Intellicheck, Inc. (NASDAQ:IDN) Q2 2023 Earnings Call Transcript

Unidentified Analyst: This is Owen [ph] on for Mike tonight. It sounds like there’s some momentum rolling in terms of alcohol sales and a growing number of college stadiums and you guys recently signed a big Midwest stadium. I was just wondering if you guys had states to call out there and how are you targeting growth in this vertical?

Bryan Lewis: I’d say the stadiums are certainly — we’ve got people who are going out and targeting them. Because I think it’s important that — these people care about it because they make a lot of money off of it and if they get it wrong, usually, the towns look to pull the license, so both the vendor and university lose the money. So they care about doing the right thing. So we definitely have a targeted outreach to them. The good thing is we now have basically a relationship with each one of the major concession companies that serve the universities. They all are sold on an individual basis. Each stadium is sort of its own business underneath kind of the umbrella of concessions company. But given that we now have, I guess, the main 4 are already integrated, know who we are, it’s making that process I think — it should help speed it up and make it go quicker.

So it is a target for us. I don’t have people going out and knocking on bars and restaurants one at a time. I think that’s sort of a waste of time. But what we’re looking to do is target Charleston-like things and the Councilman, who was behind this initiative and the original bar owner who are behind this initiative are willing to help us out in any way we can to make this work. So I think doing larger kind of packaged deals like that is where we do outreach. Everything else is sort of inbound. And I think our law enforcement clients are some of our best references or salespeople because as soon a place busted and they ask what are you using, we have a new customer.

Operator: The final question we have comes from Scott Buck from H.C. Wainwright.

Scott Buck: Bryan, can you remind me — and apologies if some of these have already been asked. Can you remind me, do you guys charge for your pilot programs? Or is that something you kind of give away the carrot to get people into [ph].

Bryan Lewis: Generally, we charge but it can be a case-by-case basis but generally we charge for pilots. And it can be sort of a different type of pilot you get up to a number of transactions or things like that. But put it this way, I’m not going to lose a deal because somebody huge says, “well, we don’t pay for pilots.” I mean, we’re like, “I don’t care” because I know once we’re in, we’re in.

Scott Buck: Right. Right. Okay. That’s helpful. And then I’m curious, how do you guys explore it? Or are there potential partnership opportunities that could get you in the door with a meaningful number of potential customers?

Bryan Lewis: Yes, that’s exactly the whole program that really — Jeff is building the infrastructure for us to do it. So we’re going to have proper deal registration and all that. We have a lot of folks that currently are reselling our products but we need to formalize the program. And there are absolutely — we’ve targeted and have been in discussions with people that need solid identity validation in different verticals. And so — but we’ve got folks that are reselling us in automotive. We’ve got some folks that have embedded us in think — to scan for age-restricted products. We’re talking to people that provide software, say, in the title insurance space. So we’re definitely — that is where we think we could get a lot of growth next year.