BIO-key(BKYI)

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BIO-key(BKYI) - 2022 Q2 - Quarterly Report
2022-08-16 16:00
Financial Performance - Total revenues for the three months ended June 30, 2022, were $1,947,115, representing a significant increase from $992,090 for the same period in 2021, reflecting a growth of approximately 96.5%[9] - The company reported a net loss of $1,718,957 for the three months ended June 30, 2022, compared to a net loss of $1,161,683 for the same period in 2021, indicating a deterioration in financial performance[9] - The net loss for the six months ended June 30, 2022, was $2,718,360, compared to a net loss of $2,013,114 for the same period in 2021, indicating a worsening financial performance year-over-year[15] - The company reported a comprehensive loss of $1,884,840 for the three months ended June 30, 2022, compared to a comprehensive loss of $1,161,683 for the same period in 2021, indicating a significant increase in losses[9] Assets and Liabilities - Cash and cash equivalents decreased to $4,893,042 as of June 30, 2022, down from $7,754,046 as of December 31, 2021, representing a decline of approximately 37.5%[7] - Total current assets decreased to $12,348,986 as of June 30, 2022, compared to $14,012,873 as of December 31, 2021, a reduction of about 11.9%[7] - Total liabilities increased to $4,005,366 as of June 30, 2022, up from $2,153,586 as of December 31, 2021, reflecting an increase of approximately 85.8%[7] - As of June 30, 2022, the total stockholders' equity was $13,619,539, a decrease from $15,381,555 as of March 31, 2022, reflecting a net loss of $1,718,957 during the quarter[10] Revenue Recognition and Deferred Revenue - The Company applies ASC 606 for revenue recognition, which includes identifying contracts, performance obligations, and recognizing revenue as obligations are satisfied[32][41] - Deferred revenue represents the Company's remaining performance obligations related to prepaid support and maintenance, expected to be recognized over one to five years[46] - Deferred revenue as of June 30, 2022, was approximately $660,000, an increase from $633,000 on December 31, 2021[47] - Revenue recognized from deferred revenue for the three and six months ended June 30, 2022, was approximately $153,000 and $387,000, respectively[47] Operating Expenses - Operating expenses for the three months ended June 30, 2022, totaled $2,790,656, compared to $1,865,036 for the same period in 2021, indicating an increase of approximately 49.4%[9] - The company incurred $1,067,372 in goodwill from the acquisition of Swivel Secure, along with $762,860 in intangible assets, highlighting significant investment in growth through acquisition[18] - Share-based compensation for employees and consultants amounted to $153,370 during the same period, reflecting ongoing investment in human capital[15] - Share-based compensation expenses for the three months ended June 30, 2022, totaled $83,699, compared to $41,123 for the same period in 2021[56] Acquisition and Goodwill - The acquisition of Swivel Secure was completed for a total purchase price consideration of $2,373,487, including a cash payment of $1,273,483 and common stock valued at $600,004[49][50] - The fair value of assets acquired in the Swivel Secure acquisition totaled $3,349,371, resulting in goodwill of $1,067,372[50] - The Company has not identified any impairment to goodwill as of the latest assessment[26] - The annual goodwill impairment test will be performed as of December 31st of each year[26] Cash Flow and Financial Management - The Company generated approximately $3,888,286 in revenue during the first half of 2022, which is below its average monthly requirement of approximately $814,000[31] - Cash and cash equivalents at the end of the period were $4,893,042, down from $7,754,046 at the beginning of the period, representing a net decrease of $2,861,004[15] - Accounts receivable decreased by $390,660, indicating potential challenges in cash flow management[15] - Accounts receivable as of June 30, 2022, was $2,302,847, significantly up from $1,234,411 on December 31, 2021[55] Tax and Regulatory Matters - The Company recorded no income tax expense for the three and six months ended June 30, 2022, due to an estimated annual effective tax rate of zero[96] - The Company has a full valuation allowance against its net deferred tax assets as of June 30, 2022, indicating uncertainty in realizing these assets[97] Customer Concentration - One customer accounted for 12% of revenue for the three months ended June 30, 2022, and one customer accounted for 14% for the six months ended June 30, 2022[94]
BIO-key(BKYI) - 2022 Q2 - Earnings Call Transcript
2022-08-12 20:01
BIO-key International, Inc. (NASDAQ:BKYI) Q2 2022 Earnings Conference Call August 12, 2022 10:00 AM ET Company Participants William Jones - Vice President, Catalyst Global LLC Michael DePasquale - Chief Executive Officer Alex Rocha - Managing Director, EMEA Cecilia Welch - Chief Financial Officer Conference Call Participants Jack Vander Aarde - Maxim Group LLC Operator Good morning, ladies and gentlemen. Thank you for standing by, and welcome to BIO-key International Second Quarter Conference Call. During m ...
