Company Overview - BIO-key International, Inc. is an innovative provider of workforce and customer Identity and Access Management solutions featuring passwordless, phoneless, and tokenless Identity-Bound Biometric authentication [1] - The company secures access for over forty million users through its biometric-centric, multi-factor identity and access management (IAM) software [2] Upcoming Events - BIO-key will host its second quarter 2025 investor call on August 13th at 10 a.m. ET, with results released before the stock market opens [1] - The call will be led by Mike DePasquale, Chairman & CEO, and Cecilia Welch, CFO, and will include a Q&A session [1] Call Details - The investor call can be accessed via dial-in numbers: 1-877-418-5460 for U.S. and 1-412-717-9594 for international participants [2] - A live webcast and replay will be available for three months [2] - Audio replay can be accessed at 1-877-344-7529 for U.S. and 1-412-317-0088 for international, using code 8281392 [2] Engagement Channels - BIO-key maintains a presence on various social media platforms including Facebook, LinkedIn, and X [3] - Investor contacts are available through Catalyst IR for further inquiries [3]

Core Insights - IDEX Biometrics ASA has entered into a strategic partnership with Savyint Group to launch biometric FIDO Access cards in Vietnam and Southeast Asia, marking a significant step in the company's commercial expansion [1][5] - The partnership aims to meet the increasing demand for secure digital authentication solutions across various sectors in Southeast Asia, including finance, government, healthcare, and education [2][5] Company Overview - IDEX Biometrics ASA is a global leader in fingerprint biometrics, focusing on authentication solutions for payments, access control, and digital identity [7][8] - Savyint Group is a prominent IT security company with a strong presence in digital identity and trust services, particularly in the Asia-Pacific region [6][7] Market Dynamics - The global digital identity solutions market is projected to grow from $43.07 billion in 2025 to $153.63 billion by 2032, driven by rising cybersecurity threats and regulatory compliance [3] - The FIDO authentication market is expected to expand at a 24.4% CAGR, reaching $5.72 billion by 2029, as organizations increasingly adopt passwordless authentication [3] Product Innovation - The IDEX Total Access card integrates traditional access card convenience with advanced fingerprint biometric authentication, eliminating the need for passwords and enhancing security [4] - The cards are designed for various applications, including enterprise access control and digital identity verification, providing instant and secure authentication [4] Strategic Implications - The partnership with Savyint Group is a crucial step for IDEX in establishing a distribution channel strategy in the high-growth Southeast Asian market [5] - This collaboration positions both companies to leverage the accelerating shift towards biometric authentication solutions and supports broader regional expansion [5]

Core Viewpoint - Fingerprint Cards AB (FPC) has appointed John Lord and Carl Johan Grandinson to its Board of Directors, marking a significant step in the company's strategic transformation and innovation journey [1][4]. Group 1: New Board Members - John Lord brings over 25 years of leadership experience in global financial and technology sectors, with a strong background in finance, risk, and SaaS, particularly in identity verification [2]. - Carl Johan Grandinson has expertise in technology, marketing, and operational scaling, with a focus on growth equity investments in enterprise software companies [3]. Group 2: Strategic Significance - The appointments of John Lord and Carl Johan Grandinson are timely as FPC expands its solutions in embedded biometrics and secure access technologies, enhancing the company's strategic capabilities [4]. - John Lord's market insight and innovation leadership will support FPC's initiatives in new verticals where advanced biometric authentication is increasingly demanded [5]. - Carl Johan Grandinson's financial and strategic acumen will contribute to FPC's governance and capital planning, aiding in the company's long-term sustainability and profitability [6]. Group 3: Leadership Commentary - Christian Lagerling, Chairman at FPC, expressed enthusiasm for the new board members, highlighting their combined experience and industry knowledge as crucial for the company's new strategic direction [7].

