AuthID Inc. (NASDAQ: AUID) announced financial results for the second quarter ended June 30, 2026, revealing a significant contraction in revenue alongside a strategic review initiated by its Board of Directors. The company reported sales of $490.619 thousand, representing a 64.96 percent decline from $1.400 million in the same period last year. Loss per share narrowed to $(0.29), compared to $(0.33) in the prior-year period.

The Board is currently evaluating a range of strategic and financing alternatives aimed at maximizing shareholder value. These options may include a strategic partnership or investment, additional debt or equity financing, or a sale or merger of the company. AuthID filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission but determined not to hold a conference call to discuss the results due to the ongoing strategic review.

Financial Performance

The sharp decline in sales contrasts with the modest improvement in loss per share, which decreased by 12.12 percent year-over-year. This divergence suggests that while top-line revenue contracted significantly, cost structures or other income items may have mitigated the impact on net loss per share relative to the previous year's performance.

Strategic Review Process

The Board’s assessment aims to identify the path that best positions authID for long-term growth and delivers the strongest possible outcome for stakeholders. The company has not set a definitive timeline for the completion of this process and does not intend to disclose further developments unless and until the Board approves a specific transaction or determines disclosure is required by law. There is no assurance that the process will result in any transaction.

Business Operations and Pipeline

Despite the financial headwinds, authID continued to sign and onboard customers and partners during the quarter. Key operational highlights include:

• Major Financial Institution POC: The company is investing significant resources in an extensive proof of concept (POC) for a major financial institution. This effort focuses on consumer use cases, technology requirements such as hosting and model governance, scalability, performance, and user experience.
• Workforce Verification Contract: AuthID is in the final stage of contract negotiations with a major manufacturer for workforce verification. The client faces challenges with remote workers misrepresenting their identities.
• Call Center Security: The company highlighted account recovery and reset through call centers as a critical workforce use case. AuthID aims to solve vulnerabilities related to social engineering and infiltration, which have caused losses in the hundreds of millions for organizations in retail, healthcare, and gaming.
• Channel Partners: Upcoming workforce verification POCs are planned for an athletic wear retailer and a medical manufacturer.

authID’s platform integrates with ServiceNow and Zendesk to enable the handing off of verified identity to service desk platforms, aiming to make the verification process faster and more efficient.

Forward-Looking Statements

The press release includes forward-looking statements regarding potential partnerships, financing, mergers, and business strategy. These statements are based on assumptions that may not be fulfilled. Actual results may vary materially due to risk factors including competition, regulatory changes, international tariffs, economic conditions, and geopolitical events such as wars in Ukraine and the Middle East.

authID filed a prospectus with the Securities and Exchange Commission (SEC) regarding the offer and resale by selling stockholders of up to 4.64 million shares of common stock. This filing enables existing shareholders to liquidate their positions in the open market, introducing potential selling pressure on the company's equity.

The prospectus was submitted to the SEC to comply with regulatory requirements for secondary offerings. The document outlines the terms under which selling stockholders may offer their shares for resale.