Trust Stamp announces a strategic partnership projected to generate up to $4.3m of revenue receipts in 2025

Rhea-AI Summary

Trust Stamp (IDAI) has announced a strategic partnership with Qenta Inc., involving multiple revenue streams projected to generate up to $4.3m in 2025. The deal includes:

1. A 10% ownership stake in Qenta's new subsidiary, QID Technologies

2. A $1m non-exclusive license fee for Trust Stamp's AI-powered identity technologies, payable in Q1 2025

3. Monthly service fees for business development, product development, and operations, capped at $3.6m annually (resulting in $3.3m net cash inflow considering Trust Stamp's 10% equity stake)

The partnership combines Trust Stamp's AI-powered identity authentication technology with Qenta's asset tokenization capabilities and QOS blockchain, creating a quantum-resistant identity and asset ecosystem. The company states this arrangement is immediately accretive, utilizing existing resources without additional expenses.

Positive

• Secured revenue stream of up to $4.3m for 2025
• Acquired 10% ownership stake in QID Technologies
• Immediate revenue generation without additional expenses
• One-time $1m license fee receivable in Q1 2025
• Annual service fees capped at $3.6m starting January 2025

Negative

• License agreement is non-exclusive, allowing potential competition
• Service fees are capped, limiting upside potential

Insights

Financial Analyst

<p>The strategic partnership with Qenta represents a significant financial catalyst for Trust Stamp, a micro-cap company with a market cap of <money>$13.3M</money>. The deal structure includes multiple revenue streams: a <money>$1M</money> upfront license fee in Q1 2025, potential service fees of up to <money>$3.3M</money> (net) and a <percent>10%</percent> equity stake in QID Technologies. The arrangement is particularly attractive as it leverages existing resources without additional costs, improving operational efficiency and bottom-line impact.</p><p>For a company of Trust Stamp's size, the projected <money>$4.3M</money> revenue potential represents a substantial portion of their market cap, potentially leading to significant value creation. The equity component provides additional upside potential through QID's future growth. The deal's structure, combining immediate cash flows with strategic positioning in quantum-resistant identity solutions, addresses both short-term financial needs and long-term market opportunities.</p>

Technology Analyst

<p>The partnership strategically positions Trust Stamp at the intersection of three critical technological trends: AI-powered identity verification, blockchain technology and quantum-resistant security. By integrating their proprietary AI authentication system with Qenta's asset tokenization and QOS blockchain, they're creating a comprehensive security ecosystem that addresses emerging threats like quantum computing and deepfake technologies.</p><p>The technology stack's application to national identity programs represents a significant market opportunity, as governments worldwide are seeking robust, quantum-resistant identity solutions. The combination of Trust Stamp's AI capabilities with Qenta's global asset tokenization infrastructure creates a unique value proposition in the identity management space, potentially establishing high barriers to entry for competitors.</p>

Atlanta, GA, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Trust Stamp (Nasdaq: IDAI), a global provider of AI-powered technologies, has announced a strategic transaction with Qenta Inc. (“Qenta”). Under the arrangement, Qenta is spinning its Goldstar KYC technology off into a newly formed subsidiary, QID Technologies LLC (“QID”), with Trust Stamp having a 10% ownership interest in the new entity. In parallel, Trust Stamp has provided a non-exclusive license of its AI-powered identity technologies to QID in return for a single $1m license fee receivable in three installments over Q1 of 2025.

QID is also contracting with Trust Stamp for business development, product development, and product operations for identity and privacy services and solutions in return for monthly service fees starting January 1st, 2025, and capped at $3.6m annually. As Trust Stamp is a 10% equity holder in QID, the projected $3.6m in billed revenue would result in a net cash inflow of $3.3m.

Gareth N. Genner, CEO of the Company, observed, “This strategic transaction brings together Trust Stamp’s unique AI-powered identity authentication and tokenization technology, Qenta’s global asset tokenization capability, and the power of the QOS permissioned blockchain. The result is a robust identity and asset ecosystem designed to resist threats, including quantum computing, ransomware, and deepfake technologies. From a Trust Stamp perspective, the transaction is immediately accretive in that we have been able to restructure and reallocate existing resources to service this new revenue stream without incurring additional expenses.”

Gareth N. Genner further commented, “QID is a perfect fit for our mission of accelerating secure financial and societal inclusion. The partnership allows our AI-powered technology to be deployed in a wider range of large-scale use cases, including national identity programs while providing Trust Stamp with potentially valuable equity participation and offsetting a significant proportion of our operating costs.” 

About Trust Stamp

Trust Stamp is a global provider of AI-powered software and data transformation services for use in multiple sectors, including banking and finance, regulatory compliance, government, real estate, communications, and humanitarian services. Trust Stamp is located across North America, Europe, Asia, and Africa and trades on the Nasdaq Capital Market (Nasdaq: IDAI). www.truststamp.ai

About Qenta

Qenta Inc. is a comprehensive financial services & technology platform offering asset tokenization, cashless payments, and capital & risk management solutions, uniquely positioned to serve emerging markets. By reducing friction and delivering better access to financial products and services, Qenta Inc. aims to create borderless and democratized financial ecosystems to elevate global businesses and citizens. www.qenta.com

Enquiries

Trust Stamp                                                   Email: Shareholders@truststamp.ai

Safe Harbor Statement: Caution Concerning Forward-Looking Remarks 

All statements in this release that are not based on historical fact are “forward-looking statements,” including within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The information in this announcement may contain forward-looking statements and information related to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views with respect to future events-based information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.

FAQ

How much revenue is Trust Stamp (IDAI) expected to generate from the Qenta partnership in 2025?

Trust Stamp is projected to generate up to $4.3m in revenue receipts in 2025 from the partnership, including a $1m license fee and up to $3.3m in net service fees.

What ownership stake did Trust Stamp (IDAI) receive in QID Technologies?

Trust Stamp received a 10% ownership stake in QID Technologies , the newly formed subsidiary of Qenta Inc.

How will Trust Stamp (IDAI) receive the $1m license fee payment?

The $1m license fee will be received in three installments over Q1 of 2025.

What is the annual cap on service fees for Trust Stamp (IDAI) in the Qenta partnership?

The service fees are capped at $3.6m annually, resulting in a net cash inflow of $3.3m after accounting for Trust Stamp's 10% equity stake.

What technologies are combined in the Trust Stamp (IDAI) and Qenta partnership?

The partnership combines Trust Stamp's AI-powered identity authentication and tokenization technology with Qenta's global asset tokenization capability and the QOS permissioned blockchain.