About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

ATLANTA, GA, April 08, 2024 (GLOBE NEWSWIRE) -- Trust Stamp (NASDAQ:IDAI), the Privacy-First Identity CompanyTM, providing AI-powered trust and identity services used globally across multiple sectors, is offering fast-tracked implementation to financial institutions and other enterprises that are currently using voice recognition technologies or accepting voice instructions via telephone calls. Rapid advances in deep fake technology using Generative-AI have made it possible for bad actors to accurately imi ...

Liquidity and Cash Flow - Cash and cash equivalents increased to $3,140,747 in 2023 from $1,254,494 in 2022, reflecting a significant improvement in liquidity[257] - Cash and cash equivalents increased to $3.14 billion at the end of 2023 from $1.25 billion at the end of 2022, a 150.8% increase[269] - Net cash flows from financing activities increased to $10.21 billion in 2023 from $5.10 billion in 2022, a 100.2% increase[269] - Negative net operating cash outflows for the year ended December 31, 2023 was $7.85 million[278] - Cash paid during the period for interest was $580[271] Accounts Receivable and Payables - Accounts receivable decreased to $686,327 in 2023 from $1,008,375 in 2022, indicating a reduction in outstanding receivables[257] - Gross receivables as of December 31, 2023 were $694 thousand[299] - Accrued expenses as of December 31, 2023, totaled $1,143,890, compared to $1,099,824 in 2022, with significant increases in compensation payable ($377,403 vs. $171,851) and accrued employee taxes ($624,525 vs. $591,992)[384] Assets and Liabilities - Total current assets rose to $4,697,942 in 2023 from $2,874,401 in 2022, driven by higher cash and prepaid expenses[257] - Total liabilities decreased to $3,978,434 in 2023 from $5,786,774 in 2022, showing a reduction in financial obligations[257] - Property and equipment, net decreased to $56,436 in 2023 from $300,664 in 2022, reflecting asset disposals or write-offs[257] - Intangible assets, net, decreased to $223,690 in 2023 from $251,686 in 2022, with patent application costs increasing to $484,035 from $382,285[385] - The company added 4 patents and 1 trademark in 2023, increasing the total number of patents to 17, and recognized $160 thousand in intangible asset amortization expense, up from $107 thousand in 2022[386] - Estimated future amortization expense for intangible assets is $120,078 in 2024, $75,043 in 2025, and $28,569 in 2026[387] - The company has a financial liability of $162 thousand for an executed agreement with a telecommunications company, expected to be paid by December 31, 2024[430] Revenue and Expenses - Net revenue for 2023 decreased to $4.56 billion from $5.39 billion in 2022, a decline of 15.3%[260] - Total revenue for 2023 was $4.56 million, a decrease from $5.39 million in 2022[313] - Professional services revenue for 2023 was $4.26 million, slightly down from $4.42 million in 2022[313] - License fees revenue increased to $300 thousand in 2023 from $250 thousand in 2022[313] - Advertising and marketing expenses were $224 thousand in 2023, up from $217 thousand in 2022[319] - Research and development expenses decreased to $2.35 billion in 2023 from $2.47 billion in 2022, a 5% reduction[260] - Selling, general, and administrative expenses decreased to $8.40 billion in 2023 from $12.44 billion in 2022, a 32.5% reduction[260] - Depreciation and amortization expenses increased to $789.59 million in 2023 from $760.50 million in 2022, a 3.8% increase[260] - Capitalized internal-use software impairment of $19 thousand recognized in 2023, compared to no impairment in 2022[304] Losses and Deficit - Accumulated deficit widened to $50,853,285 in 2023 from $39,299,726 in 2022, reflecting continued operational losses[257] - The company has incurred significant losses and needs to raise additional funds to meet its obligations, raising substantial doubt about its ability to continue as a going concern[250] - Net loss for the year ended December 31, 2023 was $7.64 million[278] - Accumulated deficit as of December 31, 2023 was $50.85 million[278] - Net loss attributable to T Stamp