authID.ai closes $22.5 million funding round

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Funding expected to meet projected working capital needs through 2023

LONG BEACH, NY, March 21, 2022 (GLOBE NEWSWIRE) — Ipsidy Inc. dba authID.ai (Nasdaq: AUID), a leading provider of secure, mobile, biometric identity authentication, today announced the closing of total financing of approximately $22,500,000 before fees, commissions and expenses. Funding raised:

approximately $9,200,000 through the issuance of senior secured convertible promissory notes (the “Notes”) to certain Accredited Investors (collectively, the “Purchasers”), most of whom have previously invested in authID.ai, including several authID.ai board members and management team. The Notes are convertible into common shares of authID.ai at the option of purchasers at any time, at a conversion price of $3.70;
approximately $3,000,000 through the sale of common shares to a new investor at a price of $3.03 per share as well as approximately $300,000 of common shares sold to certain members of authID’s management team. ai at a price of $3.70 per share (the “Other Shares”); and
$10,000,000 in borrowing capacity under an unsecured standby line of credit (the “Credit Facility”) with an existing major investor.

With these additional financings in place, based on the budget recently approved by the Board of Directors, management believes that the company will have positive cash flow on a current basis from 2024.

“I am delighted that we have closed this $22.5 million financing round which will support our projected working capital needs through 2023,” said Tom Thimot, CEO of authID.ai. “I would like to thank our new and existing investors for this funding, which represents a vote of confidence in our future and provides us with the resources to continue to deliver innovative technology that helps build a safer digital landscape for all,” said concluded Thimot.

Additional details on the funding round can be found in authID.ai’s Form 8-K filed today.

The Notes, other shares, common stock underlying the Notes and other shares issued and issuable in connection with the financing round have not been registered under the Securities Act of 1933 or any state law on securities and, until registered, they may not be offered or sold in the United States or in any state absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, and there will be no sale of the securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.

About authID.ai:

Ipsidy Inc. dba authID.ai (Nasdaq: AUID), provides secure, mobile, biometric identity verification software products through an easy-to-integrate Identity-as-a-Service (IDaaS) platform. authID.ai’s suite of self-service biometric verification and authentication solutions eliminates frictionless passwords with a consent-based facial recognition system. Our vision is to enable every organization to “recognize your customerMT” instantly, without friction or loss of privacy. Powered by sophisticated biometric and artificial intelligence technologies, authID.ai aims to build security and trust between businesses and their customers. For more information, visit www.authid.ai

Forward-looking statements

Information in this announcement may include “forward-looking statements”. All statements other than statements of historical facts included herein, including, without limitation, those regarding the Company’s cash position and future cash flows, financial condition, business strategy, plans and management’s objectives for future operations of Ipsidy Inc. dba authID .ai and its business partners, future service launches with customers, results of pilot projects and new initiatives and customer pipeline are forward-looking statements . These forward-looking statements are based on a number of assumptions regarding authID.ai’s present and future business strategies, and the environment in which authID.ai expects to operate in the future, which assumptions may or may not be fulfilled in practice. The implementation of some or all of the new services mentioned is subject to regulatory or other third-party approvals. Actual results may differ materially from those anticipated by these forward-looking statements due to various risk factors, including the risk that the implementation, adoption and availability of the Service by customers, consumers and others take longer than expected, or may not occur at all; changes in laws, regulations and practices; changes in domestic and international economic and political conditions; the still uncertain impact of the war in Ukraine; the Covid-19 pandemic; and others. Additional risks may arise with respect to starting operations in new countries and regions, of which AuthID.ai is not fully aware at this time. See authID.ai’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed at www.sec.gov and other documents filed with the SEC for other risk factors investors should consider. These forward-looking statements speak only as of the date of this announcement and should not be considered as a guide to future performance. authID.ai expressly disclaims any obligation or undertaking to post updates or revisions to any forward-looking statements contained in this announcement to reflect any change in its expectations with respect thereto or any change in events, conditions or circumstances about which any statement is based .

Investor Relations Contacts:
Grace DeFries
authID.ai SVP, Marketing Communications and Investor Relations
[email protected]

Ina McGuinness
The Bliss Group
(805) 427-1372

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