Financial Performance - As of September 30, 2025, the company reported an accumulated deficit of approximately $187.7 million and net revenue of approximately $1.6 million for the nine months ended September 30, 2025, compared to $0.7 million for the same period in 2024[94][102]. - The company incurred a net loss of approximately $13.9 million for the nine months ended September 30, 2025, compared to a net loss of approximately $9.7 million for the same period in 2024[94][102]. - Adjusted EBITDA for the nine months ended September 30, 2025, was approximately $(11.4) million, compared to $(7.8) million for the same period in 2024[100]. Expenses - General and administrative expenses increased by approximately $1.2 million and $3.5 million for the three and nine months ended September 30, 2025, respectively, driven by employee-related expenses and credit loss expenses[103]. - Research and development expenses rose by approximately $0.2 million and $1.5 million for the three and nine months ended September 30, 2025, respectively, due to investments in product capabilities[104]. Cash Flow and Financing - As of September 30, 2025, the company has approximately $4.9 million in cash and $4.6 million in working capital[108]. - Cash used in operating activities for the nine months ended September 30, 2025, was approximately $11.8 million, compared to $8.5 million for the same period in 2024[108]. - Cash used in investing activities for the nine months ended September 30, 2025, was approximately $2,000, a decrease from $18,000 in the same period in 2024[110]. - Cash provided by financing activities for the nine months ended September 30, 2025, included approximately $8.2 million from the sale of common stock, net of offering costs[110]. - The company raised approximately $10.0 million from the sale of common stock in the nine months ended September 30, 2024[111]. - The company will need to raise additional funds to support operations and investments for its growth-oriented business plan[112]. Market and Economic Conditions - The company faces challenges due to economic uncertainty and volatility, which may impact spending on identity verification and security methods[90]. - The global economy is experiencing political and economic uncertainty, impacting spending in the technology sector and potentially affecting revenue growth[114]. Product and Technology - The company's PrivacyKey solution offers a false match rate of 1:1 billion and a false rejection rate of 0.3%[85]. - The company’s biometric identity verification platform provides a response time of less than 700ms, enhancing user experience[88]. Other Information - The company made estimated concessions of $0.7 million during the three months ended September 30, 2025, primarily related to one customer contract[109]. - The company has no off-balance sheet arrangements that could materially affect its financial condition[115]. - Recent accounting policies critical to understanding financial results are discussed in Note 1 of the financial statements[116].

Core Insights - authID has reported financial and operational results for Q3 2025, highlighting a transformational year with a focus on large enterprise accounts and partnerships with respected companies in various sectors [3][5][7]. Financial Summary - Gross revenue for Q3 2025 was $0.6 million, up from $0.2 million in Q3 2024. However, net revenue was negative $(0.1) million after accounting for one-time concessions, compared to $0.2 million a year ago [5][7]. - Operating expenses increased to $5.1 million in Q3 2025 from $3.8 million in Q3 2024, primarily due to increased headcount and investments in sales and R&D [8]. - The net loss for Q3 2025 was $5.2 million, or $0.38 per share, compared to a loss of $3.4 million, or $0.31 per share in the previous year [9][10]. - Adjusted EBITDA loss was $4.1 million for Q3 2025, compared to a loss of $2.9 million in Q3 2024 [11]. Business Highlights - The company signed a full production agreement with a top 20 global retailer in Europe to secure its identity verification and password reset system, indicating strong validation of authID's technology [6]. - Launched Identity Exchange (IDX™) in collaboration with NESIC, enhancing accountability and trust in the use of Agentic AI technology within enterprise networks [6]. - Entered into agreements with MajorKey Technologies and an international bank to integrate authID's identity verification and authentication solutions, expanding its market reach [6][15]. Annual Recurring Revenue (ARR) Metrics - The gross Booked Annual Recurring Revenue (bARR) for Q3 2025 was $0.2 million, down from $1.2 million a year ago, with a net bARR of negative $6.8 million [13][14]. - The Annual Recurring Revenue (ARR) as of September 30, 2025, was $1.7 million, compared to $1.0 million in Q3 2024 [14]. Remaining Performance Obligation (RPO) - The Remaining Performance Obligation (RPO) as of September 30, 2025, was $3.6 million, slightly down from $3.8 million a year ago, with expectations to recognize the full amount over the life of the contracts [12].