Inc. decreased to $7.64 billion in 2023 from $12.09 billion in 2022, a 36.8% improvement[260] - Comprehensive loss attributable to T Stamp Inc. decreased to $7.74 billion in 2023 from $12.04 billion in 2022, a 35.7% improvement[263] - Net loss before taxes improved to $7,651,127 in 2023 from $12,070,464 in 2022, with U.S. losses decreasing to $4,433,956 from $7,911,970[388] - Net loss per share attributable to common stockholders improved to $1.07 in 2023 from $2.55 in 2022, with weighted average shares increasing to 7,127,560 from 4,732,774[396] Stockholders' Equity and Capital - Total stockholders' equity increased to $3,914,880 in 2023 from $625,144 in 2022, primarily due to additional paid-in capital[257] - The company's total promissory notes payable increased from $886,465 in 2022 to $953,877 in 2023, with accrued interest rising from $16,775 to $40,317[342] - Malta loan interest rate increased from 2.5% in 2022 to 4.5% in 2023[344] - Liability classified warrants decreased in fair value from $261,569 in 2022 to $256,536 in 2023[345] - The company issued a warrant to purchase up to $1.00 million of capital stock at a 20% discount, with a fair value of $250 thousand as of December 31, 2023[345] - Equity classified warrants outstanding increased significantly from 1,465,083 in 2022 to 6,446,199 in 2023[349] - The company received $884 thousand from the Maltese government as of December 31, 2023, covering 75% of payroll costs for the first 24 months[342] - The company's potential common shares outstanding were not included in diluted net loss per share calculations as the effect would be anti-dilutive[338] - The company issued 271,593 warrants from August 2021 to December 2021 and 15,421 warrants from January 2022 to February 2022, which became exercisable on January 26, 2022[354] - Investors exercised 2,850 warrants at $20.00 per share, generating $57 thousand in cash proceeds during the quarter ended December 31, 2022[355] - The company sold 195,000 shares of Class A Common Stock and issued 390,000 warrants at $8.85 per share, totaling $1,511,250 in proceeds on September 14, 2022[357] - On June 5, 2023, the company reduced the exercise price of 390,000 warrants to $2.30, resulting in a total purchase price of $897,000[359] - The company issued 270,000 shares of Class A Common Stock for $621,000 on August 18, 2023, after exercising 270,000 warrants at $2.30 per share[360] - On December 21, 2023, the company reduced the exercise price of 120,000 warrants to $1.34, resulting in $160,800 in proceeds[361] - The company issued 1,573,330 shares of Class A Common Stock for net proceeds of $4,778,550 on April 18, 2023, after deducting placement fees and legal expenses[365] - On December 21, 2023, the company reduced the exercise price of 1,573,330 warrants to $1.34, resulting in $2,108,262 in proceeds[366] - The company issued 736,400 shares of Class A Common Stock for net proceeds of $2,686,773 on June 5, 2023, after deducting placement fees and legal expenses[369] - The company issued 322,300 and 221,000 shares of Class A Common Stock for $322 and $221, respectively, on June 12 and June 23, 2023, after exercising pre-funded warrants[370] - The company sold mobile hardware for a gross sales price of $180 thousand and a gain of $108 thousand on April 26, 2023, and another portion for $197 thousand with a gain of $108 thousand on May 26, 2023[383] Stock-Based Compensation - Stock-based compensation decreased to $763.29 million in 2023 from $2.40 billion in 2022, a 68.2% reduction[269] - The company granted stock-based awards to employees totaling $627 thousand in RSUs in 2023, down from $1.80 million in 2022[400] - The company had 393,583 stock options outstanding as of December 31, 2023, with a weighted average exercise price of $6.27 per share and a weighted average remaining contractual life of 1.95 years[401] - The weighted average grant-date fair value of options granted in 2023 was $1.08 per share, compared to $7.65 per share in 2022[402] - As of December 31, 2023, the company had 446,102 RSUs outstanding, with 47,813 vested but not issued and 398,289 not yet vested[405] - Total stock-based compensation expense for 2023 