Company Overview
authID Inc. operates as a technology provider dedicated to delivering a biometric identity platform on a global scale. The firm specializes in cloud-based infrastructure that facilitates biometric identity verification by establishing user identity through various ground truth sources, including government-issued identity documents such as national passports. This entity functions within the broader technology sector, specifically categorized under the software infrastructure industry, which implies a focus on providing essential digital tools rather than end-user consumer products. The company's current market capitalization stands at $18.39M, supported by an annual revenue of $1.83M and a workforce of 46 employees. These specific financial figures indicate that authID Inc. operates as a small-cap entity with a limited revenue base relative to its market valuation, suggesting the stock price is heavily weighted by investor expectations regarding future scalability rather than current profitability.
Financial Health
The company reported a revenue of $1.83M over the trailing twelve months, yet it recorded a net income of $-18,491,942 and an EBITDA of $-18,875,040 during the same period. The substantial gap between the positive revenue figure and the negative net income reveals a cost structure where operating expenses significantly exceed total sales, indicating that the business is currently in a heavy investment or burn phase. Free cash flow for the trailing twelve months was $-8,451,371, which signifies that the company is spending more cash than it generates from operations, resulting in limited financial flexibility for immediate capital expenditures or debt repayment without external financing. Despite the negative earnings, the gross margin is reported at 100.0%, suggesting that the cost of goods sold is negligible compared to the revenue generated, while the operating margin is listed at 4930.0% and the profit margin at 0.0%, figures that require careful interpretation given the overall net loss and likely represent data anomalies or specific accounting adjustments within the reporting period. The company holds $4.90M in cash and has no recorded debt, as the debt metric is listed as N/A, meaning the balance sheet is technically un-leveraged and relies entirely on its cash reserves to sustain operations. The current ratio stands at 3.53, which indicates a robust short-term liquidity position where current assets are more than three times the current liabilities, providing a comfortable buffer against short-term obligations. Furthermore, the Return on Equity is -150.9% and the Return on Assets is -83.2%, metrics that reveal management is currently utilizing shareholder and asset bases to generate negative returns, reflecting the early-stage nature of the business model.
Valuation Assessment
The trailing P/E ratio and forward P/E ratio are both listed as N/A due to the company's lack of earnings, which implies that traditional earnings-based valuation multiples cannot be applied to assess the company's current profitability trajectory. The price-to-book ratio is 1.84, indicating that the market values the company at 84% above its book value per share, suggesting a market premium assigned to the company's intangible assets and growth potential despite current losses. The price-to-sales ratio is 10.02, and the EV/EBITDA is -0.61, alternative valuation metrics that suggest the market is pricing in significant future growth expectations, as the negative EV/EBITDA confirms the company is not yet profitable. The stock has a 52-week high of $9.58 and a 52-week low of $0.84, and without a specific current price provided in the facts, the valuation range establishes the historical volatility corridor within which the stock has traded over the last year. The beta value is 1.61, which means the stock is expected to be 61% more volatile than the broader market, indicating higher risk for investors sensitive to market fluctuations.
Growth & Income
The revenue growth year-over-year and earnings growth year-over-year are both listed as N/A, preventing a direct calculation of whether earnings are growing faster or slower than revenue, but the absence of growth rates aligns with the company's status as a pre-profitability venture. Since the company does not pay dividends, the dividend yield is N/A and the payout ratio is 0.0%, which explains that the firm reinvests all available earnings or cash reserves back into the business to fund expansion rather than distributing income to shareholders. The overall growth and income profile is characterized by zero current income distribution and undefined historical growth rates, reflecting a strategy focused on market penetration and product development rather than immediate shareholder returns.