Stockholder's Equity

6 Months Ended

Jun. 30, 2022

Stockholder's Equity [Abstract]

STOCKHOLDER’S EQUITY

NOTE 8 – STOCKHOLDER’S EQUITY

Common Stock

During the six months ended June 30, 2022, shares of common stock were issued as a result of the following transactions:

● On March 18 and March 21, 2022, the Company entered into Subscription Agreements (the “Subscription Agreements”) with an accredited investor and certain members of authID’s management team (the “PIPE Investors”), and, pursuant to the Subscription Agreements, sold to the PIPE Investors a total of 1,063,514 shares of our common stock at prices of $3.03 per share for an outside investor and $3.70 per share for the management investors (the “PIPE”). The aggregate gross proceeds from the PIPE are approximately $3.3 million.

● The Company issued 28,496 shares of our common stock to the Note Investors as an additional origination fee.  Additionally, on June 30, 2022, the Company issued 116,896 shares of common stock for approximately $251,000 of interest owed from the effective date of the Convertible Notes until June 30, 2022.     On March 21, 2022, the Company entered into a Facility Agreement with a current shareholder and noteholder of the Company, pursuant to which the shareholder agreed to provide to the Company a $10.0 million unsecured standby line of credit facility. Pursuant to the Credit Facility, the Company paid a facility commitment fee of 100,000 shares of our common stock with a fair market value of $3.03 per share upon the effective date of the Credit Facility

● Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 186,488 common shares of the Company.

Warrants

The following is a summary of the Company’s warrant activity for the six months ended June 30, 2022 (unaudited):

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2021		1,403,610		$	4.61	3.0 years
Granted		142,690		$	3.70	5.0 years
Exercised/cancelled		(241,944	)	$	4.49	0.1 years
Outstanding at June 30, 2022		1,304,356		$	4.53	3.3  years

Stock Options

The Company determined the grant date fair value of options granted for the six months ended June 30, 2022, using the Black Scholes Method and a Monte Carlo simulation for those stock options granted with a market vesting condition and the following assumptions:

Expected volatility	123-127%
Expected term	5 years
Risk free rate	2.14%-3.38%
Dividend rate	0.00%

Activity related to stock options for the six months ended June 30, 2022 (unaudited), is summarized as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value
Outstanding as of December 31, 2021		8,910,994		$	6.48		6.7	$	67,488,214
Granted		1,141,541		$	2.80		10.0		0
Exercised		(281,031	)	$	3.28		8.8		0
Forfeited/cancelled		(73,889	)	$	7.22				0
Outstanding as of June 30, 2022		9,697,615		$	5.96		6.1	$	403,078
Exercisable as of June 30, 2022		5,052,541		$	5.45		4.4	$	393,411

The following table summarizes stock option information  as of June 30, 2022 (unaudited):

Exercise Price	Outstanding		Contractual Life (Yrs.)		Exercisable
$.03 - $4.00		4,438,577		4.2		3,097,242
$4.01 - $7.00		151,667		4.1		151,667
$7.01 - $10.00		3,416,135		8.9		724,466
$10.01 - $15.97		1,691,236		5.3		1,079,166
		9,697,615		6.1		5,052,541

During the six months ended June 30, 2022, the Company recognized approximately $4,499,000 of stock option compensation expense of which approximately $1,396,000 relates to market condition-based awards of directors and officers. As of June 30, 2022, there was approximately $13,450,774 of unrecognized compensation costs related to stock options outstanding that is expected to be expensed through 2026.