Good morning, everyone. Welcome to day one of the Sidoti Microcap Conference. I am Aashi Shah, an analyst here at Sidoti. With me today, I have Intellicheck. It trades under the ticker IDN. I'm happy to welcome Bryan Lewis, CEO of the company, and Adam, CFO of the company. We have about 30 minutes today, including the Q&A. If you have any questions, please submit them at the Q&A section at the bottom of your screen. With that, Bryan, I'll let you take over. Cool. So, folks, my thing is I love Q&A. I think it's more fun than me doing any presenting. The investor deck that you're seeing, you can find on our website. Obviously, I have to say all the forward-looking statement stuff and blah, blah, blah, you know, to cover the legal aspects of the discussion we're having. To me, great lawyers, love them. Boring. Anyway, the thing I like about Intellicheck is that we, in my opinion, are the only SaaS-based identity company out there that has a unique and proprietary way of understanding what goes on in a barcode on a driver's license. I'd say that a lot of our competitors will talk about how the barcode doesn't matter. I agree, because if you don't know what you're doing in the barcode, like these, I have stacks and stacks of fake IDs that we get from our law enforcement customers. Every single one of these scans, every single one of these, we would say are fake because we know it. That's what makes us valuable to our customers. Now, if you think about the size of the problem, it's massive, right? $27 billion in identity fraud happened last year. 1.5 billion people have had their identities stolen and breached, and they're online, right? The thing that's really growing is account takeover. I go into your bank and I say, I'm you, and I close out your account. A lot of places, a lot of markets that we're going to are starting to see, you know, you need something to make sure that you understand. Are you dealing with the person that you think you are? What we do for our customers is we allow them to know immediately. When I say immediately, it takes us about 44 milliseconds to identify a license as good, good but expired, or fake, and send it right back so they can run their business in real time, knowing who they're dealing with. Right now, the barcode is truly important because there is a standard out there, and all these fakes follow the standard. It's published. AMBA publishes a standard, but no state, no province, no U.S. territory uses that standard. In fact, there are about 250 different valid forms of barcodes in circulation today. We know all of them, and it's part of what we do working with the DMVs and working with AMBA. Now we validate close to 100 million people in North America. That's really where we play. That is our market. If you think about it, that's about a third of the U.S. or I'm sorry, about half of the U.S. population, the adult population out there. Right. And it's big. We're in a lot of different markets. You will never see us. We are white-labeled. Nobody ever knows it's us. We're in auto, education, financial services, real estate. When somebody needs to open up a new account, when somebody needs to say, I don't know about you, I don't carry my credit cards with me, but I do like to have my points do my account lookup. Instant credit, buy now, pay later, all those types of things. Banking, we're in the bank branches, we're online, we're in the call centers. We're now getting more and more in terms of employee onboarding since most people are now working remote. How do you know who it is really that you're dealing with? Retail, card not present and return no receipt are big areas for us. Okay, what do we do? We're simple, we're easy, and we work with existing hardware at any of our customers. Most of our competitors need a photo of the front of the license. We don't. The same scanning gun that can read a barcode for merchandise can read the barcode on a driver's license, and we can prove it's real. Same thing if you go into a bank, the thing that reads a check can read the barcode. When it comes to remote, we turn your phone into a scanner, and we can make sure that we're getting the data that we need to make sure that it works. Before I started at the company, I went to a couple of our customers, and I wanted to see how it worked. I got credit faster than they could put merchandise in the bag. The retailers love us. They're always interested in how do I get more credit card customers. In my opinion, positioned for success, very sticky customer base. Other than bars and restaurants, we bring them on as fast as they go out of business because Brian's Bar and Grill might not make it, but we bring them on board. Of the customers that truly matter in terms of revenue, 100% renewal rate through Q2 2025. Most of them ended up also spending more money with us. We have 90% gross margins, all the time, regularly. I think current valuation, if I weren't blacked out, I'd be buying myself. I think we're in a good spot. We expect positive adjusted EBITDA through 2025. Our marketing has really been showing up. If you listen to the earnings call, our inbound leads are up 30%. Really good stuff going on there. Although you might not have heard of us, we've got really big customers, right? Four of the top ten banks, two of the leading credit card issuers in the country, and we're used by major law enforcement agencies all around the United States. I think that is very telling about how good we are, because they're the only ones who can call in on every DMV and see if a license is real. They think we are as accurate, but