Earnings Call Transcript - AUID Q2 2025

Operator, Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss authID's Second Quarter 2025 Financial Results. Please be advised that today's conference is being recorded. I would now like to hand the conference over to authID's General Counsel, Graham Arad. Graham, please go ahead.

Graham N. Arad, General Counsel

Thank you, operator. Greetings and good afternoon. This is Graham Arad, General Counsel of authID. Welcome to the authID Second Quarter 2025 Results Conference Call. As a reminder, this conference is being recorded. Joining me on today's call are our CEO, Rhon Daguro; our CFO, Ed Sellitto; and our Founder and CTO, Tom Szoke. By now, you should have access to today's press release announcing our second quarter 2025 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 10-K and other filings, which are made available at www.sec.gov. Finally, if you are listening to this call via the webcast, you will be able to see the results presentation and advance slides yourself as prompted by our speakers. I'd now like to introduce our CEO, Rhon Daguro.

Rhoniel A. Daguro, CEO

Thank you, Graham, and thank you all for joining us today. I am very excited about the progress we have made through the first half of 2025. We recorded by far our highest quarterly revenue in authID's history, $1.4 million. This is a testament to our team's plan to sign clients and bring them live. We are starting to reap the benefits of our strategy, and we will cover our financial results momentarily. But first, I'd like to provide updates on the business. Since joining authID, I have believed that every single identity management strategy will require facial biometrics in order to combat the advancements of AI being used and abused by fraudsters. No CISO on their own can defend against the current threats they face today with the identity systems they installed even just a year ago. We see this playing out in the news almost every day, with data breaches taking place at incredibly high rates. Every identity stack will have to incorporate facial biometrics as either an additional signal or as the main signal to determine who is behind the device. I believe that authID can solve this problem for companies that have to manage multiple identities from contractors, vendors, and suppliers. In response to this pressing issue, we recently launched our IDX platform in late July. We believe IDX is one of the biggest advances in the identity industry that will eliminate identity fraud, specifically within the supply chain workforce. We do this by integrating our highly accurate biometric authentication with a platform developed from the most comprehensive, accountable, and reusable identity management standard for an end-to-end supply chain identity management solution. The IDX Identity solution will be able to exchange an identity that is accountable, deterministic, accurate, and compliant without having to abandon existing identity management infrastructure already in place, in a manner that meets regulatory and compliance requirements, so that CISOs will ultimately know every single identity in their system. More to come on IDX, but now let me cover our second quarter 2025 highlights in comparison to our last earnings call. During our Q1 2025 earnings call, we stated our ambition to sign another major Fortune 500 customer this year. So this earnings call I am pleased to report that we have gone live in production with a U.K.-based Fortune Global 500 customer that is using our PrivacyKey product. After a successful pilot involving thousands of employees for proofing and password reset, we were able to take that deployment live, leveraging the integration already in place from the pilot. We hope to greatly expand this deployment as we work toward a long-term partnership with significant financial upside. Additionally, last quarter, I discussed our potential partnership with a major global biometric hardware provider, in which we were in advanced discussions to implement joint product development and sales. So this quarter, I'm excited to finally share that the major global biometric hardware provider is NEC, a multinational leader in IT and technology solutions, which has over 100,000 employees in over 50 countries and has been a leader in biometric solutions since 2007. With the support of NEC, which introduced a similar product known as Symphonic Trust in Japan, we will be able to successfully demonstrate interoperability of a reusable identity between two companies, across the United States and Japan without any changes to the incumbent identity management systems that were in place before IDX. This has never been done before. And to further our relationship with NEC, we are thrilled to add Ram Menghani, a former NEC executive, as a critical member of our Board of Directors. We are excited about our partnership and growth opportunities ahead of us. Also, last quarter, I