08/21/2026 | Press release | Distributed by Public on 08/21/2026 15:00
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On August 18, 2026, authID Inc. (the "Company") received a deficiency letter (the "Notice") from the Listing Qualifications Department of The NASDAQ Stock Market LLC ("Nasdaq") notifying the Company that it is not in compliance with Nasdaq Listing Rule 5550(b)(1) ("Rule 5550(b)(1)"), which requires a listed company to maintain stockholders' equity of at least $2,500,000. The Notice states that the Company reported stockholders' equity of $2,042,515 in its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, and that, as of the date of the Notice, the Company did not satisfy either of the alternatives to the stockholders' equity requirement set forth in Nasdaq Listing Rules 5550(b)(2) and 5550(b)(3), which require a market value of listed securities of at least $35 million or net income from continuing operations of at least $500,000 in the most recently completed fiscal year, or in two of the three most recently completed fiscal years, respectively.
The Notice has no immediate effect on the listing or trading of the Company's common stock, which continues to trade on the Nasdaq Capital Market under the symbol "AUID." In accordance with Nasdaq Listing Rule 5810(c)(2)(A), the Company has 45 calendar days from the date of the Notice, or until October 2, 2026, to submit to Nasdaq a plan to regain compliance with Rule 5550(b)(1). The Company is evaluating alternatives available to it to regain compliance and intends to timely submit a plan.
If Nasdaq accepts the Company's plan, Nasdaq may grant the Company an extension of up to 180 calendar days from the date of the Notice, or until February 14, 2027, to evidence compliance with Rule 5550(b)(1). If Nasdaq does not accept the Company's plan, or if Nasdaq grants an extension and the Company does not regain compliance within the extension period, Nasdaq will provide written notification that the Company's common stock is subject to delisting. In that event, the Company may appeal that determination to an independent Nasdaq Hearings Panel in accordance with Nasdaq Listing Rule 5815(a), and a timely request for a hearing would stay any suspension or delisting action pending the issuance of the Panel's decision. The Panel has the discretion to grant the Company an additional period of up to 180 calendar days from the date of the delisting determination to regain compliance.
There can be no assurance that the Company will submit a plan acceptable to Nasdaq, that Nasdaq will grant any extension, that the Company will regain compliance with Rule 5550(b)(1) within any extension period, or that the Company will otherwise satisfy the other continued listing requirements of the Nasdaq Capital Market.