T Stamp, Inc. Class A (IDAI) AI Stock Analysis

• Market Cap: $4.73M
• Dividend Yield: N/A
• Average Volume (3M): 107.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -51.92%
• EPS Growth: 48.03%
• Country: US
• Employees: 80
• Sector: Technology
• Sector Strength: 43
• Industry: Software - Application
• EPS (TTM): -0.86
• Shares Outstanding: 2,487,052
• 10 Day Avg. Volume: 95,298
• 30 Day Avg. Volume: 107,278
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.60
• Price to Cash Flow (P/CF): -0.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.25
• Price Target Upside: 528.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

T Stamp, Inc. Class A faces substantial financial difficulties, characterized by declining revenues and a heavy reliance on debt, resulting in significant net losses. Technical indicators highlight a bearish trend, aligning with the company's challenging financial position. Furthermore, the negative P/E ratio and absence of dividends make the stock unattractive from a valuation perspective.

Positive Factors

Financial Stability

Recent capital raises have strengthened Trust Stamp's balance sheet, with significant cash inflows expected to support operations.

Product Development

Trust Stamp's new product initiatives, targeting the government sector and leveraging age-estimation technology, are viewed as potential growth catalysts.

Strategic Partnership

Trust Stamp has entered into a strategic partnership with Qenta, which is expected to generate up to $4.3M in revenue for 2025, including a $1M one-time license fee and monthly service fees capped at $3.6M annually.

Negative Factors

Financial Constraints

The company ended September with $0.6M in cash and $1.7M in debt, indicating financial constraints.

Margin Contraction

Gross margin for 3Q24 was 50.1% compared to 92.2% in 3Q23, indicating margin contraction.

Revenue Decline

The company reported 3Q24 results with revenue of $0.5M, down 83% year-over-year.

T Stamp, Inc. Class A Business Overview & Revenue Model

Company Description

T Stamp Inc. develops and markets identity authentication software solutions for government, enterprise partners, and peer-to-peer markets in the United States, the United Kingdom, and Malta. The company's artificial intelligence powered solutions include researching and leveraging biometric science, cryptography, and data mining to deliver insightful identity & trust predictions while identifying and defending against fraudulent identity attacks. Its solution converts biometric and other identifying data into an Irreversibly Transformed Identity Token that serves as a secure tokenized identity. The company also offers solutions for privacy and data protection, document validation, identity verification, duplicate detection, and biometric capture. It serves banking/fintech; humanitarian and development services; biometrically secured email; KYC/AML compliance; government and law enforcement; P2P transactions, social media, and sharing economy; and real estate, travel, and healthcare industries. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

T Stamp, Inc. generates revenue through a combination of licensing fees, software subscriptions, and service contracts. Key revenue streams include fees from the deployment of its identity verification platforms and solutions to clients in various industries. The company partners with organizations requiring robust identity verification processes, often on a subscription basis, which provides a steady income stream. Additionally, T Stamp, Inc. may engage in strategic partnerships and collaborations that enhance its market reach and contribute to its financial performance.

T Stamp, Inc. Class A Financial Statement Overview

Summary

T Stamp, Inc. is experiencing significant financial strain with declining revenues, persistent losses, and negative cash flows. The company's balance sheet shows moderate leverage but weak liquidity, and its cash flow position is deteriorating. Immediate strategic improvements are necessary to address these financial challenges.

Income Statement

T Stamp, Inc. shows a concerning trend with declining revenue and persistent negative net income over the years. The TTM revenue of $2.16 million is significantly lower than the previous year's $4.56 million, indicating a revenue decline. The company consistently reports negative EBIT and EBITDA margins, reflecting operational challenges. Despite a gross profit margin of 33.8% in TTM, high operating expenses result in substantial losses, highlighting profitability issues.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.34 in TTM, suggesting manageable debt levels relative to equity. However, the equity ratio of 51.2% points to a weak capital structure, and the substantial decrease in cash reserves over time raises liquidity concerns. The return on equity remains negative due to consistent net losses, indicating poor returns for shareholders.

