BIO-key(US:BKYI)2025-05-15 20:46Revenue Performance - Q1'25 revenue decreased to $1.6M from $2.2M in Q1'24, a decline of approximately 26% year-over-year[10] - License fee revenue fell to $1.1M in Q1'25 from $1.95M in Q1'24, reflecting a significant impact from a $1.2M contract in Q1'24[10] - Service revenues increased by 28% to $272.6K in Q1'25 from $213.1K in Q1'24, driven by a 37% rise in recurring maintenance and support revenue[11] - Hardware sales surged to $235.8K in Q1'25 from $17.6K in Q1'24, attributed to increased purchases of fingerprint biometric scanners[12] Financial Metrics - Gross margin for Q1'25 was 82.6%, down from 86.3% in Q1'24, due to lower revenue and higher lower-margin hardware sales[13] - Operating expenses decreased by 17.7% to $1.97M in Q1'25 from $2.39M in Q1'24, with SG&A expenses down 23%[14] - Net loss for the three months ended March 31, 2025, was $736,545, compared to a net loss of $510,285 for the same period in 2024, reflecting a 44.3% increase in losses[25] - Total current liabilities decreased to $3,465,616 from $4,553,536, a reduction of 24%[23] - Total stockholders' equity increased to $7,527,053 from $3,772,031, showing a growth of 99%[23] - Deferred revenue increased to $928,291 from $773,267, indicating a growth of 20.1%[23] - Net cash used in operating activities was $835,312, compared to a net cash provided of $297,084 in the prior year, indicating a shift in cash flow dynamics[25] Cash Position - Cash position improved to $3.1M as of March 31, 2025, compared to $438K at the end of 2024[16] - Cash and cash equivalents rose significantly to $3,133,752, up from $437,604, marking a 615.5% increase[25] - The company reported a net increase in cash and cash equivalents of $2,696,148 for the period, compared to an increase of $179,049 in the previous year[25] - Proceeds from the exercise of warrants amounted to $3,813,057, a significant increase compared to $1,400 in the previous year[25] Growth Expectations - The company expects significant revenue growth from a long-term financial services customer starting in 2026 due to expanded deployments[2] - BIO-key is focusing on expanding its presence in the EMEA region, anticipating improved revenue and margins in 2025[8] - The company serves over 100 institutions with more than 4M end users in the state, local, and educational markets[6] Asset Management - Total assets increased to $11,183,676 from $8,615,560, representing a growth of 29.5% year-over-year[23] - Inventory levels decreased slightly to $357,842 from $378,307, a decline of 5.4%[23]