BIO-key(US:BKYI)2025-11-14 21:46Revenue Performance - For the three months ended September 30, 2025, total revenues decreased by 28% to $1,549,706 from $2,144,804 in the same period in 2024[110]. - For the nine months ended September 30, 2025, total revenues decreased by 11% to $4,853,772 from $5,467,293 in 2024[120]. - License revenue decreased by 36% to $917,951 from $1,441,011, attributed to the expansion of long-term customer license deployments in the previous year[112]. - License revenue decreased by 32% to $2,822,796, primarily due to the ramp-up of BIO-key EMEA selling only BIO-key products[122]. - Service revenues increased by 13% to $862,707, driven by a $117,000 or 17% increase in recurring maintenance and support revenue[121]. - Hardware sales decreased by 17% to $363,642 from $436,422, influenced by new customer deployments and inventory reservations[113]. - Hardware sales surged by 117% to $1,168,269, attributed to new customer purchases and sales of previously reserved inventory[123]. Expenses and Costs - Selling, general and administrative expenses decreased by 13% to $1,400,288 from $1,607,925, reflecting reductions in administration and professional services fees[115]. - Selling, general and administrative expenses decreased by 16% to $4,453,362, reflecting reductions in various administrative costs[125]. - Research, development, and engineering costs increased by 5% to $683,620 compared to $652,174 in the prior year, primarily due to professional services and personnel costs[116]. - Research, development, and engineering costs increased by 3% to $1,915,422, mainly due to higher professional services and personnel costs[126]. - Total cost of goods sold increased by 7% to $1,101,666, with hardware costs rising significantly due to increased sales[120][124]. Cash Flow and Financial Position - Net cash used in operations was $2,838,088, while net cash provided by financing activities was $4,456,013, including $3,813,057 from warrant exercises[129]. - As of September 30, 2025, total cash and cash equivalents were $2,039,853, a significant increase from $437,604 at December 31, 2024[139]. - The company requires approximately $830,000 per month to conduct operations and may need additional financing if revenue generation does not improve[140]. - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures[142]. Strategic Initiatives - The company plans to expand its role in the IAM market and enhance its suite of authentication options to meet customer needs[100]. - The company aims to grow within government services and highly-regulated industries, anticipating increased demand for security solutions[101]. - The channel alliance program has grown to over 85 participants, contributing to incremental revenues[102]. - The company is actively pursuing strategic acquisitions in the IAM space to enhance its market presence and operational synergies[103]. Profitability - Gross profit margin slightly decreased to 77% from 78% year-over-year[109].