authID (US:AUID)2025-05-13 20:16Financial Performance - For the three months ended March 31, 2025, the Company earned revenue of approximately $296,000, an increase from approximately $157,000 for the same period in 2024, primarily due to new customer contracts[93] - The Company incurred a net loss of approximately $4.3 million for the three months ended March 31, 2025, compared to a net loss of approximately $3.1 million for the same period in 2024[92] - Adjusted EBITDA for continuing operations was approximately $(3.9) million for the three months ended March 31, 2025, compared to approximately $(2.4) million for the same period in 2024[92] - The Company had an accumulated deficit of approximately $178.1 million as of March 31, 2025[81] Expenses - General and administrative expenses increased by approximately $0.6 million for the three months ended March 31, 2025, driven by higher employee-related expenses due to investment in client-facing sales resources[94] - Research and development expenses rose by approximately $0.8 million for the three months ended March 31, 2025, reflecting continued investment in product capabilities and performance[95] - Cash used in operating activities increased to approximately $5.4 million for the three months ended March 31, 2025, compared to $2.9 million for the same period in 2024[100] - Cash used in investing activities was approximately $2,000 for the three months ended March 31, 2025, compared to $0 for the same period in 2024[100] - Cash used in financing activities included approximately $0.2 million for offering costs related to the repayment of the March 2025 Convertible Notes[101] Funding and Capital - The Company raised approximately $8.6 million in April and May 2025 through the sale of common stock to support operations and investments[82] - The company raised approximately $8.6 million from existing and new stockholders through registered direct offerings in April and May 2025[102] - The company anticipates needing additional funds to support operations and investments to create a sustainable organization[102] Market Conditions - The Company’s financial results are impacted by market trends in identity verification and economic conditions, which may affect spending on security methods[77] - The global economy is experiencing high levels of volatility, impacting spending on identity verification and management products, which may negatively affect revenue growth[99] - The company has made significant cut-backs in expenditure due to economic uncertainty, including reductions in force and investment freezes[99] Business Strategy - The Company plans to grow by increasing service usage among existing customers and adding new customers through direct sales and channel partners[78] - There is no guarantee that the current business plan will not change, which may require additional capital for implementation[103] Financial Position - As of March 31, 2025, the company has approximately $2.9 million in cash and $3.0 million in working capital[100] - The company has no off-balance sheet arrangements that could materially affect its financial condition[104] Technology - The PrivacyKey technology provides biometric authentication without storing biometric data, ensuring compliance with privacy standards and achieving a False Match Rate accuracy of 1:1 billion[74]