Greetings and welcome to the Intellicheck Mobilisa's Fourth Quarter and 2013 Year End results. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Enrique Briz, DGI for Intellicheck Mobilisa. Thank you Mr. Briz, you may begin.

Thank you, Operator. Good morning and welcome everyone. Thank you for joining us today for our 2013 fourth quarter and full year conference call to discuss Intellicheck Mobilisa’s results for the quarter ending December 31, 2013 and to discuss other business developments. In a moment I will call upon our CEO, Dr. Nelson Ludlow to lead today's call and introduce the members of the Intellicheck Mobilisa management team who will be participating in today's conference call. Before I do that, I will take a few minutes to read the forward-looking statements. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this conference call, words such as will, believe, expect, anticipate, encouraged and similar expressions as they relate to the Company or its management, as well as assumptions made by and information currently available to the Company's management, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances and the Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of such changes, new information, subsequent events or otherwise. Additional information concerning forward-looking statements is contained under the heading of Risk Factors listed from time-to-time in the Company's filings with the Securities and Exchange Commission. Management will use defined financial term adjusted EBITDA in today's call. Please refer to the Company's press release issued this morning for further definition of, and context for the use of this term. I would now like to introduce Dr. Nelson Ludlow, Intellicheck Mobilisa's Chief Executive Officer. Dr. Ludlow?

Good morning. Welcome to our shareholders and investors. Let me introduce who I have with me on the all today. Our Chairman, Admiral Mike Malone is here and Director, Guy Smith, General Buck Bedard and Mrs. Bonnie Ludlow are also here. And on our management team Bill White, our Chief Financial Officer, and Russ Embry, our Chief Technology Officer, Ms. Heather Flanagan, Director of Marketing and Mr. Robert Streett, Director of Sales joined me as well. The outline for today’s call is to present the Q4 and 2013 end of year financials. We then discuss our new products, business plans for 2014 and allowing opportunity for shareholders to ask questions. So let’s talk about the Q4 financials. Revenue for the quarter ending December 31, 2013 is up over double from Q4 the year before, increasing 159% to 1.366 million compared to 528,000 a year ago in the fourth quarter. Adjusted EBITDA in fourth quarter was reduced to a loss of 330,000 compared to a loss of 1.68 million in fourth quarter of 2012 when I was asked to takeover to CEO a year ago. Net income for the fourth quarter was a loss of about 600,000 or $0.02 loss per fully diluted share compared to a net loss of 1.955 million or $0.07 per share a year ago in the fourth quarter. And we had a busy Q4 in spite of the New Year going into 2014. If you look at our Web site, we posted 31 press releases or copies of new stories that were written about us and our products for this year from Q4 going into this year and some of those highlights let me just mention. One very noteworthy thing is we installed the product called the IM2620, it’s a proximity PACS reader, which is probably…

Thank you, Nelson and a good day to our shareholders, guests and listeners. I’d like to discuss some of the financial information that was contained in our press release for the fourth quarter ending December 31, 2013 which we released this morning. We anticipate that our Annual Report and Form 10-K will be filed with the SEC this afternoon. Earnings for our fourth quarter ended December 31, 2013 increased 159% to 1.366 million compared to 528,000 for the previous year. Booked orders for the three months ending December 31, 2013 were approximately 1.28 million compared to 2,017,000 for 2012. Our gross profit in the quarter was 889,000 or 65% as a percentage of revenues. For the first three months ending December 31, 2012 our gross profit was 46,000 or 9%. The percentage change is primarily result of a $670,000 adjustment to 2012 Q4 wireless revenue notwithstanding the adjustment gross profit was approximately 60%. Operating expenses which consist of selling, general and administrative and research and development expenses decreased 510,000 to 1.49 million for the three months ended December 31, 2013 from 2,002,000 for the three months ending December 31, 2012. Adjusted EBITDA for the quarter ending December 31, 2013 was a negative 330,000 compared to a negative 1.681 million in the same quarter last year. The Company posted a net loss of 600,000 compared to a net loss of 1,955,000 for the fourth quarter ending December 31, 2012. As of December 31, 2013 our backlog was approximately 381,000 compared to 1.236 million for the same period last year. A summary of our financial results for the 12 months ending December 31, 2013 and 2012 are as follow; revenue for the 12 month period ending December 31, 2013 was 7,299,000 compared to 8,803,000 last year. Adjusted EBITDA was a negative 1.324…

