Trust Stamp Provides a Business Report and Financial Results for the Year Ended December 31, 2023
March 27 2024 - 10:00AM
Trust Stamp (Nasdaq: IDAI), the Privacy-First Identity Company ™
providing AI-powered trust and identity services used globally
across multiple sectors, announced financial results and provided a
business update for year ended December 31, 2023.
Trust Stamp Chief Executive Officer, Gareth N.
Genner commented, “I am pleased to report our progress for the year
ended December 31, 2023.
The relationship with our long-term customers
remains very strong and we anticipate continued long-term growth in
the revenue derived from those relationships.
In respect of new customers, a significant
number of additional financial institutions integrated with our
Orchestration Layer both via our channel partnership and directly,
bringing the total number of integrated institutions as at the date
of our 10-K filing to 43 financial institutions representing a
fivefold increase in our financial institution customer base since
the start of 2023. We had forecast nominal revenue from those new
customers in 2023 as the financial institutions integrate and
roll-out both internally and eventually with their end-users, and
we continue to anticipate recurring revenue from those integrations
starting in 2024. We believe that the lengthy lead period from
first engagement to significant revenue for integrating financial
institutions will be rewarded by the consistency and longevity of
the resulting revenue streams.
Our 2023 focus on US-based banks via our channel partnership
with FIS has now been augmented by our participation in the
acclaimed ThinkTech program operated by The Independent Community
Bankers of America. This engagement has already resulted in
tailoring some of our product offerings for the community banking
sector and we anticipate sales from this sector starting as soon as
Q2 of this year.
The market for age estimation products is growing exponentially
fuelled by national and state legislation in the United States and
overseas. For many potential customers this is a new and time
sensitive requirement and there is no legacy vendor to be
displaced. As a result of research and development that started in
2023 and extended into 2024, we have recently announced the launch
of our AI-powered age-estimation product and are negotiating our
first engagement. We believe that this sector will be an important
complement to our mainstream identity products.
One of the benefits of our microservice architecture and
Orchestration Layer infrastructure is the ability for our
technology to be utilized in multiple sectors without significant
development work on our part. As a consequence, in late 2023 we
entered into two joint ventures to expand the market for our
products into completely new sectors, as well as a teaming
agreement with a major government contractor focused on their using
our technology for substantial Federal contracting
opportunities.
Our pre-signalled reduction in net revenue from
$5.39 million for year ended December 31, 2022 to $4.56
million for year ended December 31, 2023 resulted from the end of
the ICE pilot and our new focusing on SaaS sales, and was more than
offset by our reducing selling, general, and administrative
expenses by $4.05 million, or 32.53%, including a 48.79%
reduction in our cost of sales.
Our operating loss for year ended December 31,
2023 was $7.64 million, reduced from $12.08 million for the period
ended December 31, 2022 with a corresponding reduction in our net
loss. This resulted in a basic and net loss per share of $1.07 for
year ended December 31, 2023 compared to $2.55 for year ended
December 31, 2022.
Over the year, our balance sheet was
strengthened by equity investments and $10.32 million in net
proceeds were raised in total. The Company raised
$4.78 million (Q2 2023), $2.69 million (Q2 2023),
$621 thousand (Q3 2023), and $2.23 million (Q4 2023) in
proceeds, from three separate securities purchase agreements with
an Institutional Investor for the issuance of Class A Common Stock,
pre-funded warrants, and common stock warrants.”
Mr. Genner went on to comment, “While
significantly reducing our SG&A expenses and increasing our
sales resources, we have continued to invest in research and
development resulting in a cutting-edge patent portfolio and an
AI-powered technology stack. As of today we have 20 patents issued,
and an additional 15 patents provisional or pending, and we believe
that our patent portfolio is a significant asset that will power
and differentiate our current and future generations of innovative
products.”
Financial Performance Overview
A copy of the Company’s report on Form 10-K for
the years ended December 31, 2023 and 2022, will be filed with the
Securities and Exchange Commission and posted on the Company’s
website at https://investors.truststamp.ai/sec-filings/ on April
1st 2024.
Enquiries
Investors:
shareholders@truststamp.ai
About Trust Stamp
Trust Stamp the Privacy-First Identity CompanyTM, is a global
provider of AI-powered identity services for use in multiple
sectors, including banking and finance, regulatory compliance,
government, real estate, communications, and humanitarian services.
Its technology empowers organizations with advanced biometric
identity solutions that reduce fraud, protect personal data
privacy, increase operational efficiency, and reach a broader base
of users worldwide through its unique data transformation and
comparison capabilities.
Located across North America, Europe, Asia, and Africa, Trust
Stamp trades on the Nasdaq Capital Market (Nasdaq: IDAI).
Safe Harbor Statement: Caution Concerning Forward-Looking
Remarks
All statements in this release that are not based on historical
fact are “forward-looking statements” including within the meaning
of the Private Securities Litigation Reform Act of 1995 and the
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The information in this announcement may contain
forward-looking statements and information related to, among other
things, the company, its business plan and strategy, and its
industry. These statements reflect management’s current views with
respect to future events-based information currently available and
are subject to risks and uncertainties that could cause the
company’s actual results to differ materially from those contained
in the forward-looking statements. Investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. The company does
not undertake any obligation to revise or update these
forward-looking statements to reflect events or circumstances after
such date or to reflect the occurrence of unanticipated events.
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