authID Inc. Annual Report: A Plain-English Guide

I’ve put together this guide to help you understand how authID Inc. performed this year. My goal is to break down their complex financial filings into simple terms so you can decide if this company fits your investment goals.

1. What does this company do?

Think of authID as a "digital bouncer" for businesses. Passwords are easy to steal, and hackers are getting smarter. authID helps companies verify that a person is who they say they are using a quick selfie.

Their platform does four main things:

• Proof: Checks government IDs against a live selfie to stop fake identities.
• Verified: Lets users log in or approve transactions with their face, replacing vulnerable text-message codes.
• PrivacyKey: Verifies identity without storing biometric data, which helps companies follow privacy laws.
• Mandate: A security tool that ensures humans remain responsible for the actions of their AI agents.

2. Financial Performance

The company is in a "growth at all costs" phase. They earn money through subscriptions and usage fees every time a customer uses their platform.

For the year ending December 31, 2025, they brought in about $2.8 million in revenue. Because they are still early-stage, they reported an operating loss of $17.9 million. They have an accumulated deficit of $191.7 million. They burned through $15 million in cash this year—up from $11.6 million in 2024—mostly due to high spending on research, sales, and marketing.

3. Major Wins and Challenges

authID focuses on trust and speed. They help stop the rise of "deepfakes" and account takeovers. Their technology works on any phone and verifies users in under 700 milliseconds.

However, their revenue is "lumpy." They rely on a few large contracts worth $500,000 to $2 million each. These deals take 9 to 18 months to close, which makes it hard to predict their quarterly revenue.

4. Financial Health

The company is in a tough spot. Because they are losing money and haven't reached positive cash flow, they have warned there is "substantial doubt" about their ability to stay in business. They need to raise more money within the next 12 months to keep operating. There is no guarantee they will find this money, or that it won't come at a high cost to current shareholders.

5. Key Risks

Investing in authID is speculative. Here is what management identifies as the primary concerns:

• Going Concern: They burn cash faster than they make it, requiring constant fundraising.
• Dilution: They frequently issue new shares to raise money. This gives you a smaller piece of the company and reduces your share of future earnings.
• Competition: They fight against giants like Okta, Cisco, and Jumio, who have more money and existing customer relationships.
• Regulation: They handle sensitive data. If they break privacy laws, the fines could be devastating.
• AI Risks: If their AI fails to catch a sophisticated deepfake, they could lose major contracts and their reputation.

6. Competitive Positioning

authID is a small player in a huge market. Their success depends on whether large companies choose their specialized "bouncer" technology over the security features already offered by their current software providers.

7. Future Outlook

Management is focused on growth and expects to lose money through 2026 as they pay to acquire new customers. Their future depends on landing more large, multi-million dollar contracts to reach a point where revenue finally covers their costs.

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Final Thought for Investors: authID is currently a high-risk, high-reward play. Because the company is burning cash and has explicitly warned about its ability to continue operations, it is important to weigh the potential of their security technology against the very real possibility that they will need to raise more capital, which could dilute your investment. If you are considering an entry, keep a close eye on their ability to close those large, long-term contracts.