AuthID.ai has raised significant investment funding and issued a corporate update signaling that it may be in the early stages of a multi-year growth trajectory.
The biometric identity verification and authentication specialist reported an uptick in revenues for 2021, with sales amounting to $2.3 million, compared to revenues of $2.1 million in 2020. It’s net result, however, was a loss of $17.7 million, up from a net loss of $11.3 million the year before.
That having been said, Ipsidy has now closed a $22.5 million financing round, announcing in a statement that its management believe the funds put Ipsidy on track to attaining “positive cash flow on a current basis entering 2024.”
“I am pleased that we completed this financing round of $22.5 million that will support our projected working capital needs through 2023,” explained AuthID.ai CEO Tom Thimot.
The financing comprised about $9.2 million raised through the issuance of senior secured convertible promissory notes, primarily to previous investors, as well as about $3 million raised through the sale of common shares to a new investor and $300,000 through the sale of common stock to members of the authID.ai management team. The remaining $10 million was raised in the form of borrowing capacity in an arrangement with a current, major investor.
“I want to thank our new and existing investors for this financing, which represents a vote of confidence for our future, and provides us the resources to continue offering innovative technology that helps build a safer digital landscape for all,” said Thimot.
The financing arrangement offers the latest development in a very eventful period for the company. Last June, it announced that it was rebranding from its previous name, Ipsidy, and that it was moving its headquarters from Long Beach, New York, to Denver, Colorado. That all coincided with Thimot’s appointment as CEO, and with the appointment of Tripp Smith as CTO and President.
Just a couple of weeks later, AuthID.ai announced four new appointments to its Board of Directors. And in late August, it made its debut on the Nasdaq Capital Market.
That was followed by multiple high-level executive appointments in November, and the news that the company’s founder, Tom Szoke, would serve as “Founder Emeritus”.
The corporate maneuvering is in service of capitalizing on growing demand for the kind of biometric identity technology in which AuthID.ai specializes, and in the company’s fiscal update Thimot gestured to positive signals about growth ahead. “Our sales team sees robust demand and a growing pipeline across FinServes and FinTechs, Cryptocurrency providers, iGaming, and eCommerce providers for the authID end-to-end identity authentication platform,” he said.
Mar. 21, 2022 – by Alex Perala