Segment Reporting
The Company adheres to the provisions of ASC 280, Segment Reporting, which establishes standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in our consolidated financial statements. The Company currently operate in one reportable segment, artificial intelligence-powered solutions. The artificial intelligence-powered solutions segment generates revenue primarily from software licenses, professional services, and recurring SaaS revenue. The Company determined that providing the geographic information is impracticable as consolidated financial results are evaluated regardless of the location.
The Company’s Chief Operating Decision Maker (the "CODM") is the Chief Executive Officer. Our CODM uses the segment information primarily to evaluate the profitability and strategic growth potential of the segment. The reported measures of profit or loss are evaluated at the consolidated financial level and is benchmarked against historical performance and expectations. The CODM does not distinguish between markets or segments for the purpose of internal reporting. Based on this analysis, the CODM evaluates strategic decisions such as investing in new technologies or reallocating operational resources, particularly workforce-related expenses.
The Company’s CODM assesses performance, allocates resources, and makes operating decisions on a consolidated net income basis. The segment Net revenues earned that were United States based were $3.12 million and $3.08 million for the years ended December 31, 2025 and 2024, respectively, while non-United States based revenues earned were $17 thousand and $4 thousand, respectively. The Company’s significant segment expenses, which are the expenses included in Operating loss as well as Interest expenses, net, Change in fair value of warrant liability, Other income, Other expense, and other segment items, which includes Income tax expense, Net loss from equity method investment, related party, and Loss on extinguishment of debt, are included in the Company’s consolidated statement of operations. Segment assets are disclosed in the consolidated balance sheets. The majority of the Company's long-lived tangible assets are held in the United States by T Stamp Inc. and amounts held by non-United States entities are immaterial.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.