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Item 2. Management’s Discussion and Analysis

2025-08-12 compared with 2025-05-13 · 38 added, 23 removed, 110 unchanged (36% of the section changed)

6 unchanged sentences

References made in this Quarterly Report on Form 10-Q to “we,” “our,” “us,” “Intellicheck,” or the “Company,” refer to Intellicheck, Inc.

The following discussion and analysis of our financial condition and results of operations constitutes management’s review of the factors that affected our financial and operating performance for the three months ended March 31, 2025.

This discussion should be read in conjunction with the financial statements and notes thereto contained elsewhere in this report and in our Annual Report on Form 10-K for the year ended December 31, 2024.

34 unchanged sentences

Our long-lived assets include property and equipment, goodwill, and intangible assets.

As of March 31, 2025, the balances of property and equipment, goodwill and intangible assets, all net of accumulated depreciation and amortization, were $497, $8,102 and $2,434, respectively.

As of June 30, 2025, the balances of property and equipment, goodwill and intangible assets, all net of accumulated depreciation and amortization, were $463, $8,102 and $2,357, respectively.

As of December 31, 2024, the balances of property and equipment, goodwill and intangible assets, all net of accumulated depreciation and amortization, were $536, $8,102 and 2,374, respectively.

Reference Note 2, “Significant Accounting Policies”;

Note 4, “Property and Equipment”;

and Note 5, “Goodwill and Intangible Assets” in the Notes to Financial Statements for details on the Company’s valuations of our long-lived assets.

Note 4, “Property and Equipment, Net”;

and Note 5, “Goodwill and Intangible Assets” in the Notes to Financial Statements of the December 31, 2024 audited financial statements for details on the Company’s valuations of our long-lived assets.

Internal Use Capitalized Software

11 unchanged sentences

(All dollar amounts are rounded to thousands, except share and per share data)

COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2025

TO THE THREE MONTHS ENDED MARCH 31, 2024

Revenues for the three months ended March 31, 2025 increased $214, or 5%, to approximately $4,894 compared to $4,680 for the same period of 2024.

COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 2025

TO THE THREE MONTHS ENDED JUNE 30, 2024

Revenues for the three months ended June 30, 2025 increased $451, or 10%, to approximately $5,123 compared to $4,672 for the same period of 2024.

The increase in revenues is primarily the result of higher SaaS revenue for the current period.

SaaS revenue, which consists of software licensed on a subscription basis, increased $259 or 6% to $4,867 for the three months ended March 31, 2025 compared to $4,609 for the same period of 2024.

Gross profit increased $147, or 3%, to $4,391 for three months ended March 31, 2025 from $4,245 for the same period of 2024.

Our gross profit, as a percentage of revenues, was 90% and 91% for the three months ended March 31, 2025 and 2024, respectively.

Operating expenses, which consist of selling, general and administrative and research and development expenses, decreased $28, or 0.6%, to $4,740 for the three months ended March 31, 2025 compared to $4,768 for the same period of 2024.

As a result of the factors noted above, the Company had a net loss of $(318) for the three months ended March 31, 2025 as compared to a net loss of $(442) for the three months ended March 31, 2024.

SaaS revenue, which consists of software licensed on a subscription basis, increased $453 or 10% to $5,080 for the three months ended June 30, 2025 compared to $4,627 for the same period of 2024.

Gross profit increased $372, or 9%, to $4,600 for three months ended June 30, 2025 from $4,228 for the same period of 2024.

Our gross profit, as a percentage of revenues, was 90% and 91% for the three months ended June 30, 2025 and 2024, respectively.

Operating expenses, which consist of selling, general and administrative and research and development expenses, increased $455, or 10%, to $4,898 for the three months ended June 30, 2025 compared to $4,443 for the same period of 2024.

The increase in operating expenses is primarily the result of less capitalization of research and development costs related to software development.

As a result of the factors noted above, the Company had a net loss of $(251) for the three months ended June 30, 2025 as compared to a net loss of $(127) for the three months ended June 30, 2024.

COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 2025

TO THE SIX MONTHS ENDED JUNE 30, 2024

Revenues for the six months ended June 30, 2025 increased $665, or 7%, to approximately $10,017 compared to $9,352 for the same period of 2024.

