# EDGAR Filing Document

**Accession Number:** 0001718939
**File Stem:** 0001104659-23-004705
**Filing Date:** 2023-1
**Character Count:** 102551
**Document Hash:** 9614ad08aedcfd46376da530c2b7c44e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-004705.hdr.sgml**: 20230119

**ACCESSION NUMBER**: 0001104659-23-004705

**CONFORMED SUBMISSION TYPE**: 10-Q/A

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20220630

**FILED AS OF DATE**: 20230119

**DATE AS OF CHANGE**: 20230118

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** T Stamp Inc
- **CENTRAL INDEX KEY:** 0001718939
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 813777260
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41252
- **FILM NUMBER:** 23535507

**BUSINESS ADDRESS:**
- **STREET 1:** 3423 PIEDMONT ROAD
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30305
- **BUSINESS PHONE:** 678-325-7835

**MAIL ADDRESS:**
- **STREET 1:** 3017 BOLLING WAY NE, FLOORS 1 AND 2
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30305

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q/A**

**(Amendment No. 1)**

x **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT**

**OF 1934**

For the quarterly period ended <u>June 30, 2022</u>

**Or**

¨ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE**

**ACT OF 1934**

For the transition period from ______________ to _____________

Commission file number: 001-41252

**T Stamp Inc. (D/B/A Trust Stamp)**

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| **3017 Bolling Way NE, Floors 1 and 2,**<br> **Atlanta, Georgia,** | **30305** |
| (Address of principal executive offices) | (Zip Code) |

---

**(404) 806-9906**

(Registrant's telephone number, including area code)

---

| |
|:---|
| **N/A** |
| (Former name, former address and former fiscal year, if changed since last report) |

---

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| Class A Common Stock, $0.01 par value per share IDAI | The NASDAQ Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨ Accelerated filer ¨ <br> Non-accelerated filer ⌧ Smaller reporting company ⌧ <br> Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

As of January 18, 2023, there were 24,271,512 shares of Class A Common Stock, par value $0.01 per share, of the registrant issued and outstanding.

**T STAMP INC.**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| **PART I.** | **FINANCIAL INFORMATION** |  |
| [Item 2.](#a_001) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_001) | [4](#a_001) |
| [Item 4.](#a_002) | [Controls and Procedures](#a_002) | [22](#a_002) |
| **PART II.** | **OTHER INFORMATION** |  |
| [Item 6.](#a_004) | [Exhibits](#a_004) | [23](#a_004) |
|  | [Signatures](#a_005) | [25](#a_005) |

---

**EXPLANATORY NOTE**

T Stamp Inc. (the "Company") is filing this Amendment No. 1 on Form 10-Q/A (this "Amendment") to its Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2022 (the "Original Filing" and, together with this Amendment, the "Form 10-Q Filings"), which was filed with the Securities and Exchange Commission (the "SEC") on August 22, 2022 (the "Original Filing Date"), to amend and restate Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations", with respect to certain non-GAAP financial disclosures, and Part I, Item 4, "Controls and Procedures," with respect to the conclusion of management regarding the effectiveness of the Company's disclosure controls and procedures as of December 31, 2021. Specifically, this Amendment removes non-GAAP financial disclosures of gross revenue which were determined to be individually tailored financial measurements, and amends management's determination regarding its disclosure controls and procedures with the presence of material weaknesses in its internal controls over financial reporting, respectively.

In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Company is also including in this Amendment an amended and restated Part IV, Item 15 to include currently dated certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ("SOX") from the Company's principal executive officer and principal financial officer. Because no financial statements have been included in this Amendment, paragraph 3 of the certifications has been omitted. Similarly, the Company is not including certifications under Section 906 of SOX, as no financial statements are being filed with this Amendment.

This Amendment speaks as of the Original Filing Date of the Original Filing (unless otherwise noted or as the context otherwise requires) and reflects only the changes to the cover page, Item 7 of Part II, Item 9A of Part II, and the Exhibit Index in Item 15 of Part IV. No other information included in the Original Filing has been modified or updated in any way. The Original Filing continues to speak as of the Original Filing Date, and the Company has not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the Original Filing Date other than as expressly indicated in this Amendment. Accordingly, this Amendment should be read in conjunction with the Original Filing and the Company's other SEC filings.

In this Amendment, T Stamp Inc. (together with its subsidiaries) is referred to as the "Company," "Trust Stamp," "we," "us," or "our."

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the accompanying notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements based upon current plans, expectations, and beliefs, involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements. Our historical results are not necessarily indicative of the results that may be expected for any period in the future.*

**Overview**

T Stamp Inc. was incorporated on April 11, 2016 in the State of Delaware. T Stamp Inc. and its subsidiaries ("Trust Stamp", "we", or the "Company") develops and markets identity authentication software for enterprise and government partners and peer-to-peer markets.

Trust Stamp develops proprietary artificial intelligence-powered identity and trust solutions at the intersection of biometrics, privacy, and cybersecurity, that enable organizations to protect themselves and their users, while empowering individuals to retain ownership of their identity data and prevent fraudulent activity using their identity.

Trust Stamp tackles industry challenges including data protection, regulatory compliance, and financial accessibility, with cutting edge technology including biometric science, cryptography, and machine learning. Our core technology irreversibly transforms identity information to create tokenized identifiers that enable accurate authentication without the need to store or share sensitive data. By retaining the usefulness of biometric-derived data while minimizing the risk, we allow businesses to adopt biometrics and other anti-fraud initiatives while protecting personal information from hacks and leaks.

Trust Stamp's key sub-markets are identity authentication for the purpose of account opening, access and fraud detection, the creation of tokenized digital identities to facilitate financial and societal inclusion, and in-community case management software for alternatives to detention and other governmental uses.

As biometric solutions proliferate, so does the need to protect biometric data. Stored biometric images and templates represent a growing and unquantified financial, security and PR liability and are the subject of governmental, media and public scrutiny, since biometric data cannot be "changed" once they are hacked, as they are directly linked to the user's physical features and/or behaviors. Privacy concerns around biometric technology have led to close attention from regulators, with multiple jurisdictions placing biometrics in a special or sensitive category of personal data and demanding much stronger safeguards around collection and safekeeping.

To address this unprecedented danger and increased cross-industry need to establish trust quickly and securely in virtual environments, Trust Stamp has developed its Irreversibly Transformed Identity Token, or IT<sup>2</sup>, solutions, which replace biometric templates with a cryptographic hash that can never be rebuilt into the original data and cannot be used to identify the subject outside the environment for which it is designed.

Trust Stamp's data transformation and comparison technology is vendor and modality agnostic, allowing organizations including other biometric services providers to benefit from the increased protection, efficiency, and utility of our proprietary tokenization process. With online and offline functionality, Trust Stamp technology is effective in even the most remote locations in the world.

Trust Stamp also offers end-to-end solutions for multi-factor biometric authentication for account access and recovery, KYC/AML compliance, customer onboarding, and more, which allow organizations to approve more genuine users, keep bad actors from accessing systems and services, and retain existing users with a superior user experience. Management has evaluated the market potential for its services in part by reviewing the following reports, articles, and data sources, none of which were commissioned by the Company, and none are to be incorporated by reference:

*Data security and fraud*

&nbsp;&nbsp;&nbsp;&nbsp;· In 2021, 4,145 publicly disclosed breaches exposed over 22 billion records according to the 2021 Year
End Data Breach QuickView Report.

&nbsp;&nbsp;&nbsp;&nbsp;· eCommerce, airline ticketing, money transfer and banking services are estimated to cumulatively lose over
$200 billion to online payment fraud between 2020 and 2024, according to a 2020 Juniper Research report on Online Payment Fraud.

*Biometric authentication*

&nbsp;&nbsp;&nbsp;&nbsp;· Juniper research estimates that biometrics will annually authenticate over $3 trillion in payment transactions
by 2025.

&nbsp;&nbsp;&nbsp;&nbsp;· The global biometric system market is projected to grow from $24.1 billion in 2020 to $82.8 billion by
2027 according to a 2021 Global Industry Analysts, Inc report.

*Financial and societal inclusion*

&nbsp;&nbsp;&nbsp;&nbsp;· As of 2017, 1.7 billion people lacked basic financial services including a bank account, and 4 billion
people were underbanked according to the World Bank Global Findex 2017 report. (NB. estimates for people lacking basic financial services
are now closer to 1.4 billion people).

