*This is not financial advice. All content should be considered opinionated. We are not responsible for any of your gains and losses. I am neither a licensed nor registered financial expert. Please see a financial advisor before making investment decisions.

*This is not financial advice. All content should be considered opinionated. We are not responsible for any of your gains and losses. I am neither a licensed nor registered financial expert. Please see a financial advisor before making investment decisions.

Identity theft and fraud are rampant in the Digital Age. Each year, retailers lose billions of dollars because of fraud. Also, consumers lose billions of dollars every year because of identity theft. To make things worse, some consumers even go to jail for things that they've never even done. 

Look at the image below and read the data.

Identity theft and fraud are two things that have resulted in billions of dollars lost for businesses and consumers. The problem is very big and needs a lot of attention if ever people are going to stop it. To capitalize on that problem, some people would invest in individual cybersecurity companies while others choose to invest in a cybersecurity ETF. 

Meanwhile, I've found an intriguing small-cap company that directly deals with this issue. Introducing Intellicheck (NASDAQ: IDN), the industry leader in real-time identity authentication and validation solutions. 

Besides stopping identity theft, Intellicheck also helps businesses identify and restrict under-aged customers from being able to buy products that they're not allowed to have access to legally. The process of automating these services allows businesses to focus on other things. 

For those of you wondering how the company is doing, here are their Q1 2020 highlights.

While revenue growth quarter after quarter is low, at least their annual revenue has gone up triple digits. Revenue growth year over year is aggressively high, making this stock appetizing for growth investors. 

You might be worried about SaaS revenue being down but interestingly, they've been able to achieve revenue growth despite that. How? Well, they've actually in the middle of transforming their business model. 

Instead of having retailers pay a monthly subscription (SaaS) for using the software, Intellicheck decided to give retailers the option of going for a "pay per scan" business model. Basically, Intellicheck charges the retailer for the amount of business that they've conducted rather than charge them a monthly fee. 

Doing this will give retailers flexibility whenever they experience bad times and allows Intellicheck to capitalize on a retailer's success. In other words, they get to benefit from a growth in scan volumes from a retailer. 

Plus, many clients seem to prefer that new business model!

The transition to a "pay per scan" wasn't easy but as you can see on their quarterly revenue chart, revenue has increased tremendously thanks to this new business model. Just look at how parabolic the company's revenue is looking!

Now, some of you might be wondering if the company will be exhibiting diseconomies of scale while achieving record revenue growth. I will say that thankfully it's not a case of diseconomies of scale. 

As revenue grows, the company's profit grow with it. This shows that the company's business model is healthy and sustainable. A rare phenomenon in the tech scene. 

You might be wondering, what makes Intellicheck different from other players in that space? Well, I hope this slide answers your questions. 

Its efficacy shows that their technology is legit. The government is using it to bust underaged drivers that are driving under the influence. Retailers that use the technology have shown to benefit from it. And these stories are from the early stages of the company. More stories like these will come as more and more retailers and governments use them.

Also, the technology is easy to adopt. Because no new hardware is required, it's easy for retailers and institutions to integrate it into their Point-of-Sale systems, check readers, and a no-integration web product. Plus, companies don't need to spend a lot of money just to implement, lowering the barriers of usage even more. 

To give an idea on the business model transformation from being Saas to a "pay per scan" model, read the slide below to learn more.

Overall, not only does Intellicheck earn more from retailers but that clients have benefited tremendously and that more retailers adopted their technology. Because the "pay per scan" model makes it cheaper for retailers to adopt in their stores, the technology has been able to roll out in a lot more stores. Also, the efficacy of the technology convinces other law enforcement agencies around the US to adopt it.  

To sum up the reasons for why Intellicheck is growing fast, here's a slide that sums it all. 

Some of you (or many of you) were imaging this technology being rolled out in stores. Because of that, you might be wondering how the company will do if ever most retailers shut their doors and switch to eCommerce full time. 

Well, according to their COVID-19 update, Intellicheck continues to find ways of adapting to the changing business environment. By making their technology available to eCommerce platforms (and having them on the "pay per scan" model), Intellicheck will continue to make money off of retailers. 

And if you think about it, if retailers are able to integrate Intellicheck's technology into their online stores, then Intellicheck will be able to capitalize on the growing eCommerce industry. 

So far, I've shown you the revenue growth, profitability, and now the technology has benefited many retailers and law enforcement agencies. Now, it's time to show the financials. 

One of the biggest takeaways from the chart is that the company is debt-free. This is big!

Also, they're net income positive, they have really high gross margins and seemed to have finally turned a profit according to their EBITDA. 

While investing is risky, having no debt, and showing profitability reduce the risks of investing in this company. 

Now, to summarize the reason for investing in Intellicheck:

If this doesn't make you bullish on the company, then I'm curious about what your issues are with the company. 

Intellicheck is looking to become this decade's growth star.