BIO-key(BKYI) - 2022 Q1 - Quarterly Report
2022-05-22 16:00
Financial Performance - Total revenues for the three months ended March 31, 2022, were $1,941,171, representing an increase from $1,888,638 in the same period of 2021, a growth of approximately 2.8%[12] - Gross profit for the three months ended March 31, 2022, was $1,603,730, compared to $1,122,003 for the same period in 2021, indicating a significant increase of approximately 43%[12] - Operating loss for the three months ended March 31, 2022, was $(999,534), compared to $(836,046) for the same period in 2021, reflecting a deterioration in operating performance[12] - Net loss for the three months ended March 31, 2022, was $(999,403), compared to $(851,431) in the same period of 2021, representing an increase in net loss of approximately 17.4%[12] - Cash flow from operating activities showed a net cash used of $1,952,925, a decrease from $3,464,575 in the previous year[17] - The company generated approximately $5,114,000 in revenue during 2021, which is below its average monthly operational requirement of $814,000[31] Assets and Liabilities - Cash and cash equivalents as of March 31, 2022, were $5,801,121, down from $7,754,046 as of December 31, 2021, a decrease of approximately 25.2%[9] - Total current assets as of March 31, 2022, were $13,806,139, slightly down from $14,012,873 as of December 31, 2021, a decrease of about 1.5%[9] - Total liabilities increased to $4,021,432 as of March 31, 2022, from $2,153,586 as of December 31, 2021, an increase of approximately 86.8%[9] - Total stockholders' equity as of March 31, 2022, was $15,381,555, down from $15,615,455 as of December 31, 2021, a decrease of about 1.5%[9] - The company reported a significant increase in accounts payable, which rose to $175,341 from $65,165 year-over-year[17] - The company recorded an allowance for doubtful accounts of $213,785 as of March 31, 2022, remaining unchanged from December 31, 2021[54] Accounts Receivable and Revenue Recognition - The company reported an increase in accounts receivable, net, to $2,553,331 as of March 31, 2022, compared to $970,626 as of December 31, 2021, an increase of approximately 163%[9] - Accounts receivable as of March 31, 2022, totaled $2,817,116, significantly higher than $1,234,411 at December 31, 2021, marking an increase of approximately 128%[54] - The company recognized revenue of approximately $234,000 from deferred revenue during the three months ended March 31, 2022, compared to $305,000 in the same period of 2021[47] - Deferred revenue increased to approximately $854,000 as of March 31, 2022, compared to $633,000 at December 31, 2021, reflecting a growth of around 35%[47] Expenses - Research, development, and engineering expenses for the three months ended March 31, 2022, were $805,266, up from $441,651 in the same period of 2021, an increase of approximately 82.2%[12] - Share-based compensation expenses for the three months ended March 31, 2022, were $109,697, a decrease from $141,148 in the same period of 2021, reflecting a reduction of about 22%[55] - The company recorded a depreciation expense of $11,220 for the three months ended March 31, 2022, down from $25,115 in the same period of 2021[17] - Factoring fees incurred during the three months ended March 31, 2022, amounted to $18,727, compared to $13,347 in the same period of 2021, representing an increase of approximately 40%[56] Acquisitions - The company acquired Swivel Secure for a total purchase price of $1,379,589 in estimated intangible assets and $450,643 in estimated goodwill[19] - The company completed the acquisition of Swivel Secure Europe, SA for a total purchase price consideration of $2,373,487, including a cash payment of $1,273,483 and common stock valued at $600,004[49][50] - The earn-out from the acquisition of Swivel Secure is contingent upon generating $3,000,000 in revenue and $1,000,000 in