Core Insights - authID will report its financial results for Q3 2025 on November 12, 2025, after market close [1] - A webcast will be hosted by the CEO and CFO at 5:00 p.m. ET to discuss the results and provide a corporate update [1] Company Overview - authID is a provider of biometric identity verification and authentication solutions, ensuring enterprises "Know Who's Behind the Device™" for customer and employee logins [4] - The company's IDX platform secures the workforce and provides accountability for AI agents, delivering biometric identity processing in 700ms with a false match rate of 1-to-1-billion [4] - authID emphasizes privacy protection and regulatory compliance by not storing any biometric data [4]

Core Insights - authID has been selected by one of the largest retailers in Europe to implement its PrivacyKey biometric technology for identity verification and password reset systems, enhancing security and user experience [1][3] Company Strategy - The recent deployment aligns with authID's strategy to secure contracts with large enterprise customers, as discussed by CEO Rhon Daguro during the August 14, 2025 earnings call [2] - The integration of authID's technology with the retailer's existing IT infrastructure has led to strong adoption among users, demonstrating the effectiveness of the company's market positioning [3] Product Performance - Early operational results from the retailer indicate a significant reduction in failed password reset attempts, improved onboarding and verification rates, and decreased reliance on manual helpdesk interventions, which enhances user outcomes and reduces support costs [4] Partnerships and Future Innovations - authID is expanding its partnership with a large biometric hardware provider through an OEM arrangement for its Proof and PrivacyKey products, indicating ongoing growth and collaboration in the biometric identity verification space [5] - The company aims to integrate its IDX solution for securing AI efforts, enhancing the security and efficiency of its customer base in the long term [6] Company Overview - authID provides a patented biometric identity platform that ensures secure verification of users, preventing cybercriminal activities and ensuring regulatory compliance by not storing biometric data [7]

Core Viewpoint - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1]. Group 1: Oversold Stocks - Endava PLC (DAVA) has an RSI of 29.8, with a stock price decline of approximately 34% over the past month, reaching a 52-week low of $9.12 [8]. - Neonode Inc (NEON) has an RSI of 23.5, with a significant stock price drop of around 84% in the last month, hitting a 52-week low of $3.80 [9]. - authID Inc (AUID) has an RSI of 29.54, with its stock falling about 36% over the past month, reaching a 52-week low of $2.65 [9]. Group 2: Company Performance Insights - Endava's CEO noted that over half of their employees are now using AI in projects, indicating progress towards becoming AI-native, despite a cautious outlook due to volatile operating conditions [8]. - Neonode anticipates $15-20 million from a patent settlement with Samsung Electronics, which may influence future performance [9]. - authID reported its highest quarterly revenue in history, showcasing effective execution of its growth strategy, despite a recent stock decline [9].

Core Viewpoint - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1]. Group 1: Oversold Stocks - Endava PLC (DAVA) has an RSI of 29.8, with a stock price decline of approximately 34% over the past month, reaching a 52-week low of $9.12 [8]. - Neonode Inc (NEON) has an RSI of 23.5, with a significant stock price drop of around 84% in the last month, hitting a 52-week low of $3.80 [9]. - authID Inc (AUID) has an RSI of 29.54, with a stock price decrease of about 36% over the past month, reaching a 52-week low of $2.65 [9]. Group 2: Company Performance Insights - Endava's CEO noted that over half of their employees are now using AI in projects, indicating progress towards becoming AI-native, despite a cautious outlook due to volatile operating conditions [8]. - Neonode anticipates $15-20 million from a patent settlement with Samsung Electronics, which may influence future stock performance [9]. - authID reported its highest quarterly revenue in history, showcasing effective execution of its growth strategy, although the stock has still faced a decline [9].