Cash Flow

T Stamp, Inc. faces challenges in cash flow generation, with consistently negative free cash flow and operating cash flow. The TTM free cash flow worsened to -$8.3 million, reflecting operational inefficiencies. The operating cash flow to net income ratio is negative, indicating cash flow issues and a lack of alignment between earnings and cash generation. Despite some financing inflows, the company's cash position has weakened.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.16M	4.56M	5.39M	3.68M	2.65M	2.11M
	Gross Profit
731.00K	3.65M	3.60M	2.53M	1.13M	1.41M
	EBIT
-11.06M	-7.89M	-12.08M	-8.83M	-8.21M	-2.04M
	EBITDA
-6.75M	-7.63M	-11.03M	-8.45M	-10.09M	-1.74M
	Net Income Common Stockholders
-9.42M	-7.64M	-12.09M	-8.91M	-10.95M	-2.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
331.76K	3.14M	1.25M	3.48M	1.47M	331.76K
	Total Assets
3.99M	7.89M	6.41M	8.66M	4.81M	3.99M
	Total Debt
832.25K	1.09M	1.17M	856.26K	344.22K	832.25K
	Net Debt
500.49K	-2.05M	-87.83K	-2.62M	-1.13M	500.49K
	Total Liabilities
3.90M	3.98M	5.79M	3.63M	2.74M	3.90M
	Stockholders Equity
-72.19K	3.75M	463.70K	4.87M	1.91M	-72.19K
Cash Flow		Free Cash Flow
-8.30M	-7.86M	-7.32M	-7.48M	-4.99M	-2.24M
	Operating Cash Flow
-8.07M	-7.85M	-6.34M	-6.71M	-4.48M	-1.68M
	Investing Cash Flow
-905.38K	-401.68K	-998.19K	-768.35K	-512.16K	-559.15K
	Financing Cash Flow
6.44M	10.21M	5.10M	9.35M	6.09M	2.40M

T Stamp, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDAI, the sentiment is Negative. The current price of 1.79 is below the 20-day moving average (MA) of 2.09, below the 50-day MA of 2.78, and below the 200-day MA of 4.76, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 19.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDAI.

T Stamp, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLTR	77 Outperform	$197.95B	447.81	10.90%	―	28.79%	112.38%
Sector *	57 Neutral	$20.89B	10.40	-13.99%	2.52%	4.47%	-23.34%
AI	54 Neutral	$2.79B	―	-32.07%	―	23.79%	4.10%
UPST	51 Neutral	$4.31B	―	-20.27%	―	24.50%	49.38%
SSYS	47 Neutral	$702.75M	―	-14.34%	―	-8.79%	5.32%
IDAI	41 Neutral	$4.73M	―	-157.84%	―	-51.92%	48.03%
VERI	41 Neutral	$103.68M	―	-365.12%	―	-16.08%	37.41%

T Stamp, Inc. Class A Corporate Events

T Stamp Inc. Addresses Nasdaq Compliance Notice

On January 14, 2025, T Stamp Inc. received a notification from Nasdaq regarding non-compliance with listing rules due to the absence of an annual stockholders meeting within the required timeframe. The company plans to regain compliance by submitting a plan within 45 days and has scheduled its 2024 Annual Stockholder Meeting for January 29, 2025. While the compliance plan is under review, T Stamp Inc.’s securities will continue trading on Nasdaq.

T Stamp, Inc. Class A Strategic Repositioning and Compliance

Trust Stamp has announced a reverse stock split at a 1-for-15 ratio, effective January 6, 2025, to comply with Nasdaq Rule 5550(a)(2) and enhance investment eligibility. CEO Gareth N. Genner highlighted the strategic repositioning for 2025 with new partnerships, income sources, and reduced expenses, aiming to grow the shareholder base by attracting family offices and institutions.