families.

In response to the COVID-19 pandemic, we implemented and have continued significant changes that we determined were in the best interest of our employees, as well as the community in which we operate, and which comply with government regulations, including working in a remote environment where appropriate or required.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business