&nbsp;&nbsp;&nbsp;&nbsp;· More than 200 million small and medium-sized enterprises in emerging markets lack access to finance, limiting
their ability to grow and thrive (UNGSA Financial Inclusion)

&nbsp;&nbsp;&nbsp;&nbsp;· The global market for Microfinance estimated at $156.7 Billion in the year 2020, is projected to reach
$304.3 Billion by 2026 according to the Global Microfinance Market Report 2022.

*Alternatives to detention ("ATD")*

&nbsp;&nbsp;&nbsp;&nbsp;· Addressing the House Appropriations Subcommittee for Homeland Security on May 17, 2022, ICE
Acting Director stated that the financial year 2023 Budget submitted by ICE for approval included an additional $75,000,000 for the ATD
program over and above the present appropriation and that ICE is "focusing on ATD" instead of more expensive physical detention
programs; both because of the threat of COVID and because ATD is less expensive and more humane.

&nbsp;&nbsp;&nbsp;&nbsp;· On that same day, the Ranking Member of the Subcommittee shared that 230,000 participants are currently
in the ATD program with a planned increase to 600,000 participants.

&nbsp;&nbsp;&nbsp;&nbsp;· The bipartisan Appropriations Committee has recommended a funding increase of $42,186,000 above the request
made by ICE, for a total of $569,319,000 for financial year 2023 to fund increases in enrollments into the Alternative to Detention and
Secure Docket programs, and case management services and participation.

**Our Customers and Business –**

Trust Stamp's key sub-markets are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identity authentication for the purpose of account opening, access and fraud detection;

ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The creation of tokenized digital identities to facilitate financial and societal inclusion; and

iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In-community case-management services for governmental agencies

i) In parallel with our engagements with an S&P 500 bank and other financial and FinTech institutions, we continued to expand our work with Fidelity Information Services, LLC ("FIS") with our proprietary tokenization technology being utilized in FIS' new global identity authentication system. To date, two banks have committed to FIS pilots using Trust Stamp technology and it is anticipated that a number of additional banks will be onboarded into pilots by the end of 2022. The pilots utilize the Company's next-generation identity package, offering rapid deployment across devices and platforms, with custom workflows that seamlessly orchestrate trust across the identity lifecycle for a consistent user experience in processes for onboarding and KYC/AML, multi-factor authentication, account recovery, fraud prevention, compliance, and more. The orchestration layer that has been developed facilitates no-code and low-code implementations of the Company's technology making adoption faster and even more cost-effective for a broader range of potential customers.

ii) Under a ten-year technology services agreement ("the TSA") with Mastercard International entered into in March 2019, the Company's IT<sup>2</sup> technology is being implemented by Mastercard for Humanitarian & Development purposes as a core element of its Community Pass and Inclusive Identity offerings. Use cases include not only financial services for individuals and businesses but also empowering people and communities to meet basic needs, such as nutritious food, clean water, housing, education, and healthcare including Ethiopia's implementation of Mastercard's Wellness Pass within Ethiopia's health information system to promote efficiency in healthcare tracking and offline portability of health records.

Under the TSA, the Company is paid to develop and host software solutions utilizing the IT<sup>2</sup> and to support Mastercard's implementations. In addition, the Company is paid on a "per use" basis for all transactions utilizing its technology. To date the Company has received guaranteed minimum annual payments on account of usage but anticipates significant use-based revenue starting in 2023 and growing year-on-year thereafter.

iii) On September 23, 2021, the Company was awarded a contract with the US Department of Homeland Security, Immigration and Customs Enforcement Division ("ICE"). Effective March 27, 2022, Trust Stamp agreed to a bilateral modification (the "ICE Contract") of that September 2021 contract. The modification (which has been amended to implement an up 90-day cessation of performance, as described further below) covers software development and services related to rapid enrolment in the ICE Alternative to Detention Program increases the total contract award value to $7,176,364 from the original $3,920,764 and extends the delivery period until September 26, 2022. The Company anticipates significant ongoing growth opportunities for its software products in the Alternative to Detention Program and in the provision of other in-community case management services for federal and state agencies. Refer to the *Liquidity and Capital Resources* subsection below for an expanded discussion of the 90-day and 60-day cessation as well as termination of the ICE Contract.

In addition to its key sub-markets, the Company is developing products and working with partners and industry organizations in other sectors that offer significant market opportunities, in particular, the travel, healthcare, Metaverse platform and cryptographic key and account credential safekeeping sectors.

**Key Business Measures**

In addition to the measures presented in our consolidated financial statements, we use the following key non-GAAP business measure to help us evaluate our business, identify trends affecting our business, formulate business plans and financial projections, and make strategic decisions.

***Adjusted EBITDA***

This discussion includes information about Adjusted EBITDA that is not prepared in accordance with U.S. GAAP. Adjusted EBITDA is not based on any standardized methodology prescribed by U.S. GAAP and is not necessarily comparable to similar measures presented by other companies. A reconciliation of this non-GAAP measure is included below.

Adjusted EBITDA is a non-GAAP financial measure that represents U.S. GAAP net income (loss) adjusted to exclude (1) interest expense, (2) interest income, (3) provision for income taxes, (4) depreciation and amortization, (5) changes in assets and liabilities, and (6) certain other items management believes affect the comparability of operating results.

Management believes that Adjusted EBITDA, when viewed with our results under U.S. GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our Company and our management, and it will be a focus as we invest in and grow the business.

Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are:

&nbsp;&nbsp;&nbsp;&nbsp;o Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures
or contractual commitments.

&nbsp;&nbsp;&nbsp;&nbsp;o Adjusted EBITDA does not reflect changes in, or cash requirements for our working capital needs.

&nbsp;&nbsp;&nbsp;&nbsp;o Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized
will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements.

&nbsp;&nbsp;&nbsp;&nbsp;o Adjusted EBITDA does not include the impact of certain charges or gains resulting from matters we consider
not to be indicative of our ongoing operations.

Due to these limitations, adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted EBITDA only as a supplement to our U.S. GAAP results.

***Reconciliation of Net Loss to Adjusted EBITDA***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net loss before taxes | $(2922286) | $(1966889) | $(4614348) | $(3998782) |
| Add: Other expense | 272 |  | 94785 | 36185 |
| Less: Other income | (5673) | (35365) | (12614) | (10806) |
| Add: Interest expense (income) | 2354 | 7829 | 6312 | 40049 |
| Add: Stock-based compensation | 459646 | 657928 | 747432 | 830039 |
| Add: Impairment loss of digital assets | 23885 |  | 23885 |  |
| Add: Non-cash expenses for in-kind services | 27930 | 28004 | 55860 | 55934 |
| Add: Depreciation and amortization | 190703 | 152171 | 344631 | 273623 |
| Adjusted EBITDA loss (non-GAAP) | $(2223169) | $(1156322) | $(3354057) | $(2773758) |

---

Adjusted EBITDA loss (non-GAAP) for the three months ended June 30, 2022, increased by 92.26%, to $2.22 million from $1.16 million for the three months ended June 30, 2021. The overall increase in adjusted EBITDA loss (non-GAAP) was driven primarily by an increase in selling, general and administrative expenses of $580 thousand and research and development expenses of $258 thousand during the three months ended June 30, 2022. See "Results of Operations" below for further discussion on the drivers behind the increase in gross margin and selling, general and administrative expenses during the three months ended June 30, 2022.

Adjusted EBITDA loss (non-GAAP) for the six months ended June 30, 2022, increased by 20.92%, to $3.35 million from $2.77 million for the six months ended June 30, 2021. The overall increase in adjusted EBITDA loss (non-GAAP) was driven by a $1.82 million increase in selling, general and administrative expenses, research and development expenses of $539 thousand, and cost of services of $438 thousand during the six months ended June 30, 2022, offset by an increase in net revenues of $2.28 million during the six months ended June 30, 2022. See "Results of Operations" below for further discussion on the drivers behind the increase in gross margin and selling, general and administrative expenses during the six months ended June 30, 2022.

