One of the biggest issues facing biometric systems is data breaches that target their underlying biological data. It is for this reason that T Stamp Inc.’s (NASDAQ: IDAI) new patent titled “ Systems and Methods for Privacy-Secured Biometric Identification and Verification” is extremely promising. The patent highlights these underlying security issues and offers a systematic solution that could revolutionize the industry. As is, IDAI is the only company that could utilize this system, which is why it might capture a sizable chunk of the biometric market as a result. Additionally, the company has 15 other patent applications pending which could act as catalysts if accepted. Given this information, IDAI stock could be one to hold in anticipation of substantial growth.
IDAI Fundamentals
Biometrics is a digital security method that utilizes anatomical (fingerprints, retinal scans) or physiological (blood, saliva) features in order to prevent data breaches. Having said that, the industry is currently facing an issue due to the fact that the current security methods do not sufficiently protect biometric templates, which are the biological data stored in the biometric system.
In the case of a breach, biometric systems scramble their biometric templates to render them unusable. As a result, the intrusive party acquires data that at face value seems unusable, but is not since the scrambled data is composed of the targeted biometric templates. In order to fix this issue, biometric systems utilize a more comprehensive scrambling system that renders the templates unusable even after reconfiguration. The issue here lies in the fact that by doing so the biometric systems are not able to read the biological templates they scrambled making their usage much more difficult.
The significance of IDAI’s biometric system is that the system addresses this issue. In turn, it is able to effectively fend against malicious breaches in security while maintaining usability afterward by utilizing a series of complex digital systems.
Cascading Patents
Currently, IDAI has been issued 16 patents – 15 of which are pending including one that was approved but not yet issued. Each of these pending patents could potentially serve as a potential positive catalyst for IDAI Stock which could help the stock reach new heights.
Stock movement aside, these patents could substantially increase the value of IDAI’s intellectual property. The more breakthroughs the company makes, the more uses its technology has which means that as it racks up patents, it becomes more desirable as a potential purchase for biometric tech giants like Fujitsu Limited (TSE: 6702). Even if that does not occur, the value of its intellectual property could come in handy on a rainy day.
Biometric Market Notoriety
Due to the excellence of its products, IDAI’s tech has been widely used by a litany of formidable institutions. Since January 22, financial institutions, accounting for 850 branches and valued at more than $50 billion, were in the process of implementing the company’s tech.
Moreover, 7 institutions, including the US arm of a global institution accounting for 1,500 branches and assets worth more than $1.5 trillion, recently started implementing IDAI’s tech. This indicates that notable figures have taken an interest in the company’s capabilities which in turn grants it an air of resilience in its industry. It is also proof that its technology is highly desirable due to its efficiency which is an extremely promising prospect given the fact that IDAI has plenty of other ideas in its pipeline that could be just as grand.
Biometric Market Value
The market for biometric systems was valued at around $29.09 billion in 2021. That said, it is projected to grow at a CAGR of 13.9% reaching $76.7 billion by 2029. Given the market’s growth rate, IDAI is not likely to experience a shortage of demand any time soon. Additionally, as more patents are issued the company is likely to capture more of the market which is why the stock may be poised to increase in value in the long term.
IDAI Financials
According to its Q1 2023 report, IDAI’s assets decreased QoQ from $6.4 million to $5.1 million, due to the fall in the value of the company’s properties and equipment. This fall accounted for a decrease from $300 thousand to $82 thousand. Additionally, accounts receivable also took a substantial hit, falling from $1 million to $553 thousand.
Meanwhile, its cash balance decreased from $1.2 million to $773 thousand. On the other hand, the company’s liabilities have increased from $ 5.7 million to $7.1 million. This increase is mostly due to deferred revenue and accounts payable. Deferred revenue caused current liabilities to rise by 32.49% or $935 thousand. This is actually a bullish indication, given the fact that deferred revenue can easily become revenue once the service is implemented or delivered.
When it comes to revenue IDAI experienced a significant YoY decrease from $2.8 million to $458 thousand. This decrease occurred because of the completion of an ICE contract, which provided IDAI within the first 3 months of 2022. Meanwhile, the company actively worked to cut general, administrative, and selling expenses which resulted in a $1.15 million, or 36.87%, decrease, which significantly contributed to expenses decreasing YoY from $4.4 million to $3 million. Having said that, the significant decrease in revenue is why its net loss increased YoY from $1.2 million to $2.5 million.
Technical Analysis
IDAI stock is in a bearish trend and is trading in a downward channel which it recently broke. Looking at the indicators, the stock is currently trading above the 200 and 50 MAs which is a bullish indication while trading below the 21 MA which is a bearish indication. Meanwhile, the RSI is neutral at 54 and the MACD is bearish.
As for the fundamentals, IDAI’s recent patent could help it capture a larger part of the growing biometrics market in addition to its 15 pending patents. Keeping that in mind, a possible play could be to go long when the stock cools down from its parabolic run and fill the gap near $1.47 in anticipation of more updates regarding its pending patents.
