Click here to close now.


News Feed Item

ID Watchdog Announces Results for Second Quarter 2014

DENVER, Aug. 6, 2014 /PRNewswire/ --

  • Revenues from core distribution channels increased 85.0%
  • Total revenues increased 59.5%
  • Gross profit increased 109.4%
  • Positive EBITDA of $115,087

ID Watchdog, Inc. (TSX VENTURE: IDW) (PINKSHEETS: IDWAF) ("ID Watchdog" or the "Company"), provider of consumer-facing identity theft protection and resolution services, today announced its results for the 2nd quarter ended June 30, 2014. All amounts are in U.S. dollars.

2nd Quarter 2014 Highlights:

  • Revenue: Revenue totaled $842,320 for the second quarter of 2014, an increase of $314,124, or 59.5%, from the second quarter of 2013.  During the second quarter of 2014, revenue from our employee benefits and tech support increased by 85.0% and contributed $283,092 to the total increase in revenues, while revenues from our iSekurity and anti-virus customers contributed $60,066 and $16,783, respectively, to the total increase in revenues.  These increases were partially offset by a $45,817 decrease in revenues from our consumer marketing channel.
  • Gross Profit: Gross profit increased by $307,584, or 109.4%, from $281,174 during the second quarter of 2013 to $588,758 during the second quarter of 2014.  The gross margin rates for the second quarter of 2014 and 2013 were 69.9% and 53.2%, respectively.
  • EBITDA:  For the second quarter of 2014, EBITDA improved by $256,325 to $115,087 as compared with $(141,238) for the similar period in 2013.  The improvement in EBITDA is due primarily to the $307,584 improvement in gross profit as described above.
  • Cash Balances: Cash and cash equivalents as of June 30, 2014, totaled $868,412, an increase of $315,718 from our cash balances at December 31, 2013.

ID Watchdog CEO, Michael Greene, stated, "We are pleased to report another quarter of solid revenue growth in our Employee Benefit and Tech Support Channels, our core distribution channels, which increased 85.0%  in the second quarter of 2014.  Also, during the first half of 2014, we added a number of product enhancements including $1 million in expense reimbursement insurance, Instant Identity Monitoring, which detects potentially fraudulent new accounts at the instant of application, enhanced non-credit loan monitoring, solicitation reduction features as well as a number of other product enhancements.  We believe these enhancements add significant value for our customers and will serve to advance our competitive position in the marketplace."

Mr. Jay Lewis, ID Watchdog's CFO, commented, "As we look forward to the quarter ending September 30, 2014, we expect core distribution revenue growth and total revenue growth of approximately 80% and 45%, respectively, with continued sequential growth in EBITDA.   

ID Watchdog, Inc

Consolidated Interim Condensed Statements of Operations


Three Months Ended 
June 30,

Six Months Ended  
June 30,






$      842,320

$      528,196

$     1,632,947

$     1,082,684

Cost of revenue





Gross profit





Operating expense:

     General and administrative expense





     Sales and marketing expense





     Stock-based compensation expense





     Depreciation and amortization expense









Operating income (loss)





Other income (expense):

     Gain (loss) on warrant liability





     Interest expense, net









Net income (loss) and comprehensive income (loss) applicable to ordinary shares

$   (308,213)

$   (385,278)

$     (344,277)

$     (875,470)

Basic and diluted net income (loss) per share applicable to ordinary shares

$         (0.00)

$         (0.00)

$           (0.00)

$           (0.01)

Weighted average number of shares outstanding - basic and diluted







Reconciliation of Net Loss to EBITDA

Three Months Ended June 30,

Six Months Ended June 30,





Net loss

$  (308,213)

$   (385,278)

$    (344,277)

$     (875,470)

Stock-based compensation expense





Depreciation and amortization expenses





Loss (gain) on warrant liability





Interest expense, net






$     115,087

$   (141,238)

$      173,830

$    (245,285)