**Comparison of the Three and Six Months Ended June 30, 2022 and 2021**

The following table summarizes our condensed consolidated statements of operations for the three and six months ended June 31, 2022 and 2021:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** | **For the six months ended** | **For the six months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net revenue | $708288 | $719409 | $3529333 | $1251692 |
| Operating Expenses: |  |  |  |  |
| Cost of services (exclusive of depreciation and amortization shown separately below) | 348166 | 346594 | 1042144 | 604013 |
| Research and development | 574490 | 316579 | 1022903 | 483819 |
| Selling, general, and administrative | 2532849 | 1953047 | 5698695 | 3874884 |
| Depreciation and amortization | 190703 | 152171 | 344631 | 273623 |
| Total Operating Expenses | 3646208 | 2768391 | 8108373 | 5236339 |
| Operating Loss | (2937920) | (2048982) | (4579040) | (3984647) |
| Non-Operating Income (Expense): |  |  |  |  |
| Interest income (expense) | (2354) | (7829) | (6312) | (40049) |
| Change in fair value of warrant liability | 36472 |  | 77060 |  |
| Grant income |  | 54557 |  | 51293 |
| Impairment of digital assets | (23885) |  | (23885) |  |
| Other income | 5673 | 35365 | 12614 | 10806 |
| Other expense | (272) |  | (94785) | (36185) |
| Total Other Income (Expense), Net | 15634 | 82093 | (35308) | (14135) |
| Net Loss before Taxes | (2922286) | (1966889) | (4614348) | (3998782) |
| Income tax expense |  |  |  |  |
| Net loss including noncontrolling interest | (2922286) | (1966889) | (4614348) | (3998782) |
| Net loss attributable to noncontrolling interest |  | (864) |  | (864) |
| Net loss attributable to T Stamp Inc. | $(2922286) | $(1966025) | $(4614348) | $(3997918) |
| Basic and diluted net loss per share attributable to T Stamp Inc. | $(0.13) | $(0.10) | $(0.20) | $(0.22) |
| Weighted-average shares used to compute basic and diluted net loss per share | 23266587 | 18828225 | 23008941 | 18435847 |

---

**Comparison of the Three Months Ended June 30, 2022 and 2021**

***Net revenue***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Net revenue | $708288 | $719409 | $(11121) | (1.55)% |

---

Net revenue decreased by $11 thousand, or 1.55% during the three months ended June 30, 2022, and consisted of $201 thousand from ICE, $152 thousand from Mastercard, $264 thousand from a S&P500 bank, and the remaining $91 thousand from various other customers.

Revenue from new statements of work ("SOW") totaled $396 thousand which derived from revenue agreements with a total value of $3.67 million. The most notable new revenue agreement was from the contract modification that the Company executed with ICE, effective March 27th, 2022, to increase the total contract award value to $7,176,364 from the original $3,920,764 and extending the delivery period until September 26, 2022. Refer to the *Liquidity and Capital Resources* subsection below for an expanded discussion of the 90-day and 60-day cessation as well as termination of the ICE Contract.

***Cost of services***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Cost of services | $348166 | $346594 | $1572 | 0.45% |

---

Cost of services ("COS") increased by $2 thousand or 0.45% for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. The increase between the periods were driven primarily by the $111 thousand in labor costs related to servicing requirements from the ICE Contract, which was not incurred during the three months ended June 30, 2021. Furthermore, we incurred $51 thousand more in web hosting charges during the three months ended June 30, 2022, both internally and with our customers, which was driven by additional customer implementations and usage. Web hosting costs totaled $178 thousand during the three months ended June 30, 2022, of which $91 thousand was invoiced to our customers, compared to the three months ended June 30, 2021, which had $108 thousand in web hosting charges and $72 thousand invoiced to customers. In addition, there was a $13 thousand increase in internal COS for the three months ended June 30, 2022.

The COS increases for the three months ended June 30, 2022 were offset by a $79 thousand decrease in stock-based compensation. In addition, there is a $61 thousand decrease in COS for the three months ended June 30, 2022 due to the completion and billing of the FIS SOW during the three months ended June 30, 2021.

Gross profit during the comparative periods decreased slightly by 3.40% or $12 thousand from $373 thousand for the three months ended June 30, 2021, to $360 thousand for the three months ended June 30, 2022. Gross margins decreased by 0.98% from 51.82% for the three months ended June 30, 2021, to 50.84% for the three months ended June 30, 2022.

***Research and development***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Research and development | $574490 | $316579 | $257911 | 81.47% |

---

Research and development ("R&D") expenses increased by $257 thousand, or 81.47% for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. The increase in R&D expense during the three months ended June 30, 2022 was driven by an increase in R&D activities, as well as growth of our R&D team. Comparing the three months ended June 30, 2021 to the three months ended June 30, 2022, the Company grew its R&D team from 53 to 68 full-time equivalents ("FTE").

***Selling, general, and administrative***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Selling, general, and administrative | $2532849 | $1953047 | $579802 | 29.69% |

---

Selling, general, and administrative expense ("SG&A") increased by $580 thousand, or 29.69% for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. The increase in SG&A expense during the three months ended June 30, 2022 was driven mostly by the $211 thousand variance in payroll tax expenses as a result of the receipt of a $161 thousand during the three months ended June 30, 2021, for R&D tax credit from the State of Georgia and the United States Federal Government. The Company had $49 thousand of payroll tax expense with no R&D tax credit due to timing of the credit during the three months ended June 30, 2022.

During the three months ended June 30, 2022, there was a $193 thousand or 160.00% increase in legal and professional services fees and other listing fees related to the listing of the Company's Class A Common Stock on the Nasdaq Capital Market and related initial SEC filings. Additionally, during the three months ended June 30, 2021, there was a $272 thousand increase in business development activities due to hiring three seasoned commercial team members including a former Vice President of Mastercard as Trust Stamp's Chief Innovation Officer. There was also an increase in SG&A of $81 thousand or increase from commercial-related travelling costs because of the COVID-19-era travel restrictions lifting, freeing up executive and sales staff to travel to, among others, events, industry and investor conferences.

Finally, the remainder of the increase in SG&A expenses from the three months ended June 30, 2021 to the three months ended June 30, 2022 was driven mostly was driven mostly by the increase in SG&A FTE and associated overhead for the three months ended June 30, 2021 compared to the three months ended June 30, 2022.

***Depreciation and amortization***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Depreciation and amortization | $190703 | $152171 | $38532 | 25.32% |

---

Depreciation and amortization ("D&A") increased by $38 thousand, or 25.32% for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. Driving the increase is the variance in software depreciation expense due to the $227 thousand and $138 thousand in capitalized internal-use software from 2016 and 2017, respectively, reaching the completion of its 5 year useful life during the three months ended June 30, 2021 and 2022, respectively. The completion of the capitalized internal-use software amortization was offset by $227 thousand and $396 thousand in software costs added to capitalized internal-use software after June 30, 2021.

Despite a minor increase to capitalized internal-use software amortization expense, we continue to see a trend of increasing software capitalization. The development of new software has resulted in additional capitalized internal-use software amortization, or microservices, that once reaching technical feasibility, the Company begins to capitalize and subsequently amortize the related costs over a period of 5 years. In addition, patent amortization increased during the three months ended June 30, 2022 as a result of new pending patent applications and issued patents with the United States Patent and Trademark Office. During the six months ended June 30, 2022, the Company added eleven new pending patents and eight issued patents.

***Operating loss***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Operating loss | $(2937920) | $(2048982) | $(888938) | (43.38)% |

---

Operating Loss increased by $889 thousand, or 43.38% for the three months ended June 30, 2022 compared to the three months ended June 30, 2021. The increase was primarily due to an increase in SG&A and R&D expenses.

***Interest income (expense)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Interest income (expense) | $(2354) | $(7829) | $5475 | 69.93% |

---

Interest income (expense) decreased by $5 thousand, or 69.93% for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. During the three months June 30, 2022 and 2021 there was a total of $4 thousand and $8 thousand interest expense, respectively. The decrease in interest expense is due to the SCV note settlement in April 2021. During the three months June 30, 2022 and 2021 interest income totaled $2 thousand and $0, respectively. The interest earned during the three months ended June 30, 2022 is a result of interest earned on cash accounts.

