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CEO bought 2K more shares 6/16/21 at $4.
https://www.sec.gov/Archives/edgar/data/1019034/000143774921015001/xslF345X03/rdgdoc.xml
Yukon is short? 725K short as of 4/30/21. They're getting worried?
Not just CEO bought. Jim Sullivan as well 10K.
I can't remember ever seeing the substantial doubt clause removed in their 10K before:
Going Concern and Basis of Presentation
We have historically financed our operations through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. We currently require approximately $735,000 per month to conduct our operations, a monthly amount that we have been unable to consistently achieve through revenue generation. During 2020, we generated approximately $2,837,000 of revenue, which is below our average monthly requirements. During 2020, we raised approximately $24,000,000 from financing activities and at December 31, 2020 had approximately $17,000,000 in cash. As of the date of this report, the Company has enough cash for twelve to eighteen months of operations, and therefore, there is no longer uncertainty in our going concern status.
http://irdirect.net/filings/viewer/index/1019034/000143774921007486/
CEO has bought twice, not once. Four times if you count the two times in June.
And not just the CEO:
https://www.sec.gov/Archives/edgar/data/1019034/000143774920024691/xslF345X03/rdgdoc.xml
Open market buy: 5000 @ $3.25 11/24/20
https://www.sec.gov/Archives/edgar/data/1019034/000143774920024387/xslF345X03/rdgdoc.xml
EXPLANATORY NOTE
This Amendment No. 1 on Form 10-K/A (the “Amendment”) amends BIO-key International, Inc.’s (the “Company”, ”we” or “us”) Annual Report on Form 10-K for the year ended December 31, 2018, which was originally filed with the Securities and Exchange Commission on April 1, 2019 (the “Original 10-K”). This Amendment is being filed solely to amend Item 8 for the purpose of including a revised report of our Independent Registered Public Accounting Firm and Item 16 for the purpose of including a revised Exhibit 23.1.
Except as described above, this Amendment does not modify or update any disclosures in the Original 10-K. Accordingly, this Amendment No. 1 does not reflect events occurring after the filing date of the Original 10-K. As required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by our principal executive officer and principal financial officer are being filed as exhibits to this Amendment.
Note IAM4 has backed off from saying all the ID Directors are 3rd Party. He was absolutely certain any and all ID Director's were OEMed a few weeks ago, by multiple OEMs! Now it's just the version for Windows. If ID Director for Windows is 3rd Party software, then somebody else must have developed WEB-key, because that's what his claim amounts to. When BKYI sells software their gross margins are wildly high, but no matter. I'd bet if a special counsel investigated and said there's no evidence that BKYI OEMs ID Director, it wouldn't sway him.
He claims he's a technologist. Well he certainly doesn't understand BIO-key's technology or the technology of accounting, or even the basics of investing. The fact that $4M in revenues was moved from the 4Q to the 1Q is irrelevant. The cash flow is what matters and the fact is that $550K is coming in every month for the next 7 quarters. BKYI essentially has it's opex paid for by this single contract for the next 2 years. Everything else is gravy. Looking at so-call competitors, they're selling for 10 to 30X sales, and BKYI is selling for 1 to 2. If someone doesn't want to believe they're going to make $11-14M in 2019, well that's fine, but between China and maintenance, I think they've easily got $8M already in the bag. For anyone to not recognize that BIO-key is under-valued on that basis alone, and not recognize that BIO-key is in the best financial condition it has ever been in in it's entire history, well that's no pro in my book.
So IAM4 apparently is "out", but still owns the stock? More confusion.
JMHO, IAM4 will be as wrong about this stock in the next 18 months as he is about ID Director.
Looks like I got my call wrong.
Did some research on this new rule ASC 606. https://www.iasplus.com/en-us/standards/fasb/revenue/asc606. New revenue recognition rule was put into place in mid-2014 but the start date was delayed for reporting until after 12/15/17, essentially until 2018. The revenue recognition issue should have been known about by Dec 2018 when they indicated the entire $5M could be taken as revenue, or maybe there was some kind of judgment call. But looks like they got blindsided by the auditors.
Also, bad news on the write-down in that the chances look fairly slim on collection. Not clear why they're letting the project proceed without payment, but auditors are probably pushing them to clear their books of this receivable as well.
