What changed in this filing

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Item 1. Business

2025-03-31 compared with 2024-04-01 · 37 added, 50 removed, 276 unchanged (24% of the section changed)

36 unchanged sentences

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.

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

Non-driver identification card

22 unchanged sentences

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.

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 bar code on the driver license and comparing it against known standards.

OUR PRODUCTS AND SERVICES

3 unchanged sentences

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.

Intellicheck ® Identity Service

The Intellicheck Service 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.

The Intellicheck Service 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

3 unchanged sentences

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:

Our Intellicheck Service can quickly determine if:

• the format of the document is valid;

8 unchanged sentences

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.

The Intellicheck Service 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.

How the Service is delivered

The Intellicheck Service consists of the following elements:

• IDN-Mobile 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+

• IDN-Portal+ has all the features of IDN-Portal and additionally includes the ability to perform a facial biometrics test to match the picture on the ID to a selfie of the user presenting the ID.

IDN-Mobile 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 has all the features of IDN-Mobile and additionally includes 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 also adds 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 user's own apps and integrated with their systems.

• IDN-Direct provides the capabilities of the Intellicheck service within user's own apps and integrated with their systems.

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

1 unchanged sentence

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

• IDN-Capture

• IDN-Capture provides the capabilities of the Intellicheck service within a flexible custom white label experience.

Advantages of the Service

• Fast results

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

• The Intellicheck Service 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 typically be up and running in under an hour.

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

• Accurate ID validation

2 unchanged sentences

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

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

11 unchanged sentences

Upgrade Capability

Our Intellicheck Platform products and related databases are constantly updated to stay current with identification formats, new forms of ID and government regulations guiding use of digital information.

Our Intellicheck Service products and related databases are constantly updated to stay current with identification formats, new forms of ID and government regulations guiding use of digital information.

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

4 unchanged sentences

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 Service 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 in all U.S.

1 unchanged sentence

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;

hardware manufacturers Zebra Technologies;

Idemia Identity & Security USA;

and facial biometrics companies Ipsidy and Applied Recognition.

Develop Additional Strategic Alliances with Solutions Providers .

Some of these companies have included Accio Data, Doma Title Insurance, and Dealer SafeGuard Solutions.

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

13 unchanged sentences

We derive our revenue primarily from the following sources:

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

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

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

64 unchanged sentences

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 through license agreements.

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

2 unchanged sentences

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 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.

8 unchanged sentences

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 2023, our top ten customers accounted for approximately 71% of total revenues.

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

In 2024 and 2023, our top ten customers accounted for approximately 71% 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.

The sale and use of our Identity Service 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.

4 unchanged sentences

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.

We have tested and compared some of these products to the Intellicheck Service 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.

4 unchanged sentences

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.

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

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

5 unchanged sentences

INTELLECTUAL PROPERTY

We currently hold ten (10) U.S.

We currently hold thirteen (13) U.S.

patents and one (1) Canadian patent.

20 unchanged sentences

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.

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

We were granted two patents in 2019 that were continuations 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 2022, we were granted two patents that were a continuation of earlier filed applications.

In 2022, we were granted two patents that were continuations 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.

4 unchanged sentences

EMPLOYEES AND HUMAN CAPITAL RESOURCES

As of April 1, 2024, we had 51 full-time employees.

As of March 31, 2025, we had 47 full-time employees.

Three are engaged in executive management — our Chief Executive Officer, Chief Financial Officer and Chief Technology Officer.

We have twenty-five employees in information technology including those participating in our research and development efforts, eleven employees in sales and marketing, five employees in customer and support integration, and seven employees in administration.

We have twenty-two employees in information technology including those participating in our research and development efforts, nine employees in sales and marketing, seven employees in customer and support integration, and nine employees 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.

12 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-K

Item 1. Business