The increase in revenues is primarily the result of higher transaction volumes for SaaS for the current period.

SaaS revenue, which consists of software licensed as a service on a subscription basis, increased $712 or 8% to $9,948 for the six months ended June 30, 2025 compared to $9,236 for the same period of 2024.

Gross profit increased $519, or 6%, to $8,992 for six months ended June 30, 2025 from $8,473 for the same period of 2024.

Our gross profit, as a percentage of revenues, was 90% and 91% for the six months ended June 30, 2025 and 2024, respectively.

Operating expenses, which consist of selling, general and administrative and research and development expenses, increased $427, or 5%, to $9,638 for the six months ended June 30, 2025 compared to $9,197 for the same period of 2024.

The increase in operating expenses is primarily the result of less capitalization of research and development costs related to software development.

As a result of the factors noted above, the Company had a net loss of $(569) for the six months ended June 30, 2025 as compared to a net loss of $(569) for the six months ended June 30, 2024.

Liquidity and Capital Resources

As of March 31, 2025, we had cash and cash equivalents of $5,148, working capital (defined as current assets minus current liabilities) of $6,574, total assets of $24,561 and stockholders’ equity of $17,608.

During the three months ended March 31, 2025, we generated cash of $750 in operating activities as compared to net cash of $869 generated by operating activities in the three months ended March 31, 2024.

Cash used in investing activities was $(173) for the three months ended March 31, 2025 compared to cash provided by investing activities of $4,390 for the three months ended March 31, 2024.

Cash used in financing activities was $(95) for the three months ended March 31, 2025 compared to net cash of $0 used in financing activities for the three months ended March 31, 2024.

As of June 30, 2025, we had cash and cash equivalents of $8,573, working capital (defined as current assets minus current liabilities) of $7,082, total assets of $23,065 and stockholders’ equity of $18,005.

During the six months ended June 30, 2025, we generated cash of $3,884 in operating activities as compared to net cash of $(312) used in operating activities in the six months ended June 30, 2024.

Cash used in investing activities was $(232) for the six months ended June 30, 2025 compared to cash provided by investing activities of $3,592 for the six months ended June 30, 2024.

Cash provided by financing activities was $255 for the six months ended June 30, 2025 compared to net cash of $0 used in financing activities for the six months ended June 30, 2024.

We currently anticipate that our available cash, expected cash from operations and availability under the revolving line of credit, will be sufficient to meet our anticipated working capital and capital expenditure requirements for at least the next 12 months from the date of filing.

19 unchanged sentences

The reconciliation of GAAP gross profit to Non-GAAP Adjusted Gross Profit is as follows:

Three Months Ended March 31

Revenue $ 4,894 $ 4,680

Cost of revenue, exclusive of amortization $ 399 $ 411

Three Months Ended June 30 Six Months Ended June 30

2025 2024 2025 2024

$ 5,123 $ 4,672 $ 10,017 $ 9,352

Cost of revenues, exclusive of amortization

$ 401 $ 421 $ 800 $ 832

Amortization allocable to cost of revenues 122 23 225 47

Gross Profit 4,392 4,245

4,600 4,228 8,992 8,473

Amortization allocable to cost of revenues 122 23 225 47

Adjusted gross profit

4,722 4,251 9,217 8,520

Gross profit as a percentage of revenues 89.8 % 90.5 % 89.8 % 90.6 %

Adjusted gross profit as a percentage of revenues

92.2 % 91.0 % 92.0 % 91.1 %

Adjusted EBITDA

8 unchanged sentences

We believe that these limitations are compensated by providing Adjusted EBITDA only with GAAP net loss and clearly identifying the difference between the two measures.

Consequently, Adjusted EBITDA should not be considered in

isolation or as a substitute for net loss presented in accordance with GAAP.

Consequently, Adjusted EBITDA should not be considered in isolation or as a substitute for net loss presented in accordance with GAAP.

Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other companies.

The reconciliation of GAAP net loss to Non-GAAP Adjusted EBITDA is as follows:

Three Months Ended March 31

Three Months Ended June 30 Six Months Ended June 30

2025 2024 2025 2024

Net loss $ (251) $ (127) $ (569) $ (569)

11 unchanged sentences

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-Q

Item 2. Management’s Discussion and Analysis