Full-year losses at Intercede, a specialist in digital identity, credential management and secure mobility, rose to £3.9m - up from £1.0m last time.
Revenues for the year ended 31 March totalled £8,286,000 - 25% down on the previous year's record revenues of £11,004,000.
Intercede said the US presidential race resulted in delays from government agencies making investment decisions but it had seen the resumption of business for the MyID platform.
It said: "We are pleased to see that revenues generated in the second half of the year matched the record revenues achieved in both halves of the previous year."
It added: "In the second half of the year, a cost-cutting review removed £600,000 of annualised costs from the business without impacting our development of new products.
"This partly offset the strategic investment as outlined and resulted in a lower than initially planned increase of 3% in operating expenses from £12,511,000 to £12,891,000. The drop in revenues has primarily lead to a £4,721,000 operating loss (2016: £1,917,000 operating loss)."