Customer Base and Market Expansion - As of December 31, 2024, BIO-key has over 600 customers across multiple industries using its identity and access management solutions [19]. - The acquisition of PistolStar on June 30, 2020, expanded BIO-key's customer base in the state and local government and higher education sectors [22]. - The company expanded its operations into Europe, Africa, and the Middle East by acquiring Swivel Secure Europe, serving over 300 customers in the region [23]. - The collaboration with Fiber Food Systems, Inc. aims to explore identity access management use cases in the food industry, potentially creating new commercial opportunities [24]. - The PortalGuard IAM product line has hundreds of active customers and is being enhanced with additional capabilities [62]. - The company has partnered with over 85 resellers and distribution partners to expand its market reach [43]. Technology and Product Offerings - BIO-key's PortalGuard IDaaS provides 17 multi-factor authentication options, including biometric methods like fingerprint and facial recognition [27]. - BIO-key's biometric technology is utilized in large-scale identity projects, including government ID initiatives and healthcare organizations [39]. - The company is a Microsoft Partner, with its fingerprint scanners qualified to support Windows Hello and Windows Hello for Business [40]. - BIO-key's WEB-key platform supports over 30 fingerprint scanners interchangeably, enhancing its scalability for government agencies [16]. - The company’s biometric authentication process addresses gaps in existing IAM technology, particularly in user authentication and account sharing [41]. - The company’s intellectual property includes numerous patents related to biometric technology, with some expiring between 2025 and 2039 [47][48][52][57]. - The company is actively involved in industry privacy workgroups to influence biometric privacy regulations and ensure compliance [71]. Financial Performance and Challenges - The company generated approximately $7.0 million in revenue during 2024, which is below the average monthly requirement of $812,000 [84]. - The company has a history of significant losses and negative cash flow, raising substantial doubt about its ability to continue as a going concern [81]. - Total revenue decreased by $825,334 or 11% to $6,929,571 in 2024 compared to $7,754,905 in 2023, primarily due to the exit from the distribution agreement with Swivel Secure Limited [169]. - License revenue increased by $847,360 or 20% to $5,189,370 in 2024, driven by expansions from several long-term customers and new deployments [171]. - Service revenue decreased by 50% to $1,108,506 in 2024, with recurring service revenue down 15% due to the loss of a large customer service agreement [168][170]. - Hardware sales dropped by $562,315 or 47% to $631,695 in 2024, largely due to a lack of repeat sales to an international defense agency [171]. - Net loss improved to $(4,300,692) in 2024 from $(8,521,837) in 2023, reflecting increased gross profit and lower operating expenses [179]. - Monthly operational cash requirement is approximately $812,000, which was not consistently met through revenue generation [192]. Operational Risks and Regulatory Challenges - The company has identified a material weakness in internal control over financial reporting, leading to a restatement of financial statements for 2023 [78]. - The company faces intense competition from both established biometric companies and startups, which may hinder its ability to keep pace with technological changes [93]. - The company is subject to multiple regulatory challenges, including privacy, security, and data use regulations, which could adversely affect its operations [105]. - Cybersecurity threats, including ransomware and sophisticated attacks, pose significant risks to the integrity of the company's systems and customer data [106]. - Compliance with evolving privacy and data protection laws is critical, as failures could lead to significant liabilities and loss of customer trust [110]. - The company faces risks in international expansion due to potential challenges in protecting its intellectual property rights globally [102]. Strategic Direction and Future Outlook - The company aims to pursue strategic acquisitions in the IAM space to support growth and enhance earnings [42]. - The company plans to expand its role in the IAM market and continue offering a suite of authentication options to enhance customer experience [160]. - Strategic acquisitions in the IAM space are being pursued to enter new market verticals and synergize with existing operations [163]. - The company expects increased demand for security solutions in government services and highly-regulated industries, driven by heightened security and privacy requirements [161]. Governance and Leadership - Michael W. DePasquale has been the CEO since January 3, 2003, and has over 30 years of executive management experience in the technology sector [211]. - Cecilia C. Welch serves as the Chief Financial Officer, indicating a strong financial leadership within the company [210]. - The company has a diverse board of directors with extensive experience in various industries, enhancing its strategic decision-making capabilities [210]. - The board includes members with backgrounds in software, professional services, and biometric industries, which aligns with the company's focus [211]. - The company is actively involved in the International Biometrics and Identification Industry Association, reflecting its commitment to industry standards and innovation [211].

