authID Inc.

Greetings and welcome to OFF-ID, Inc. Second Quarter 2022 Earnings Conference Call. At this time, all participants are on a listen-only mode. A brief question and answer session will follow the formal presentation. To ask the question during this time, you may press star 1-1. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Grace DeFreeze, Senior Vice President, Marketing, Communications, and Investor Relations. Thank you, Mr. Parise. You may begin.

Thank you, operator. Good afternoon, everyone. With me on today's call are Tom Timo, CEO, Tripp Smith, our president and CTO, Annie Pham, our CFO, and Graham Murad, our general counsel. By now, you should have access to today's press release announcing our second quarter 2022 results. If you have not received this, the release can be found on our website at www.authid.ai under the investor relations section. Throughout, we are now on slide two. Throughout this conference call, we will be presenting certain non-GAAP financial information. This information is not calculated in accordance with GAAP and may be calculated differently from other companies similarly titled non-GAAP information. Quantitative reconciliations of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information appear in today's press release. Before we begin our formal remarks, let me remind everyone that part of our discussion today will include forward-looking statements. Such forward-looking statements are not guarantees of future performance, and therefore you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Some of these risks are mentioned in today's press release. Others are discussed in our Form 10-K and subsequent filing, which are made available at www.sdc.gov. For those on the webcast, please note that we have set up the presentation for you to advance the slides manually. You can do this by hovering over the slides and tapping the double arrows that appear on the right-hand side of the slide. Tom and Annie will provide cues for advancing the slides. We will have a Q&A session following our presentation. To participate in the QA, you must be registered on the telephone. I'd now like to introduce our CEO, Tom Timo. Thank you, Grace.

