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Bio-key: quarterlies, annuals, SEC actions

BIO-key restates 2023 earnings with extra $3.8M net loss, Q1 revenues flat
Bio-key: quarterlies, annuals, SEC actions
 

June 17, 2024 – BIO-key reports revenues of $2.2 million in the first fiscal quarter of 2024, and an increase of $300,000 in cash from operating activities as the company begins catching up on its financial statements.

An expanded deployment of a biometric client identification system by a long-standing BIO-key customer in financial services boosted the company’s Q1 results, according to CEO Mike DePasquale, though its revenues were flat on a year-over-year basis.

The company also reports a 10 percent increase in revenues for full-year 2023 to $7.75 million, as it filed its Form 10-Q to avoid penalties from the Nasdaq and work towards regaining compliance.

Net loss for 2023 was restated to $8.52 million, as it increased by $3.8 million, or $6.67 per common share, for the nine months the company is restating.

BIO-key to restate quarterlies after Nasdaq non-compliance notice

June 4, 2024 – BIO-key is working to refile a series of financial statements to correct errors made while incorporating the finances of a recently-acquired subsidiary. In the meantime, the company has received a notice of non-compliance from Nasdaq for failing to file its Form 10-Q for its fourth quarter of fiscal 2023, which ended March 31, 2024.

A new Form 12b-25 filing with the Nasdaq shows BIO-key “made certain errors in the manner in which it recognized revenue generated” by Swivel Secure Europe, which it acquired in 2022 to extend the market reach of its biometric multi-factor authentication (MFA).

Quarterly reports issued by BIO-key at the end of March, June and September of last year “should no longer be relied upon,” the company says.

BIO-key plans to file restated quarterlies soon to avoid penalty from the Nasdaq.

BIO-key biometric hardware holdup, cost cuts make for mixed results

April 2, 2024 – Revenues from BIO-key’s sales of digital identity and access management software and hardware rose by $2 million in the company’s fiscal 2023 to reach $9.1 million.

CEO Mike DePasquale says in the announcement of BIO-key’s fourth quarter and full-year 2023 results that the company is “in a strong position to reach profitability over the next several quarters.”

BIO-key’s selling, general and administration expenses were reduced by $2.1 million during 2023. The company’s operating costs fell by 22 percent to $7.3 million for the year.

Bottom-line results over the past quarter were adversely affected by a holdup in delivering $2.8 million worth of hardware for a project in Nigeria. The company signed a pair of multi-million dollar biometric hardware deals in Nigeria in 2020, one with a government agency and one with a local telecom.

Overall, BIO-key’s net loss was reduced from $12.2 million or $27.26 per share in 2022 to $6.2 million, or $11.45 per share last year.

Erasing long-term debt, BIO-key still has revenue worry

December 21, 2023 – BIO-key has retired a $2.2 million senior secured note and with it, according to the company, all long-term debt, a move that should lighten the balance sheet and buoy share prices. Speaking of which, the ID access management firm says it sold a private placement valued at $550,000 and at a premium to the market price. BIO-key this week opted for a 1-for-18 reverse stock split to meet the share-price requirement of the Nasdaq.

Sales and fees push BIO-key’s Q3 revenue up 30% year over year

October 27, 2023 – Digital authentication and ID firm BIO-key says its third quarter revenue rose 30 percent, to $1.8 million thanks to software license fees, hardware sales and services.

The company reported a net loss of $749,000, or $0.08 per basic and diluted shares, on revenue of $1.8 million for the quarter ended September 30. This compares with a loss of $2.4 million, or $0.29 per basic and diluted share, on revenue of $1.3 million a year ago.

For the three quarters ending September 30, BIO-key reported a loss of $2.5 million, or $0.27, on revenue of $6.84 million. That compares with a loss of $5.1 million, $0.64, on revenue of $1.2 million for the same period is fiscal 2022.

This post was updated at 10:02am Eastern on November 3, 2023 to correct the revenue figure for the first three quarters of the year.

BIO-key belatedly files finance report for quarter ended in March

June 9, 2023 – Authentication and IAM provider BIO-key has made itself right with the Nasdaq exchange. The company had been notified that it was in danger of being delisted due to delayed financial reporting. Executives said they are current with requirements. The problem arose when the compilation and review of “certain financial information could not be completed” in time.

BIO-key misses its Q1 financials report deadline

May 31, 2023 – New Jersey-based biometric systems provider BIO-key told the Securities and Exchange Commission May 16 its first quarter financials report will be delayed an unspecified period.

Nasdaq, the exchange on which its shares trade, sent a notice to BIO-key May 23 that it is in breach of exchange requirements about timely financials report submission. Nasdaq’s note is just that for now, but if noncompliance continues penalties can be significant.

In their alert to the SEC, executives issued boilerplate language about not being able to file performance figures on time without unreasonable expense and effort.

BIO-key has to show a plan to distribute the information, at which point Nasdaq officials can extend the deadline by up to 180 calendar days from the original deadline.

Mitek said the same to regulators earlier this month about its quarterly report when it could not produce the information on time.

More financial and industry news about BIO-key here.

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