BIO-key(US:BKYI)2025-11-14 13:45Financial Performance - Q3'25 total revenues decreased to $1.55M, down 27% from $2.14M in Q3'24, primarily due to large orders from two long-time customers in the previous year [3][12] - License fee revenue declined by $523,060 to $917,951 in Q3'25 from $1,441,011 in Q3'24, while hardware sales decreased 17% to $363,642 [13] - Total revenues for the three months ended September 30, 2025, were $1,549,706, a decrease from $2,144,804 in the same period of 2024, representing a decline of approximately 28% [27] - BIO-key's Q3'25 net loss was ($964,849), or ($0.15) per share, compared to a net loss of ($738,959), or ($0.39) per share in Q3'24 [16] - The net loss for the nine months ended September 30, 2025, was $2,868,790, compared to a net loss of $2,916,195 for the same period in 2024, showing a slight improvement of 2% [27] - Operating loss for the three months ended September 30, 2025, was $892,190, compared to an operating loss of $580,405 for the same period in 2024, indicating a deterioration of 54% [27] - The company reported a gross profit of $1,191,718 for the three months ended September 30, 2025, down from $1,679,694 in the same period of 2024, a decrease of 29% [27] Assets and Liabilities - At September 30, 2025, total current assets were $3.7M, including $2.0M in cash and cash equivalents, compared to $1.9M at December 31, 2024 [17] - Total current assets rose to $3,745,907 as of September 30, 2025, compared to $1,886,958 at December 31, 2024, reflecting an increase of 98% [25] - Cash and cash equivalents increased to $2,039,853 as of September 30, 2025, from $437,604 at the end of 2024, marking a significant increase of 367% [29] - Total liabilities decreased to $4,068,235 as of September 30, 2025, from $4,843,529 at December 31, 2024, a reduction of approximately 16% [26] - The company’s total stockholders' equity increased to $6,045,078 as of September 30, 2025, compared to $3,772,031 at December 31, 2024, an increase of 60% [26] Future Outlook - The company expects full year revenue for 2025 to be in the range of $6.5M to $7M, with solid growth anticipated in 2026 [11] Product Development - BIO-key launched the EcoID III USB fingerprint scanner, which is FBI FAP 20 certified, enhancing security and liveness detection [6][10] Strategic Initiatives - The company secured a significant new deployment in the Middle East defense sector, enhancing its footprint in high-assurance government environments [8][9] - BIO-key's CyberDefense Initiative aims to capitalize on expected increases in global defense spending, particularly in Europe and the Middle East [7] Shareholder Information - The weighted average common shares outstanding for the nine months ended September 30, 2025, were 5,754,077, compared to 1,726,716 for the same period in 2024, reflecting a significant increase in shares [27] Cash Flow - Cash flow from operating activities for the nine months ended September 30, 2025, was a net cash used of $2,838,088, compared to $2,399,508 for the same period in 2024, indicating an increase in cash outflow of 18% [29] Operating Expenses - Q3'25 gross margin remained strong at 77%, compared to 78% in Q3'24, with total operating expenses decreasing by 7.8% to $2.08M [15] - The company raised $3.1M in gross proceeds from a warrant exercise agreement on October 27, 2025, with 3,091,668 shares purchased at $1.02 per share [20]