Intellicheck Mobilisa, Inc. (NYSEMKT:IDN) has been steadily advancing prior to its earning release coming up on March 22nd. The share price is attempting to break its prior 52-week high which is highly likely if the trend continues and volume continues to be significantly above average. IDN has gained 50% since the beginning of March and is showing no signs of slowing down given recent developments and likely an improvement in YoY finance performance.
IDN has recently announced that it has filed a lawsuit against Honeywell for patent infringement. The company is alleging the Honeywell has infringed on several of its patents and is seeking a permanent injunction against Honeywell’s products, treble damages, pre-post judgement interest fees, attorney fees, and costs for the unauthorized use of patented technology.
Any settlement will likely send shares through the stratosphere. Given the amount of patents that IDN has and the revenues of Honeywell which is $85 billion Company by its market valuation, Honeywell will likely either do one of two things. It will either fight the case in court or seek to settle outside of court. It will all depend on the cost analysis versus settling. A case like this could cost the company over $5 million just in legal fees alone and that doesn’t even count the probability the company may lose and have to pay treble damages. Honeywell could settle for a small sum of money in the tens of millions to make this issue go away. For a small market cap that IDN has of only $15 million, this could double or triple its value overnight.
The infringed technology that IDN is alleging seems to be around sale of products and software that can read, analyze and verify encoded data in barcodes on government-issued IDs like driver licenses and passports as well as for the purposes of age-related activity. As the CEO states, “Our focus on and significant investment in innovation has been key to our achievements in the development of patented, leading identification authentication technology solutions. We are committed to taking every necessary action to protect our investments and achievements and to assure our shareholders get the value they deserve.”
IDN has a large IP portfolio consisting of over 25 patents that related to identification technology. Its identity technology solutions support customers in the national defense, law enforcement, retail, hospitality and financial markets. Its products scan, authenticate and analyze components of identity documents including driver licenses, military identification cards and other government forms of identification containing magnetic stripe, barcode and smart chip information.
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IDN is currently trading at a $15 million market valuation. IDN is about to release earnings report for full year which will give us a clearer picture on the company’s financial performance. Hopefully there will be new developments regarding the legal actions against Honeywell. Any positive news regarding the infrignment case will likely see IDN shares advance quickly and much higher than it is trading today.
We will be updating on IDN when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with IDN.
Disclosure: we hold no position in IDN either long or short at the publication of this article and we have not been compensated for this article.