shared that we have been confirmed as the vendor of choice for a major identity fraud prevention platform. So this earnings call, I am very pleased to finally say their name. authID signed an agreement with Prove, one of the largest identity fraud platforms in the world. In fact, we are actively working towards the go-live of our first joint customer in the coming weeks. We've been very active with Prove through our joint thought leadership webinars where we have met with customers to share Prove's newly enhanced capabilities with authID's platform. This collaboration is not just a customer story. It's a clear vote of confidence from one of the largest independent fraud platforms in the world. I know our investors are eager to understand the financial benefits of our agreement with Prove. And while I wish we could be more specific, our partnership terms are required to keep that confidential. However, investors will begin to see the revenue impact from the partnership through our financials starting in Q3 of this year. And finally, we continue to advance our contract negotiations with a very large Fortune 500 international human capital company in preparation for a global rollout, where we remain confident that we will sign a long-term commitment soon, and we will provide an update again when we have news to share. These achievements further illustrate how our technology investments and innovations are in demand for major enterprise customers and partners. Let me now cover the recent progress made across our platform and existing partnerships. One practical shift to note is that we are emphasizing performance-based production level pilots to showcase our capabilities and prospects. This has been an effective strategy rather than just relying on proof of concept. Once the pilot is completed, it is far easier to transition their environment from pilot to full production since the integrations have already been in place. This requires a full level of effort from our teams early in the sales cycle and demands a lot of attention, but it has been proven to be an effective way to earn customer trust, shorten our go-live, and time to revenue. Regarding our technology improvements, I'd note that just after launching PrivacyKey, we immediately began improving the technology to better serve our customers. In this case, we have upgraded PrivacyKey with a one-to-many search capability, which has already been put into place in production pilots. This update gives companies the ability to scan multiple faces and return the results lightning fast with the highest accuracy in the marketplace. As a result, our channel partners have been happy to introduce us to additional target customers, which represent an increase in our sales pipeline. Our channel partners also add the benefit of bringing us into their key verticals, which helps expand our total addressable market. Before handing it to Ed, let me revisit IDX, our major technological new product milestone. The IDX platform is a global platform built on a fast-adopted standard of the Accountable Digital Identity Association, or ADIA, founded by Ramesh Kesanupalli. Along with NEC, no one else has leveraged this new standard into working software. In fact, the ADIA is merging with the Secure Identity Alliance, which includes ZoomInfo, IDEMIA, the FBI, and other security-minded organizations. This puts authID in good company and gives us greater visibility and credibility when prospecting customers across the globe. Many large enterprises use contractors who, in turn, use other contractors for a variety of business operations. Supply chain identity management is a significant problem for large companies since they cannot properly vet the identities of their vendor contractors because of various rules and compliance regulations. From an investment perspective, the identity management market is estimated to be $61 billion by 2032 by Fortune Business Insights. AuthID can only participate in the authentication subset of this market, but with IDX, authID is now able to play in the entire market space. Our total addressable market has dramatically increased, and our launch partner, NEC, is one of the largest biometric harbor providers in the world. We are still in the early stages of IDX, and we look forward to sharing more about our expectations for this new product once we're in a position to provide a well-informed financial forecast. Currently, we partner with identity management companies and rely on them to try to solve supply chain identity management problems. When we engage in a new engagement, and our customers want to implement capabilities like IDX, we are not limited to their existing identity management provider anymore, which will allow us to close larger deals faster. I'm very pleased with our second quarter results and progress made through the first half of the year. Ed will now take us through the financials in greater detail.

