wickw50
1 month ago
HOLMDEL, N.J., June 17, 2024 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (Nasdaq: BKYI), an innovative provider of workforce and customer Identity and Access Management (IAM) solutions featuring passwordless, phoneless and token-less Identity-Bound Biometric (IBB) authentication, announced results for its first quarter ended March 31, 2024 (Q1’24). Note, BIO-key’s results for the first three quarters of 2023 were restated at year-end and filed with the Company’s 2023 Form 10-K, and as a result Q1’23 comparisons in this release have been restated. BIO-key will host an investor call Tuesday, June 18th at 10:00am ET (details below).
Q1 Financial Highlights
Q1’24 revenues of $2.2M were in line with Q1’23 and increased 19.5% from Q4’23 revenues of $1.8M
Gross profit increased to $1.9M (86.3% gross margin) from $0.9M (40% gross margin) in Q1’23, reflecting the impact of a Q1’23 $0.5M hardware inventory reserve, as well as higher software license fees in Q1’23 due to higher royalty payments on third-party software solutions.
Operating expenses were reduced over $0.2M in Q1’24 versus Q1’23, reflecting ongoing cost management initiatives.
BIO-key reported a Q1’24 net loss of $0.5M compared to a net loss of $1.7M in Q1’23
Cash generated from operating activities improved to $0.3M in Q1’24 vs. a $1.9M cash used in Q1’23, principally reflecting the benefit of a $1.5M cash payment in Q1’24 for 2-year extension/expansion of biometric technology license with a long-term financial services customer.
Other Recent Software Deployments:
Fargo, ND and Junction City, KS Chose PortalGuard with Biometric Authentication
Bridgetown, Barbados Credit Union Selected PortalGuard with Biometrics for Shared Workstations
Commentary
BIO-key CEO, Mike DePasquale commented, “BIO-key delivered solid progress in Q1’24, achieving positive cash flow from operations in the period, on revenue of $2.2M, representing a 19.5% increase over Q4’23 and roughly flat with the year-ago period. The current-year period benefitted from the expanded deployment of BIO-key’s biometric client identification system used by a long-standing financial services client. We also further trimmed operating expenses during Q1’24, contributing to our improved bottom-line performance.
“We remain focused on driving revenue growth and progressing our business to profitability and positive cash flow over the next several quarters. We are encouraged by the traction building within our global Channel Alliance Partner program and with the larger-scale customer dialogues in which we are engaged through our in-house direct sales effort. We believe the cybersecurity landscape continues to provide a compelling backdrop for our company, as we expect it will generate increased demand for secure, zero-trust Identity and Access Management solutions that are the core of our offerings.
“Tailwinds that we expect to support our growth include a growing proportion of enterprises that are moving IT infrastructure to the cloud as well as increasingly stringent regulatory standards as well as cyber insurance underwriting requirements, much of which are now mandating multi-factor authentication or passwordless security solutions that BIO-key is well positioned to provide on a very competitive basis.
“We are also very bullish on the growth potential for passkey authentication this year and going forward. We entered this market with the recent launch of Passkey:YOU – BIO-key’s unique passwordless authentication solution that leverages our strength in biometric security to deliver secure passkeys without the use of phones or hardware tokens.
“We continue to pursue large enterprise opportunities through our direct sales channel, looking to build on recent successes in this area. We are also working to support our global channel partners in developing new customer opportunities to further build our end-user base. Our efforts have forged a growing base of high-margin annually recurring revenues (ARRs) and believe there is substantial potential to grow our ARR base moving forward. At the same time, we will continue to pursue cost reduction opportunities to accelerate our path to profitability and positive cash flow. We are also working to identify potential strategic opportunities to leverage our growing global base of customers to accelerate shareholder value creation. For these and other reasons, we believe BIO-key is well-positioned for the future.”
Financial Results
Q1’24 revenues of $2.2M were in line with similarly strong Q1’23 revenues. The current-year period was positively impacted by the expanded use of BIO-key’s biometric client identification system by a long-time financial services customer in South Africa. One large order from this customer in Q1’24 was the primary driver of a 23.6% increase in license fee revenues, offset by a decline in recurring and custom services and hardware revenue. Services revenue decreased due to the loss of one large service agreement and the absence of a large customer for Swivel Secure customizations and upgrades, which had occurred in Q1’23.
