IDEX Biometrics ASA will hold an extraordinary general meeting (“EGM”) on Friday 11 April 2025 at 12.00 CET as an online meeting.  Reference is made to the announcement by IDEX Biometrics ASA (the "Company") on 11 March 2025 regarding the loan financing of NOK 30 million secured, proposed debt conversion, and amendment of Convertible Bond. The EGM-notice and the interim statement of financial position are attached. Shareholders may attend online by PC, smartphone or tablet. There is no physical attendance o ...

Core Insights - IDEX Biometrics ASA has initiated a strategic review due to low revenues and a lack of revenue-generating agreements in Q4 2024, leading to a fundamental shift in its market approach [1] - The company has identified unique competitive advantages in its biometric Access technology, positioning itself to offer a comprehensive product line to customers and channel partners [2][3] - IDEX Access is expected to provide better monetization opportunities without heavy reliance on third-party market adoption, allowing the company to control the product, customer journey, and pricing [3] Business Strategy - The company will focus on launching the IDEX Multiuse Access Card, targeting both logical and physical access markets, with an anticipated launch in Q3 2025 [4] - While emphasizing the access market, IDEX will continue to maintain its presence in the payment market [4] Management Changes - The Board has decided to change management, appointing Anders Storbråten as the new CEO, who has extensive experience in technology companies and investment banking [5] - The restructuring will involve organizational and budgetary changes, including a reduction in the cost base and reallocation of resources to maximize return on investment [6] Organizational Focus - IDEX aims to align and energize the organization with clearly defined objectives and key results (OKRs) for each individual [7] - The company will enhance communication with shareholders, focusing on transparency and providing ongoing status reports on its commercial rollout [7]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 10% to $4.8 million compared to $4.4 million in Q4 2023, driven by higher software license revenue, including a $1 million one-time license sale to a European government [25] - Recurring revenue for Q4 was $3.3 million, down from $3.7 million in the prior year, primarily due to timing of revenue recognition [25] - For the full year, total revenue decreased to $17.4 million from $18.2 million, attributed to lower software license revenue [28] - Full year recurring revenue grew by 9% to $12 million, making up 69% of total revenue, indicating a focus on stable revenue streams [29] - Operating expenses decreased by 14% to $22.9 million for the full year, improving operational efficiency [29] Business Line Data and Key Metrics Changes - The increase in Q4 revenue was largely due to software license sales, while recurring revenue showed slight fluctuations due to contract timing [25][28] - The company experienced a decline in total revenue for the full year despite growth in recurring revenue, highlighting the variability in non-recurring revenue streams [28][57] Market Data and Key Metrics Changes - The biometrics industry is experiencing increased demand due to rising AI-driven fraud, making innovative biometric solutions critical [13] - The company aims to strengthen partnerships with government agencies and commercial enterprises to drive broader adoption of biometric technologies [19] Company Strategy and Development Direction - The company is focused on three key priorities: deepening strategic partnerships, advancing technological innovation, and scaling sustainably [18] - Aware is committed to refining its go-to-market strategy to improve efficiency and unlock new revenue opportunities, especially in light of anticipated revenue headwinds in 2025 [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic headwinds and government budget constraints but remains optimistic about the company's strategic initiatives and long-term growth potential [16][22] - The CEO emphasized the importance of enhancing sales efficiency and deepening customer relationships to position the company for sustainable growth [40] Other Important Information - The company has a strong balance sheet with cash and marketable securities totaling $27.8 million as of December 31, 2024 [32] - The CEO's personal investment in the company reflects confidence in its long-term potential and strategy [63] Q&A Session Summary Question: What changes are being implemented to improve sales efficiency? - The company is refining its go-to-market strategy by prioritizing high-value customers and optimizing its pricing model to enhance competitiveness [39][40] Question: Why is now a good time for Aware to initiate a more effective go-to-market strategy? - The current market conditions, including the prevalence of AI-driven fraud and consumer acceptance of biometrics, present a favorable environment for growth in the biometrics industry [47] Question: What drove the reduction in operating expenses for the year? - The reduction in operating expenses was due to a disciplined approach to cost optimization, including streamlining operations and reducing discretionary spending [50] Question: Do you expect the recent DOGE activity to impact the business? - The company is monitoring potential shifts in procurement patterns but believes its longstanding relationships and mission-critical solutions position it well to navigate changes [53][54] Question: Can you walk through the revenue