Company Participation - BIO-key International, Inc. will participate in the Aegis Capital Corp. 2025 Virtual Conference on May 22, 2025, and the Maxim Virtual Tech Conference on June 4, 2025 [1][2] Conference Details - The Aegis Capital Virtual Conference presentation is scheduled for May 22, 2025, from 11:30 to 11:55 a.m. ET [2] - The Maxim Virtual Tech Conference will feature a fireside chat with Maxim Analyst Jack Vander Aarde on June 4, 2025, at 11:00 a.m. ET [2] Company Overview - BIO-key is a provider of Identity and Access Management (IAM) solutions, focusing on passwordless, phoneless, and tokenless biometric authentication, securing access for over 40 million users [4] - The company's PortalGuard IAM solution offers a cost-effective and secure way to access computers, information, applications, and high-value transactions [4]

Company Participation - BIO-key International, Inc. will participate in the Aegis Capital Corp. 2025 Virtual Conference on May 22, 2025, and the Maxim Virtual Tech Conference on June 4, 2025 [1][2] Conference Details - The Aegis Capital presentation is scheduled for May 22, 2025, from 11:30 to 11:55 a.m. ET, with a webcast link provided [2] - The Maxim conference will feature a fireside chat with Maxim Analyst Jack Vander Aarde on June 4, 2025, at 11:00 a.m. ET, requiring M-Vest membership for access [2] Company Overview - BIO-key is a provider of biometric-centric, multi-factor identity and access management (IAM) software, securing access for over 40 million users [4] - The company offers various authentication options, including phoneless, tokenless, and passwordless biometric solutions, through its PortalGuard IAM solution [4]

Core Insights - Aware, Inc. has appointed Lona Therrien as the new Chief Marketing Officer, signaling a commitment to accelerate growth in the biometric authentication sector [1][4] - Therrien has over 15 years of experience in the cybersecurity industry and has a proven track record in building marketing teams and executing successful go-to-market strategies [2][3] - The appointment is part of a broader strategy to enhance Aware's leadership team, which includes other key hires in the cybersecurity domain [4][5] Company Overview - Aware, Inc. is a global biometric platform company that leverages data science and machine learning to address identity challenges through biometric solutions [6] - The company has been a trusted name in the biometric field for over 30 years, focusing on providing secure and frictionless user experiences for government and commercial enterprises [6] Leadership and Strategy - Lona Therrien's leadership is expected to align marketing efforts with business growth, enhancing Aware's market presence and customer engagement [4][5] - The company aims to deliver fast, secure, accurate, and scalable biometric solutions to meet the growing demand in the market [5]

Core Viewpoint - BIO-key International, Inc. reported a sequential revenue increase of approximately 10% in Q1'25, but a year-over-year revenue decline of 25% due to a significant contract from a financial services customer in Q1'24 that did not recur at the same level in Q1'25 [2][9] Financial Performance - Total revenues decreased to $1,607,159 in Q1'25 from $2,181,203 in Q1'24, primarily due to the impact of a $1.2 million contract in Q1'24 [9] - License fee revenue fell to $1,098,758 in Q1'25 from $1,950,434 in Q1'24, reflecting the variance from the long-term financial services customer and the transition from third-party products to BIO-key products in EMEA [9] - Service revenues increased to $272,598 in Q1'25 from $213,122 in Q1'24, with a 37% increase in recurring maintenance and support revenue [10] - Hardware sales surged to $235,803 in Q1'25 from $17,647 in Q1'24, driven by increased purchases of fingerprint biometric scanners [11] - Gross profit decreased to $1,327,661 in Q1'25 from $1,881,560 in Q1'24, with gross margins of 82.6% compared to 86.3% in the previous year [11] Cost Management - Operating expenses were reduced by $422,195 to $1,968,299 in Q1'25 from $2,390,494 in Q1'24, with SG&A expenses decreasing by 23% [12] - The company achieved a cash position of $3.1 million as of March 31, 2025, reflecting proceeds from warrant exercises [3][14] Market Position and Strategy - The company is experiencing growing traction for its identity-bound biometric solutions in defense/security and financial services, emphasizing the need for high-security authentication [3][4] - BIO-key has established a solid presence in the state, local, and educational (SLED) markets, serving over 100 institutions with over 4 million end users [5] - A strategic partnership with California's Education Technology Joint Powers Authority was executed, making PortalGuard an approved solution for 195 K-12 schools, which will comply with California's Phone-Free Schools Act [6] Future Outlook - The company is optimistic about growth in EMEA markets, expecting to return to growth and enhanced margins over the remainder of 2025 [7][8] - There is an increasing interest in passwordless, phoneless, and tokenless IAM solutions, positioning the company well for improved financial performance in 2025 [8]

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]