Gross profit grew over 100% to $1.9M in Q1’24 from $0.9M in Q1’23, reflecting the impact of $0.5M hardware reserve in Q1’23, as well as higher software license fee costs in Q1’23 related to royalty payments resulting from higher sales of our third-party Swivel Secure offerings. As a result, gross profit margin improved to 86% in Q1’24 vs. 40% in Q1’23, which includes a hardware reserve expense. Q1’24 gross margin also increased due to a revenue mix that included more high-margin license fee revenue.
Total operating expenses were reduced by approximately $0.2M or 9%, to $2.4M in Q1’24 from $2.6M in Q1’23, due to lower selling, general and administrative costs (SG&A) and lower research, development and engineering expenses (RD&E). SG&A decreased $148,759 (8%) to $1.8M in Q1’24, due to reductions in administration, sales personnel costs and marketing show expenses, including lower lease expense for our NJ headquarters versus Q1’23, partially offset by higher audit and reporting expenses. In Q3 of 2023, we were able to downsize our corporate headquarters, as many of our team now work remotely, which benefitted Q1’24 vs. Q1’23. RD&E also declined by $82,638 (12%) to $607,521, due to reductions in personnel, related benefits and outside services expenses.
Reflecting revenue strength and lower operating costs, BIO-key trimmed its net loss by 70% to $510,285, or $0.32 per share, in Q1’24 from $1.7M, or $3.51 per share, in Q1’23.
Balance Sheet
At March 31, 2024, BIO-key had current assets of approximately $2.3M, including $690,449 of cash and cash equivalents, $710,026 of net accounts receivable and due from factor, and $440,194 of inventory.
Conference Call Details
Date / Time: Tuesday, June 18th at 10 a.m. ET
Call Dial In #: 1-877-418-5460 U.S. or 1-412-717-9594 Int’l
Live Webcast / Replay: Webcast & Replay Link – Available for 3 months.
Audio Replay: 1-877-344-7529 U.S. or 1-412-317-0088 Int’l; code 1988012
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; delays in the development of products, the commercial, reputational and regulatory risks to our business that may arise as a consequence the restatement of our financial statements, including any consequences of non-compliance with Securities and Exchange Commission (“SEC”) and Nasdaq periodic reporting requirements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during fiscal year 2024 certain material weaknesses in our internal controls over financial reporting, and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
Engage with BIO-key
Facebook – Corporate: https://www.facebook.com/BIOkeyInternational/
LinkedIn – Corporate: https://www.linkedin.com/company/bio-key-international
Twitter – Corporate: @BIOkeyIntl
Twitter – Investors: @BIO_keyIR
StockTwits: BIO_keyIR
Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI @Bacchus-9800
BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
Three Months Ended
March 31,
2024 2023
Revenues
Services $ 213,122 $ 532,522
License fees 1,950,434 1,578,556
Hardware 17,647 72,689
Total revenues 2,181,203 2,183,767
Costs and other expenses
Cost of services 138,849 154,801
Cost of license fees 148,221 620,881
Cost of hardware 12,573 44,592
Cost of hardware - reserve - 500,000
Total costs and other expenses 299,643 1,320,274
Gross profit 1,881,560 863,493
Operating Expenses
Selling, general and administrative 1,782,973 1,931,732
Research, development and engineering 607,521 690,159
Total Operating Expenses 2,390,494 2,621,891
Operating loss (508,934 ) (1,758,398 )
Other income (expense)
Interest income 5 4
Loss on foreign currency transactions - (15,000 )
Change in fair value of convertible note - 141,991
Interest expense (1,356 ) (56,919 )
Total other income (expense), net (1,351 ) 70,076
Loss before provision for income tax (510,285 ) (1,688,322 )
Provision for (income tax) tax benefit - -
Net loss $ (510,285 ) $ (1,688,322 )
Comprehensive loss:
Net loss $ (510,285 ) $ (1,688,322 )
Other comprehensive income (loss) – Foreign currency translation adjustment (62,275 ) 72,146
Comprehensive loss $ (572,560 ) $ (1,616,176 )
Basic and Diluted Loss per Common Share $ (0.32 ) $ (3.51 )
Weighted Average Common Shares Outstanding:
Basic and diluted 1,615,323 480,833
All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1-for-18 reverse stock split, which was effective December 21, 2023.
BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2024 2023
(Unaudited)
ASSETS
Cash and cash equivalents $ 690,449 $ 511,400
Accounts receivable, net 701,776 1,201,526
Due from factor 8,250 99,320
Inventory 440,194 445,740
Prepaid expenses and other 427,685 364,171
Total current assets 2,268,354 2,622,157
Equipment and leasehold improvements, net 198,238 220,177
Capitalized contract costs, net 349,145 229,806
Operating lease right-of-use assets 23,220 36,905
Intangible assets, net 1,329,985 1,407,990
Total non-current assets 1,900,588 1,894,878
TOTAL ASSETS $ 4,168,942 $ 4,517,035
LIABILITIES
Accounts payable $ 1,212,071 $ 1,316,014
Accrued liabilities 1,189,520 1,305,848
Government loan – BBVA Bank, current portion 135,835 138,730
Deferred revenue, current 755,405 414,968
Operating lease liabilities, current portion 23,797 37,829
Total current liabilities 3,316,628 3,213,389
Deferred revenue, long term 143,727 28,296
Deferred tax liability 22,998 22,998
Government loan – BBVA Bank – net of current portion 149,861 188,787
Total non-current liabilities 316,586 240,081
TOTAL LIABILITIES 3,633,214 3,453,470
Commitments and Contingencies
STOCKHOLDERS’ EQUITY
Common stock — authorized, 170,000,000 shares; issued and outstanding; 1,814,414 and 1,032,777 of $.0001 par value at March 31, 2024 and December 31, 2023, respectively 181 103
Additional paid-in capital 126,092,496 126,047,851
Accumulated other comprehensive loss (39,454 ) 22,821
Accumulated deficit (125,517,495 ) (125,007,210 )
TOTAL STOCKHOLDERS’ EQUITY 535,728 1,063,565
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 4,168,942 $ 4,517,035
All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1-for-18 reverse stock split, which was effective December 21, 2023.
BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
2024 2023
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss $ (510,285 ) $ (1,688,322 )
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation 23,808 13,242
Amortization of intangible assets 78,005 81,237
Change in fair value of convertible note - (141,991 )
Amortization of capitalized contract costs 38,665 37,529
Reserve for inventory - 500,000
Operating leases right-of-use assets 13,686 66,132
Share and warrant-based compensation for employees and consultants 47,790 59,373
Stock based directors’ fees 9,003 12,002
Bad debts 100,000 -
Change in assets and liabilities:
Accounts receivable 399,749 (898,881 )
Due from factor 91,070 (33,000 )
Capitalized contract costs (158,005 ) (8,739 )
Inventory 5,545 6,554
Prepaid expenses and other (63,513 ) 2,219
Accounts payable (116,012 ) 88,040
Accrued liabilities (104,257 ) (135,417 )
Deferred revenue 455,868 178,755
Operating lease liabilities (14,033 ) (67,544 )
Net cash provided by (used in) operating activities 297,084 (1,928,811 )
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1,869 ) -
Net cash used in investing activities (1,869 ) -
CASH FLOW FROM FINANCING ACTIVITIES:
Deferred offering costs (13,470 ) -
Proceeds for exercise of warrants 1,400 -
Repayment of government loan (41,821 ) (34,289 )
Net cash used in financing activities (53,891 ) (34,289 )
Effect of exchange rate changes (62,275 ) 49,913
NET DECREASE IN CASH AND CASH EQUIVALENTS 179,049 (1,913,187 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 511,400 2,635,522
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 690,449 $ 722,335
All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1-for-18 reverse stock split, which was effective December 21, 2023.
wickw50
1 month ago
BIO-key Introduces Passkey:YOU, a Phish-resistant, Phoneless and Tokenless Biometric FIDO Passkey Authentication Solution
Convenient, Lower-cost FIDO Passkey Authentication Provides a Superior User Experience powered by BIO-key's Identity-Bound Biometrics
HOLMDEL, N.J., June 14, 2024 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (NASDAQ: BKYI), an innovative provider of workforce and customer Identity and Access Management (IAM) software infrastructure featuring passwordless, phoneless and token-less Identity-Bound Biometric (IBB) authentication solutions, today announced the launch of a unique biometric FIDO passkey authentication solution targeting underserved workplace scenarios in manufacturing, retail, healthcare, call center and Sensitive Compartmentalized Information Facilities (SCIFs): Passkey:YOU.