operating profit during the earn-out period[49] Inventory and Operating Costs - As of March 31, 2022, total inventory increased to $4,956,472 from $4,940,660 as of December 31, 2021, with finished goods at $4,854,866[59] - The company recorded a total operating lease cost of $55,219 for the three months ended March 31, 2022, compared to $63,973 for the same period in 2021[73] - As of March 31, 2022, operating lease liabilities totaled $211,440, down from $264,162 as of December 31, 2021[73] Strategic Focus and Risks - The company acknowledges the presence of forward-looking statements in its quarterly report, which are subject to risks and uncertainties that may lead to actual results differing materially from those anticipated[94] - The company has a history of losses and limited revenue, which poses a risk to its future financial position[94] - The ability to raise additional capital is crucial for the company's ongoing operations and growth[94] - The company faces competition in the biometric technology and identity access management industries, impacting market acceptance of its products[94] - The ongoing COVID-19 pandemic has affected the company's business operations, sales cycles, and personnel[94] - The company is focused on expanding into Asia, Africa, and other foreign markets, which presents both opportunities and challenges[94] - Integration of operations and personnel from acquisitions, such as PistolStar and Swivel Secure, is a key strategic focus[94] - The company is monitoring the impact of geopolitical events, such as the hostilities in Ukraine, on its European customers[94] - Delays in product development could hinder the company's ability to execute its business strategy effectively[94] - The company does not undertake any obligation to revise forward-looking statements unless required by law[94]
BIO-key(BKYI) - 2022 Q1 - Earnings Call Transcript
2022-05-16 19:43
BIO-key International, Inc. (NASDAQ:BKYI) Q1 2022 Earnings Conference Call May 16, 2022 10:00 AM ET Company Participants Kimberly Johnson - Vice President, Product Mike DePasquale - Chairman and CEO Ceci Welch - CFO Conference Call Participants Jack Vander Aarde - Maxim Group Operator Good morning, ladies and gentlemen. Thank you for standing by, and welcome to BIO-key International's First Quarter 2022 Conference Call. During management's prepared remarks all participants will be a listen-only mode. Afterw ...
BIO-key(BKYI) - 2021 Q4 - Annual Report
2022-03-31 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.0001 par value per share BKYI Nasdaq Capital Market ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___ TO ___ COMMISSION FIL ...
BIO-key(BKYI) - 2021 Q4 - Earnings Call Transcript
2022-03-29 17:13
BIO-key International, Inc. (NASDAQ:BKYI) Q4 2021 Earnings Conference Call March 29, 2022 10:00 AM ET Company Participants Kimberly Biddings - Vice President of Product Mike DePasquale - Chairman and Chief Executive Officer Alex Rocha - President, BIO-key EMEA Ceci Welch - Chief Financial Officer Conference Call Participants Jack Vander Aarde - Maxim Group Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are des ...
BIO-key(BKYI) - 2021 Q4 - Earnings Call Presentation
2022-03-29 14:55
| --- | --- | |----------------------------------------------------------------------------------|-------| | | | | Identity & Access Management and IdentityBound Biometric Cybersecurity Solutions | | | March 2022 | | | www.BIO-key.com | | | | | | | | 2 Safe Harbor All statements contained herein 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," "anti ...
BIO-key(BKYI) - 2021 Q3 - Quarterly Report
2021-11-14 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT For the Transition Period from to Commission file number 1-13463 BIO-KEY INTERNATIONAL, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 41-1741861 (State or Other Jurisdiction of Incorporation of Organizati ...
