Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was approximately $0.2 million, compared to $0.07 million a year ago, while total revenue for the full year was $0.89 million, up from $0.19 million in 2023, meeting the expected range of $800,000 to $900,000 [40] - Operating expenses for Q4 were $4.9 million, compared to $3.3 million last year, and for the full year, operating expenses were $15.6 million, up from $10.9 million in 2023 [41] - Net loss from continuing operations for Q4 was $4.6 million, compared to a net loss of $3.2 million a year ago, while the full year net loss was $14.3 million, an improvement from $19.6 million in the previous year [42] - Adjusted EBITDA loss was $4.1 million for Q4, compared to a $2.7 million loss for the same period last year, and for the full year, adjusted EBITDA loss was $11.9 million, up from $8.7 million [46] Business Line Data and Key Metrics Changes - Booked Annual Recurring Revenue (ARR) for 2024 was $9 million, achieving the targeted 3x growth from the previous year [14] - Remaining Performance Obligation (RPO) increased by 3.5% from $4 million to over $14 million, significantly exceeding expectations [15][44] - The gross amount of Booked Annual Recurring Revenue (BAR) signed in Q4 2024 was $7.13 million, up from $1.67 million a year ago, while full year gross BAR was $9.01 million, up from $2.94 million in 2023 [48] Market Data and Key Metrics Changes - The company is positioned to close multiple Fortune 500 and multinational customers in 2025, with an open pipeline of over 3x the $18 million in bookings targeted [16] - The company has expanded its partner ecosystem, including partnerships with TurboCheck, Imperial Technologies, and Zendesk, to leverage mutual market opportunities [18][19] Company Strategy and Development Direction - The company aims to achieve a five-year T2D3 growth target, focusing on aggressive growth and positioning itself as a dominant player in the biometric authentication market [13][10] - The strategy includes refining software to be enterprise-ready and centering the organization around 300 core accounts divided into fast high-growth companies, large enterprises, and channel partners [11] - The introduction of Privacy Key technology aims to enhance compliance and privacy in biometric authentication, addressing significant market concerns [28][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by advanced AI technologies, such as deepfakes, and emphasized the importance of biometric solutions in combating these threats [24] - The management expressed confidence in closing large enterprise deals in 2025, citing improvements in speed, accuracy, and compliance as key factors for adoption [78][82] Other Important Information - The company announced a significant $10 million contract in Q4 with a next-generation AI partner in India, marking the largest deal in its history [17] - The company is working with a major biometric hardware provider to showcase a reusable identity solution between the United States and Japan [21][22] Q&A Session Summary Question: What are customers looking for in sales conversations? - Customers prioritize speed, accuracy, and compliance when evaluating biometric solutions, with authID Inc. meeting these criteria effectively [57][63] Question: How do Privacy Key and ADIA impact customer perception? - The ADIA standard allows for trust between different financial institutions regarding identity verification, enhancing customer confidence in using biometrics [66][70] Question: What gives confidence in closing large enterprise deals? - The company has addressed key blockers such as speed, accuracy, and privacy, leading to positive responses in late-stage sales cycles with major enterprises [78][82] Question: What is the typical contract length and signing process? - Contracts typically last two to three years, with a signing process that can take six to nine months due to the need for multiple approvals within large enterprises [85][92] Question: What progress is being made with channel partners? - The company is actively engaging with OEM partners and resellers, which is expected to drive larger deals and enhance market reach [98][103]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was approximately $0.2 million, compared to $0.07 million a year ago, while total revenue for the full year was $0.89 million, up from $0.19 million in 2023 [40] - Operating expenses for Q4 were $4.9 million, compared to $3.3 million last year, and for the full year, operating expenses were $15.6 million, up from $10.9 million in 2023 [41] - Net loss from continuing operations for Q4 was $4.6 million, compared to a net loss of $3.2 million a year ago, while the full year net loss was $14.3 million, an improvement from $19.6 million in the previous year [42][43] - Remaining performance obligation (RPO) increased to $14.26 million, up from approximately $4 million a year ago [44] Business Line Data and Key Metrics Changes - Booked annual recurring revenue (BAR) for Q4 was $7.13 million, up from $1.67 million a year ago, and for the full year, gross BAR was $9.01 million, compared to $2.94 million in 2023 [48][49] - The company achieved a 3x growth in booked ARR, reaching $9 million for 2024 [14] Market Data and Key Metrics Changes - The company is positioned to close multiple Fortune 500 and multinational customers in 2025, with an open pipeline of over 3x the $18 million in bookings targeted [16] - The largest deal in the company's history was closed in Q4, a $10 million contract over three years with a next-generation AI partner in India [17] Company Strategy and Development Direction - The company aims to achieve a five-year T2D3 growth target, aiming for $100 million in ARR by tripling growth in the first two years and doubling in the subsequent years [13] - The strategy includes focusing on three core account categories: fast high-growth companies, large enterprise companies, and channel partners [11] - The company is actively working on partnerships to enhance its market reach, including a partnership with Zendesk to integrate its services into their customer support software [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by advances in artificial intelligence, particularly in identity verification, and emphasized the importance of biometric solutions in combating sophisticated fraud attacks [24] - The management expressed confidence in closing large enterprise deals, citing improvements in speed, accuracy, and compliance as key factors for adoption [78][81] Other Important Information - The company introduced Privacy Key, a technology that allows biometric authentication without storing any biometric data, addressing compliance concerns [28] - The company is a member of the Accountable Digital Identity Association (ADIA), which aims to advance the adoption of reusable digital identities [19] Q&A Session Summary Question: What are customers looking for in sales conversations? - Customers prioritize speed, accuracy, and compliance when evaluating biometric solutions, with authID Inc. meeting these criteria effectively [57][65] Question: How do customers view the integration of Privacy Key and ADIA? - Customers see potential in using ADIA standards for trust between different financial institutions, enhancing identity verification processes [66][70] Question: What gives confidence in closing large enterprise deals? - The company has addressed key blockers such as speed, accuracy, and compliance, and is in late stages of sales cycles with major enterprises [78][82] Question: What is the typical contract length and signing process for large enterprises? - Contracts typically last two to three years, with a signing process that can take six to nine months due to the need for multiple approvals [85][92] Question: What progress is being made with channel partners? - The company is actively engaging with OEM partners and resellers, which is expected to lead to larger deals [98][103]