Eliminating passwords and implementing multi-factor authentication (MFA) is a goal of nearly every security-conscious enterprise, but mainstream IAM platforms offer only limited “what you have” authentication options based on phone apps and FIDO tokens. These options are ill-suited for many workplace scenarios that prohibit the use of phones or personal devices, leading to challenges in implementing passwordless or MFA without using phones. The current industry-standard phone-less authentication solution is FIDO hardware tokens, requiring enterprises to purchase two or more FIDO hardware tokens for every user, ranging in cost from $25-$70 each, not to mention replacing user tokens when lost. The leading FIDO token manufacturer states that 25% annual token replacement is typical. The economics of procuring hardware tokens for tens of thousands of roving users to access an often much smaller set of shared workstations and devices just doesn’t make business sense.
Passkey:YOU avoids the high cost of buying FIDO hardware tokens for every user, turning the unfavorable economics of FIDO hardware tokens on its head by placing authentication hardware at device access points, not in every user’s pocket. Passkey:YOU leverages the managed hosted FIDO-certified passkey capabilities of BIO-key’s partner IDmelon’s managed passkey solution to replace per-user tokens and phones as device authenticators with a simple touch of a shared USB fingerprint scanner or the tap of a standard door access badge to a shared USB NFC scanner connected to any Windows workstation to unlock a managed Passkey for the user, authenticating the user without a phone or a FIDO hardware token needed.
In its biometric mode, Passkey:YOU is powered by BIO-key’s renowned Identity-Bound Biometrics, allowing an unlimited number of users to be their own phish-proof credential, eliminating the need for them to carry any device or token to authenticate and get work done. BIO-key’s biometric platform includes privacy law-compliant workflows and provides user controlled privacy dashboards, ensuring that enterprises can use biometrics with confidence that they will comply with privacy laws in every jurisdiction. Passkey:YOU’s phoneless and tokenless authentication is a user-centric, more cost-effective approach that is ideally suited for scenarios where users operate without phones, such as manufacturing shop floor, retail, call center, higher education, and healthcare. In addition to biometric access, Passkey:YOU also supports standard proximity door access cards as authenticators for appropriate security applications.
By eliminating the requirement for a phone or FIDO hardware token to strongly authenticate users, Passkey:YOU fills gaps in mainstream authentication, and is a drop-in, zero-configuration replacement for any application or identity provider that currently accepts FIDO hardware tokens or phone-based passkeys. Passkey:YOU can be deployed as a hosted or on-premise deployment, and provides security teams immediate visibility into user access patterns to third-party applications that traditional FIDO security keys do not. Passkey:YOU facilitates passwordless workflows and integrates seamlessly into zero-trust frameworks and existing Identity and Access Management (IAM) platform identity providers such as Microsoft Entra, Okta, Ping and Duo. With Passkey:YOU, users can effortlessly present a biometric-secured FIDO passkey, serving as a drop-in replacement for existing FIDO and WebAuthn passkeys or hardware tokens, ensuring secure and convenient authentication for every user.
“FIDO Passkeys are quickly becoming the dominant means to combat phishing and eliminate passwords for enterprise users,” said Jim Sullivan, SVP of Strategy and Chief Legal Officer at BIO-key. “Unfortunately, the mainstream ‘what-you-have’ approaches center on phone apps and hardware key-based passkeys, which don’t work in many workforce user scenarios. Our customers asked us to solve the passwordless and multi-factor authentication challenge arising among the largest segments of their digitally enabled workforces – what-you-have authentication approaches are inefficient, allow account sharing, and are too expensive. With our partner IDmelon, we developed a BIO-key-secured passkey authentication solution that makes using passkeys to eliminate passwords effortless while instantly identifying users with certainty. This authentication product should be a valuable tool for hundreds of thousands of global enterprises that struggle to deliver passwordless and strong authentication all users with their existing IAM platform choice.”
BIO-key's Passkey:YOU boasts unique technology and efficiency differentiations from existing passkey approaches:
Cost & Efficiency: Passkey:YOU cuts lifecycle costs by 50 – 70% compared to FIDO hardware tokens while exceeding strong authentication requirements of cyber insurers to avoid increased premiums or dropped coverage.
