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Good going BIO-key management, and all new 52-week low.
My prediction is that after the split it will sink even lower.
If anyone hears what the results were on the election, Please post.
Have you heard anything about the shareholder vote yesterday?
In all likelihood, the shares that were purchased we’re sold short by our fine friends at Maxum and the other shysters that we do business with.
Do you know what they say, there’s no honor Among thieves.
I’ve lost a small fortune on this piece of shit company. I have advised management on every occasion that they have wanted to do a reverse split that it was the worst thing they could do I believe I have actually said it is “the kiss of death“. And it has been each and every time.
I suppose as long as management collect a paycheck every week, life is good for them. Shareholders on the other hand get nothing out of it other than more dilution.
I have zero expectation of any thing successful out of this company. 20 years of trying to do the same thing over and over again with the same failed results. You would hope somebody would learn by now to do something at least different.
jonQ....Someone's been cutting a fat hog in this company with zero results for the investors. I have been in every reverse split Bio-Key has had with the promise it would make the company stronger. Lies, Lies, Lies. I'm done with it. I have lost to much to disclose.
Why should the board do anything, they collect their fee every quarter regardless of whether the company does well or not and of course over the past 20 years, they have done worse than Poor, it’s been a disaster.
And yet the board sits idly by.
I can’t help think of how wealthy I would be Head I put my money in any other company probably including Enron rather than BIO-key.
That’s about the time I invested in this company. It has been pretty much A disaster ever since.
About the only thing they have been successful in selling is worthless shares of stock.
This company’s greatest value is in their tax loss carry forward. If somebody acquired them, that would be worth probably $100 million discounted to maybe $20 million. That is the best reason that down the stock.
This is the biggest joke for a company I have ever dealt with. D o you think Mike has ever herd of a dividend as opposed to reverse. I have been sucked into this company with promises of good things are right around the corner. Bio-Key has never had anything to offer if you are curious why no sales. I invested in this company at the IPO over twenty years. I knew when they left Eagan,Mn and moved to New Jersey it was trouble. The boys can do most anything they want to in that state.
Voted my BIO-key proxies on the TD Ameritrade site.
I never got BIO-key proxy material. If you don’t vote your shares, is that considered a no vote or a yes vote?
Proxy vote?
Does anyone know when you need to vote your shares? I don’t recall getting any proxy material and for some reason I think the vote has to be in by tomorrow.
Not sure what the questions are to vote on other than I think it’s approving the reverse split. I am definitely voting against the reverse split and in all likelihood probably vote against whatever else they want me to vote for.
Well I think one of the reasons why nobody holds management accountable for 20 years of failure is because none of them have any vested interest in the company. Management doesn’t really own any stock other than the free stuff they get. I think they were happy collecting their board member fee and they don’t have to do much for it.
There is no strategic plan, they come up with some crazy idea try it for a couple of months and then move on to another crazy idea. How did that bike walk thing work out, whatever happened to the blood bags? What happened to the FBI business? I don’t believe we ever got a single follow one order after the original.
For the first time in 20 years, I decided I wasn’t even going to waste the hour of my time to listen to the conference call and indoor an hours worth of excuses why we didn’t get anything done and why we didn’t sell anything. The way I look at it it was an hour of my life that I saved rather than waste.
The stock is now trading at 1.7 cents per share, and will probably continue do you have lower.
Interesting how after getting on the NASDAQ, the share price plummeted. Drop the NASDAQ listing, it does nothing for us. We’re better off trading on the OTC eBay and hopefully a pump and dump. Company needs to start doing business with crocs like Maxum you have done nothing but screw us ever since we established a relationship with them. Maxim has done an outstanding job pumping the stock up shorting the hell out of it and then dumping it into the collapse of the share price. Four times now.
jonQ...I completely agree with you. Tell me why it is that every time Mike D holds a conf call no shareholder ever presses him on performance. How is it that BKYI invests in the Africa deal without ever taking a deposit? How is it that the board doesn’t hold exec management to a performance standard? Seems to me that there is something nefarious going on with this company. No board exercising proper oversight should allow this team to operate in this manner.
BIO-key International's (BKYI) CEO Mike DePasquale on Q3 2020 Results - Earnings Call Transcript
Nov. 12, 2020 2:40 PM ET | About: BIO-key International, Inc. (BKYI)
Earning Call Audio
BIO-key International, Inc. (NASDAQ:BKYI) Q3 2020 Earnings Conference Call November 12, 2020 10:00 AM ET
Company Participants
Scott Mahnken – Vice President of Channel Sales
Mike DePasquale – Chairman and Chief Executive Officer
Fred Corsentino – Chief Revenue Officer
Ceci Welch – Chief Financial Officer
Conference Call Participants
Jack Vander Aarde – Maxim Group
Operator
Good morning, ladies and gentlemen. Thank you for standing by, and welcome to BIO-key International’s Third Quarter 2020 Conference Call. During the presentation, all participants will be in listen-only mode. After the speakers’ remarks, you will be invited to participate in a question-and-answer session. As a reminder, this conference is being recorded today, Thursday, November 12, 2020.
I’d now like to turn the conference over to Scott Mahnken, BIO-key’s Vice President of Channel Sales. Please begin.
Scott Mahnken
Thank you for joining us this morning. With me today are BIO-key’s Chairman and CEO, Mike DePasquale; Fred Corsentino, our Chief Revenue Officer; and Ceci Welch, Chief Financial Officer. I’d like to remind everyone that today’s conference call and webcast may contain forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements.