Financial Results and Estimates - authID Inc. reported preliminary estimated unaudited results for the twelve months ended December 31, 2024, with significant variations expected from these estimates due to customary year-end closing and audit procedures[8] - The Company emphasizes that its final results may differ materially from preliminary estimates, which should not be viewed as a substitute for complete financial statements prepared in accordance with GAAP[8] - authID Inc. has not independently reviewed the preliminary estimates, and no warranty is made regarding the completeness or accuracy of the information presented[9] - The report does not include specific numerical results or performance metrics, focusing instead on qualitative assessments and forward-looking statements[11] Forward-Looking Statements - Forward-looking statements include expectations regarding future operations, growth, and revenue guidance for 2024, with a focus on booked Annual Recurring Revenue (bARR) and its components[11] - The Company disclaims any obligation to update or revise forward-looking statements, emphasizing the uncertainty of future performance[11] - The Company cautions investors about the risks that could affect actual results, including competition, customer retention, and economic conditions[11] Non-GAAP Financial Measures - The Company provides non-GAAP financial measures such as Adjusted EBITDA, which is used to assess operating performance and is adjusted for various expenses including interest, taxes, and stock-based compensation[12] - The presentation includes a reconciliation of Adjusted EBITDA to GAAP net loss, highlighting its importance in evaluating the Company's performance[12] Investor Relations - The Company plans to use the presentation for discussions with investors and analysts, indicating a proactive approach to investor relations[4]

