authID Gets Nasdaq Deficiency Letter Over Stockholders' Equity

What happened

authID Inc. (Ticker: AUID), a Denver-based software company, disclosed in a Form 8-K filed August 21, 2026 that it received a deficiency letter from the Listing Qualifications Department of The NASDAQ Stock Market LLC dated August 18, 2026.

According to the filing, the letter states that authID is not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires a listed company to maintain stockholders' equity of at least $2,500,000. 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.

The notice also states that, as of its date, authID did not satisfy either of the two alternatives to the equity test: Nasdaq Listing Rule 5550(b)(2), which requires a market value of listed securities of at least $35 million, or Rule 5550(b)(3), which requires 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.

The company's common stock continues to trade on the Nasdaq Capital Market under the symbol "AUID." According to the price data provided, the stock closed at $0.424 on the event date, up 4.69% from the prior close of $0.405. The company reported annual revenue of $2,040,660 for the period ending December 31, 2025.

The filing

The Form 8-K is a Current Report, which public companies file with the Securities and Exchange Commission to disclose material events that shareholders should know about before the next quarterly or annual report. This one was filed under Item 3.01, "Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard," the item that specifically triggers disclosure when a company receives a listing deficiency notice.

The listed security is authID's common stock, par value $0.0001 per share. Common stock is the residual ownership stake in a company — the shares that trade on the exchange and that rank last for any payout after debts and other obligations are paid.

What this means

Nasdaq maintains several different hurdles a company must clear to keep its shares listed, and Rule 5550(b) sets out the financial ones. A company can qualify through any one of three tests: at least $2.5 million in stockholders' equity, or at least $35 million in market value of listed securities, or at least $500,000 in net income from continuing operations. authID reported $2,042,515 in stockholders' equity — roughly $457,000 below the equity threshold — and the notice says it did not meet either the market-value or the net-income alternative.

Stockholders' equity is what is left of a company's assets after subtracting its liabilities. It is the accounting measure of the value attributable to shareholders. A company that has been losing money can see this figure fall below the threshold even if it is raising capital, because the losses eat into it.

Receiving the notice does not mean the stock is being delisted, and it does not halt trading. Nasdaq Listing Rule 5810(c)(2)(A) gives the company 45 calendar days from the date of the notice — here, until October 2, 2026 — to submit a written plan to regain compliance. The filing says authID is evaluating its alternatives and intends to submit a plan on time.

If Nasdaq accepts the plan, the exchange can grant an extension of up to 180 calendar days from the date of the notice, or until February 14, 2027, for the company to show compliance. If Nasdaq rejects the plan, or if an extension is granted and the company still misses the threshold, Nasdaq issues a written delisting determination. At that point the company can appeal to an independent Nasdaq Hearings Panel under Rule 5815(a), and a timely hearing request stays any suspension or delisting while the Panel decides. The Panel can grant up to an additional 180 calendar days from the delisting determination.

The filing states there is no assurance that authID will submit a plan Nasdaq accepts, that Nasdaq will grant an extension, that the company will regain compliance within any extension period, or that it will otherwise satisfy the Nasdaq Capital Market's other continued listing requirements.

The filing does not say how authID intends to restore its stockholders' equity, and it does not identify a specific cause for the shortfall beyond the reported figure. The company's forward-looking statement section cites the possibility of raising additional capital and notes substantial doubt about its ability to continue as a going concern, a phrase auditors and companies use when there is material uncertainty about whether an entity can fund its operations over the next year.

authID is classified by the SEC under the Services-Prepackaged Software industry group, which covers companies that sell ready-made software rather than building custom systems.