BIO-key(US:BKYI)2021-05-16 16:00Financial Performance - Total revenues for the three months ended March 31, 2021, were $1,888,638, a significant increase from $522,485 in the same period of 2020, representing a growth of approximately 262%[12] - Gross profit for the first quarter of 2021 was $1,122,003, compared to $398,222 in Q1 2020, indicating a gross margin improvement[12] - Operating loss for the three months ended March 31, 2021, was $(836,046), an improvement from $(1,320,066) in the same period of 2020[12] - Net loss available to common stockholders for Q1 2021 was $(851,431), compared to $(3,482,968) in Q1 2020, reflecting a reduction in losses[12] - The company reported a net loss of $851,431 for the three months ended March 31, 2021, compared to a net loss of $3,370,282 for the same period in 2020, representing a 74.7% improvement[22] Cash and Liquidity - Cash and cash equivalents as of March 31, 2021, were $13,528,521, down from $16,993,096 as of December 31, 2020[8] - The company had approximately $13,500,000 in cash as of March 31, 2021, which is expected to sustain operations for twelve to fifteen months[37] - Cash used in operating activities for the three months ended March 31, 2021, was $3,198,559, compared to $1,022,805 for the same period in 2020[22] - Cash and cash equivalents at the end of the period were $13,528,521, down from $16,993,096 at the beginning of the period[22] Assets and Liabilities - Total current assets decreased to $17,730,006 as of March 31, 2021, from $18,941,873 at the end of 2020[8] - Total liabilities decreased to $1,861,018 as of March 31, 2021, from $2,185,453 as of December 31, 2020, indicating improved financial stability[8] - Stockholders' equity as of March 31, 2021, was $19,622,127, down from $20,335,119 at the end of 2020[8] - The company reported an increase in accounts receivable to $1,432,248 as of March 31, 2021, compared to $548,049 at the end of 2020, indicating higher sales activity[8] - Accounts receivable increased to $1,446,033 as of March 31, 2021, compared to $561,834 at December 31, 2020, indicating a growth in sales and customer credit[59] Revenue Recognition - Total revenues for the period reached $1,888,638, with a significant contribution from license fees of $478,958 and hardware sales of $1,029,658[40] - Deferred revenue amounted to approximately $574,000 as of March 31, 2021, down from $702,000 at December 31, 2020, reflecting revenue recognition from previously deferred amounts[53] - The company recognized revenue from deferred revenue of approximately $305,000 during the three months ended March 31, 2021, compared to $72,000 in the same period of 2020[53] Expenses and Costs - The company incurred capital expenditures of $13,307 during the three months ended March 31, 2021[22] - Interest paid during the three months ended March 31, 2021, was $18,000[25] - The company reported factoring fees of $13,347 for the three months ended March 31, 2021, compared to $32,000 for the same period in 2020, indicating a reduction in costs associated with factoring[62] - Share-based compensation expenses for the three months ended March 31, 2021, totaled $141,148, a decrease from $512,719 in the same period of 2020[60] Operational Challenges - The company has been impacted by the ongoing threat of COVID-19, which may affect future revenue and operations[37] - The company has a history of losses and limited revenue, which may impact future operations and financial position[116] Financing Activities - The company raised approximately $24,000,000 from financing activities during 2020[37] - The Company issued a $3,789,000 convertible note, which was converted into 728,654 shares of common stock in 2020[80] - The Company issued a $2,415,000 convertible note, which was fully repaid in the third quarter of 2020, resulting in an expense of $1,218,163 for remaining debt discounts[86] Acquisitions and Investments - The company acquired PistolStar, Inc. for a total purchase price of $2.5 million, which included a cash payment of $2.0 million and a $500,000 promissory note[56] - The Company purchased a bond certificate for 4,000,000 Hong Kong dollars, equivalent to $512,821 U.S. dollars, with a 5% annual interest rate[69] Customer Concentration - For the three months ended March 31, 2021, two customers accounted for 52% of revenues and three customers accounted for 71% of revenues[112]