Workflow
BIO-key(BKYI)
icon
Search documents
BIO-key International (BKYI) Investor Presentation - Slideshow
2019-09-17 04:35
Nasdaq: BKYI | --- | --- | |----------------------------------|-------| | | | | Biometric Security Solutions for | | | Convenient ID & Authentication | | | | | | | | | | | Safe Harbor Language All statements contained in this presentation 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 ...
BIO-key(BKYI) - 2019 Q2 - Earnings Call Transcript
2019-08-15 17:08
Financial Data and Key Metrics Changes - Q2 2019 revenue declined slightly to approximately $728,000, a decrease of 2.7% compared to $748,000 in Q2 2018, primarily due to lower software license fees and service revenues [20] - Software license revenue decreased by 61% to $60,000 in Q2 2019 from $154,000 in Q2 2018, attributed to the transition to a SaaS model [20] - Hardware sales increased by 26% to $436,000 from $345,000 in Q2 2018, driven by a large fingerprint reader order and new customer deployments [21] - Q2 2019 net loss improved to $1.4 million or minus $0.10 per basic share compared to $1.7 million or minus $0.15 per basic share in Q2 2018 [22] Business Line Data and Key Metrics Changes - Service revenues decreased by 7% to $232,000 in Q2 2019 compared to $249,000 in Q2 2018, mainly due to a decline in nonrecurring service revenues for custom projects [20] - The transition to a SaaS model is expected to create more steady and predictable recurring revenue streams, although it reduces upfront revenue opportunities [11][20] Market Data and Key Metrics Changes - The financial services sector is identified as having the greatest sales prospects, driven by compliance and security requirements [15] - There is increasing interest in biometric authentication technologies, particularly from organizations in sensitive environments such as banks and financial services [8] Company Strategy and Development Direction - The company is transitioning to a SaaS model, recognizing most software agreements on a recurring yearly subscription basis, which is expected to enhance revenue predictability [7][11] - BIO-key is exploring small tuck-in acquisitions to expand its technology and product portfolio [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for 2019 and future years, despite challenges such as delays in software license payments from a Chinese customer due to trade tensions [8][12] - The company revised its 2019 revenue guidance to a range of $6 million to $12 million, depending on the receipt of software license payments [12][13] Other Important Information - The company completed a convertible note financing in July, raising $2.55 million in gross proceeds to support financial needs while awaiting software license payments [12][23] - Gross margin in Q2 2019 was 7%, compared to negative 38% in Q2 2018, primarily due to a higher level of non-cash software license amortization expense in the prior year [21] Q&A Session Summary Question: What would have been the year-over-year trend for recurring service revenue if renewals were not pending? - Management indicated that it would have trended up, as they continued to receive more orders and renewals [25] Question: Can you provide some color on why these renewals are pending? - The pending renewals are attributed to the timing of billing and collecting cash [26] Question: What are the targets for your salesforce in terms of net new ARR per quarter or per rep? - There are no specific targets; the company is working on quarter-based plans for sales reps [30] Question: Can you provide a breakdown of revenue distribution between hardware and software? - Management suggested a potential split of 50:50 to 60:40 between hardware and software, depending on the mix of new and existing accounts [36][37]
BIO-key(BKYI) - 2019 Q2 - Quarterly Report
2019-08-14 21:01
U.S. 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 June 30, 2019 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 Organization) (IRS Emplo ...
BIO-key(BKYI) - 2019 Q1 - Earnings Call Transcript
2019-05-16 17:38
BIO-key International, Inc. (NASDAQ:BKYI) Q1 2019 Earnings Conference Call May 16, 2019 10:00 AM ET Company Participants Scott Mahnken - Vice President, Marketing Mike DePasquale - Chairman and Chief Executive Officer Ceci Welch - Chief Financial Officer Fred Corsentino - Chief Revenue Officer Conference Call Participants Nehal Chokshi - Maxim group Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to BIO-key International's First Quarter 2019 Conference Call. During the presen ...
BIO-key(BKYI) - 2019 Q1 - Quarterly Report
2019-05-15 21:03
U.S. 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 March 31, 2019 ☐ 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 Organization) (IRS Employe ...
