authID Inc.

authID Inc. operates in the biometric identity verification and authentication market, providing a patented, cloud-based platform to help enterprises verify and authenticate users, prevent fraud, and eliminate password risks. The company's solutions are designed to ensure "Know Who's Behind the Device"™ for customer and employee logins and transactions. The market for identity verification and authentication is experiencing hyper-growth, driven by the increasing momentum towards a digital economy, a surge in cyberattacks and fraud, and new data privacy regulations. The Global Biometric Technology Market is estimated to reach over $50 billion ⁴ by 2025, with a projected 20% CAGR to exceed $150 billion ⁵ by 2030. Cybercrime costs in the United States alone are projected to increase to approximately $900 billion ⁶ in 2026 and grow to over $3.4 trillion ⁷ in 2030.

The company's core business model is a Software as a Service (SaaS) platform, generating revenue through subscription and usage-based fees, with charges per transaction, enrolled, or active users. Primary customer segments include highly regulated sectors and organizations with high-risk transactions, such as financial services, e-commerce, the sharing economy, and healthcare businesses. The platform aims to address the full authentication lifecycle and govern the user journey.

authID's platform offers several core services. "Biometric Identity Verification - Proof™" establishes trusted user identity using government-issued documents like national IDs, driver's licenses, and passports, detecting presentation attacks and spoofing threats, and biometrically matching document photos with live user selfies. This solution eliminates the need for costly in-person ID checks and provides verified identity in seconds. "Biometric Identity Authentication - Verified™" offers a secure, convenient solution for passwordless login and transaction authentication, allowing users to confirm identity with a facial biometric via mobile devices. It includes a patented audit trail for each transaction and enables instant, portable account recovery independent of specific devices. The "PrivacyKey™ Privacy Preserving Biometrics" solution provides biometric authentication without storing any biometric data, converting facial images into public/private key pairs where only the public key is stored. This solution is ISO30136 Privacy Biometric standard compliant and boasts a False Match Rate accuracy of 1:1 Billion ⁸ at a False Rejection Rate of 0.3% ⁹, as confirmed by independent tests. The "Identity Exchange (IDX™) Platform" is a next-generation platform for centrally managing workforce identities across large enterprises, providing biometric-bound, passwordless, interoperable, and reusable credentials to prevent phishing attacks. Lastly, "authID Mandate - Agentic AI Security Framework" biometrically binds human sponsors to AI agents, ensuring governance and an immutable audit trail for agentic activity.

For the fiscal year ended December 31, 2025, authID Inc. reported net revenues of approximately $2.0 million ¹⁰, a significant increase from approximately $0.9 million ¹¹ for the year ended December 31, 2024. The company recorded approximately $0.9 million ¹² in estimated concessions related to two customer contracts in 2025 due to unexpected declines in usage below minimum commitments. The net loss for the year ended December 31, 2025, was approximately $17.9 million ¹³, compared to a net loss of approximately $14.3 million ¹⁴ for the year ended December 31, 2024. Diluted EPS for 2025 was $(1.38) ¹⁵, compared to $(1.40) ¹⁶ in 2024. Cash and equivalents at December 31, 2025, stood at $4.6 million ¹⁷, down from $8.5 million ¹⁸ at December 31, 2024. Total current assets were $5.7 million ¹⁹ and total current liabilities were $1.4 million ²⁰, resulting in net working capital of $4.3 million ²¹. The company had no outstanding long-term contractual obligations as of December 31, 2025.

Comparing year-over-year, net revenues increased by approximately $1.1 million ²² from $0.9 million ¹¹ in 2024 to $2.0 million ¹⁰ in 2025, driven by the acquisition and activation of new customers. General and administrative expenses increased by approximately $3.3 million ²³ in 2025 compared to 2024, primarily due to higher employee-related expenses, shares issued to management advisors, and approximately $0.8 million ²⁴ in credit loss expense. Research and development expenses rose by approximately $1.4 million ²⁵ in 2025 compared to 2024, reflecting continued investment in personnel and contractors for product capabilities and performance. Amortization expense decreased by approximately $0.1 million ²⁶ in 2025 compared to 2024, as the useful life of the company's assets diminished. Interest income decreased by approximately $0.2 million ²⁷ in 2025 compared to 2024. Net cash used in operating activities increased to $15.0 million ²⁸ in 2025 from $11.6 million ²⁹ in 2024, reflecting increased investment in business operations, people, and product.

During 2025, authID Inc. engaged in several significant operational developments. The company issued 1,811,120 ³⁰ shares of common stock and pre-funded warrants in an April 2025 registered offering for gross proceeds of approximately $8.2 million ³¹. In May 2025, an additional 373,060 ³² shares of common stock were issued in a registered offering for gross proceeds of approximately $2.1 million ³³. A further 2,688,747 ³⁴ shares of common stock and pre-funded warrants were issued in a November 2025 registered offering for gross proceeds of approximately $3.7 million ³⁵. The company also issued 200,000 ³⁶ shares of common stock under restricted stock awards to non-employee advisors in April 2025. All Senior Secured Convertible Notes outstanding were fully repaid and security interests discharged on March 31, 2025. The company dissolved its Colombian subsidiary, MultiPay S.A.S., as of August 2, 2024.

authID Inc. explicitly states that it expects to continue to incur net losses in 2026. The company's ability to achieve or maintain profitability is uncertain, and it may encounter unforeseen expenses, difficulties, complications, delays, and other unknown events. The company has an accumulated deficit of approximately $191.7 million ³⁷ as of December 31, 2025, and incurred an operating loss of approximately $17.9 million ³⁸ for the year ended December 31, 2025.

