authID Inc.

Good day, and thank you for standing by. Welcome to the AuthID First Quarter 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Graham Murad, General Counsel. Please go ahead.

Graham Murad, General Counsel. Thank you, Operator. Welcome to the AuthID First Quarter 2026 Results Conference Call. As a reminder, this conference is being recorded. Joining me on today's call are our CEO, Ron Taguro, and our CFO, Ed Solito. By now, you should have access to today's press release announcing our first quarter 2026 results. If you have not received this, the release can be found on our website at investors.authid.ai under the news and events section. 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 reconciliation of our non-GAAP adjusted EBITDA information to the most directly comparable GAAP financial information appears 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 10Q for the first quarter ended March 31, 2026, and other filings which are made available at www.sec.gov. I'd now like to introduce our CEO, Ron Taguro.

Thank you, Graham, and thank you all for joining us today. Q1 2026 represents an inflection point for AuthID. Rather than simply reporting incremental progress, the company executed a deliberate and multidimensional strategy, simultaneously strengthening the balance sheet, restructuring the cost base, advancing its technology, and deepening its enterprise pipeline. The compounding effect of these actions is expected to materially improve our business performance across the remaining three quarters of fiscal 2026 and position the company for a substantially stronger entry into fiscal year 2027. The compounding effect of these actions is expected to materially improve our business performance across the remaining three quarters of fiscal 2026 and position the company for a substantially stronger entry into fiscal year 2027. In late April 2026, AuthID secured $4.2 million in bridge loan financing, enabling the company to continue advancing its engagements with some of the largest enterprises in the world, organizations that operate on long procurement cycles and rigorous vendor evaluation. These are not sprint to close engagements. They are structured, deliberate evaluations with high value outcomes. The bridge financing ensures that AuthID continues to work with these organizations for the duration of their evaluation and decision making. It also allows the company to work on converting its pipeline into contracted revenue. Additionally, as communicated in our recent financing press release, our financial advisors continue to actively evaluate a broader range of strategic opportunities, including capital markets initiatives, partnership structures, and other alternatives aimed at enhancing shareholder value and supporting long-term growth. Starting in Q2, 2026, the company made a targeted reduction in operating expenses, yielding approximately $3.5 million in annualized savings, and the company will realize this benefit during the remainder of 2026 and into 2027. This was a strategic reallocation of capital designed to concentrate resources on the highest value activities and preserve full operational and technical capacity from organizational efficiency achieved through the use of AI automation tools. Next, I'll provide an update on our technology and sales pipelines. Let me start with a recent technology milestone that customers have been asking for, and I truly believe is one of the most significant announcements in our company's history. Last month, we launched the industry's first quantum resistant biometric authentication platform, which is a technology milestone with significant commercial implications. Quantum computing is no longer a theoretical future risk. There's now commercially available quantum technology that is already capable of compromising conventional encryption. the window for enterprises to harden their identity infrastructure against quantum threats is dramatically shrinking every day. AuthID's privacy key platform addresses this threat through a dual layer approach. Layer one, NIST standard quantum resistant encryption algorithms. And layer two, cryptographic key sharding, which distributes key segments across separate storage locations, eliminating single point of failure vulnerabilities. Importantly, Unlike other biometric systems, the AuthID platform generates and immediately destroys cryptographic keys and biometric data upon the transaction completion, meaning there's no stored biometric data to steal. Between these two approaches, we are ensuring defense against any single breach or insider attack. That is the heart of PrivacyKey. We believe we now offer the only biometric identity platform purpose-built to withstand quantum error threats and we are ready to provide this solution to the market. It's incredibly powerful, and the deployment of this tech is completely transparent to the customer. The company is already in discussion with one of the world's largest banks regarding testing and deployment of this capability. Given the scale of potential enterprise contracts in the financial services sector, a single production win could