Intellicheck, Inc. (NASDAQ: IDN)

Intellicheck, Inc. is a technology company that delivers on-demand digital identity validation solutions for Know Your Customer fraud and age verification needs across North America. The company validates both digital and physical identities for financial services, fintech companies, BNPL providers, e-commerce, retail commerce businesses, law enforcement, and government agencies. Its software solutions can be used through a mobile device, a browser, or a retail point-of-sale scanner.

Intellicheck generates revenue primarily from sales of its products and services by its direct sales force and marketing partners, per transaction or fixed price SaaS revenue from licensed use of its technology, extended warranties on equipment, and other subscription and support services such as jurisdictional updates and technical support. The company's primary offerings include Identity Systems products, which encompass commercial applications of identity card reading authentication. These technologies address commercial fraud, instant credit card approval, age-restricted product access, unauthorized access prevention, fraudulent retail purchase returns, and inefficiencies associated with manual data entry.

The company operates through the following segments:

• Identity Systems Products: This segment includes the Intellicheck Service, 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 online and in retail settings using devices that can include a mobile phone or tablet, a PC or retail scanner. The Intellicheck Service is designed to address the needs of users across a variety of use cases including account access, account openings, receiptless returns, receipt of delivery, age-restricted purchases and more.

• Data Collection Devices: This segment involves software products designed for use with multiple data collection devices, which are commercially available in various compact forms and may contain either one or both of 2-D bar code and magnetic stripe readers. These devices enable the software applications to be used on a variety of commercially available data processing devices, including credit card terminals, PDAs, tablets, laptops, desktops, mobile phones, and point-of-sale terminals. Many of these devices contain an electronic serial number to prevent unauthorized use of the Intellicheck Service technology.

• Instant Credit Application Kiosk Software Applications: This segment consists of custom software applications developed for major financial service companies and retail stores. The software installed on multiple kiosk devices provides customers with the ability to perform in-store instant credit approval. The process involves the swiping or scanning of the driver's license to verify the encoded format and after verification, the information parsed from the encoded data is populated into the proper fields on the application displayed at the kiosk. The applicant then completes the application by entering the remaining required information that is not encoded on the driver's license, such as social security number and telephone numbers. The software application then sends the data to the financial service company’s backend decisioning tool for credit approval.

Intellicheck holds a strong position in the identity verification industry, competing in an intensely competitive and rapidly changing market. The company believes its product is superior in quality and functionality compared to competitors offering electronic reading and age calculation from driver's licenses, particularly due to its ability to read bar codes, which all states and Canadian provinces use to encode driver's licenses, as well as all U. S. military IDs and uniformed services cards. Its competitive advantages include proprietary technology for analyzing encoded data on identification documents, integration with third-party facial biometrics for ID-to-selfie matching, and machine learning-based risk scoring using device fingerprinting, IP address, phone number, time zone, and geographic location.

Intellicheck serves a diverse customer base across multiple sectors, including mass merchandisers and retailers, auto dealerships and rental car agencies, banks and other financial institutions, casinos, credit unions, hospitals and medical facilities, credit card issuers, lodging industry, check cashing services, pharmacies, airports and airlines, prisons, departments of motor vehicles, law enforcement agencies, notable buildings, military establishments, courthouses, college campuses, nuclear facilities, Department of Homeland Security, oil refineries and storage facilities, bus, rail and port facilities, bars and night clubs, stadiums and arenas, convenience stores, casinos and gaming establishments, grocery chains, restaurants, firearm dealers, and the cannabis industry. Specific government and law enforcement customers include the FBI, Drug Enforcement Administration, State & Local Police, Local Sheriffs, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Intelligence Agencies, Customs, Department of Transportation, Department of Homeland Security, and Border Patrol.