BIO-key(BKYI) - 2021 Q2 - Earnings Call Transcript
2021-08-17 18:25
BIO-key International, Inc. (NASDAQ:BKYI) Q2 2021 Earnings Conference Call August 17, 2021 10:00 AM ET Company Participants Kimberly Johnson - VP, Product Marketing Michael DePasquale - Chairman and CEO Fred Corsentino - Chief Revenue Officer Cecilia Welch - Chief Financial Officer Conference Call Participants Jack Vander Aarde - Maxim Group Operator Good morning, ladies and gentlemen. And thank you for standing by and welcome to BIO-key International’s Second Quarter 2021 Conference Call. During management ...
BIO-key(BKYI) - 2021 Q2 - Quarterly Report
2021-08-15 16:00
[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements, management's discussion and analysis of financial condition, and disclosures on internal controls [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201%E2%80%94Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements, highlighting significant revenue growth, narrowed net losses, and strategic investments in inventory [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a comparative overview of the company's financial position at two distinct periods Balance Sheet Comparison (as of June 30, 2021 vs. December 31, 2020) | Financial Metric | June 30, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $11,479,691 | $16,993,096 | | Accounts receivable, net | $1,347,677 | $548,049 | | Inventory | $2,290,628 | $330,947 | | Total current assets | $17,292,416 | $18,941,873 | | TOTAL ASSETS | $20,943,710 | $22,520,572 | | **Liabilities & Equity** | | | | Total current liabilities | $2,211,252 | $1,876,303 | | TOTAL LIABILITIES | $2,444,662 | $2,185,453 | | TOTAL STOCKHOLDERS' EQUITY | $18,499,048 | $20,335,119 | - Key changes from year-end 2020 include a **$5.5 million** decrease in cash, a significant increase in accounts receivable and inventory, and a **$1.8 million** decrease in total stockholders' equity[7](index=7&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's financial performance, including revenue, gross profit, and net loss over specified periods Statement of Operations Highlights (Unaudited) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $992,090 | $307,142 | $2,880,728 | $829,627 | | Gross Profit | $752,521 | $158,688 | $1,874,524 | $556,910 | | Operating Loss | ($1,112,515) | ($1,371,813) | ($1,948,561) | ($2,691,879) | | Net Loss | ($1,161,683) | ($1,572,709) | ($2,013,114) | ($4,942,991) | | Basic & Diluted Loss Per Share | ($0.15) | ($0.60) | ($0.26) | ($2.24) | - Revenues for the second quarter and first six months of 2021 grew by **223%** and **247%** year-over-year, respectively. Net losses narrowed significantly in both periods, and loss per share improved accordingly[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary for the Six Months Ended June 30 (Unaudited) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used for operating activities | ($5,242,477) | ($1,969,640) | | Net cash used for investing activities | ($15,700) | ($1,906,042) | | Net cash (used in) provided by financing activities | ($255,228) | $4,683,333 | | **Net (Decrease) Increase in Cash** | **($5,513,405)** | **$807,651** | - The company experienced a significant net cash decrease of **$5.5 million** in the first six months of 2021, contrasted with a net cash increase in the same period of 2020. The cash outflow was primarily driven by operating activities, including a large investment in inventory and prepayments[24](index=24&type=chunk)[174](index=174&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations supporting the condensed consolidated financial statements - **Going Concern:** The company requires approximately **$735,000** per month for operations. While revenue has not consistently met this level, management believes its cash balance of **$11.5 million** as of June 30, 2021, is sufficient to fund operations for at least the next twelve months[43](index=43&type=chunk) - **PistolStar Acquisition:** The company acquired PistolStar, Inc. on June 30, 2020, for a total price of **$2.5 million**, consisting of **$2.0 million** in cash and a **$500,000** promissory note. The note was fully paid in January 2021[60](index=60&type=chunk)[62](index=62&type=chunk) - **Inventory and Prepayments:** As of June 30, 2021, the company had made significant investments in inventory (**$2.3 million**) and prepaid deposits for hardware (**$1.4 million**), primarily to support recently secured license contracts in Africa[72](index=72&type=chunk)[74](index=74&type=chunk) - **Major Customers:** The company has significant customer concentration. For the first six months of 2021, two customers accounted for **34%** of total revenue. As of June 30, 2021, two customers represented **47%** and **19%** of accounts