Intellicheck, Inc.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Gar Jackson, Investor Relations. Thank you, sir. You may begin.

Thank you, operator. Good afternoon, and thank you for joining us today for the IntelliCheck first quarter 2025 earnings call. Before we get started, it will take a few minutes to read the forward-looking statement. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995 as amended. When used in this conference call, words such as will, believe, expect, anticipate, encourage, 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 within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty, and changes in circumstances, and the company undertakes no obligation to and expressly disclaims any obligation to update or alter its forward-looking statements, whether resulting from such changes, new information, subsequent events, or otherwise. Additional information concerning forward-looking statements is contained under the headings of safe harbor statement and risk factors listed from time to time in the company's filings with the Securities and Exchange Commission. Statements made on today's call are as of today, May 13, 2025. Management will use the financial term adjusted EBITDA and adjusted gross margin in today's call. Please refer to the company's press release issued this afternoon for further definition, reconciliation, and context for the use of these terms. We will begin today's call with Brian Lewis, Intellitech's Chief Executive Officer, and then Adam Stragovitz, the Chief Financial Officer, who will discuss the first quarter financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors. Today's call will be limited to one hour, and I will now turn the call over to Brian.

Thanks, Gar, and good afternoon, everyone, and thank you for joining us for our first quarter 2025 earnings call. Although it's been less than two months since we last spoke, a lot of things have happened over that span of time. Before I get started with the discussion about our recent achievements, I would like to put some things into perspective. We've heard from a number of people that said, yeah, I've looked at this company and there's nothing to see. I usually quickly respond by saying, you looked at the old IntelliCheck, right? Since I joined the company, we've grown our recurring revenue stream from under $2 million per year to almost $20 million last year. So quite a difference. In fact, already in Q1 of this year, including upsells and price increases, we renewed $10 million in annual contract values. demonstrating how sticky we are with our customers. On the technology front, we completely retooled our tech stack over the course of the past couple of years, taking advantage of AI and data science analysis because we see information on about 100 million people in North America every year. We are also making terrific progress on our platform migration program, We are well underway with migrating our clients from Azure platform to AWS, which will result in cloud savings. Just as important, it will allow for quicker and easier onboarding of new clients and gives us improved data feeds for additional analytics. As we move forward with the implementation of our strategic initiatives, we continue to diversify our client base. As you know, we used to be very tied to retail credit cards. Now we're growing very quickly in retail banking, title insurance, auto, email account security, and background checks, which I am very, very excited about. We're also making progress in the logistics and shipping market vertical. The amount of theft and fraud that happens there is shockingly large. I just want to preface our discussion of Q1 with that background because we believe our progress in achieving diverse market adoption lies in the fact that we're different and relevant. We leverage the proprietary barcode on a driver's license, the back of a license, versus all of our competition that templates the front of the license. Gartner, in their last report, said that we are unique in what we do, and we're the only ones with what they call privileged access to information to accurately identify a fake or fraudulent ID based on the proprietary nature of these barcodes. So that brings you up to speed about some of our growth opportunities that we believe people don't fully recognize. Before I continue talking about recent deals and achievements, This is the appropriate time to share some more exciting news, the appointment of Tim Kulin to the role of Senior Vice President of Sales. Tim brings extensive experience in sales leadership, staff development, and business development through his demonstrated ability to drive revenue and foster long-term client relationships. He has a solid track record of building high-performing teams that consistently exceed targets. Most recently, he contributed to Ping Identity's nearly tenfold growth from $85 million to over $800 million as Senior Director of Sales Strategic Accounts. Like the other new members of our senior leadership team, Tim has hit the ground running. Tim has already added three additional sales associates, bringing the total to 18 members under his leadership who are focused on new logos. Tim started his career as a sales engineer and quickly rose to become a top-performing sales professional, earning number one worldwide sales representative accolades at three different, primarily early-stage companies. Transitioning into leadership, he has hired, scaled, and coached execution-focused teams that have delivered significant results and forged deep client and team loyalty. Here's Tim's career highlights include being part of three successful ICOs, so he's familiar with rapid growth, and we are very excited to have him join the team. Now for some sales updates. A provider of a variety of revolving credit products originated through banks, as well as private labels, and their own brand new credit cards went live in Q1. This is an initial small release to work out any kinks in their system. They are now satisfied that all is working as planned and we anticipate that they will be rolling out the full release in the second quarter. The client that uses us for password resets on email accounts, which started using us in the U.S. and then moved to Europe, is now rolling us out to Canada. I remind you that they looked at us and our competitors. They were seeking proven, robust technology because they understood what can happen when a crook gains control of an email account linked to your banking, investment, and credit card accounts. They knew they knew the most accurate solution, which I believe is IntelliCheck. Also, one of the largest title companies we spoke about on our last call has gone live using our no integration portal delivery method. They are now using our technology in all three of their divisions and they will be doing a full integration into their systems with our direct API. In addition, they will be adding passports to the documents we authenticate for them. Title insurance continues to be a strong area of interest for us. We estimate that we are now working with the title insurance companies that handle approximately 40% of all the title insurance volumes in the country. This is another important area where we're quickly and effectively fast-tracked, and in this case on a very high dollar transaction. As we continue to build on our efforts to advance our market penetration in this vertical, I can share with you that we are working with another one of the top title insurance companies on finalizing an agreement. Currently, we have a proof of concept underway with them so that they can have a first-hand experience with our cutting-edge technology. We believe this will ultimately lead to adoption of our technology on a national scale. Now for an update on our AWS migration. In April, we migrated three large clients, including one of our top three, from address to AWS. All with great success. This quarter, we have scheduled 11 additional large clients, including another of our top three to move. By the end of the quarter, we expect all of our node integration portal clients will be moved over as well. The changes to marketing are also having an impact. Here are a couple of examples. Since we've made the changes to our marketing team in focus, LinkedIn followers are up 16%. YouTube video views, which have become an important part of selling, are up 141% versus Q4. Website visitors are up 34%, and more importantly, visitors are staying 10% longer versus Q4. I attribute this to better outreach, content and execution. On the IR Fund, we continue to remain active. In March, we presented and attended the iAccess virtual conference. There we had a full day of one-on-one meetings with potential investors. That was followed by the Planet Micropath conference late last month. I did an interview with the Planet Micropath podcast host and a featured presentation. Take a look at the investor relations page on the IntelliCheck website to access the link to the presentation and the investor deck. There we also had two full days of meetings with interested investors. These forums also provided us with the opportunity to network with other potential business prospects. What we saw at these conferences tells us investors' interest is certainly there and it is being strengthened by key data points. We are the market differentiator in digital and physical ID validations. Our product and process are different and more effective than our competitors. Our gross margins are around 90% and are very scalable. And the value proposition we offer speaks to the reality. Fraud isn't going away. It is escalating. These developments are outbursts of the implications of our strategic plan and its emphasis on a diversification strategy. Economic data underscores just how important our move away from a retail-first emphasis has proven. The latest WalletHub Economic Index, released less than a month ago, shows consumer confidence is down nearly 8% from the same time last year. This represents the fourth lowest point for consumer sentiment in the past five years. Consumers are putting off retail purchases in the face of economic disruption and uncertainty. As we move forward, we will continue to make adjustments to the implementation of our strategic initiatives where we believe they are needed as market changes and economic conditions evolve. I will now turn the call over to Adam for further discussion of our Q1 results.