Biometric signature verification company Communication Intelligence Corporation (CIC) has closed a follow-on round of funding with a number of new and existing investors to provide additional working capital.

The supplemental financing totalled US$800,000 in gross proceeds from the issuance of Series C Participating Convertible Preferred Stock and warrants. The closing, which took place on 31 March 2011, represents a follow-on investment on the same terms and conditions as the company’s Series C Preferred financing that closed on 31 December 2010.

“We are pleased to have completed a second closing of Series C Preferred,” says Philip Sassower, CIC’s chairman and chief executive officer. “While we do not have an immediate need for capital, this follow-on offering is expected to provide us with additional runway to demonstrate progress and demonstrates investors’ positive reaction to the significant changes implemented at CIC over the past several months. This additional funding brings the total amount raised between December and March 31 to approximately US$3 million, which, coupled with the recapitalisation that was implemented in August 2010, positions CIC for improved performance in the coming quarters and beyond, as our new management team executes our enhanced go-to-market initiatives.”

The news follows the company’s release of its 2010 results. It announced total revenue of US$851,000 for the year, a drop of 56% compared with total revenue of US$1,936,000 in the previous year. Speaking when the results were announced at the end of March 2011, Mr Sassower said: “We are disappointed with CIC’s performance and are taking aggressive remedial actions. These include the company’s recapitalisation to present a stronger, debt-free balance sheet, the injection of additional funds to support the company’s operations, the instalment of a new executive management team with a more relevant set of skills, and a significant change in CIC’s product and go-to-market strategies. In particular, we have mandated a greater emphasis on Tier 2 and Tier 3 customers, as well as tighter integration with our existing and prospective partners, and are modifying and growing our technology portfolio to offer products and services that are more suitable to our new target markets. We believe that these actions will build a proper foundation for a successful turnaround of our business.”