Thank you, Bill. So let’s summarize. In Q3 2013 we had a positive EBITDA of about 300,000 and technically we were profitable. In Q4, negative EBITDA also of about 300,000. I call this running the Company at roughly breakeven. We’re shifting our customer base to Software-as-a-Service and with each new SaaS or cloud-based client we can raise the floor of this recurring revenue. Since that time we’ve raised funds, we’ve used it to grow and hire new sales and marketing -- and push some in the marketing side of our Company, we have new products coming out and particularly I am excited about Fugitive Soft Finder in our law enforcement market. Overall I believe we are headed in the right direction. I am very optimistic about the future of our Company. As the Company rule we don’t make forecasts. First, our approach is to under promise and over delivery. Secondly, if we shift from enterprise of one-time purchase to Software-as-a-Service, revenue would be lumpy and it’s going to be difficult to accurately forecast. So at this point let’s take questions. We’ll be glad to do our best to answer any questions that people may have. Please clearly state your name, what organization you are with, and who you are asking the question to. Please also limit the questions to one or two questions, and if you have a follow-up question, please rejoin the queue so that others may have an opportunity to ask questions. So at this time we’d be glad to answer your questions and I’ll hand it to the operator.

and:

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions) Our first question comes from the line of Barry Beckman with Alpine. Please proceed with your question.

Nelson, how are you doing, we met during the road show and you are doing everything you said you were going to do and I congratulate you for it. My question goes to what the cash burn rate do you think will be in the upcoming quarters as you ramp-up yourself in and everything else? And how long do you think that current offering will last for the company? And would you do a strategic deal with someone, I think a credit card processing company or something like that to do a strategic deal, to get perfect match or something like this? Alpine: Nelson, how are you doing, we met during the road show and you are doing everything you said you were going to do and I congratulate you for it. My question goes to what the cash burn rate do you think will be in the upcoming quarters as you ramp-up yourself in and everything else? And how long do you think that current offering will last for the company? And would you do a strategic deal with someone, I think a credit card processing company or something like that to do a strategic deal, to get perfect match or something like this?

Hi, Barry. Yes, I remember and thank you for the question and thank you for visiting us on the road show. The cash burn rate is quite small. We successfully had the Company running close to breakeven, even with the addition of new sales people. You may see a slight cash burn to Q1 and Q2. We expect the shift out of that in Q3 into Q4. Now it changed slightly, but we believe that the punch in that we will be able to carry it forward and not need to do an additional raise based upon the current plan. Now we may -- if why would we do an additional raise, well the reason is that that could happen with the purchasing other companies, other directions in addition. But right now the rate that we have will continue to handle the sales and marketing growth that we did and so essentially it’s exactly as we said on the road show, and in that direction. The strategic deals, there are several of them that makes sense. Credit processing companies, you’re seeing more and more companies now doing mobile payment on the cell phone. Mobile IDs are going to be one of the things of the future. What I like, is I am always looking for a killer app that touches everybody with nearly 280 million drivers’ licenses in North America, almost every man, woman, teenager has one in their wallet and purse and we get to right the software around those applications, whether you are getting into a rental car, or whether you are checking into a hotel, whether you’re age-related product at a bar, whether you are getting on an airplane from TSA or now our newest one law enforcement, those are all opportunities wherever you show an ID there is an opportunity for our applications. Patterning with big companies where there are insurance companies, grocery store chains, rental car companies and having them where they step out because they know the markets better than we do, but we know the technology and the ID cards better than they do, it’s an excellent partnership and those are the ones that we’re seeking out.