was $763,288, a significant decrease from $2,399,063 in 2022[407] - The company had 71,407 common stock grants outstanding as of December 31, 2023, with 60,168 vested but not issued and 11,239 not yet vested[404] - The company had unrecognized stock-based compensation related to RSUs of $25,000 as of December 31, 2023[405] Leases and Operating Expenses - Deferred revenue dropped significantly to $10,800 in 2023 from $1,811,680 in 2022, indicating a decline in advance payments[257] - The company elected not to separate lease components from non-lease components and accounts for leases as a single lease component[334] - The company's operating lease right-of-use assets equal the carrying amount of related operating lease liabilities, adjusted for lease payments and incentives[332] - Operating lease liabilities are recognized at the present value of lease payments, using an estimated incremental borrowing rate for discounting[332] - The company's operating leases have a weighted average remaining lease term of 2.41 years and a weighted average discount rate of 5.0% as of December 31, 2023[425] - The company terminated four leases in 2023, incurring $10,932 in lease termination fees and recognizing a loss of $669[426] - The company extended its Malta office lease agreement in April 2023, increasing the operating lease right-of-use asset by $82,000 and the operating lease liability by $83,000[426] - The company entered into a new 60-month motor vehicle lease in Malta in November 2023, increasing the operating lease right-of-use asset by $47,000 and the operating lease liability by $41,000[427] - Operating lease right-of-use assets decreased from $315,765 in 2022 to $164,740 in 2023, a reduction of 47.8%[428] - Total operating lease liabilities decreased from $280,202 in 2022 to $135,007 in 2023, a reduction of 51.8%[428] - Total lease expense decreased from $366,721 in 2022 to $269,208 in 2023, a reduction of 26.6%[429] - Cash paid for operating cash flows from operating leases decreased from $258,892 in 2022 to $179,621 in 2023, a reduction of 30.6%[429] - Future maturities of ASC 842 lease liabilities for 2024 total $85,135, including $81,236 in principal payments and $3,899 in interest payments[428] - Short-term operating lease liabilities decreased from $177,795 in 2022 to $81,236 in 2023, a reduction of 54.3%[428] - Long-term operating lease liabilities decreased from $102,407 in 2022 to $53,771 in 2023, a reduction of 47.5%[428] - The company did not incur variable lease expense during the year ended December 31, 2023[429] Taxes and Legal Matters - The company's effective tax rate was 0% for both 2023 and 2022[325] - No unrecognized tax benefits as of December 31, 2023 and 2022[327] - The company had no accrued penalties related to uncertain tax positions as of December 31, 2023 and 2022[328] - The company is subject to potential tax examination in the U.S. for tax years 2020 through 2022[329] - Federal net operating loss carryforwards totaled $19,127,170 as of December 31, 2023, with $18,553,119 having an indefinite life[392] - The company is not involved in any pending or threatening litigation as of December 31, 2023[431] Intellectual Property - The company received multiple patents in 2023, including "Systems and Processes for Lossy Biometric Representation" and "Ownership Validation for Cryptographic Asset Contracts Using Irreversibly Transformed Identity Tokens," expanding its intellectual property portfolio[388] Audits and Financial Statements - The company's financial statements were audited by Marcum LLP, which expressed an unqualified opinion on the financial statements[249]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): March 27, 2024 T STAMP INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (Commission File Number) Delaware 001-41252 81-3777260 (I.R.S. Employer Identification Number) 3017 Bolling Way NE, Floors 1 and 2, Atlanta, Georgia 30305 (Address o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 Or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _____________ Commission file number: 001-41252 T Stamp Inc. (D/B/A Trust Stamp) (Exact name of registrant as specified in its ch ...

