Group 1 - BIO-key International, Inc. will host its first quarter 2025 investor call on May 16th at 10 a.m. ET, with results released after market close on May 15th [1] - The conference call will be led by Mike DePasquale, Chairman & CEO, and Cecilia Welch, CFO, and will include a Q&A session [1] - The company specializes in Identity and Access Management solutions, focusing on biometric capabilities for secure access [3] Group 2 - BIO-key's IAM software secures access for over 40 million users, offering various authentication options including phoneless, tokenless, and passwordless methods [3] - The PortalGuard IAM solution is available both as a hosted and on-premise option, providing cost-effective and secure access to critical information and applications [3]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was approximately $0.2 million, compared to $0.07 million a year ago, while total revenue for the full year was $0.89 million, up from $0.19 million in 2023, meeting the expected range of $800,000 to $900,000 [40] - Operating expenses for Q4 were $4.9 million, compared to $3.3 million last year, and for the full year, operating expenses were $15.6 million, up from $10.9 million in 2023 [41] - Net loss from continuing operations for Q4 was $4.6 million, compared to a net loss of $3.2 million a year ago, while the full year net loss was $14.3 million, an improvement from $19.6 million in the previous year [42] - Adjusted EBITDA loss was $4.1 million for Q4, compared to a $2.7 million loss for the same period last year, and for the full year, adjusted EBITDA loss was $11.9 million, up from $8.7 million [46] Business Line Data and Key Metrics Changes - Booked Annual Recurring Revenue (ARR) for 2024 was $9 million, achieving the targeted 3x growth from the previous year [14] - Remaining Performance Obligation (RPO) increased by 3.5% from $4 million to over $14 million, significantly exceeding expectations [15][44] - The gross amount of Booked Annual Recurring Revenue (BAR) signed in Q4 2024 was $7.13 million, up from $1.67 million a year ago, while full year gross BAR was $9.01 million, up from $2.94 million in 2023 [48] Market Data and Key Metrics Changes - The company is positioned to close multiple Fortune 500 and multinational customers in 2025, with an open pipeline of over 3x the $18 million in bookings targeted [16] - The company has expanded its partner ecosystem, including partnerships with TurboCheck, Imperial Technologies, and Zendesk, to leverage mutual market opportunities [18][19] Company Strategy and Development Direction - The company aims to achieve a five-year T2D3 growth target, focusing on aggressive growth and positioning itself as a dominant player in the biometric authentication market [13][10] - The strategy includes refining software to be enterprise-ready and centering the organization around 300 core accounts divided into fast high-growth companies, large enterprises, and channel partners [11] - The introduction of Privacy Key technology aims to enhance compliance and privacy in biometric authentication, addressing significant market concerns [28][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by advanced AI technologies, such as deepfakes, and emphasized the importance of biometric solutions in combating these threats [24] - The management expressed confidence in closing large enterprise deals in 2025, citing improvements in speed, accuracy, and compliance as key factors for adoption [78][82] Other Important Information - The company announced a significant $10 million contract in Q4 with a next-generation AI partner in India, marking the largest deal in its history [17] - The company is working with a major biometric hardware provider to showcase a reusable identity solution between the United States and Japan [21][22] Q&A Session Summary Question: What are customers looking for in sales conversations? - Customers prioritize speed, accuracy, and compliance when evaluating biometric solutions, with authID Inc. meeting these criteria effectively [57][63] Question: How do Privacy Key and ADIA impact customer perception? - The ADIA standard allows for trust between different financial institutions regarding identity verification, enhancing customer confidence in using biometrics [66][70] Question: What gives confidence in closing large enterprise deals? - The company has addressed key blockers such as speed, accuracy, and privacy, leading to positive responses in late-stage sales cycles with major enterprises [78][82] Question: What is the typical contract length and signing process? - Contracts typically last two to three years, with a signing process that can take six to nine months due to the need for multiple approvals within large enterprises [85][92] Question: What progress is being made with channel partners? - The company is actively engaging with OEM partners and resellers, which is expected to drive larger deals and enhance market reach [98][103]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was approximately $0.2 million, compared to $0.07 million a year ago, while total revenue for the full year was $0.89 million, up from $0.19 million in 2023 [40] - Operating expenses for Q4 were $4.9 million, compared to $3.3 million last year, and for the full year, operating expenses were $15.6 million, up from $10.9 million in 2023 [41] - Net loss from continuing operations for Q4 was $4.6 million, compared to a net loss of $3.2 million a year ago, while the full year net loss was $14.3 million, an improvement from $19.6 million in the previous year [42][43] - Remaining performance obligation (RPO) increased to $14.26 million, up from approximately $4 million a year ago [44] Business Line Data and Key Metrics Changes - Booked annual recurring revenue (BAR) for Q4 was $7.13 million, up from $1.67 million a year ago, and for the full year, gross BAR was $9.01 million, compared to $2.94 million in 2023 [48][49] - The company achieved a 3x growth in booked ARR, reaching $9 million for 2024 [14] Market Data and Key Metrics Changes - The company is positioned to close multiple Fortune 500 and multinational customers in 2025, with an open pipeline of over 3x the $18 million in bookings targeted [16] - The largest deal in the company's history was closed in Q4, a $10 million contract over three years with a next-generation AI partner in India [17] Company Strategy and Development Direction - The company aims to achieve a five-year T2D3 growth target, aiming for $100 million in ARR by tripling growth in the first two years and doubling in the subsequent years [13] - The strategy includes focusing on three core account categories: fast high-growth companies, large enterprise companies, and channel partners [11] - The company is actively working on partnerships to enhance its market reach, including a partnership with Zendesk to integrate its services into their customer support software [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by advances in artificial intelligence, particularly in identity verification, and emphasized the importance of biometric solutions in combating sophisticated fraud attacks [24] - The management expressed confidence in closing large enterprise deals, citing improvements in speed, accuracy, and compliance as key factors for adoption [78][81] Other Important Information - The company introduced Privacy Key, a technology that allows biometric authentication without storing any biometric data, addressing compliance concerns [28] - The company is a member of the Accountable Digital Identity Association (ADIA), which aims to advance the adoption of reusable digital identities [19] Q&A Session Summary Question: What are customers looking for in sales conversations? - Customers prioritize speed, accuracy, and compliance when evaluating biometric solutions, with authID Inc. meeting these criteria effectively [57][65] Question: How do customers view the integration of Privacy Key and ADIA? - Customers see potential in using ADIA standards for trust between different financial institutions, enhancing identity verification processes [66][70] Question: What gives confidence in closing large enterprise deals? - The company has addressed key blockers such as speed, accuracy, and compliance, and is in late stages of sales cycles with major enterprises [78][82] Question: What is the typical contract length and signing process for large enterprises? - Contracts typically last two to three years, with a signing process that can take six to nine months due to the need for multiple approvals [85][92] Question: What progress is being made with channel partners? - The company is actively engaging with OEM partners and resellers, which is expected to lead to larger deals [98][103]