Flexibility and Familiarity: Passkey:YOU can be easily integrated into existing authentication processes for identity providers, applications, and infrastructure, because it presents to FIDO-compliant relying parties as a standard FIDO authenticator. There’s no need to rip and replace existing identity providers. Passkey:YOU has a minimal contact surface with existing systems because it leverages FIDO-certified workflows. One-time enrollment enables access across multiple devices and locations, without configuration of any relying party necessary.
Security: Passkey:YOU is powered by BIO-key's Identity-Bound Biometrics, which supports over 30 different fingerprint scanners interchangeably, utilizes centrally managed and encrypted NIST-certified biometrics, secured by patented 1024-bit encryption to defeat man-in-the-middle and replay attacks.
Biometric Privacy Law Compliance: BIO-key’s enrollment and operational workflows were designed to ensure compliance with global biometric privacy laws, ensuring that enterprises can yield the benefits of biometrics with confidence that compliance and privacy are integral to the platform.
Please visit the BIO-key website to learn more about Passkey:YOU and Identity-Bound Biometrics.
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; delays in the development of products, the commercial, reputational and regulatory risks to our business that may arise as a consequence the restatement of our financial statements, including any consequences of non-compliance with Securities and Exchange Commission (“SEC”) and Nasdaq periodic reporting requirements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during fiscal year 2024 certain material weaknesses in our internal controls over financial reporting, and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
Engage with BIO-key
Facebook – Corporate:
LinkedIn – Corporate:
Twitter – Corporate:
Twitter – Investors:
StockTwits:
https://www.facebook.com/BIOkeyInternational/
https://www.linkedin.com/company/bio-key-international
@BIOkeyIntl
@BIO_keyIR
BIO_keyIR
Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI @Bacchus-9800
wickw50
2 months ago
BIO-key International, Inc. Receives Notice of Non-Compliance from Nasdaq
WALL, N.J., May 24, 2024 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (Nasdaq: BKYI), an innovative provider of workforce and customer identity and access management (IAM) solutions featuring Identity-Bound Biometrics (IBB), announced today that on May 22, 2024, it received a letter (the “Notification Letter”) from The Nasdaq Stock Market, LLC (“Nasdaq”) informing the Company that it was not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (“SEC”), due to the Company’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 (the “Form 10-Q”). The Notification Letter has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market.
The Company filed a Notification of Late Filing on Form 12b-25 on May 16, 2024, indicating that the filing of the Form 10-Q would be delayed because it was unable to timely file the Form 10-Q without unreasonable effort and expense. As previously announced, the Company is in the process of restating its consolidated financial statements for the three months ended March 31, 2023, the three and six months ended June 30, 2023, and the three and nine months ended September 30, 2023 which has delayed the compilation, presentation and review of certain financial and other disclosures required to be included in the Form 10-Q.
The Notification Letter stated that the Company remains delinquent in filing its Form 10-K for the period ended December 31, 2023 (the “Form 10-K”) and has until June 17, 2024 to submit a plan to regain compliance with respect to these delinquent reports. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the filing due date of the 10-K, or until October 14, 2024, to regain compliance. The Company intends to file the Form 10-Q and the Form 10-K with the SEC as soon as practicable and regain compliance with Nasdaq’s continued listing requirements.
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “Act”). The words “estimate,” “project,” “intends,” “expects,” “anticipates,” “believes” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management’s beliefs, as well as assumptions made by, and information currently available to, management pursuant to the “safe-harbor” provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; the duration and extent of continued hostilities in Ukraine and its impact on our European customers; delays in the development of products, the nature and estimated amount of adjustments to our previously issued financial statements covering the quarterly periods in 2023, as well as the nature and estimated adjustments that may be required from our preliminary estimates of results for 2023 and first quarter of 2024, as the final adjustments may vary from the amounts estimated in our prior SEC Reports, which variance may be material; the commercial, reputational and regulatory risks to our business that may arise as a consequence of our need to restate our financial statements, including any consequences of non-compliance with Securities and Exchange Commission (“SEC”) and Nasdaq periodic reporting requirements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during fiscal year 2024 certain material weaknesses in our internal controls over financial reporting, and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
Engage with BIO-key:
Facebook – Corporate: https://www.facebook.com/BIOkeyInternational/
LinkedIn – Corporate: https://www.linkedin.com/company/bio-key-international
Twitter – Corporate: @BIOkeyIntl
Twitter – Investors: @BIO_keyIR
StockTwits: BIO_keyIR
Investor Contacts:
William Jones, David Collins
Catalyst IR
BKYI@catalyst-ir.com
212-924-9800
wickw50
4 months ago
Identity and Access Management Software Provider BIO-key Preliminary 2023 Results: Operating Loss Trimmed Approx. $3.5M on Approx. 29% Revenue Growth to $9.1M; Investor Call Tomorrow at 10am ET
HOLMDEL, N.J., April 01, 2024 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (Nasdaq: BKYI), an innovative provider of workforce and customer Identity and Access Management (IAM) solutions featuring passwordless, phoneless and token-less Identity-Bound Biometric (IBB) authentication, announced preliminary results for its fourth quarter (Q4’23) and year ended December 31, 2023 (2023). The independent audit of BIO-key’s 2023 financial statements has not yet been completed and, therefore, the figures included herein are subject to change. BIO-key will host an investor call tomorrow at 10:00am ET (details below).
