About Intellicheck

Intellicheck, Inc. operates as a prominent technology company that delivers on-demand digital identity validation solutions for KYC, fraud, and age verification needs. The company validates both digital and physical identities for financial services, fintech companies, BNPL providers, e-commerce, and retail commerce businesses, law enforcement and government agencies across North America. The company’s software solutions can be used through a mobile device, a browser, or a retail point-of-sale scanner. The company plans to expand its business in the near term by pursuing a strategy designed to increase market share in its existing markets and expand into new product markets that are expected to benefit from fraud prevention and identity validation. For example, the company has extended its technologies into online applications to provide identity validation and fraud prevention for the billions of transactions that occur online each day. The company plans to leverage its intellectual property in the markets it is targeting to strengthen its competitive position. The company’s primary businesses include Identity Systems products, which include commercial applications of identity card reading authentication. The company’s technologies address problems, such as: Commercial Fraud and Risk Management – which may lead to economic losses to financial institutions and merchants from check cashing, debit and credit card transactions, account take overs, e-commerce, as well as other types of fraud, such as identity theft that principally use fraudulent identification documents as proof of identity; Instant Credit Card Approval – retail stores and financial institutions use the company’s technology to scan a driver license at a kiosk or at the Point of Sale (POS) to confirm that an applicant is who they claim to be with additional certainty; Age Restricted Product Access – Products validate driver licenses and other government forms of identification to confirm the age of customers purchasing age restricted products. Target industries include alcohol, cannabis, tobacco, gambling, bars and nightclubs. Unauthorized Access – The company’s systems and software are designed to increase security and deter terrorism at airports, shipping ports, rail and bus terminals, military installations, high profile buildings and infrastructure where security is a concern; Fraudulent Retail Purchase Returns – Implementing the company’s validation software solutions can prevent fraudulent retail returns in situations where customers are seeking store credit or cash compensation for items being returned without a receipt when the transaction requires a driver license for identification; and Inefficiencies Associated with Manual Data Entry – by reading encoded data contained in the bar code and magnetic stripe of an identification card with a quick swipe or scan of the card, where permitted by law, customers are capable of accurately and instantaneously inputting information into forms, applications and the like without the errors associated with manual data entry. Products and Services The company’s Products and Services are generally sold as Software as a Service (SaaS) where customers pay for its cloud-based service. Identity Systems Products and Services The company’s Identity Systems are marketed to the Commercial, Retail, Financial and Government identification sectors. Commercial Identification Intellicheck Platform The Intellicheck Platform is 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 in online and retail settings using devices that can include a mobile phone or tablet, a PC or retail scanner. The Intellicheck Platform is designed to address the needs of users across a variety of use cases, including account access, account openings, receipt-less returns, receipt of delivery, age restricted purchases and more. Validating the ID Using its own proprietary technology, Intellicheck utilizes an iOS or Android phone, or a retail scanner to read and verify the encoded format contained on U.S. and Canadian driver licenses, state issued non-driver identification cards, military IDs and passports. Using integrated third-party technology, Intellicheck offers the ability, through certain platforms, to scan and verify over 10,000 documents around the world, including drivers licenses, state identity documents and passports. The company’s Intellicheck Platform can quickly determine if: the format of the document is valid; the document has been altered or is fake, by displaying the parsed, encoded data for comparison with the printed information; the document has expired; or the encoded data contains a date of birth equal to or greater than the legal age to purchase age restricted products, such as alcohol, vaping, cannabis and tobacco. Matching the Person to the ID Intellicheck integrates third party software to provide the ability to match a selfie of a person to the picture on the driver license. These facial biometrics capabilities allow the Intellicheck platform to check for likeness to ensure that static photos are not being used as a stand-in for the user on both ends of the match, in addition to the ability to match the ID photo to the selfie and provide a match score. This capability is integrated into the Intellicheck platform to allow for fast deployment and is an option for platform subscribers. Determining the Risk Score The Intellicheck platform offers the ability to analyze data or signals to determine the risk of doing business with the person on the identity document. Intellicheck provides access to a wide variety of data signals, including device fingerprinting, IP address, phone number, time zone, geographic location and more to analyze, using machine learning, the risk of doing business with that person. The Intellicheck Platform consists of the following elements: IDN-Portal IDN-Portal is an Intellicheck-branded identity validation application that can be typically set-up for a user in under an hour. It provides the ability to scan an ID using a mobile phone or tablet. IDN-Portal provides the flexibility to allow the Intellicheck customer or their customer to perform the scan and enables the Intellicheck customer to manage their application online using the PC. IDN-Portal+ IDN-Portal+ starts with all the features of IDN-Portal in addition to the ability to perform a facial biometrics test to match the picture on the ID to a selfie of the user presenting the ID. Additionally, Portal+ offers global document validation, retail POS integration, additional data for analytics and analysis and online validation among other