The words project, estimate, intend, expect, anticipate, believe, plan, may, or will and similar expressions generally identify forward-looking statements. Such forward-looking statements are made based on management’s beliefs, as well as assumptions made and information currently available to management, pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
For a complete description of these and other risk factors that may affect the future performance of BIO-key International, see Risk Factors in the company’s Annual Report on Form 10-K and its other filings with the SEC. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The company also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made.
And at this time, I’d like to turn the call over to Mike DePasquale. Mike?
Mike DePasquale
Thank you, Scott, and good morning, everyone, and thank you for joining our call today. As we’ve all been dealing with the effects of coronavirus pandemic this past several months, I wanted to start off by thanking the entire BIO-key team, including our new colleagues at PistolStar for their hard work and commitment during these challenging times.
I also want to congratulate Scott Mahnken, who just read our Safe Harbor statement for assuming the very important new role of Vice President of Channel Sales for BIO-key. Though, the COVID-19 pandemic continues to impact our business in a variety of ways, the third quarter was a pivotal period for BIO-key, as we not only completed the recapitalization of the company, but we were able to build revenue momentum particularly with our integrated PortalGuard solution.
During the quarter, we began to see a gradual return to more normal sales and marketing dialogues. Though many of those are still remote meetings and many customer prospects have yet to fully reopen to IT event to dialogues, additionally, Q3 mark the first quarter incorporating the results of PistolStar and its PortalGuard multifactor, Identity and Access Management or IAM business.
PortalGuard has proven to be an ideal solution for challenges created by the pandemic as businesses and institutions grappled to provide user-friendly remote access. In particular PortalGuard has demonstrated growing traction with higher education institutions sinking to strengthen and streamline online access to educational resources for students, faculty, and administration as these institutions manage the spike in remote access requirements.
PortalGuard purchase formerly closed on June 30, the last day of Q2. And we made significant steps in advancing our strategic vision for the company during the third quarter. In July, we successfully recapitalized our company with the proceeds from a public offering of common stock and warrants. This funding has put BIO-key now on the strongest financial footing we’ve had in over a decade.
Importantly, it removes risk to our company from possible business disruptions related to COVID-19 or any other economic or political factors that could affect our company or our customers, and allow us to focus our full attention on growth initiatives. After repaying short-term note financings, funding the bulk of the PistolStar acquisition and addressing other working capital needs, BIO-key ended the third quarter with $18.4 million in cash and just $235,000 remaining on a note payable related to the PistolStar transaction.
Our financial strength also serves us well when dealing with large enterprise and government customer prospects, as well as partners who seek assurances of long-term strength when choosing partners for mission critical solutions. It also allows us to make prudent investments in our business such as building out our BIO-key Africa subsidiary and enhancing our sales and marketing team initiatives.
We’re now extremely well-positioned to execute on our backlog of over $75 million in contracts and to fully tap the sales potential of our expanded team, enhance product portfolio, growing customer relationships and expanded visibility in the lucrative growth market for identity solutions, including authentication, network security and access management.
Ceci will review our Q3 financial results, which improved showed solid top line improvements over Q2 2020 and the year ago third quarter. We expect this trend to continue into Q4 and 2021 supported by our contract backlog and a strong outlook for our solutions on a global basis with particular emphasis on North America, Africa and Asia.
As we mentioned in today’s press release, we are achieving initial traction in our African contracts, as we have commenced work on the first of the two large projects in Nigeria. These projects were delayed due to the COVID-19 pandemic, and then more recently following civil unrest related to the police as well as reformed concerns.
The Nigerian economy is now open. Business activity is beginning to return and our projects are beginning to move forward. The first project to get underway involves our providing software and hardware solutions and support of the Nigerian Ministry of Labor program intended to create employment opportunities for recent college graduates in Nigeria.
This program has gained even greater importance in the wake of the pandemic and its impact on employment. We’re planning initial hardware and software deployments with anticipated orders for approximately $650,000 in this current fourth quarter. We expect the project to ramp substantially over the next few quarters with total expected revenue of approximately $45 million by 2022.
We have another large scale project to provide biometric security solutions for secure authentication of customers for a major African telecom provider that is slated to start early next year. This project is expected to generate approximately $30 million of revenue over roughly two years.
On top of this, we are continuing to build out our BIO-key Africa subsidiary to support government Civil ID and business enterprise authentication and security opportunities across the African continent. We believe our breadth of multifactor authentication offerings coupled with our biometric expertise positions us well in this burgeoning growth opportunity across the continent.
For example, we are looking to team with channel partners to deliver biometric security solutions for identification needs in areas such as mobile communications and payments, immigration and border security and social welfare programs. Some of these initiatives are attracting international funding as well.
Additionally, PortalGuard is becoming an integrated part of our core business, providing a more robust product offering across a broader range of business verticals. These verticals include financial, government and highly regulated enterprises as well as higher education and state and local government. It’s not just market presence and customer reach, but we are now a larger company, in terms of engineering, product development and sales and marketing. Their substantial cross-selling or up-selling opportunity with BIO-key’s biometric technology solutions that can provide a more robust multi-factor identification and access management single sign-on to our existing PortalGuard customers. And we can also provide improved multi-factor IAM and SSO solutions to our existing BIO-key customers.
To enhance our marketing efforts where our expanded product suite, in August, we named Kimberly Johnson as our VP of Product Marketing. Kimberly’s charge is to provide cohesive marketing leadership across the company. And she brings the BIO-key a strong track record of success. Under her leadership, last week, we unveiled a brand new integrated corporate website to clarify our company and product messaging. Please be sure to visit our site at bio-key.com.
Finally, with respect to our outlook for Q4 beyond the comments we’ve made, we expect revenue to be substantially higher than in Q3. And we expect continued momentum carrying into 2021, driven by the growth of our core business and the ramp up of our African projects.
