NASDAQ: AUID

Biometric
Identity Authentication - Verified

Biometric
identity authentication provides any organization with a secure, convenient solution to validate that an individual is the verified account
owner for various purposes including passwordless login and performing specific transactions, or functions. The authID Verified product
allows users to confirm their identity with their facial biometric by simply taking a selfie on a mobile phone or device of their choosing
(as opposed to dedicated hardware). The solution includes a patented audit trail created for each transaction, containing the digitally
signed transaction details, with proof of identity authentication and consent. Verified allows users to recover, via a facial biometric,
account access that is lost or blocked due to expired credentials, lockouts, lost or stolen devices, or compromised accounts. Because
the account owner’s root of trust is established in the cloud, recovery is independent of any device or hardware. In this way,
account recovery is instant, portable, and does not require the presence of or access to a previously provisioned device in order to
secure access from a different device.

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PrivacyKey
Privacy Preserving Biometrics

authID’s
PrivacyKey solution provides biometric authentication without the requirement to store any biometric or derivative of biometric data.
The technology transforms biometric verification into Public/Private Key cryptography whereby the facial image of the person is converted
into an elliptical public/private key pair where only the public key is stored and the private key only exists during authentication
and is deleted immediately after. The solution is compliant to the ISO30136 Privacy Biometric standard and provides a False Match Rate
accuracy of 1:1 Billion at a False Rejection Rate of 0.3%, as confirmed by independent tests conducted by the Commonwealth Scientific
and Industrial Research Organization (“CSRIO”).

Identity
Exchange (IDXTM) Platform

authID’s
Identity Exchange (IDX) is a next-generation platform purpose-built to allow authorized personnel to create or claim a central credential
that can be leveraged across multiple subsidiaries of a large enterprise, simplifying and securing the management of workforce identities
across distributed workforces that include employees, contractors, vendors, and other third parties. IDX modernizes identity management
with centrally-managed, biometric-bound, passwordless, interoperable and reusable credentials that stop phishing attacks, ensuring only
verified users can access sensitive systems and data. IDX is the first enterprise platform built on the Accountable Digital Identity
Association (ADI Association) specification, ensuring it is aligned with global interoperability and data sovereignty standards as well
as privacy regulations.

authID
Mandate - Agentic AI Security Framework

authID
Mandate is a framework for biometrically binding human sponsors to the AI agents they launched, ensuring that agentic activity is governed
by the user’s own scope, while also providing an immutable audit trail of that sponsorship. This provides a level of governance
far beyond machine IDs, or vulnerable tokens that are otherwise the basis for most agentic deployment of auditability.

Key
Customer Benefits

Our
solutions allow our enterprise customers to:

●
Verify
and Authenticate users. Customers can use the authID platform not only to verify the identity of new users, but also
to authenticate those users seamlessly on an ongoing basis to enable quick, secure logins and transaction authentications.

●
Benefit
from high-speed processing. Our solution returns a very low-latency response, key to enabling high-volume use cases (such
as logins and high-value transactions) and providing a frictionless user experience.

●

Precisely and accurately identify their
consumers and employees. As a result, the enterprise gains complete confidence in who is accessing its digital assets.

●

Provide seamless user experience in terms
of speed and self-guided flow. This allows users of all technical skill levels to easily complete identity verification and authentication.

●
Support
a wide variety of devices. Our cloud-based service is device agnostic and may be used to verify or authenticate users on
any device with a camera, including shared devices, digital kiosks, etc.

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●
Integrate
quickly and easily. We offer pre-integrated OpenID Connect (“OIDC”) connections as well as integrations with
several leading Identity and Access Management solutions.

●
Offer
broad identity document coverage. We can verify identities using a wide spectrum of government-issued documents from
around the world.

●
Perform
secure biometric verification & authentication without the need to store biometric data. Our PrivacyKey technology removes
the need to store any biometric data in order to perform verification or authentication transactions. PrivacyKey verification and
authentication is seamlessly delivered thru either a web or mobile applications with a response time of less than 700ms.

Corporate
Information

The
Company was incorporated in the State of Delaware on September 21, 2011. Our corporate headquarters is a virtual address located at 1580
North Logan Street, Suite 660, Unit 51767, Denver, CO 80203 and our main phone number is (516) 274-8700. Our website address is www.authid.ai.
The information contained on, or that can be accessed through, our website is not incorporated by reference into this Form 10-K and you
should not consider information on our website to be part of this Form 10-K.