Core Insights - A strategic partnership between authID and MajorKey Technologies aims to enhance biometric identity verification within the Microsoft Entra Suite, addressing the rise of AI-driven fraud [1][2][3] Company Overview - authID is a provider of biometric identity verification solutions, offering a patented platform that ensures secure user identification without storing biometric data, achieving a false match rate of 1 in 1 billion [4] - MajorKey Technologies specializes in identity security, providing advisory and integration services for Microsoft Entra Suite, and has a strong partnership network including CyberArk and SailPoint [5] Industry Context - The partnership comes at a critical time as 17% of hiring managers have reported encountering candidates using deepfake technology in interviews, with projections indicating that by 2028, 25% of job candidate profiles could be fake [2] - The evolving threat landscape necessitates advanced identity verification solutions to combat fraudulent hiring processes and insider threats [3][4] Technology Features - authID's Proof technology offers biometric identity verification in 700 milliseconds, capable of detecting deepfake attempts in real-time, thus ensuring compliance and a seamless user experience [3][4]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 increased significantly to $1,400,000 compared to $300,000 last year and $300,000 in Q1 2025, driven by the go-live of several contracts signed earlier in 2024 [21][22] - Operating expenses for Q2 were $5,900,000 compared to $3,600,000 a year ago and $4,700,000 last quarter, primarily due to increased headcount investment in sales and R&D [22] - Net loss for the quarter was $4,400,000, with net loss per share at $0.33 compared to $0.34 a year ago and $0.40 last quarter [23] - Adjusted EBITDA loss was $3,400,000 for Q2 compared with a $2,500,000 loss for the same period last year [25] - Annual recurring revenue (ARR) as of Q2 is $5,800,000 compared to $1,100,000 of ARR as of Q2 2024 [25] Business Line Data and Key Metrics Changes - The company launched the IDX platform in late July, aimed at eliminating identity fraud within the supply chain workforce [9] - A major Fortune Global 500 customer in the UK went live with the company's privacy key product after a successful pilot [10] - The partnership with Proof, a large identity fraud platform, is expected to start generating revenue in Q3 2025 [12][14] Market Data and Key Metrics Changes - The identity management market is estimated to reach $61 billion by 2032, with the company now able to participate in the entire market space due to the IDX platform [19] - Remaining Performance Obligation (RPO) as of June 30, 2025, was $13,800,000, a decrease of approximately $100,000 over the prior quarter [23] Company Strategy and Development Direction - The company emphasizes the integration of facial biometrics into identity management strategies to combat fraud [8] - The partnership with NEC aims to demonstrate interoperability of reusable identity across countries without changes to existing systems [11] - The company is focusing on performance-based production-level pilots to showcase capabilities to prospects, which shortens the time to revenue [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to collect on customer contracts despite a provision for estimated credit loss [22] - The company is optimistic about the growth trajectory and expects to meet its goal of $18 million in bookings for 2025 [30] - Management acknowledged the need for ongoing innovation and improvements to meet customer demands [72] Other Important Information - The company has added 2,200,000 shares from a recent fundraising, with a cash balance of $8,300,000 as of June 30, 2025 [24] - The IDX platform is built on a fast-adopted standard, enhancing the company's visibility and credibility in the market [17] Q&A Session Summary Question: Can you talk about the deferred revenue and its nature? - The deferred revenue of $1,200,000 came from invoices issued based on customer contracts that have not yet been recognized as revenue, and it is recurring in nature [32][34] Question: When will the company start collecting revenue from the Proof partnership? - The company is about to take a customer live shortly, which will allow for revenue recognition once transactions are billed [46][49] Question: What is the status of the Indian contract