T Stamp Inc, a company specializing in prepackaged software, has been granted an additional 180-day grace period by Nasdaq to meet its minimum bid price requirement, the company disclosed in a recent SEC filing. The Atlanta-based firm, trading under the ticker NASDAQ:IDAI, initially fell short of the Nasdaq's continued listing standard when its Class A Common Stock closed below the $1.00 minimum bid price for 30 consecutive business days prior to May 3, 2024.
The initial 180-day compliance window, which ended on October 30, 2024, did not see the company's stock price recover to the required level. However, on Monday (NASDAQ:MNDY), Nasdaq determined that T Stamp Inc is eligible for an additional grace period until April 28, 2025, to regain compliance. This decision was based on the company's compliance with all other initial listing standards, except for the bid price.
T Stamp Inc has expressed its intention to address the deficiency within this period, including the possibility of implementing a reverse stock split if necessary. The company must ensure that the closing bid price of its stock reaches at least $1 per share for at least 10 consecutive business days during this period. If T Stamp Inc fails to meet the minimum bid price by April 28, 2025, it faces the risk of delisting from the Nasdaq Capital Market.
On the same day, T Stamp Inc also received notification from Nasdaq confirming its compliance with Listing Rule 5550(b)(1), as detailed in a Current Report filed on November 1, 2024. Nasdaq's notice indicated that the company must continue to demonstrate compliance in its next periodic report to avoid potential delisting.
In other recent news, T Stamp Inc. reported significant changes in its leadership and business operations. The company confirmed the appointment of Andrew Scott Francis, its current Chief Technology Officer, to the Board of Directors, a move that underscores its commitment to utilizing internal expertise for strategic oversight. Meanwhile, the departure of CFO Alexander Valdes and Executive Vice President of Mergers and Acquisitions Joshua Allen was announced.
T Stamp Inc. also disclosed a major agreement with DQI Holdings, involving the sale of over 1.3 million shares of Class A Common Stock for a total of $300,000. This transaction is part of a broader set of arrangements, including a Registration Rights Agreement, obligating T Stamp to register these shares for resale.
The company also reported regaining compliance with Nasdaq's equity requirement, exceeding the minimum stockholders' equity threshold set by Nasdaq. This was achieved through strategic transactions, including the issuance of shares to convert debt into equity, a licensing agreement with Boumarang Inc., and the sale and exercise of warrants with institutional investors.
Moreover, the company has been issued a patent for personal identifiable information encoding technology by the US Patent and Trademark Office, and it also secured approximately $2 million through a direct offering and concurrent private placement. T Stamp Inc. formed a strategic alliance with Qenta Inc. to advance its digital identity technology.
InvestingPro Insights
T Stamp Inc's (NASDAQ:IDAI) current financial situation aligns with its struggle to meet Nasdaq's minimum bid price requirement. According to InvestingPro data, the company's market capitalization stands at a modest $4.61 million, with its stock trading near its 52-week low. This is reflected in the significant price declines over various timeframes, with a 82.37% drop in the past year alone.
Despite these challenges, there are some positive indicators. InvestingPro Tips highlight that IDAI has shown impressive gross profit margins, which is supported by the data showing a 78.04% gross profit margin in the last twelve months. Additionally, the company has experienced strong revenue growth, with a 69.9% increase over the same period.
However, it's crucial to note that IDAI is not currently profitable, which may contribute to its stock price struggles. The company's negative P/E ratio of -0.29 and operating income of -$8.37 million in the last twelve months underscore the financial hurdles it faces.
For investors considering IDAI's potential recovery, InvestingPro offers 11 additional tips that could provide valuable insights into the company's prospects. These tips could be particularly useful as T Stamp Inc works towards regaining Nasdaq compliance and improving its market position.
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