represent transformative revenue to Off-ID. I am pleased to report on another significant engineering achievement. built to service not just domestic banking and other industries, but also to address regulatory requirements in the EU and around the world. We have added support for biometrically secured digital IDs, including mobile driver's licenses. Per Juniper Research, the digital ID marketplace was 51 billion last year and will continue to grow. At the same time, there will be close to 150 million mobile driver licenses issued by 2030. AuthID can secure these digital IDs with biometric assurance while protecting user privacy. We have also included an even more powerful feature, verifiable credentials, or VCs. These allow consumers to establish a biometric route of trust that helps them onboard to critical platforms, such as banking, retail, and healthcare services, in just two clicks. This is a game-changing onboarding process long awaited by the market, which is used to seeing 15 clicks to achieve the same result. Digital IDs with verifiable credentials represents the current demand by consumers wanting to control and secure their own online journey. We are already working with our partners to bring our solution to the market to address their customers' streamlined onboarding and verifiable credential demand. Looking at our sales, the forward revenue story for AuthID is anchored in its proof-of-concept pipeline. As of Q1 2026, The company is actively engaged with more than a dozen prospective customers spanning retail, banking, fintech, crypto, industrial and chip manufacturing, and healthcare. These are not exploratory conversations. They are structured evaluations being conducted by household name enterprises that manage assets, transactions, and user bases comparable in scale to sovereign economies. There are four key dynamics worth highlighting. First, Top tier enterprise concentration. The pipeline includes top three companies in retailing, banking, and technology hardware. Winning even one of these represents a potentially company-defining contract. Second, rigorous evaluation process. The fact that these organizations are conducting thorough technical evaluations is a signal of commercial seriousness, not hesitation. When organizations of this scale engage in a proof of concept testing, we are evaluating vendors for long-term, high-value partnerships. Third, successful channel leverage. Nearly half of the largest pipeline accounts have been sourced through channel partners, including Formula 5 and MajorKey, both Microsoft ecosystem specialists. This channel infrastructure dramatically reduces customer acquisition costs and accelerates access to regulated industry verticals. And fourth, cross-industry validation. The breadth of industries represented in the pipeline demonstrates that AuthID's biometric identity platform is not a single vertical solution. It is a horizontal infrastructure for enterprise identity assurance. The conversion of even a modest portion of this pipeline into production contracts during Q2 through Q4 2026 would represent a step change in future revenue. Given the recurring transactional-based nature of AuthID's revenue model, Each new production customer adds to the company's compounding monthly revenue base. Now let me address our Q1 2026 financials. Q1 2026 continued to reflect meaningful progress in our revenue trajectory. We generated approximately $480,000 in revenue during the quarter, compared to approximately $296,000 in the same period last year, representing a year-over-year growth of approximately 62%. This growth reflects continued adoption by our existing enterprise customers and the ramp of new customer deployments we brought live over the past year. At the same time, we took specific steps to reduce our operating expenses while maintaining the full operational and technical capacity needed to serve our customers and advance our pipeline. I'd like to leave you with the following. Looking at the full year of 2026 and into fiscal year 2027, the financial structure of AuthID is materially more favorable than it was entering 2026. This is based on six key structural improvements now in place. First, our revenue base grew 62% year over year, with production customers expanding transaction volumes. Second, we reduced our annualized cost structure by 3.5 million, improving burn efficiency moving forward. Third, 4.2 million in bridge financing is securing the runway to close active pipeline engagements. Fourth, a new release of quantum resistant biometric authentication, a digital ID-enabled platform that is technologically ahead of the entire market. Fifth, a channel partner ecosystem generating nearly half of the top pipeline accounts. And sixth, conducting more than a dozen active enterprise POCs, with the potential for multiple production conversions in the second half of 2026. The combination of accelerating revenue, structural cost savings, and expanding enterprise pipeline creates the conditions for Off-ID to reach cash flow sustainability and long-term financial independence. I'll now hand it over to Ed to walk us through the first quarter of financials.