way faster. I take that as a note of a vote of confidence. In 2025, so far this year, a couple of call outs. What I really like is we had a bank that had been using us digitally only, has now used us and is putting us in all across their bank branches. This year, for the next 12 months starting in July, it'd be low seven figures. The TCV of the three-year deal they've signed with us is going to be very high, seven figures. We have about 43% of the title insurance market. We have lease to own that is growing and expanding their use with us. We've got a major credit card issuer that also has buy now, pay later that is including us into that whole buy now, pay later market. A lot of good things are happening with existing customers and a lot happening as we sign up new customers and move forward with that. Why do customers like us? I always go to what customers say to us. One of our largest banks has said that we are a true game changer in stopping fraud, top five of all time. This person is a major reference for us. He will get on the phone with any prospect we have to say why you need to use us. The New York State DMV tested us against a thousand fakes that they had, and we caught each and every one. I would say we were batting a thousand that day. Luck and skill all came together on that day. I think that says why people are beginning to look at us and know that we are valuable to the business that they have. Here's the team that runs the whole place. Tim Poulin we just brought in from, he came from Ping Identity, really knows what he is doing in terms of sales and is bringing us up. Sandra Bower has done amazing things for us in terms of customer interaction and growth with existing customers. Jonathan Robins, we got from surprisingly the Chicago Cubs, where they were doing a bunch of things with AI. That is what we are looking at, the amount of data that we have flowing through our system. How can we use that to make better products and new things to sell to our customers? Obviously Adam, Chief Financial Officer, my right-hand man, making sure we got everything running correctly. Just a few little highlights: revenue in Q2, $5.1 million; SaaS, just over $5 million. Balance sheet, $8.6 million in cash and short-term investments. Net income and loss, so net loss $251,000. We expect that to be changing as we go forward. EBITDA was positive at $75,000, and again, hopefully improving. With that, I'm going to say what questions might you all have? Thank you so much, Bryan, for the quick presentation. Can you tell us about the customer adoption trends in your key verticals, financial services, retail, law enforcement, and which end market is driving the strongest growth right now? Currently, driving the strongest growth is straight up retail banking. As we add more use cases within our existing customers, and then again expanding with that new regional bank that we're bringing on board, who's rolling us out to every single one of their teller workstations across there, I think they got about 2,700 bank branches. Where we're also growing very heavily is automotive through resellers, title insurance, again through either large title insurance companies or resellers in that space. The big banks always want to deal directly with us. I expect also going forward now that we've signed a deal with the first of what I think will be many of the companies that provide the bank branching software to smaller banks. I expect that also to be a growth area as well. Bank branching, retail branch, retail banking seems to be a really good spot for us right now. Right. Can you talk about the large regional bank, high single-digit millions over three years? How should we think about the operating income for incremental revenues? Right. They are rolling out, so it's going to be a 12-month rollout. What we worked with them was from starting from zero to month 12 when they're fully rolled out. We said, okay, fine, let's just, you know what you're going to pay us in total, let's straight line that. If you think about it, zero to full, 50% is sort of how I look at full year. The revenue that we expect to get in the first year will be half of what we expect to get in the next year, and then the year after that, we expect them to grow. We see, just given what their contractual commitments are, growth out of them. Right. Adam, do you have any other things you might want to add on, you know, margin or anything that the question might have asked? I think the only other thing when you're looking at our financials is that when customers are paying us up front for a yearly contract, as an example, we'll have quite a bit of cash and then for revenue. The cash is going to go down a bit as we are processing those transactions. I think there was another question in the Q&A about the margins. I think it's always going to be in the 90% that there's just that small amount that we're going to have to pay to process a transaction. We could process another many, many millions of transactions without really any additional cost on our end. It's skipping around a bit, but I think that's answering a related question that was on someone's mind there. Right. There was another large bank or credit card issuer referenced on the recent conference call. When did this start and what was the prior revenue amount versus the new mid-single-digit millions revenue annually? I think the one that we talked about was up 15%, in terms of what their spend has been because they are bringing on a lot of retailers. What they're doing is going to the retailers and saying, hey, if you