T Stamp (IDAI) Registration filing summary

Company overview and business model

• Develops proprietary AI-powered solutions for identity authentication, fraud prevention, and data protection, leveraging machine learning, computer vision, cryptography, and data mining across multiple industries.

• Offers modular SaaS products, including the Orchestration Layer, enabling scalable, low-code/no-code integration for enterprise clients.

• Focuses on privacy-first biometric authentication, liveness detection, and information tokenization, serving sectors such as financial services, government, humanitarian, and alternatives to detention.

• Pursues growth through licensing, joint ventures, and partnerships with established industry players, targeting global markets.

• Holds a significant portfolio of patents and trademarks, supporting its competitive positioning in the identity technology space.

Financial performance and metrics

• Net revenue for the nine months ended September 30, 2024 was $1.59 million, down 60% from $3.99 million in the prior year period, primarily due to the termination of a major contract.

• Net loss for the nine months ended September 30, 2024 was $6.53 million, compared to $4.75 million in the prior year period.

• Cash and cash equivalents as of September 30, 2024 were $598,031, with an accumulated deficit of $55.45 million.

• Operating expenses increased due to higher SG&A and cost of services, while R&D expenses decreased as more work was brought in-house.

• The company’s auditor expressed substantial doubt about its ability to continue as a going concern.

Use of proceeds and capital allocation

• Will not receive proceeds from the resale of shares by the selling stockholder; however, if all warrants are exercised for cash, could receive up to $14.5 million, intended for working capital and general corporate purposes.

• Recent capital raises include private placements, loans, and asset sales to support operations and reduce cash flow deficits.