Let me now turn the call over to Fred Corsentino to highlight a few specific developments in our business. Fred?
Fred Corsentino
Thank you, Mike. As Mike said, Q3 was a better quarter in terms of both sequential and year-over-year revenue improvement and was achieved despite many projects in our pipeline being postponed or pushed into 2021 due to the pandemic. We have made progress migrating to our 100% subscription model, which includes both SaaS or cloud-based offerings, as well as on-prem offerings.
The PortalGuard SaaS platform is completed in Q3 with a strategic product launch that includes enterprise class, AWS, cloud infrastructure within a highly scalable system that is currently supporting over 35,000 end-users and can easily scale to support millions as we grow. We have many customers who are migrating to the SaaS platform, which is both better for customers budgeting and also provides BIO-key with an up-sell of stable recurring software revenue.
We also better integrating our marketing and sales functions around three key verticals, education, financial services and government. Kim Johnson, who was previously mentioned, was appointed to head this effort to integrate the overall marketing plan, tailoring specific tactics within each sales vertical.
For example, within the higher ed vertical, I know that one of Kim’s priorities is to target larger institutions. We really believed that given our recognition and current customer base, that we can become a more dominant player in this vertical. We also plan to target new partners, who align well vertically within each channel. In addition, we are also in the process of onboarding current Channel Alliance program partners to our PortalGuard platform under Scott’s direction, thereby expanding the potential reach of our solutions.
We also hired a strategic accounts executive late last month. Obviously, we’re very excited about building the team as we believe there’s a large market opportunity, both in the U.S. and abroad. And we are working to extend our Channel Alliance program beyond the U.S. and Africa to the Asian Pacific region and the Middle East.
On the last call, I said that we believe that the Pistol Star acquisition and the PortalGuard platform is a game changer for us. And you are just starting to see its impact in our revenue numbers and that trend should continue. Mind that with the exciting opportunity in Africa and we think we are set up well for 2021 and beyond as the pandemic receipts. We also think that the work from home and remote study are trends that will endure creating increased ID authentication and access management challenges that we are uniquely positioned to solve.
With that, I’ll pass the call to Ceci for the financial review. Thank you.
Ceci Welch
Thank you, Fred. BIO-key’s Q3 2020 revenues increased to $943,000 from $453,000 in Q3 2019, mainly due to higher license and service fees related to the Pistol Star acquisition, which closed on June 30 and are included in the Q3 2020 results. Hardware sales decreased by $12,000 due to less hardware included in customer deployments and no orders for locks due to BIO-key’s exit from the retail lock business.
For the nine months ended September 30, revenues increased to $1.77 million from $1.73 million during the comparable 2019 period, also primarily due to the higher license and service fees with the inclusion of the Pistol Star 2020 results, partially offset by the lower hardware sales. Gross margin improved to 78% Q3 2020 versus a negative gross margin in Q3 2019, primarily due to the non-cash software license amortization expense recorded in Q3 2019, which did not recur in Q3 2020. Adjusting for the software license amortization Q3 gross margin would have been approximately 50% on a comparable basis.
Q3 2020 operating expenses included $1.8 million from $1.2 million in the partially – excuse me, with the increase, primarily reflecting the inclusion of the Pistol Star operating expenses in the consolidation. Higher expenses also included new marketing personnel website integration of Pistol Star and additional costs associated with Pistol Star office staff and other expenses and cost associated with the setup of the African subsidiary.
Overall, BIO-key’s operating loss was reduced to $1.1 million in Q3 2020 versus $1.3 million in Q3 2019. Other expenses were $2.2 million in Q3 versus $558,000 in Q3 2019, primarily related to the amortization of the debt discount and debt issuance costs incurred as a result of the convertible debt financing.
BIO-key resulted in that – resulted net loss available to stockholders of $3.3 million or $0.06 per share in Q3 2020 compared with $1.8 million or $0.13 per share for Q3 2019. For the first nine months of 2020, BIO-key reported a net loss available to shareholders of $8.4 million or $0.28 per share versus $5.1 million or $0.36 per share for the first nine months of 2019.
In Q3, BIO-key completed the sale of common stock and warrants for the gross proceeds of $24.8 million, given the effect of the payment offering expenses and some accounts payable, as well as the retirement of $4.2 million of convertible notes. BIO-key has $18 million in cash and $235,000 to the note payable for the BIO-key – for the Pistol Star acquisition.
With that overview, I can now turn the call back to the operator for the investor questions. Operator?
Question-and-Answer Session
Operator
Thank you. At this time, we’ll begin the question-and-answer session. [Operator Instructions] Okay. Our first question comes from Jack Vander Aarde from Maxim Group. Please go ahead.
Jack Vander Aarde
Great. Thank you. Good morning. Hi, Michael and hi team. Thanks for taking my questions. Let’s see. So, it’s good to see the strong revenue results that exceeded my expectations this quarter, looks like Pistol Star definitely contributed nicely to the results. Wondering if – I don’t believe you disclosed it, but wondering if you’re able to provide either an explicit or maybe a rough estimate of what Pistol Star contributed to 3Q revenue
Ceci, I’ll turn that to you, what was the…
Ceci Welch
This was a part of 50-50 split in the quarter?
Mike DePasquale
Okay. So 50-50, Jack.
Jack Vander Aarde
50-50. Okay, that’s helpful. And then as you look at the next quarter here, obviously the elephants in the room here for you guys that could really move a needle, are these two large African contracts. And I appreciate the pretty granular update on the status of those. It’s encouraging to see that you expect one of them to start deployment and generate some revenues. Of the 650K of revenue, $650,000 expecting that one African contract in Q4, how much – how should I think about that at the segment level, in terms of the services revenue, licensing revenue and hardware? How would you expect that to be broken out just roughly?