Edward C. Sellitto, CFO

Thank you, Rhon, and thank you all for joining us today. I look forward to walking you through our Q2 results. Looking at our Q2 2025 GAAP results. Total revenue for the quarter increased significantly to $1.4 million compared to $0.3 million last year and $0.3 million in Q1. The strong revenue growth in Q2, both sequentially and year-over-year was primarily driven by the go-live of several contracts signed earlier in 2024. These implementations have now been successfully delivered and are contributing meaningfully to top-line results. Operating expenses for Q2 were $5.9 million compared to $3.6 million a year ago and $4.7 million last quarter. The year-over-year increase is primarily due to increased head count investment in sales and R&D. The sequential increase is primarily driven by an $0.8 million impact related to the provision for estimated credit loss expense. This represents a credit risk assessment related to certain customer contracts. While this provision reflects our estimated risks, we continue to have strong confidence in our ability to collect on these customer contracts. Net loss for the quarter was $4.4 million, of which non-cash charges were $1.1 million. This compares to a net loss of $3.3 million for the same period last year, which included $0.8 million in non-cash and one-time severance charges and a net loss of $4.3 million in the previous quarter. Net loss per share for the quarter was $0.33 compared with $0.34 a year ago and $0.40 last quarter. Turning to RPO on the next slide. Remaining performance obligation or RPO, represents the minimum revenue expected to be recognized from our signed contracts based on our customers' contractual commitments. As of June 30, 2025, our total RPO was $13.8 million, a decrease of approximately $0.1 million over the prior quarter as we recognized contracted revenue in Q2 and also added new contracts signed in the quarter. Our RPO for Q2 compares favorably with the RPO at the same period last year, which was $4.2 million. We expect to recognize the full RPO of $13.8 million over the entire life of our contract, which are typically signed with a 3-year term. Turning to our balance sheet highlights. As of June 30, our cash balance totaled $8.3 million, which includes approximately $8.5 million in net proceeds received from successful capital raises in April and May 2025. Our common shares outstanding stood at 13.4 million with 2.2 million shares added from our fundraise. We will use these funds for a number of priorities, including closing key deals with Fortune 500 products, generating revenue growth through our recent IDX platform launch, and implementing and ramping our customer base. On to our non-GAAP results on the next slide. Adjusted EBITDA loss was $3.4 million for Q2 compared with a $2.5 million loss for the same period last year and a $3.9 million loss last quarter. As described in our operating expense results, the year-over-year increase in EBITDA loss is primarily due to increased head count investment in sales and R&D as well as the Q2 provision for estimated credit loss expense. We also monitor and report on annual recurring revenue or ARR, which is defined as the amount of recurring revenue earned during the last three months of the relevant period as determined in accordance with GAAP, multiplied by 4. ARR as of Q2 is $5.8 million compared to $1.1 million of ARR as of Q2 2024, and $1.2 million as of last quarter. Turning to BAR or booked annual recurring revenue, which is the projected amount of annual recurring revenue we believe will be earned under contracted orders looking at 18 months from the date of signing of each customer contract. The gross amount of BAR signed in the second quarter of 2025 was $2.2 million, up from $0.6 million of gross BAR a year ago and $0.01 million in Q1. The increase in BAR for the quarter was led by the signing of Prove, the Identity Fraud Platform Rhon called out earlier. As previously explained during our quarterly earnings call, BAR comprises two components, which we refer to as CARR and UAC. CARR or committed annual recurring revenue represents the total annual customer contractual commitment through fixed license fees and minimum usage commitments. These commitments are directly recognized as revenue in each contract year after each customer goes live with the service. Q2 2025 CARR represents $0.9 million, approximately 41% of reported BAR. UAC, our estimated usage above commitment, is an estimate of annual customer usage that will exceed contractual commitments. Q2 UAC represents the remaining $1.3 million or 59% of reported BAR. Turning to our revenue growth stages on the next slide. I will finish off by summarizing the progress we're seeing through our revenue growth stages. The first milestone we use to monitor our growth is bookings, as measured by BAR. In Q2, we realized a total gross BAR of $2.2 million. We're excited to begin closing the major large enterprise and platform partnership deals that we discussed last quarter and expect to continue accelerating our bookings growth over the remainder of 2025 as we add pipeline and progress our key large enterprise and platform partnership deals. The next milestone is our remaining performance obligation or RPO. As I detailed earlier, as of Q2, we have secured approximately $13.8 million in RPO, a number we expect to increase as our bookings continue to grow throughout the remainder of the year. Our third milestone is revenue recognized in accordance with GAAP. Our Q2 year-to-date revenue of $1.7 million already surpasses our 2024 full-year revenue by approximately $0.9 million, and we expect this growth to continue throughout the year as our existing signed contracts continue to go live and ramp. As we've called out in prior earnings calls, we are continuing to increase our focus on customer retention and expansion this year as our customer contracts mature. We continue working to build on our customer expansions and grow our customer relationships by adding value and helping our customers achieve their objectives, as well as expand and identify new use cases. Overall, we look forward to building on our Q2 momentum. As we previously stated, our goal is to deliver $18 million in BAR for 2025. We remain on track to meet our expectations and look forward to updating our investors again in our Q3 call.

Operator, Operator

Our first question comes from Gary Brode with Deep Knowledge Investing.