Global
Market Opportunity

The
momentum towards a digital economy in recent years, accompanied by a massive growth in cyberattacks, fraud, and account takeovers fueled
by Artificial Intelligence are driving the demand for more streamlined and more secure identity verification and authentication. The
World Economic Forum estimates digitally enabled platform business models will drive 70% of new economic value created over the next
ten years. Yet vast amounts of data have been compromised, and ransomware attacks have cost businesses hundreds of millions in remediation
costs, lost revenue and brand equity. Passwords and device authentication alone no longer provide the security needed to fight today’s
rampant cyber-attacks and account takeover schemes.

According to Statista, cybercrime costs in the
United States alone are projected to increase to approximately $900 billion in 2026 and are projected to grow to over $3.4 trillion in
2030 (Statista: Annual Cost of Cybercrime in the U.S. 2017-2030). In the 2025 Verizon Data Breach Investigation Report, 78% of 3,300
financial data breaches studied involved external actors, while 74% of all breaches were attributed to some form of social engineering,
stolen credentials, or human error. Verizon also found that Business Email Compromise (BEC) attacks now represent more than 50% of social
engineering incidents, having almost doubled in recent years. Further it is predicted that Artificial Intelligence (AI) will almost certainly
increase the volume and heighten the impact of cyberattacks.

Financial
services, ecommerce, the sharing economy, and healthcare businesses, among other industry verticals, are confronted by the challenges
of identifying their customers, patients and beneficiaries with ease and certainty in the digital world. Organizations across all sectors
need to control access to their data and applications by their employees. Governments around the world are enacting new data privacy
regulations and pushing for stronger authentication methods in commerce, which impose a “call to action” for many of these
entities.

These
factors have created a hyper-growth market for the identity verification and authentication industry as well as increased buyer demand
for integrated identity platforms that can provide a range of identity solutions to address the full authentication lifecycle to govern
the user journey. The Global Biometric Technology Market is estimated to reach a market size of over $50 billion by 2025, increasing
at a 20% CAGR to reach over $150 billion by 2030 (Grand View Research, Biometric Technology Market Size, Share & Trends Analysis
Report, 2023 - 2030).

Growth
Strategy

We
orient our business strategy and invest for future growth by focusing on the following key priorities:

●
Drive
new customer growth. We intend to continue to build our customer base with a focus on key markets and verticals with the
strongest need for high-assurance identity verification and authentication, including highly regulated sectors and organizations
with high-risk transactions. This entails targeting less complex, less resource-intensive opportunities, as well as larger, higher
revenue-generating brands. We concentrate on enhancing or complementing legacy platforms as a top-of-funnel, high-assurance provider
where appropriate.

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●
Accelerate
onboarding and usage within our customer base. As we continue to acquire meaningful contracts, we intend to invest in bringing
customers live on our platform quickly, ensuring that they realize the benefits of our platform and ramp up their usage, while speeding
up time to revenue.

●
Strategically
develop our partner network. There are major cybersecurity and identity organizations with which we can partner to expand
our customer reach quickly and efficiently. We are identifying and pursuing strategic reseller and similar partner opportunities
to complement our direct sales team.

●
Innovate
and advance our platform. We intend to continue to invest in research and development and hiring top technical talent to
meet the identity proofing and authentication needs of our existing and prospective customers, as well as support new use cases,
diversify our product offerings, and continually improve our key differentiators of speed, accuracy, privacy, and user experience.

●
Select
Acquisitions. We intend to selectively pursue acquisitions that will help us achieve our strategic goals, enhance our technology
capabilities and accelerate growth. We believe pursuing these types of acquisitions will increase our ability to work with existing
customers, add new customers, enter new markets, develop new services and enhance our processing platform capabilities. However,
we have no commitments with respect to any such acquisitions at this time.

Sales
and Marketing

authID
provides its software as a service (SaaS) platform based on a subscription and usage-based model, with fees per transaction, enrolled
or active users.

We
sell our platform primarily through our direct sales team, which consists of inside sales and field sales professionals based in the
United States. To power our efforts, we have built a team of subject matter experts in the identity space, and applied a regimented sales
execution strategy, allowing us to win against competitors with comparable products but a sub-optimal approach to the market. We also
use a lead generation service and digital marketing in order to carefully target potential customers and provide qualified leads for
our sales representatives to develop.

