Digital ID and biometric market updates: Liquid Avatar, SuperCom, authID, RealNetworks
Unexpected positives for Liquid Avatar are tempered by doubts surrounding authID.ai’s biometrics business, which the company refutes. RealNetworks sees continued growth of its AI products while SuperCom chairman pursues his share buy up program.
AuthID.ai shareholders conduct Say on Pay vote, mixed Q4
AuthID.ai shareholders joining the webcast Annual Meeting of Shareholders voted for the first time on an advisory ‘say on pay’ vote. This was approved, as was the frequency of future votes. Little more information has emerged from the meeting other than the re-election of the directors nominated.
The meeting came just two weeks after the 16 December 2021 White Diamond Research report alleging that the company has “misled investors” over it being a pure-play SaaS company even though none of its revenue are from its SaaS product or biometric identity verification, reports Seeking Alpha, referring to White Diamond Research’s paper as a short report.
Law firm Robbins LLP is currently investigating Ipsidy Inc (which rebranded as authID.ai) on behalf of shareholders. Robbins states that it is investigating officers and directors “for breaches of fiduciary duties and violations of securities laws. Ipsidy claims to operate an Identity as a Service (IDaaS) platform that delivers a suite of secure, mobile, and biometric identity solutions worldwide.”
“[N]one of its revenues have been from its SaaS product … and 70 percent are from low tech, legacy businesses,” Robbins LLP quotes the White Diamond Research Report as saying, that its revenues “aren’t from its identity verification application” and that its “REAL businesses are selling plastic cards in South Africa and leasing bus ticket kiosks in Colombia.”
In a statement issued to Biometric Update, an authID.ai spokesperson said: “We do not have any information regarding an investigation, nor do we believe there is any basis for such investigation. We remain committed to executing our growth strategy to address the emerging opportunity for facial biometric authentication technology for enterprise and consumer fraud protection.”
The fourth quarter of 2021 had some notable positives for the firm. It was granted a patent by the USPTO for a system which authenticates biometric identity through credit-card like routing and saw a slew of new hires and promotions.
“Since the new management team came on board in June 2021, we have focused on driving product innovation and development across our biometric authentication portfolio,” noted the AuthID.ai spokesperson’s statement. “We have recently announced the award of a U.S. patent for our facial biometrics routing technology and the launch of our Verified Cloud Connect solution with Auth0.
“Additionally, we significantly strengthened our bench of industry experts in sales, product, and technology to guide our innovation roadmap and build our sales pipeline to the benefit of our shareholders, customers, and employees.”
Liquid Avatar commercializes, C$1M revenue for Q4 2021
Digital identity, blockchain and (increasingly) metaverse firm Liquid Avatar Technologies saw gross revenues before cost of sales of C$1 million (US$773,000) in the final quarter of 2021 as it updated products and experienced an earlier than anticipated rise in commercial activities. It believes gross margins will be similar to other those of other digital services companies.
The Canadian firm launched a new version of its Liquid Avatar Mobile App; enhanced its Liquid Avatar Verifiable Credentials Ecosystem; began the development of a digital identity verifications platform, Passmate, using payment rail technologies and initiated activation plans for a U.S.-based network card program.
It also launched its metaverse program, Aftermath Islands, through Oasis Digital Studios Limited a wholly owned subsidiary of Liquid Avatar, which acquired a 50 percent interest in the program which, as of 1 January 2022, was operated by Barbados-based Aftermath Islands Metaverse Limited.
Digital identity in the metaverse will be a focus for Liquid Avatar in 2022.
“We have started to witness online acceptance of digital identity programs,” says David Lucatch, CEO of Liquid Avatar Technologies, “which are at the core of all our solutions, and both avatar and metaverse activities are gaining traction, creating opportunities for early revenue there, as the industry embraces the future of Web 3.0. Our goal is to continue to create value for all our stakeholders.”
RealNetworks sees 124 percent annual growth for SAFR by end Q3
The financial results as of the end of Q3 2021 for RealNetworks show continued growth for its SAFR AI product with year-on-year growth of 124 percent and 12 percent for KONTXT, although the rate of growth slowed from 282 and 15 percent growth respectively as of the end of Q2 2021.
Revenue was down 2 percent on Q2 at $14.3 million with a net loss attributable to the firm of $7.7 million (adjusted EBITDA loss of $2.7 million) and still no debt.
“In the third quarter we continued to make solid progress in our AI-based businesses, SAFR and KONTXT,” says Rob Glaser, founder, chairman, and chief executive officer of RealNetworks.
“My Number Card in Japan is a great example of customers deploying SAFR for important mission-critical uses in 2021.”
SuperCom chairman buys half a million shares in the company
Chairman of the SuperCom board, Arie Trabelsi, has notified the company that he purchased 512,000 shares in the firm on the open market as part of his plan to buy up to 3 million shares, listed on NASDAQ as SPCB.
“I believe the SPCB current stock price levels do not reflect the high intrinsic value of the company. This recent 512,000 SPCB shares purchase, and my purchase program provides me the ability to opportunistically acquire SuperCom shares and underscores my ongoing belief in the Company,” comments Arie Trabelsi.