features. IDN-Direct IDN-Direct provides the capabilities of the Intellicheck platform within the users own apps and integrated with their systems. IDN-Direct is accessible through the Intellicheck API to aid integration into customer applications and systems. IDN-Direct also provides an SDK to simplify integration into the user’s mobile applications. IDN-Direct provides access to additional data and also provides the ability to use the platform’s Risk Score capability to help with decision-making. Intellicheck Mobile Intellicheck Mobile is the pre-build iOS and Android application for use by purchasers of IDN-Portal and IDN-Portal+. The Intellicheck Mobile app provides that the ability to login and scan an ID. The app also, depending on the level of Intellicheck service purchased has access to additional data once the document has been analyzed. State Aware Software The company’s patented State Aware Software solution provides or restricts information that is electronically scanned from an ID based on the electronic reading laws according to the state in which the ID is scanned. For example, scanning an ID in New Hampshire for law enforcement purposes is allowed, whereas electronically scanning an ID for a mailing list is not allowed. With all the various uses of scanning and verifying an ID, it is important for responsible users to be aware of the different state laws. State Aware Software incorporates each state’s requirements around electronic capture of ID barcode data directly into hosted Intellicheck Platform. Data Collection Devices The company’s software products are 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 company’s 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 (ESN) to prevent unauthorized use of its software. Instant Credit Application Kiosk Software Applications These are custom software applications that Intellicheck developed for a variety of major financial service companies and retail stores. The software installed on multiple kiosk devices provides the customers of the major financial service companies and retail stores with the ability to perform in-store instant credit approval on these devices. The hardware platforms, on which the software applications run, range from stationary devices to handhelds to tablet PCs. The process involves the swiping or scanning of the driver 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 on the kiosk. The applicant then completes the application by entering the remaining required information that is not encoded on the driver 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. Upgrade Capability The company’s Intellicheck Platform products and related databases are constantly updated to stay with identification formats and new forms of ID. Strategy The key elements of the company’s strategy are to develop additional strategic alliances with providers of security solutions; strengthen sales and marketing efforts; enter into additional licensing agreements; and protect intellectual property. The company markets its technology as a key productivity enhancement tool. The company’s proprietary Intellicheck Platform software can add functionality to virtually any given software application to automatically populate fields within a given form, when a government-issued photo ID is presented. Revenue Sources The company derives its revenue primarily from the following sources: sales of its systems by both its own direct sales force and marketing partners; per transaction or fixed price (SaaS) revenue from the licensed use of its technology; extended warranties on equipment; and other subscription and Support Services, such as jurisdictional updates to certain commercial customers and support services. Target Industry Sectors Commercial Identity Systems The company targets the industry sectors that would benefit most from its systems and software. The company also markets its products to opportunities where its Intellicheck Platform technology can be used to enhance productivity. The company has made significant progress in the sectors for the retail issuance of instant credit. Productivity Enhancement: Includes mass merchandisers and retailers; auto dealerships and rental car agencies; banks and other financial institutions; casinos for enrollment of guests; credit unions; hospital patient admissions; credit card issuers; lodging industry; check cashing services; and airlines. Commercial Fraud Protection: Includes mass merchandisers and retailers; auto dealerships and rental car agencies; banks and other financial institutions; casino cage operations; credit unions; hospitals, medical facilities and health plans; credit card issuers; lodging industry; check cashing services; and pharmacies. Access Control: Includes airports and airlines; prisons; departments of motor vehicles; law enforcement agencies; notable buildings; military establishments; court houses; college campuses; nuclear facilities; department of homeland security; oil refineries and storage facilities; and bus, rail and port facilities. Age Verification: Includes bars and night clubs; stadiums and arenas; convenience stores; casinos and gaming establishments; grocery chains; law enforcement; restaurants; firearm dealers; and cannabis industry. Law Enforcement/Government: Includes FBI; drug enforcement administration; state and local police; local sheriffs; bureau of alcohol, tobacco, firearms, and explosives; intelligence agencies; customs; department of transportation; department of homeland security; and border patrol. Marketing and Distribution Commercial Identity Systems As of December 31, 2022, the company’s marketing efforts have been through direct sales by its sales and marketing personnel, through resellers and license agreements. The company is marketing its products through direct marketing approaches, such as web marketing, a small number of select trade shows and well-known public interest and trade associations. The company generates revenues from the licensing of its software and to a much lesser extent the selling of bundled solutions that contain hardware and software. Depending on the specific needs of the company’s clients, it tailors the right solution for them. The company’s Intellicheck Platform software is available to customers via the cloud (SaaS) and is available for Microsoft Windows, Android and iOS platforms in addition to devices, such as credit card terminals and other operating systems, such as Linux. The company is marketing its Intellicheck Platform technology to financial institutions, mass merchandisers, government, airlines, airports, high profile buildings