changes for Q4 and the full year? - The increase in Q4 revenue was driven by a one-time license contract, while the full year decline was due to fluctuations in license sales based on government agency buying cycles [56][57] Question: How did the recurring revenue growth trend? - Annual recurring revenue increased by 9% year-over-year, although it fell short of the initial double-digit growth guidance [59] Question: Are you looking to implement M&A as a potential component of your growth strategy? - The primary focus remains on organic growth, but the company continues to evaluate strategic acquisition opportunities that could enhance its technology roadmap [61]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 10% to $4.8 million compared to $4.4 million in Q4 2023, driven by higher software license revenue, including a $1 million one-time license sale to a European government [25] - Recurring revenue for Q4 was $3.3 million, down from $3.7 million in the prior year, primarily due to timing of revenue recognition [25] - For the full year, total revenue decreased to $17.4 million from $18.2 million, attributed to lower software license revenue [28] - Full year recurring revenue grew by 9% to $12 million, making up 69% of total revenue [29] - Operating expenses decreased by 14% to $22.9 million for the full year, down from $26.8 million in the prior year [29] - GAAP net loss for Q4 was $1.2 million, or $0.06 per diluted share, compared to a loss of $4.2 million, or $0.20 per diluted share in Q4 2023 [26] Business Line Data and Key Metrics Changes - The increase in total revenue for Q4 was largely driven by higher software license revenue, while recurring revenue showed a slight decline [25] - The full year saw a decline in total revenue due to fluctuations in license sales, despite growth in recurring revenue [28][57] Market Data and Key Metrics Changes - The company noted that the biometrics industry is experiencing increased investment and demand, particularly in the context of rising AI-driven fraud [13][47] - Aware's technology is recognized as critical for national security, with a strong emphasis on partnerships with government agencies [14][52] Company Strategy and Development Direction - The company aims to deepen strategic partnerships, advance technological innovation, and scale sustainably to drive revenue growth [18][20][21] - Aware is focused on refining its go-to-market strategy to improve efficiency and unlock new revenue opportunities, particularly in the biometrics sector [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds and government budget constraints but emphasized a commitment to improving operational efficiency and positioning for sustainable growth starting in 2026 [16][22] - The CEO expressed confidence in the company's technology and strategic vision, indicating that the best days are ahead for Aware [23][34] Other Important Information - The company has a strong balance sheet with cash, cash equivalents, and marketable securities totaling $27.8 million as of December 31, 2024 [32] - The CEO highlighted the importance of biometric solutions in enhancing efficiency for government services, which positions Aware well amid evolving challenges [53] Q&A Session Summary Question: What changes are being implemented to improve sales efficiency? - The company is taking a more focused approach to sales, prioritizing high-value customers and optimizing pricing models to enhance competitiveness [39][40] Question: Why is now a good time for Aware to initiate a more effective go-to-market strategy? - The CEO noted that the current market conditions favor biometrics, with increasing consumer acceptance and investment in biometric solutions [47] Question: What drove the reduction in operating expenses for the year? - The reduction was due to a disciplined approach to cost optimization, including streamlining operations and reducing discretionary spending [50] Question: Do you expect recent DOGE activity to impact the business? - The company is monitoring potential shifts in procurement patterns but remains confident in its longstanding relationships with U.S. federal agencies [52][54] Question: Can you walk through the revenue changes for Q4 and the full year? - The increase in Q4 revenue was driven by a one-time license contract, while the full year decline was due to fluctuations in license sales [56][57] Question: How did the recurring revenue growth trend? - Annual recurring revenue increased by 9% year-over-year, although it fell short of the initial double-digit growth guidance [59] Question: Are you looking to implement M&A as a potential component of your growth strategy? - The company remains focused on organic growth but will evaluate strategic acquisition opportunities that could enhance its technology roadmap [61] Question: How many shares do you own? - The CEO purchased just under 1% of the company, reflecting confidence in Aware's long-term potential [63]

Group 1 - IDEX Biometrics has received a production order valued at approximately USD 50,000 from Beautiful Card Corporation for a biometric payment card program in the Japanese market [1] - Beautiful Card Corporation is positioned as a leader in the biometric smart card sector, focusing on payment and access cards globally [2] - IDEX Biometrics specializes in fingerprint biometrics, providing authentication solutions for payments, access control, and digital identity, leveraging patented technologies [3] Group 2 - The announcement was made in compliance with the EU Market Abuse Regulation and the Norwegian Securities Trading Act [5]