Mike DePasquale
Yes. Jack, good question. And it’s one that I think we’ve addressed before, as we indicated as we start much of what we do will be delivering hardware and deploying hardware and putting that into the hands of the resources on the ground there. So you can look to that to be dominantly hardware.
Jack Vander Aarde
Got you. Okay. And then just curious, I don’t have as great of insight into how the deployment process and just deal with the whole plans are unraveling here. So just curious to know, why only 650K kind of revenue, initial hardware deployment, just relative to the $45 million opportunities, it’s such a minimal amount. So I’m just curious, what – why is it such a small piece upfront? Is that conservative too, it’s a room for upside there or is that just kind of was that expected?
Mike DePasquale
It’s an initial startup. So it’s what we expected at the outset when we would begin deploying our hardware and our services. So we were expecting this to begin back in Q2, obviously things have slipped. So no, it was expected, it clearly in purely his startup.
Jack Vander Aarde
Okay, understood. And then, I mean, do you have any insight maybe into just sticking with this particular contract, in terms of how the remainder of the revenue or the purchase order will be deployed or allocated throughout the quarters. Would you expect a sizable amount to then hit in Q1 2021 from that contract? Or is it really just still uncertain?
Mike DePasquale
No, no. We expect the ramp to sequentially grow quarter-over-quarter. So as we get going, as we begin deploying, we expect that the ramp meaning the revenue each quarter out through 2022 is going to grow. Obviously, this is – a $45 million is a significant number. So we’re going to have to see a significant ramp in deployment and delivery each quarter going forward.
Jack Vander Aarde
Okay, got it. That makes sense.
Mike DePasquale
And let me – let me interject one other item. Hopefully, as we get to the end of the year, beginning of next year, we’ll be able to predict and to be able to provide some guidance as to the deployment schedules and then ultimately what the order and revenue impact will be.
So I think, again, as we get through the end of this year, as we see things opening up, as we get more clarity on how things will proceed forward, we’ll be able to be more predictable. And with our PortalGuard business, as you know, it’s full and complete SaaS, and well, not – it’s full and complete subscription. Ultimately, as Fred described, we’re moving our customers to a SaaS platform. And right now we’re seeing great reception from our existing customers, as well as prospects. I think we’ll be much more predictable in 2021.
Jack Vander Aarde
Okay, fantastic. And that makes sense too. As it relates to moving your customers to a SaaS subscription kind of model for PortalGuard, has the – were any of those actively converted and contributing to revenue in terms of like a SaaS revenue contribution or those – is that going to expect it to really be active in Q4?
Mike DePasquale
No. As Fred described, we have customers on the SaaS platform. We have 35,000 end users that have been using the solution from the start of Q3 to the end of the quarter. So that’s going to continue to grow. This is in place and running and operating, and we expect that to grow dramatically.
Jack Vander Aarde
Okay, great, fantastic. And then if we just remove the – when I’m looking at the fourth quarter here and giving your comments, you’re very positive on your outlook of the – I think the overall business is, fair to say. So if I exclude the 650,000 you’re embedding from this Africa contract, would you still – what’s your confidence level or uncertainty and outlook on the non-Africa related revenue. Would that be up – how confident are you that would be up Q over Q, year-over-year in Q4?
Mike DePasquale
Highly confident.
Jack Vander Aarde
Got it. Okay, great. And then just lastly, maybe just a quick question for Ceci, because I didn’t see the – I don’t think the 10-Q is out yet. Do you have the stock-based comp number on hand for the third quarter?
Ceci Welch
I believe that was around $30,000 for this third quarter.
Jack Vander Aarde
The total stock comp.
Ceci Welch
Yes.
Jack Vander Aarde
Got it, fantastic. All right. Michael, I appreciate the update. Ceci, thank you for the data point. It’s great to see the momentum building. It sounds like deployment of these major needle moving contracts is finally on its way. So congrats on the progress update and I’ll hop back in the queue.
Mike DePasquale
Thank you, Jack.
Operator
[Operator Instructions] There are no questions in the queue. This concludes our question-and-answer session. I’ll turn the call back over to Mike DePasquale for closing remarks.
Mike DePasquale
Great. First, I want to thank everyone for participating in today’s call. We look forward to updating you on our next quarterly call. And of course, we’ll continue to provide interim news updates and reports as warranted. Thank you, everyone. Stay safe, and stay healthy.
Operator
The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
I told Mike the last two times he did a reverse split that it was “the kiss of death“. I have been right both times.
BIO-key wants to get their share price up so they can stay on the NASDAQ, they need to focus on what the market for that product is and how to sell into that market. Clearly it’s something they have failed to do for the last 20 years.
I Health 5.4 million shares of this company through reverse splits I now only have about 225,000 shares that was pretty close to our 20 year low share price.Do the math, I’m down close to $1 million on this POS.
BIO-key needs to clean house and terminate most of the people that work there. They had 20 years to do something to grow this company and have failed.
BIO-key announced a $75 million opportunity in Africa about a year ago. Since then, not one single penny has been booked as revenue. Announcement is such a joke that nobody believes he’ll ever get a penny from that so-called water and that’s the reason why the stock is trading at an all time low.
If they’re doing this reverse split and all this other BS to maintain the NASDAQ listing, my advice is, drop the NASDAQ listing. It has done nothing for us and ever since getting that listing the share price has done nothing but go down. Plenty of companies do very well on the OTCBB. The track to success is selling something.
