ATLANTA, GA – T Stamp Inc. (NASDAQ:IDAI), a prepackaged software services company, has entered into a material definitive agreement with DQI Holdings, Inc., as revealed in a recent SEC filing. The agreement, dated September 10, 2024, involves the issuance of warrants for purchasing shares and the resolution of outstanding promissory notes.
Under the terms of the Securities Purchase Agreement (SPA), T Stamp Inc. will issue warrants to DQI Holdings that allow for the acquisition of 3,763,950 shares of T Stamp's Class A Common Stock at an exercise price of $0.22 per share, adjustable under certain conditions. This move comes after T Stamp issued shares in exchange for promissory notes from DQI, two of which have already been repaid.
The agreement also stipulates that DQI Holdings will address issues preventing a $500,000 payment intended for a promissory note due August 31, 2024, and will expedite the repayment of a $1,000,000 note to be settled by September 30, 2024. On the closing date, T Stamp confirmed receipt of the wire transfer for the August promissory note repayment.
The warrants, which are immediately exercisable from November 1, 2024, and expire two years later, were issued in a transaction exempt from registration under the Securities Act. If T Stamp fails to deliver the shares upon warrant exercise within the specified period, the company is liable to pay liquidated damages to the warrant holder.
In conjunction with the SPA, T Stamp Inc. also signed a Registration Rights Agreement with DQI Holdings. This obliges T Stamp to file a registration statement with the SEC for the resale of the shares underlying the warrants. The registration is expected to be effective within 45 days post-closing, subject to adjustments for SEC review.
The information is based on a press release statement and aims to provide shareholders and potential investors with critical details regarding the company's latest financial dealings. T Stamp Inc. and DQI Holdings have not publicly commented on the future implications of this agreement.
In other recent news, Trust Stamp, an artificial intelligence company, has been granted a patent for personal identifiable information (PII) encoding technology by the US Patent and Trademark Office. This technology aims to enhance data protection and privacy.
Also, Trust Stamp is considering potential sale or merger options and is exploring significant cost reduction strategies. The company has secured approximately $2 million through a registered direct offering and concurrent private placement, with Maxim Group LLC acting as the sole placement agent.
Trust Stamp has also formed a strategic alliance with Qenta Inc. to enhance its digital identity technology. The company has regained compliance with the Nasdaq Capital Market's minimum stockholders' equity requirement through a private placement.
In addition, Trust Stamp has been making significant strides in data privacy and age verification, filing for a patent on an AI-powered process to improve the accuracy of biometric-based age estimation algorithms.
The company has received notices of allowance from the USPTO for patents titled "Personal Identifiable Information Encoder" and another utility patent for technology enhancing personal identifiable information's security and privacy.
InvestingPro Insights
In light of T Stamp Inc.’s recent definitive agreement with DQI Holdings, Inc., the company's financial health and market performance offer valuable context for investors. According to InvestingPro data, T Stamp Inc. boasts an impressive gross profit margin of 78.04% as of the last twelve months leading up to Q2 2024. This indicates a strong ability to control costs relative to revenue, an important consideration given the financial transactions detailed in the article.
However, it's noteworthy that the company's stock has experienced significant volatility. Despite a notable return over the last week of 7.93%, the company's stock price has declined significantly over longer periods, including a 45.65% drop over the last month and a staggering 89.53% fall over the last year. This could signal investor concerns or market adjustments that potential shareholders might want to consider.
Moreover, T Stamp Inc. operates with a moderate level of debt and has not been profitable over the last twelve months. The market cap stands at a modest $4.11M, reflecting the company's current valuation in the market. For investors interested in the detailed analysis and additional InvestingPro Tips, there are 14 more listed on the platform, which could provide deeper insights into T Stamp Inc.'s performance and potential investment strategies.
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