BIO-key and Arrow ECS Iberia will officially present the partnership at the Arrow ECS Event, Wednesday, April 2, 2025, at MEO ARENA in Lisbon, Portugal. Arrow ECS Iberia expects to host over 800 partners, technology leaders, and cybersecurity experts, providing a unique opportunity to showcase BIO-key's advanced IAM solutions to a large audience. BIO-key will have a dedicated booth for live demonstrations of its solutions, including Multi-factor Authentication (MFA), Single Sign-On (SSO), and Identity-Bound ...

Financial Data and Key Metrics Changes - The company reported a revenue decline of 11% to $6.9 million in 2024, primarily due to the exit from a low-margin service agreement [10][25] - High-margin software license fee revenue increased by 20% to $5.2 million in 2024, contributing to an adjusted gross margin of 78%, up from 64% in 2023 [10][30] - Operating expenses were reduced by 6% to $9.7 million in 2024, leading to a net loss improvement to $4.3 million or $2.85 per share, compared to a net loss of $8.5 million or $21.21 per share in 2023 [11][30] Business Line Data and Key Metrics Changes - License fee revenue in Q4 2024 increased by 77% to $1 million, while lower-margin services revenue decreased by 28% to $344,000 [27] - Hardware revenue declined significantly by 88% to $94,000 in Q4 2024, reflecting a lack of large expansion orders compared to the previous year [27][30] Market Data and Key Metrics Changes - The company is seeing increased demand for its passwordless, phoneless, and tokenless authentication solutions, particularly in the Middle East and Asia [14][20] - A notable contract was secured with a foreign financial services client worth $910,000, enhancing the company's presence in the financial sector [15] Company Strategy and Development Direction - The company has exited low-margin software and services relationships to focus on core solutions like PortalGuard IAM and identity-bound biometrics, which offer higher gross margins [9][10] - There is a strategic focus on expanding into emerging markets, including IoT solutions and partnerships with innovative technology developers [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing encouraging order activity and customer interest in their solutions [12][20] - The company anticipates a return to growth and improved profitability in 2025, with a focus on managing operating costs and investing in R&D [23][49] Other Important Information - The company reduced its outstanding debt to approximately $730,000 from $1.5 million at the end of 2024, strengthening its financial position [7] - The company launched PortalGuard IDAS on the AWS marketplace, enhancing its subscription-based business model [22] Q&A Session Summary Question: Clarification on 10-K filing and restatements - The company confirmed that the 10-K is expected to be filed on Monday and that there are no new restatements beyond those previously disclosed [34][35] Question: Changes in revenue expectations for 2024 - Management explained that the exit from the Swivel Secure business resulted in a revenue delta of about $800,000 to $900,000 for the full fiscal year, impacting overall revenue expectations [39][41] Question: Outlook for hardware and services revenue - Management indicated that growth is expected in both hardware and services revenue in 2025, with hardware sales becoming more integrated into contracts [55] Question: Details on the $910,000 contract - A significant portion of the $910,000 contract will be recognized in Q1 2025, with about $250,000 recognized in Q4 2024 [57] Question: Update on Nigerian ID plans - Management noted ongoing discussions with the World Bank regarding ID plans in Nigeria, with potential for future sales of hardware [68][72]

