authID Inc
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
AUID$0.19-12.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0001213900-24-043594
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0001213900-24-066615
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 63 previous paragraphs and 62 current paragraphs.
46 unchanged; 14 reworded; 2 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Cash used in investing activities for the six months ended June 30, 2024 was approximately $16,000, compared with $0 for six months ended June 30, 2023, for the payment of patent costs.
Current report
Cash provided by financing activities in the six months ended June 30, 2024 consisted of approximately $10.0 million in proceeds from the sale of common stock, net of offering costs.
Removed paragraphs (3)
Previous report
Discontinued Operations
Previous report
On May 4, 2022, the Board of Directors of authID (the “Board” or the “Board of Directors”) approved a plan to exit from certain non-core activities comprising the MultiPay correspondent bank payments services in Colombia. On June 30, 2023, the Company completed the sale of its legacy payments software by MultiPay. MultiPay S.A.S., and IDGS S.A.S operations are presented as discontinued operations in the Consolidated Statements of Operations during the year ended December 31, 2023, as they met the criteria for discontinued operations under applicable accounting guidance.
Previous report
The Company did not have any cash flows investing activities for the three months ended March 31, 2024 and 2023.
Reworded paragraphs (14)
Previous wording
As of March 31, 2024, the Company had an accumulated deficit of approximately $162.6 million. For the three months ended March 31, 2024, the Company earned revenue from continuing operations of approximately $0.16 million, used approximately $2.9 million to fund its operations, and incurred a net loss of approximately $3.1 million. The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders and noteholders, the ability of the Company to obtain additional debt or equity financing to continue operations, the Company’s ability to generate sufficient cash flows from operations, successfully locating and negotiating with other business entities for potential acquisition and /or acquiring new clients to generate revenues and cash flows. In 2024 and 2025, the Company plans to raise additional funds to support its operations and investments as it seeks to create a sustainable organization. Our growth-oriented business plan to offer products to our customers will require continued capital investment and there is no guarantee that such financing will be available, or available on acceptable terms.
Current wording
As of June 30, 2024, the Company had an accumulated deficit of approximately $165.8 million. For the six months ended June 30, 2024, the Company earned revenue from continuing operations of approximately $0.4 million, used approximately $5.7 million to fund its operations, and incurred a net loss of approximately $6.3 million. The continuation of the Company as a going concern is dependent upon financial support from the Company’s stockholders and noteholders, the ability of the Company to obtain additional debt or equity financing to continue operations, the Company’s ability to generate sufficient cash flows from operations, successfully locating and negotiating with other business entities for potential acquisition and /or acquiring new clients to generate revenues and cash flows. In June 2024, the Company raised approximately $10.0 million after expenses from existing and new stockholders through the sale of Common Stock pursuant to a registered direct offering. Going forward, the Company plans to raise additional funds to support its operations and investments as it seeks to create a sustainable organization. Our growth-oriented business plan to offer products to our customers will require continued capital investment and there is no guarantee that such financing will be available, or available on acceptable terms.
Previous wording
Three Months Ended March 31, 2024 and March 31, 2023 – Continuing Operations
Current wording
Three and Six Months Ended June 30, 2024 and June 30, 2023 – Continuing Operations
Previous wording
During the three months ended March 31, 2024, the Company’s revenues were approximately $157,000 compared to approximately $38,000 in the three months ended March 31, 2023, principally due to the recognition of revenue from new customer contracts signed in the 2 nd half of 2023.
Current wording
During the three and six months ended June 30, 2024, the Company’s revenues were approximately $280,000 and $438,000, respectively, compared to approximately $37,000 and $75,000, respectively, in the three and six months ended June 30, 2023, principally due to the recognition of revenue from new customer contracts signed in the 2 nd half of 2023.
Previous wording
During the three months ended March 31, 2024 compared to the three months ended March 31, 2023, general and administrative expense increased by approximately $1.2 million. This was comprised of a one-time event, representing approximately $2.5 million reversal of stock-based compensation in Q1 2023 on stock awards with market vesting conditions resulting from Q1 2023 terminations, which was not repeated in 2024 and an approximately $1.3 million reduction in expense due to cost savings from the 2023 restructuring initiative.
Current wording
During the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023, general and administrative expense increased by approximately $0.2 million and $1.4 million, respectively. The increase for the six months period was comprised of a one-time event, representing an approximately $2.5 million reversal of stock-based compensation in Q1 2023 on stock awards with market vesting conditions resulting from Q1 2023 terminations, which was not repeated in 2024 and an approximately $1.1 million reduction in expense due to cost savings from the 2023 restructuring initiative.
Previous wording
During the three-month period ended March 31, 2024 compared to March 31, 2023, research and development expenses increased by approximately $1.1 million, principally related to the one-time reversal of stock-based compensation in Q1 2023 on stock awards with market vesting conditions resulting from Q1 2023 terminations, which was not repeated in 2024.
