authID Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Nov 7, 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 2024-06-30; filed 2024-08-08.
0001213900-24-066615
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001213900-24-095394
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 62 previous paragraphs and 63 current paragraphs.
48 unchanged; 13 reworded; 2 added; 1 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
Interest expense
Current report
The Multipay entity has been dissolved as of August 2, 2024.
Removed paragraphs (1)
Previous report
Interest expense, net
Reworded paragraphs (13)
Previous 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.
Current wording
As of September 30, 2024, the Company had an accumulated deficit of approximately $169.2 million. For the nine months ended September 30, 2024, the Company earned revenue from continuing operations of approximately $0.7 million, used approximately $8.5 million to fund its operations, and incurred a net loss of approximately $9.6 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 and Six Months Ended June 30, 2024 and June 30, 2023 – Continuing Operations
Current wording
Three and Nine Months Ended September 30, 2024 and September 30, 2023 – Continuing Operations
Previous 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.
Current wording
During the three and nine months ended September 30, 2024, the Company’s revenues were approximately $249,000 and $687,000, respectively, compared to approximately $43,000 and $118,000, respectively, in the three and nine months ended September 30, 2023, principally due to the recognition of revenue from new customer contracts signed in the second half of 2023.
Previous 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.
Current wording
During the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, general and administrative expense decreased by approximately $0.9 million and increased by $0.5 million, respectively. The decrease for the three month period was driven by lower stock-based compensation expense, while the increase for the nine month period reflected a one-time event in 2023, 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. This increase was partially offset by the reduction in employee-related expense due to cost savings from the 2023 restructuring initiative.
Previous 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.
Current wording
During the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, research and development expenses increased by approximately $0.9 million and $2.7 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 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.
Current wording
During the three and nine months ended September 30, 2024 compared to September 30, 2023, depreciation and amortization expense was approximately $0.02 million and $0.08 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 $0.3 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.
Current wording
Interest expense includes interest expense, debt issuance and discount amortization expense. Interest expense remained flat and increased $1.1 million, respectively, during the three and nine months ended September 30, 2024 compared to September 30, 2023 principally due to the exchange of Convertible Notes for common stock in May 2023.
Previous wording
Three and Six Months Ended June 30, 2024 and June 30, 2023 – Discontinued Operations
Current wording
Three and Nine Months Ended September 30, 2024 and September 30, 2023 – Discontinued Operations
Previous 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.
Current wording
The Company has approximately $11.7 million of cash on hand and approximately $11.2 million of working capital as of September 30, 2024.
Previous 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.
Current wording
Cash used in operating activities was approximately $8.5 million and $6.2 million in the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
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 wording
Cash used in investing activities for the nine months ended September 30, 2024 was approximately $18,000, compared with $17,000 for the nine months ended September 30, 2023, for purchases of intangible assets.
Previous wording
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.
Current wording
Cash provided by financing activities in the nine months ended September 30, 2024 consisted of approximately $10.0 million in proceeds from the sale of common stock, net of offering costs.
Previous 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.
Current wording
Cash provided by financing activities in the nine months ended September 30, 2023 consisted of approximately $6.3 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.