Clean house, restructure the company and maybe they can sell something and get paid for it.
You are correct! They can’t live up to their promises and somehow believe with smoke and mirrors that cash on hand is going to impress someone. No explanation why a reverse split is necessary when they are about to cash in on huge Africa deal. Don’t hold your breath for this company to deliver.
Can someone explain to me why BIO-key is making a big deal out of having $18 million in cash on the books?
That cash is nothing more than a result of selling more worthless stock and diluting shareholders once again.
If the company actually sells something, gets paid for and takes send some revenue and ultimately shows a profit, that will be a time to get excited. Selling worthless stock diluting the company is something any dope can do. Very misleading and dishones.
Sell something ship it, get paid for it and then you can listed as a revenues. Otherwise, this report you’re nothing but BS.
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Biometric and Multi-Factor Identity and Access Management Provider BIO-key Reports Q3 Revenue of $943K and $18.4M Cash Position; Hosts Investor Webcast Today at 10am ET
WALL, N.J., Nov. 12, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (Nasdaq: BKYI), an innovative provider of biometric and other multi-factor identity and access management (IAM) solutions for strong, convenient user authentication and large-scale identity applications, today reported results for its third quarter ended September 30, 2020 (Q3’20). BIO-key will host a conference call today at 10:00 a.m. ET (details below) to review its results and outlook.
Recent News and Highlights:
BIO-key ended Q3’20 with $18.4M of cash reflecting the completion of a $24.8 million underwritten public offering of stock and warrants in July.
Q3’20 revenue of $943K or more than double Q3’19 revenue of $453K. BIO-key’s Q3’20 results benefitted from the acquisition of PortalGuard® developer PistolStar. PortalGuard is an enterprise multifactor authentication and single sign-on platform deployed and used by millions of users at hundreds of customers around the world, with particular strength in education.
PortalGuard continues to be deployed by educational institutions across the U.S., including in Florida, Pennsylvania, North Carolina, Georgia, California, Guam, and Washington D.C., as well as by a major nonprofit healthcare organization, a global medical device company, a major municipality, and the U.S. General Services Administration.
A multinational agriculture company also deployed BIO-key’s biometric software solutions and PIV-pro finger print readers to secure system access by workers at two facilities in California with the potential to add additional facilities in coming months.
BIO-key’s biometric user access solution for voter registration data was utilized across 45 counties in two states during recent elections.
BIO-key’s Channel Alliance Program continues to expand and now includes 50 partners worldwide.
One of two large African contracts is expected to commence in Q4’20, with anticipated orders of $650K for an initial deployment.
BIO-key expects Q4 performance to continue to improve from Q3 levels, with continued momentum into FY 2021.
BIO-key CEO Michael DePasquale commented, “Despite lingering business development challenges posed by the COVID-19 pandemic, Q3 proved a pivotal and exciting quarter for BIO-key as we completed the recapitalization of the Company and built revenue momentum for our new PortalGuard solution. We began to see a return to more normalized sales and marketing dialogues following a very challenging Q2 during which most customer IT decision-making had been put on hold. We are now seeing business activity slowly moving to a more normal pace and level of engagement. Importantly, Q3’20 marked the first quarter incorporating results of our PistolStar/PortalGuard business, and we saw very strong traction for the solution, particularly within higher education institutions seeking to strengthen and streamline online access to educational resources for students, faculty and administration.
“In recent weeks we have also seen initial traction in Africa as we have commenced work on the first of our two large projects in Nigeria. The projects have been delayed due to the COVID-19 pandemic, and more recently some civil unrest, however business activity has begun to normalize with the opening of the economy and the projects are beginning to move forward. The first contract is an approximate $45M project to provide biometric software and hardware solutions in support of a Nigerian Ministry of Labour program to create employment for one million recent college graduates in Nigeria. It appears that this program has become an even more important priority in the wake of the economic disruption from the pandemic. We look to close an initial deployment for this project this month with anticipated orders for $650k in the fourth quarter and we expect the project to scale substantially over the next two years.
“Additionally, our $30M project to provide biometric security solutions to securely authenticate millions of customers for an African telecommunications company is now slated to start in 2021. Further, we are building out our BIO-key Africa subsidiary to support growth objectives in the Civil ID and enterprise security markets across the African continent. We continue to believe our unique suite of biometric and multifactor authentication solutions are extremely well matched for a wide array of opportunities across Africa.
“PortalGuard was an important contributor to Q3 revenues of $943K, which more than doubled our Q3’19 revenues. PortalGuard adds high margin, recurring license and maintenance revenue, as evidenced by a 78% gross margin achieved in Q3’20. PortalGuard substantially expands our software product offerings and potential available market particularly in key verticals, such as higher education, financial services, and state and local government. The acquisition also bolstered our sales, marketing and R&D teams while increasing our customer base and providing significant cross-selling opportunities.
“To provide cohesive marketing leadership across the company, in August we appointed Kimberly Johnson as V.P. of Product Marketing. Kimberly is a talented, experienced marketing executive with a strong track record in shaping and executing go-to-market strategies, effective positioning, messaging and demand creation. Under her leadership, we recently unveiled a brand new integrated corporate website to clarify and strengthen our messaging and to enhance our marketing efforts.
“In summary, it is a very exciting time for BIO-key as we progress into 2021 with an enhanced product suite, an expanded team of professionals, tremendous financial strength, and a growing base of opportunities around the globe.”
Q3 2020 Results
Q3’20 revenues more than doubled to $943,000 from $453,000 in Q3’19, due primarily to a full quarter’s contribution from the PistolStar/PortalGuard acquisition which closed on June 30.
