Identitii Ltd. (ID8) AI Stock Analysis

• Market Cap: AU$5.45M
• Dividend Yield: N/A
• Average Volume (3M): 595.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: -19.29%
• EPS Growth: 41.67%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 778,013,550
• 10 Day Avg. Volume: 477,216
• 30 Day Avg. Volume: 595,440
• PEG Ratio: -0.08
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 38 Underperform
• Price Target: ―

Identitii Ltd.'s overall score reflects its significant financial challenges, particularly in profitability and cash flow management. The lack of technical analysis data and negative valuation metrics further contribute to a low score. The company must focus on improving operational efficiency and revenue generation to enhance its financial health and market perception.

Identitii Ltd. Business Overview & Revenue Model

Company Description

Identitii Limited develops and licenses software products to regulated entities in Asia, Australia, and the United States. The company offers AUSTRAC, a reporting platform to reduce risk of non-compliance; and payment investigations. It also provides professional and maintenance services. The company was incorporated in 2014 and is based in Surry Hills, Australia.

How the Company Makes Money

Identitii Ltd. generates revenue primarily through the sale and licensing of its software solutions to financial institutions. The company's key revenue streams include subscription fees for its software-as-a-service (SaaS) platform and implementation fees for onboarding new clients. Identitii may also engage in strategic partnerships and collaborations with other technology firms and financial institutions to expand its market reach and enhance its product offerings. The company's earnings are influenced by its ability to acquire and retain clients, expand its product features, and comply with regulatory requirements within the financial services industry.

Identitii Ltd. Financial Statement Overview

Summary

Identitii Ltd. is experiencing significant challenges in profitability and cash flow management. Declining revenue and persistent losses underscore operational inefficiencies. The balance sheet shows moderate leverage, but declining equity and negative cash flows raise financial stability concerns.

Income Statement

Identitii Ltd. has faced declining revenue over the past year, with a drop from $1,363,063 to $748,292. The company is operating at a loss, indicated by negative net income and negative EBIT margins, suggesting challenges in managing operational costs relative to revenue. The gross profit margin is positive but does not translate into net profitability.

Balance Sheet

The company's financial leverage is moderate with a debt-to-equity ratio of 0.75. Stockholders' equity has decreased, pointing to potential concerns in financial stability. Identitii Ltd.'s equity ratio is approximately 38.3%, indicating a reasonable proportion of assets financed by equity, though overall financial strength appears to be weakening.

Cash Flow

The cash flow situation is concerning with negative operating and free cash flows, indicating that the company is not generating sufficient cash from its operations. The free cash flow to net income ratio is negative, suggesting cash flow challenges. However, there has been a significant inflow from financing activities, likely supporting the company’s liquidity in the short term.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
730.53K	748.29K	1.36M	1.46M	1.36M	941.59K
	Gross Profit
-944.24K	748.29K	-816.57K	-1.65M	-1.33M	-1.97M
	EBIT
-4.76M	-5.18M	-7.06M	-7.82M	-7.05M	-8.12M
	EBITDA
-4.71M	-4.33M	-5.52M	-5.80M	-5.81M	-7.01M
	Net Income Common Stockholders
-4.00M	-3.54M	-6.00M	-4.83M	-5.83M	-7.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10M	643.76K	1.29M	5.07M	4.49M	1.41M
	Total Assets
5.29M	3.08M	4.46M	8.82M	5.96M	3.36M
	Total Debt
888.82K	888.82K	980.00K	33.04K	33.04K	1.32M
	Net Debt
-1.21M	245.05K	-307.00K	-5.04M	-4.46M	-87.56K
	Total Liabilities
2.08M	1.90M	2.13M	1.39M	958.70K	2.30M
	Stockholders Equity
3.21M	1.18M	2.32M	7.43M	4.64M	1.06M
Cash Flow		Free Cash Flow
-4.54M	-3.73M	-5.27M	-6.08M	-4.80M	-4.77M
	Operating Cash Flow
-4.54M	-3.73M	-5.20M	-6.01M	-4.76M	-4.69M
	Investing Cash Flow
0.00	999.98K	12.39K	-567.45K	-45.14K	-66.05K
	Financing Cash Flow
4.63M	2.00M	1.36M	7.06M	7.89M	2.05M