Revenue and Market Growth - Trust Stamp's primary products, utilizing the Irreversibly Transformed Identity Token, accounted for the majority of its revenues during the six months ended June 30, 2023[173]. - The global biometric system market is valued at $41.1 billion in 2023, with a forecast compound growth of 20.4% from 2023 to 2030, reaching an estimated $150.6 billion by 2030[171]. - The company anticipates user-based revenue starting in 2024, with growth expected year-on-year thereafter[177]. - Trust Stamp's strategic pivot towards a modular SaaS model is expected to negatively impact revenue in 2023 but increase potential revenue in 2024 and beyond[174]. Financial Performance - Net revenue for the three months ended June 30, 2023, decreased by 34.94% to $460,804 from $708,288 in the same period of 2022, primarily due to the termination of the ICE Contract[190]. - Net revenue for the six months ended June 30, 2023, decreased to $919 thousand, a decline of 73.95% from $3.53 million in the same period in 2022, largely due to the termination of the ICE contract which previously generated $2.44 million[213]. - Adjusted EBITDA loss for the three months ended June 30, 2023, decreased by 6.73% to $2.07 million from $2.22 million in the same period of 2022[187]. - Adjusted EBITDA loss for the six months ended June 30, 2023, increased by 29.91% to $4.36 million from $3.35 million in the same period of 2022, driven by a reduction in stock-based compensation[188]. - The Company's operating loss decreased by $556 thousand or 18.91% for the three months ended June 30, 2023, compared to the same period in 2022, primarily due to a reduction in operating expenses by $803 thousand or 22.02%[205]. Expenses and Cost Management - Cost of services decreased by 41.43% to $203,928 for the three months ended June 30, 2023, compared to $348,166 in the same period of 2022, mainly due to the termination of the ICE Contract[194]. - Selling, general, and administrative expenses decreased by 25.87% to $1,877,616 for the three months ended June 30, 2023, from $2,532,849 in the same period of 2022, largely due to headcount reductions[200]. - Research and development expenses remained relatively stable, decreasing by only 0.02% to $574,397 for the three months ended June 30, 2023, compared to $574,490 in the same period of 2022[196]. - Selling, general, and administrative expenses decreased by $1.85 million, or 32.49%, for the six months ended June 30, 2023, primarily due to a 23.08% reduction in global headcount[222]. Customer and Product Development - Trust Stamp's Orchestration Layer is designed to facilitate no-code and low-code implementations, making adoption faster and cost-effective for a broader range of potential customers[178]. - The Orchestration Layer generated $110,000 in total revenue from customers during the three months ended June 30, 2023, with 31 enterprise customers onboarded since its launch[191]. - The flagship enterprise customer on the Orchestration Layer platform experienced a revenue growth of 430.99% between the comparative periods, achieving gross margins exceeding 82%[192]. - The Company generated $207 thousand in total revenue from the Orchestration Layer, with 22 enterprise customers onboarded through FIS on the SaaS platform, and revenue from the flagship customer grew by 396.97%[214]. Assets and Liabilities - Total current assets increased by 110.74% or $3.18 million from $2.87 million as of December 31, 2022, to $6.06 million as of June 30, 2023, driven by a cash increase of $3.78 million[236]. - Total current liabilities increased by 3.21% or $143 thousand from $4.45 million as of December 31, 2022, to $4.59 million as of June 30, 2023, primarily due to an $887 thousand increase in deferred revenue[237]. - The Company's current ratio improved from 0.65 as of December 31, 2022, to 1.32 as of June 30, 2023, indicating enhanced ability to meet near-term liabilities[238]. Impairments and Other Income - The Company recognized an impairment on digital assets of $24 thousand during the three months ended June 30, 2022, which was not present in the same period in 2023, resulting in a 100% decrease in impairment[209]. - Other income increased by $212 thousand for the three months ended June 30, 2023, primarily due to a $213 thousand gain on the sale of mobile hardware assets[210]. - Other income increased significantly by $249 thousand, or 1,973.47%, to $261,547 for the six months ended June 30, 2023, primarily due to a $213 thousand gain from the sale of mobile hardware assets[231]. Financing and Cash Flow - Net cash from financing activities was $7.42 million for the six months ended June 30, 2023, compared to $3.69 million in the same period of 2022, reflecting increased capital raising efforts[246]. - Cash used in investing activities decreased significantly to $17 thousand in the six months ended June 30, 2023, from $524 thousand in the same period of 2022, primarily due to reduced property and equipment expenditures[245]. Company Classification and Reporting - The Company is classified as an "emerging growth company" and may take advantage of certain reporting exemptions until it no longer qualifies[259]. - The Company may remain an "emerging growth company" for up to five years, starting January 26, 2022, unless the market value of its Common Stock held by non-affiliates exceeds $700 million[260]. - Ongoing public reporting requirements are less rigorous for the Company compared to non-emerging growth companies, potentially resulting in less information for shareholders[261]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[262].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _____________ Commission file number: 001-41252 T Stamp Inc. (D/B/A Trust Stamp) (Exact name of registrant as specified in its charte ...

