authID secures $8.15 million in share and warrant sale

DENVER - AuthID Inc. (NASDAQ: AUID), a prominent biometric identity verification provider with a current market capitalization of $70.77 million and trading at $6.48 per share, has announced a definitive agreement for a registered direct offering expected to generate approximately $8.15 million. The company plans to sell around 1,811,111 shares and/or Pre-Funded Warrants, each priced at $4.50. The offering is scheduled to close on or about April 1, 2025, contingent upon standard closing conditions. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a strong current ratio of 3.41, indicating solid short-term liquidity.

Dominari Securities LLC and Madison Global Partners, LLC served as co-placement agents for the transaction. The proceeds from the offering are intended for working capital and general corporate purposes.

In conjunction with the offering, authID will establish an Advisory Board with members who have deep industry and government experience. Eric Swider, CEO of Digital World Acquisition Corp. (NASDAQ: DWAC) and co-founder of Rubidex, and Donald Nitti, Founder and Chief Investment Officer of Chroma Ventures, are among the appointed advisors.

Swider expressed his enthusiasm for joining authID as both an advisor and investor, citing the growing importance of biometrics in technology and AI. He anticipates leveraging his business relationships to foster market adoption and growth for authID’s solutions.

Nitti also conveyed excitement about working with authID’s management team, praising their technology as "best-in-class" and envisioning the integration of their solutions across various companies.

Kyle Wool, President of Dominari Holdings Inc. (NASDAQ: DOMH), highlighted his firm’s commitment to supporting American companies and praised authID for protecting citizens from cyber threats like deepfake technologies.

Rhon Daguro, CEO of authID, emphasized the significance of the advisors’ appointments, stating they will help expand the company’s reach and open new opportunities for its biometric authentication solutions. He reiterated authID’s mission to eliminate fraud and prevent account takeovers. InvestingPro analysis reveals impressive revenue growth of 365.86% in the last twelve months, though the company remains in investment phase with negative earnings. Subscribers can access 7 additional ProTips and comprehensive financial metrics in the Pro Research Report.

The shares and warrants in this offering are available under a shelf registration statement filed with the Securities and Exchange Commission (SEC) and declared effective as of December 13, 2024. The stock has shown positive momentum with a 7.64% return year-to-date, though InvestingPro’s Fair Value analysis suggests the stock is slightly overvalued at current levels. Details regarding the prospectus supplement and accompanying prospectus for the offering will be accessible on the SEC’s website.

This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy in any state or jurisdiction where such an offer would be unlawful.

In other recent news, AuthID Inc. reported a significant increase in its fourth-quarter revenue for 2024, reaching $200,000, compared to $70,000 in the same period the previous year. Despite this growth, the company’s annual recurring revenue (ARR) decreased to $800,000 from $1 million in the previous quarter. AuthID also launched a new biometric authentication product called Privacy Key. Additionally, the company secured a $10 million contract over three years with a next-generation AI partner in India, marking the largest deal in its history. AuthID’s total revenue for the year rose to $890,000 from $190,000 the previous year, although the net loss for the full year was $14.3 million, an improvement from the $19.6 million loss the previous year. The company is actively working on expanding its customer base, with plans to target Fortune 500 companies in 2025. Moreover, AuthID is developing an identity exchange between the US and Japan, as part of its strategic expansion efforts.

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