Identitii Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
ID8	38 Underperform	AU$5.45M	―	-126.89%	―	-19.29%	41.67%
BRCHF		$266.54M	―	-133.28%	―	―	―
EMCHF		$256.58M	32.33	7.22%	―	―	―
LIFX		$4.80B	483.28	3.12%	―	―	―
SEN	44 Neutral	AU$29.81M	―	-31.58%	―	22.29%	64.62%

Identitii Ltd. Corporate Events

Identitii Ltd. Expands BNDRY Platform with New Agreements and Market Interest

Identitii Ltd. announced significant progress in its quarterly activity report, highlighting a new agreement with Cherry Hub to service over 600 hospitality venues, clubs, and hotels, which is expected to generate revenue in the latter half of the year. The company also signed three proof-of-concept agreements with major Australian payments companies, aiming to demonstrate the BNDRY platform’s ability to reduce compliance costs and complexity. Additionally, Identitii is seeing increased interest from ‘Tranche 2 entities’ that will soon need to comply with the AML/CTF Act, positioning the company for growth in this emerging market.

Identitii Ltd. Appoints Tim Phillipps as Executive Chair to Bolster Financial Crime Compliance

Identitii Ltd. has appointed financial crime expert Tim Phillipps as Executive Chair, a move expected to strengthen the company’s operations and governance. Phillipps, with extensive experience in financial crime prevention and regulatory frameworks, will play a crucial role in helping Identitii expand its services to non-bank regulated businesses, particularly in aiding Australian hospitality venues in meeting their AML/CTF obligations. His appointment is anticipated to enhance Identitii’s market position and provide significant value to its stakeholders.

Identitii Ltd. Issues 5 Million Unquoted Equity Securities

Identitii Ltd. announced the issuance of 5,000,000 unquoted equity securities, specifically options exercisable at $0.03 and expiring on April 8, 2027. This move is part of previously announced transactions and reflects the company’s strategic efforts to strengthen its financial position and enhance shareholder value.

Identitii Ltd. Issues Unquoted Equity Securities

Identitii Ltd. has announced the issuance of 56,250,003 unquoted equity securities in the form of options, exercisable at $0.03 and expiring on April 8, 2027. This issuance is part of previously announced transactions and is not intended to be quoted on the ASX, potentially impacting the company’s capital structure and providing opportunities for stakeholders involved in these transactions.

Identitii Ltd. Announces Quotation of New Securities on ASX

Identitii Ltd. has announced the quotation of 3,800,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) under the code ID8. This move is part of the company’s strategic efforts to strengthen its market position and enhance its financial flexibility, potentially impacting its operations and offering new opportunities for stakeholders.

Identitii Partners with Cherry Hub to Enhance AML/CTF Compliance in Hospitality Sector

Identitii Ltd. has announced a collaboration with Cherry Hub to deliver a tailored AML/CTF solution for Australia’s hospitality and gaming sector. This partnership aims to simplify compliance for over 600 venues by integrating Identitii’s BNDRY platform with Cherry Hub’s existing systems, reducing costs and complexity. This initiative comes at a crucial time as AUSTRAC increases its focus on these industries, and it also positions the solution to potentially serve over 100,000 additional entities in the future, including real estate agents and law firms.

Identitii Limited Successfully Passes All Resolutions at General Meeting

Identitii Limited announced that all resolutions proposed at their General Meeting were successfully passed by a poll. This outcome reflects shareholder support for the company’s strategic initiatives, potentially strengthening its position in the fintech sector by enabling further advancements in its data-sharing platform.