BIO-key(US:BKYI)2023-11-19 16:00Financial Performance - Total revenues for the three months ended September 30, 2023, increased to $1,817,108, a 32.3% rise from $1,373,549 in the same period of 2022[16] - License fees revenue for the nine months ended September 30, 2023, reached $4,664,341, up 31.7% from $3,540,592 in the prior year[16] - Gross profit for the three months ended September 30, 2023, was $1,340,504, compared to $979,766 for the same period in 2022, reflecting a gross margin improvement[16] - Total revenues for the nine months ended September 30, 2023, were $1,373,549, compared to $1,373,549 for the same period in 2022, indicating no growth year-over-year[32] - Services revenue for the three months ended September 30, 2023, was $280,192, a significant increase from $22,677 in the same period last year[32] - License fees for the three months ended September 30, 2023, totaled $468,090, compared to $450,170 in the same period last year, reflecting a growth of approximately 4%[32] - The company reported total revenues of $1,817,108 for the three months ended September 30, 2023, with North America contributing $768,697[33] - Total revenues for the three months ended September 30, 2023, were $6,829,804, a decrease of 8.1% compared to $5,261,835 for the same period in 2022[78] Losses and Expenses - Operating loss for the three months ended September 30, 2023, was $(765,558), significantly reduced from $(2,360,446) in the same quarter of 2022[16] - Net loss for the nine months ended September 30, 2023, was $(2,349,023), compared to $(5,120,869) for the same period in 2022, indicating a narrowing of losses[16] - Basic and diluted loss per common share for the three months ended September 30, 2023, was $(0.07), an improvement from $(0.29) in the same quarter of 2022[16] - Total costs and other expenses for the three months ended September 30, 2023, were $476,604, up from $393,783 in the same period of 2022[16] - The company reported a comprehensive loss of $(637,824) for the three months ended September 30, 2023, compared to $(2,402,509) in the same period of 2022[16] - The company reported a net loss of $1,422,878 for the six months ended June 30, 2023, compared to a net loss of $288,322 for the same period in 2022[40] Cash Flow and Assets - Cash used for operating activities decreased to $2,261,922 for the nine months ended September 30, 2023, down from $4,328,403 in the prior year, indicating a 47.7% improvement[44] - Accounts receivable increased to $3,423,003 as of September 30, 2023, compared to $2,096,569 at the end of December 2022, reflecting a growth of approximately 63.2%[58] - The total inventory as of September 30, 2023, was $4,289,213, a decrease from $4,434,369 at the end of December 2022, showing a reduction of about 3.3%[60] - The company recorded cash paid for interest amounting to $159,379 for the nine months ended September 30, 2023, compared to $3,661 in the same period last year[22] - The company acquired various assets from Swivel Secure, including intangible assets valued at $762,860 and goodwill of $1,067,372[22] - Total accounts receivable acquired from Swivel Secure amounted to $702,886, indicating significant asset acquisition activity[22] Stockholder Equity and Shares - As of September 30, 2023, total stockholders' equity was $3,314,451, a decrease from $5,301,556 as of January 1, 2023[40] - Weighted average common shares outstanding for the three months ended September 30, 2023, increased to 9,081,873 from 8,148,848 in the same quarter of 2022[16] - For the nine-month period ended September 30, 2023, total shares outstanding increased to 5,038,259 from 4,875,282 in the same period of 2022, reflecting a growth of approximately 3.34%[115] - The company issued 295,275 shares of restricted common stock during the nine months ended September 30, 2023, with a fair value of $170,974, compared to 275,000 shares valued at $592,075 in the prior year[72] - The Company issued 28,020 shares under the Employee Stock Purchase Plan during the three months ended September 30, 2023, resulting in a non-cash compensation expense of $3,563[94] Future Outlook and Strategic Initiatives - The company expects to meet revenue targets based on historical performance and increasing distribution by Swivel Secure, indicating confidence in future revenue growth[61] - The company expects to grow its business in government services and highly-regulated industries, driven by increased demand for security solutions, including biometrics[114] - The company anticipates that the portable biometric user experience for Windows 10 users will accelerate demand for its network log-on solutions and fingerprint readers[114] - The company plans to seek stockholder approval for a reverse stock split to regain compliance with Nasdaq listing requirements[129] - The company is not currently in compliance with Nasdaq's minimum bid price requirement of $1.00 per share and may face delisting if compliance is not regained by January 8, 2024[129] Compliance and Regulatory Matters - The company adopted ASU 2016-13 effective January 1, 2023, which changes the accounting for credit losses but did not have a material effect on the financial statements[26] - The company has a full valuation allowance against its net deferred tax assets, indicating a belief that these assets may not be realized[126] - The provision for income taxes for the period amounted to $142,811, with current income taxes totaling $162,811 and a deferred tax benefit of $20,000[127] Deferred Revenue - The company reported a deferred revenue of $128,253 for the nine months ended September 30, 2023, compared to $43,351 in the prior year, representing an increase of approximately 195.5%[44] - Deferred revenue as of September 30, 2023, was approximately $642,000, an increase from $515,000 as of December 31, 2022[78] - Revenue recognized from deferred revenue during the three months ended September 30, 2023, was approximately $67,000, compared to $62,000 for the same period in 2022[78]