BIO-key(BKYI) - 2018 Q4 - Earnings Call Transcript
2019-04-03 05:07
BIO-key International, Inc. (NASDAQ:BKYI) Q4 2018 Earnings Conference Call April 2, 2019 10:00 AM ET Company Participants Scott Mahnken - Vice President, Marketing Mike DePasquale - Chairman and Chief Executive Officer Fred Corsentino - Chief Revenue Officer Ceci Welch - Chief Financial Officer Conference Call Participants Josh Goltry - Maxim Group Richard Pew - Richard Pew Investment Counsel Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to BIO-key International's Fourth Qu ...
BIO-key(BKYI) - 2018 Q4 - Annual Report
2019-04-01 21:06
Part I [Business](index=5&type=section&id=Item%201.%20Business) BIO-key develops and markets advanced fingerprint biometric identification technologies, software, and hardware for diverse markets - The company develops and markets advanced fingerprint biometric identification technologies, along with related hardware and software solutions, targeting commercial, government, and consumer markets[14](index=14&type=chunk)[15](index=15&type=chunk) - Key software products include the ID Director™ suite for single sign-on integration, the Vector Segment Technology™ (VST) SDK for developers, and the WEB-key® platform for secure cloud-based authentication[30](index=30&type=chunk)[34](index=34&type=chunk)[41](index=41&type=chunk) - The company markets a range of hardware products, including USB finger scanners (SideSwipe™, EcoID™, SideTouch™) compatible with Microsoft Windows Hello, and biometric-enabled locks (TouchLock™)[16](index=16&type=chunk)[21](index=21&type=chunk)[38](index=38&type=chunk) - BIO-key holds numerous U.S. patents for its core technologies, including VST™, a biometric authentication security framework, and image processing methods, with expiration dates ranging from 2022 to 2035[45](index=45&type=chunk)[46](index=46&type=chunk)[55](index=55&type=chunk) Research and Development Expenses | Year | R&D Expense ($) | | :--- | :--- | | 2018 | $1,415,401 | | 2017 | $1,659,875 | [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) Significant risks include going concern doubt, financing needs, limited market acceptance, and intense competition - The company's independent registered public accounting firm has expressed substantial doubt about its ability to continue as a going concern due to a history of losses and limited revenue[86](index=86&type=chunk)[87](index=87&type=chunk) - As of December 31, 2018, the company had an accumulated deficit of approximately **$75.1 million** and requires about **$537,000 per month** for operations, a level it has not consistently achieved through revenue[89](index=89&type=chunk)[119](index=119&type=chunk) - The market for biometric technology has limited acceptance, and the company's success depends on its adoption over traditional security methods like passwords and tokens[91](index=91&type=chunk)[92](index=92&type=chunk) - The company faces intense competition from established biometric companies and providers of traditional access control, many of whom have substantially greater financial and marketing resources[102](index=102&type=chunk)[103](index=103&type=chunk) - A substantial number of outstanding securities (approximately **5.6 million shares** reserved for options and warrants) could be converted into common stock, leading to significant dilution for existing shareholders[128](index=128&type=chunk)[129](index=129&type=chunk) - The company's common stock may be delisted from Nasdaq if it fails to meet the minimum closing bid price requirement of **$1.00 per share**, which could negatively impact liquidity and access to capital[134](index=134&type=chunk)[135](index=135&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) The company leases all its operational facilities across the U.S., Hong Kong, and China - The company leases all its operational facilities, with locations in the U.S. (Minnesota and New Jersey) and internationally (Hong Kong and China)[145](index=145&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any pending litigation - The company is not currently involved in any pending litigation[146](index=146&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - Not applicable[147](index=147&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Common stock trades on Nasdaq; the company has 140 stockholders and does not pay cash dividends - Common stock trades on the Nasdaq Capital Market under the symbol "BKYI"[150](index=150&type=chunk) - As of March 27, 2019, there were 140 stockholders of record[151](index=151&type=chunk) - The company has not paid and does not intend to pay cash dividends in the foreseeable future[152](index=152&type=chunk) [Selected Financial Data](index=22&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable as the company qualifies as a smaller reporting company - Not Applicable[155](index=155&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue decreased 36% to $4.0 million in 2018, widening operating loss and raising significant liquidity concerns Results