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): 2.18
• Revenue Growth: -19.29%
• EPS Growth: 41.67%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 90
• 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): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.20
• 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 Ltd. (ID8) is a technology company that operates in the financial services sector. The company specializes in providing innovative software solutions that enhance financial transaction reporting and compliance. Identitii's core product, Overlay+, is designed to help financial institutions improve the transparency, security, and efficiency of their data sharing processes, particularly in relation to regulatory reporting requirements.

How the Company Makes Money

Identitii Ltd. generates revenue primarily through the sale of its software solutions to financial institutions. The company's revenue model includes licensing fees for its Overlay+ platform, which financial institutions use to streamline and improve their compliance reporting processes. Identitii may also earn money through service fees for implementing and customizing their solutions to meet specific client needs. Additionally, partnerships with other technology firms and financial institutions can contribute to its revenue by expanding its market reach and integrating its solutions with other platforms.

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
EBITDA	-4.71M	-4.33M	-5.52M	-5.80M	-5.81M	-7.01M
Net Income	-4.00M	-3.54M	-6.00M	-4.83M	-5.83M	-7.07M
Balance Sheet
Total Assets	5.29M	3.08M	4.46M	8.82M	5.96M	3.36M
Cash, Cash Equivalents and Short-Term Investments	2.10M	643.76K	1.29M	5.07M	4.49M	1.41M
Total Debt	888.82K	888.82K	980.00K	33.04K	33.04K	1.32M
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 *	63 Neutral	$33.85B	5.90	-11.67%	1.83%	5.25%	-18.21%
AR9	51 Neutral	AU$61.07M	―	-45.31%	―	-28.80%	32.87%
CF1	45 Neutral	AU$13.71M	―	-37.21%	―	-23.80%	-33.62%
AER	40 Underperform	AU$5.74M	―	-21.13%	―	22.88%	24.59%
SIS	39 Underperform	AU$5.36M	―		―	-8.86%	38.46%
ID8	38 Underperform	AU$5.45M	―	-126.89%	―	-19.29%	41.67%
1TT	31 Underperform	AU$2.03M	―		―	―	―

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.