Intellicheck Mobilisa, Inc. (NYSE MKT:IDN) Q2 2018 Earnings Conference Call - Final Transcript
Aug 14, 2018 • 04:30 pm ET
Greetings, and welcome to the Intellicheck Second Quarter 2018 Earnings Call. (Operator Instructions)
I would now like to turn the conference over to your host today, Mr. Gar Jackson, IR. Please proceed.
Good afternoon, and thank you for joining us today for the Intellicheck second quarter 2018 earnings call.
(Forward-Looking Cautionary Statements)
The management will use the term adjusted EBITDA in today's call. Please refer to the Company's press release, issued this afternoon for further definition, reconciliation and context for the use of this term.
We will begin today's call with Bryan Lewis, Intellicheck's' CEO; and then Bill White, Intellicheck's CFO, who will discuss the Q2 financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors. Today's call will be limited to one hour, and I will now turn the call over to Bryan.
Thank you, Gar. Good afternoon, and thank you all for joining us today. I've been in Intellicheck for about six months now, and just as I started the call last time, I would like to reiterate that I continue to be excited about what we are doing on multiple fronts here at Intellicheck each day. Our core technology, authenticating government issued IDs, is proving to be the most vital step in combating identity fraud, underage use of age-restricted products and in helping law enforcement do their jobs.
As you know, we received an important independent endorsement of our product accuracy with the recent announcement by the New York DMV that they ran 1,000 fake IDs through our core authentication technology, and we caught all 1,000. We say we are 99.9% accurate, but in this case, we were batting 1,000. As I said last call, we believe that the market is truly coming our way and I'm going to start by talking about why in the context of the two verticals that we sell into, consumer transaction space and the law space.
I will start with the consumer space, specifically retail, where we believe we have the most immediate revenue opportunity. While most only read the news and on any given day, you will see an article or research report detailing how identity theft and the creation of synthetic identities is costing billions of dollars a year and has taken countless hours for victims to clear their records. For those of you who don't know, synthetic identities are created when a criminal combines typically stolen, real information about individuals, think the Equifax breach, to create identities that are then used to open fraudulent accounts. Take a moment to think about the frequency of announced data breaches, and you will quickly understand the severity of the situation.
For example, in the second quarter of this year, nine of the largest breaches in the US led to 681 million records being stolen. Additionally, 15 of the top retailers in the country were hacked so far in 2018. This is in addition to the more than 145 million names, Social Security numbers and dates of