Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $300,000, an increase from $160,000 in the same period last year [19] - Operating expenses for Q1 were $4,700,000 compared to $3,300,000 a year ago, primarily due to increased headcount investments in sales and R&D [19] - Net loss for the quarter was $4,300,000, compared to a net loss of $3,100,000 for the same period last year [19] - Adjusted EBITDA loss was $3,900,000 for Q1, compared to a loss of $2,400,000 for the same period last year [21] - Remaining performance obligation (RPO) as of March 31, 2025, was $13,850,000, a decrease of $410,000 from the prior quarter but an increase from $4,030,000 a year ago [20] Business Line Data and Key Metrics Changes - The company is focusing on large enterprise deals and partnerships, with significant progress reported in contract negotiations with Fortune 500 companies [10][11] - A paid live production trial agreement was signed with a global Fortune 100 retailer to test the product [11] - The company is also in the final stages of contract negotiations with a global Fortune 100 biometric hardware provider [11] Market Data and Key Metrics Changes - The company reported a strong pipeline, generating $13,000,000 in new pipeline in Q1 and approaching $9,000,000 in Q2 [51] - The demand for biometric solutions is increasing due to rising cyber threats and the need for enhanced security measures [8][52] Company Strategy and Development Direction - The company aims to become a leader in the biometric authentication market, focusing on speed, accuracy, privacy, and interoperability [13][14] - Strategic investments have been made in privacy key technology, allowing biometric authentication without storing biometric data [13] - The company is expanding into the public sector and exploring opportunities in smart cities and banking sectors in India and South America [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth prospects, citing a strong pipeline and positive customer feedback [10][16] - The company anticipates signing new customers and achieving significant growth towards its $18,000,000 bookings target for 2025 [18][22] Other Important Information - The company completed two capital raises in April and May, securing nearly $9,000,000 to improve its balance sheet and broaden its investor base [17] - The company was recognized as the best ID management platform in 2025 by FinTech Breakthrough Awards [15] Q&A Session Summary Question: When will the company start seeing leverage from partnerships? - Management indicated that they are already benefiting from partnerships and expect bookings to come as they invest in channel partners [29][30] Question: Why have expenses been high compared to revenue? - Management explained that current expenses are driven by investments in headcount for sales and R&D, which are necessary for future growth [33][34] Question: How many Fortune 500 clients are needed to meet the $18,000,000 bookings target? - Management stated that signing four to five large deals could potentially cover the entire bookings target for the year [41][42] Question: What is the current demand for biometrics? - Management noted a rise in demand, with a significant increase in pipeline generation, driven by the introduction of privacy key technology [51][52]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $3.6 million, down from $4.4 million in Q1 2024, primarily due to lower software license sales [14] - Recurring revenue decreased to $2.7 million from $3.1 million in the prior year, attributed to the timing of subscription term license renewals [15] - Operating expenses were reduced to $5.5 million, down 5% from $5.7 million in Q1 2024 [15] - GAAP net loss was $1.6 million or $0.08 per diluted share, compared to a net loss of $1 million or $0.05 per diluted share in Q1 2024 [15] - Adjusted EBITDA loss for the quarter was $1.5 million, compared to a loss of $1 million in the prior year [16] Business Line Data and Key Metrics Changes - The company is focusing on deepening strategic partnerships and has realigned its go-to-market model to prioritize high-impact customers and sectors [8] - Active conversations are ongoing with several Fortune 500 companies, indicating a shift in engagement and potential revenue opportunities [8][30] Market Data and Key Metrics Changes - There is strong interest in biometric solutions across various sectors, including financial services, healthcare, and e-commerce, as enterprises recognize the need for secure identity verification [30] - The U.S. Federal government's commitment to biometric modernization remains strong, providing a significant market opportunity [21][38] Company Strategy and Development Direction - The company is undergoing a strategic transformation with a focus on durable, scalable growth and a streamlined go-to-market strategy [6] - Key strategic priorities include deepening partnerships, advancing core technology, and scaling the business sustainably [7] - The Awareness platform is being developed to offer an open, flexible architecture that differentiates the company from competitors [35][36] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a foundational year for the company, with expectations of building momentum heading into the second half of the year [13][40] - The leadership team is confident in the strategic groundwork laid, which positions the company for leadership in the biometrics industry [26] Other Important Information - The company has strengthened its leadership team, appointing a new Chief Revenue Officer and a chairman with extensive experience in cybersecurity [9][10] - The brand has been revitalized, focusing on modernizing its presence and increasing visibility in key markets [12][25] Q&A Session Summary Question: Will Aware continue to pursue growth in annual recurring revenues via sales of the Aware ID product? - The focus is on solving large-scale identity challenges for enterprises and government agencies rather than driving growth through a single product [28] Question: Has Aware made progress in adding customers or growing sales on the AWS Marketplace? - The priority is direct engagement with customers, and partnerships will only be pursued if they add strategic value [29] Question: Can you provide more color on the types of industries or use cases these companies are exploring with Aware's biometric solutions? - Engagement is strong across industries like financial services, healthcare, and e-commerce, where secure identity verification is critical [30] Question: What is the timing and potential revenue contribution from new strategic opportunities in the second half of 2025? - 2025 is viewed as a foundational year, with expectations for early wins later in the year and contributions building over time [32][34] Question: How does the Awareness platform differentiate Aware from competitors? - The platform offers an open modular architecture, allowing customers to orchestrate best-in-class algorithms, providing flexibility and scalability [35][36] Question: Are there specific programs or initiatives where Aware feels particularly well positioned? - Aware is well positioned across the U.S. Government portfolio, focusing on secure digital identity and modernization initiatives [38] Question: What early indicators show Aware is on the right trajectory for growth? - The pipeline has expanded significantly, and there is growing interest from customers recognizing Aware's technology leadership [39]

Core Business Performance - The company reported a 100% increase in revenue for Q1 2025 compared to the same quarter last year, driven by strong demand for biometric authentication solutions [5][7] - Revenue for Q1 2025 amounted to SEK 18.2 million, up from SEK 9.1 million in the previous year [7] - The gross margin for Q1 2025 was 56.6%, a decrease from 65.8% in the previous year, attributed to a higher proportion of software sales in 2024 [7][9] Strategic Changes - The company is exiting low-margin product segments to focus on high-value biometric and identity markets, classifying associated results as discontinued operations for better transparency [6][8] - A rights issue was successfully completed in February 2025, enhancing the company's financial position [7] Financial Metrics - EBITDA for Q1 2025 was SEK 10.7 million, compared to a negative SEK 55.7 million in the previous year [7] - The operating result was negative SEK 0.3 million, an improvement from negative SEK 67.3 million [7] - Cash flow from operating activities was negative SEK 36.4 million, including a negative SEK 22.0 million from discontinued operations [7] Growth Strategy - The company aims to accelerate revenue growth while maintaining high gross margins through strategic partnerships, product innovation, and IP monetization [11] - Key partnerships include a licensing agreement with Smart Eye for iris recognition technology, expanding opportunities in automotive [12] - The company is focusing on sectors requiring advanced authentication, such as enterprise security, and is investing in new revenue streams [11][12] Operational Efficiency - The company has streamlined operations, reducing headcount by 27% since year-end 2024 and 70% year-on-year, to enhance financial flexibility [10] - The strategic transformation includes modernization of operations, technology, and processes to improve agility and customer engagement [11]