Welcome, everyone, to today's call. I'd like to start on slide three and talk about the high technology standards we've achieved and the multiple points of validation we've earned for our platform advancements. During the second quarter, we completed two major security certifications and attestations that demonstrate to our customers that they can count on AuthID to protect their security. Building on our previous achievements of meeting the SOC 2 security standard, we successfully upgraded to meet the ISO 27001 standards for information security management programs. This means that our biometric authentication platform has met the rigorous security management industry standards that encompass key aspects of confidentiality, integrity, and availability. We also achieved a perfect score under the ISO standard for presentation attack detection or pad levels one and two that measured the verified platform's liveliness capability and success in detecting harmful attacks. Let me remind you that during this test verified successfully recognized and prevented more than 700 presentation attacks for a perfect performance. This demonstrates that we have the highest level of security to stop fraudsters from attempting to spoof biometrics. These independent tests are important for us to earn and promote because they help us reach organizations with IT and compliance departments that have high vendor management and control standards. These certifications give these decision makers the confidence they need to choose AuthID to be their trusted partner in defending against cyber attacks. And in May, we issued a patent that protects, we were issued a patent that protects verified multi-factor authentication methodology. Critical to fighting fraud, this patented methodology creates an unchallengeable audit trail for all parties. We were also pleased, along with our customer, Hamilton Reserve Bank, to receive the FinTech Futures Banking Award for best use of risk compliance and fraud protection. These independent assessments confirm the quality of our innovative technology. By continuing to apply our key patents and know-how, we have the opportunity to forge a lead in this quickly evolving industry. Looking ahead, we will continue to enhance the capabilities of our biometric authentication platform to meet the industry's changing needs. Our technology, as validated by these independent assessments, will help us gain traction and recognition for Verified's best-in-class identity security management and authentication capabilities. Before we talk about our newest team members, I would like to take a moment to remember Ted Stern, who sadly passed away on July 29th. Ted was a significant investor as well as a director of the company from 2017 to 2021, and he helped the company navigate through a series of critical changes. Ted will be fondly remembered for his great business insights and sense of humor, and we send our sincere condolences to the Stern family. Turning to our team, during the quarter, We were honored to have Joe Trellin, the former chief platform officer of Clear, join our board. Joe brings invaluable industry expertise in technology product management to AuthID. I'm also pleased to introduce on this call our new CFO, Annie Pham. Annie is a great addition to our team and brings a stellar background in finance. Her experience includes SonicWall, Applied Microcircuits, and Avago, which is now Broadcom. Annie has deep experience with the SaaS business model and has dealt extensively with public company and SEC reporting, as well as complex transactions. She has scaled teams and implemented best practices in finance that supported billions of dollars in revenue growth. We're happy to have Annie on today's call with us, and you'll hear from her shortly. I'm also pleased to announce that Jared Hufford joined our sales organization in June as our VP for cybersecurity sales. Jared brings 24 years of experience in cybersecurity sales and business development. Most recently, Jared was VP and GM for the go-to-market strategy for a new zero-trust access platform at Zircom's ZT Edge business unit. Previously, he was VP of sales for Stellar Cyber and the top-performing executive leader at ProtectWise, now Verizon. Jared has been integral in helping us craft our verified workforce strategy and our go-to-market approach with major cybersecurity players. I'm now turning to slide four. This quarter, the American Board of Radiology selected AuthID to deploy its facial biometric authentication solution after extensive testing. With the ease of a selfie to confirm identity through either a webcam or mobile device, Verified provides the ABR with strong identity authentication to maintain the integrity of remote medical professional certification exams. Now, instead of using a disruptive verification process, candidates will perform an identity verification ahead of the exam and then simply snap their selfie to confirm identity at exam time. Our customer success and development teams work very closely with the ABR to carry out a proof of concept trial, which we passed with flying colors. As Scott Scull, the ABR CIO, said in his compliments of AuthID, I am certainly going to focus on security and ease of use when I present to the other medical boards about AuthID. I will also mention that AuthID is a great partner. Our whole team has been extremely impressed with how helpful and knowledgeable AuthID has been. The ABR win is a great demonstration in the healthcare industry of our value add. Healthcare is fraught with attacks on compromised credentials that trigger both ransomware and sensitive data breaches. And as with everything healthcare, these breaches are very expensive to fix. IBM reported that data breaches in the healthcare sector had the highest average cost amounting to over $7 million per breach. Healthcare is a key target market for AuthID, where the demand for secure, seamless authentication for both workforce and patient use cases is strong. In the past quarter, we signed contracts in the FinServ and FinTech segments, adding several new customers to integrate Verified into their FinTech digital banking platform providers. Our channel partners also added several financial service providers along with a global online media company to use AuthID to verify customer identity and account ownership. In the quarter, we launched a new TAC with our verified workforce product set. This was in response to seeing longer sales cycles in the verified consumer side, as well as increasing corporate investments in cybersecurity, passwordless, and zero trust authentication solutions. Yes, the same verified platform that protects users' bank accounts is the same technology that delivers strong cybersecurity tools for critical infrastructure industries. Verified prevents hackers from logging into corporate production systems with stolen credentials, bypassing weak authentication methods, exhilarating sensitive data, or impersonating employees trying to reset credentials. It's a testament to our agile sales and marketing teams that we have swiftly developed programs targeting enterprises where our verified biometric chain of trust eliminates passwords and protects critical systems. We quickly created new web content, deployed new digital advertising, and targeted expanded sales prospect lists with new outbound workforce messaging and campaigns. We are also building our market presence at key cybersecurity conferences, including Identiverse and RSA in June, Black Hat this week, and exhibiting at the Gartner Identity Access Management Conference in August. Turning to slide five. Looking at the big picture, while we've made a good deal of progress in the last six months, our sales have not met our internal goals. However, I'm very pleased with positive signs in our pipeline. Our sales team is working on converting several workforce opportunities and cybersecurity partnerships into book deals. Let me highlight a few key deals the team is working through. First opportunity is with a US-based business providing customer onboarding and risk assessment. We are proposing that they integrate Verified to mitigate identity fraud and automate secure onboarding for the enterprise financial service companies and their customers. The second opportunity is with a technology company that will look to embed Verified into a workforce solution offered by one of the three major wireless carriers in the United States. Another opportunity is to integrate our Verified platform with one of the largest cybersecurity software companies in the United States in order to deploy our Verified workforce solutions as part of their Zero Trust authentication and access services to their portfolio of customers. As we stated in our last quarterly call, today we will report on our key performance indicators of booked annual recurring revenue, annual recurring revenue, and deferred revenue. While these KPIs are not yet where we wanted them to be, we have assessed our pipeline and have set sales goals that support our existing guidance of targeting positive cash flow by the time we enter 2024. Now let me turn the call over to Annie who will give us an update on our financial results and KPIs. Annie?