Revenue Performance - BIO-key's 2024 revenues decreased approximately 11% to $6.9M from $7.8M in 2023, primarily due to the exit from a low-margin services relationship with Swivel Secure[12] - License fee revenue increased 20% to $5.2M in 2024 compared to $4.3M in 2023, while service fees declined 50% to $1.1M[12] - Total revenues for Q4 2024 were $1,462,278, a decrease of 19.9% compared to $1,825,101 in Q4 2023[23] - License fees increased significantly to $1,023,701 in Q4 2024, up 77.1% from $577,669 in Q4 2023[23] Profitability and Loss - BIO-key's net loss improved to $4.3M, or ($2.10) per share, in 2024, compared to a net loss of $8.7M, or ($15.21) per share, in 2023[16] - The gross profit grew to $5.6M in 2024 from $1.4M in 2023, benefiting from higher-margin license sales and a reduction in lower-margin services[14] - Operating loss narrowed to $1,427,310 in Q4 2024 from $2,723,834 in Q4 2023, indicating better cost management[23] - The company reported a net loss of $4,323,690 for the year ended December 31, 2024, an improvement from a net loss of $8,521,837 in 2023[23] - Basic and diluted loss per common share improved to $2.10 in 2024 from $15.21 in 2023, reflecting reduced losses[23] Expenses and Cost Management - Operating expenses were reduced by $606,409 to $9.7M in 2024 from $10.3M in 2023, with SG&A costs decreasing by $722,563[15] - The company experienced a net cash used for operating activities of $2,914,072 in 2024, compared to $3,793,456 in 2023, showing improved cash flow management[31] Assets and Equity - Cash and cash equivalents at the end of 2024 were $437,604, down from $511,400 at the end of 2023[27] - Total assets increased to $8,615,560 in 2024, compared to $4,517,035 in 2023, reflecting growth in the company's asset base[27] - Total stockholders' equity increased to $3,749,033 in 2024 from $1,063,565 in 2023, indicating a stronger financial position[28] Strategic Partnerships and Market Presence - The company secured a $910K contract with a financial services client to implement biometric identification technology, with over 25M end-users enrolled[6] - BIO-key partnered with California Ed Tech JPA to provide solutions to 195 member institutions serving over 2.6M students[5] - The company has established a presence in education across over 100 institutions serving over 4M end users, with recent migrations to PortalGuard IDaaS[9] - A strategic collaboration with Fiber Food Systems was announced to explore IAM use cases across the food industry, alongside an equity exchange with Boumarang, Inc.[10] Future Outlook - BIO-key is optimistic about 2025, citing increasing interest in biometric solutions and a focus on higher-margin offerings[11]

HOLMDEL, N.J., March 27, 2025 (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 fourth quarter (Q4’24) and year ended December 31, 2024 (2024). BIO-key’s 2023 results, which were restated and filed with the Company’s 2023 Form 10-K, are reflected in this release for comparison p ...

Core Insights - BIO-key International, Inc. has successfully deployed a comprehensive suite of biometric-based Identity and Access Management (IAM) solutions for a new International Defense Agency customer, completing the initial deployment in just four days, highlighting efficiency and collaboration [1][3] Company Overview - BIO-key is a leader in IAM and biometric authentication solutions, securing access for over 40 million users and offering diverse authentication factors including phoneless, tokenless, and passwordless options [4] Solution Features - The deployment includes PortalGuard On-Prem, WEB-key biometric software, FIPS-certified fingerprint scanners, and Passkey:YOU FIDO2 authentication, demonstrating high-security, passwordless, and phoneless authentication capabilities [2][7] Management Commentary - The International Managing Director emphasized the innovative thinking and strong partnerships that contributed to the rapid deployment, which enhances security while simplifying access for the customer [3] - The Technical Manager noted that completing such a large-scale project in four days showcases the seamless integration capabilities of BIO-key's IAM solutions [3]

