[Management View]
authID reported its highest quarterly revenue in company history at $1.4 million, driven by new contract activations and strategic partnerships. Key strategic priorities include the launch of the IDX platform for supply chain identity management and the enhancement of the Privacy Key product.

[Outlook]
Management reiterated its $18 million BAR bookings target for 2025 and expects revenue from the Proof partnership to begin impacting results in Q3 2025. Future plans include expanding the deployment of the Privacy Key product and commercializing cross-country reusable identity solutions with NEC.

[Financial Performance]
Revenue for Q2 2025 was $1.4 million, up from $300,000 in Q2 2024 and Q1 2025. Operating expenses increased to $5.9 million from $3.6 million in Q2 2024 and $4.7 million in Q1 2025. Net loss was $4.4 million, compared to $3.3 million in Q2 2024 and $4.3 million in Q1 2025. Adjusted EBITDA loss was $3.4 million, compared to $2.5 million in Q2 2024 and $3.9 million in Q1 2025.

[Q&A Highlights]
Question 1: Can you talk about the $1.2 million of deferred revenue in the quarter and its recurring nature?
Answer: The $1.2 million came from invoices for customer contracts not yet recognized as revenue. These invoices are recurring and will contribute to GAAP revenue in subsequent quarters.

Question 2: Can you provide details on the Proof partnership and when revenue will start?
Answer: The Proof partnership has two parts: onboarding capabilities that can be realized quickly and a strategic integration of biometrics into Proof's platform. Revenue from the first part is expected to start soon, potentially within the next few days.

Question 3: What is the status of the Indian contract signed last November?
Answer: The contract is live, and revenue recognition has started. Despite a delayed start, the full $3.3 million annual commitment is expected to be recognized in the first contract year.

Question 4: Are you comfortable with the $18 million BAR bookings target for 2025?
Answer: Yes, management remains confident in achieving the $18 million target.

Question 5: Have you completed the necessary software upgrades for the Proof and NEC deals?
Answer: The software is at a level where deals can be won, though ongoing improvements will continue.

Question 6: Can you elaborate on the pilots and their scope?
Answer: Pilots involve deploying technology in live production environments with a small percentage of the customer base, allowing for faster go-live and revenue recognition.

[Sentiment Analysis]
Analysts were generally positive, focusing on the significant revenue growth and strategic partnerships. Management was confident and optimistic about future growth and revenue targets.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | Q1 2025 |
|----------------------------|---------------|---------------|---------------|
| Revenue | $1.4 million | $300,000 | $300,000 |
| Operating Expenses | $5.9 million | $3.6 million | $4.7 million |
| Net Loss | $4.4 million | $3.3 million | $4.3 million |
| Adjusted EBITDA Loss | $3.4 million | $2.5 million | $3.9 million |
| ARR | $5.8 million | $1.1 million | $1.2 million |
| BAR | $2.2 million | $600,000 | $10,000 |
| RPO | $13.8 million | $4.2 million | $13.9 million |
| Cash Balance | $8.3 million | N/A | N/A |

[Risks and Concerns]
- Increased operating expenses due to higher headcount in sales and R&D.
- Credit risk assessment related to certain customer contracts.
- Dependence on successful integration and commercialization of new products and partnerships.

[Final Takeaway]
authID achieved record revenue in Q2 2025, driven by new contracts and strategic partnerships. The company is on track to meet its $18 million BAR bookings target for the year, with significant contributions expected from the Proof partnership. While operating expenses and net losses have increased, the company has strengthened its balance sheet through recent capital raises. The shift to performance-based pilots is expected to accelerate go-live times and revenue recognition, positioning authID for continued growth.