What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-03-24 compared with 2021-03-29 · 360 added, 401 removed, 128 unchanged (86% of the section changed)

1 unchanged sentence

In August 1999, we reincorporated in Delaware.

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

after the consummation of the merger with Mobilisa,

(“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,

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, Inc.

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 ID Check®, a solution for preventing identity fraud across any industry delivered via smart devices, the

internet, or integrated into a customer’s system.

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.

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,

(“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.

and government sales of defense security and identity card applications.

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

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;

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

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

1 unchanged sentence

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.

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.

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.”

Our ID Check®

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

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.

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

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, such as:

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

gaining entrance to high profile buildings and

sensitive infrastructures

entrance to high profile buildings and sensitive infrastructures

boarding airplanes

engaging in medical fraud

in medical fraud

credit card, debit card and check cashing fraud

purchasing age restricted products such as alcohol

and tobacco while underage, and

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

purchasing firearms

obtaining welfare or other government benefits.

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

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.

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

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, Financial and Government identification sectors.

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

Identification

Family —

Solutions and Benefits

ID Check®

technology is our advanced document verification software.

ID Check®

is contained in our software products and

is capable of reading and verifying in one swipe or scan 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’’).

believe that ID Check®

and our family of software solutions contain the most advanced, reliable, and effective technology,

providing users with an easy, reliable, and cost-effective method of document and age verification.

We have received/acquired

encoding formats from multiple sources.

This information, combined with our proprietary technology, enables all our ID Check®

software products to read, decode, process, and verify the encoded formats on driver licenses.

As jurisdictions change their documents

and guidelines, we believe our software can be adapted to these changes.

ID Check®

technology is embedded in many of our product lines for the retail, banking, government, age restricted products,

hospitality or any other use case where knowing a person’s identity is important.

software does not require a connection to a central database to operate, thus negating privacy concerns.

products can operate add-on peripherals such as printers, fingerprint readers and other devices.

ID Check®

process is quick, simple, and easy to use.

After matching the driver license photograph to the person presenting

the document for identification, the user simply scans or swipes the driver license through a data capture device.

For additional

authentication in an online transaction, the Company also has a biometric facial recognition solution, through partnerships, for

person not present transactions.

The user simply scans the front of the license and takes a selfie then the software compares

the images to verify the person.

The software quickly determines if:

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;

1 unchanged sentence

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;

using biometric facial matching if there is a match and if liveliness was detected

the ID Check®

software applications can:

to the user by displaying the format verification result and the parsed information;

information that is permissible by law to memory;

a record of the transaction including the verification results if a printer is part of the hardware configuration.

software product, ID Check®

SDK, is designed for software developers that wish to incorporate our proprietary ID Check®

technology into their applications.

We currently have multiple license agreements with third parties for integration and sub-licensing

of our software applications into their core applications.

The SDK is available for multiple platforms such as Microsoft Windows,

iOS and Android.

Users receive a text message with instructions to scan their driver license.

AIX and certain versions of Linux

is also offered as a SaaS product that provides a platform independent and centralized update solution for quicker and easier

It can easily be ported to other platforms as the need arises.

New integrations are being sold as hosted cloud-based

SaaS products and the customer purchases monthly, quarterly, annually, or longer subscriptions for use of the software.

ID Check application is a proven identity authentication solution that can instantly and accurately authenticate identification

documents such as a driver license and is available in several deployment strategies.

This solution is designed to deliver better

service, increase loyalty and credit card programs and reduce fraud.

ID Check reduces liability risks and ensures compliance by

checking all retrieved data against each state’s privacy laws and regulatory requirements.

online offering instantly and accurately authenticates an on-line user’s identification documents such as a driver license

and helps eliminate fraud associated with online transactions.

Users receive a text message with instructions to scan their driver

With online fraud growing daily, we believe that this new product is the right solution at the right time.

- Mobile ®

product provides the fraud reduction benefits of an integrated identity validation system, without the time and expense of integrating

the application into the customer’s point of sale system.

