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Trust Stamp reports biometrics revenues up sharply in Q4

Imageware strategic review continues
Trust Stamp reports biometrics revenues up sharply in Q4

Trust Stamp is reporting improvements in several different financial metrics as its portfolio of intellectual property for biometrics reaches production contracts, while Imageware is still looking to secure further financing.

Meanwhile, Fingerprint Cards will present its first quarter results for 2022 in a webcast and telephone conference on Friday, April 22, 2022, and ForgeRock has announced it will report Q1 earnings on May 11. Aware reports on April 26.

Trust Stamp on the upswing

A contract with the U.S. Federal Government, biometrics patents, a larger team and the establishment of subsidiaries highlight a strong end to Trust Stamp’s fiscal 2021 year, the company says in an earnings report.

Trust Stamp booked $3.7 million in net sales in full-year 2021, with $2.1 million of that coming in the fourth quarter. Those figures represent 38.9 percent and 69.7 percent increases year-over-year, respectively. Gross profit increased 124 percent to $2.5 million. Operating costs exceeded even those gains, but Trust Stamp’s negative 241.7 percent net profit margin in full-year 2021 showed improvement in Q4, at negative 98.8 percent.

Diluted net loss per share decreased to $0.46 in 2021, from $0.90 in 2020, on a 15.2 percent decrease in net loss.

A biometrics contract with the U.S. Department of Homeland Security, signed last year with a $3.92 million value, was increased to $7.17 million in March, according to the announcement.

Other highlights during the 2021 fiscal year include Trust Stamp’s new subsidiaries, one based in Rwanda to advance research and development, and one to address the metaverse, and an increased intellectual property portfolio with 11 new pending patents and three granted, including novel approaches to biometrics.

“Our ongoing investment into building out our internal capabilities and developing our innovative IP portfolio to address evolving needs for privacy, security, and accessibility in digital operations resulted in key strategic achievements in 2021, including entry into the GovTech space with a contract from the United States federal government, growth in our client and prospect base, and expanded commercial relationships with both new and flagship customers,” states Trust Stamp CEO Gareth Genner.

Trust Stamp also increased its head count from 57 to 94 full-time team members in 2021.

Imageware anticipates capital raise, government procurements

The terms of the credit facility secured by Imageware at the end of 2021 to support its strategic review have been revealed in a Form 10-K filing with the SEC. Loans under the facility will have a 12 percent interest rate for six months, then rise to 17 percent.

Imageware still expects to complete a transaction to raise capital in support of its “projected cash shortfall to address our projected working capital requirements during the next twelve months.”

A discussion and analysis from Imageware management shows the company $854,000 in net product revenue for full-year 2021, with decreases in software and services with the completion of contracts, but an increase in biometric hardware sales. The company expects an increase in government procurement in the future, but warns that such projects are frequently delayed.

The hardware sales figure is available because the company has disaggregated its customer revenue reporting into software licensing and royalties, hardware sales, services, and post-contract customer support.

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