Ipsidy Inc (OTCQX:IDTY) CEO Philip Beck said the company is at an “inflection point” based on its discussions with business partners and potential customers, as it reported financial and business results for the third quarter.
In a statement accompanying the Long Beach, New York biometric identity solutions company’s latest numbers, Beck said: “Ipsidy's Identity as a Service Platform (IDaaS) solves everyday problems with biometric certainty."
He added: "We believe that we are at an inflection point based on our engagement and discussions with business partners and potential customers. The Ipsidy team is working on closing opportunities in the Europe, Middle East and Africa (EMEA) and LATAM regions, that we believe will be significant.”
Beck said the company was focused on improving its balance sheet and efficiently deploying resources to support its active sales pipeline.
Total revenue for the three- and nine-month periods in 2019 was $0.6 million and $1.9 million respectively compared to $0.7 million and $3 million respectively for the same periods in 2018.
The company said the results for the nine-month period in 2018 reflected the one-time supply of Search, the company’s Automated Fingerprint Identification System to the Zimbabwe Electoral Commission, offset by revenue increases in 2019 from new products and Cards Plus.
Net loss before taxes for the three and nine months ended September 30, were $2.3 million and $6.8 million respectively, compared to a loss for the same periods of $2.1 million and $7.4 million in the year earlier.
The company posted an underlying earnings (EBITDA) loss for the three and nine-month periods in 2019 of $1.8 million and $4.9 million respectively, compared to $1.3 million and $4.4 million respectively in 2018.
In June, Ipsidy closed an equity funding round for proceeds of approximately $3.1 million, by the issue of approximately 38.8 million shares.
During the quarter, Ipsidy signed a letter of interest with local partners to establish operations in the United Arab Emirates and commenced sales activities in UAE, in pursuit of a number of specific opportunities.
Gaining traction in Peru
Its subsidiary, Ipsidy Peru SAC, inked a pact with RENIEC, the South American country's national ID registry, which manages all national identities and issues electronic national ID cards, to enhance its Proof platform in Peru.
Proof by Ipsidy is a mobile identity verification solution using government-issued credentials, combined with real-time biometrics.
Under the new deal, Ipsidy will be able to connect its IDaaS platform to RENIEC in Peru to submit facial biometric and national ID card data for validation against RENIEC's own national identity records.
“We believe that expected revenues from our implementation for BBVA Continental in Peru under an agreement with Hogier Gartner Y CIA will substantially improve the cash flow of our Multipay operations in the LATAM region,” said the company.
The firm Mobile Solutions Peru (MSP), established in 2010, offers Ipsidy's suite of biometric identity solutions to financial institutions, security companies, retail operations, telecoms and transportation companies in the Peruvian, Chilean and Argentinian markets.
Contact Uttara Choudhury at [email protected]
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