BIO-key Reports Q3'24 Revenue Rose 18% to $2.1M, Reduced Q3'24 Net Loss, and Improved Cash Position; Hosts Investor Call Tomorrow, Fri. Nov. 15th, 10am ET

Core Insights - BIO-key International, Inc. reported an 18% increase in Q3'24 revenues to $2.1 million, driven by a rise in license revenue from existing customers [2][3][7] - The company achieved a gross profit of $1.7 million with a gross margin of 78.3%, significantly improved from $0.3 million and 18.7% in Q3'23, due to higher license revenue and lower deployment costs [2][8] - The net loss for Q3'24 was reduced to $0.7 million from $1.8 million in Q3'23, reflecting improved revenue and stable operating expenses [2][10] Financial Highlights - Q3'24 revenues rose to $2.1 million from $1.8 million in Q3'23, with license revenue increasing by 52% to $1.4 million [2][7] - Gross profit improved to $1.7 million in Q3'24, compared to $0.3 million in Q3'23, primarily due to a higher proportion of high-margin license revenue [2][8] - Operating expenses were trimmed by $46,000 in Q3'24, reflecting proactive cost management [2][9] - Cash used in operating activities was $2.4 million for the first nine months of 2024, slightly higher than $2.3 million in the prior-year period [2] Recent Developments - The CEO highlighted strong demand from existing customers, with a notable order from a foreign financial services client for biometric identification technology [3][4] - The client has enrolled over 25 million customers using BIO-key technology and is upgrading to a "fingerprint only" solution, enhancing efficiency in customer identification [4][5] - The company plans to publish a whitepaper detailing the benefits of its biometric technology deployment [5] Balance Sheet and Cash Flow - As of September 30, 2024, current assets were approximately $4.6 million, including $1.8 million in cash, compared to $2.6 million at year-end 2023 [11][18] - The company raised $1.9 million in Q3'24 through a warrant inducement agreement, improving its cash position significantly [7][11] - Total liabilities increased to $6.3 million as of September 30, 2024, from $3.5 million at the end of 2023 [18][19]