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BIO-key(BKYI) - 2024 Q4 - Annual Results
BKYIBIO-key(BKYI)2025-03-27 12:30

Revenue Performance - BIO-key's 2024 revenues decreased approximately 11% to 6.9Mfrom6.9M 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 5.2Min2024comparedto5.2M in 2024 compared to 4.3M in 2023, while service fees declined 50% to 1.1M[12]−TotalrevenuesforQ42024were1.1M[12] - Total revenues for Q4 2024 were 1,462,278, a decrease of 19.9% compared to 1,825,101inQ42023[23]−Licensefeesincreasedsignificantlyto1,825,101 in Q4 2023[23] - License fees increased significantly to 1,023,701 in Q4 2024, up 77.1% from 577,669inQ42023[23]ProfitabilityandLoss−BIO−key′snetlossimprovedto577,669 in Q4 2023[23] Profitability and Loss - BIO-key's net loss improved to 4.3M, or (2.10)pershare,in2024,comparedtoanetlossof2.10) per share, in 2024, compared to a net loss of 8.7M, or (15.21)pershare,in2023[16]−Thegrossprofitgrewto15.21) per share, in 2023[16] - The gross profit grew to 5.6M in 2024 from 1.4Min2023,benefitingfromhigher−marginlicensesalesandareductioninlower−marginservices[14]−Operatinglossnarrowedto1.4M 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 2,723,834inQ42023,indicatingbettercostmanagement[23]−Thecompanyreportedanetlossof2,723,834 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 8,521,837in2023[23]−Basicanddilutedlosspercommonshareimprovedto8,521,837 in 2023[23] - Basic and diluted loss per common share improved to 2.10 in 2024 from 15.21in2023,reflectingreducedlosses[23]ExpensesandCostManagement−Operatingexpenseswerereducedby15.21 in 2023, reflecting reduced losses[23] Expenses and Cost Management - Operating expenses were reduced by 606,409 to 9.7Min2024from9.7M in 2024 from 10.3M in 2023, with SG&A costs decreasing by 722,563[15]−Thecompanyexperiencedanetcashusedforoperatingactivitiesof722,563[15] - The company experienced a net cash used for operating activities of 2,914,072 in 2024, compared to 3,793,456in2023,showingimprovedcashflowmanagement[31]AssetsandEquity−Cashandcashequivalentsattheendof2024were3,793,456 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 511,400attheendof2023[27]−Totalassetsincreasedto511,400 at the end of 2023[27] - Total assets increased to 8,615,560 in 2024, compared to 4,517,035in2023,reflectinggrowthinthecompany′sassetbase[27]−Totalstockholders′equityincreasedto4,517,035 in 2023, reflecting growth in the company's asset base[27] - Total stockholders' equity increased to 3,749,033 in 2024 from 1,063,565in2023,indicatingastrongerfinancialposition[28]StrategicPartnershipsandMarketPresence−Thecompanysecureda1,063,565 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]