authID (US:AUID)2025-11-12 21:16Financial 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].