authID Inc. (AUID) Bundle
A Brief History of authID Inc.
authID Inc. has undergone significant changes and developments in its operational and financial landscape. As of September 30, 2024, the company reported a net loss of $9,683,619 for the nine months ending that date, compared to a net loss of $16,180,056 for the same period in 2023. The total revenues for the nine months ended September 30, 2024, were approximately $687,000, a notable increase from approximately $118,000 in the same period of the previous year.
Financial Performance
The financial performance of authID Inc. can be summarized in the following table:
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Loss | $9,683,619 | $16,180,056 |
| Revenues | $687,000 | $118,000 |
| General and Administrative Expenses | $6,334,070 | $5,853,218 |
| Research and Development Expenses | $4,213,041 | $1,525,723 |
| Cash on Hand | $11,700,000 | N/A |
In terms of operational efficiency, the company has focused on restructuring initiatives which led to a significant reduction in certain operational costs. However, general and administrative expenses have shown an increase due to ongoing investments in infrastructure and personnel. The research and development expenditure also saw a substantial rise, reflecting the company's commitment to innovation and product development.
Stock Performance and Equity
As of September 30, 2024, authID Inc. had approximately 10,920,909 shares outstanding, with an accumulated deficit of $(169,214,154). The company has actively engaged in financing activities, raising approximately $10.0 million from the sale of common stock during the nine months ending September 30, 2024.
The stock options and warrants activity during this period is summarized as follows:
| Type | Outstanding Shares | Weighted Average Exercise Price |
|---|---|---|
| Stock Options | 1,991,048 | $22.07 |
| Warrants | 697,446 | $11.20 |
Additionally, the company has recognized stock-based compensation expenses totaling approximately $2,044,210 for the nine months ended September 30, 2024.
Future Outlook
Looking ahead, authID Inc. anticipates the need for further capital raises to support its growth-oriented business plan. The company has projected its Remaining Performance Obligations (RPO) at approximately $3.83 million, with expectations to recognize a significant portion of this revenue in upcoming fiscal periods. The operational focus will likely remain on enhancing product offerings and expanding market reach, despite ongoing uncertainties in the geopolitical landscape which may impact operational capabilities.
A Who Owns authID Inc. (AUID)
Shareholder Structure
As of September 30, 2024, authID Inc. (AUID) has a total of 10,920,909 shares of common stock issued and outstanding. The company’s total stockholders’ equity amounts to approximately $15,594,187.
Major Shareholders
The ownership of authID Inc. is primarily held by institutional investors and insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|
| Rhon Daguro (CEO) | 1,500,000 | 13.7% |
| Michael Thompson (Director) | 12,254 | 0.1% |
| Institutional Investors | 4,500,000 | 41.2% |
| Other Insiders | 2,000,000 | 18.3% |
| Public Float | 3,908,655 | 35.8% |
Recent Stock Offerings
On June 27, 2024, authID Inc. raised approximately $10.0 million through a registered direct offering by issuing 1,464,965 shares of common stock. This offering was part of the company's strategy to enhance its liquidity and fund ongoing operations.
Financial Performance
For the nine months ended September 30, 2024, authID Inc. reported revenues of approximately $686,736 with a net loss of $9,683,619. The company’s accumulated deficit as of the same date stands at approximately $169,214,154.
Cash Position
As of September 30, 2024, authID Inc. had cash reserves of approximately $11,718,392 and working capital of about $11,200,000. This cash position is crucial for supporting the company’s operations and potential growth initiatives in the coming years.
Stock Option Plans
As of September 30, 2024, the company had approximately 1,991,048 stock options outstanding with a weighted average exercise price of $22.07. The stock options are part of the company’s compensation strategy to align employee performance with shareholder interests.
Conclusion on Ownership Dynamics
authID Inc.'s ownership landscape is characterized by significant holdings from institutional investors and insiders, reflecting confidence in the company's long-term growth potential. The recent capital raises and strategic equity offerings indicate a proactive approach to financial management as the company navigates its operational challenges.
authID Inc. (AUID) Mission Statement
authID Inc. focuses on ensuring that enterprises "Know Who’s Behind the Device"™ for every customer or employee login and transaction. The company offers an easy-to-integrate, patented, biometric identity platform designed to quickly and accurately verify user identities, thereby preventing cybercriminals from taking over accounts.
Company Vision
The vision of authID is to eliminate the risks associated with identity theft and account takeover by providing robust identity verification solutions that are seamless and user-friendly.
Core Values
- Security: Commitment to providing secure identity verification solutions.
- Innovation: Focus on continuous improvement and technological advancement.
- Customer-Centricity: Prioritizing the needs and experiences of customers.
Recent Financial Performance
As of September 30, 2024, authID reported a net loss of approximately $9.68 million compared to a net loss of $16.18 million for the same period in 2023. The company experienced revenues of $686,736 for the nine months ended September 30, 2024, a significant increase from $118,387 in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $(9,683,619) | $(16,180,056) |
| Revenue | $686,736 | $118,387 |
| Cash on Hand | $11,718,392 | $10,177,099 |
| Working Capital | $11,200,000 | N/A |
| Weighted Average Shares Outstanding | 10,920,872 | 7,874,962 |
Market Position
authID is positioned in the identity verification and authentication market, which is experiencing growth due to increasing concerns over identity theft and fraud. The company’s solutions cater to various sectors including banking, healthcare, and e-commerce, where secure identity verification is critical.