signed last November? - The company is still ramping up with the Indian contract but has started recognizing revenue as they went live with the customer [55][58] Question: Will the company still collect the $3,300,000 from the Indian contract this year? - The company expects to recognize the full $3,300,000 commitment by the end of the first contract year, despite delays in the go-live [60][64] Question: Can you provide details on the NEC deal and its revenue implications? - Currently, the company cannot disclose specific booking estimates or revenue terms for the NEC deal as they are still finalizing details [65] Question: Is the company comfortable with the $18 million bookings target for the year? - Management confirmed they are still on track to meet the $18 million bookings target for 2025 [67] Question: How is the company managing the transition from pilots to revenue? - The company has shifted to using production-level pilots, which allows for quicker transitions to revenue compared to traditional proof of concept methods [81][84]

[Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) [Executive Summary](index=1&type=section&id=Executive%20Summary) authID achieved record quarterly revenue of **$1.4 million** in Q2 2025, though net and adjusted EBITDA losses expanded due to higher operating expenses, with the CEO noting strategic advancements and IDX launch Executive Summary Financial Highlights | Metric | Q2 2025 ($) | Q2 2024 ($) | Change ($) | | :------------------- | :---------- | :---------- | :----- | | **Total Revenue** | $1.4 million | $0.3 million | +$1.1 million | | **Operating Expenses** | $5.9 million | $3.6 million | +$2.3 million | | **Net Loss** | $4.5 million | $3.3 million | +$1.2 million | | **Loss Per Share** | $0.33 | $0.34 | -$0.01 | | **Adjusted EBITDA Loss** | $3.4 million | $2.5 million | +$0.9 million | | **Booked Annual Recurring Revenue (bARR)** | $2.2 million | $0.6 million | +$1.6 million | - CEO Rhon Daguro stated the company achieved its highest quarterly revenue, demonstrating effective execution of growth plans, and highlighted team dedication, technology enhancements, and market expansion progress[3](index=3&type=chunk) - The company recently launched IDX, a significant advancement in the identity industry, substantially expanding its total addressable market[3](index=3&type=chunk) [Recent Business and Operational Highlights](index=2&type=section&id=Recent%20Business%20and%20Operational%20Highlights) authID made significant business and operational strides in Q2 2025, including the IDX launch with NEC, a paid production pilot with a UK Fortune 500 company, and an agreement with Prove, alongside PrivacyKeyTM enhancements and new board appointments - Partnership with NEC, the world's largest biometric hardware provider, for IDX launch significantly expanded the company's total addressable market in the identity management industry[12](index=12&type=chunk) - Secured a paid live production pilot agreement with a UK Fortune Global 500 company, anticipated to convert into a long-term agreement upon completion[12](index=12&type=chunk) - Signed an agreement with Prove, one of the world's largest identity fraud platforms, with the first joint customer launch imminent[12](index=12&type=chunk) - Enhanced PrivacyKeyTM's one-to-many search capability, launched in production pilots, offering the market's fastest speed and highest accuracy[12](index=12&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) [Second Quarter 2025 Financial Performance](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Performance) In Q2 2025, authID's total revenue surged to **$1.4 million** from **$0.3 million** year-over-year, but operating expenses also rose to **$5.9 million**, leading to an expanded net loss of **$4.4 million** and an adjusted EBITDA loss of **$3.4 million** Second Quarter 2025 Financial Performance Summary | Metric | Q2 2025 ($) | Q2 2024 ($) | Change ($) | | :------------------- | :---------- | :---------- | :----- | | **Total Revenue** | $1.4 million | $0.3 million | +$1.1 million | | **Operating Expenses** | $5.9 million | $3.6 million | +$2.3 million | | **Net Loss** | $4.4 million | $3.3 million | +$1.1 million | | **Loss Per Share** | $0.33 | $0.34 | -$0.01 | | **Adjusted EBITDA Loss** | $3.4 million | $2.5 million | +$0.9 million | [Six Months Ended June 30, 2025 Financial