IDAI

T Stamp Inc. (IDAI) - 10-Q Summary for Period Ended June 30, 2026

Business Context and Reporting Period

This is a Quarterly Report (Form 10-Q) for T Stamp Inc. (d/b/a Trust Stamp) for the period ended June 30, 2026. The Company develops AI-powered identity authentication and data protection software for enterprise, government, and peer-to-peer markets. It operates as a single reportable segment focused on artificial intelligence solutions. The Company is classified as a non-accelerated filer, smaller reporting company, and emerging growth company.

Key Financial Metrics

Note: Total Debt includes $5,000,000 in a new secured promissory note at fair value and $1,120,779 in other notes payable.

Material Changes vs. Prior Period

• Revenue Growth: Net revenue increased by 22.0% ($298,643) compared to the prior six-month period. Growth was driven by a contract amendment with a key S&P 500 bank customer and new services provided to a multinational telecommunications corporation in Africa.
• Expense Increases: Operating expenses rose by 21.5% to $6.32 million. Significant increases included:
  • Research & Development: Up 42.6% due to team expansion and merit adjustments.
  • Selling, General & Administrative (SG&A): Up 16.8% due to higher salaries, stock-based compensation, and professional fees.
  • Other Expense: Increased significantly due to $250,000 in financial advisory fees related to a new debt financing.
• Debt Financing: On June 25, 2026, the Company secured a $5.51 million principal secured promissory note (net proceeds $5.0 million) from Streeterville Capital LLC, maturing in June 2028 with a 9% interest rate.
• Acquisitions: Completed the acquisition of Lexverify Ltd. (100% ownership) for $400,000 in stock and acquired a 50% equity interest in CyberFish CyberPsychology Solutions Ltd. via a mix of cash and non-cash service consideration.

Guidance, Outlook, Risks, and Unusual Items

• Going Concern Warning: The Company has raised substantial doubt about its ability to continue as a going concern for the next 12 months. It has not generated profits, has an accumulated deficit of $74.7 million, and relies on future financing or revenue growth to meet obligations.
• Outlook: Management plans to raise capital through equity or debt financings. Strategic focus includes expanding "Sovereign AI" initiatives, entering the stablecoin/crypto market with a "Wallet of Wallets" product, and expanding operations in Africa and the UK.
• Customer Concentration: Revenue is highly concentrated. During the six months ended June 30, 2026, one S&P 500 bank customer represented approximately 72% of total net revenue.
• Unusual Items:
  • Recognized $250,000 in non-cash financial advisory fees as "Other Expense."
  • Recorded $86,060 in net loss from equity method investments (QID and CyberFish).
  • Received government grant income of approximately $80,000 recognized in "Other Income."

Investor Verification Checklist

• Liquidity Runway: Verify the sufficiency of the $6.3 million cash balance against the $4.1 million operating cash burn rate and the upcoming debt service obligations on the new $5.5 million note.
• Debt Covenants: Review the specific covenants in the Streeterville Capital LLC Note Purchase Agreement, particularly the mandatory prepayment clauses upon future fundraising and the 7% exit fee.
• Customer Dependency: Assess the risk associated with the S&P 500 bank customer representing ~72% of revenue and the terms of the contract extension through 2031.
• Going Concern Status: Monitor subsequent filings for evidence of successful capital raising or significant revenue booking to mitigate the "substantial doubt" disclosure.
• Acquisition Integration: Evaluate the financial contribution and integration progress of Lexverify Ltd. and CyberFish, which were acquired early in the period.