Still, 11 payments of $555,000 for the year amounts to $6,105,000. With op ex running at $6.7M, and assuming only $150,000 a quarter in maintenance, it looks like they're pretty much at EBITDA breakeven already. They've never entered a year like this before. Assuming the $600K in maintenance (conservative) and another $1M (WAG) from already announced contracts, that's about $7.7M. Means they have to come up with $3.3M from their pipeline over the next 9 months. That's probably why the buyers are scarce at the moment.
I think the warrant number of $1.50 is now again a ceiling, until something is announced which makes clear that they will hit the low end of their guidance. The warrants expire in October, so that's going to be an interesting dynamic to watch as it plays out. On the low-end, given no material changes to the Chinese deal, the risk of dropping sub-$1 seems pretty small.
JMHOs.
Breakout today out of a head and shoulders bottom, up over it's 9 month trendline and above it's 150 day moving average, which looks to have turned upwards as well, on big volume.
Don't think $1.50 will hold as resistance this time as consensus estimate for 4Q is $0.06 and I think BIO-key blows that out of the water. Going to be hard for the market to yawn at the 4Q results, if they deliver as promised.
Clearme is not competition. BIO-key doesn't operate in that venue (airports, sports arenas, etc.)
On the other hand, who knows, maybe if Clearme's population gets big enough, we'll hear about a partnership.
Well IAM4, I disagree with you, apparently SeanBoy disagrees with you, and I'm unwilling to accept that "you just know" when all evidence points to the contrary. In any case, I've made my point to the board, and time will tell who's right on ID Director. If you're right then we'll be able to see it in low gross margins on license/subscription revenues for ID Director. So let's just see how this plays out.
CEO is 63, per https://www.bloomberg.com/research/stocks/people/person.asp?personId=4155426&privcapId=387199.
And now the claim is he has 8M out of 14M outstanding shares???
Lol, fact checking on this board would be a full-time job. Or maybe I'm just missing the jokes.
SeanBoy,
Just setting the record straight. BIO-key has been announcing a lot of ID Director sales in the last couple years, and they are accelerating. I think in fact the gross margins are going to be quite good.
IAM4, you say: "For the record, I don't think there is a negative implication in the fact that BIO-key OEMs ID Director for Windows."
Yet this de facto assertion itself is a negative, and a few days ago you explicitly cast doubt on BIO-key's gross margins on ID Director: "Does BKYI profit significantly on ID Director for Windows as an OEM of OmniPass, or is there a profit-share that favors the OEM?"
Certainly it is a negative if BIO-key loses the lion's share to an OEM.
Apparently the only evidence you can provide indicating ID Director is Omnipass (or as of your last post, it is now one of TWO different OEM products), is because you don't think that BIO-key has the necessary expertise. You say:
"It's a totally different technology that integrate with Windows clients and Active Directory, than it is to perform large-scale fingerprint identification. So, leave the experts in the respective fields to partner with each other...Both are excellent products. My point was that BIO-key has to pay for them, since they didn't develop the products themselves. They buy a license, and they sell a license. Whatever profit they make, is good for BKYI. But it's a bit misleading to make statements that encourage investors to think that BIO-key developed ID Director for Windows. They didn't write a single line of code."
Yet you have provided ZERO evidence of this. If BIO-key was licensing this product, it would be a material fact and would have to be stated or publicly announced somewhere. Actually, all that ID Director for Windows is, is simply WEB-key with an Active Directory component. Microsoft provides the tools for any moderately skilled programmer to develop such an integrated component. Now maybe what's confusing you is that there's ID Director for Windows, ID Director for Allscripts (https://allscriptsstore.cloud.prod.iapps.com/applications/id-13010/ID_Director), for Epic, etc. It's a port of BIO-key's API into a particular venue. Also, you may be confused because in 2011 BIO-key did integrate their matching algorithm into Softex for a telecom company (https://www.sec.gov/Archives/edgar/data/1019034/000143774912003884/ex99-1.htm):
"Launched a new program with OEM partner Softex to integrate BIO-key algorithm within Softex software to provide fingerprint sign on and authentication for 10,000 retail employees of a major wireless telecommunications company."