The company plans to grow its business by increasing the use of its services by existing customers, adding new customers through its direct salesforce and channel partners, and expanding into new markets and innovation. Key priorities for future growth include driving new customer growth, with a focus on highly regulated sectors and organizations with high-risk transactions, and targeting both less complex, less resource-intensive opportunities and larger, higher revenue-generating brands. The company also intends to accelerate onboarding and usage within its customer base by investing in bringing customers live on its platform quickly to realize benefits and ramp up usage, thereby speeding up time to revenue. Furthermore, authID plans to strategically develop its partner network by identifying and pursuing strategic reseller and similar partner opportunities to complement its direct sales team. The company also intends to innovate and advance its platform through continued investment in research and development and hiring top technical talent to meet evolving customer needs, support new use cases, diversify product offerings, and improve key differentiators of speed, accuracy, privacy, and user experience.

The company's growth-oriented business plan to offer products to its customers will require continued capital investment. Research and development activities and technology deployment will also require continued investment. authID plans to be opportunistic and judicious in raising additional funds to support its operations and investments as it seeks to create a sustainable organization. In 2025, the company raised approximately $11.4 million ³⁹ net proceeds after expenses through equity and debt financing.

Management explicitly flagged several structural headwinds and execution risks to the growth plan. The company has a history of losses and negative cash flow from operating activities, with approximately $15.0 million ⁴⁰ used to fund operations in 2025, and anticipates continued negative cash flows through at least the next 12 months due to expected increases in research and development, sales and marketing, and general and administrative expenses. There is substantial doubt about the company's ability to continue as a going concern if it cannot achieve positive cash flows and raise sufficient capital. The company's limited operating history makes it difficult to evaluate future business prospects and forecast results. There is no assurance that the company will successfully commercialize products in development or recently launched, or that existing products will sustain market acceptance. The company's ability to grow depends on the adoption of its technology and solutions by organizations, and if these are not adopted, revenues may not increase, and existing customers may be lost. The market for products is characterized by changing technology, requirements, standards, and products, and is impacted by the growing use of AI technologies, requiring prompt and effective responses to these changes. Issues relating to the development and use of AI, including generative AI, in offerings may result in reputational harm, liability, and adverse financial results. The company depends on a small number of large sales with contractual commitments ranging from $500,000 ⁴¹ to $2,000,000 ⁴², which take longer to close and may result in unpredictable quarterly revenue and business concentration.

Geographic, regulatory, and macro factors identified as constraints include local data privacy and other regulations, trade restrictions, import duties and tariffs, export regulations or restrictions including sanctions, uncertain political, regulatory, and economic developments, labor and social unrest, inability to protect intellectual property rights, highly aggressive competitors, currency issues including exchange risk, difficulties in staffing and managing foreign operations, longer payment cycles, increased collection risks, and the impact of wars and terrorism. The global economy is undergoing political and economic uncertainty, with high stock market volatility, which could impact spending on identity verification, management, and security methods, thereby negatively affecting revenue growth. Specifically, the wars in Ukraine and the Middle East may impact the company's business, markets, and ability to raise capital, potentially disrupting work with contractors and increasing costs. Some states in the United States are adopting or considering Biometric Information Privacy Act (BIPA) legislation, which could restrict business activities or increase compliance costs, and has led to class action lawsuits.

authID Inc. faces several material risks, including a history of recurring losses and negative cash flows from operations, with an accumulated deficit of approximately $191.7 million ³⁷ as of December 31, 2025, and a net loss from operations of approximately $17.9 million ³⁸ for the year ended December 31, 2025, raising substantial doubt about its ability to continue as a going concern. The company's reliance on a small number of large sales, with contractual commitments ranging from $500,000 ⁴¹ to $2,000,000 ⁴², creates unpredictable quarterly revenue and business concentration risk. The highly competitive and rapidly evolving market for identity verification and authentication, characterized by changing technology, industry standards, and the growing use of AI technologies, poses a risk if the company fails to respond promptly and effectively to these changes, including new AI-driven cyberattacks and deepfakes. Operational risks include potential interruptions, delays, or defects in its cloud-based systems, which are vulnerable to damage from natural disasters, cyberattacks, and human error, despite security measures. The company also faces significant regulatory risks, particularly from evolving data privacy protection legislation, such as the Biometric Information Privacy Act (BIPA) in various U.S. states, which could lead to increased compliance costs, restrictions on business activities, and class-action lawsuits, as evidenced by the recent Perez v. Intellicheck, Inc. and authID Inc. lawsuit. Geopolitical risks from ongoing wars in Ukraine and the Middle East may impact operations, supply chains, and the ability to raise capital.

Management's message to shareholders conveys a focus on growth and innovation within the rapidly expanding biometric identity verification and authentication market, despite acknowledging a history of losses and negative cash flow. The company explicitly states that it expects to continue to incur net losses in 2026. Management emphasizes its commitment to raising additional funds to support operations and investments, having raised approximately $11.4 million ³⁹ net proceeds after expenses in 2025 through equity and debt financing. The three strategic priorities highlighted are driving new customer growth, accelerating onboarding and usage within the existing customer base, and strategically developing its partner network. Management also underscores its intent to innovate and advance the platform through continued investment in research and development and hiring top technical talent to meet evolving customer needs and improve key differentiators.