T Stamp Inc. (IDAI) - 10-Q Summary for Period Ended September 30, 2025
Business Context and Reporting Period
T Stamp Inc. (d/b/a Trust Stamp) is a Delaware corporation developing AI-powered identity authentication and fraud prevention software for enterprise, government, and peer-to-peer markets. The company operates as a single segment focused on artificial intelligence solutions. This report covers the quarterly period ended September 30, 2025. The company is classified as a non-accelerated filer, smaller reporting company, and emerging growth company. A 1-for-15 reverse stock split became effective on January 6, 2025, and all share data has been retroactively adjusted.
Key Financial Metrics
| Metric | Three Months Ended Sept 30, 2025 | Nine Months Ended Sept 30, 2025 | Sept 30, 2025 Balance Sheet |
|---|---|---|---|
| Net Revenue | $872,491 | $2,230,629 | - |
| Net Loss (GAAP) | $(1,911,952) | $(5,781,297) | - |
| Operating Loss | $(1,770,836) | $(5,616,427) | - |
| Adjusted EBITDA (Non-GAAP) | $(1,236,821) | $(4,303,402) | - |
| Cash and Equivalents | - | - | $5,372,021 |
| Total Assets | - | - | $11,189,715 |
| Total Liabilities | - | - | $4,966,655 |
| Stockholders' Equity | - | - | $6,223,060 |
| Accumulated Deficit | - | - | $(67,239,736) |
| Net Cash Used in Operating Activities | - | $(4,014,699) | - |
| Net Cash Provided by Financing Activities | - | $7,323,082 | - |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 70.7% quarter-over-quarter (QoQ) and 40.7% year-over-year (YoY). The Q3 increase was driven by a contract amendment with an S&P 500 bank (adding ~$313k) and a new Master Technology Services Agreement with related party QID Technologies (adding ~$69k).
- Expense Reduction: Selling, General, and Administrative (SG&A) expenses decreased 30.8% QoQ and 30.5% YoY. This was primarily due to the elimination of the sales team (reduced from 9 members to 0) and the departure of the EVP of Mergers and Acquisitions.
- Operating Loss Improvement: Operating loss narrowed by 33.8% QoQ and 31.1% YoY, reflecting revenue growth and significant SG&A reductions.
- Non-Operating Volatility: Other income decreased significantly ($5.0M in Q3 2024 vs. $7.6k in Q3 2025) due to a one-time $5.0M license fee from Boumarang recognized in the prior year. Other expense also decreased as warrant termination costs incurred in 2024 did not recur.
- Debt Repayment: The company repaid a $3.0M secured promissory note to SentiLink in January 2025 and a $2.21M note to Streeterville Capital in October 2025 (subsequent to period end).
Guidance, Outlook, and Risks
- Liquidity and Going Concern: Management asserts sufficient liquidity to fund operations for the next 12 months, citing cash on hand ($5.37M) and recent capital raises. However, the company has an accumulated deficit of $67.2M and has not yet generated profits.
- Recent Capital Raises (Subsequent Events):
- Equity Distribution Agreement (ATM): Sold 1.71M shares for net proceeds of $6.01M (as of report date), nearly exhausting the $6.2M facility.
- Warrant Exercise and Exchange Inducement (WEEA): Closed November 3, 2025, generating net proceeds of $4.02M. This involved reducing exercise prices on existing warrants and issuing new warrants.
- Key Contracts:
- S&P 500 Bank: Contract extended through May 2031 with minimum gross revenue exceeding $12.7M over the term.
- QID Technologies: Related party agreement with minimum monthly billing of $100k (ramping to $300k), though ramp-up has been slower than anticipated.
- Mastercard: Revenue contribution diminishing; exclusivity expired Dec 31, 2024, with services terminating Feb 2026.
- Risks and Controls:
- Material Weakness: The company disclosed a material weakness in internal controls over financial reporting related to complex equity transactions. Remediation is ongoing but not yet fully tested.
- Customer Concentration: Two customers represented 82.7% of Q3 2025 revenue (S&P 500 Bank and QID).
- Bank Deposits: $4.11M in cash deposits exceeded FDIC insured limits as of September 30, 2025.
Investor Verification Checklist
- Revenue Sustainability: Verify the ramp-up timeline for the QID Technologies contract and the stability of the S&P 500 bank relationship given the high concentration (82.7% of Q3 revenue).
- Cash Burn Rate: Assess the runway provided by the $5.37M cash balance and recent $10M+ in financing against the $4.0M operating cash burn for the nine-month period.
- Internal Controls: Monitor the remediation progress of the material weakness regarding complex equity transactions, which impacts the reliability of financial reporting.
- Dilution Impact: Review the terms of the recent Warrant Exercise and Exchange Inducement (WEEA) and the near-exhaustion of the ATM facility to understand future dilution risks.
- Debt Obligations: Confirm the status of the Malta government loans and any remaining secured debt obligations post-repayment of the Streeterville and SentiLink notes.