***Change in fair value of warrant liability***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Change in fair value of warrant liability | $36472 | $— | $36472 |  |

---

The Company recognized a change in fair value of warrant liability during the three months ended June 30, 2022, of $36 thousand based on the fair value assessment and adjustment for one warrant liability as described in Note 4 to the financial statements provided under Item 1 of this report.

***Grant income***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Grant income | $— | $54557 | $54557 |  |

---

Grant income during the three months ended June 30, 2021 relates to $55 thousand received under the Business Development and Continuity Scheme secured by the Company's subsidiary, Trust Stamp Malta. This agreement with the Republic of Malta is described in more detail in Note 12 to the financial statements, provided under Item 1 of this report. During the three-month ended June 30, 2022 there was no grant income recorded.

***Impairment of digital assets***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Impairment of digital assets | $(23885) | $— | $(23885) |  |

---

The Company recognized an impairment on digital assets during the three months ended June 30, 2022 of $24 thousand. Digital assets are considered indefinite-lived intangible assets under applicable accounting rules. Accordingly, any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition requires recognition of impairment.

***Other income***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Other income | $5673 | $35365 | $(29692) | (83.96)% |

---

Other income decreased by $30 thousand for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. The other income decrease was driven by realized exchange differences related to foreign currency transactions. The three months ended June 30, 2021 includes exchange gains of $26 thousand for external invoices billed in foreign currency. During the three months ended June 30, 2022 the Company recognized an exchange loss that is included in other expense.

***Other expense***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** | **Three months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Other expense | $(272) | $— | $(272)% |  |

---

Other expense increased by $272 for the three months ended June 30, 2022 compared to the three months ended June 30, 2021. In the second quarter of 2022, the Company determined that there is currently no intention to settle intercompany accounts in the foreseeable future; therefore, future fluctuations in foreign currencies between the Company and its subsidiaries will be booked to Accumulated other comprehensive income on the balance sheet

**Comparison of the Six Months Ended June 30, 2022 and 2021**

***Net revenue***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Net revenue | $3529333 | $1251692 | $2277641 | 181.96% |

---

During the six months ended June 30, 2022, net revenue increased by $2.28 million, or 181.96% compared to the six months ended June 30, 2021. This increase was primarily due to the $3,920,764 ICE Contract for an alternative to detention program, which was subsequently modified to $7,176,364, effective March 27th, 2022. During the six months ended June 30, 2022, the Company booked $2.44 million related to the ICE Contract. Refer to the *Liquidity and Capital Resources* subsection below for an expanded discussion of the 90-day and 60-day cessation as well as termination of the ICE Contract. Additionally, the Company booked $1.09 million in non-ICE revenue, $550 thousand from a S&P500 bank, a statement of work ("SOW") from Mastercard for $329 thousand, $114 thousand from FIS, and the remaining $98 thousand from various other new SOWs. There were no ICE revenues recorded during the six months ended June 30, 2021.

***Cost of services***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Cost of services | $1042144 | $604013 | $438131 | 72.54% |

---

Cost of services provided increased by $438 thousand, or 72.54% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. The increase during the six months ended June 30, 2022 was primarily driven by the ICE Contract which the Company executed in the third quarter of 2021, which was subsequently modified effective March 27th, 2022. During the six months ended June 30, 2022, the Company booked $340 thousand in labor and third-party carrier costs related to servicing the requirements of the ICE Contract, which was offset by a decrease of $77 thousand in stock-based compensation and $108 thousand in costs to service the FIS contract that did not recur in the six months ended June 30, 2022.

Additionally, gross profit during the comparative periods increased significantly by 284.02% or $1.84 million from $647 thousand for the six months ended June 30, 2021, to $2.49 million for the six months ended June 30, 2022. Gross margins improved by 18.73% from 51.74% for the six months ended June 30, 2021, to 70.47% for the six months ended June 30, 2022.

***Research and development***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Research and development | $1022903 | $483819 | $539084 | 111.42% |

---

Research and development ("R&D") increased by $539 thousand, or 111.42% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. The increase in R&D expenses during the six months ended June 30, 2022, was driven by a larger portion of the developer activities focused on customer implementations and/or developing new technology services as a result of newly approved intellectual property patents.

***Selling, general, and administrative***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Selling, general, and administrative | $5698695 | $3874884 | $1823811 | 47.07% |

---

Selling, general, and administrative expense ("SG&A") increased by $1.82 million, or 47.07% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. The increase during the six months ended June 30, 2022 was driven mostly by the $645 thousand increase in legal and professional services fees and other fees related to the listing of the Company's Class A Common stock on the Nasdaq Capital Market. Additionally, the Company incurred $426 thousand in sales commissions in the six months ended June 30, 2022 compared to $47 thousand during the three months ended June 30, 2021; an increase of $380 thousand or 813.26%. The increase in commissions paid during the six months ended June 30, 2022 is directly related to the substantial increase in cash received on revenue contracts during the six months ended June 30, 2022 compared to the six months ended June 30, 2021, and include commissions paid on the customer comments with ICE, FIS, and other customer. Other notable variances during the six months ended June 30, 2022 include an increase of $240 thousand for management consulting and training with the Disney Institute and a $157 thousand increase for four additional business development team members including a former VP at Mastercard, who has taken the role of Chief Innovation Officer.

***Depreciation and amortization***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Depreciation and amortization | $344631 | $273623 | $71008 | 25.95% |

---

Depreciation and amortization ("D&A") increased by $71 thousand, or 25.95% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. Driving the increase in software depreciation expense was due to the $227 thousand and $23 thousand in capitalized internal- use software from 2016 and 2017, respectively, reaching the completion of its 5-year useful life during the three months ended June 30, 2021 and 2022, respectively. The completion of those capitalized internal-use software amortization was offset by $227 thousand and $396 thousand in capitalized internal-use software costs after June 30, 2021.

***Operating loss***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Operating loss | $(4579040) | $(3984647) | $(594393) | 14.92% |

---

Operating Loss increased by $594 thousand, or 14.92% for the six months ended June 30, 2022 compared to the six months ended June 30, 2021. The increase was primarily due to an increase in SG&A expenses and R&D expenses.

***Interest income (expense)***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Interest income (expense) | $(6312) | $(40049) | $33737 | 84.24% |

---

Interest income (expense) increased by $34 thousand, or 84.24% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. Other income was primarily made up of ancillary fees from investments in the 2021 public raise received during the six months ended June 30, 2022. The remaining net interest expense relates to various immaterial interest-bearing and interest-earning accounts.

***Change in fair value of warrant liability***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Change in fair value of warrant liability | $77060 | $— | $77060 |  |

---

The Company recognized a change in fair value of warrant liability during the six months ended June 30, 2022, of $77 thousand based on the fair value assessment and adjustment for one warrant liability as described in Note 4 to the financial statements provided under Item 1 of this report.

***Grant income***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Grant income | $— | $51293 | $51293 |  |

---

Grant income during the six months ended June 30, 2021, relates to $51 thousand received in grant income that the Company's subsidiary, Trust Stamp Malta, entered with the Republic of Malta that would provide for a grant of up to €200 thousand as reimbursement for operating expenses over the first 12 months following incorporation in the Republic of Malta with the Republic of Malta described in Note 12 to the financial statements provided under Item 1 of this report. During the six-month ended June 30, 2022, there was no grant income recorded.

***Impairment of digital assets***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Impairment of digital assets | $(23885) | $— | $(23885) |  |

---

The Company recognized an impairment on digital assets during the six months ended June 30, 2022, of $24 thousand. Digital assets are considered indefinite-lived intangible assets under applicable accounting rules. Accordingly, any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition requires recognition of impairment.

***Other income***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Other income | $12614 | $10806 | $1808 | 16.73% |

---

Other income increased by $2 thousand for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. The increase was primarily due to ancillary fees from investments in the 2021 public raise received during the six months ended June 30, 2022.

***Other expense***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2022** | **2021** | **$ Change** | **% Change** |
| Other expense | $(94785) | $(36185) | $(58600) | (161.94)% |

---

Other expense increased by $59 thousand or 161.94% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. The increase was primarily due to an unrealized loss on foreign currency translations for intercompany transactions between the parent company, T Stamp Inc., and its subsidiary, Trust Stamp Malta Limited with currencies denominated in United States dollars and Euros, respectively.