implement this system, meaning us, you can get credit card applications done in less than a second. Good for you. It cuts our fraud. We can give you a better rate on your credit card program. They're bringing, you know, they're stealing business from their competitors doing that. It's been a long-term customer. They just continue to grow with us. I think, you know, that particular bank, I mean, honestly, we are in retail, automotive loans, call center. Everywhere we could be in the bank, we are in. They just continue to add retailers to their portfolio, which adds revenue to us. Right. What is driving the pricing power, and why is it, or isn't it, sustainable? Price per scan is more than 25%, and new business price per scan is more than 36%. I think the main thing driving it is people understanding that we are different and so highly accurate. We were talking to one of our resellers in the automotive space, and we looked at the transactions. They're like, oh yeah, well, these were, you know, we had an issue with these. We were running at a 99.996% accuracy rate with this customer, and they're pretty much indicative of all of our customers. I believe that the fact that we can prove that we are unique and different and do two things, get them more customers and stop fraud really quickly, is why people want us. If you think about it, every retailer, every bank wants more customers. If we can make it happen so that with a quick scan, either with your phone or with a scanning gun, all the information to populate the application is done, and we can tell you if it's real or not, and do that in less than a second, that's why people like us. New customers, no fraud. Right. With the increasing regulatory pressure around fraud prevention and KYC compliance, how is Intellicheck positioning to benefit from these trends? I think a couple of ways, right? One is, KYC is getting even bigger because it's becoming a very important part of remote hiring, which is why we're doing so much in industries like trucking, and background checks is a growth area for us. Having knowing who your customer is is really important. We can tell you, are you really dealing with Bryan or is it Bryan pretending to be Adam? I just see that the regulatory pressure in this area being nothing but good for us because people have to take it, I think, more seriously than maybe they had been in the past. Right. Do you believe there are any upcoming state or federal regulatory changes that will materially accelerate adoption for Intellicheck? I think there's certain things that are going on, and then it just depends on what the states are doing. I think an interesting area is all the pornographic websites. Certain states are now blocking it until you prove your age. Now, a lot of what I believe they're using doesn't really let you know if it's real or not. Right. I'm definitely talking to states now about you need to have a level of accuracy, and you decide what it is, but you should test it. I think the same thing goes for anything that's age-restricted. I think we're going to see some of it happening in voting, particularly mail-in voting. How do we make sure who's there? When I'm talking to people and the things that I do when I'm going out and talking to different states and what's happening is they're trying to figure out who is on the other side of what I would call a transaction. A transaction doesn't mean money is changing hands. A transaction could mean I'm resetting a password. I am voting. I'm trying to get onto a website, whatever that is. If you need to know with accuracy, then I think people will come to us. Right. Just a follow-up on that. Like many state governments, like you said, are mandating age verification on the internet for social media and games. How does that quantify as an opportunity for revenue for IDN? If people are serious and they want to know who it is, right? I go to our level of accuracy, right? I'll use that particular customer we had at 99.996% accurate. If you want to be sure and the states or the business or whoever it is wants to know with accuracy, they'll come to us. What we've certainly heard from all of our customers who we've taken away from competitors, if you are just trying to base it on, does everything on this front of this photo match the template, about 65% - 70% accurate. If you want to be real, come to us. If you don't care, they're going to go, I believe, with our competitors because they just don't want. Certainly what we see is that there are some times when people say, you're just going to cut my revenue because, oh, I can't sell alcohol to a minor. I can't let a minor onto this pornographic website. I can't not sell cannabis to this minor. If they care, they come to us because they know that we're going to stop it with a much higher degree of accuracy. Right. It seems like you're starting to generate cash. How will you use that cash to grow your business going forward? Do you need to raise any additional capital to accelerate growth? At this point in time, we don't see the need to raise any capital. We did file an S-3 just because good housekeeping, we used to have one, and it's there. No intentions of raising money. We think we're going to start generating cash. The way I look at it is sort of like 50% in the bank, 50% maybe sales and marketing, you know, that kind of thing. I think our marketing is really paying off. People are beginning to notice the company more than they did in the past. To me, marketing is important. I believe we have a really good marketing team, that, you know, we've hired a group