Intellicheck, Inc. (NASDAQ:IDN) Q3 2023 Earnings Call Transcript

Bryan Lewis: So two parts. They certainly should start generating revenue in Q1 at the absolute latest. I mean, like I like we said on the call, they are both blown away by what they are seeing. They both told us that they were just getting destroyed by fraud. And now for both of them, we’re not only stopping that fraud destruction, but we’re also getting them new customers very quickly. So that’s why they are now looking, how do we get it all over the place? And I think Chris has been very busy with that, in trying to figure out how we get to everywhere they want to as quickly as possible. I will say that so far I’m not seeing any reduction through basically cut in yesterday in terms of volumes from – in terms of the seasonality, so, so far so good.

Rudy Kessinger : Okay, great. Thanks for taking my questions, guys.

Bryan Lewis: Thank you.

Operator: The next question we have is from Scott Buck of H.C. Wainwright. Please go ahead.

Scott Buck : Hi. Good afternoon, guys. Thanks for taking my questions. Brian, I’m curious, you guys price the product differently when you are doing your work with auto or real estate versus the legacy store branded cards. I guess I’m just asking, given that I imagine the number of transactions is significantly fewer, but the dollar volumes we’re talking about in the risk is significantly higher.

Bryan Lewis: Yeah, definitely. We sort of have a – maybe three tiers is the way to look at it. Volume being an indicator for part of the pricing and then age restricted is always very different than fraud prevention. And then with fraud prevention it’s sort of the size of the fraud potential in there. So you’ve got age starting at a lower point for any kind of real volume than we would in fraud prevention. And then the lower the volume, the higher the cost, and then the greater the potential loss, the higher the cost.

Scott Buck : Okay, great. That’s helpful. And I’m curious what – obviously the business has changed quite a bit since kind of pre-COVID in terms of diversification. How much of transaction volume is still coming from kind of the legacy store branded card business?

A – Bryan Lewis: Definitely the majority of it is still there. Probably 93% to 95%. We’re getting our reporting there, so it makes it easier for us to break that out. But my goal is to reduce that as we get into some of these other markets and certainly other areas that are sort of recession proof, where you still need to authenticate yourself, which is one of the reasons we like some of the other markets that we have been moving into.

Scott Buck : Great. That’s helpful. And kind of as a follow-up there, I mean, there’s been a fair amount of news regarding credit tightening over the past several months and it’s becoming more difficult for people to open new credit cards. Have you seen that on your end in terms of transaction volumes?

Bryan Lewis: No, like so far, not. I think more where I’m seeing changes in transaction volumes, it’s because the retailer themselves is having problems, because there are some retailers who are up. And then again, like I said, there are some of the retailers that are very much down, 5% to 30%. But I’m also seeing other retailers that are flat and others that are up about 10%. So, so far we’re not, but that is certainly something that I’m keeping my eye on.

Scott Buck : Sure. I appreciate the time, guys. This is great. Thank you.

Bryan Lewis: Thanks, Scott.

Operator: The next question we have is from Daniel Hibshman of Craig-Hallum. Please go ahead.

Daniel Hibshman : Hey, this is Daniel on for Jeff Van Rhee. Just quick, on the new data product, any thoughts on pricing and or how that would be priced and any thoughts on the expected top line impact from that?