Future Outlook
The company aims to expand its market share by enhancing existing services and developing new products. As of September 30, 2024, authID's accumulated deficit stood at approximately $169.2 million, indicating the need for ongoing financial support and capital investment to sustain operations and drive growth.
| Future Financial Projections | 2025 Estimate |
|---|---|
| Expected Revenue Growth | Projected increase based on market trends |
| Planned Capital Investments | Continued investment in technology and personnel |
| Funding Needs | Additional funds required for operations and growth |
Conclusion on Mission Statement
authID's mission is clearly articulated through its commitment to providing secure and efficient identity verification solutions that address the evolving challenges of digital security. The company’s strategic focus on innovation and customer service underpins its vision to be a leader in identity verification technology.
How authID Inc. (AUID) Works
Business Operations
authID Inc. operates in the identity verification and authentication sector, providing solutions that allow enterprises to confirm user identities securely and efficiently. The company utilizes a patented biometric identity platform that enables passwordless authentication, enhancing security while improving user experience.
Financial Performance
For the nine months ended September 30, 2024, authID reported revenues of approximately $686,736, compared to $118,387 for the same period in 2023. The increase in revenue is attributed to new customer contracts signed in late 2023.
Operating expenses for the nine months ended September 30, 2024, totaled $10,678,321, compared to $7,591,391 in 2023. The breakdown of operating expenses is as follows:
| Expense Type | 2024 | 2023 |
|---|---|---|
| General and administrative | $6,334,070 | $5,853,218 |
| Research and development | $4,213,041 | $1,525,723 |
| Depreciation and amortization | $131,210 | $212,450 |
Despite the increase in revenues, authID experienced a net loss of $9,683,619 for the nine months ended September 30, 2024, compared to a net loss of $16,180,056 in the same period of 2023. The loss from continuing operations was $9,991,585 for the nine months ended September 30, 2024.
Cash Flow Analysis
As of September 30, 2024, authID had approximately $11.7 million in cash and $11.2 million in working capital. For the nine months ended September 30, 2024, cash flows from operating activities were approximately $(8,477,368), compared to $(6,224,162) for the same period in 2023.
The cash provided by financing activities in the nine months ended September 30, 2024, was approximately $10,041,399, primarily from the sale of common stock, net of offering costs.
| Cash Flow Statement (Nine Months Ended September 30) | 2024 | 2023 |
|---|---|---|
| Net loss | $(9,683,619) | $(16,180,056) |
| Cash used in operating activities | $(8,477,368) | $(6,224,162) |
| Cash used in investing activities | $(17,582) | $(17,000) |
| Cash provided by financing activities | $10,041,399 | $6,321,492 |
Market Position and Customer Base
As of September 30, 2024, authID's customer base included three major customers that accounted for approximately 84% of total revenue. The company has seen a significant shift in its revenue concentration, with the previous year showing one customer representing 53% of revenue.
The Remaining Performance Obligations (RPO) as of September 30, 2024, were approximately $3.83 million, indicating future revenue expectations. The company expects to recognize approximately 27% of this RPO over the next twelve months.
Investment and Future Needs
authID anticipates the need for additional funding to sustain operations and support growth initiatives. The company raised approximately $10 million in June 2024 through a registered direct offering. Future capital investments are crucial for the company's growth-oriented business strategy.
Summary of Key Financial Metrics
| Metric | Value |
|---|---|
| Revenue (2024) | $686,736 |
| Net Loss (2024) | $(9,683,619) |
| Cash on Hand | $11,700,000 |
| Working Capital | $11,200,000 |
| Remaining Performance Obligations | $3,830,000 |
| Proceeds from Financing Activities (2024) | $10,041,399 |
How authID Inc. (AUID) Makes Money
Revenue Generation Model
authID Inc. generates revenue primarily through software licensing, identity verification, and customer contracts. For the nine months ended September 30, 2024, the company reported revenues of approximately $686,736, compared to $118,387 for the same period in 2023.
Revenue Breakdown
| Period | Revenue (Net) | Percentage Increase/Decrease |
|---|---|---|
| Q3 2024 | $248,920 | 474.0% |
| Q3 2023 | $43,389 | - |
| 9 Months 2024 | $686,736 | 480.5% |
| 9 Months 2023 | $118,387 | - |
Key Customers
As of September 30, 2024, three customers represented 84% of the company's revenue, highlighting a significant concentration of income. In comparison, for the same quarter in 2023, one customer accounted for 53% of total revenue.
Operating Expenses
For the nine months ending September 30, 2024, authID incurred operating expenses totaling approximately $10,678,321, compared to $7,591,391 in 2023, representing an increase mainly driven by enhanced research and development investments.
| Category | 2024 Expenses | 2023 Expenses |
|---|---|---|
| General and Administrative | $6,334,070 | $5,853,218 |
| Research and Development | $4,213,041 | $1,525,723 |
| Depreciation and Amortization | $131,210 | $212,450 |
Net Loss
authID reported a net loss of approximately $9,683,619 for the nine months ended September 30, 2024, compared to a net loss of $16,180,056 for the same period in 2023, indicating improvements in financial performance despite ongoing losses.
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, authID's cash used in operating activities was approximately $8,477,368, while cash provided by financing activities amounted to approximately $10,041,399 through the sale of common stock.
Future Revenue Expectations
As of September 30, 2024, authID had a Remaining Performance Obligation (RPO) of $3.83 million, with $0.33 million recorded as deferred revenue. Approximately 27% of the RPO is expected to be recognized as revenue over the next twelve months.
Market Trends Impacting Revenue
- Growing concerns over identity theft and fraud.
- Expansion of digital transformation across various sectors.
- Increased demand for secure electronic payments and alternative money transfer solutions.
Conclusion on Financial Viability
As of September 30, 2024, authID Inc. had an accumulated deficit of approximately $169.2 million. The company continues to depend on financial support from stockholders and the ability to secure additional financing for ongoing operations and growth initiatives.
authID Inc. (AUID) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- authID Inc. (AUID) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of authID Inc. (AUID)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View authID Inc. (AUID)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.