Performance](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Financial%20Performance) For the six months ended June 30, 2025, authID's total revenue grew to **$1.7 million** from **$0.4 million**, but operating expenses increased to **$10.6 million** due to higher headcount and R&D investments, resulting in an **$8.7 million** net loss and **$7.3 million** adjusted EBITDA loss Six Months Ended June 30, 2025 Financial Performance Summary | Metric | H1 2025 ($) | H1 2024 ($) | Change ($) | | :------------------- | :---------- | :---------- | :----- | | **Total Revenue** | $1.7 million | $0.4 million | +$1.3 million | | **Operating Expenses** | $10.6 million | $6.9 million | +$3.7 million | | **Net Loss** | $8.7 million | $6.3 million | +$2.4 million | | **Loss Per Share** | $0.72 | $0.67 | +$0.05 | | **Adjusted EBITDA Loss** | $7.3 million | $4.9 million | +$2.4 million | - Operating expenses increased primarily due to higher headcount, continued investments in sales and R&D, and an **$0.8 million** increase in estimated credit loss reserves[7](index=7&type=chunk)[10](index=10&type=chunk) [Remaining Performance Obligation (RPO)](index=2&type=section&id=Remaining%20Performance%20Obligation%20%28RPO%29) As of June 30, 2025, authID's Remaining Performance Obligation (RPO) significantly increased to **$13.8 million**, comprising **$1.2 million** in deferred revenue and **$12.6 million** in other non-cancelable contract amounts, up from **$4.2 million** in the prior year Remaining Performance Obligation (RPO) Summary | Metric | June 30, 2025 ($) | June 30, 2024 ($) | Change ($) | | :------------------- | :-------------- | :-------------- | :----- | | **Remaining Performance Obligation (RPO)** | $13.8 million | $4.2 million | +$9.6 million | | **Deferred Revenue** | $1.2 million | - | - | | **Other Non-Cancelable Contract Amounts** | $12.6 million | - | - | - The company expects to recognize the **$13.8 million** RPO over the entire contract lifecycle, typically a 3-year period[11](index=11&type=chunk) [Booked Annual Recurring Revenue (bARR) and Annual Recurring Revenue (ARR)](index=3&type=section&id=Booked%20Annual%20Recurring%20Revenue%20%28bARR%29%20and%20Annual%20Recurring%20Revenue%20%28ARR%29) authID's total Booked Annual Recurring Revenue (bARR) reached **$2.2 million** in Q2 2025, a significant increase from **$0.63 million** year-over-year, including **$0.9 million** cARR and **$1.2 million** UAC, while Annual Recurring Revenue (ARR) grew to **$5.8 million** as of June 30, 2025 Booked and Annual Recurring Revenue Summary | Metric | Q2 2025 ($) | Q2 2024 ($) | Change ($) | | :------------------- | :---------- | :---------- | :----- | | **Total bARR** | $2.2 million | $0.63 million | +$1.57 million | | **Net bARR** | $1.9 million | $0.63 million | +$1.27 million | | **cARR (Q2 2025)** | $0.9 million | - | - | | **UAC (Q2 2025)** | $1.2 million | - | - | | **ARR (as of June 30, 2025)** | $5.8 million | $1.1 million | +$4.7 million | - Total bARR for the first half of 2025 was **$2.2 million**, up from **$0.73 million** in the prior year, with net bARR at **$1.8 million**, also up from **$0.73 million**[14](index=14&type=chunk) - Net bARR reflects contract amounts removed from previously reported bARR due to delays in certain customer production go-lives and usage ramp-ups[15](index=15&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) authID will host a conference call and webcast on August 14, 2025, at 5:00 PM ET, led by CEO Rhon Daguro and CFO Ed Sellitto, to discuss financial results and provide company updates, with registration required for dial-in details and webcast access available on the investor relations website - The conference call and webcast are scheduled for August 14, 2025, at 5:00 PM ET[17](index=17&type=chunk) - authID CEO Rhon Daguro and CFO Ed Sellitto will host to discuss financial results and company updates[17](index=17&type=chunk) - Participants must register to receive dial-in details, and the webcast will be available on the company's "Events & Presentations" page[18](index=18&type=chunk) [About authID Inc.](index=4&type=section&id=About%20authID%20Inc.) authID Inc. (Nasdaq: AUID) is a leading provider of biometric identity verification and authentication solutions, ensuring enterprises "Know Who's Behind the Device™" with its easy-to-integrate, patented biometric identity platform, PrivacyKey, designed to prevent fraud and eliminate password risks - authID