During the six months ended June 30, 2021, there was an unrealized loss on foreign currency translations that is recorded to other income for foreign currencies held by the Company's subsidiaries to meet expenses denominated in those currencies, the U.S. dollar cost of which expenses has fallen commensurately, therefore the unrealized loss will have no cash impact until the accounts are settled.

In the second quarter of 2022, the Company determined that there is currently no intention to settle intercompany accounts in the foreseeable future; therefore, future fluctuations in foreign currencies between the Company and its subsidiaries will be booked to Accumulated other comprehensive income on the balance sheet.

**Liquidity and Capital Resources**

As of June 30, 2022 and December 31, 2021, we had approximately $2.83 million and $3.48 million cash in our banking accounts, respectively. The decrease in cash from December 31, 2021 to June 30, 2022 was a result of the net negative cash inflow from the combination of financing and operating activities which were $4.38 million during the six months ended June 30, 2022 compared to $4.47 million during the six months ended June 30, 2021. During the six months ended June 30, 2022, Contributor to the cash outflows increase include $329 thousand for AT&T carrier fees and $360 thousand in sales commissions related to the ICE Contract, $200 thousand NASDAQ listing fee, $468 thousand in a cash bonus to meet the Company's commitment to pay taxes on behalf of employees for their 2019 stock bonuses, and $240 thousand to the Disney Institute for management consulting.

Total current assets for the comparative periods decreased by 25.36% or $1.46 million from $5.76 million as of December 31, 2021, to $4.30 million during the six months ended June 30, 2022. The current assets decrease was primarily driven by the decrease in cash (discussed above), accounts receivable, and prepaid expenses and other current assets. Accounts receivable decreased by $540 thousand from $1.28 million as of December 31, 2021 to $739 thousand as of June 30, 2022 primarily due to the cessation of the ICE Contract billings. Additionally, there was a decrease in current liabilities of 43.15% or $1.36 million at June 30, 2022, compared to $2.40 million as of December 31, 2021. In effect, the Company's current ratio, that is, the ratio of the Company's total current assets as a multiple of total current liabilities or the Company's ability to service its current liabilities with its current cash assets, grew from 2.40 as of December 31, 2021, to 3.15 as of June 30, 2022. This is a result of a decrease of cash and increase of current cash inflow from operating and financing activities and a reduction of current liabilities.

The conversion of deferred revenue and customer deposit liabilities into revenue, coupled with the payment of the above-mentioned cash bonus for the 2019 stock bonuses were the primary drivers for the decrease in current liabilities as of June 30, 2022, compared to December 31, 2021. Various SOWs that existed as deferred revenue as of December 31, 2021, included $104 thousand received in cash in relation to the Mastercard License fee, $108 thousand for FIS, and $105 thousand for IJM. Customer deposit liabilities as of December 31, 2021, included deferred revenue related to the ICE Contract. Since there is a provision in government contracts which provides for termination on convenience, the Company reclassed this amount to customer deposit liabilities. During the six months ended June 30, 2022, the Company converted this entire balance to recognized revenue.

Effective September 3, 2019, the Company entered into a software license agreement with a customer pursuant to which the Company received total fees of $150 thousand in 2020, $200 thousand in 2021, and will receive minimum total fees of $250 thousand in 2022, rising by 15% in each subsequent year beginning in 2023 with a cap of $1.00 million. The Company has recognized $125 thousand of the software license agreement fees during the six months ended June 30, 2022.

On March 12, 2021, the Company launched a Regulation D raise limited to accredited investors for a maximum of $5.00 million or 1,633,986 shares. The raise was marketed only to the Company's existing investor email list with an initial minimum investment of $25 thousand and a share price of $3.06 per share. The initial tranche of the round closed on April 5, 2021, with $3.9 million of reserved investment with the contracted sale of 1,279,825 shares of Class A Common Stock. After the initial tranche, on April 6, 2021, the Company then offered up to $700 thousand or 182,291 of additional shares, again only to accredited investors, with a $5 thousand minimum investment and at a share price of $3.84 per share. The second tranche of the round closed on June 4, 2021 with $82 thousand of reserved investment at $3.84 per share with the contracted sale of 21,400 shares of Class A Common Stock.

On August 25, 2021, the Company launched concurrent offerings under Regulation Crowdfunding ("Regulation CF"), Regulation D and Regulation S. The Company initially sought to raise up to $5.00 million in the aggregate between the three offerings through the sale of units but had the discretion to accept up to $5.00 million in each offering. Each unit consists of 1 share of the Company's Class A Common Stock, par value $0.01 per share, and 1 warrant to purchase 1 share of Class A Common Stock of the Company in a future registered or exempt offering of the Company (i.e. a Regulation CF, Regulation D, or Regulation S Warrant, as applicable). The minimum target amount under the Regulation CF offering was $100 thousand, which the Company achieved.

On November 19, 2021, we closed the Regulation CF offering, having received binding commitments for 1,250,000 units at $4.00 per unit for a total of $5,000,000 in gross proceeds. We continued to hold closings on investments from investors who subscribed prior to November 19, 2021. We raised a final total of $4,551,900 in gross proceeds from the issuance of 1,137,975 Regulation CF units to investors in this offering.

On December 21, 2021, REach® executed a Notice of Exercise for its warrants to purchase 400,641 shares of Class A Common Stock at an exercise price of $0.1664 per share for a total purchase price of $67 thousand.

On December 21, 2021, a SCV executed a Notice of Exercise for certain of its warrants to purchase 2,037,560 shares of Class A Common Stock at an exercise price of $1.6000 per share for a total purchase price of $3.3 million.

On January 7, 2022, we closed on an initial tranche of investments from the Regulation D offering. We raised a final total of $863,956 in gross proceeds from the issuance of 215,989 Regulation D units to investors in this offering. We conducted an additional close on February 2, 2022, receiving gross proceeds of $100,000 and issuing 25,000 Regulation D units to that investor.

On January 7, 2022, we closed the Regulation S offering. We raised a final total of $224,416 in gross proceeds from the issuance of 56,104 Regulation S units to investors in this offering.

On January 26, 2022, we initially qualified an offering with the Securities and Exchange Commission under Regulation A to allow for the exercise of warrants issued pursuant to the Regulation CF, Regulation D, and Regulation S unit offerings. As of June 30, 2022, warrants for 14,250 shares have been exercised for $57 thousand by investors.

On September 23, 2021, the Company was awarded a $3,920,764 contract with ICE (the "ICE Contract").

Executed on April 5, 2022, and made effective March 27, 2022, Trust Stamp agreed to a modification of the ICE Contract, increasing the total contract award value to $7,176,364 from the original $3,920,764 and extending the delivery period until September 26, 2022 (subject to a right of early termination by ICE). However, due to a recent change in legislation (enacted through H.R. 2471: Consolidated Appropriations Act, 2022) which requires a Congressional notification in order for ICE to award a contract or subcontract to a particular entity for any pilot or demonstration program that uses more than 5 full-time equivalents or costs in excess of $1,000,000, effective April 15, 2022, the Company entered into an Amendment with ICE to amend the terms of the ICE Contract, implementing an up to 90-day cessation of performance of the Company's and ICE's obligations under the ICE Contract. This change in legislation was retroactively applied to the March 27, 2022, modification to the ICE Contract. The up to 90-day cessation of the ICE Contract provided by the Amendment was intended to allow ICE ample time to complete a Congressional notification for the modification of the ICE Contract, so that the Company could continue to provide services to ICE under the ICE Contract. However, as of July 15, 2022 (the end of the 90-day cessation period), ICE had not yet been able to complete such a Congressional notification.

On July 15, 2022, the Company entered into a second amendment agreement with ICE to amend the terms of the ICE Contract (as modified on March 27, 2022. The second amendment had the effect of implementing an additional up to 60-day cessation of performance of the Company's and ICE's obligations under the ICE Contract previously agreed to be performed between March 27, 2022, and September 26, 2022. Furthermore, this second amendment was intended to provide ICE additional time to complete such a Congressional notification, so that the Company could continue to provide services to ICE under the ICE Contract. During the cessation period, Trust Stamp continued to incur maintenance costs specific to the April 5, 2022 modification contract, without recognizing or receiving the revenue, in order that we could be positioned to restart immediately if and when the cessation was lifted.

