authID Inc. (NASDAQ: AUID) (“authID” or the “Company”), a leading
provider of innovative biometric identity verification and
authentication solutions, today announced it has entered into a
definitive agreement with investors to sell 1,574,990 shares of its
common stock (the “Shares”), pursuant to a registered direct
offering (the “Registered Direct Offering”). The purchase price for
one Share will be $6.00. The aggregate gross proceeds from the
Offering are expected to be approximately $9.4 million before
deducting placement agent fees and other estimated offering
expenses.
“authID has built significant sales momentum
that allowed us to secure a record $1 million in booked Annual
Recurring Revenue (“bARR”) during the recent third quarter. With an
expansion of prospects and use-cases in our sales pipeline, we
believe we are well positioned to deliver additional sales wins and
continued growth. As stated on our Q3 earnings call, we have
doubled our estimated bARR target from $3 million to $6 million by
Q2 2024. We are also pleased to confirm a target of $9M in bARR for
the full calendar and fiscal year 2024” said Rhon Daguro, CEO of
authID. “In the last few months, we have preserved the best of what
authID had, while adding deep domain expertise in identity to
create a best of breed team for sales and execution.”
Continued Daguro, “This fully subscribed
investment by the shareholders, fellow Directors, and new investors
is a tremendous sign of confidence in our mission, and we thank all
investors for their continuing support. This funding round
will allow us to deepen our bench and continue to innovate our
product roadmap with technology that stays ahead of fraud trends
and strengthens our positioning as thought leaders to our
customers.”
The closing of the Registered Direct Offering is
expected to occur on or about November 22, 2023, subject to the
satisfaction of customary closing conditions.
Madison Global Partners, LLC, acted as sole
placement agent for the offering.
authID intends to use the net proceeds for
working capital and general corporate purposes.
The Shares offered in the Registered Direct
Offering are being offered by the Company pursuant to a shelf
registration statement (Registration No. 333-260641) filed with the
Securities and Exchange Commission (the “SEC”) and declared
effective by the SEC on November 10, 2021. The offering is being
made only by means of a prospectus supplement and accompanying
prospectus. A prospectus supplement and accompanying prospectus
relating to the Registered Direct Offering will be filed with the
SEC and, when available, may be obtained for free on the SEC’s
website located at http://www.sec.gov. Electronic copies of the
final prospectus supplement and accompanying prospectus relating to
the Registered Direct offering may be obtained by contacting
Madison Global Partners, LLC, Attention: David S. Kaplan, Managing
Partner 350 Motor Parkway, Suite 205, Hauppauge, NY 11788, by email
at info@madisonglobalpartners.com, or by telephone at (646)
690-0330.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state or jurisdiction in which
such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About authID Inc.
authID (Nasdaq: AUID) ensures cyber-savvy
enterprises “Know Who’s Behind the Device” for every customer or
employee login and transaction. Through its easy-to-integrate,
patented, biometric identity platform, authID quickly and
accurately verifies a user’s identity, eliminating any assumption
of ‘who’ is behind a device and preventing cybercriminals from
taking over accounts. authID combines digital onboarding, FIDO2
login, and biometric authentication and account recovery, with a
fast, accurate, user-friendly experience – delivering identity
verification in 700ms. Establishing a biometric root of trust for
each user that is bound to their accounts and provisioned devices,
authID stops fraud at onboarding, eliminates password risks and
costs, and provides the faster, frictionless, and more accurate
user identity experience demanded by operators of today’s digital
ecosystems. For more information, please visit www.
https://authid.ai/.
Media Contacts
authID Media Contact Rhoniel A. Daguro, CEO
Investor-relations@authid.ai
Cautionary Statement Regarding
Forward-Looking Statements:
This Press Release includes “forward-looking
statements.” All statements other than statements of historical
facts included herein, including booked Annual Recurring Revenue
are forward-looking statements. Actual results may vary materially
from the results anticipated by these forward-looking statements as
a result of a variety of risk factors. See the Company’s Annual
Report on Form 10-K for the Fiscal Year ended December 31, 2022,
filed at www.sec.gov and other documents filed with the SEC for
risk factors which investors should consider. These forward-looking
statements speak only as to the date of this release and cannot be
relied upon as a guide to future performance. authID expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements contained in this
release to reflect any changes in its expectations with regard
thereto or any change in events, conditions, or circumstances on
which any statement is based.
Non-GAAP Financial Information
The Company provides certain non-GAAP financial
measures in this statement. These non-GAAP key business indicators,
which include bARR and ARR, should not be considered replacements
for and should be read in conjunction with the GAAP financial
measures.
Management believes that bARR and ARR, when
viewed with our results under GAAP, provide useful information
about the direction of future growth trends of the Company’s
revenues. We also rely on bARR as one of a number of primary
measures to review and assess the sales performance of our Company
and our management team in connection with our executive
compensation. The Company defines booked Annual Recurring Revenue
or bARR, as the amount of annual recurring revenue represented by
the estimated amounts of annual recurring revenue we believe will
be earned under such contracted orders, looking out eighteen months
from the date of signing of each customer contract.
The Company defines Annual Recurring Revenue or
ARR, as the amount of recurring revenue derived from sales of our
Verified products during the last three months of the relevant
period as determined in accordance with GAAP, multiplied by
four.
bARR may be distinguished from ARR, as bARR does
not take specifically into account the time to implement any
contract for Verified, nor for any ramp in adoption, or seasonality
of usage of the Verified products but is based on the assumption
that 18 months after signing these matters will have been generally
resolved. Furthermore, bARR is based on estimates of future
revenues under particular contracts, whereas ARR, whilst also
forward looking, is based on historical revenues recognized in
accordance with GAAP during the relevant period. bARR and ARR have
limitations as analytical tools, and you should not consider them
in isolation from, or as a substitute for, analysis of our results
as reported under GAAP. Some of these limitations are:
-
bARR & ARR should not be considered as predictors of future
revenues but only as indicators of the direction in which revenues
may be trending. Actual revenue results in the future as determined
in accordance with GAAP may be significantly different to the
amounts indicated as bARR or ARR at any time.
-
bARR and ARR are to be considered “forward looking statements” and
subject to the same risks, as other such statements (see note on
“Forward Looking Statements” above).
-
bARR & ARR only include revenues from sale of our Verified
products and not other revenues.
-
bARR & ARR do not include amounts we consider as non-recurring
revenues (for example one-off implementation fees).
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