Gary Brode, Analyst

I've got a question about the financials. Ed, you might be the right person to answer this. So it looks like you took in $1.2 million of deferred revenue in the quarter. First, can you talk a little bit about where that came from? And then second, you're showing annual recurring revenue of $5.8 million, which is the quarter's revenue times 4. But if you took a $1.2 million of deferred revenue in the quarter, is that recurring?

Edward C. Sellitto, CFO

Gary, thank you for your question. To address the first part, the $1.2 million in deferred revenue comes from invoices related to customer contracts that we have not yet recognized as revenue. We have issued some invoices according to our contract terms before recognizing the revenue. We anticipate that these invoices and deferred revenue will transition into recognized revenue in the upcoming quarters. Now, could you please repeat the second part of your question?

Gary Brode, Analyst

Well, I think you've answered. The second part of the question is, is that actually recurring? But if what you're saying is that deferred revenue came from invoices from customer contracts where you guys are about to start providing services then it is recurring and your $5.8 million of annual recurring revenue is accurate. Am I understanding you correctly?

Edward C. Sellitto, CFO

That's correct. The amounts that are in deferred revenue results are coming from contract-driven invoices that are recurring in nature and are just yet to be recognized according to our revenue recognition policy.

Gary Brode, Analyst

Okay. Got it. All right. And then can I ask you, do you want me to jump back in the queue? Or can I ask you a few questions about the Prove deal?

Edward C. Sellitto, CFO

Go ahead, Gary.

Gary Brode, Analyst

Okay. During the webinar that Dale conducted earlier this week with Prove, there was a remark that suggested you were very close to having a working combined model that was already operational. While it wasn't explicitly stated, it was implied. Then, earlier today, you mentioned that you are nearing the launch with Prove and one of their customers. So I'm assuming that's accurate and that you do have a functional model for the combined services, and you're about to begin providing services to a Prove customer. Can you confirm this? Also, when do you expect to start generating revenue from that contract?

Rhoniel A. Daguro, CEO

Gary, I'll take that question and thank you for it. Can you hear me clearly? I just want to make sure.

Gary Brode, Analyst

Yes, crystal clear.

Rhoniel A. Daguro, CEO

The Prove partnership consists of two main components. The first aspect involves authID's capabilities in onboarding, specifically document verification for new customers. We have established these capabilities in conjunction with Prove, which has a track record with other partners. This initial aspect can be implemented rapidly, with no complex integrations needed, and our performance in this area is superior to many in the market, which is why we secured this partnership. The second aspect is more strategic, as Prove is the leading fraud platform. This aligns with my earlier comments about the necessity for every identity stack to incorporate a biometric signal, partly or entirely, in response to the increasing fraud facilitated by AI. We are collaborating closely with Prove to integrate our technology into their platform, though I can't disclose the name they have chosen for the offering yet. This strategic component is what excites us about the partnership, and we will let Prove take the lead on announcements. In summary, our partnership has two key facets, which is the reason for our enthusiasm.

Gary Brode, Analyst

Okay. So I...

Rhoniel A. Daguro, CEO

And then I think you have the question, right?

Gary Brode, Analyst

Yes. The other question on that is at what point will you start collecting revenue? Because it sounds like you're close, but I don't want to be overly optimistic.

Rhoniel A. Daguro, CEO

Yes. In my comments, I mentioned that we are about to bring a customer live in a few days. Ideally, it will happen tomorrow, but we aren't certain yet. We are very close to launching one of our joint customers as part of the partnership I described. As I mentioned, there are two components to this partnership. The first part, which doesn't need extensive integration, is our initial initiative, and we are hopeful to go live with one of those joint customers soon. The main question now is when we will start seeing results. We are going to see them much sooner than before because we are taking those customers live shortly.

Gary Brode, Analyst

Okay. So if you do go live within the next day, week, something like that, there will be revenue in this quarter, the third quarter related to that.

Rhoniel A. Daguro, CEO

If transactions are being called, which we hope they will be, transactions being called, they should be billed, we should be able to invoice.

Edward C. Sellitto, CFO

Just to reiterate, once we go live, we will start to recognize the contractual commitment portion of the contract as we normally do.

