Trust Stamp Reports 2022 Financial Results and Provides Business Update - Seite 2

“Our proprietary artificial intelligence (AI) powered identity and trust solutions enable government and private sector organizations to protect themselves and their users while empowering individuals to retain ownership of their identity data and prevent fraudulent activity. These solutions have required a substantial multi-year investment in research and development (R&D), resulting in fourteen issued patents and nineteen pending patents. We will continue investing in R&D and intellectual property, but going forward, as we monetize our intellectual property, we anticipate our R&D and IP-related expenses reducing as a percentage of our revenue.

“Looking ahead, we have multiple shots on goal, including a ten-year technology service agreement with Mastercard International, whereby Trust Stamp is paid to develop and host software solutions utilizing the IT2 and support Mastercard’s implementations. In addition to payment for the core services, we receive payment for all transactions utilizing our technology. In December of 2022, Mastercard International and Trust Stamp entered into a modification of the agreed pricing schedule to move from a per-use to a per-user-year model to broaden the range of potential use cases. Under that agreement, Trust Stamp currently receives minimum annual payments on account of usage, and we anticipate use-based revenue starting in 2023 and growing year-on-year thereafter.

“Our initial focus was on the U.S. banking sector, as evidenced by our work with FIS and an S&P500 Bank that has successfully deployed our technology for close to six years. We have now expanded that focus to encompass engagement with U.S. insurance companies that are seeing a growing need to combat identity-related fraud. We anticipate the first insurance company deployment before the end of 2023.

“In parallel, we believe that our work with the U.S. government has positioned us well as we pursue new Federal and State contracts in the U.S., and in 2022 and Q1 of 2023, we have invested heavily in building FedRamp-compliant systems and transitioning to operating in the AWS GovCloud to be eligible for a broader range of U.S. government opportunities. There is an increased governmental focus on privacy and data protection, and collecting and storing biometrics is a particular area of contention that is uniquely addressed by our proprietary IT2-powered solutions. The multi-year government contracts that we are targeting to participate in are substantial, ranging from single-digit millions to billions of dollars. Given the magnitude of many of these projects, in some cases, we would engage partners to deliver the full range of required services. Importantly, we are confident that our unique IT2 technology is the key to delivering the secure identity services that legislators and the public demand.