authID (US:AUID)2024-05-15 20:06Financial Performance - For the three months ended March 31, 2024, the Company earned revenue from continuing operations of approximately $157,000, a significant increase from approximately $38,000 in the same period of 2023, primarily due to new customer contracts signed in the second half of 2023 [87]. - The Company incurred a net loss of approximately $3.1 million for the three months ended March 31, 2024, compared to a loss of approximately $1.8 million for the same period in 2023 [81]. - Adjusted EBITDA for continuing operations was approximately $(2.39) million for the three months ended March 31, 2024, compared to approximately $(2.20) million for the same period in 2023 [86]. - Cash used in operating activities was approximately $2.9 million for the three months ended March 31, 2024, compared to $2.2 million for the same period in 2023 [93]. Expenses - General and administrative expenses increased by approximately $1.2 million during the three months ended March 31, 2024, due to a one-time event related to stock-based compensation reversals in Q1 2023 [88]. - Research and development expenses rose by approximately $1.1 million for the three months ended March 31, 2024, primarily due to the absence of a one-time stock-based compensation reversal from Q1 2023 [89]. - Interest expense, net decreased by approximately $0.8 million during the three-month period ended March 31, 2024, mainly due to the exchange of Convertible Notes for common stock in May 2023 [91]. Financial Position - The Company had an accumulated deficit of approximately $162.6 million as of March 31, 2024 [81]. - As of March 31, 2024, the Company has approximately $7.2 million in cash and $6.7 million in working capital [93]. - The Company has no off-balance sheet arrangements that could materially affect its financial condition [99]. Future Plans and Risks - The Company plans to grow its business by increasing service usage among existing customers and expanding into new markets, with expectations of continued revenue growth if successful [79]. - The Company is focused on raising additional funds in 2024 and 2025 to support operations and investments, with no guarantee that such financing will be available on acceptable terms [81]. - The Company will need to raise additional funds in 2024 and 2025 to support operations and investments, with no guarantee that financing will be available on acceptable terms [94]. - The ongoing war in Ukraine and the Middle East may disrupt operations and increase costs, impacting the market for the Company's products [95][97]. - Increased volatility in financial markets due to geopolitical tensions may affect the Company's stock price and ability to raise capital [98]. Other Information - The Company completed the sale of its legacy payments software for approximately $96,000 in June 2023, recognizing a gain of approximately $216,000 [92]. - Recent material accounting policies critical to understanding financial results are discussed in Note 1 of the unaudited financial statements [100].