The customer simply downloads the application to a mobile device

such as a tablet or smartphone and instantly begin receiving the benefits from our fraud reduction capabilities.

software application speeds up check-in and ID verification within the property management systems in places like hotels, motels,

commercial buildings and prisons.

PC is a standalone software solution that is designed to provide the features of ID Check®

for Windows based platforms.

It allows the user to instantly view data from government issued IDs such as driver licenses and contains features such as recurring

entry and age verification.

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+

○ 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

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

Facial biometrics may add additional seconds to the process.

Fast deployment

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

Accurate ID validation

For North American documents, Intellicheck provides market-leading identity validation accuracy.

Accuracy that can remove the need for manual review, and accuracy that leading businesses use to enable real time processes.

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.

Software incorporates each state’s requirements around electronic capture of ID barcode data directly into hosted ID Check

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.

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.

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 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.

ID Check®

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

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.

Key elements of our strategy are as follows:

These solutions include

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

of our strategy are as follows:

We market our technology as a key productivity enhancement tool.

Our proprietary ID Check®

software can add

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

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.

3 unchanged sentences

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

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;

Zebra Technologies hardware manufacturers;

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

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.

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 .

1 unchanged sentence

by continuing to market and support our systems and software.

Our sales and marketing departments are organized by geographic

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

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

1 unchanged sentence

into Additional Licensing Agreements .

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

We are currently licensing our ID Check®

SDK software product for Windows, iOS, Android and other operating system platforms

and intend to similarly continue to license our ID Check®

PC software solutions.

Our software is intended to be used with

a compatible hardware device.

We have entered into multiple licensing agreements to date.

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.

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

We have entered into multiple

licensing agreements to date.

Intellectual Property .

2 unchanged sentences

Revenue Sources

derive our revenue from the following sources:

derive our revenue primarily from the following sources:

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

transaction or subscription fees (SaaS) from the licensed use of our technology;

sharing and marketing arrangements through strategic alliances and partnerships;

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

1 unchanged sentence

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 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 would most benefit from

our systems and software.

also market our products to opportunities where our ID Check®

technology can be used to enhance productivity.

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.

5 unchanged sentences

for enrollment of guests

Credit unions

patient admissions

17 unchanged sentences

Enforcement/Government

Enforcement Administration

& Local Police

of Alcohol, Tobacco, Firearms, and Explosives

of Transportation

of Homeland Security

Drug Enforcement Administration

State & Local Police

Local Sheriffs

Bureau of Alcohol, Tobacco, Firearms, and Explosives

Intelligence Agencies

Department of Transportation

Department of Homeland Security

Border Patrol

AND DISTRIBUTION

3 unchanged sentences

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 software.

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

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

ID Check®

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 ID Check®

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

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

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:

2 unchanged sentences

Trade publications;

Various conventions

and industry specific seminars.

Various conventions and industry specific seminars.

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

2 unchanged sentences

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

our top ten customers accounted for approximately 66% 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

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.

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.

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.

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 ID Check®

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.

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.

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 ID Check®

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

In addition, we develop new software solutions and make improvements to existing software platforms, which are funded

R&D spending during the years ended December 31, 2020 and 2019 was $3,674,987 and $3,656,679, respectively.

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.

patents and one (1) Canadian patent.

At present, we have four patent applications pending in

At present, we have two 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.

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.

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

software technology.

In October 2002,

we were granted another patent relating to our document authentication and age verification technology.

In January 2009, we were

granted another patent that is 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 technology.

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.

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

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.

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.

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 terrorism.

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 information.

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 same entity.

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.

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 graphic.

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.

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 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.

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 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.

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

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.

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.

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

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.

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

1 unchanged sentence

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.

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.

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 ID Check®

and other software

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 26, 2021, we had thirty-seven full-time employees.

Five are engaged in executive management such

as our Chief Executive Officer and Chief Financial Officer, nineteen in information technology including those participating in

our research and development efforts, seven in sales and marketing, three in integration and customer support and three 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 and cash incentive plans are to attract, retain and reward personnel,

whether existing employees or new hires, through the granting of stock-based 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 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 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.

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.

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