Benzinga | Dec 17, 2021 12:42PM EST

Read What White Diamond Research Thinks Of Ipsidy

* Ipsidy Inc (NASDAQ:AUID) appreciated 300% over the last year after its Nasdaq uplisting, White Diamond Research said.

* White Diamond attributed the rally to "hype regarding its selfie identity verification program."

* However, in a new report, the short seller claims that Ipsidy management "misleads investors claiming that AUID is a pure-play SaaS business" although "none of its revenues have been from its SaaS product (Identity as a Service - IDaaS) and 70% are from low tech, legacy businesses."

* The AUID story is " similar to that of cybersecurity company Intrusion Inc (NASDAQ:INTZ), one of our most successful short ideas."

* White Diamond set a price target of $1.50 on Ipsidy, implying an 89.7% downside to the December 15 closing price of $14.59.

* The stock dropped on December 16 following the short report.

* Price Action: AUID shares traded higher by 13.1% at $14.86 on the last check Friday.