On August 17, 2022, Trust Stamp received notification from ICE for termination of the ICE Contract, for convenience, effective immediately. ICE has indicated that it will pay to Trust Stamp compensation for cancellation on a basis to be agreed upon. The Company expects that human resources costs – i.e., compensation for new and existing officers, directors, and employees – will be the largest material cash obligation for the Company within the next twelve months, with projected human resources costs totaling approximately $639 thousand per month, a reduction from $750 thousand per month as reported as at March 31, 2022. The Company believes, as described above, that revenues from its existing operations will be sufficient to cover these costs, and that any funds from new client contracts or offerings would provide additional operational capacity for the Company going forward.

**Going Concern**

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is a business that has not yet generated profits, with a loss in the six months ended June 30, 2022 of $4.61 million, operating cash outflows of $3.86 million for the same period, and an accumulated deficit of $31.82 million as of June 30, 2022.

The Company's ability to continue as a going concern in the next twelve months following the date the consolidated financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results. Refer to Note 14 for an expanded discussion of the 90-day cessation, subsequent 60-day cessation, and eventual termination of the ICE renewal. Management has evaluated these conditions and plans to generate revenue and raise capital as needed to satisfy its capital needs. While the negotiation of significant additional revenue is well advanced, it has not reached a stage that allows it to be factored into a going concern evaluation. In addition, although the Company has previously been successful in raising capital as needed and has already made plans to do so as well as restructuring expenses to meet the Company's cash needs, no assurance can be given that the Company will be successful in its capital raising efforts. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period.

**Equity, Notes, and Warrants**

*Regulation D, Regulation S and Regulation CF Offerings.* See more information on Regulation D, Regulation S, and Regulation CF fundraising efforts, as well as exercise of warrants by existing warrant holders of the Company, in the *Liquidity and Capital Resources* subsection above.

**Operating Activities**

Net cash used in operating activities decreased by 3.08% from $3.98 million for the six months ended June 30, 2021 to $3.86 million for the six months ended June 30, 2022. Of the $4.61 million net loss for the six months ended June 30, 2022, there was a non-cash expense of $747 thousand related to an accounting estimate used to calculate stock-based compensation, decrease in warrant liability of $77 thousand, repayment of shareholder loan through in-kind services of $56 thousand, digital asset impairment of $24 thousand, and $345 thousand for depreciation and amortization that was added back to net loss. Additionally, $339 thousand from the timing of accrual was subtracted from net loss to arrive at a $3.86 million cash outflow from operating activities.

**Investing Activities**

Net cash used in investing activities for the six months ended June 30, 2022 was $524 thousand, compared to net cash of $484 thousand used in the six months ended June 30, 2021. Cash used in investing activities for the six months ended June 30, 2022 and 2021 were related primarily to continued investments to develop future technologies that we intend to capitalize and monetize over time. During the six months ended June 30, 2022, capitalized internal-use software increased by 26.96% compared the six months ended June 30, 2021. This is also a result of the Company's investments in R&D, which, during the six months ended June 30, 2022, produced eleven new pending patent applications and eight issued patents with the United States Patent and Trademark Office. During the six months ended June 30, 2021, we completed an acquisition of Pixelpin Ltd (completed on March 18, 2021), in exchange for $91 thousand in cash. Pixelpin Ltd is an image-based "Pin-on-Glass" account access solution that alleviates pain-points of traditional login methods while ensuring the security of authentication. This acquisition further enhances Trust Stamp's innovative portfolio of technology solutions that enable improved customer experiences and reputation while broadening the scope of internal risk-management strategies and providing additional options for multi-factor authentication.

**Financing Activities**

For the six months ended June 30, 2022, net cash provided by financing activities was $3.69 million, compared to net cash of $4.18 million for the six months ended June 30, 2021. During the six months ended June 30, 2022, cash received included the $3.38 million from a warrant exercise received in December 2021 from SCV and REach® Ventures, $72 thousand from the exercise of options, $259 thousand in units sold and warrants exercised in connection to the Company's 2021 raises under Regulation CF, Regulation D, and Regulation S in preparation for our Nasdaq listing, and an offset of $30 thousand for principal payments made for the financial liability. During the six months ended June 30, 2021, cash received primarily related to our private fundraise under SEC Regulations D and Regulation S, from which the Company closed $3.97 million in net proceeds. Additionally, the Company received $548 thousand in proceeds from a soft loan, a potentially repayable loan, from the government of Malta.

**Contractual Obligations and Commitments**

The following table summarizes our non-cancellable contractual obligations as of June 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
|  |<br>**Total** | **Less Than**<br>**1 Year** |<br>**1-3 Years** |<br>**3-5 Years** |
| Operating lease obligations | $729681 | $249415 | $477668 | $2598 |
| Purchase obligations | 267142 | 59460 | 207682 |  |
| Total contractual obligations | $996823 | $308875 | $685350 | $2598 |

---

The contractual commitment amounts in the table above are associated with agreements that are enforceable and legally binding. Obligations under contracts that we can cancel without a significant penalty are not included in the table above.

**Critical Accounting Policies and Estimates**

Our financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates.

The critical accounting policies and estimates, assumptions, and judgments that we believe have the most significant impact on our consolidated financial statements are described below.

***Capitalized Internal-Use Software, Net***

Costs related to software acquired, developed, or modified solely to meet our internal requirements, with no substantive plans to market such software at the time of development are capitalized. The Company capitalizes eligible costs to develop internal-use software that are incurred subsequent to the preliminary project stage through the development stage. These costs consist of personnel costs (including related benefits and stock-based compensation) that are incurred during the application development stage. Costs incurred during the preliminary project stage and during the post-implementation operational stage are expensed as incurred. Maintenance costs are expensed as incurred. The estimated useful life of costs capitalized is evaluated for each specific project. Actual economic lives may differ from estimated useful lives. Periodic reviews could result in a change in estimated useful lives and therefore changes in amortization expense in future periods.

***Revenue Recognition***

The Company derives its revenue primarily from professional services. Revenue is recognized upon transfer of control of promised products and services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. If the consideration promised in a contract includes a variable amount, the Company includes an estimate of the amount it expects to receive or the total transaction price if it is probable that a significant reversal of cumulative revenue recognized will not occur.

The Company determines the amount of revenue to be recognized through the application of the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;· Identification of the contract, or contracts with a customer;

&nbsp;&nbsp;&nbsp;&nbsp;· Identification of the performance obligations in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;· Determination of the transaction price;

&nbsp;&nbsp;&nbsp;&nbsp;· Allocation of the transaction price to the performance obligations in the contract; and

&nbsp;&nbsp;&nbsp;&nbsp;· Recognition of revenue when or as the Company satisfies the performance obligations.

At contract inception, the Company will assess the services agreed upon within each contract and assess whether each service is distinct and determine those that are performance obligations. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. In general, each contract with a customer consists of a single performance obligation to perform services in which revenue is recognized when the service has been delivered.

During the year ended December 31, 2021, the Company entered into a significant contract with ICE that contained multiple performance obligations, including software application development, mobile hardware, and services to assist ICE. The Company allocates the transaction price for this contract based on the stand-alone selling price of each performance obligation. The Company uses the expected cost-plus margin approach for determining the stand-alone selling prices of the mobile hardware and services to assist ICE, as this is believed to be the most accurate method of allocating the transaction price to these performance obligations, maximizing the use of observable inputs. As the Company does not have a similar software application that has been sold to another customer, the Company uses the residual approach for determining the stand-alone selling price of the software application development by subtracting the sum of the stand-alone selling prices for the mobile hardware and services to assist ICE from the total transaction price.

