Weak biometric payments sales push Idex to the brink

Idex Biometrics has closed out a tough fiscal 2024 year with negligible income in the fourth quarter, as sensor shipments for the biometric payments market stalled.

Operating expenses were $3.2 million. Part of those expenses was the loss on receivables from a claim of $600,000 against Zwipe, which pushed the company into bankruptcy when it was upheld by an arbitrator.

Net loss in Q4 was $2.1 million, rather than $4.6 million, due to a $2.4 million gain from changes to the value of “warrants and the derivative related to the convertible debt,” Idex reports.

For the year, Idex earned $841,000 in total revenue, down from $4.1 million in 2023. Net loss was $12.8 million, which while down from a net loss of $26.6 million the previous year, left the company in a precarious position.

“The Company’s liquidity is constrained and as of December 31, 2024, more than half of Idex’s share capital was lost,” the quarterly report states. “The company is in active discussions with key shareholders and the financial lender to enable and arrange funding for continuing operations. At the date of the report, the discussions are not conclusive, and the outcome remains open.”

Idex held $6.9 million in inventory and $2 million in cash as of December 31. Since then, the company has sold 10,000 units of its biometric payment card solution to an MEA-based smart card provider and struck an access control deal with an American partner.

Article Topics

biometric payments  |  biometrics  |  financial results  |  fingerprint biometrics  |  fingerprint sensors  |  Idex Biometrics  |  stocks