authID Inc. Reports Revenue Growth to $886,000 but Faces $14.3 Million Net Loss

authID Inc. reported a significant increase in revenue for the fiscal year ending December 31, 2024, generating approximately $886,000 compared to $190,000 in the previous year. Despite this growth, the company continues to face financial challenges, posting a net loss of approximately $14.3 million, an improvement from the $19.6 million loss recorded in 2023. The accumulated deficit now stands at approximately $173.8 million. The increase in revenue is attributed to the successful acquisition and onboarding of new customers, although the company still has not achieved positive cash flow.

In terms of operational changes, authID has made strategic decisions to exit non-core activities, including the sale of its Cards Plus business in South Africa and the dissolution of its MultiPay operations in Colombia. These discontinued operations are reflected in the financial statements for 2023. The company has also focused on enhancing its biometric identity verification platform, which includes products like ProofTM and VerifiedTM, aimed at providing secure and efficient identity verification solutions. The company’s workforce has expanded, with a total of 46 employees as of December 31, 2024, up from previous years, reflecting its commitment to growth and innovation.

The filing indicates that authID is actively pursuing new customer growth and expanding its market presence, particularly in sectors requiring high-assurance identity verification. The company plans to invest in research and development to enhance its technology and product offerings. However, it acknowledges the need for additional capital to support its operations and growth strategy, raising approximately $10 million in 2024 through equity financing. The company’s ability to continue as a going concern is contingent upon securing further financing and generating sufficient revenue.

Looking ahead, authID's management has expressed optimism about the potential for revenue growth driven by increasing demand for identity verification solutions amid rising concerns over cyber threats and fraud. However, the company also recognizes the risks associated with market volatility and economic uncertainty, which could impact customer spending on identity verification services. The outlook remains cautious, with substantial doubt about the company's ability to achieve profitability in the near term, necessitating ongoing efforts to secure funding and expand its customer base.