PORT TOWNSEND — Intellicheck Mobilisa Inc. is continuing to increase its workforce after being awarded a software-license agreement to deploy security software at a luxury retailer’s stores nationwide — and in the face of an ongoing Securities & Exchange Commission investigation.
As part of its contract with the retail chain, Mobilisa cannot divulge the retailer’s identity, President and CEO Nelson Ludlow of Port Townsend said this week, adding that customer nondisclosure is common among company clients.
“They just don’t want to tell competitors what they are doing,” Ludlow said.
“They don’t want people to know, and we can live with that.”
In December, Mobilisa won a $671,962 wireless contract from the Jefferson County Public Utility District and the Northwest Open Access Network to build a wireless broadband network that is expected to be up and running by August.
The company will set up 30 wireless stations in schools, public buildings and public safety locations.
Hire two more
As of Monday, the company had 40 employees and wants to hire two more “mainly because we are trying to grow the company,” Ludlow said.
None of the Port Townsend-based company’s current employees is under investigation by the SEC, Ludlow said.
“The company is not under investigation,” he added.
“We are being 100 percent cooperative.”
Mobilisa reported losses of $381,296 on revenue of $2.1 million Nov. 8.
The company notified the SEC of suspicious activity in its stock Nov. 13.
On the same day the SEC was notified, former President and CEO Steve Williams was “separated from the company” in a unanimous vote of the board of directors, said Ludlow, a co-founder of Mobilisa.
“The word we are using is separated,” he said, adding that the action was taken “for a variety of reasons.”
Ludlow would not elaborate.
He would not comment on whether Williams is under investigation and did not know when the SEC will complete its review.
“My expectation is that these things take months,” Ludlow said.
Ludlow, chairman of the board of directors and the company’s chief scientist, succeeded Williams as president and CEO.
Less than a week earlier, the company had reported disappointing earnings.