Operator, Operator

Our next question comes from Gary Brode with Deep Knowledge Investing.

Gary Brode, Analyst

Well, glad to be back. Can we talk about the Indian contract that you guys signed last November? Have you started providing services, or are you still in ramp-up condition with the company?

Rhoniel A. Daguro, CEO

We are working with them, and we're still ramping, but we are engaged with them. Yes.

Gary Brode, Analyst

Okay. So you're working on it, but it hasn't gone live yet. Is that right?

Rhoniel A. Daguro, CEO

That's right.

Gary Brode, Analyst

Okay. I'm assuming that you haven't recognized revenue from them at this point, is that correct?

Edward C. Sellitto, CFO

I'll just clarify Rhon's comment. We are still ramping them, but we did go live and deliver the service to their customer.

Gary Brode, Analyst

Okay. That's great. And then when you announced the deal, I believe there was a provision in there that you're supposed to collect $3.3 million of revenue each year, '25, '26, '27. Given that you did start collecting revenue at the beginning of the year from them, understandably, there's no way you're going to be able to launch in 2 months. Do you still expect to collect the $3.3 million from them this year that you discussed was a contractual obligation before?

Edward C. Sellitto, CFO

Yes, to put it differently, we understand that in the first year of a contract, there may be delays in going live. If we have a commitment for that first year, we will recognize that commitment over the remaining months of the first contract year. So, if there is a delay of a month or two or more, we will account for it in the balance of the first contract year. By the end of the first contract year, we will have recognized the full amount of the commitment for that year.

Gary Brode, Analyst

Okay. Got it. So basically, you are anticipating collecting $3.3 million from this contract in the second half of this year.

Edward C. Sellitto, CFO

Yes, that's a fair inference.

Gary Brode, Analyst

Yes. Okay. Well, that's incredible given the revenue number you guys just posted. That's really good news. Okay. And then on the NEC deal, I know with IDX, the implications are enormous. Are you guys able to talk at all about a booking estimate, a guaranteed minimum revenue, term of the contract, or when you might start providing services or collecting revenue? Can you give us any detail on anything?

Rhoniel A. Daguro, CEO

Yes, I'll take that. Unfortunately, not at this time. So we just released the product. We have the technology looking to go into certain customers for a pilot and we're trying to still flesh that all out and trying to even understand the deal cycle and deal motion and what the pricing terms are. So we don't have at all fleshed out. I do have my own ambitious goals that I want to achieve, but I need to put some more formula behind that. And so we'll share that as soon as we can. But very excited to get to that point here shortly.

Gary Brode, Analyst

Okay. Then let me ask the question in a different way. you guys were at $2.2 million in bookings so far this year, and I believe that includes the Prove deal. And then you've got the NEC deal with an unspecified number and then you talked about a U.K. Fortune 500 retailer, a Fortune 500 international benefits company. Are you still comfortable with the $18 million of bookings as you talked about the last couple of quarters?

Rhoniel A. Daguro, CEO

Yes, absolutely. Absolutely.

Gary Brode, Analyst

Okay. Got it. And then the last question I've got for you is I know last year, you guys had some delays and spent a lot of time and money upgrading the software to be enterprise capable. Is it reasonable to assume with the Prove deal and NEC deal that, that work is done to a level that you're satisfied with? Or is there still more to do?

Rhoniel A. Daguro, CEO

It's done to the level where we can win deals, but there's definitely more to do. And so we're learning more as we go into these larger enterprise opportunities to see what adjustments and stuff we need to make, but it's not near the major overhaul that was required to release basically two brand-new products, two brand-new SKUs into the marketplace. It's tough to just do one, but to do two in such a short period of time is obviously really tough. But at the same time, it was what our customers needed and wanted, and nobody was fulfilling it. So we think we made the right adjustments. I know we made the right adjustments, and that's how we're able to enter these particular large opportunities and have a really high probability of winning them.

Gary Brode, Analyst

Okay. So you're more in the kind of normal R&D phase as opposed to the, oh, c***, have to overhaul the whole thing phase where you were last year?