IDAI Forecast
As is, IDAI’s notoriety is increasing due to its incredible biometric technology. Furthermore, there are currently 15 pending patents that could act as future catalysts for IDAI stock once a decision on them is made. At its current trajectory, more patents are likely to be approved leading to an increasing number of institutions relying on the company’s tech. In this way, the company may be on track to dominate the biometric market.
IDAI Fundamentals
Biometrics is a digital security method that utilizes anatomical (fingerprints, retinal scans) or physiological (blood, saliva) features in order to prevent data breaches. Having said that, the industry is currently facing an issue due to the fact that the current security methods do not sufficiently protect biometric templates, which are the biological data stored in the biometric system.
In the case of a breach, biometric systems scramble their biometric templates to render them unusable. As a result, the intrusive party acquires data that at face value seems unusable, but is not since the scrambled data is composed of the targeted biometric templates. In order to fix this issue, biometric systems utilize a more comprehensive scrambling system that renders the templates unusable even after reconfiguration. The issue here lies in the fact that by doing so the biometric systems are not able to read the biological templates they scrambled making their usage much more difficult.
The significance of IDAI’s biometric system is that the system addresses this issue. In turn, it is able to effectively fend against malicious breaches in security while maintaining usability afterward by utilizing a series of complex digital systems.
Cascading Patents
Currently, IDAI has been issued 16 patents – 15 of which are pending including one that was approved but not yet issued. Each of these pending patents could potentially serve as a potential positive catalyst for IDAI Stock which could help the stock reach new heights.
Stock movement aside, these patents could substantially increase the value of IDAI’s intellectual property. The more breakthroughs the company makes, the more uses its technology has which means that as it racks up patents, it becomes more desirable as a potential purchase for biometric tech giants like Fujitsu Limited (TSE: 6702). Even if that does not occur, the value of its intellectual property could come in handy on a rainy day.
Biometric Market Notoriety
Due to the excellence of its products, IDAI’s tech has been widely used by a litany of formidable institutions. Since January 22, financial institutions, accounting for 850 branches and valued at more than $50 billion, were in the process of implementing the company’s tech.
Moreover, 7 institutions, including the US arm of a global institution accounting for 1,500 branches and assets worth more than $1.5 trillion, recently started implementing IDAI’s tech. This indicates that notable figures have taken an interest in the company’s capabilities which in turn grants it an air of resilience in its industry. It is also proof that its technology is highly desirable due to its efficiency which is an extremely promising prospect given the fact that IDAI has plenty of other ideas in its pipeline that could be just as grand.
Biometric Market Value
The market for biometric systems was valued at around $29.09 billion in 2021. That said, it is projected to grow at a CAGR of 13.9% reaching $76.7 billion by 2029. Given the market’s growth rate, IDAI is not likely to experience a shortage of demand any time soon. Additionally, as more patents are issued the company is likely to capture more of the market which is why the stock may be poised to increase in value in the long term.
IDAI Financials
According to its Q1 2023 report, IDAI’s assets decreased QoQ from $6.4 million to $5.1 million, due to the fall in the value of the company’s properties and equipment. This fall accounted for a decrease from $300 thousand to $82 thousand. Additionally, accounts receivable also took a substantial hit, falling from $1 million to $553 thousand.
Meanwhile, its cash balance decreased from $1.2 million to $773 thousand. On the other hand, the company’s liabilities have increased from $ 5.7 million to $7.1 million. This increase is mostly due to deferred revenue and accounts payable. Deferred revenue caused current liabilities to rise by 32.49% or $935 thousand. This is actually a bullish indication, given the fact that deferred revenue can easily become revenue once the service is implemented or delivered.
When it comes to revenue IDAI experienced a significant YoY decrease from $2.8 million to $458 thousand. This decrease occurred because of the completion of an ICE contract, which provided IDAI within the first 3 months of 2022. Meanwhile, the company actively worked to cut general, administrative, and selling expenses which resulted in a $1.15 million, or 36.87%, decrease, which significantly contributed to expenses decreasing YoY from $4.4 million to $3 million. Having said that, the significant decrease in revenue is why its net loss increased YoY from $1.2 million to $2.5 million.
Technical Analysis
IDAI stock is in a bearish trend and is trading in a downward channel which it recently broke. Looking at the indicators, the stock is currently trading above the 200 and 50 MAs which is a bullish indication while trading below the 21 MA which is a bearish indication. Meanwhile, the RSI is neutral at 54 and the MACD is bearish.
As for the fundamentals, IDAI’s recent patent could help it capture a larger part of the growing biometrics market in addition to its 15 pending patents. Keeping that in mind, a possible play could be to go long when the stock cools down from its parabolic run and fill the gap near $1.47 in anticipation of more updates regarding its pending patents.
IDAI Forecast
As is, IDAI’s notoriety is increasing due to its incredible biometric technology. Furthermore, there are currently 15 pending patents that could act as future catalysts for IDAI stock once a decision on them is made. At its current trajectory, more patents are likely to be approved leading to an increasing number of institutions relying on the company’s tech. In this way, the company may be on track to dominate the biometric market.