T Stamp (US:IDAI)2025-11-14 21:19Financial Performance - Net revenue for the three months ended September 30, 2025, increased by 70.71% to $872,491 compared to $511,081 for the same period in 2024, driven by a new contract amendment with an S&P 500 bank[240]. - Net revenue for the nine months ended September 30, 2025, was $2,230,629, an increase from $1,585,153 for the same period in 2024[238]. - The Company reported a net loss of $5.78 million for the nine months ended September 30, 2025, with an accumulated deficit of $67.24 million[290]. - The Company recorded a net loss of $1,911,952 for the three months ended September 30, 2025, compared to a net income of $683,524 for the same period in 2024[238]. - Basic and diluted net loss per share attributable to T Stamp Inc. was $(0.72) for the three months ended September 30, 2025, compared to $(1.06) for the same period in 2024[238]. - Adjusted EBITDA loss (non-GAAP) for the three months ended September 30, 2025, decreased by 42.25% to a $1.24 million loss from a $2.14 million loss for the same period in 2024[233]. - The Company experienced a decrease in Adjusted EBITDA loss (non-GAAP) of 35.26% for the nine months ended September 30, 2025, to $4.30 million from $6.65 million for the same period in 2024[235]. Revenue and Expenses - Selling, general, and administrative expenses decreased by $673,000, primarily due to a 33% reduction in salaries and compensation, including stock-based compensation, during the three months ended September 30, 2025[234]. - Selling, general, and administrative (SG&A) expenses decreased by $673 thousand, or 30.82%, to $1,509,386 for the three months ended September 30, 2025, compared to $2,181,907 in the same period of 2024[249]. - Cost of services increased by 42.32% to $362,766 for the three months ended September 30, 2025, primarily due to increased internal developer costs and service requests from the S&P 500 bank[245]. - Cost of services (COS) increased by $229 thousand, or 28.78%, to $1,026,252 for the nine months ended September 30, 2025, compared to $796,925 in the same period of 2024[268]. - Research and development (R&D) expenses increased by $6 thousand, or 1.01%, to $575,258 for the three months ended September 30, 2025, compared to $569,506 in the same period of 2024[247]. - R&D expenses decreased by $60 thousand, or 3.80%, to $1,525,863 for the nine months ended September 30, 2025, compared to $1,586,085 in the same period of 2024[269]. Cash Flow and Financing - The Company had approximately $5.37 million in cash as of September 30, 2025, with a net loss of $5.78 million for the same period[284]. - Net cash flows from operating activities decreased by 35.07% to $4.01 million for the nine months ended September 30, 2025, compared to $6.18 million for the same period in 2024[293]. - Net cash used in investing activities was $665,000 for the nine months ended September 30, 2025, primarily for investments in technologies and equipment purchases[296]. - Net cash flows from financing activities increased to $7.32 million for the nine months ended September 30, 2025, compared to $4.37 million for the same period in 2024[297]. - The Company raised gross proceeds of $5.36 million under the Equity Distribution Agreement and $4.35 million from the Warrant Exercise and Exchange Inducement Agreement, providing sufficient liquidity for planned operations[291]. Debt and Obligations - The Company repaid a secured promissory note totaling $2,261,413, which included $51,413 in interest expense[171]. - The secured promissory note had an original principal amount of $2,210,000 and carried a 9% annual interest rate[172][173]. - The Company repaid a secured promissory note of $3.00 million plus interest of $69,000 on January 10, 2025[298]. - The Company entered into a Note Purchase Agreement on July 1, 2025, issuing a Secured Promissory Note of $2.21 million, which was fully repaid on October 1, 2025[286]. Market and Strategic Initiatives - The Company is focusing on the cryptocurrency market, particularly Stablecoins, and developing products tailored to this sector[158]. - The total stablecoin market capitalization is around $170 billion as of mid-2025, with projections to double to approximately $300–400 billion by 2030[207]. - The global market for microfinance is estimated at $250.4 billion in 2024, projected to reach $506 billion by 2030[208]. - The Company is expanding its international presence by opening an office in Tokyo, supported by local government funding[161]. - The Company is participating in the K-Startup Grand Challenge 2025 to establish a presence in South Korea and the broader Asia-Pacific region[161]. - The Company has established go-to-market partnerships in Nigeria and Ghana to expand its market reach[161]. Cybersecurity and Technology - The Company has strengthened its cybersecurity certifications, adding SOC2 certification to its existing credentials[161]. - In 2024, significant cybersecurity incidents exposed billions of personal records, highlighting the market potential for the Company's services in data security and fraud prevention[202]. - In 2024, global losses from payment card fraud reached approximately $33.8 billion, driven by increasing card-not-present and e-commerce fraud[203]. - The Merchant Risk Council estimates that merchants lose about 3.2% of annual e-commerce revenue to fraud, with online payment fraud losses projected to total $362 billion globally by 2028[203]. - The ramp-up process for QID's customer-facing activities has taken longer than anticipated, affecting service delivery and billing levels[289]. - The Company anticipates launching a biometrically secured proprietary non-custodial software wallet in January 2026[209]. Management and Personnel - Lance Wilson was appointed as the new Chief Financial Officer with an annual base salary of $182,250 and eligibility for an annual equity bonus of at least 10% of his base salary[189]. - The Company has onboarded 95 financial institutions with over $348 billion in assets via FIS, totaling 108 customers implementing the Orchestration Layer[225]. - The Orchestration Layer has attracted over sixty financial institutions, although full production has been slow, impacting revenue expectations[218].