or infrastructure, grocery, convenience and pharmacy chains, and casinos. The company has developed a comprehensive marketing plan to build customer awareness and develop brand recognition in its target industry sectors. The company promotes the advantages and ease of use of its products through endorsements by nationally known public interest groups and trade associations; web seminars, as well as its own website; trade publications; various conventions and industry specific seminars; and trade shows; The company intends to continue to develop and market other related software applications. Major Customers In 2022, the company’s top ten customers accounted for approximately 72% of total revenues. Regulation The sale and use of the company’s Identity System products are subject to regulation, such as on data protection and storage, by government authorities. The company works on an ongoing basis with its customers to facilitate their compliance with such regulations. Intellectual Property The company holds eighteen (18) U.S. patents and one (1) Canadian patent. The company has three patent applications pending in the U.S. Patent and Trademark Office. These patents cover commercially important aspects of the company’s capabilities relating to the authentication and verification of identification documents. In January 1999, the U.S. Patent and Trademark Office granted the company a patent on its ID Check software technology. In October 2002 and July 2005, the company was granted additional patents that are a continuation of its patents relating to its document authentication and age verification technology. Upon its acquisition of the assets of IDentiScan, the company received equitable ownership and sole ownership rights to its intellectual property, including other patents and patent applications relating to age verification technology. During 2010, the company was granted two additional patents. The first patent was for a software key control for mobile devices. It is used to get a registration key for the parser that is based on the unique internal ID of one mobile device. The Mobile Key Manager communicates with the mobile device, reading its ID, and then requests a registration key specific for that ID from Intellicheck's server. This server maintains a database of all customers using IDecode Mobile Parsers, including the number of licenses they have purchased, the latest software version for which they have paid support, and the registration keys and unique device IDs associated with those licenses. The server generates a new registration key unique to the device ID and returns it to the Mobile Key Manager to register that device. In this way, the customer can deploy the IDecode Mobile Parser to only one mobile device for each parser purchased. The second patent was related to a document comparison system and reinforces the innovative nature of Intellicheck’s security solutions involving documents. The technology described in the patent relates to a system and method for comparing information contained in at least two documents. For example, information on at least two different documents can be compared to determine whether the information is the same on each document. For instance, a name contained on an individual’s driver’s license is automatically compared with a name contained on the individual’s airline boarding pass. In 2012, the company was granted a patent relating to a system and method for comparing information contained in at least two documents, but not limited to just a driver license and passport. This patent compares like information on different documents to determine whether the information is the same on each document. In 2014, the company was granted one patent that was also a continuation of an earlier-filed application. The patent is related to a document comparison system that compares information contained in two documents to determine whether certain information is substantially identical on each document. The system provides a positive or negative indication as to whether portions of the two documents are substantially identical. In 2015, the company acquired an intellectual property portfolio that includes four patents involving technologies for checking the validity of identification documents using a remote database. Certain patents in this portfolio address the use of biometric information and identification credentials as part of the process to control access to a secured area. In 2016, the comopany was granted one patent in Canada that was a continuation of an earlier filed application and is related to identity matching in response to threat levels. In 2018, the company was granted one patent that was also a continuation of an earlier filed application to a document comparison that compares information contained in multiple documents. The company was granted two patents in 2019 that were a continuation of earlier filed applications. The first patent is related to checking the validity of identification documents using a remote database. The second patent related to identification scanning in compliance with jurisdictional or other rules. In 2020, the company was granted two patents that were a continuation of earlier filed applications. The first patent is related to checking the validity of identification documents using a remote database. The second patent is related to document comparison that compares information contained in multiple documents. In 2022, the company was granted two patents that were a continuation of earlier filed applications. The first patent is related to using a mobile device to perform verification of a selfie to a photo on an identification document. The second patent is related to a system and method for document comparison that compares information contained in multiple documents. The company owns multiple copyrights in the United States, which are effective in Canada and in other major industrial countries. The copyright protection covers software source codes and supporting graphics relating to the operation of the Intellicheck Platform and other software products. The company also has several trademarks relating to it, its product names, and logos. Research and Development The company’s research and development expenses included $6,014 for the year ended December 31, 2022. History The company was founded in 1994. It was originally incorporated in the state of New York in 1994 as Intelli-Check, Inc. In 1999, the company was reincorporated in Delaware. The company was formerly known as Intellicheck Mobilisa, Inc. and changed its name to Intellicheck, Inc. in 2017.