Current wording
During the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023, research and development expenses increased by approximately $0.7 million and $1.8 million, respectively. The increase was comprised of re-investment in employees and contractors following the 2023 restructuring as well as $0.8 million from the one-time reversal of stock-based compensation in Q1 2023 on stock awards with market vesting conditions resulting from Q1 2023 terminations, which was not repeated in 2024.
Previous wording
During the three months ended March 31, 2024 compared to March 31, 2023, depreciation and amortization expense was approximately $0.03 million less as the Company reduced the value of certain legacy business asset values.
Current wording
During the three and six months ended June 30, 2024 compared to June 30, 2023, depreciation and amortization expense was approximately $0.03 million and $0.06 million less, respectively, as the Company reduced the value of certain legacy business asset values.
Previous wording
Interest expense, net includes interest expense, debt issuance and discount amortization expense. Interest expense decreased by approximately $0.8 million during the three-month period ended March 31, 2024 compared to March 31, 2023 principally due to the exchange of Convertible Notes for common stock in May 2023.
Current wording
Interest expense, net includes interest expense, debt issuance and discount amortization expense. Interest expense decreased by approximately $0.3 million and $1.1 million during the three and six months ended June 30, 2024 compared to June 30, 2023 principally due to the exchange of Convertible Notes for common stock in May 2023.
Previous wording
Three Months Ended March 31, 2024 and March 31, 2023 – Discontinued Operations
Current wording
Three and Six Months Ended June 30, 2024 and June 30, 2023 – Discontinued Operations
Previous wording
Although the Company exited the MultiPay business in Colombia, it still maintains an authID customer support and operations team in Bogota which performs essential functions to support the global operations of our Verified product.
Current wording
Although the Company exited the MultiPay business in Colombia, it still maintains an authID customer support and operations team in Bogota which performs essential functions to support the global operations of our Verified and Proof products.
Previous wording
The Company has approximately $7.2 million of cash on hand and approximately $6.7 million of working capital as of March 31, 2024.
Current wording
The Company has approximately $14.4 million of cash on hand and approximately $13.9 million of working capital as of June 30, 2024.
Previous wording
Cash used in operating activities was approximately $2.9 million and $2.2 million in the three months ended March 31, 2024 and 2023, respectively.
Current wording
Cash used in operating activities was approximately $5.7 million and $4.2 million in the six months ended June 30, 2024 and 2023, respectively.
Previous wording
Cash provided by financing activities in the three months ended March 31, 2023 consisted of approximately $0.5 million from an initial drawdown net of debt issuance costs under the Company’s A&R Facility Agreement.
Current wording
Cash provided by financing activities in the six months ended June 30, 2023 consisted of approximately $6.4 million in proceeds from the sale of common stock, net of offering costs, and $0.5 million initial drawdown net of debt issuance costs under the Company’s A&R Facility Agreement.
Previous wording
In 2024 and 2025, the Company will need to raise additional funds to support its operations and investments as it seeks to create a sustainable organization. Our growth-oriented business plan to offer products to our customers will require continued capital investment and there is no guarantee that such financing will be available, or available on acceptable terms.
Current wording
In 2025, the Company will need to raise additional funds to support its operations and investments as it seeks to create a sustainable organization. Our growth-oriented business plan to offer products to our customers will require continued capital investment and there is no guarantee that such financing will be available, or available on acceptable terms.
Previous wording
The war in Ukraine and the Middle East may impact the Company and its operations in a number of different ways, which are yet to be fully assessed and are therefore uncertain. The Company’s principal concern is for the safety of the personnel who support from those regions. The Company works with third party sub-contractors for outsourced services, including software engineering and development, some of whom are based in Eastern Europe. The Company also works with outsourced engineers and developers and third-party providers in other parts of the world, including the United States, Europe, India, and Latin America. While the continuing impact of this conflict and the response of the United States and other countries to it by means of trade and economic sanctions, or other actions is still unknown, it could disrupt our ability to work with certain contractors. The Company has taken steps to diversify its sub-contractor base, which may in the short term give rise to additional costs and delays in delivering software and product upgrades.
Current wording
The war in Ukraine and the Middle East may impact the Company and its operations in a number of different ways, which are yet to be fully assessed and are therefore uncertain. The Company’s principal concern is for the safety of the personnel who support us from those regions. The Company works with third party sub-contractors for outsourced services, including software engineering and development, some of whom are based in Eastern Europe. The Company also works with outsourced engineers and developers and third-party providers in other parts of the world, including the United States, Europe, India, and Latin America. While the continuing impact of this conflict and the response of the United States and other countries to it by means of trade and economic sanctions, or other actions is still unknown, it could disrupt our ability to work with certain contractors. The Company has taken steps to diversify its sub-contractor base, which may in the short term give rise to additional costs and delays in delivering software and product upgrades.