Company Overview - authID Inc. is a leading provider of biometric identity verification and authentication solutions, ensuring enterprises "Know Who's Behind the Device™" for every customer or employee login and transaction [2] - The company offers a patented biometric identity platform that powers biometric identity proofing in 700 milliseconds, biometric authentication in 25 milliseconds, and account recovery with a fast, accurate, user-friendly experience [2] - authID's PrivacyKey™ solution boasts a 1-to-1-billion false match rate while storing no biometric data, effectively stopping fraud at onboarding, blocking deepfakes, preventing account takeover, and eliminating password risks and costs [2] Recent Developments - The Annual Meeting of Shareholders for authID was held via webcast on June 26, 2025, where all nominated directors were elected and all proposed resolutions were adopted [1]

Core Insights - authID and Prove have formed a strategic partnership to combat AI-generated deepfake fraud, enhancing security for enterprise customers against synthetic identities and impersonation attacks [2][3][6] Group 1: Partnership Overview - The partnership aims to leverage advanced biometric technologies to address the growing threat of deepfake fraud, ensuring the integrity of digital identities [2][3] - Prove's CEO emphasized the need for secure, privacy-first solutions to combat the evolving nature of fraud, highlighting authID's PrivacyKey as a critical component [4] Group 2: Technology Integration - authID's biometric technologies, including Proof, Verified, and PrivacyKey, will be integrated into Prove's platform to enhance identity proofing and fraud prevention capabilities [5][7] - The partnership combines authID's industry-leading accuracy with Prove's trusted identity verification, aiming to create frictionless and secure identity experiences in the digital economy [7] Group 3: Market Impact - The collaboration is positioned as a validation of authID's technology and strategic direction, with the potential to set new standards for secure identity verification globally [6] - As Prove expands its global presence, the partnership is expected to provide the scalability and security necessary to address modern digital transformation challenges [6]

Core Insights - authID announced a new integration with Ping Identity to enhance identity proofing and biometric authentication, aiming to eliminate passwords and reduce account takeover fraud [1][2][3] Company Overview - authID provides a patented biometric identity platform that ensures enterprises "Know Who's Behind the Device™" for every login and transaction, with biometric identity proofing in 700 milliseconds and authentication in 25 milliseconds [5] - The company’s PrivacyKey™ solution boasts a false match rate of 1-to-1 billion while storing no biometric data, effectively preventing fraud during onboarding and blocking deepfakes [5] Integration Details - The integration of authID's Verified platform and PrivacyKey™ with PingOne DaVinci allows organizations to seamlessly incorporate biometrics into their onboarding and authentication workflows for both workforce and consumer applications [2][3] - This collaboration aims to improve user experience by eliminating the vulnerabilities associated with passwords and enhancing identity assurance [2][3] Strategic Goals - The CEO of authID emphasized the mission to eradicate identity fraud through secure, frictionless biometric authentication at scale, with the integration accelerating the transition to passwordless security for enterprise customers [3] - Ping Identity's commitment to expanding its technology partner ecosystem is highlighted, aiming to deliver better customer experiences through seamless orchestration [4]

Core Viewpoint - authID is enhancing its Board of Directors by nominating four highly qualified executives to drive growth and value creation for shareholders, with the 2025 Annual Meeting scheduled for June 26, 2025 [2][4]. Group 1: New Board Nominees - The new nominees include Stephen J. Garchik, Ram Menghani, Nicholas Shevelyov, and Shrikrishna Venkataraman, each bringing extensive experience in technology, cybersecurity, and business management [6][10][11][12][13]. - Garchik, as the largest shareholder, has been associated with authID for approximately 10 years and brings valuable business management and operational insights [10]. - Menghani has over 30 years of experience in unified communications and digital transformation, having partnered with major tech companies [11]. - Shevelyov has 30 years of cybersecurity experience and has held key roles in leading cybersecurity initiatives at Silicon Valley Bank [12]. - Venkataraman has a strong track record in leading IPOs and corporate transformations, with experience in finance and cybersecurity governance [13]. Group 2: Company Strategy and Vision - The CEO of authID emphasized the importance of the new nominees in supporting the company's mission to deliver market-leading biometric identity authentication solutions in an AI-driven world [4]. - The company aims to leverage biometrics as a foundational element in enhancing cybersecurity and user privacy as digital transformation accelerates [4]. - authID's biometric identity platform is designed to manage identities securely across borders and verticals while ensuring compliance with international laws [14]. Group 3: Annual Meeting Details - The 2025 Annual Meeting will be held virtually, with proposals to elect directors, ratify auditors, and increase shares allocated to the 2024 Equity Incentive Plan [5][7]. - Stockholders will receive materials related to the meeting via their brokers and are encouraged to vote by proxy [9].