We
also work with partners such as cybersecurity and financial technology providers who provide our services to their customers through
OEM or reseller arrangements and allow us to broaden our customer reach.

Competition

The
market for our service offerings is highly competitive and rapidly evolving. We face competition from a broad range of providers with
solutions across the identity management lifecycle, including:

●
Vendors
providing identity verification or proofing through both biometric and non-biometric solutions (such as data-based verification using
identity proxies, such as DMV records and addresses), both on-premise and cloud-based.

●
Vendors
of passwordless identity authentication using device-based and cloud-based biometrics.

●
Larger
companies providing identity and access management platforms, adding identity authentication services to their offering at low/no
cost.

●
New
entrants seeking to develop and market competing technologies.

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It
is also possible that, as the digital identity market continues to grow and evolve, larger companies with significant resources may increase
their presence in the market and develop competing solutions through internal efforts or partnerships with existing players.

Due
to our ability to serve both identity verification and authentication needs, as well as the tendency for enterprises to acquire multiple
digital identity solutions, we can and often do co-exist with competing products within our customer base.

Research
and Development

Our
research and development team is responsible for the design, development, testing and quality of our platform as well as any new technologies,
features, integrations and improvements. The team includes specialists in software engineering, user experience, quality assurance, product
management, infrastructure, and technical writing. Our employees are located primarily in the United States, with additional employees
and sub-contractors based in Europe, India and Latin America. We intend to continue to invest in our technology to strengthen and expand
our platform to stay ahead of our competition and meet the evolving needs of our current and prospective customers.

Intellectual
Property

We
rely on a combination of patents, trademarks, copyrights, trade secrets and contractual provisions to protect our proprietary technology.
For example, we enter into confidentiality and invention assignment agreements with our employees, consultants and other third parties,
and control access to software, services, documentation and other proprietary information. We believe the duration of our patents is
adequate relative to the expected lives of our service offerings. We also purchase or license technology that we incorporate into our
products or services. While it may be necessary in the future to seek or renew licenses relating to various aspects of our products,
we believe, based upon past experience and industry practice, such licenses generally could be obtained on commercially reasonable terms.

Governmental
Regulations

Due
to the security applications and biometric technology associated with the Company’s products and platforms, the activities and
operations of the Company are subject to license restrictions and other regulations, such as (without limitation) export controls and
other security regulation by government agencies. Expansion of the Company’s activities in areas such as financial services may
require government licensing in different jurisdictions and may subject it to additional regulation and oversight.

Data
protection legislation in various US States and foreign countries in which the Company does business require it to comply with additional
disclosure and consent requirements with regard to the collection, storage and use of personal information of individuals in those States
and countries, as well as register its databases with governmental authorities in those countries. Several US states have adopted or
are considering adopting a Biometric Information Privacy Act, or BIPA modelled on the Illinois statute, which governs the collection,
processing, storage and distribution of biometric information such as facial biometric templates and fingerprints. Several of these new
statutes give individuals rights of action to sue violators, which have resulted in several class action lawsuits. These regulations
could have a significant impact on our business.

Human
Capital

As
of December 31, 2025, the Company had a total of 46 employees who are located in the United States, Latvia and Colombia as well as outsourced
service providers. There are 30 employees in the United States who provide overall Company strategic, business and technological leadership,
as well as engineering and customer support. Employees in the U.S. and Latvia receive health benefits on a cost-sharing basis and employees
in Colombia are provided the respective Government required benefits.

Subsidiaries

Currently, the Company has four U.S. subsidiaries:
Innovation in Motion Inc., Fin Holdings, Inc., ID Solutions Inc. and authID Gaming Inc. The Company had one subsidiary in Colombia: MultiPay
S.A.S. which was dissolved as of August 2, 2024. The Company has one subsidiary in the United Kingdom: authID Enterprises Limited (formerly
Ipsidy Enterprises Limited). The Company is the sole shareholder of all its subsidiaries.

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Available
Information

Our
Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendment to these reports are filed with the SEC. Such
reports and other information filed by us with the SEC are available free of charge on our website at investors.authid.ai as soon
as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The SEC maintains an internet site
that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC
at www.sec.gov. The information contained on the websites referenced in this Form 10-K is not incorporated by reference into this
filing.

Recent
Developments

None.