Gross margin improved to 78% in Q3’20 as compared to a negative 12% gross margin in Q3’19, due primarily to $281,250 in non-cash software license amortization expense recorded in Q3’19 which did not recur in Q3’20.
Q3’20 operating expenses increased to $1.8 million from $1.2 million, primarily reflecting the inclusion of PortalGuard operating expenses in consolidation. BIO-key reported a Q3’20 operating loss of $1.1M compared to $1.3M in Q3’19.
BIO-key’s Q3’20 results reflect $2.2M of net interest expense, consisting primarily of amortization of costs associated with the repayment of the Company’s convertible notes, compared to net interest expense of $0.6M in Q3’19.
BIO-key reported a net loss available to stockholders of $3.3M, or $0.06 per basic share, in Q3’20 compared to a net loss of $1.8M, or $0.13 per basic share, in Q3’19. Weighted average basic shares outstanding were approximately 51.5M in Q3’20 compared 14.4M in the third quarter of 2019.
Financial Strength
At the close of Q3’20, BIO-key had $18.4M in cash, reflecting the net proceeds of public offering of common stock and warrants, the repayment of $4.23M of convertible notes, and the payment of approximately $0.5M of accounts payable. Additionally, BIO-key had $235,000 of remaining notes payable related to the PistolStar acquisition.
Conference Call Details
Date / Time:
Call Dial In #:
Live Webcast / Replay:
Audio Replay: Today, Thursday, November 12th at 10 a.m. ET
1-877-418-5460 U.S. or 1-412-717-9594 International
Investor Webcast & Replay – Available for 3 months.
1-877-344-7529 U.S. or 1-412-317-0088 Int’l; code 10149810
About BIO-key International, Inc. (www.bio-key.com)
BIO-key is revolutionizing authentication with biometric centric, multi-factor identity and access management (IAM) solutions, including its PortalGuard IAM solution, that provide convenient and secure access to devices, information, applications and high-value transactions. BIO-key’s proprietary software and hardware solutions, with industry leading biometric capabilities, enable large-scale on-premise and Identity-as-a-Service (IDaaS) solutions as well as customized enterprise and cloud solutions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to execute and deliver on contracts in Africa; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of PistolStar into our business; the duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, sales cycles, personnel, and the geographic markets in which we operate; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption see "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company undertakes no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise. Additionally, there may be other factors of which the Company is not currently aware that may affect matters discussed in forward-looking statements and may also cause actual results to differ materially from those discussed. In particular, the consequences of the coronavirus outbreak to economic conditions and the industry in general and the financial position and operating results of our Company in particular have been material, are changing rapidly, and cannot be predicted.
Facebook – Corporate:
Twitter – Corporate:
Twitter – Investors:
StockTwits: BIO-key International
@BIOkeyIntl
@BIO_keyIR
BIO_keyIR
Investor & Media Contacts
William Jones, David Collins
Catalyst IR
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bkyi@catalyst-ir.com
BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30,
2020 December 31,
2019
(Unaudited)
ASSETS
Cash and cash equivalents $ 18,395,508 $ 79,013
Accounts receivable, net 492,380 126,000
Due from factor 63,262 110,941
Note receivable 295,000 -
Inventory 399,396 429,119
Prepaid expenses and other 204,019 108,397
Investment 516,121 512,821
Total current assets 20,365,686 1,366,291
Resalable software license rights 68,758 73,802
Equipment and leasehold improvements, net 78,941 95,509
Capitalized contract costs, net 149,860 231,519
Deposits and other assets 8,712 8,712
Operating lease right-of-use assets 556,915 566,479
Intangible assets, net 1,617,171 154,386
Goodwill 1,132,526 -
Total non-current assets 3,612,883 1,130,407
TOTAL ASSETS $ 23,978,569 $ 2,496,698
LIABILITIES
Accounts payable $ 314,546 $ 844,557
Accounts payable – related party - 188,737
Accrued liabilities 399,756 572,885
Convertible notes payable, net of debt discount and debt issuance costs - 2,255,454
Note payable – PistolStar, net of debt discount 235,000 -
Deferred revenue 813,505 359,212
Operating lease liabilities, current portion 229,853 170,560
Total current liabilities 1,992,660 4,391,405
Operating lease liabilities, net of current portion 325,454 390,466
Total non-current liabilities 325,454 390,466
TOTAL LIABILITIES 2,318,114 4,781,871
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock — authorized, 170,000,000 shares; issued and outstanding; 62,376,443 and 14,411,432 of $.0001 par value at September 30, 2020 and December 31, 2019, respectively 6,237 1,441
Additional paid-in capital 119,748,463 87,436,402
Accumulated deficit (98,094,245 ) (89,723,016 )
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 21,660,455 (2,285,173 )
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 23,978,569 $ 2,496,698
BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
September 30, Nine months ended
September 30,
2020 2019 2020 2019
Revenues
Services $ 491,535 $ 237,372 $ 928,561 $ 710,975
License fees 346,479 98,272 605,366 241,780
Hardware 105,311 117,070 239,025 779,965
Total Revenues 943,325 452,714 1,772,952 1,732,720
Costs and other expenses
Cost of services 173,823 65,683 336,940 214,933
Cost of license fees 10,775 369,604 29,486 1,119,147
Cost of hardware 27,011 73,366 117,900 458,049
Total costs and other expenses 211,609 508,653 484,326 1,792,129
Gross Profit (Loss) 731,716 (55,939 ) 1,288,626 (59,409 )
Operating Expenses
Selling, general and administrative 1,512,241 915,066 4,105,568 3,350,770
Research, development and engineering 331,213 300,131 986,675 975,466
Total operating expenses 1,843,454 1,215,197 5,092,243 4,326,236
Operating loss (1,111,738 ) (1,271,136 ) (3,803,617 ) (4,385,645 )
Other income (expense)
Interest income 1,106 19 26,908 143
Government grant – Paycheck Protection Program - - 340,819 -