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $300,000, an increase from $160,000 in the same period last year [19] - Operating expenses for Q1 were $4,700,000 compared to $3,300,000 a year ago, primarily due to increased headcount investments in sales and R&D [19] - Net loss for the quarter was $4,300,000, compared to a net loss of $3,100,000 for the same period last year [19] - Adjusted EBITDA loss was $3,900,000 for Q1, compared to a loss of $2,400,000 for the same period last year [21] - Remaining performance obligation (RPO) as of March 31, 2025, was $13,850,000, a decrease of $410,000 from the prior quarter but an increase from $4,030,000 a year ago [20] Business Line Data and Key Metrics Changes - The company is focusing on large enterprise deals and partnerships, with significant progress reported in contract negotiations with Fortune 500 companies [10][11] - A paid live production trial agreement was signed with a global Fortune 100 retailer to test the product [11] - The company is also in the final stages of contract negotiations with a global Fortune 100 biometric hardware provider [11] Market Data and Key Metrics Changes - The company reported a strong pipeline, generating $13,000,000 in new pipeline in Q1 and approaching $9,000,000 in Q2 [51] - The demand for biometric solutions is increasing due to rising cyber threats and the need for enhanced security measures [8][52] Company Strategy and Development Direction - The company aims to become a leader in the biometric authentication market, focusing on speed, accuracy, privacy, and interoperability [13][14] - Strategic investments have been made in privacy key technology, allowing biometric authentication without storing biometric data [13] - The company is expanding into the public sector and exploring opportunities in smart cities and banking sectors in India and South America [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth prospects, citing a strong pipeline and positive customer feedback [10][16] - The company anticipates signing new customers and achieving significant growth towards its $18,000,000 bookings target for 2025 [18][22] Other Important Information - The company completed two capital raises in April and May, securing nearly $9,000,000 to improve its balance sheet and broaden its investor base [17] - The company was recognized as the best ID management platform in 2025 by FinTech Breakthrough Awards [15] Q&A Session Summary Question: When will the company start seeing leverage from partnerships? - Management indicated that they are already benefiting from partnerships and expect bookings to come as they invest in channel partners [29][30] Question: Why have expenses been high compared to revenue? - Management explained that current expenses are driven by investments in headcount for sales and R&D, which are necessary for future growth [33][34] Question: How many Fortune 500 clients are needed to meet the $18,000,000 bookings target? - Management stated that signing four to five large deals could potentially cover the entire bookings target for the year [41][42] Question: What is the current demand for biometrics? - Management noted a rise in demand, with a significant increase in pipeline generation, driven by the introduction of privacy key technology [51][52]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $300,000, compared to $160,000 in the same period last year, representing an increase of 87.5% [16] - Operating expenses for Q1 were $4,700,000, up from $3,300,000 a year ago and down from $4,900,000 in the previous quarter [16] - Net loss for the quarter was $4,300,000, compared to a net loss of $3,100,000 for the same period last year [16] - Adjusted EBITDA loss was $3,900,000 for Q1, compared to a loss of $2,400,000 for the same period last year [18] - Remaining performance obligation (RPO) was $13,850,000, a decrease of $410,000 from the prior quarter but an increase from $4,030,000 a year ago [17] Business Line Data and Key Metrics Changes - The company is focusing on large enterprise deals and partnerships, with significant progress reported in contract negotiations with Fortune 500 companies [8][10] - A paid live production trial agreement was signed with a global Fortune 100 retailer, indicating a move towards long-term contracts [10] - The company is also in the final stages of contract negotiations with a major identity fraud platform [10] Market Data and Key