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Here are 1-3 brief analogies for AuthID (AUID):

• AuthID is like Okta or Ping Identity for biometric and passwordless identity verification.
• AuthID is like Apple's Face ID or Touch ID, but as an enterprise-grade identity verification solution for businesses.

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• Identity Verification: Verifies a user's identity by comparing a live biometric capture with a government-issued ID and performing liveness detection to prevent fraud.
• Biometric Authentication: Replaces traditional passwords with secure facial biometric logins for streamlined and secure access to digital applications.
• Proof of Life: Confirms the real-time presence and aliveness of an individual through advanced biometric liveness detection.

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AuthID (AUID) primarily sells its identity assurance and biometric authentication platform to other businesses (B2B), rather than directly to individuals.

The company targets enterprise customers across several key industries that require robust identity verification and authentication solutions for their own users or customers. These include:

• Financial Services: Banks, fintech companies, and other financial institutions needing to verify customer identities for account opening, transactions, and fraud prevention (KYC/AML compliance).
• Online Gaming and Sports Betting: Operators in this sector use AuthID to verify player identities, prevent underage gambling, ensure compliance with regulations, and secure accounts.
• Healthcare: Organizations seeking to secure patient data, control access to sensitive information, and comply with privacy regulations.
• Critical Infrastructure & Government: Entities requiring strong authentication for access to sensitive systems and facilities.
• High-Tech Manufacturing: Companies looking to secure supply chains, intellectual property, and internal systems.

AuthID's business model involves providing its Verified, Authenticate, and Secure platforms as APIs and SDKs that client companies integrate into their own applications to verify and authenticate their end-users or customers. This means AuthID's direct customers are the businesses that embed AuthID's technology.

Based on their latest public filings (e.g., the 2023 Form 10-K), AuthID reported that no single customer accounted for 10% or more of their total revenue for the years ended December 31, 2023, and 2022. As such, AuthID does not publicly disclose specific "major customers" by name, as none meet the typical materiality thresholds for individual disclosure in SEC filings. The company's customer base, while growing, appears to be diversified without significant revenue concentration from any single client.

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• Amazon Web Services (AWS) - Amazon.com, Inc. (AMZN)

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Jerome N. Swanson, Chief Executive Officer

Mr. Swanson previously served as CEO of SecureAuth Corporation, a leader in adaptive authentication technologies. His career includes senior leadership roles at Entrust, Inc. and CoreStreet. He has experience in driving growth, market penetration, and strategic transactions including mergers and acquisitions (M&A).

Philip L. Hart, Chief Financial Officer

Mr. Hart has held CFO roles at several technology companies, including ImageWare Systems, Inc., Transaction Systems Architects, Inc., and First Data Corporation. His extensive experience encompasses financial operations, strategic planning, mergers and acquisitions, and capital raises.

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Key Business Risks for AuthID (AUID)

1. History of Losses and Profitability Challenges: AuthID has a consistent track record of net losses, with the net loss widening to $5.2 million in Q3 2025 from $3.4 million a year prior. Operating expenses are also on an upward trend, reaching $5.1 million in Q3 2025, driven by increased investment in sales and research and development. The company even reported negative net revenue of $(0.1) million in Q3 2025, a significant drop from $0.2 million in the same period last year, largely due to contractual challenges and concessions. Furthermore, the 2025 Booked Annual Recurring Revenue (bARR) target was substantially reduced from an initial $18 million to $6 million, indicating ongoing financial pressure and challenges in achieving profitability.

2. Longer Enterprise Sales Cycles and Customer Contract Challenges: A significant risk stems from longer-than-expected sales cycles for large enterprise deals, which has led to delays in revenue recognition. The company has experienced specific contractual difficulties with two major customers, resulting in revenue concessions and payment delays. Management cited these challenges as a primary reason for recalibrating growth targets and the reduction in bARR guidance.

3. Intensely Competitive Market: AuthID operates within a vast yet moderately concentrated biometric identity verification (IDV) market. While the company emphasizes its technological advantages, the market is highly competitive. Numerous other vendors are actively investing in advanced biometric capabilities and AI-driven fraud detection. Moreover, larger companies offering identity and access management platforms are increasingly integrating identity authentication services, sometimes at little to no cost, which could further intensify competitive pressures for AuthID.

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• The global biometric digital identity industry is projected to generate over $315 billion in aggregate revenue from 2024 through 2028.
• The global next-gen biometric authentication market size was estimated at $28.76 billion in 2024 and is projected to reach $118.65 billion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 27.1% from 2025 to 2030.
• The global identity verification market size was valued at $11.97 billion in 2024 and is projected to grow to $39.82 billion by 2032, at a CAGR of 16.4%. Other estimates place the global identity verification market size at $13.27 billion in 2024, with a projection to reach $52.05 billion by 2033, growing at a CAGR of 16.4% over the forecast period (2025-2033).
• The global Identity Verification and Authentication market was valued at $12.89 billion in 2024 and is expected to reach $40.26 billion by 2032, growing at a CAGR of 15.3% (2024-2032).

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Expected Drivers of Future Revenue Growth for AuthID (AUID)

AuthID (AUID) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Securing Large Enterprise and Platform Deals: AuthID has outlined an ambitious bookings target of $18 million for 2025, with a strategic focus on securing 4-5 major deals with large enterprise and platform partners. This shift towards larger customers is expected to generate higher revenue and contribute significantly to growth in subsequent quarters.
2. Expansion of Product Offerings and Strategic Partnerships: The launch of new products, such as the IDX platform in partnership with NEC, and an upgraded PrivacyKey, are poised to expand AuthID's market reach and drive future revenue. Collaborations with companies like Prove and MajorKey Technologies are also instrumental in delivering high-assurance identity verification solutions for broader platforms like Microsoft Entra.
3. Customer Retention and Expansion: A heightened focus on customer retention and expansion in 2025 is expected to contribute to revenue growth as existing customer contracts mature. The company aims to broaden relationships with its current customer base by providing additional value and securing new enterprise clients.
4. Growing Demand for Biometric Authentication: AuthID is well-positioned to capitalize on the increasing market demand for biometric authentication and secure digital onboarding solutions due to its innovative privacy key technology and interoperable identity solutions. Furthermore, increasing regulatory pressures, such as KYC/AML compliance, are driving the adoption of robust identity verification, thereby expanding the addressable market for AuthID's offerings.
5. Conversion of Booked Annual Recurring Revenue (bARR) and Remaining Performance Obligations (RPO): The company's future revenue will be significantly driven by the conversion of its Booked Annual Recurring Revenue (bARR) and Remaining Performance Obligations (RPO) into recognized revenue. The "Go-Live" of contracts signed in previous periods has already demonstrated its impact on revenue growth, and with $13.8 million in RPO as of Q2 2025, which is typically recognized over a three-year contract term, a predictable stream of future revenue is anticipated.

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Share Issuance

• AuthID completed an initial public offering (IPO) on August 24, 2021, raising $10 million by issuing 1,400,000 shares at $7.00 per share.
• In March 2025, AuthID announced a registered direct offering of approximately 1,811,111 shares of common stock and/or pre-funded warrants at $4.50 per share, expected to generate gross proceeds of about $8.15 million.

Inbound Investments

• The company raised $10 million through its initial public offering on August 24, 2021.
• AuthID secured approximately $8.15 million in gross proceeds from a registered direct offering of shares and/or pre-funded warrants, which was anticipated to close around April 1, 2025.