Executed on April 5, 2022, and made effective March 27, 2022, Trust Stamp agreed to a modification of this contract with ICE, increasing the total contract award value to $7,176,364 from the original $3,920,764 and extending the delivery period until September 26, 2022 (subject to a right of early termination by ICE). However, due to a recent change in legislation (enacted through H.R. 2471: Consolidated Appropriations Act, 2022) which requires a Congressional notification in order for ICE to award a contract or subcontract to a particular entity for any pilot or demonstration program that uses more than 5 full-time equivalents or costs in excess of $1,000,000, effective April 15, 2022, the Company entered into an amendment with ICE to amend the terms of the ICE Contract, implementing an up to 90-day cessation of performance of the Company's and ICE's obligations (the "Amendment"). This change in legislation was retroactively applied to the March 27, 2022, modification to the ICE Contract. The up to 90-day cessation of the ICE Contract provided by the Amendment was intended to allow ICE ample time to obtain a Congressional notification for the modification of the ICE Contract, so that the Company could continue to provide services to ICE under the ICE Contract. During the cessation period, Trust Stamp continued to incur maintenance costs specific to the April 5, 2022 modification contract, without recognizing or receiving the revenue, in order that we could be positioned to restart immediately if and when the cessation is lifted. Refer to the *Liquidity and Capital Resources* subsection below for an expanded discussion of the 90-day and 60-day cessation as well as termination of the ICE Contract.

***Contract Balances***

The timing of customer billing and payment relative to the start of the service period varies from contract to contract; however, the Company bills many of its customers in advance of the provision of services under its contracts, resulting in contract liabilities consisting of either deferred revenue (a "contract liability") or customer deposit liabilities. Deferred revenue represents billings under noncancelable contracts before the related product or service is transferred to the customer. Such amounts are recognized by the Company over the life of the contract upon meeting the revenue recognition criteria, but generally within one year. Customer deposit liabilities consist of billings or payments received in advance of the start of the contractual term or for anticipated revenue generating activities for the portion of a contract term that is subject to cancellation for convenience. Certain of the Company's arrangements generally include terms that allow the customer to terminate the contract for convenience and receive a refund of the amount of the customer deposit for the percentage of the work not performed prior to the notice of termination. In these arrangements, the Company concluded there are no enforceable rights and obligations after such notice period and therefore the consideration received or due from the customer that is subject to termination for convenience is recorded as customer deposit liabilities.

The payment terms and conditions vary by contract; however, the Company's terms generally require payment within 30 to 60 days from the invoice date. In instances where the timing of revenue recognition differs from the timing of payment, the Company elected to apply the practical expedient in accordance with ASC 606 to not adjust contract consideration for the effects of a significant financing component, as the Company expects, at contract inception, that the period between when promised goods and services are transferred to the customer and when the customer pays for those goods and services will be one year or less. As such, the Company determined its contracts do not generally contain a significant financing component.

***Costs to Obtain and Fulfill Contracts***

Incremental costs of obtaining a contract include only those costs that are directly related to the acquisition of contracts, including sales commissions, and that would not have been incurred if the contract had not been obtained. The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it is expected that the economic benefit and amortization period will be longer than one year. Costs to obtain contracts were not material in the periods presented. The Company recognizes an asset for the costs to fulfill a contract with a customer if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. Costs to fulfill contracts were not material in the periods presented. The Company elected to apply the practical expedient in accordance with ASC 340, which allows the Company to expense commissions as incurred when the contract term is twelve months or less in total.

***Warrants***

The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging ("ASC 815"), depending on the specific terms of the warrant agreement.

***Stock- Based Compensation***

The Company accounts for its stock-based compensation arrangements at fair value. Fair value of each option grant is estimated on the date of grant using either the Black-Scholes-Merton Model for stock options granted or using the fair value of a common stock for grants and restricted stock units. The calculated fair value is recognized as an expense over the requisite service period, net of estimated forfeitures, using the straight-line method.

***Income Taxes***

The Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts for financial reporting purposes and the tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. The deferred assets and liabilities are measured using the statutorily enacted tax rates anticipated to be in effect when those tax assets and liabilities are expected to be realized or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

A valuation allowance is established if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income in assessing the need for a valuation allowance.

The Company's tax positions are subject to income tax audits by multiple tax jurisdictions. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not, that the position will be sustainable upon examination by the taxing authority, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the tax authorities have full knowledge of all relevant information concerning the tax position. The tax benefit recognized is measured as the largest amount of benefit which is more likely than not (greater than 50% likely) to be realized upon ultimate settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in income tax expense. The Company makes adjustments to these reserves in accordance with the income tax guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences may affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company's financial condition and operating results.

**Recent Accounting Pronouncements**

For information on recently issued accounting pronouncements, refer to Note 1. *Description of Business and Summary of Significant Accounting Policies* in our condensed consolidated financial statements included elsewhere under Item 1 in this report.

As a Nasdaq listed public reporting company, we are required to publicly report on an ongoing basis as an "emerging growth company" (as defined in the Jumpstart Our Business Startups Act of 2012, which we refer to as the JOBS Act) under the reporting rules set forth under the Exchange Act. For so long as we remain an "emerging growth company", we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not "emerging growth companies", including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act;

&nbsp;&nbsp;&nbsp;&nbsp;· taking advantage of extensions of time to comply with certain new or revised financial accounting standards;

&nbsp;&nbsp;&nbsp;&nbsp;· being permitted to comply with reduced disclosure obligations regarding executive compensation in our
periodic reports and proxy statements; and

&nbsp;&nbsp;&nbsp;&nbsp;· being exempt from the requirement to hold a non-binding advisory vote on executive compensation and shareholder
approval of any golden parachute payments not previously approved.

We expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We may remain an "emerging growth company" for up to five years, beginning January 26, 2022, although if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would cease to be an "emerging growth company" as of the following December 31.

In summary, we are subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not "emerging growth companies" and therefore, our shareholders could receive less information than they might expect to receive from more mature public companies.

**ITEM 4. CONTROLS AND PROCEDURES**

**Disclosure Controls and Procedures**

Management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of its disclosure controls and procedures as of the end of the period covered by this report. The term "disclosure controls and procedures" as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely discussions regarding required disclosures. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving their desired control objectives. Based on the evaluation Company's disclosure controls and procedures as of the end of the period covered by this report, its Chief Executive Officer and Chief Financial Officer concluded that, as of such date, its disclosure controls and procedures were not effective at a reasonable assurance level based on material weaknesses in our internal control over financial reporting described below.

**Changes in Internal Control Over Financial Reporting**

In connection with the audit of our financial statements for the year ended December 31, 2021, our independent auditor identified material weaknesses in our internal control over financial reporting. The material weaknesses related to certain corporate finance and accounting oversight functions reside over the detection of errors that were present within the Company's calculation of stock-based awards as well as the financial reporting close process.

During the six months ended June 30, 2022, covered by this report, in response to these identified material weaknesses, the Company established additional operational processes to prevent the incorrect recording of stock-based awards, as well as to address weaknesses in its financial reporting close process. Building upon the operational processes that the Company established during the three months ended March 31, 2022, during the six months ended June 30, 2022, the Company established additional processes, including but not limited to:

*Financial Reporting:*

● Employed a specialized person solely responsible for assisting with our Company's SEC filings.

● Contracted with third party professional accounting firms with whom we consult regarding complex accounting applications and issues.

● Implemented bank account reconciliations prepared by our accountants and reviewed and approved by our financial controller.

● Addressed material presentation errors in the Company's equity section in the consolidated financial statements

*Calculation of Stock-Based Awards*

● Established multiple layers of reviews of equity awards calculations to ensure that the calculations match the terms in corresponding award agreement and formulas are correct.

● Regular check between our legal and accounting staff to ensure that new award agreement do not go unaccounted for. On a monthly basis, we also review all active agreements to check for expirations, so that they are properly accounted for and recorded.

● Perform regular reconciliations between information in our internal records and our transfer agent's records to ensure that issued shares and warrants are captured accurately.

The Company's management did not have the opportunity to test the effectiveness of the above internal control processes during the preparation and filing of the Original Filing, and there is no guarantee that these actions have fully remediated the material weaknesses described further above. Further, there is no guarantee that the Company will not again fail to establish effective internal controls over financial accounting and reporting at some point in the future. Finally, we note that these efforts have not been evaluated by our independent auditor for effectiveness.

Notwithstanding this material weakness, management has concluded that our financial statements included in the Original Filing present fairly, in all material respects, our financial position, results of operations, and cash flows for the periods presented in accordance with GAAP.

