Core Viewpoint - BIO-key International, Inc. reported significant revenue growth in Q2'25, driven by increased sales in its biometric identity and access management solutions, particularly in the EMEA region [2][8]. Financial Performance - Q2'25 revenues increased by 49% to $1,696,907 from $1,141,286 in Q2'24, with notable contributions from software license fees, services, and hardware sales [8][10]. - Gross profit rose by 40% to $1,232,727, reflecting a gross margin of 73%, down from 77% in Q2'24 due to a higher proportion of lower-margin hardware sales [11][12]. - The net loss improved to ($1,167,396) or ($0.20) per share, compared to ($1,666,950) or ($1.00) per share in Q2'24, indicating better financial management and revenue growth [13][20]. Cost Management - Total operating expenses decreased by 8.5% to $2,316,577, with a 13.5% reduction in selling, general, and administrative expenses [12][6]. - Research and development expenses increased by 7.6% to $636,027, primarily due to higher personnel costs [12]. Market Initiatives - The company is launching the BIO-key CyberDefense Initiative to target the global defense market, capitalizing on increased European defense spending, which is expected to exceed €350 billion in 2026 [3][4]. - This initiative aims to position BIO-key as a trusted provider of multi-factor authentication and biometric solutions to defense ministries and intelligence agencies [4][5]. Product Development - The company is advancing a significant platform modernization for its PortalGuard IDaaS, with a targeted release in Q4'25, marking the first major upgrade since 2018 [6]. - Increased interest in biometric solutions and the adoption of passwordless, phoneless, and tokenless IAM solutions are expected to drive growth in 2025 [7]. Balance Sheet - As of June 30, 2025, total current assets were $4.0 million, including $2.3 million in cash and cash equivalents, compared to $1.9 million at the end of 2024 [14][21]. - The company reduced its note payable by $0.4 million, leaving a balance of $0.3 million [14].