Preliminary Results Highlights:
2023 revenue rose $2M (29%) to $9.1M
2023 SG&A trimmed by $2.1M (22%)
Net cash used in operating activities was reduced by $2.5M in 2023
Q4’23 & 2023 cost of hardware reflects $2.8M reserve against slow moving inventory for Africa
$1.5M cash payment received in Q1’24 for 2-year extension/expansion of biometric technology license
CEO Commentary
BIO-key CEO, Mike DePasquale commented, “BIO-key made solid progress on our path to profitability in 2023, driven by 29% revenue growth and cost cutting initiatives that trimmed SG&A expense by $2.1M, largely in the second half of the year. We look to build on this record in 2024, focusing on top-line growth opportunities balanced with further efforts to reduce costs. We believe our growing global distribution and customer base puts us in a strong position to reach profitability over the next several quarters.
“Looking forward, we expect increased deployment of enhanced IAM solutions as enterprises transition to the cloud and respond to a growing array of security incidents that highlight potential cybersecurity vulnerabilities. This trend is further supported by regulatory requirements and increasingly stringent Cyber Insurance underwriting standards that mandate enhanced multi-factor authentication and/or passwordless security solutions that are at the core of our offerings.
“As passwordless authentication gains traction, our solutions are well positioned to provide organizations an integrated approach to managing and securing all of their identities with technologies they already use, while also supporting their future needs with a cost-effective platform. We also expect that passkey authentication, which has been embraced by Google, Apple, Amazon and Microsoft, will continue to expand its penetration in 2024. To capitalize on this opportunity, BIO-key will soon launch, Passkey:YOU, a unique passwordless authentication solution that does not require the use of phones or hardware tokens, with planned enhancements expected later in the year.
Outlook
“The current climate of broad enterprise adoption of MFA to replace passwords presents opportunities for us to leverage our unique differentiators and exploit gaps in existing IAM approaches. Gaps include challenges of authenticating users that ‘rove’ among workstations and preventing unauthorized account sharing and delegation.
“Today BIO-key has more than 600 customers globally. Our business is predominately SaaS or subscription based, and most of our new business is sold through channel partners. We remain focused on an asset light go-to-market plan that leverages more than 150 Channel Alliance Partners, along with our targeted internal sale team. Together, we believe these channels position BIO-key for meaningful top- and bottom-line improvement in 2024, building on our base of annually recurring services and license fee revenues (ARRs) with a blended gross margin of approximately 65%.
“We will also continue to pursue cost reduction initiatives in 2024, to help accelerate our path to positive cash flow and profitability. Our Q4’23 bottom line included a $2.8M non-cash reserve on slow moving hardware inventory purchased for our Africa initiatives. We continue to explore opportunities to convert this inventory into cash. Importantly, during the first quarter of 2024 we enhanced our financial position with the execution of a $1.5M, 2-year license extension for a long-time customer and receipt the full license payment. We also continue to pursue large enterprise opportunities through our direct sales channel. For these and other reasons, we are particularly excited about BIO-key’s outlook for 2024.”
Preliminary Financial Results
Please note that the audit of our 2023 financial statements has not been completed by our independent registered public accounting firm as of the date of this press release and are, therefore, subject to change.