Metrics Changes - The company reported generating $13,000,000 in new pipeline in Q1, with expectations to build on this in Q2 [46] - The demand for biometric solutions is increasing, particularly due to rising concerns over cyber attacks and fraud [6][7] Company Strategy and Development Direction - The company aims to become a leader in the biometric authentication market, focusing on speed, accuracy, privacy, and interoperability [12][13] - Strategic investments have been made in privacy key technology, allowing biometric authentication without storing biometric data [12] - The company is expanding into public sector opportunities and smart city projects in South America and India [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $18,000,000 bookings target for 2025, despite delays in the sales process [19][16] - The macroeconomic environment is seen as dynamic, with potential for increased demand for biometric solutions due to rising fraud [6][7] Other Important Information - The company completed two capital raises in April and May, securing nearly $9,000,000 to improve its balance sheet and broaden its investor base [15] - The company received recognition as the best ID management platform in 2025 by FinTech Breakthrough Awards [14] Q&A Session Summary Question: When will the company start seeing leverage from partnerships? - Management indicated that they are already benefiting from partnerships and expect bookings to follow as they invest in channel partners [25][26] Question: Why are expenses high compared to revenue? - Management explained that current expenses are driven by investments in headcount for sales and R&D, which are necessary for future growth [29][30] Question: How many Fortune 500 clients are needed to meet the $18,000,000 goal? - Management stated that signing four to five large deals could potentially meet the target, with some deals large enough to cover the entire amount [36][37][40]

Financial Performance - Total revenue for Q1 2025 increased to $0.30 million, up 87.5% from $0.16 million in Q1 2024[5] - Net loss for Q1 2025 was $4.3 million, or $0.40 per share, compared to a net loss of $3.1 million, or $0.32 per share in Q1 2024[5] - Adjusted EBITDA loss for Q1 2025 was $3.9 million, compared to a loss of $2.4 million in Q1 2024, driven by increased investments[9] - Net loss for the three months ended March 31, 2025, was $4,339,467, compared to a net loss of $3,057,577 for the same period in 2024, indicating an increase in losses of about 42%[33] - Net cash flows from operating activities for the three months ended March 31, 2025, were $(5,358,306), compared to $(2,947,528) for the same period in 2024, indicating a worsening cash flow situation[33] Operating Expenses - Operating expenses for Q1 2025 were $4.7 million, compared to $3.3 million in Q1 2024, primarily due to increased headcount investment in sales and R&D[7] - The company incurred stock-based compensation expenses of $454,339 for the three months ended March 31, 2025, down from $722,971 in the same period of 2024, a decrease of about 37.1%[33] Assets and Liabilities - Total current assets decreased from $10,074,427 as of December 31, 2024, to $5,601,296 as of March 31, 2025, representing a decline of approximately 44.8%[31] - Total liabilities remained stable at $2,339,901 as of March 31, 2025, compared to $2,956,188 as of December 31, 2024, reflecting a decrease of about 20.9%[31] - Stockholders' equity decreased from $11,515,189 as of December 31, 2024, to $7,629,853 as of March 31, 2025, a decline of approximately 33.5%[31] Revenue and Bookings - Remaining Performance Obligation (RPO) as of March 31, 2025, was $13.85 million, significantly up from $4.03 million as of March 31, 2024[10] - Gross Booked Annual Recurring Revenue (bARR) for Q1 2025 was $0.01 million, down from $0.10 million in Q1 2024[11] - The company expects to close multiple Fortune 500 and multinational customers in 2025, aiming for an $18 million bookings target[5] Capital and Financing - authID secured nearly $9 million in capital through two financing rounds to enhance its balance sheet and support growth initiatives[4] - The company repaid $245,000 in convertible notes during the three months ended March 31, 2025, indicating ongoing debt management efforts[33] - Cash paid for interest increased from $9,023 in the three months ended March 31, 2024, to $13,137 in the same period of 2025, an increase of approximately 45.5%[33] Strategic Initiatives - The company is advancing partnerships with a Global Fortune 500 biometric hardware provider and a major identity fraud platform, nearing contract negotiations[8] - authID launched efforts into the Public Sector, providing a reusable identity platform for government workforces[8] Deferred Revenue - Deferred revenue increased significantly from $215,237 as of December 31, 2024, to $1,011,448 as of March 31, 2025, representing an increase of approximately 369.5%[31]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40747 authID Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Securities r ...