Interest expense (2,204,920 ) (558,449 ) (4,323,577 ) (673,316 )
Loss on extinguishment of debt - - (499,076 ) -
Total other income (expense), net (2,203,814 ) (558,430 ) (4,454,926 ) (673,173 )
Net loss (3,315,552 ) (1,829,566 ) (8,258,543 ) (5,058,818 )
Deemed dividend from trigger of anti-dilution provision feature - - (112,686 ) -
Net loss available to common stockholders $ (3,315,552 ) $ (1,829,566 ) $ (8,371,229 ) $ (5,058,818 )
Basic and Diluted Loss per Common Share $ (0.06 ) $ (0.13 ) $ (0.28 ) $ (0.36 )
Weighted Average Shares Outstanding:
Basic and Diluted 51,486,756 14,387,467 29,305,427 14,163,120
Don’t hold your breath. My guess is at some point they will announce that their Africa deal was another boondoggle and their only recourse is another shareholder devaluation. Jmho
BIO-key, Provider of Identity Access Management Solutions Powered by Biometrics, Hosts Q3 Investor Call Thursday, Nov. 12th at 10am ET
WALL, N.J., Nov. 04, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), an innovative provider of identity access management (IAM) and large scale identity solutions, including industry leading biometric capabilities, will host a conference call to review its third quarter 2020 results on Thursday, November 12, 2020 at 10 a.m. ET (details below). Results will be reported prior to the market’s opening. Mike DePasquale, Chairman & CEO, Cecilia Welch, Chief Financial Officer, and Fred Corsentino, Chief Revenue Officer, will participate on the call.
Conference Call Details
Date / Time: Thursday, November 12th at 10 a.m. ET
Call Dial In #: 1-877-418-5460 U.S. or 1-412-717-9594 International
Live Webcast / Replay: Investor Webcast & Replay – Available for 3 months.
Audio Replay: 1-877-344-7529 U.S. or 1-412-317-0088 Int’l; code 10149810
About BIO-key International, Inc. (www.bio-key.com)
BIO-key is revolutionizing authentication with biometric centric, multi-factor identity and access management (IAM) solutions, including its PortalGuard solution, that provide convenient and secure access to devices, information, applications and high-value transactions. BIO-key’s proprietary software and hardware solutions, with industry leading biometric capabilities, enable large-scale on-premise and Identity-as-a-Service (IDaaS) solutions as well as customized enterprise and cloud solutions.
Engage with BIO-key
Facebook – Corporate: BIO-key International
Twitter – Corporate: @BIOkeyIntl
Twitter – Investors: @BIO_keyIR
StockTwits – Investors: BIO_keyIR
Investor & Media Contacts
William Jones, David Collins
Catalyst IR
212-924-9800
bkyi@catalyst-ir.com
CCDDAY, Oh boy, wouldn’t that be special!
I’m betting within 10 days after ramming another reverse split down our throats, is when Mike D drops the news that his big Africa deal soured.
Marion Technical College Selects BIO-key's PortalGuard Identity and Access Management Solution for Improved Access and Security to Critical Applications
WALL, N.J., Oct. 21, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), an innovative provider of identity and access management (IAM) solutions powered by biometrics, today announced that Marion Technical College, located in Marion, Ohio, has selected BIO-key's IAM to deliver cost-effective and secure Two-Factor Authentication (2FA) and seamless Single Sign-On (SSO) for mission-critical applications and data.
Marion Technical College sought to provide students, faculty, and administrators with more secure and frictionless access to applications like Office 365, Canvas LMS, and PowerCampus to improve the user experience while enhancing access security to institutional data. Implementing SSO transparently to users makes the college function better. Before SSO, it was common for users to have different logins (i.e., multiple usernames and passwords) for each system, department, etc. This led to considerable user frustration and higher support costs for the college. Because a single set of credentials allows access to so many systems, it was essential to provide end-users with two-factor authentication as an effective countermeasure against cybercriminals and unauthorized access to accounts.
"The combination of SSO and 2FA allows us to provide our customers with both the incredible value of a single set of credentials as well as a higher level of security to protect their critical data," stated Mark Cochran, President of BIO-key - PortalGuard. "With students increasingly learning in digital formats, the ability to securely connect to educational systems is an important element within a safe and supportive learning environment. Many higher education institutions are pursuing initiatives for this type of cybersecurity improvement, and we are here to help other institutions to follow suit."
About BIO-key International, Inc. (www.bio-key.com)
BIO-key is revolutionizing authentication with biometric solutions that enable convenient and secure access to devices, information, applications, and high-value transactions. BIO-key's software and hardware finger scanning solutions offer secure, user-friendly, and attractively- priced alternatives to passwords, PINs, tokens, and security cards, enabling enterprises and consumers to secure their networks and devices as well as their information in the cloud.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to execute and deliver on contracts in Africa; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of PistolStar into our business; the duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, sales cycles, personnel, and the geographic markets in which we operate; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption see "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company undertakes no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise. Additionally, there may be other factors of which the Company is not currently aware that may affect matters discussed in forward-looking statements and may also cause actual results to differ materially from those discussed. In particular, the consequences of the coronavirus outbreak to economic conditions and the industry in general and the financial position and operating results of our company in particular have been material, are changing rapidly, and cannot be predicted.
