EX-99.1 2 v144073_ex99-1.htm Unassociated Document
Exhibit 99.1





FOR IMMEDIATE RELEASE

Contact:
   
Intellicheck Mobilisa, Inc.
The Investor Relations Group
Kenna Pope, 360-344-3233, ext. 119
James Carbonara, 212-825-3210
kenna.pope@icmobil.com
  
  Media Relations:
  Laura Colontrelle, 212-825-3210
 
INTELLICHECK MOBILISA ANNOUNCES FOURTH QUARTER FINANCIAL RESULTS

- Conference Call Scheduled for Today at 1:00 p.m. ET -

Port Townsend, WA – March 26, 2009: Intellicheck Mobilisa (NYSE Amex: IDN) announced today its financial results for the fourth quarter and year ending December 31, 2008.

For the year ended December 31, 2008, Company revenues increased approximately 183% to $9,954,686 from $3,511,908 reported in the prior year. Revenues from the Company's historical business increased 12% to $3,950,627 and Mobilisa contributed $6,004,059.  It also stated that it completed its annual impairment testing of goodwill and other intangible assets in accordance with Statement of Financial Accounting Standards (SFAS) 142 "Goodwill and Other Intangible Assets."  As a result of a decrease in the market price of the Company's common stock, reflecting the overall market conditions of recent months, the Company recorded a non-cash impairment adjustment to goodwill of approximately $32.2 million as of December 31, 2008.

The Company had positive cash flow from operating activities for the year of over $800,000.  After the goodwill impairment charge, the net loss for the year was $33,061,704, or $(1.47) per share in 2008.  Basic and diluted weighted average shares outstanding used in computing the per share amount was 22,453,635for the year ended December 31, 2008.  The Company’s backlog, which consists of non-cancelable sales orders of products not yet shipped or services to be performed, was $10.0 million compared to $1.9 million in the prior year period.

Revenues for the fourth quarter were $2,552,560 compared to $1,230,375 reported for the same period in 2007.  Revenues from the Company's historical business decreased 44% to $710,783 and Mobilisa contributed $1,841,777. The Company had positive cash flow from operating activities of approximately $130,000 in the fourth quarter.  After the goodwill impairment charge, the net loss was $32,549,951, or $(1.29) per share.  Basic and diluted weighted average shares outstanding used in computing the per share amount was 25,196,685 in the quarter ended December 31, 2008.

“Our Company is growing, and generated positive cash flows three quarters in a row. We did record a ‘write down’ adjustment in Q4 of goodwill due to recent stock market conditions, as many other companies, such as Google and L1 did,” said Dr Nelson Ludlow, CEO.  “I am even more optimistic with our new products, added sales staff, and new patents awarded and pending.  We are much healthier and stronger company than we were just one year ago at the time of the merger.”

 
 
 
IDN will host a conference call for members of the investment community today at 1:00 p.m. Eastern / 10am Pacific Time.  Interested parties dial (877) 407-8037 approximately 10 minutes before the scheduled beginning.  For callers outside the U.S., please dial (201) 689-8037.  For those unable to participate in the live conference, a recording will be available for 48 hours after the call.  The rebroadcast can be accessed by dialing 877-660-6853 and 201-612-7415 for international callers.  The account access code is 327 and replay ID is 312805. After the 48 hour window, please visit our website for the rebroadcast at http://www.icmobil.com/About/presentations.aspx.


INTELLICHECK MOBILISA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS*



   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2008
    
2007
    
2008
    
2007
  
   
Unaudited
              
                         
REVENUES
   $ 2,552,560     $ 1,230,375     $ 9,954,686     $ 3,511,908  
COST OF REVENUES
     (708,695 )     (514,894 )     (2,687,752 )     (1,390,941 )
Gross profit
     1,843,865       715,481       7,266,934       2,120,967  
                                 
OPERATING EXPENSES
                                
Selling
     402,443       373,957       1,574,355       1,534,660  
General and administrative
     1,188,102       495,340       4,300,953       2,333,154  
Research and development
     638,743       256,946       2,330,130       1,088,004  
Goodwill impairment charge
     32,171,659       -       32,171,659       -  
Total operating expenses
     34,400,947       1,126,243       40,377,097       4,955,818  
                                 
Loss from operations
     (32,557,082 )     (410,762 )     (33,110,163 )     (2,834,851 )
                                 
OTHER INCOME (EXPENSE)
                                