Rhoniel A. Daguro, CEO

I like the way you worded it. But yes, it's not the holy mackerel anymore. It's a, hey, this is working. It's stable. Like one of the things we described in my comments was we were in these pilots and POCs and now we're advancing past them. That's because the product has been showing very, very effective for our customers and clients. If those pilots did not go the way they needed to go, then obviously, we'd be in a different situation as opposed to moving to finalizing it and moving things to longer-term relationships with these customers. So if the product is working very well in that regard, but we're absolutely not slowing down on innovation and improving the product sets. Just like with the PrivacyKey, we wanted that one billion to one billion false match rate. We wanted that 22 milliseconds authentication, we wanted all that speed. And then our customers said we want to also scan thousands of faces, and we want to pinpoint Gary's face out of this entire population. Can you do it? And of course, we weren't going to say no. So we did. We did it, and we delivered it, and the customers were happy.

Operator, Operator

Your next question comes from Dean.

Unidentified Analyst, Analyst

Congratulations on the quarter. It looks like you're making good progress. I was wondering if you could elaborate on the pilots. It would be nice to have some idea of the scope. Can you comment on that? How many customers or employees are part of some of these pilots? That's one. And then number two, how quickly can you get scaled up? What's the go-live process and the time to revenue compared with the normal 12 to 18 months? How short is it once you sign a contract with these that you've already piloted to actually going live and getting revenue?

Rhoniel A. Daguro, CEO

I'm trying to recall all the details, Dean, so I appreciate your question. This is an area I'm very excited about. When we were following the traditional sales process with large enterprises, they typically had a committee that required going through a vendor supplier first. Then they would put us in a sandbox and conduct a proof of concept with around five to ten users. They would likely run a few tools to ensure everything operates smoothly. Based on those proof of concept results, which usually involve unlimited data, they would decide whether to proceed with authID. We've had success with those proof of concepts, but the time frame can stretch from three to nine months due to the size of the enterprise. We've made some changes that I want to take full credit for, but I also acknowledge the favorable market conditions. The rise of artificial intelligence has created challenges that allow companies to evaluate technology more rapidly. Instead of the traditional proof of concept, companies are opting to put us directly into a live production environment with actual data centers current systems use. For the testing phase, instead of rolling out to the entire organization, they may start with just 1%, then expand to 5%, and then 10%. For our customers, this could translate to tens of thousands of users, which excites us. Once they see the live performance, committing to authID becomes straightforward, allowing us to quickly transition to revenue without the usual integration concerns. This method represents a significant shift and we've been trying it out successfully. We're uncertain if this will become the standard practice moving forward, but we are determined to pursue it. However, it does require our team to be fully staffed at the outset of the deal, compared to the usual practice where staffing happens post-deal closure. If we anticipate the deal will close, we can better plan our staffing needs. Investing resources upfront poses challenges and may incur additional expenses, but we find it's a quicker path to revenue. Apologies for the lengthy response, but we're working on it and believe this shift to pilots will accelerate our revenue generation.

Unidentified Analyst, Analyst

That's great. So what sounds like if you've done a lot of the plumbing work already that you would normally have done over that 12-month period or even more in some cases, to get to the full BAR number.

Rhoniel A. Daguro, CEO

You nailed it. You absolutely nailed it. That those pieces in areas where you all have been asking us to figure out how to go-live faster was one of those key ways that allowed it to happen. And again, I'd like to take full credit for it, but no, because a lot of the customers are getting hit right now. And they don't have that time to do the POC way. They need to figure it out now. So I think in combination of AI rising. So if the bet is, AI is going to get better and better and better to help these fraudsters perform more damage faster and faster and faster, we should be able to accelerate our size. So the danger on our side is that we have to staff up. And so we have to be able to make sure that we can do that and do that and predict that. And again, be mindful of our spending. But that is a shift in our process, and it may require, hopefully not, but it may require a little bit more resources upfront.

Unidentified Analyst, Analyst

Okay. Well, that was going to be my next question.

Rhoniel A. Daguro, CEO

You're asking about the scale, right?

Unidentified Analyst, Analyst

Yes, it seems that you are on the verge of generating some revenue or at least turning this into real annual recurring revenue very soon, especially with the pilots transitioning to contracts and generating revenue more quickly. Additionally, there’s the Prove deal, and though we haven’t fully explored the NEC deal yet, which appears significant but is at an earlier stage, are you currently running any pilot with that technology?