of Operations (2018 vs. 2017) | Financial Metric | 2018 ($) | 2017 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $4,044,542 | $6,302,984 | -36% | | Gross Profit (Loss) | ($119,648) | $3,060,833 | N/A | | Operating Loss | ($6,868,955) | ($4,275,365) | 61% | | Net Loss | ($6,868,875) | ($4,275,338) | 61% | - Revenue from license fees decreased by **46%** to **$1.7 million** in 2018, mainly because a large 2017 order was not repeated at the same scale in 2018[183](index=183&type=chunk) - Hardware sales decreased by **32%** to **$1.3 million** in 2018 due to fewer large customer deployments and lower retail sales of fingerprint readers and biometric locks[184](index=184&type=chunk) - The company requires approximately **$537,000 per month** for operations. With 2018 revenue of **~$4.0 million**, it fell short of covering its monthly requirements, necessitating additional financing[200](index=200&type=chunk) - The company adopted the new revenue recognition standard, ASC 606, on January 1, 2018, using the modified retrospective method. This resulted in capitalizing certain sales commission costs[206](index=206&type=chunk)[216](index=216&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited financials show recurring losses, a 'going concern' warning, declining assets, and widening net loss - The Report of Independent Registered Public Accounting Firm contains a 'Going Concern' paragraph, citing substantial net losses, an accumulated deficit, and dependency on financing as factors that raise substantial doubt about the company's ability to continue as a going concern[239](index=239&type=chunk) Consolidated Balance Sheet Data (as of Dec 31) | Metric | 2018 ($) | 2017 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | $323,943 | $288,721 | | Total current assets | $4,229,297 | $7,014,033 | | Total Assets | $11,692,332 | $16,078,822 | | Total current liabilities | $1,226,110 | $2,325,527 | | Total Stockholders' Equity | $10,466,222 | $13,753,295 | Consolidated Statement of Operations Data (for year ended Dec 31) | Metric | 2018 ($) | 2017 ($) | | :--- | :--- | :--- | | Total revenues | $4,044,542 | $6,302,984 | | Gross Profit (Loss) | ($119,648) | $3,060,833 | | Operating loss | ($6,868,955) | ($4,275,365) | | Net loss | ($6,868,875) | ($4,275,338) | | Basic and Diluted Loss per Share | ($0.73) | ($0.76) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=33&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure were reported - None reported[223](index=223&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal financial reporting controls were effective as of December 31, 2018 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2018[224](index=224&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2018[226](index=226&type=chunk) - As a smaller reporting company, the annual report does not include an attestation report from its registered public accounting firm regarding internal control over financial reporting[227](index=227&type=chunk) [Other Information](index=33&type=section&id=Item%209B.%20Other%20Information) No other information to report for this period - None[229](index=229&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=33&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2019 Proxy - Information is incorporated by reference from the 2019 Proxy Statement[230](index=230&type=chunk) [Executive Compensation](index=34&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation information is incorporated by reference from the 2019 Proxy Statement - Information is incorporated by reference from the 2019 Proxy Statement[231](index=231&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=34&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership and equity compensation plan information is incorporated by reference from the 2019 Proxy Statement - Information regarding security ownership and equity compensation plans is incorporated by reference from the 2019 Proxy Statement[231](index=231&type=chunk)[232](index=232&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=34&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions and director independence information is incorporated by reference from the 2019 Proxy Statement - Information is incorporated by reference from the 2019 Proxy Statement[233](index=233&type=chunk) [Principal Accountant Fees and Services](index=34&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2019 Proxy Statement - Information is incorporated by reference from the 2019 Proxy Statement[234](index=234&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=34&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and provides an index to all exhibits filed with the Form 10-K - This section lists the financial statements and provides an index to all exhibits filed with the Form 10-K[235](index=235&type=chunk)[412](index=412&type=chunk) [Form 10-K Summary](index=34&type=section&id=Item%2016.%20Form%2010-K%20Summary) No summary is provided in this section of the Form 10-K - None[235](index=235&type=chunk)