Core Insights - authID reported a total revenue of $0.30 million for Q1 2025, an increase from $0.16 million in Q1 2024, indicating growth in the biometric identity verification market [6][9] - The company experienced an operating loss of $4.3 million in Q1 2025, compared to a loss of $3.1 million in the same period last year, reflecting increased operating expenses primarily due to headcount investments [10][11] - authID aims to achieve $18 million in bookings for 2025 and is in advanced discussions with multiple Fortune 500 clients [5][6] Financial Performance - Total revenue for Q1 2025 was $0.30 million, up from $0.16 million in Q1 2024 [6][9] - Operating expenses rose to $4.7 million in Q1 2025 from $3.3 million in Q1 2024, driven by increased investments in sales and R&D [9][11] - The net loss for Q1 2025 was $4.3 million, or $0.40 per share, compared to a loss of $3.1 million, or $0.32 per share in Q1 2024 [10][30] Business Developments - The company secured nearly $9 million in capital through two financing rounds to strengthen its balance sheet and expand its investor base [4][7] - authID signed a paid live production trial agreement with a Global Fortune 500 prospect, aiming for a longer-term contract upon successful completion [7] - The company is advancing integration with a blockchain-based data privacy platform and exploring opportunities in the Indian banking sector [7][8] Market Position and Recognition - authID was awarded "Best ID Management Platform" at the 2025 FinTech Breakthrough Awards, highlighting its innovative biometric identity verification technology [8] - The company is focusing on large enterprise and channel OEM segments to drive growth in the biometric authentication market [3][5] Remaining Performance Obligations - As of March 31, 2025, the Remaining Performance Obligation (RPO) was $13.85 million, significantly up from $4.03 million a year ago, indicating strong future revenue potential [12]

Core Viewpoint - authID Inc. announced a definitive agreement for a registered direct offering to sell 373,060 shares of common stock at a price of $5.60 per share, aiming to raise approximately $2,100,000 in gross proceeds before expenses [1][2]. Group 1: Offering Details - The closing of the registered direct offering occurred on May 7, 2025, with all closing conditions satisfied [2]. - Dominari Securities LLC and Madison Global Partners, LLC acted as Co-Placement Agents for the offering [2]. - The shares were offered under a shelf registration statement filed with the SEC, which was declared effective on December 13, 2024 [3]. Group 2: Use of Proceeds - The net proceeds from the offering are intended for working capital and general corporate purposes [2]. Group 3: Company Overview - authID Inc. provides biometric identity verification and authentication solutions, ensuring enterprises "Know Who's Behind the Device™" for customer and employee logins [5]. - The company’s biometric identity platform offers rapid identity proofing in 700 milliseconds and authentication in 25 milliseconds, with a false match rate of 1 in 1 billion [5].