receivable[121](index=121&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITIONS%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, attributing revenue growth to acquisitions and African projects, while addressing liquidity and strategic outlook [Overview and Strategic Outlook](index=28&type=section&id=Overview%20and%20Strategic%20Outlook) This section provides an overview of the company's business model and its key strategic initiatives for future growth - The company is an Identity Access Management (IAM) platform provider, offering solutions like PortalGuard® for enterprise, customer, and civil ID applications[129](index=129&type=chunk) - Key strategic developments include securing two large-scale identification project contracts in Africa valued at a combined **$75 million**, with initial purchase orders received in late 2020 and early 2021[138](index=138&type=chunk) - Primary growth strategies are focused on: (i) increased marketing into the IAM market, (ii) pursuing large-scale identification projects globally, and (iii) expanding the channel alliance program[141](index=141&type=chunk) [Results of Operations (Q2 2021 vs. Q2 2020)](index=30&type=section&id=Results%20of%20Operations%20(Q2%202021%20vs.%20Q2%202020)) This section analyzes the company's financial performance for the second quarter of 2021 compared to the prior year Q2 Revenue Comparison (in thousands) | Revenue Type | Q2 2021 | Q2 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Service | $286.6 | $229.5 | $57.1 | 25% | | License | $662.2 | $23.5 | $638.7 | 2,713% | | Hardware | $43.3 | $54.1 | ($10.8) | -20% | | **Total Revenue** | **$992.1** | **$307.1** | **$685.0** | **223%** | - The dramatic increase in Q2 revenue was driven by a **2,713%** surge in license revenue, largely from PistolStar software and cloud migrations, particularly in the higher education market[151](index=151&type=chunk) - Selling, general and administrative (SG&A) expenses increased **13%** to **$1.37 million**, while Research, development and engineering (R&D) costs rose **54%** to **$491,000**, mainly due to costs associated with the PistolStar acquisition and new product development[154](index=154&type=chunk)[155](index=155&type=chunk) [Results of Operations (H1 2021 vs. H1 2020)](index=34&type=section&id=Results%20of%20Operations%20(H1%202021%20vs.%20H1%202020)) This section analyzes the company's financial performance for the first half of 2021 compared to the prior year H1 Revenue Comparison (in thousands) | Revenue Type | H1 2021 | H1 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Service | $666.7 | $437.0 | $229.7 | 53% | | License | $1,141.2 | $258.9 | $882.3 | 341% | | Hardware | $1,072.9 | $133.7 | $939.2 | 702% | | **Total Revenue** | **$2,880.7** | **$829.6** | **$2,051.1** | **247%** | - The **702%** increase in hardware sales during the first half of 2021 was primarily attributable to sales in Nigeria for an international government agency[166](index=166&type=chunk) - Operating expenses increased moderately, with SG&A up **11%** and R&D up **42%**, reflecting the integration of PistolStar and investments in marketing and personnel[168](index=168&type=chunk)[170](index=170&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, and ability to meet its financial obligations - Cash and cash equivalents decreased from **$17.0 million** at Dec 31, 2020, to **$11.5 million** at June 30, 2021[180](index=180&type=chunk) - Net cash used in operations for H1 2021 was approximately **$5.2 million**, largely due to a **$4.3 million** use of cash for working capital, including a **$4 million** investment in inventory and deposits to support African contracts[173](index=173&type=chunk)[174](index=174&type=chunk)[179](index=179&type=chunk) - The company requires approximately **$735,000** per month to operate. Despite not consistently achieving this through revenue, management believes current cash reserves are sufficient for the next twelve months[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management confirms the effectiveness of disclosure controls and procedures with no material changes to internal controls during the quarter - Based on an evaluation as of June 30, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[185](index=185&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[186](index=186&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes additional information such as exhibits filed with the report [Item 6. Exhibits](index=39&type=section&id=Item%206%E2%80%94Exhibits.) This section lists the exhibits filed with the Form 10-Q, including required certifications and financial data files - The exhibits filed include certifications by the CEO and CFO as required by Rule 13a-15(f) and 18 U.S.C. Section 1350, along with Inline XBRL financial data files[188](index=188&type=chunk)