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Thomas Szoke, the Chief Technology Officer (CTO) of authID Inc. (NASDAQ:AUID), recently sold a significant number of shares in the company. According to the latest filings, Szoke parted with 5,000 shares on August 26 at an average price of $8.3, 2,466 shares on August 23 at an average price of $8.106, and 9,506 shares on August 22 at an average price of $8.0182. The total value of the shares sold across these dates amounted to over $137,710.
The transactions took place within a price range of $8.0182 to $8.3 per share, as indicated by the weighted average purchase price. The sales were executed on the open market, with different prices achieved for the shares sold on the same day through orders executed by a broker-dealer. The filing notes that all transactions that occurred within a one-dollar price range have been reported on a single line, offering to provide full information regarding the number of shares sold at each separate price upon request.
Following these transactions, Szoke's direct ownership in authID Inc. has been adjusted to reflect the shares sold. It's important to note that the shares held by Szoke's wife, Ginta Ozola-Szoke, are held indirectly and were not part of this selling activity.
Investors often keep a close watch on insider transactions such as these, as they can provide valuable insights into an insider's view of the company's current valuation and future prospects. However, these transactions do not necessarily indicate a change in company fundamentals, and investors should consider a wide range of factors when assessing the investment potential of authID Inc.
In other recent news, authID Inc. has reported a surge in Q1 2024 revenue, reaching $0.16 million, a significant increase from $0.04 million in the same period last year. However, the company disclosed a net loss of $3.06 million, primarily due to increased operating costs and non-cash charges. The company has also announced a partnership with DataVisor to enhance security protocols against financial cybercrime and another agreement with Kaiasoft.com to offer biometric capabilities to clients in America and Europe.
In corporate restructuring, authID has reduced its authorized shares from 250 million to 150 million and secured additional funding through a registered stock offering of 1,464,965 shares, with Madison Global Partners (NYSE:GLP), LLC, as the placement agent. The company is expecting to raise approximately $11 million before deductions from this offering, which will be used to expand sales and operations.
As for future expectations, authID aims to reach a booked Annual Recurring Revenue (bARR) of $9 million in 2024 and anticipates total revenue for the year to be between $1.4 million to $1.6 million. These are the latest developments in authID's ongoing efforts to optimize its capital and governance strategies.
InvestingPro Insights
As investors evaluate the insider selling activity by authID Inc.'s CTO Thomas Szoke, it's essential to consider the company's financial health and market performance. InvestingPro data shows that authID Inc. has a market capitalization of $91.19 million and is trading at a negative price-to-earnings (P/E) ratio of -5.59, which becomes more negative when adjusted for the last twelve months as of Q2 2024 (-7.14). This indicates that the company is not currently profitable.
The company's revenue growth has been impressive, with a 49.1% increase over the last twelve months as of Q2 2024, and an even more striking quarterly revenue growth of 655.04% in Q2 2024. Despite these growth figures, authID Inc. has an operating income margin of -2438.12%, reflecting significant challenges in translating revenue into operating income.
Two InvestingPro Tips that stand out for authID Inc. are that the company holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, which may offer some financial stability. However, the company has not been profitable over the last twelve months and is trading at a high revenue valuation multiple. Additionally, authID Inc. does not pay a dividend to shareholders, which may influence the investment decisions of income-focused investors.
For investors looking for deeper insights into authID Inc., there are additional InvestingPro Tips available, which can be accessed through the dedicated page for authID Inc. on InvestingPro: https://www.investing.com/pro/AUID.
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