Thank you. Our next question comes from the line of Amy Norflus with Neuberger Berman. Please proceed with your question.

Hi Nelson. Good job in turning on the Company. Can you give us a little bit more insight of what you think some of these new things that you are going on will turn it revenue and how do we quantify them. So, the TWIC you gave us specifically number of ports, what does it mean for revenue, when should it hit revenue some of the other options that you are talking about, like more…? Neuberger Berman: Hi Nelson. Good job in turning on the Company. Can you give us a little bit more insight of what you think some of these new things that you are going on will turn it revenue and how do we quantify them. So, the TWIC you gave us specifically number of ports, what does it mean for revenue, when should it hit revenue some of the other options that you are talking about, like more…?

Okay, yes absolutely…

And how much is mix during recurring revenue? Neuberger Berman: And how much is mix during recurring revenue?

I’m sorry. You faded out in the last question again.

And what’s the recurring revenue do we start to see? Neuberger Berman: And what’s the recurring revenue do we start to see?

Okay. So, let’s talk about the TWIC one that you mentioned and then I’ll talk a couple of other quick markets there to highlight in. The TWIC market we believe, we’ve already made sales in Q4 because of the new products. There are other companies that have recently added to the TSA list. IMD competition is good I mean I don’t view it as bad I view it as a big sign because it demonstrates other companies also believe that the TWIC market has value. We’ve competed against several ports recently and we’ve won, and we believe that’s we have not only a very competitively priced product and the best product and we do one thing that the other TWIC leaders can’t do and we call it TWIC plus and it’s not all that we read that specialized Homeland Security Card we also read drivers’ licenses. And that’s a big deal. If you have a port and somebody happens to have one of these TWIC cards and I’m betting that several people on this phone call who don’t know what a TWIC card is and there are going to be people and visitors and truck drivers and people that go to that seaport and say I don’t know what TWIC cards are either. And so -- but they do have driver’s license and so you want to be able to read both, and we’re the guys that do that, so I’m very glad to go head-to-head with that. I did mention the specific number there is 550 locations Coast Guard as they change guidance later in 2014 or 2015. Coast Guard has notified us that they intend to buy equipment themselves to enforce this on their ships and through the ports and they intend to purchase in 2015. We believe…

Thank you. Our next question comes from the line of Chien-Ming Wang with IGA. Please proceed with your question.

I have a few questions for Nelson. So first one is regarding the -- so you mentioned of course marijuana market right, so this is the key growth for a medical marijuana or which is recreational marijuana on it, how the product those pays from minors? This is question. What are your plans? So this is my question. The second question is, if you heard some news about Malaysia missing airplane actually four people used fake IDs, the passport IDs and ink would that bring -- that’s a big issue for all people right. So what is your plan for the international flight? Yes, that’s the second question. Thank you.

I have a few questions for Nelson. So first one is regarding the -- so you mentioned of course marijuana market right, so this is the key growth for a medical marijuana or which is recreational marijuana on it, how the product those pays from minors? This is question. What are your plans? So this is my question. The second question is, if you heard some news about Malaysia missing airplane actually four people used fake IDs, the passport IDs and ink would that bring -- that’s a big issue for all people right. So what is your plan for the international flight? Yes, that’s the second question. Thank you. IGA: I have a few questions for Nelson. So first one is regarding the -- so you mentioned of course marijuana market right, so this is the key growth for a medical marijuana or which is recreational marijuana on it, how the product those pays from minors? This is question. What are your plans? So this is my question. The second question is, if you heard some news about Malaysia missing airplane actually four people used fake IDs, the passport IDs and ink would that bring -- that’s a big issue for all people right. So what is your plan for the international flight? Yes, that’s the second question. Thank you.