provides biometric identity verification and authentication solutions, ensuring enterprises "Know Who's Behind the Device™"[20](index=20&type=chunk) - Its patented biometric identity platform completes biometric identity verification in **700 milliseconds** and biometric authentication in **25 milliseconds**, offering fast, accurate, and user-friendly account recovery[20](index=20&type=chunk) - The PrivacyKey solution offers a 1-in-1 billion false match rate without storing biometric data, effectively preventing fraud, deepfakes, and account takeover[20](index=20&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future operations, growth, sales, potential contracts, bARR, ARR, cash flow, cash position, and financial condition, based on assumptions and subject to various risks including customer attraction, service implementation, competition, regulatory changes, international trade, and macroeconomic conditions - Forward-looking statements cover future operating results, growth and sales, potential contract signings, bARR, ARR, cash flow, cash position, and financial condition[21](index=21&type=chunk) - Actual results may differ materially due to various risk factors, including the company's ability to attract and retain customers, successful service implementation, effective competition, changes in laws and regulations, international trade conditions, and economic and political conditions[21](index=21&type=chunk) - Forward-looking statements are made as of the date of release and should not be relied upon as guidance for future performance, with no obligation for the company to update or revise them[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted EBITDA](index=5&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP financial measure provided by the company to offer useful insights into its cyclical performance and core business activities when used with GAAP results, which management believes aids analysts, investors, and other stakeholders in evaluating comparable companies and assessing operational performance - Adjusted EBITDA is a non-GAAP financial measure management deems useful for evaluating the company's core business activities and operational performance[23](index=23&type=chunk) - Adjusted EBITDA reconciles GAAP net income (loss) by excluding interest expense, interest income, income tax provision, depreciation and amortization, stock-based compensation expense, and other items management believes affect the comparability of operating results[24](index=24&type=chunk) Reconciliation of Loss from Continuing Operations to Adjusted EBITDA (Non-GAAP) | | Three Months Ended | | Six Months Ended | | :--------------------------------------- | :---------- | :---------- | :---------- | :---------- | | | June 30, 2025 ($) | June 30, 2024 ($) | June 30, 2025 ($) | June 30, 2024 ($) | | **Loss from Continuing Operations** | $ (4,384,779) | $ (3,261,241) | $ (8,724,246) | $ (6,318,818) | | **Add-back items:** | | | | | | Net interest expense | 171 | 10,369 | 12,883 | 23,507 | | Interest income | (86,846) | (73,957) | (138,390) | (182,877) | | Severance | - | 8,638 | - | 14,251 | | Depreciation and amortization | 30,249 | 44,004 | 60,441 | 87,412 | | Stock-based compensation | 1,078,201 | 725,704 | 1,532,540 | 1,448,675 | | **Adjusted EBITDA from Continuing Operations (Non-GAAP)** | $ (3,363,004) | $ (2,546,483) | $ (7,256,772) | $ (4,927,850) | [Booked Annual Recurring Revenue (bARR) and Annual Recurring Revenue (ARR)](index=6&type=section&id=Booked%20Annual%20Recurring%20Revenue%20%28bARR%29%20and%20Annual%20Recurring%20Revenue%20%28ARR%29) bARR (Booked Annual Recurring Revenue) is defined as the annual recurring revenue the company expects to derive from signed orders within 18 months of contract signing, comprising Committed Annual Recurring Revenue (cARR) and estimated Usage Above Contract (UAC), while ARR (Annual Recurring Revenue) is defined as recurring revenue recognized under GAAP for the last three months of the relevant period multiplied by four, with both non-GAAP metrics indicating future revenue growth trends but not serving as predictions - bARR is defined as the annual recurring revenue the company expects to derive from signed orders within 18 months of contract signing, composed of Committed Annual Recurring Revenue (cARR) and estimated Usage Above Contract (UAC)[28](index=28&type=chunk) - ARR is defined as recurring revenue