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AuthID: quarterlies, annuals, regulatory actions

authID sells $11M in stock to support expansion, traction in new industries
AuthID: quarterlies, annuals, regulatory actions
 

June 27, 2024 – authID has sold 1,464,965 shares of common stock at a purchase price of $7.50 (or $8.16 for authID directors) to raise funds for expanding its passwordless biometric authentication sales and operations. The company also plans to invest in gaining traction in the industries it picked up accounts in.

The industries authID refers to may include notaries, digital identity wallets or identity and access management (IAM). More hiring to authID’s customer success team is expected as well, to handle its growing number of clients.

The aggregate gross proceeds from the registered direct offering is $11 million, less agent fees and other expenses.

Madison Global Partners was the sole placement agent.

authID also sold a slightly higher volume of shares in November, raising roughly $9.4 million.

authID on steep path to recovery after last year’s ‘reboot’

May 23, 2024 – authID reported $160,000 in revenue from its selfie biometrics, passwordless authentication and identity verification in the first quarter of fiscal 2024, a big improvement from $40,000 in Q1 last year, following a mid-2023 company “reboot.”

Net loss was $3.1 million, or $0.32 per basic and diluted share, the company reports, following a Q1 2023 loss of $1.88 million and $0.56 per basic and diluted share.

CEO Rhon Daguro says the company has shifted its direct sales pipeline towards large enterprises in financial services, gig economy, payroll services, hospitality, and telecoms.

Soft revenue for authID belies strong future earnings

Mar 21, 2024 – AuthID is projecting confidence after a difficult fiscal 2024, with major increases in revenue on the way.

Revenue for the year ending December 31, 2023 was $0.02 million, down from $0.5 million in full-year 2022. Operating expenses decreased by just over 50 percent during the same period, for a net loss of $19.4 million, or $3.19 per share. Net loss for authID was $7.72 per share in the previous year.

The company had over $4 million in remaining performance obligations on contracts as of the end of its fiscal 2023, dramatically more than the year prior.

authID set out to reach book annual recurring revenue (bARR) of $3 million over a 12-month period, but reached its target in only 6 months, according to the announcement. The company hopes to reach $9 million bARR by the end of 2024.

“Our efforts in 2023 — the strengthening of our financial foundation, addition of new identity domain sales and engineering talent, and application of a proven sales discipline to our engagements that generated a robust sales pipeline — have positioned authID for growth in biometric identity verification and authentication,” says authID CEO Rhon Daguro.

More good financial news dribbles out of authID

January 17, 2024 – significantly revamped authID is again reporting encouraging non-GAAP stats. The biometric ID authentication software maker says its platform recorded a 12 times increased in year-over-year growth. Following efforts to regain its footing financially, executives say they again comply with Nasdaq listing rules.

The cumulative value of gross booked annual recurring revenue in the second, third and fourth quarters of fiscal 2023 is $3 million, according to the company, a 1,200 percent increase. Full GAAP data for the fourth quarter and year will wait until authID issues its 2023 annual report in March.

AuthID offers a favorable peek at Q4

Jan 4, 2024 – AuthID has published some non-GAAP financial data that paint its fourth quarter in a positive light. Complete GAAP information for the quarter ended December 31 will wait. Specifically, the biometric ID verification and authentication firm says it signed new customer contracts with gross booked annual recurring revenue valued at $1.7 million in the quarter. That is a 64 percent increase over the third quarter of the same year.

Many caveats come with the news. Comparing consecutive quarters can be misleading because some sales are seasonal. A big rise could be less important than a year-over-year rise. Or it could be significant is the preceding quarter usually is bigger than the following quarter. A complete non-GAAP year-over-year accounting is necessary.

And issuing non-GAAP numbers, while useful in analyzing factors that are unique or idiosyncratic to an industry, don’t match figures required that help investors gauge performance against the national business performance.

One of the new customers was an unnamed “international digital wallet” firm that serves a “network of banks, merchants and customers.”

$9.4M anticipated from authID share sale

Nov 22, 2023 – Biometric authentication firm authID says its booked annual recurring revenue is on a tear. The company also has agreed to the sale of 1.5 million common shares.

AuthID executives say that they closed $1 million in booked annual recurring revenue in the third quarter, a record for the company. Like most of its peers, the company is trying to claw its way out of distress.

In fact, they said that based on what it’s in the pipeline, they have doubled authID’s booked revenue target through the first quarter of fiscal 2024 – to $6 million. The target for all of fiscal 2024 is $9 million.

At the same time, executives said they had generated new cash by selling 1,574,990 common shares in a registered direct offering. That kind of vehicle is used to narrow the investors who will buy stock – typically accredited and institutional buyers.

Share price was set at $6 and existing shares on the Nasdaq were trading at $7.20 at about noon November 22.

The sale, expected to close November 22, is expected to generate $9.4 million before customary deal fees and expenses.

Q3 losses shrink for AuthID

November 10, 2023 – AuthID is narrowing its losses, but closed the third quarter, ended September 30, with a notable quarter-over-quarter increase in revenue.

Executives at the biometric ID authentication company reported an unaudited net loss of $3.7 million, or $0.47 per basic and diluted share, on revenue of $43,000. This compares with a loss of $6.3 million, $2, on revenue of $30,000 for the same period last year.

For the first nine months of fiscal 2023, the company reported a loss of $16.1 million, $3.05, on revenue of $118,000. This compares with a loss of $18.2 million, $5.80, on revenue of $116,000 for the same period last year.

AuthID reports modest revenues

Aug 15, 2023 – ID verification and authentication software maker reported a net loss for the second quarter of $10.6 million, or $2.15 per basic and diluted shares for continuing operations, on revenue of $37,142, compared to a loss of $6.6 million, $2.06, on revenue of $66,409.

For the first half of the fiscal year, AuthID reported a loss of $16 million, $3.91, on revenue of $74,998, compared to a loss of $11.8 million, $3.80, on revenue of $231,461.

AuthID reaches for daylight with a big reverse stock split

Jul 10, 2023 – Nasdaq-listed identity firm authID has opted for a 1-for-8 reverse split of its common stock. The company is trying to stave off delisting with the move. Read more here.

AuthID raises $8.2M in share sale, renegotiates $8.9M of debt

May 29, 2023 – AuthID has raised $8.2 million in its latest share offering. The deal saw AuthID sell 17.9 million shares of its common stock at a price per share of $0.458, or $0.50 if the purchaser was a director of authID.

The gross proceeds from the offering were estimated to be approximately $7.3 million before deducting fees and expenses. Read more here.

authID reports mixed results

May 16, 2023 – The company, based in the U.S. state of Colorado, reported a net loss of $5.2 million, or $0.21, on revenue of $37,800 during the first quarter, ended March 31, compared to a net loss of $5.3 million, or $0.22, on revenue of $165,000 for the same quarter a year ago. Read more here.

AuthID gets another lifeline with some serious strings attached

Mar 13, 2023 – A long-time investor in authID has cleaned house at the biometric authentication provider, including the CEO, who one year ago pulled authID’s finger out of the wringer when an investment deal crumbled. Read more here.

Net loss reported in tough third quarter

authID has reported a net loss in the third quarter of $6.3 million, or 25 cents per share, on revenue of $30,000. A year ago, authID reported a net loss of $5.2 million, or 22 cents, on revenue of $169,000.

More financial and industry news about AuthID here.

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