out of Silicon Valley. All the people in that company have been involved in some of the high growth Silicon Valley companies that went from zero to a ton. They're using a lot of the same things that they use there with us, and that's paying off. I don't see it as really big expenditures, but we can run probably 10x the customers we have without really needing to expand our expenses or workforce more than maybe hiring a few more customer success people. I think our margins stay exactly where they are, and we just continue to grow and the money goes to the bottom line. Adam, I'll always throw it over to you to make sure that I said everything correctly when it comes to anything accounting. I don't think there were any accounting missteps there at all. I do think on the shelf side and raising capital, the business was EBITDA positive in the last quarter and will be nicely EBITDA positive, we expect, for 2025. It feels like we're able to fund our own growth and we're just replacing a previous shelf. I'm excited. It's exciting times at Intellicheck. Okay. Can we talk a little bit about your sales cycle and the success rate? When do you not win, and what's the reason for that? A couple of things. The sales cycle really depends on the type of customer. We just had, we signed a new stadium, start to finish, 21 days. When dealing with the bank, it can be a very long time because the business people say yes, then they throw you over to the procurement people who want to then negotiate yes down. Then you have to go through cybersecurity, and then you have to go through implementation. It can vary dramatically based on the sector and who we are selling to. That's why the sales team is also looking at, you know, they all have different, you know, every one of them has big banks, this, that, buy now, pay later, fintechs, all of that, so that they can hit their singles, doubles, and home runs. A giant bank is a home run, but that can take two to three years. That's why we've been talking to them for quite a while, only because of their internal processes. We've had customers get us integrated in two weeks. Our APIs are really, really simple. The sales cycle often depends on the internal processes of our customer. Right. What kind of visibility do you have into your recurring revenue, like from existing customers? How does the churn look like today? Our customers generally are now, we're moving them to a model where they do a revenue commitment per year. They know, right? They know how many transactions that they're doing. We give them, we say, okay, all right, you're going to do, you think you're going to do this many facial recognition, this many OCR, this many just barcode, and then the rest of the things that we can do that are part of the whole transaction, like matching addresses and all that kind of stuff. We just say, here you go, right? This is what you think you're going to do each of those. You're going to commit to us the dollar amount. If your usage changes, you're doing more facial than you thought, whatever, it decrements against that dollar commitment that they've made to us. It's a dollar commitment and then a per transaction price based on what they're doing. Again, like, is it just the barcode? That's one price. OCR, added price. Facial recognition, added price. They do that and we pull it, we pull it against it. It's giving us really good insight into what they're going to spend because they've made the commitment. A couple of things I like about it, if you listen to some of our earnings calls, we're given, we don't give guidance on revenue, but we're telling people what we think each contract is now worth, and you can build that into it. Does that answer the question? Yes, just to follow up, how are you getting paid? Is it by transaction, by license, or anything else? By transaction. We do things sort of where it makes sense in different markets, but by and large, our largest customers are all based on transaction and transaction by, again, what they need to use. Like, if it is in person, most of the time, all they care about is scanning the barcode. If it is, you know, I'm doing something digitally, it might go all the way to facial recognition, depending on how much friction they want to put into the process for their customer. Makes sense. What is your customer concentration right now? I'd say that our top 100 customers probably represent 88% of our revenue. Our top, and Adam, I know you might know this off the top of your head, our top four probably represent an even higher number of that. I also always say that even though they represent a large concentration, their portfolio is diversified, right? Because they have a ton of, say, maybe retailers under them. It's, you know, they're large, but diversified within even their own client portfolio. Yeah, we do disclose in the 10-Q both the concentration in terms of revenue, as well as concentration by accounts receivable. The top few customers were about 40% of the total of accounts receivable. Other approximate numbers, as Bryan said, I absolutely agree with. If people want to dig into that, you know, we'll save them reading a few dozen pages. It is disclosed in two places in the filings, in accounts receivable and in the concentration. Great. Thank you so much. It is certainly an exciting time for the company. With that, we are at time. I'd like to thank you very much for sharing the story with us. I'd also like to thank everybody in the audience for being here and listening and spending time with us today. Thank you all. I appreciate it. Thank you. Thanks a lot.