Company Overview - BIO-key International, Inc. is an innovative provider of Identity and Access Management and Identity-Bound Biometric solutions, securing access for over forty million users [3]. Upcoming Events - The company will host its Q4 2024 investor call on Thursday, March 27th at 10 a.m. ET, with results released before the market opens on the same day [1]. - The conference call will be led by Mike DePasquale, Chairman & CEO, and Cecilia Welch, CFO [1]. Conference Call Details - Call Dial In Numbers: 1-877-418-5460 (U.S.) or 1-412-717-9594 (International) [2]. - Live Webcast and Replay will be available for 3 months [2]. - Audio Replay Numbers: 1-877-344-7529 (U.S.) or 1-412-317-0088 (International); code 6747311 [2]. Product Offering - BIO-key offers a multi-factor identity and access management (IAM) software that includes phoneless, tokenless, and passwordless biometric options, providing cost-effective and secure access to computers, information, applications, and high-value transactions [3].

HOLMDEL, N.J., March 20, 2025 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), an innovative provider of Identity and Access Management and Identity-Bound Biometric solutions, will host its Q4 2024 investor call Thursday, March 27th at 10 a.m. ET. Results will be released before the market opens on Thursday. Mike DePasquale, Chairman & CEO and Cecilia Welch, CFO will lead the conference call and Q&A session. Conference Call Details Date / Time:Thursday, March 27th at 10 a.m. ETCall Dial In #: ...

Core Insights - BIO-key International, Inc. has partnered with California's Education Technology Joint Powers Authority (Ed Tech JPA) to provide its PortalGuard identity management solution, which offers secure multi-factor authentication without the need for phones or tokens [1][5][6] Group 1: Partnership and Product Offering - The partnership allows Ed Tech JPA's 195 member schools, serving over 2.6 million students, to access BIO-key's PortalGuard platform, which is now an approved identity management solution following a rigorous review process [1][2][5] - PortalGuard provides a comprehensive identity provider (IdP) and multi-factor authentication solution, enabling seamless login experiences across multiple applications while protecting sensitive educational data [5][6] Group 2: Competitive Advantages - PortalGuard's phone-less and tokenless authentication options are particularly relevant given California's regulatory environment, including the Phone-Free Schools Act, which limits smartphone use in schools [4][5] - The solution offers up to seventeen authentication methods, including privacy-compliant biometrics and challenge-response options, enhancing security while providing flexible login choices [5][6] Group 3: Industry Context - The Ed Tech JPA centralizes software procurement for member institutions, ensuring compliance with data privacy laws and facilitating access to high-quality digital products [2][3] - BIO-key has a long-standing track record in providing enterprise-grade IAM solutions tailored to the unique needs of educational institutions, having previously partnered with California Community Colleges [6][8]

Core Insights - BIO-key International, Inc. has been awarded a contract by the State of Wyoming Department of Education to implement its PortalGuard IDaaS platform for up to 20,000 staff members, enhancing security and user experience through Multi-Factor Authentication (MFA) and Single Sign-On (SSO) [1][2] Group 1: Contract and Implementation - The Wyoming Department of Education sought a comprehensive Identity and Access Management (IAM) solution to manage multiple account credentials and reduce IT support costs, particularly for password resets [2] - The PortalGuard deployment will improve the phish-resistance and resiliency of their systems against cyberattacks through advanced MFA options [2] Group 2: Features and Benefits - PortalGuard's SSO feature allows users to access multiple applications with one set of strong credentials, streamlining user access [3] - The strong MFA provided by PortalGuard adds an extra layer of protection against phishing and unauthorized access [3] - The customizable Account Dashboard offers users a centralized interface for managing authentication preferences, while the Application Launchpad provides one-click access to WDE digital resources and applications [3] - The customizable Administrator Dashboard enhances IT teams' control, visibility, and reporting of user access patterns [3] Group 3: Expected Outcomes - The implementation of PortalGuard IDaaS is expected to improve overall security posture, provide a superior user experience, streamline access procedures, and reduce IT support calls and password reset requests, leading to lower operational costs [4] - BIO-key's President expressed confidence that PortalGuard IDaaS will deliver significant value to the WDE, as it has for numerous governmental, educational, and commercial entities [5]