authID Inc. completes $2.1 million stock offering

DENVER - authID Inc. (NASDAQ: AUID), a provider of biometric identity verification solutions, has successfully closed a registered direct offering of common stock, raising approximately $2.1 million in gross proceeds. The transaction, which was finalized today, involved the sale of 373,060 shares at a price of $5.60 per share. The stock, which has seen significant volatility with a 52-week range of $4.01 to $12.31, has experienced an 18% decline in the past week according to InvestingPro data.

The offering was conducted with the leadership of investor Kyle Wool and was facilitated by Dominari Securities LLC and Madison Global Partners, LLC, who served as co-placement agents. The company has stated that the net proceeds from the offering will be allocated towards working capital and general corporate purposes. InvestingPro data shows the company maintains a strong current ratio of 3.41, with cash holdings exceeding debt obligations, though it remains unprofitable with -$14.67M in EBITDA over the last twelve months.

authID’s offering was made possible through a shelf registration statement that was filed with the Securities and Exchange Commission (SEC) and declared effective on December 13, 2024. Investors were able to access the offering’s details via a prospectus supplement and accompanying prospectus, which are available on the SEC’s website.

The company, known for its patented biometric identity platform, is focused on ensuring secure user authentication for digital transactions. authID’s technology is designed to prevent fraud, block deepfakes, and eliminate password-related risks, providing a secure and user-friendly experience for digital ecosystems.

The shares in this offering were sold in accordance with a registration statement and its related prospectus, and the company has emphasized that the press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful.

This news is based on a press release statement from authID Inc. and provides investors with the latest information regarding the company’s financial maneuvers and strategic direction. Investors should note that the company is scheduled to report its next earnings on May 13, 2025. For deeper insights into authID’s financial health, valuation metrics, and growth potential, access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, authID Inc. reported a significant increase in its fourth-quarter revenue for 2024, reaching $200,000 compared to $70,000 the previous year. Despite this growth, the company’s annual recurring revenue fell to $800,000 from $1 million in the third quarter. AuthID also completed a registered offering of common stock and warrants, raising capital through the issuance of 1,361,120 shares of common stock and pre-funded warrants. In another strategic move, authID entered into a definitive agreement for a registered direct offering expected to generate approximately $8.15 million, with proceeds intended for working capital and general corporate purposes.

Additionally, authID announced a $2.1 million stock offering, facilitated by Dominari Securities LLC and Madison Global Partners, LLC, with the proceeds aimed at supporting the company’s working capital needs. The company has also partnered with TechDemocracy to enhance the adoption of passwordless security solutions, with an initial group of 25 TechDemocracy professionals set to be certified on authID’s biometric platforms. This partnership is part of authID’s broader strategy to promote passwordless identity solutions in the cybersecurity industry.

AuthID has also established an Advisory Board, including industry experts Eric Swider and Donald Nitti, to expand its market reach and enhance its biometric authentication solutions. The company emphasizes its mission to combat fraud and prevent account takeovers, with a focus on innovation and strategic expansion in the biometric authentication market. These developments highlight authID’s ongoing efforts to strengthen its financial position and advance its technological capabilities in the industry.

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