Interest income
     9,062       25,987       60,589       161,633  
Other expense
     (1,931 )     -       (12,130 )     -  
      7,131       25,987       48,459       161,633  
                                 
Net loss
   $ (32,549,951 )   $ (384,775 )   $ (33,061,704 )   $ (2,673,218 )
                                 
PER SHARE INFORMATION:
                                
Net loss per common share -
                                
Basic and diluted
   $ (1.29 )   $ (0.03 )   $ (1.47 )   $ (0.22 )
                                 
Weighted average common shares used
                                
in computing per share amounts -
                                
Basic and diluted
     25,196,685       12,281,728       22,453,635       12,262,958  
                                 
 
* Due to the weighted average common share computations, quarterly net loss per share may not add up to the total loss per share for the year.
 
 
 
 
 
CONDENSED CONSOLIDATED BALANCE SHEETS*

ASSETS
  
             
   
December 31,
    
December 31,
  
   
2008
    
2007
  
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 3,400,948     $ 392,983  
Marketable securities and short-term investments
     -       1,650,000  
Accounts receivable, net of allowance of $22,038 and $10,000
                
as of December 31, 2008 and December 31, 2007
     1,392,285       1,076,732  
Inventory
     39,350       62,784  
Other current assets
     230,901       543,571  
Total current assets
     5,063,484       3,726,070  
PROPERTY AND EQUIPMENT, net
     464,790       81,464  
GOODWILL
     11,736,660       -  
INTANGIBLE ASSETS
     6,877,752       23,961  
DEFERRED ACQUISITION COSTS
     -       208,000  
OTHER ASSETS
     51,395       34,916  
Total assets
   $ 24,194,081     $ 4,074,411  
                 
   
LIABILITIES AND STOCKHOLDERS’ EQUITY
  
                 
                 
CURRENT LIABILITIES:
                
Accounts payable
   $ 144,062     $ 150,099  
Accrued expenses
     616,999       533,609  
Deferred revenue
     1,900,528       1,278,869  
Income taxes payable
     168,732       -  
Total current liabilities
     2,830,321       1,962,577  
OTHER LIABILITIES
     724,234       91,681  
Total liabilities
     3,554,555       2,054,258  
STOCKHOLDERS’ EQUITY:
     20,639,526       2,020,153  
Total liabilities and stockholders’ equity
   $ 24,194,081     $ 4,074,411  

*The acquisition of Mobilisa was completed on March 14, 2008, and therefore the results of operations are included in the financial statements for the period March 15, 2008 through December 31, 2008.
 
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited)

         
Additional
        
   
Common Stock
    
Paid-in
    
Accumulated
        
   
Shares
    
Amount
    
Capital
    
Deficit
    
Total
  
                               
BALANCE, January 1, 2008
     12,281,728     $ 12,282     $ 46,668,941     $ (44,661,070 )   $ 2,020,153  
Stock-based compensation expense
     -       -       322,272       -       322,272  
Issuance of common stock for the acquisition of Mobilisa, Inc.
     12,281,650       12,282       50,951,604       -       50,963,886  
Issuance of common stock as directors compensation
     97,971       98       73,906       -       74,004  
Exercise of stock options
     673,826       622       287,087       -       287,709  
Net loss
     -       -       -       (33,061,704 )     (33,061,704 )
BALANCE, December 31, 2008
     25,335,175     $ 25,335     $ 98,336,965     $ (77,722,774 )   $ 20,639,526  


 
 
 
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Intellicheck Mobilisa is a leading technology company, developing and marketing wireless technology and identity systems for various applications including: mobile and handheld wireless devices for the government, military and commercial markets.  Products include the Defense ID system, an advanced ID card access control product currently protecting over 50 military and federal locations. ID-Check is a technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 U.S. and Canadian jurisdictions to determine if the content and format are valid.

Safe Harbor Statement
Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. When used in this press  release, words such as "will," "believe," "expect," "anticipate," "encouraged" and similar expressions, as they relate to the company or its management, as well as assumptions made by and information currently available to the company's management identify forward-looking statements. Actual results may differ materially from the information presented here. Additional information concerning forward looking statements is contained under the heading of risk factors listed from time to time in the company's filings with the SEC. We do not assume any obligation to update the forward-looking information.

Contact:
Intellicheck Mobilisa, Inc.
Kenna Pope, 360-344-3233 ext. 119
kenna.pope@icmobil.com
or
The Investor Relations Group
James Carbonara, 212-825-3210
or
Media Relations:
Laura Colontrelle, 212-825-3210