**PART II - OTHER INFORMATION**

**Item 6. Exhibits.**

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

---

| | |
|:---|:---|
| [3.1](http://www.sec.gov/Archives/edgar/data/1718939/000110465919076565/filename4.htm) | [Amended and Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 2.1 to the Company's Form DOS filed with the SEC on December 30, 2019).](http://www.sec.gov/Archives/edgar/data/1718939/000110465919076565/filename4.htm) |
| [3.2](http://www.sec.gov/Archives/edgar/data/1718939/000110465919076565/filename5.htm) | [Bylaws (incorporated by reference to Exhibit 2.2 to the Company's Form DOS filed with the SEC on December 30, 2019).](http://www.sec.gov/Archives/edgar/data/1718939/000110465919076565/filename5.htm) |
| [3.3](http://www.sec.gov/Archives/edgar/data/1718939/000110465920043251/tm2014436d1_ex2-3.htm) | [Certificate of Amendment to Amended and Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 2.3 to the Company's Form 1-A/A filed with the SEC on April 6, 2020).](http://www.sec.gov/Archives/edgar/data/1718939/000110465920043251/tm2014436d1_ex2-3.htm) |
| [3.4](http://www.sec.gov/Archives/edgar/data/1718939/000110465921108039/tm2125607d1_ex2-3.htm) | [Certificate of Amendment to Amended and Restated Certificate of Incorporation, as amended (Incorporated by reference to Exhibit 2.3 of the Company's Form 1-U filed with the SEC on August 20, 2021)](http://www.sec.gov/Archives/edgar/data/1718939/000110465921108039/tm2125607d1_ex2-3.htm) |
| [10.7](http://www.sec.gov/Archives/edgar/data/1718939/000110465920109226/tm2031244d1_ex6-11.htm) | [Emergent Agreement dated June 11, 2020 (incorporated by reference to Exhibit 6.11 to the Company's Form 1-SA for the six months ended June 30, 2020 filed with the SEC on September 28, 2020). (incorporated by reference to Exhibit 6.10 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465920109226/tm2031244d1_ex6-11.htm) |
| [10.9](http://www.sec.gov/Archives/edgar/data/1718939/000110465921057785/tm2114292d1_ex6-13.htm) | [Executive Employment Agreements of Gareth Genner and Andrew Gowasack, effective as of December 8, 2020 (incorporated by reference to Exhibit 6.13 to the Company's Form 1-K for the year ended December 31, 2020 filed with the SEC on April 30, 2021).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921057785/tm2114292d1_ex6-13.htm) |
| [10.11](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-14.htm) | [Malta Enterprise Letter dated July 8, 2020 sent to the Company (Repayable Advance of €800,000) (incorporated by reference to Exhibit 6.14 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-14.htm) |
| [10.12](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-15.htm) | [Purchase Order executed September 23, 2021 issued by U.S. Immigration and Customs Enforcement to the Company (as Contractor) (incorporated by reference to Exhibit 6.15 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-15.htm) |

---

---

| | |
|:---|:---|
| [10.13](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-16.htm) | [Letter of Appointment effective December 1, 2021 sent by the Company to Berta Pappenheim (as non-executive director appointee) (incorporated by reference to Exhibit 6.16 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-16.htm) |
| [10.14](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-17.htm) | [Letter of Appointment effective December 1, 2021 sent by the Company to Kristin Stafford (as non-executive director appointee) (incorporated by reference to Exhibit 6.17 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-17.htm) |
| [10.15](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-18.htm) | [Warrant Agency Agreement between the Company and Colonial Stock Transfer Company, Inc. dated August 20, 2021. (incorporated by reference to Exhibit 6.18 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-18.htm) |
| [10.16](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-19.htm) | [Mutual Channel Agreement dated November 15, 2020 between the Company and Vital4Data, Inc. (incorporated by reference to Exhibit 6.19 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465921142104/tm2133367d1_ex6-19.htm) |
| [10.18](http://www.sec.gov/Archives/edgar/data/1718939/000110465920054283/tm2014436d6_ex6-9.htm) | [Warrant to Purchase Common Stock between the Company and Second Century Ventures, LLC dated April 22, 2020 (incorporated by reference to Exhibit 6.9 to the Company's Form 1-A/A filed with the SEC on April 30, 2020).](http://www.sec.gov/Archives/edgar/data/1718939/000110465920054283/tm2014436d6_ex6-9.htm) |
| [10.19](http://www.sec.gov/Archives/edgar/data/1718939/000110465920032293/tm1926748d2_ex6-1.htm) | [Settlement Agreement dated July 1, 2019 between Emergent Technology Holdings, LP and the Company (Included as Exhibit 6.1 to the Company's Form 1-A filed with the SEC on March 12, 2020). (incorporated by reference to Exhibit 6.1 to the Company's Form 1-A/A filed with the SEC on January 12, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465920032293/tm1926748d2_ex6-1.htm) |
| [10.20](http://www.sec.gov/Archives/edgar/data/1718939/000110465922048443/tm2213214d1_ex10-1.htm) | [Amendment dated April 15, 2022 to Purchase Order executed September 23, 2021 issued by U.S. Immigration and Customs Enforcement to the Company (as Contractor) (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on April 21, 2022).](http://www.sec.gov/Archives/edgar/data/1718939/000110465922048443/tm2213214d1_ex10-1.htm) |
| [10.21](http://www.sec.gov/Archives/edgar/data/1718939/000110465922081600/tm2221397d1_ex10-1.htm) | [Amendment dated July 15, 2022 to Purchase Order executed September 23, 2021 issued by U.S. Immigration and Customs Enforcement to the Company (as Contractor) (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed within)](http://www.sec.gov/Archives/edgar/data/1718939/000110465922081600/tm2221397d1_ex10-1.htm) |
| [31.1\*](tm233764d2_ex31-1.htm) | [Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](tm233764d2_ex31-1.htm) |
| [31.2\*](tm233764d2_ex31-2.htm) | [Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](tm233764d2_ex31-2.htm) |
| [32.1\*\*](https://www.sec.gov/Archives/edgar/data/1718939/000141057822002705/idai-20220630xex32d1.htm) | [Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](https://www.sec.gov/Archives/edgar/data/1718939/000141057822002705/idai-20220630xex32d1.htm) |
| 101.INS\*\* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH\*\* | Inline XBRL Taxonomy Extension Schema |
| 101.PRE\*\* | Inline XBRL Taxonomy Extension Presentation Linkbase |
| 101.CAL\*\* | Inline XBRL Taxonomy Extension Calculation Linkbase |
| 101.LAB\*\* | Inline XBRL Taxonomy Extension Label Linkbase |
| 101.DEF\*\* | Inline XBRL Taxonomy Extension Definition Linkbase |
| 104 | Cover Page Interactive Data File—the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |

---

\* Filed herewith.

\*\* Previously Filed

**SIGNATURES**

Pursuant to the requirements of the securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| |
|:---|
| T STAMP INC. |
| */s/ Gareth Genner* |
| Gareth Genner, Chief Executive Officer |
| Trust Stamp |
| The following persons in the capacities and on the dates indicated have signed this report. |
| */s/ Gareth Genner* |
| Gareth Genner, Principal Executive Officer, Chief Executive Officer, Director |
| Date: January 18, 2023 |
| */s/ Alex Valdes* |
| Alex Valdes, Principal Financial Officer, Principal Accounting Officer |
| Date: January 18, 2023 |
| */s/ Andrew Gowasack* |
| Andrew Gowasack, President, Director |
| Date: January 18, 2023 |
| */s/ David Story* |
| David Story, Director |
| Date: January 18, 2023 |
| */s/ William McClintock* |
| William McClintock, Director |
| Date: January 18, 2023 |
| */s/ Mark Birschbach* |
| Mark Birschbach, Director |
| Date: January 18, 2023 |
| */s/ Joshua Allen* |
| Joshua Allen, Director |
| Date: January 18, 2023 |
| */s/ Kristin Stafford* |
| Kristin Stafford, Director |
| Date: January 18, 2023 |
| */s/ Berta Pappenheim* |
| Berta Pappenheim, Director |
| Date: January 18, 2023 |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, Gareth Genner, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of T Stamp Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. [Omitted];

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: January 18, 2023

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| |
|:---|
| */s/ Gareth Genner* |
| Gareth Genner |
| Chief Executive Officer<br> (Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Alex Valdes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 of T Stamp Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. [Omitted];

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: January 18, 2023

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| |
|:---|
| */s/ Alex Valdes* |
| Alex Valdes |
| Chief Financial Officer |
| (Principal Financial Officer) |

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