Market Trends and Growth Potential - The global biometric technology market is projected to reach $50 billion by 2024, growing at a 20% CAGR to exceed $150 billion by 2030[29]. - Cybercrime costs in the U.S. are expected to rise from approximately $452 million in 2024 to over $1.8 billion by 2028, highlighting the increasing demand for secure identity solutions[25]. - The company's growth is significantly dependent on the adoption of its technology and solutions by various organizations, which is crucial for market penetration and customer retention[61]. - The market for the company's products is characterized by changing technology and increasing use of AI technologies, which may adversely affect its operations if not addressed promptly[55]. Financial Performance and Challenges - The company has an accumulated deficit of approximately $173.8 million as of December 31, 2024, and incurred an operating loss of approximately $14.3 million for the year ended December 31, 2024[46]. - Negative cash flow from operating activities was approximately $11.6 million and $8.4 million for the years ended December 31, 2024 and 2023, respectively[47]. - The company has never declared or paid cash dividends and does not anticipate doing so in the foreseeable future[115]. - The company may continue to incur net losses in 2025 due to various risks and unforeseen expenses[46]. - The company’s ability to continue as a going concern depends on financial support from stockholders and the ability to generate sufficient revenues[181]. Strategic Initiatives and Business Model - authID aims to expand its customer base by targeting key markets with high-assurance identity verification needs, focusing on regulated sectors[32]. - The company plans to invest in research and development to innovate and advance its platform, enhancing speed, accuracy, and user experience[32]. - authID's Verified platform operates on a subscription and usage-based model, generating revenue through transaction fees and active users[30]. - The company has shifted its focus towards developing a new range of software as a service (SaaS) products aimed at generating recurring revenue from a larger customer base, with contractual commitments ranging from $50,000 to $10,000,000[72]. Risks and Regulatory Environment - The company is subject to evolving AI regulations, such as the EU AI Act adopted in 2024, which may increase compliance costs and impact its operations[59]. - The company faces significant risks related to acquisitions, including integration challenges and potential dilution to stockholders[53]. - The company is subject to risks associated with governmental contracts, including competitive bidding processes and public budgetary restrictions, which could impact its financial condition and results of operations[64][66]. - Compliance with evolving cybersecurity and data privacy regulations may increase operational costs and expose the company to legal liabilities[100]. Cybersecurity and Operational Risks - Cybersecurity threats, including potential breaches of network security, pose risks to the company's operations and reputation, despite existing security measures[77][78]. - The company has established comprehensive cybersecurity risk management policies and practices, based on ISO/IEC 27001:2013 standards[119]. - The company's cybersecurity program includes regular assessments, audits, and independent reviews to ensure compliance and effectiveness[127]. - The company has seen an increase in cyberattack volume and sophistication, necessitating ongoing investments in cybersecurity measures[118]. Employee and Management Structure - The company has a total of 46 employees as of December 31, 2024, with a focus on strategic and technological leadership in the U.S.[39]. - Approximately 20% of the company's outstanding Common Stock is beneficially owned by its officers, directors, and holders of 5% of shares, giving them significant influence over corporate actions[92]. Stock and Financing Activities - The company raised approximately $10.0 million and $15.4 million in net proceeds through equity and debt financing in 2024 and 2023, respectively[49]. - The company issued 1,113,828 shares in a public offering and 1,121,482 shares in a private placement between May 23 and June 7, 2023, at a price range of $3.664 to $5.632 per share[149]. - The company plans to continue raising additional funds in 2025 to support operations and investments, although there is no guarantee that financing will be available on acceptable terms[214].

Core Insights - The article discusses the rising threat of deepfake fraud in digital authentication systems and presents innovative countermeasures developed by authID to combat this issue [1][5]. Company Overview - authID is a leading provider of biometric identity verification and authentication solutions, ensuring enterprises can accurately verify user identities [6]. Deepfake Threat Landscape - Deepfake technology is advancing rapidly, making traditional authentication methods increasingly vulnerable to fraud [3]. - Over 40% of fraud attempts in the financial sector are currently driven by AI, indicating a critical need for enhanced security measures [4]. Innovative Solutions - authID's proprietary multi-layered detection system achieves a billion-to-one false-match accuracy rate, effectively preventing identity spoofing through deepfakes [2][7]. - The company has launched PrivacyKey™, a biometric solution that ensures secure authentication without storing sensitive facial data, thus maintaining user privacy and regulatory compliance [4]. Performance Metrics - authID's platform boasts a market-leading matching speed of 35 milliseconds and a biometric identity processing time of 700 milliseconds, providing a fast and user-friendly experience [3][7]. Implementation Framework - The whitepaper outlines an implementation framework for enterprise-grade deepfake countermeasures, focusing on safeguarding the device of origin to prevent injection attacks [6].

Core Viewpoint - authID, a provider of biometric identity verification solutions, will report its financial results for Q4 and the full year of 2024 on March 13, 2025, after market close [1]. Group 1: Financial Reporting - The financial results will cover the fourth quarter and the full year ended December 31, 2024 [1]. - A webcast will be hosted by the CEO and CFO at 5:00 p.m. EDT to discuss the results and provide a corporate update [1]. Group 2: Participation Details - Participants can join the live conference call by accessing a registration link for dial-in details [2]. - It is recommended that participants dial in 15 minutes early to avoid delays [2]. - A live webcast will be available on the Company's website for those who wish to listen [2]. Group 3: Event Replay - A replay of the event and a copy of the presentation will be accessible for 90 days on authID's Investor Relations Events page [3]. Group 4: Company Overview - authID provides a patented biometric identity platform that ensures enterprises know the identity behind each device [4]. - The platform offers quick and accurate identity verification, preventing cybercriminal activities such as account takeovers [4]. - The PrivacyKey Solution boasts a false match rate of 1-to-1 billion while storing no biometric data, enhancing security and user experience [4].

