IDAI

Trust Stamp is a $11.8M nano-cap selling AI identity-authentication software, and the numbers describe a company that has never found commercial traction. Revenue is $3.14M in FY2025 — up a trivial 1.9% YoY, but down from a $5.39M peak in FY2022 — so the top line is stagnant-to-shrinking, not scaling. Against that, the company posts a -$8.33M net loss, a -244% operating margin and a -$69.8M accumulated deficit. Losses did narrow (net income +33.6%, EPS +76.5%), and the MD&A explains why: management cut the non-production executive/consulting team, released underperforming sales staff, and offloaded technical-team cost via a services contract. That is survival cost-cutting, not a growth inflection — you don't fix a demand problem by firing salespeople.

The balance sheet looks superficially clean — liabilities/equity of just 0.27x, only $1.13M long-term debt, and $8.73M of equity (up 188%). But that equity strength is an illusion created by issuance, not earnings: shares outstanding jumped 112.5% YoY, and the $6.04M cash balance (up 117%) was funded by that raise, not the business. Operating cash flow was -$5.69M, so the cash pile covers barely a year of burn. With no path to breakeven at $3M of revenue, the company must keep selling stock, and a 112% annual share count increase tells you exactly who pays for the strategy — existing holders, relentlessly.