A digital ID verification company that won a major government contract just over two years ago has ceased operating.

SQR’s directors announced this week that they had made the ‘deeply painful’ decision to begin an orderly wind-down of operations with the official last day being Friday (July 31).

Digital IoM said it will offer support to those who have lost their jobs.

In June 2024, it was announced that SQR has secured a major contract with the Isle of Man government, providing independent digital ID verification services for Central Registry.

Its platform was used to check beneficial owners are who they say they are by validating data held on registry.

In an operations update posted on LinkedIn. SQR said it had recently initiated a funding round to support its next phase of product development but had been unable to secure the necessary capital.

It said: ‘As a result, the board of directors and executive leadership have made the deeply painful decision to commence an orderly wind-up of SQR’s operations.’

The company’s marketing manager, in what she described as one of the hardest posts she’s had to write, said: ‘When joining such a young organisation, you’re full aware of the risks but that doesn’t make moments like this any easier.

‘There’s a particular sadness in having to write the words announcing the end of something you’ve believed in, and been so proud to be part of.’

SQR, initially registered at The Hub on Victoria Street, Douglas, but latterly based at the Nunnery, was first registered in June 2021.

A spokesperson for the Department for Enterprise said: ‘The closure of any Isle of Man business, and any resulting loss of roles, is never welcome.

‘Through Digital Isle of Man, the department will continue to support SQR during this transition, and will be available to signpost those affected to appropriate support and guidance.

‘Given the strong demand for skills across the economy, it is hoped that anyone ultimately affected will be able to secure alternative employment in the island.’

The DfE said that with SQR’s service for submitting beneficial ownership notifications to the Central Registry ending on July 31, notifications already successfully processed remain valid, and no further action is required.

Central Registry will continue to accept new notifications in the usual way through its alternative procedures.

The DfE spokesperson added: ‘Central Registry recognises that service users welcomed the convenience of the online option in respect of beneficial ownership notifications, and will seek to procure an alternative solution in the coming months.’

She confirmed that the DfE had provided funding support to SQR to help develop its operations, through its business support schemes.

‘As with all such support, funding is provided subject to agreed terms. The department will now consider the circumstances of the closure in line with those arrangements,’ she said.

‘The separate Central Registry contract was awarded in accordance with financial regulations and procurement standards.

‘The department will not disclose the value of the contract at this time, as doing so could prejudice future procurement of these services.'