Long Island identity authentication company Ipsidy Inc. has hired a new chief executive and announced plans to change its name, issue more stock and move its headquarters to Denver.
The Long Beach company, whose new name will be authID.ai, also plans to move its stock listing to the Nasdaq Capital Market from the OTCQB tier of the OTC Market Group Inc. Its new symbol will be “AUID.”
On Tuesday, the stock climbed 6.7% to close at $12.80.
The company’s technology lets business customers combine a scanned identity document with biometric facial data and use those to verify that an employee or customer is who they say they are.
Thomas Thimot, who was named CEO on June 14, said the company chose to move its headquarters to Denver in the hope of attracting data scientists and software engineers.
“Two of the most difficult places to find talent are the [California] Bay Area and the New York City area,” he said.
A government filing said the company expects to use proceeds of the stock sale for technology development, expansion of sales and marketing and other uses.
ThinkEquity, a unit of Fordham Financial Management Inc., is listed as the underwriter of the stock offering.
The latest moves echo maneuvers in 2017, when the company changed its name from ID Global Solutions Corp. to Ipsidy, moved to Long Beach from Longwood, Florida, and hired Philip Beck as chief executive.
But Thimot, who previously served as the CEO of Manhattan-based Socure, another identity verification company, said the “market has matured” and is ready for authID.ai’s solutions.
“Just about everyone knows a password is a royal pain,” he said. “Timing is everything.”
Thimot envisions a nearly friction-free future where people don’t even need their smartphone to get a latte.
“You go to the local coffee shop,” he said. “How about a world where you just walk in. Your face is your password.”
The company, incorporated in September 2011, has struggled to turn a profit on the sale of its digital authentication products.
In the quarter ended March 31, the company posted a net loss of $2.5 million on revenue of $588,999, versus a loss of $3.8 million on sales of $793,789 in the 2020 period.
Thimot succeeded Phillip Kumnick in the CEO’s job. Kumnick, who succeeded Beck as CEO in May 2020, continues with the company as chairman of the board.
The company, which leases space in Long Beach, had about 60 employees as of December 31, according to a government filing.
The company has subsidiaries in Colombia, South Africa, Peru and the United Kingdom.
Though the company plans to move to Denver, Thimot said “most people will work remotely.”
Earlier this month, the company completed a 1-for-30 reverse stock split, in which the share price is inflated by reducing the number of shares outstanding. A higher share price can qualify a company to list on a certain stock exchange or allow particular institutions to invest in the company.