Ipsidy raises $9.6 million in stock subscription and reports Q2 earnings
Ipsidy has announced another significant increase in revenues in its recently-closed second quarter, along with a $9.6 million equity funding round.
The company made $1.8 million in revenue in Q2 2018, and $2.4 million in the six months prior to June 30, major increases over $0.6 million and $1.1 million respectively for the same periods in 2017. Ipsidy attributes the revenue increase to the successful completion of an agreement to supply its Search AFIS and related services to the Zimbabwe Electoral Commission (ZEC). Net loss for the quarter was $2.5 million and for 1H 2018 was $5.2 million, compared to losses of $2.8 million and $12.5 million in Q2 and 1H 2017, respectively.
Adjusted EBITDA loss was $1.6 million in Q2 and $3.3 million in 1H, after equivalent losses of $1.4 million and $3.0 million respectively last year. The increased loss of $0.3 million can be attributed to increased investment in salaries and technology to support future operations, and it also wrote down $0.5 million in legacy kiosk value, which was offset by revenue from the sale of Search to the ZEC.
“Our flexible suite of Identity-as-a-Service solutions, makes biometrically authenticated identity core to the user experience in approving everyday transactions,” said Philip Beck Chairman and Chief Executive Officer of Ipsidy. “Our low cost IDaaS solutions can be delivered out of the box or easily integrated with our RESTful API’s. The recent fund-raising will help us execute on the large number of physical and virtual use cases for our solutions, in different markets and countries around the world.”
The common stock subscription raised $9.6 million from the issuance of approximately 63.9 million shares at a price of $0.15 each.
Operational highlights during the quarter include the launch of a subsidiary in England and hiring Jonathan Ellis as Managing Director, EMEA Sales. It also announced the availability of its mobile biometric identity app for Android and iPhone, launched its physical access control solution Access, and began production service of Access with a major commercial real estate operator in the U.S. It also reached a deal in June to provide facial biometrics to fleet-management tool provider Skypatrol.
Ipsidy upgraded from the OTCQB to the OTCQX Best Market exchange in May.