ID Watchdog, Inc

Consolidated Interim Condensed

Statements of Financial Position


June 30,

December 31,


Cash and cash equivalents





Accounts receivable, net



Prepaid expenses and other



Total current assets



Property and equipment, net



Customer agreements, net



Total Assets






Accounts payable, accrued liabilities and other





Current portion of credit facility



Deferred revenue



Total current liabilities



Credit facility, net



Deferred rent



Finance lease obligations, net of current portion



Series C Preferred mandatorily redeemable 
preferred shares, net of discount and conversion feature



Warrants liability



Total Liabilities



Total Shareholders' Deficit








About Non-IFRS Financial Measure

To supplement the Company's consolidated financial results presented in accordance with International Financial Reporting Standards ("IFRS"), the Company reports EBITDA (net income (loss) before depreciation and amortization, stock-based compensation, gain (loss) on warrant liability and net interest expense) and uses this metric to measure the performance of our business.  EBITDA is not a performance measure defined under IFRS and is not considered an alternative to income (loss) from operations or net earnings (loss) in the context of measuring the Company's performance.  EBITDA does not have a standardized meaning and is therefore not likely to be comparable with similar measures used by other publically traded companies.  EBITDA should not be used as an exclusive measure of cash flow since it does not account for the impact of working capital changes, taxes, interest payments, capital expenditures, debt principal reductions and other sources and uses of cash, and is not meant to be considered in isolation or as a substitute for financial information prepared in accordance with IFRS.

Financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent quarterly reports and our annual report. These documents are available online at and in the "Company Overview" section of our website at

About ID Watchdog, Inc.

ID Watchdog was founded in 2005 and is headquartered in Denver, Colorado. The Company provides three-tiered comprehensive monitoring, detection and resolution for identity theft. ID Watchdog proactively detects identity theft problems at their source and provides immediate resolution services to ensure complete peace of mind for individuals. All the Company's services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit

Forward-Looking Statement

This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 which address future events and conditions which are subject to various risks and uncertainties. The actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. Although the Company believes that its expectations reflected in these forward-looking statements are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the company's filings with Canadian regulators at ID Watchdog assumes no obligation to update the forward-looking statements of management beliefs, opinions, projections, or other factors should they change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Company Contact:
Jay B. Lewis
Chief Financial Officer
ID Watchdog, Inc. 
[email protected]

ID Watchdog, Inc. logo

Logo -

SOURCE ID Watchdog, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driv...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively.
SYS-CON Events announced today that Spirent Communications, the leader in testing navigation and positioning systems, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Spirent Communications enables innovations in communications technologies that help connect people. Whether it is service provider, data centers, enterprise IT networks, mobile communications, connected vehicles or the Inte...
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, will discuss the impact of technology on identity....
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. Migration to cloud shifts computing resources from your data center, which can yield significant advantages provided that the cloud vendor an offer enterprise-grade quality for your application.
DevOps is gaining traction in the federal government – and for good reasons. Heightened user expectations are pushing IT organizations to accelerate application development and support more innovation. At the same time, budgetary constraints require that agencies find ways to decrease the cost of developing, maintaining, and running applications. IT now faces a daunting task: do more and react faster than ever before – all with fewer resources.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
The web app is agile. The REST API is agile. The testing and planning are agile. But alas, data infrastructures certainly are not. Once an application matures, changing the shape or indexing scheme of data often forces at best a top down planning exercise and at worst includes schema changes that force downtime. The time has come for a new approach that fundamentally advances the agility of distributed data infrastructures. Come learn about a new solution to the problems faced by software organ...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ability. Many are unable to effectively engage and inspire, creating forward momentum in the direction of desired change. Renowned for its approach to leadership and emphasis on their people, organizations increasingly look to our military for insight into these challenges.
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
Electric power utilities face relentless pressure on their financial performance, and reducing distribution grid losses is one of the last untapped opportunities to meet their business goals. Combining IoT-enabled sensors and cloud-based data analytics, utilities now are able to find, quantify and reduce losses faster – and with a smaller IT footprint. Solutions exist using Internet-enabled sensors deployed temporarily at strategic locations within the distribution grid to measure actual line lo...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, will explore the current state of IoT connectivity and review key trends an...