The Future Is Great For Ipsidy Inc (OTCMKTS:IDGS)

A bearish run has been rocking Ipsidy Inc (OTCMKTS:IDGS) over the past six months.During this period that has lasted about five months, their share price fell from $0.48 to $0.11 at present.The period has thus been dubbed one of the worst trading periods for the technology company in its trading history.This fall can be seen in the charts below: IDGS Daily ChartDespite this fall, we are still bullish about this stock.The plummeting share prices are generally associated with their earnings performance over the recent past given that they had fallen in some critical parts.We, however, are here to present a different case, one that alludes to the positive future prospects of the company as well as to the growth potential of both the company as well as the industry within which it operates.We will further assess its competitors and how they have been performing during this period and conclude by checking their financial performance over this period.However, let us introduce the company to first time readers before going into this analysis.Ipsidy: A TourThe company which was founded in 2009 has its current headquarter in Long Beach, New York.Identity is at the core of Ipsidy's mission.Ipsidy prides itself in being a provider of secure, biometric identification, identity management and electronic transaction processing services. They are a technology company that plays in the security space. This is accomplished through its investment in the digital space specifically, in the pre-transaction verification of identity as well as embedded identity verification in different electronic platforms.They have provided a number of solutions to different players around the world.Be it the provision of a security system for the US Dept. of Homeland Security/TSA for US maritime and aviation ports or ensuring a ‘one citizen, one vote’ through voter identification and validation in Zambia or ensuring an enhanced and extended electronic ticketing and fare collection network in Bogota, Colombia; the company keeps ensuring that they are well placed to provide the best identity-based solutions worldwide.Their main product under development is identity transaction. The company believes that the future of transactions will lie with the initiator of this transaction therefore the security of this transaction will be tied to the identity of the initiator.This can be achieved through the initiator’s ability to prove their identity to their device before initiating a transaction.The company’s Chairman and CEO, Philip Bleck said:

"Ipsidy is redefining the identity transaction… We are focused on building out our identity transaction platform, in order to provide our customers with reimagined solutions to enable people to authenticate their identity to their own device, before commencing a transaction.We intend to facilitate the processing of diverse electronic transactions, be they payments, votes, or physical or digital access, embedded with the participant's identity."

Source:With such a move on the market, the company is setting itself up for a strong entry into a different space with solutions that are adoptable in the finance and banking space. Moreover, the adoption of mobile devices and other digital platforms globally is leading to such technology companies being able to reach their target market directly without the need for intermediaries such as financial institutions.Given the above, IDGS will in the long run, be a major player in this space if the management can see this program through to the end.Industry AnalysisThe Forbes magazine adoption of biometrics is creating a booming industry for biometric vendors, with estimates of the market size expected to increase from $10.74 billion in 2015 to $32.73 billion by 2022.Source:The industry which has attracted almost all players from other industries such as banking and finance, defense and security, consumer electronics, transport and logistics as well as healthcare is own a growth trajectory as described above and given the growth in these named industries, is not about to slow down on this growth.With a significant number of major players within this industry being located within Europe and Asia (Japan), the growth prospects of such an entity operating within the United States are vast and limitless. Moreover, with the over $20 billion expected growth in this space, IDGS is well positioned for growth in its market share and revenues if management acts in a strategic manner.FinancialsThe revenues generated by IDGS rose over the period ending June 2017 with three and six-month periods was $0.6 million and $1.1 million compared to $0.5 million and $0.8 million for the three and six months in 2016.Moreover, their liabilities fell by over $21 million while equity increased by $24.7 million over the period between December 2016 and June 2017 to close the year at $4 million and $11.4 million respectively.This represents quite some success akin to this company.This success, however, was hampered by a net loss which stood at $2.8 million and $12.5 million compared to a net loss in the second quarter of 2016 of $0.8 million and net income of $6.9 million in the first half of 2016 (net profit due to the change in a derivative liability).This was not all bad as the net loss fell by a near $10 million. As such, management seems to be working at ensuring the costs are reduced significantly. The retention of this strategy will be vital in ensuring that they achieve their targets long into the future.Despite the numbers above not being great, they signify the strides taken IDGS in ensuring that they are a success. Such strides will ensure that they are forces within the industry in the long run.ConclusionIDGS represents one of the expected success stories in the industry. They are positioned within an ever-growing industry and this will ensure that they keep growing to the pleasure of their shareholders as well as new investors in the company.We will be updating our subscribers as soon as we know more. For the latest updates on IDGS, sign up below!Disclosure: We have no position in IDGS and have not been compensated for this article.