2023 revenues increased 29% to $9.1M from $7.0M in 2022, driven by increases in license fees (of $1.1M), hardware sales (of $0.5M); and services revenue (of $0.4M). Service revenue benefitted from custom services for new customer installations, Swivel Secure service fees, and conversions from on-premises deployments of PortalGuard to our PortalGuard IDaaS cloud platform. Hardware revenue benefitted from fourth quarter sales to an international defense agency in 2023. Likewise, Q4’23 revenue grew 26% over Q4’22, also driven by the aforementioned hardware sales to an international defense agency.
The Company took a $2.8M reserve on inventory due to slow moving inventory purchased for large projects in Nigeria in Q4’23. This reserve was included in cost of hardware, which caused a decline in gross profit to $3.3M in 2023, from $4.6M in 2022 and a decline in gross margin to 36.5% in 2023 from 65.2% in 2022. BIO-key continues to explore opportunities to sell the product, including other markets, to convert inventories to cash.
In terms of operating expenses, Selling, general and administrative costs were $7.3M in 2023, representing a 22% decrease from 2022. The decrease included lower sales and marketing expenses, including personnel and related benefits and outside services expenses. Research, development and engineering expenses also declined by $0.9M or 26% to $2.4M, due to reductions in personnel, related benefits and outside services expenses.
On a preliminary basis, reflecting higher revenue and lower operating costs, BIO-key significantly trimmed its 2023 net loss 48% to $(6.2M), or $(11.45) per share, from $(12.2M), or $(27.26) per share, in 2022, even after including the $2.8 million reserve on inventory. Likewise, in Q4’23 BIO-key reduced its net loss more than 40% to $(4.1M), or $(5.54) per share, from $(6.7M), or $(14.58) per share in 2023.
Preliminary Balance Sheet
At December 31, 2023, BIO-key had current assets of $5.3M, including $0.5M of cash and cash equivalents, $3.2M of accounts receivable and amounts due from factor, and $1.2M of inventory.
Conference Call Details
Date / Time: Tuesday, April 2nd at 10 a.m. ET
Call Dial In #: 1-877-418-5460 U.S. or 1-412-717-9594 Int’l
Live Webcast / Replay: Webcast & Replay Link – Available for 3 months.
Audio Replay: 1-877-344-7529 U.S. or 1-412-317-0088 Int’l; code 6114035
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
Engage with BIO-key
Facebook – Corporate: https://www.facebook.com/BIOkeyInternational/
LinkedIn – Corporate: https://www.linkedin.com/company/bio-key-international
Twitter – Corporate: @BIOkeyIntl
Twitter – Investors: @BIO_keyIR
StockTwits: BIO_keyIR
Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI @Bacchus-9800
wickw50
6 months ago
NJ-based Authentication Solutions Provider BIO-key to Review Growth Strategy and Progress at The Microcap Conf. in Atlantic City – Presentation Wed., Jan 31 at 10:50am ET
ATLANTIC CITY, N.J. and HOLMDEL, N.J., Jan. 16, 2024 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (NASDAQ: BKYI), an innovative provider of passwordless, phoneless, and token-less Identity and Access Management solutions leveraging proprietary biometric technology, will present and meet with investors at DealFlow Event’s Microcap Conference, Wed., January 31, 2024 at Caesars Atlantic City Hotel & Casino in New Jersey.
CEO Mike DePasquale will present on January 31st at 10:50am ET, on Track 5, and will be available for one-on-one meetings throughout the conference..
Registration Information:
Click here: https://themicrocapconference.com/tickets/ to register and attend the Microcap Conference. All investors are welcome to register and attend.
Mr. DePasquale commented, “Over the past two years we have built out an expanded base of solutions and a global footprint that is enabled by our channel alliance partners. Our business model has started to deliver the results we believe make BIO-key an exciting company and investment. The Microcap Conference provides a convenient, cost-effective opportunity for us to begin to reintroduce our company to investors.
Operating Highlights
“Our reported revenues grew 39% to $8.6M in the 12 months ended Sept 30, 2023, enabling a significant increase in gross profit. Importantly, we have recast our business into a largely recurring software as a service (SaaS) and services revenue model, which means that we start each year from an expanded base of contract activity, providing both stability and transparency for our growth and bottom-line performance.
“We have also made good progress in trimming overhead, contributing to reduced losses in recent periods, and we expect to benefit from these efforts as we move forward. From a valuation standpoint, we have approximately 1.937M common stock equivalents outstanding for a market cap of approximately $4M based on Friday’s closing price of $2.03. With an annual revenue run rate of nearly $9M and expected continued growth in revenues and improvement in our bottom-line performance, we are excited to present to prospective investors.”
