Ipsidy Inc. (AUID) Is Accused of Misstating its Sources of Revenue
Robbins LLP is investigating the officers and directors of Ipsidy Inc. (NASDAQ: AUID) for breaches of fiduciary duties and violations of securities laws. Ipsidy claims to operate an Identity as a Service (IDaaS) platform that delivers a suite of secure, mobile, and biometric identity solutions worldwide.
On December 16, 2021, White Diamond Research published a report alleging that Ipsidy “has nothing going for it” and its claims of being a “pure-play SaaS [software as a service] business” are misleading, as “[n]one of its revenues have been from its SaaS product … and 70% are from low tech, legacy businesses.” The report claims the Company’s revenues “aren’t from its identity verification application” and that its “REAL businesses are selling plastic cards in South Africa and leasing bus ticket kiosks in Colombia.” Regarding its financials, the report noted that in the quarter ended September 30, 2021, Ipsidy “had a loss of $5.2M and cash burn of $3.2M” and “will likely be out of cash” soon. Further, Ipsidy did not give any guidance in its Q321 earnings call. Finally, the Company’s relationship with its newest customer, Hamilton Reserve Bank, is questionable and did not generate any new revenue in the quarter the relationship was announced.
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