But this had nothing to do with ID Director. In fact, BIO-key was already selling the ID Director product or a version of this product at the time of that Softex bullet in their docs:
http://www.nbcnews.com/id/43222458/ns/business-press_releases/t/bio-key-internationalr-helps-nationwide-childrens-hospital-meet-compliance-regulations-ohio-board-pharmacy/#.XGHNdVVKhhE
2011: "BIO-key's Positive ID Director, is powered by BIO-key's award winning software. In addition to Nationwide Children's Hospital, BIO-key software is utilized by leading hospitals, blood banks, EMR & EHR providers and healthcare facilities throughout the United States and by commercial enterprise and government agencies across the globe."
But let's look more recent:
https://globenewswire.com/news-release/2018/07/27/1543327/0/en/BIO-key-Granted-U-S-Patent-for-Accelerating-Biometric-Searches-Using-Adaptive-Indexing.html
"The adaptive biometric indexing technology covered by this patent is utilized today in BIO-key’s core Vector Segment Technology (“VST”) biometric algorithm and is integrated into the Company’s WEB-key and ID Director suite of solutions." [Emphasis added.]
Here's some more links:
http://bio-key.com.sg/bio-key-id-director/
https://www.bio-key.com/biometric-authentication-solutions/id-director/
All this adds up to the fact that the situation is in fact reversed, that you are the one misleading investors.
Finally, you declare the mobile trend is facial, while I believe we will begin to see underglass fingerprint readers in the mobile market, sooner rather than later. Samsung 10S release date is a few weeks away. But I find it interesting that this was posted just a couple hours ago:
https://www.theinquirer.net/inquirer/news/3030399/galaxy-s10-release-date-specs-price-s10-plus-1tb-storage-12gb-ram-mid-march-launch
"According to online murmurs, Samsung's 10th-anniversary smartphone lineup will comprise of the Galaxy S10, S10+ and S10e. The higher-spec models, rumours suggest, could be the first to adopt Samsung's Infinity-O display, an in-display fingerprint scanner and a triple-camera..."
All JMHOs.
What is your evidence that ID Director is Omnipass? Yes, BIO-key's readers are bundled with Omnipass Consumer when the reader is bought at retail, but where is any reference anywhere that BIO-key has licensed, bundled, OEMed, etc., Omnipass for an integrated Active Directory (AD) capability?
What does OmniPass have to do with ID Director??? Where is OmniPass even mentioned in the release?
"We look forward to supporting the Singapore Police Force’s efforts as they expand the use of our technology to their 38,500 members" seems pretty clear about the number.
The readers alone for 38,500 personnel as a wild guess must be in mid-6 figures. What we don't know is 1Q or 4Q and the timeframe of the expansion. But even if it's over the next 12 months, I chalk it up as another great international enterprise win.
They may have chose facial, but in this anecdotal case it doesn't work well. You think that's a positive going forward for facial? You think if they have to upgrade or outfit another dorm, they might look at alternatives?
One more comment on my last message allowed for the day. To my knowledge, there's 2.5 million warrants at $1.50 which expire in October. So if the stock pushes above this and this $1.50 doesn't become a ceiling, I think that's quite a positive indicator. While we crossed the declining 150 DMA yesterday, I'm not convinced yet that we won't back down to $1.50 and hold there for awhile.
I'm at the University of Southern California a lot. In one of the dorms I visited, the kids have to be facially recognized. Of course I'm intrigued and watch. The kids take their position in front of the camera, and it fails. They pose again. It fails. Again. Failure. Finally, they look over and the guard says go ahead.
I think fingerprint will get the lion's share.
Nice double jonQ!
https://www.spiceworks.com/press/releases/spiceworks-study-reveals-nearly-90-percent-businesses-will-use-biometric-authentication-technology-2020/
https://www.statista.com/statistics/522058/global-smartphone-fingerprint-penetration/
$7.20 is pretty steep. Even assuming $12M in revs and $0.15 in EPS in 2019, that would be 7.20/(12M/17M) = 10.2 times sales and a 48 PE. It would have to become a high flyer trading on forward PE and growth rate rather than on 3X TTM sales/share. I guess it could happen, but it would have to look like revenues will continue to ramp in 2020.
I'm not sure about a $3M 1Q either. Per the CC the bulk of the $7M backlog is apparently the $5M (second half of the $10M Chinese contract) in 4Q 2019. If they do get $3M in the 1Q than $7.2 would likely shortly thereafter be in the rear view window.
Nothing like a stock doubling to change the tone of a message board.
See top-ranked articles on the left:
https://www.gurufocus.com/news/805229
or try this link:
https://www.gurufocus.com/news/805229