Chien yes, thank you for your question. The first question I believe had to do with medical marijuana. There are several states that allow medical use of marijuana. I think it’s possibly a dozen, to 12 to 15. There are two states now Colorado and Washington States that actually not just medical use, but for recreational use for marijuana. It’s very similar to the cigarette market. Technically cigarettes are often at age 18 and you have to show identification. The City of New York talks about requiring age 21 and having to demonstrate if they validated that age requirement. The cool thing about the barZapp application is it already works right out of the box to do that. You can set up multiple age differences. There was even some discussions in the FDA of a morning-after pill and whether the age was 15 or 16 and there were lots of different discussions. Congress can change it to whatever age they need, the states can change it around, our software is smart, it knows what state, it knows what ID and it knows what user is using the port. And it allows them set different age triggers to do this. It also records the necessary information that make some compliance with the states, 46 of the 50 states have certain requirements of recording drivers’ license information and buy cold medication and that’s because people use it to make meth. And so each time may add more and more of these laws and new things, we have a product that already do that and which ID card that they’re going to show that validates age, there is really only one. And that’s the drivers’ license or identify card. We’re the ones that have patents on that. We’re the ones that have a…

Thank you. Our next question comes from the line of Robert Edwin, a private investor. Please proceed with your question.

Yes, good afternoon gentlemen. I am really at a loss to figure out why our sales aren’t five to six times where they are now. And yesterday obviously there was a huge increase in the volume of our stock. Can you tell us how many shares do insiders continue to own? Have insiders bought any stock recently? And what’s it going to take to get the federal government to wake up to the realities of the world and how our products are going help them with these problems? Thank you.

Yes, thank you Edwin for the call, I appreciate that. Okay, so let me take the questions. First of all on insider, till now we have not, I don’t believe anyone has sold any shares. We would obviously issue a Form 4 and we’re compliant with that. I don’t believe in 2013 that any director officer sold any shares. We’re believers in this Company. I think you also heard that the Board of Directors have shifted their compensation towards stock options and stock, again because they are believers in this Company. The last question I think the real key one, what is it going to take to get the federal government to wake up to this? Well the ABC News asked us to comment on that story which was rather critical of TSA and we’ll seeing it is that the viewers to use to comment on that. And the reason -- and they said why because we’re hopeful that TSA would use our technology. We provide the technology we think that we have a very good solution. Unfortunately there will be more incidents whether they are terrorists related or unknown related such as the Malaysian one that will cause people to keep looking at that. The one thing I think you can count on is that security is an issue that’s not going away. I do want to caution our shareholders that while TSA and the government is one obvious use for our technology, it’s just one of them and we certainly don’t put all our eggs into that basket, in fact our commercial side is the fastest growing one. It turns out getting you through the rental car line fastest, being able to get your AT&T cell phone better, being able to apply for a credit card so that a retailer can get their customer to spend four times more the bank is happy because they’re getting the credit card, but most of all the customer is willing to sign up for that credit card. Why, because it’s safe. They don’t want to pull up their name on a piece of paper and do -- that technology is gone. Those days of using a pen and paper and filling out a form and handing it to a clerk to make Xerox copies of it and give it to someone to use through various reasons hopefully that goes away, and I think it’s rapidly going away and people are shifting to doing it safe, electrically scan the ID and let you enter in your own social on signature tax or fax, that you answer your questions. That’s the safer preferred way. So we’re emphasizing frankly our commercial markets. The retail, age-related products, hotel, our cell phone company, those are our fastest growing markets and we’ve been putting most of our energy in that. While we do that we still have an offering for the federal government if and when they do that ID card scanning. Thanks Edwin.

Thank you. Our next question is a follow-up question from the line of Barry Beckman with Alpine. Please proceed with your question.