Core Insights - authID is recognized as a leader in biometric identity verification and authentication solutions, emphasizing privacy and compliance in its technology [1][2][6] - The newly launched PrivacyKey™ technology represents a significant advancement in biometric authentication, achieving a one-in-one-billion false-match accuracy rate while ensuring user data protection through a zero-knowledge architecture [2][6] - The Prism Project forecasts a 300% increase in demand for privacy-focused biometric solutions over the next three years, positioning authID at the forefront of this market shift [3] Company Developments - authID's partnership with Salus aims to improve credit union services for 120 million underserved individuals, showcasing the scalability and real-world impact of its platform [5] - The company has attracted partnerships with major financial institutions, technology companies, and firms across various sectors, including staffing, philanthropy, and customer service [5] - The CEO of authID highlighted the commitment to innovative identity verification solutions that prioritize security and user privacy, with the PrivacyKey™ technology being a key component of this strategy [6] Industry Context - The Prism Project's report evaluated over 250 industry players, identifying key market dynamics that drive growth in the global digital identity ecosystem, emphasizing the role of biometrics in fraud reduction and user experience enhancement [6] - The report indicates a growing trend towards privacy-focused biometric solutions, reflecting the increasing importance of balancing security and user privacy in digital interactions [3][6]

Core Insights - authID is recognized as a "luminary" in biometric identity verification and privacy protection according to an independent market report by the Prism Project [1][2] - The newly launched PrivacyKey™ technology by authID represents a significant advancement in biometric authentication, achieving a one-in-one-billion false-match accuracy rate while ensuring user data protection through zero-knowledge architecture [2][6] - The Prism Project forecasts a 300% growth in demand for privacy-focused biometric solutions over the next three years, positioning authID at the forefront of this trend [3] Company Developments - authID's partnership with Salus aims to enhance services for 120 million underserved individuals, showcasing the scalability and real-world impact of its platform [5] - The company has attracted partnerships with major financial institutions and technology companies, as well as firms in staffing, philanthropy, and customer service sectors [5] - CEO Rhon Daguro emphasized the commitment to identity verification solutions that prioritize security and user privacy, highlighting the revolutionary nature of the PrivacyKey™ technology [6] Industry Trends - The Prism Project's report indicates a critical role for biometrics in reducing fraud, improving operational efficiency, preserving privacy, and enhancing user experience in the digital transformation era [6] - The report evaluated over 250 industry players, identifying key market dynamics that drive growth in the global digital identity ecosystem [6] - The demand for privacy-focused biometric solutions is expected to surge, indicating a shift in consumer and business preferences towards secure and privacy-centric technologies [3]

Core Insights - authID has been selected by Salus to enhance the onboarding and authentication process for applicants, focusing on user privacy and regulatory compliance [1][2] - Salus aims to provide financial access to underprivileged communities by partnering with credit unions and utilizing authID's technology for efficient identity verification [2][3] Company Overview: authID - authID is a provider of biometric identity verification solutions, ensuring secure and accurate user authentication for enterprises [4] - The company offers a patented biometric identity platform that integrates digital onboarding, passwordless login, and biometric authentication, achieving identity verification in approximately 700 milliseconds [4] Company Overview: Salus - Salus is a fintech organization established in 2023, designed to assist credit unions in providing financial services to lower-income and underbanked individuals [2][5] - The platform aims to automate the underwriting process and eliminate manual credit checks, thereby improving financial access for over 120 million young adults with limited credit histories [2][5] Partnership Benefits - The collaboration between authID and Salus is expected to enhance the user experience by providing fast, accurate, and secure identity verification, which is crucial for building trust with credit union partners [2][3] - Salus chose authID after evaluating various vendors, finding its biometric solutions to be superior in providing a guided user experience and deterministic identity validation [3]

Core Insights - authID has been selected by Salus to enhance the onboarding and authentication process for applicants, focusing on user privacy and regulatory compliance [1][3] - Salus aims to provide financial access to underprivileged communities by partnering with credit unions and utilizing authID's biometric identity verification technology [2][5] Company Overview - Salus is a fintech organization launched in 2023, designed to assist credit unions in providing credit to lower-income, thin-file, and typically younger individuals, targeting over 120 million underserved adults [2][5] - authID specializes in biometric identity verification and authentication solutions, ensuring secure and accurate user identity verification to prevent fraud and cyberattacks [4][5] Technology and Integration - Salus chose authID for its advanced biometric verification solutions, which offer a seamless user experience and help build trust between credit unions and their members [2][3] - authID's technology integrates with existing platforms for automated underwriting and data analysis, enhancing the ability of credit unions to confidently lend to underbanked members [2][4] Strategic Goals - The partnership between Salus and authID aims to broaden access to financial services for individuals who struggle with traditional banking processes, emphasizing speed, accuracy, and privacy protection [3][4] - Both companies are committed to improving financial stability for underserved populations by leveraging innovative technology to streamline the lending process [2][3]