Facebook – Corporate:
Twitter – Corporate:
Twitter – Investors:
StockTwits:
BIO-key International
@BIOkeyIntl
@BIO_keyIR
BIO_keyIR
Investor & Media Contacts
William Jones, David Collins
Catalyst IR
212-924-9800
bkyi@catalyst-ir.com
What makes you think that?
If Mike D goes down, he will take the rest of BIO-key down with him.
I am all for changing board members and firing Mike D.
Vote NO - enough is enough!!!!
I agree VOTE NO!!
I for one am tired of all their lies and deals that never really happen.
We should also start replacing board members for their failing effort.
This has gone on TOOOOO long.
Totally agree.
I already voted against it this morning and I'm glad to see others thinking the same way.
Vote AGAINST a reverse split! Hold board accountable for constant failings!!
New Mexico’s San Juan College Deploys BIO-key's PortalGuard Identity and Access Management Solution for Frictionless, Cost-Effective Single Sign-on
WALL, N.J., Oct. 14, 2020 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), an innovative provider of identity and access management (IAM) solutions powered by biometrics, today announced that San Juan College, located in Farmington, New Mexico, has deployed BIO-key's PortalGuard Identity and Access Management solution. The BIO-key solution provides increased security and supports a broader array of Single Sign-On (SSO) protocols, enabling end-users to easily access all of their cloud and web applications without having to authenticate into each application individually.
PortalGuard is not the College's first foray into Identity Management. It replaces a freely available IAM platform that was not easy to configure and did not support all the SSO protocols they required. With PortalGuard, organizations can consolidate multiple login prompts by leveraging a robust IAM solution, eliminating complexity inherent with their former solution. The San Juan College IT team chose PortalGuard as their "one-stop shop" IAM solution to access enterprise applications like Canvas, Sharepoint, Colleague, and Office 365. Furthermore, the college plans to leverage PortalGuard's Self-Service Password Management and Multi-Factor Authentication capabilities to gain maximum value from their investment in the solution.
"PortalGuard's minimal customization requirements and streamlined licensing model can save organizations significant resources and deliver quick time to value," stated Mark Cochran, President - PortalGuard. “There are times when a free solution is not exactly free, and cybersecurity is not an area to shortcut. PortalGuard is well known for its simplicity and ease of use, providing frictionless SSO, secure two-factor authentication options, and self-service capabilities. The rapid growth in our customer base demonstrates that we deliver what organizations require to address today's threats with rapid deployment, scalability, and on-demand access to security expertise."
About BIO-key International, Inc. (www.bio-key.com)
BIO-key is revolutionizing authentication with biometric solutions that enable convenient and secure access to devices, information, applications, and high-value transactions. BIO-key's software and hardware finger scanning solutions offer secure, user-friendly, and attractively- priced alternatives to passwords, PINs, tokens, and security cards, enabling enterprises and consumers to secure their networks and devices as well as their information in the cloud.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology industry; market acceptance of biometric products generally and our products under development; our ability to execute and deliver on contracts in Africa; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of PistolStar into our business; the duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, sales cycles, personnel, and the geographic markets in which we operate; delays in the development of products and statements of assumption underlying any of the foregoing as well as other factors set forth under the caption see "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019 and other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the Company undertakes no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise. Additionally, there may be other factors of which the Company is not currently aware that may affect matters discussed in forward-looking statements and may also cause actual results to differ materially from those discussed. In particular, the consequences of the coronavirus outbreak to economic conditions and the industry in general and the financial position and operating results of our company in particular have been material, are changing rapidly, and cannot be predicted.
Facebook – Corporate:
Twitter – Corporate:
Twitter – Investors:
StockTwits:
BIO-key International
@BIOkeyIntl
@BIO_keyIR
BIO_keyIR
Investor & Media Contacts
William Jones, David Collins
Catalyst IR
212-924-9800
bkyi@catalyst-ir.com
CCDDAY, I think it might be better to see if management actually does something for the shareholders, rather than have the SEC shut the company down. Then again, I don’t hold any shares, so I am really just a spectator at this point.
Isn’t it time we shareholders band together and request a formal inquiry? Clearly, repeated promises, repeated unfulfilled contracts and repeated shareholder dilution will not weather the test of governmental scrutiny. I am also surprised that when BKYI holds their conference calls, Mike D is not pressed to a greater degree on what really seems to be a repeated pattern of lies.
CCDDay, Isn’t it sad that the NASDAQ says they are a “stock trustworthy” exchange, but yet, they allow a ticker to perform just like an OTC Pink. jmho
Ain’t it the truth Wick
I wholeheartedly agree with you!!! They always promise and disappoint. If their big deal was real then why didn’t they collect a deposit?
"If their big African deal were real this wouldn’t be necessary."
totally agree. Why would you do a reverse split with a huge contract in the works.
just go to otc and wait until things change.
I have quite a few stocks in OTC over a dollar and doing great.
Why take shares from shareholders again.
Disgusted Long Term shareholder
If their big African deal were real this wouldn’t be necessary. Nothing but an ongoing sham here. JMHO
Constant kicks in the sack here, over and over and over and over again!!!
another reverse split , what a shame.
can't keep the stock over a buck so shareholders get screwed again.
doesn't show much faith in the company,
i would rather see the company go back to OTC
big disappointment
ty, appreciate the info.
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Nothing in the contents transmitted on this board should be construed as an investment advisory, nor should it be used to make investment decisions. There is no express or implied solicitation to buy or sell securities. The author(s) may have positions in the stocks or financial relationships with the company or companies discussed and may trade in the stocks mentioned. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. All information should be considered for information purposes only. No stock exchange has approved or disapproved of the information here.
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