Rhoniel A. Daguro, CEO

Okay. There are two parts to this, but I'll address the last one. Regarding the IDX side with NEC, we're not there yet, but we're making progress. We're working hard on that. As for Prove, were you asking if we are integrated there? I'm not entirely sure.

Unidentified Analyst, Analyst

Well, my understanding or at least my interpretation is that, that could be almost plug and play with the Prove customer database that's already there since you I think, I heard have essentially integrated with their system or I don't want to put words in your mouth. That was just my interpretation.

Rhoniel A. Daguro, CEO

Yes. Yes, let me go back. So with Prove it's like a two-part partnership. Part one is our stuff that works today out of the box. And their current customers, right now Prove doesn't do what authID does. So their customers can benefit from the authID technology through the Prove platform. So they can take advantage of that today, and that's what's about to go-live hopefully soon. The longer-term strategy for Prove is to incorporate biometrics inside their entire core platform, essentially like an OEM. And so that has not been completed yet. We're still working on that with them. And again, I'm not going to reveal the strategy with that. But from a biometric perspective, we are working with Prove to be their core biometric technology.

Operator, Operator

Our next question comes from Kelsey Jones with Varana Capital.

Philip Ray Broenniman, Analyst

It's not Kelsey Jones. It's Phil Broenniman. Kelsey works with me. My question is about the very interesting quarter we've had. I don't usually ask questions, but I think my question is on the minds of many investors. So, I'm going to put it out there and see what your response is on behalf of all of us. First, I want to acknowledge Gary Brode for initiating this conversation and asking insightful questions. Your organization and your team have faced quite a bit of criticism regarding communication or the lack of it. Even understanding the tension between your counterparts, your clients, and the information you can share versus what we, as investors, want to know, have you considered how to improve this situation so we don't feel entirely lost by sparse press releases?

Rhoniel A. Daguro, CEO

Yes, thank you for the question, Phil. I understand your concerns. Internally, we've developed a process to manage the blackout period during which investors may not be aware of our communication guidelines. Currently, our leadership team is quite stretched, making it challenging to accommodate investor inquiries on an ad hoc basis. To address this, we will proactively reach out to individuals who have previously asked questions that we couldn't answer because of the blackout period. We want to arrange dedicated time for discussions, allowing for more meaningful interactions and responses to your inquiries. This approach aims to provide a more predictable schedule for communication, enabling me to spend more time addressing your questions outside of the blackout period. We hope this will improve the situation.

Philip Ray Broenniman, Analyst

Some of that will be helpful, but honestly, spending a lot of time answering my questions doesn't contribute to the business's growth. I'm not very interested in pulling you away from your main responsibilities. I'm referring more to the communications in the press releases. The information provided in these press releases, which we are all examining perhaps too closely, is traditionally what we've received, and they often lack helpful insights. That's the core of my concern. I would truly appreciate hearing from you more frequently, but for everyone's sake, how can we enhance the information in these press releases so that people can feel somewhat assured that progress is being made, rather than just receiving vague assurances without any details?

Rhoniel A. Daguro, CEO

Phil, if my customers would allow me to tell you the details of the contract or the financial terms that you're looking for, so that you can make an investment, I would tell you this. But our customers will not let us do that. So to the point where we can get that information so that we can share, we're going to work really hard to get you what you need while making sure that we adhere to our customers' privacy.

Philip Ray Broenniman, Analyst

Understand. There's obviously tension on the other side. I would just ask you guys to pay as much attention to providing that additional information as you can. So with that, I'll let it go. I'm sure Gary is back in the queue, and I'd like to hear what he asks.

Operator, Operator

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Rhoniel Daguro for any closing remarks.

Rhoniel A. Daguro, CEO

Thank you, everyone, and thank you for the question. We appreciate your attention today. If you have any additional questions about our progress, please reach out to investor-relations@authID.ai. I would be happy to set up a time to discuss any questions that may have arisen from this call or afterward that we didn't cover. If not, we look forward to connecting with you when we share our third-quarter results in November. Thank you all.

Operator, Operator

Thank you. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.