authID Reports Financial and Operating Results for the First Quarter Ended March 31, 2025

DENVER, May 13, 2025 (GLOBE NEWSWIRE) -- authID$(R)$ (Nasdaq: AUID) ("authID" or the "Company"), a leading provider of biometric identity verification and authentication solutions, today reported financial and operating results for the first quarter ended March 31, 2025.

First Quarter 2025 vs. First Quarter 2024 Financial Summary

   -- Total revenue for the quarter increased to $0.30 million, compared to 
      $0.16 million a year ago. 
 
   -- Operating expenses were $4.7 million, compared to $3.3 million a year 
      ago. 
 
   -- Net loss was $4.3 million, or $0.40 per share, compared to a loss of $3.1 
      million, or $0.32 per share a year ago. 
 
   -- Adjusted EBITDA Loss of $3.9 million (non-GAAP measure as defined below), 
      compared with $2.4 million a year ago. 
 
   -- Gross bARR (Booked Annual Recurring Revenue) of $0.01 million (non-GAAP 
      measure as defined below), compared with $0.10 million a year ago. 

"I'm incredibly excited about authID's growth prospects in 2025 and beyond," said Rhon Daguro, authID's Chief Executive Officer. "We have solidified our foundation to become a leader in the evolving and fast-growing biometric authentication market while making progress on our ambitious 2025 goals. We are continuing to advance our conversations with key enterprise and platform partner prospects in order to achieve our bookings targets and are intensifying our focus on the large enterprise and large channel OEM segments as we move through the second quarter.

"We recently secured nearly $9 million in capital through two financing rounds to improve our balance sheet, broaden our investor base and provide us with additional expertise and support as we scale our business and invest in new opportunities. Through these efforts we have also created an advisory board comprised of two new expert advisors, Eric Swider and Donald Nitti. Both leaders have extensive experience in different industry and government sectors where authID's biometric identity solutions can address critical needs.

"As we move through the year, we continue to expect to close multiple Fortune 500 and multi-national customers in 2025, and we are currently in the late stages of our sales cycle with these potential customers. I'm pleased with our momentum to date and remain confident that we will sign new customers and drive significant growth towards our $18 million bookings target for 2025."

Recent Business and Operational Highlights

   -- Secured nearly $9 million dollars after expenses from existing and new 
      shareholders through two registered direct offerings, while also creating 
      an advisory board comprised of two new expert advisors, Eric Swider and 
      Donald Nitti. 
 
   -- Signed a paid live production trial agreement with a Global Fortune 500 
      prospect to deliver authID's solution in a controlled rollout. Upon 
      completion, authID expects to secure a longer-term agreement. 
 
   -- Advanced to final stages with a Global Fortune 500 biometric hardware 
      provider to embed authID into a solution offering reusable, interoperable 
      identity credentials for employee workforces. 
 
   -- Confirmed as the selected vendor by one of the largest identity fraud 
      platforms and are in the final stages of contract negotiations. 
 
   -- Launched efforts into the Public Sector by providing a reuseable identity 
      platform for removing the barriers between siloed systems for government 
      workforces. 
 
   -- Began integration with a blockchain-based data privacy and security 
      platform to validate identity of data owners through privacy preserving 
      biometrics which bring authID's technology into smart cities in South 
      America and India to start. 
 
   -- Identified new opportunities in the Indian banking sector with our Indian 
      partner to protect high value transactions and account access with 
      authID's PrivacyKey technology 
 
   -- Successfully delivered a proof of concept and entered into contract 
      negotiations with a Fortune 500 prospect to deliver identity verification 
      and biometric solutions. 
 
   -- Named "Best ID Management Platform" Award in 2025 FinTech Breakthrough 
      Awards for the third time. authID was recognized for its groundbreaking 
      biometric identity verification technology, which has set a new standard 
      for precision, speed, and data privacy in the fintech industry, as well 
      as the verification landscape at large. 

Financial Results for the First Quarter Ended March 31, 2025

Total revenue for the three months ended March 31, 2025 was $0.30 million, compared with $0.16 million a year ago.

Operating expenses for the three months ended March 31, 2025, were $4.7 million, compared to $3.3 million a year ago. The 2025 increase is primarily due to increased headcount investment in sales and R&D.

Net loss for the three months ended March 31, 2025 was $4.3 million, of which non-cash charges were $0.5 million, compared with a net loss of $3.1 million a year ago, of which non-cash charges were $0.8 million

Loss per share for the three months ended March 31, 2025 was $0.40, compared with $0.32 a year ago.

Adjusted EBITDA loss was $3.9 million for the three months ended March 31, 2024, compared with $2.4 million a year ago. The increase in Adjusted EBITDA loss is primarily driven by the increase in headcount investment in sales and R&D. Please refer to Table 1 for reconciliation of net loss to Adjusted EBITDA (a non-GAAP measure).

Remaining Performance Obligation (RPO) as of March 31, 2025, was $13.85 million, of which $1.01 million is held as deferred revenue and $12.84 million is related to other non-cancellable contracted amounts, compared to RPO of $4.03 million as of March 31, 2024. The Company expects to recognize the full RPO of $13.85 million over the entire life of the contracts, which are typically signed with a 3-year term.

The gross amount of Booked Annual Recurring Revenue or bARR, (a non-GAAP measure, as defined below), signed in the first quarter of 2025 was $0.01 million, down from $0.10 million of gross bARR a year ago. The net amount of bARR was negative $0.13 million compared to $0.10 million of net bARR signed in the comparable period in 2024. The Q1 bARR is comprised of $0 million in Committed Annual Recurring Revenue (cARR) and $0.01 million in estimated Usage Above Commitments (UAC).

The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, due to certain customers experiencing delays in Production Go-Live timing and volume ramping. See below for further definition and explanation of ARR and bARR, non-GAAP measures.

Conference Call

A conference call and webcast will be held today at 5.00 p.m. EDT, hosted by authID Chief Executive Officer, Rhon Daguro and Chief Financial Officer, Ed Sellitto to discuss the financial results and provide a corporate update. To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will be available at webcast registration and on the "Events & Presentations" page of the Company's website at investors.authid.ai. Only participants on the live conference call will be able to ask questions.

A replay of the event and a copy of the presentation will also be available for 90 days at authID's Investor Relations site.

About authID Inc.

authID (Nasdaq: AUID) ensures enterprises "Know Who's Behind the Device$(TM)$" for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today's digital ecosystem.

For further information please visit authid.ai

Investor Relations Contacts

authID Investor Relations

investor-relations@authID.ai

Media Contacts

Walter Fowler

1-631-334-3864

wfowler@nexttechcomms.com

Forward-Looking Statements

This Press Release includes "forward-looking statements." All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, growth and sales, potential contract signings, booked Annual Recurring Revenue (bARR) (and its components cARR and UAC), Annual Recurring Revenue $(ARR)$, cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID's present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company's ability to attract and retain customers; successful implementation of the services to be provided under new customer contracts and their adoption by customers' users; the Company's ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international

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