AUID

authID is a sub-scale biometric-identity SaaS with a genuinely interesting product (PrivacyKey stores no biometric data; a CSIRO-verified 1:1B false-match rate) and real revenue acceleration — FY2025 revenue of $2.04M was up 130.2% YoY, on top of a rebound from the $190K trough in FY2023, at a healthy 58.6% gross margin. That is the bull case, and it is real but tiny. The problem is the denominator: at $2M of revenue the company posted a -$17.9M net loss and a -889.6% operating margin, meaning it spends roughly ten dollars for every dollar it books, driven largely by $7.69M of R&D. This is a pre-commercial-scale burn dressed up as a growth story.

The balance sheet is where 'avoid' becomes unavoidable. Cash fell 45.6% to $4.61M while operating cash flow was -$15.0M for the year. That is under four months of runway at the current burn rate. The liabilities/equity ratio of 0.16x looks pristine, but that is cosmetic — there is almost no debt because the company funds itself by issuing stock, and shares outstanding already jumped 47.7% in a single year to 16.1M. With a $192M accumulated deficit and cash nearly exhausted, another dilutive raise is not a risk, it is a near-certainty, and it will come from a $19M market cap with the stock at $1.18 — highly dilutive to anyone who buys here first.