Financial Performance - The company reported a loss of $9.1 million for the year ended December 31, 2021, with operating cash outflows of $6.7 million[293]. - As of December 31, 2021, the company had an accumulated deficit of $27.2 million[293]. - The company has not yet generated profits and has a significant working capital deficiency, raising concerns about its ability to continue as a going concern[299]. - Net revenue for 2022 was $5,385,077, representing a 46.4% increase from $3,677,896 in 2021[308]. - The operating loss for 2022 was $12,078,923, compared to a loss of $8,890,992 in 2021, indicating a worsening of 35.5%[308]. - Net loss attributable to T Stamp Inc. for 2022 was $12,091,540, compared to $9,057,163 in 2021, reflecting a 33.6% increase in losses[308]. - For the year ended December 31, 2022, T Stamp Inc. reported a net loss of $12.09 million, compared to a net loss of $9.06 million in 2021, representing a 33.4% increase in losses year-over-year[330]. - The company experienced negative cash flows from operating activities amounting to $6.34 million in 2022, slightly improved from negative cash flows of $6.70 million in 2021[330]. Capital Raising Activities - The company raised a total of $4.0 million from the sale of 260,245 shares of Class A Common Stock in a Reg D offering on March 12, 2021[166]. - An additional $4.6 million was raised from 227,595 shares of Class A Common Stock in a Reg CF offering on August 25, 2021[166]. - The company raised $1.5 million from the sale of 195,000 shares of Class A Common Stock in a Reg D offering on September 14, 2022[166]. - T Stamp Inc. raised $5.10 million from financing activities in 2022, down from $9.34 million in 2021, reflecting a 45.0% decrease[330]. Financial Position - Total assets decreased to $6,411,918 in 2022, down 26.0% from $8,664,654 in 2021[305]. - Total liabilities rose to $5,786,774 in 2022, an increase of 59.3% from $3,630,938 in 2021[305]. - Cash and cash equivalents decreased significantly to $1,254,494 in 2022, down 63.9% from $3,475,695 in 2021[305]. - Total stockholders' equity decreased to $625,144 in 2022, down 87.6% from $5,033,716 in 2021[305]. - The company reported an accumulated deficit of $39.30 million as of December 31, 2022, highlighting ongoing financial challenges[330]. Audit and Compliance - The financial statements for the year ended December 31, 2022, present the company's financial position fairly in accordance with GAAP[298]. - The company conducted its audit in accordance with PCAOB standards, ensuring reasonable assurance about the financial statements' accuracy[302]. - The company has plans to mitigate its financial conditions as described in its financial statements[293]. Customer Concentration - As of December 31, 2022, three customers represented 96% of total accounts receivable, with individual contributions of 37%, 33%, and 26%[347]. - During the year ended December 31, 2022, approximately 93.60% of total net revenue was generated from three customers, specifically 61.01% from ICE, 18.36% from an S&P 500 Bank, and 14.23% from Mastercard[348]. Research and Development - Research and development expenses were $2,474,327 in 2022, slightly down by 2.2% from $2,529,501 in 2021[308]. - Research and development costs are expensed as incurred, primarily consisting of personnel costs related to software activities and application development[375]. Stock and Equity - A reverse stock split was approved, effective March 23, 2023, at a ratio of 1-for-5, aimed at improving the stock's marketability[322]. - The company has a single operating and reportable segment, with financial information reviewed on a consolidated basis[342]. - The company accounts for stock-based compensation at fair value, with the calculated fair value recognized as expense over the requisite service period[377]. Tax and Deferred Assets - The company reported a total deferred tax asset of $9,573,481 as of December 31, 2022, compared to $6,462,319 in 2021, reflecting a 48.5% increase[449]. - The company had Federal net operating loss carryforwards of $18,103,710 as of December 31, 2022, with $17,529,659 generated from 2018 onwards having an indefinite life[451]. - The company recognized a total income tax expense of $21,076 for the year ended December 31, 2022, compared to $0 in 2021[448]. Impairment and Losses - The company recorded $28 thousand of impairment losses on digital assets during the year ended December 31, 2022[360]. - The company has not experienced any significant losses on its accounts receivable as of December 31, 2022 and 2021[347]. Miscellaneous - The company assessed that there was no material impact from the COVID-19 pandemic on its consolidated financial statements for the twelve months ended December 31, 2022[341]. - Trust Stamp Malta acquired Pixelpin for $92 thousand, with the fair value of net assets acquired totaling $91,754 thousand, including trade name and trademarks valued at $90,621 thousand[403].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Atlanta, Georgia, 30305 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _____________ Commission file number: 001-41252 T Stamp Inc. (D/B/A Trust Stamp) (Exact name of registrant as ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _____________ Commission file number: 001-41252 T Stamp Inc. (D/B/A Trust Stamp) (Exact name of registrant as specified in its charte ...