BIO-key(US:BKYI)2025-03-27 12:30Revenue 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]