Registration Information:
Click here: https://themicrocapconference.com/tickets/ to register and attend the Microcap Conference. All investors are welcome to register and attend.
About The Microcap Conference and DealFlow Events
Organized by DealFlow Events, the 3-day event at Caesars Atlantic City Hotel & Casino will feature company presentations from publicly-traded microcap businesses and qualified private companies across healthcare, technology, financial services, energy, and other high-growth sectors. Keynote presentations and panel discussions led by industry experts will provide insights into trading strategies, regulations, risk assessment and mitigation, tax issues, and other topics critical to the microcap community. Unlike many other microcap events, no invitation is required. The conference facilitates extensive networking through 1-on-1 investor meetings, interactive sessions as well as entertainment, including a poker tournament and an exclusive concert with Soul Asylum.
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over thirty-five million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
Engage with BIO-key
Facebook – Corporate: https://www.facebook.com/BIOkeyInternational/
LinkedIn – Corporate: https://www.linkedin.com/company/bio-key-international
Twitter – Corporate: @BIOkeyIntl
Twitter – Investors: @BIO_keyIR
StockTwits: BIO_keyIR
Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI @Bacchus-9800
wickw50
7 months ago
Portugal’s Judiciary Police Enhances Security Infrastructure via Securnet and BIO-key
HOLMDEL, N.J. and LISBON, Portugal, Jan. 02, 2024 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (NASDAQ: BKYI), an innovative provider of workforce and customer Identity and Access Management (IAM) featuring passwordless, phoneless and token-less Identity-Bound Biometric (IBB) authentication solutions, today announced the Judiciary Police of Portugal (Polícia Judiciária) has significantly enhanced its operational security by implementing a robust Virtual Private Network (VPN) secured by BIO-key Swivel Secure authentication technology AuthControl Sentry. The deployment was sourced through BIO-key’s strategic collaboration with Securnet.
The VPN, along with an advanced Access Control Device system provided by Securnet, significantly augments the security and efficiency of communications and data access for the Judiciary Police. The technologies support key infrastructure supporting the relentless fight against organized crime, terrorism, drug trafficking, corruption, as well as economic and financial crimes.
“The Judiciary Police’s commitment to advanced technological solutions is commendable,” said Alex Rocha, Managing Director of BIO-key Europe. “Our involvement in this project, through our partnership with Securnet, demonstrates the adaptability and strength of our security solutions in high-stakes environments. This collaboration is a prime example of how cutting-edge technology can empower law enforcement agencies to perform their critical duties more securely and effectively.”
“The implementation of these security solutions, facilitated by our collaboration with Securnet was pivotal in maintaining the integrity of communications. These technologies play a vital role in safeguarding information systems and operations, which are essential in the fight against sophisticated criminal networks.”
About Securnet (www.securnet.pt)
Founded in 2002 with the mission of putting organizations “Always online, Always Secure”, Securnet has evolved into a complete provider of IT infrastructure solutions and services. The excellence of Securnet solutions and services is widely recognized by customers and manufacturers as generators of value, innovation and competitiveness. Betting on transparent, trustworthy and long-term relationships, supported by an experienced, efficient, specialized and certified technical team, Securnet is a preferred supplier and technological partner of an increasing number of customers across a diverse range of sectors and industries.
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over thirty-five million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.
About the Judiciary Police (www.policiajudiciaria.pt)
The Polícia Judiciária (PJ; English: Judiciary Police) is the national criminal investigation police agency of Portugal, focused in fighting serious crimes, including homicides, kidnapping, organized crime, terrorism, illegal drug trade, corruption, cybercrime and financial crime. It is integrated into the Ministry of Justice, but operates under the supervision of the Public Ministry.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital to satisfy working capital needs; our ability to continue as a going concern; our ability to regain compliance with the Nasdaq continued listing standards, market conditions and the impact of the reverse stock split on the trading price of our common stock; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
Engage with BIO-key
Facebook – Corporate: https://www.facebook.com/BIOkeyInternational/
LinkedIn – Corporate: https://www.linkedin.com/company/bio-key-international
Twitter – Corporate: @BIOkeyIntl
Twitter – Investors: @BIO_keyIR
StockTwits: BIO_keyIR
Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI @Bacchus-9800