recognized under GAAP for the last three months of the relevant period multiplied by four[29](index=29&type=chunk) - bARR and ARR should not be considered forecasts of future revenue but rather indicators of revenue trend direction, as actual GAAP revenue may differ significantly from these metrics[31](index=31&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) authID's condensed consolidated statements of operations show significant net revenue growth for both Q2 and the first half of 2025, but total operating expenses also increased substantially, leading to expanded losses from continuing operations and net losses across both periods Summary of Condensed Consolidated Statements of Operations | Metric | Q2 2025 ($) | Q2 2024 ($) | H1 2025 ($) | H1 2024 ($) | | :----------------------- | :---------- | :---------- | :---------- | :---------- | | **Net Revenue** | $1,444,599 | $280,438 | $1,740,855 | $437,816 | | **Total Operating Expenses** | $5,916,053 | $3,605,267 | $10,590,608 | $6,916,004 | | **Loss from Continuing Operations** | $(4,471,454) | $(3,324,829) | $(8,849,753) | $(6,478,188) | | **Net Loss** | $(4,384,779) | $(3,261,241) | $(8,724,246) | $(6,318,818) | | **Net Loss Per Share** | $(0.33) | $(0.34) | $(0.72) | $(0.67) | [Balance Sheets](index=8&type=section&id=Balance%20Sheets) As of June 30, 2025, authID's total assets increased to **$15.8 million** from **$14.5 million** at December 31, 2024, driven by higher cash, accounts receivable, and deferred contract costs, while total liabilities slightly decreased and total stockholders' equity rose to **$13.0 million** Summary of Condensed Consolidated Balance Sheets | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :----------------------- | :-------------- | :-------------- | | **Total Assets** | $15,813,514 | $14,471,377 | | **Cash** | $8,300,280 | $8,471,561 | | **Accounts Receivable, Net** | $1,079,776 | $97,897 | | **Contract Assets** | $564,070 | $426,859 | | **Total Liabilities** | $2,819,790 | $2,956,188 | | **Total Stockholders' Equity** | $12,993,724 | $11,515,189 | [Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, authID's net cash outflow from operating activities increased to **$8.39 million** from **$5.75 million** year-over-year, primarily due to expanded net loss and changes in working capital, with net cash outflow from investing activities at **$1,700**, and net cash inflow from financing activities at **$8.22 million** mainly from common stock sales, resulting in an ending cash balance of **$8.30 million** Summary of Condensed Consolidated Statements of Cash Flows | Metric | H1 2025 ($) | H1 2024 ($) | | :----------------------- | :---------- | :---------- | | **Net Cash Outflow from Operating Activities** | $(8,388,822) | $(5,749,651) | | **Net Cash Outflow from Investing Activities** | $(1,700) | $(15,582) | | **Net Cash Inflow from Financing Activities** | $8,219,327 | $10,001,398 | | **Net Change in Cash** | $(171,281) | $4,230,294 | | **Cash at End of Period** | $8,300,280 | $14,407,393 | - Increased cash outflow from operating activities was mainly due to an expanded net loss, higher accounts receivable, and increased deferred revenue[37](index=37&type=chunk) - Cash inflow from financing activities primarily resulted from net proceeds of **$8.46 million** from common stock sales, partially offset by **$0.245 million** in convertible note repayments[37](index=37&type=chunk)

Financial Performance - The company achieved its largest revenue quarter, reaching $1.44 million[9] - GAAP revenue for the first six months of 2025 was $1.74 million[34], compared to $0.89 million for the full year 2024[40] - The company's net loss for the six months ended June 30, 2025, was $6.3 million[34] - Adjusted EBITDA loss for the six months ended June 30, 2025, was $4.9 million[39] - Total Remaining Performance Obligation (RPO) was $13.77 million as of Q2 2025[35] Key Metrics - Booked Annual Recurring Revenue (bARR) for the six months ended June 30, 2025, was $2.16 million[39] - Annual Recurring Revenue (ARR) as of Q2 2025 was $1.1 million[39] - Cash balance was $8.3 million[37] Product and Technology - PrivacyKey achieved a 98% user acceptance rate on the first attempt[26, 28] - Authentication speed for PrivacyKey is 22ms[28] - The company launched PrivacyKey One to Many Search[25] Strategic Initiatives - The company is focused on accelerating time to go-live and time to revenue[23]