Hi Nelson and it’s a follow-up for the legal development question and when you look at the recurring revenue nature and what you’re doing there. Is there any upfront cost that the retailer or authority needs to make, it’s like hardware, I guess there is something that needs to be purchased to read your card or whatever or the license. In addition pay $99 or whatever they pay so who pays for the equipment to read that this license and if it’s yourself or do you provide it for free what’s your sort of payback period and your cost of providing the device, the hardware device to the company? Alpine: Hi Nelson and it’s a follow-up for the legal development question and when you look at the recurring revenue nature and what you’re doing there. Is there any upfront cost that the retailer or authority needs to make, it’s like hardware, I guess there is something that needs to be purchased to read your card or whatever or the license. In addition pay $99 or whatever they pay so who pays for the equipment to read that this license and if it’s yourself or do you provide it for free what’s your sort of payback period and your cost of providing the device, the hardware device to the company?

Yes, thank you Barry that’s an excellent question, so to read the barcode you need some equipment to scan that barcode, it turns out it’s very nice for our retailers because most of them already have a point of sale barcode scanner right at the point of sale. So the same scanner that’s scanning the boxes usually can scan the driver’s license. Now the one caveat on that is sometimes people have seen what’s called a one dimensional barcode which is just a bunch of single lines which is like a UPC price code what you will see is most of the barcode scanners nowadays are an imager that actually can do what’s called the two dimensional barcode. For our shareholders’ if you take out your driver’s license you flip it over there you see a larger barcode that has a lot of dots in it that barcode is called the PDF417 it’s the standard 2D barcode most imagers do that so usually when we walk into a retailer the amount of new equipment they have to buy is zero. On a rare occasion AT&T for example when they rolled out scanners in the stores to be able to do it this was essentially a new scanner while they had one at a point of sale they want to put it on to a tablet they want people to walk around the store and be mobile and be able to scan your ID and that was a new equipment purchase in most cases we do offer hardware from some of our very good partners of Internet, Motorola , DAP, Weber and Honeywell these guys make barcode scanner equipment and we’re partnered with these guys and we can offer that equipment to our clients. What you’re going to see though is…

Thank you. Our next question comes from the line of Joe Brunini, a private investor. Please proceed with your question.

Hello Nelson congratulations on a good quarter compared to prior year.

Thank you, Joe.

One thing I want to commend the Board is taking the compensation stock as the stockholders one of the biggest things we look for in a Company and I think that shows a lot of confidence and I follow it closely and none of your current manager hadn’t sold and they’ve been purchasing when they were allowed to and I know you have a very stringent restricted period out there. So that’s a big plus from a stockholders’ perspective. The second thing your patent on your threat level it’s just and think of you a little inside I’ll make it real quick but I recently travelled internationally and used the barZapp at three of the ports within United States prior to travelling overseas and it even once at a level the supervisor that they were so impressed on the immediate access that they had. But I do believe even though you have many, many avenues for revenue that this is a tremendous opportunity. And how does that threat level patent integrate within that scenario of analyzing the driver’s license and verifying it?

Yes thank you for the comment Joe. Yes, we did have patent issue recently about threat level and now that the fact it was one in my name the way the patent works is there is different checks and tests that we do and it adapts to the threat level. There is lot of different aspects to it for example we look at how rare names are we look at the individual information on an ID card. If you take a John Smith on an ID card and you match it to a John Smith on a bad guy list you’re going to get a lot of matches. I think we’ve all seen in the old days where somehow ladies going through the TSA check line and they’re just ripping their luggage apart and they are pulling her out of the wheelchair and they’re doing crazy stuff it’s just as embarrassing and long and frankly we could do a better job. And that’s because her name just happens to be common enough name to someone else on the terrorist list or the watch list or no-fly list. With an ID card, and you scan that, you have a whole bunch of information. You have date of birth, middle name, address, height, weight. You have a whole bunch of comparative information that could be matched to other information on local or in a law enforcement product to other lists. And when you do that you want to match it intelligently. You don’t want to say, hey look, it’s John Smith, must be the exact John Smith, but it is not. So what we are trying to do is accurately identify and we do more detailed tests that adapt based on threat levels. If it is a very high threat level, and…

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.