Intellicheck, Inc.

Previous wording

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.

Current wording

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 and six months ended June 30, 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.

Previous wording

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 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.

Current wording

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

Previous wording

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. 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.

Current wording

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 $453 or 10% to $5,080 for the three months ended June 30, 2025 compared to $4,627 for the same period of 2024.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

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.

Current wording

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.

Previous wording

We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes non-restructuring severance expenses, provisions for income taxes, interest and other (expense) income, impairments of long-lived assets and goodwill, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. 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

Current wording

We consider Adjusted EBITDA to be an important indicator of our operational strength and performance of our business and a useful measure of our historical operating trends. However, there are significant limitations to the use of Adjusted EBITDA since it excludes non-restructuring severance expenses, provisions for income taxes, interest and other (expense) income, impairments of long-lived assets and goodwill, stock-based compensation expense, all of which impact our profitability, as well as depreciation and amortization related to the use of long-term assets which benefit multiple periods. 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. Adjusted EBITDA as defined by us may not be comparable with similarly named measures provided by other companies.