Zwipe runs out of time for biometric card revenues, files for bankruptcy

Zwipe AS has filed for bankruptcy after an arbitration ruling and years of disappointing revenues.

The Oslo Chamber of Commerce ruled in January that Zwipe would have to pay Idex Biometrics $702,000, plus taxes, interest for late payment and legal costs over a warranty dispute. Zwipe convened an emergency board meeting and acknowledged that it may not be able to pay the arbitration award and continue operating. Zwipe ordered 300,000 fingerprint biometric sensors from Idex in 2020 following an exclusive partnership arrangement.

The meeting yielded a possible path forward. “Based on the board’s assessment, the Company is currently in discussions which are not unlikely to provide the Company with necessary financing to avoid insolvency,” Zwipe announced on January 28. “It is, thus, the board’s opinion that the Company currently has a basis for further operations.”

Those discussions did not lead to a deal, the board announced February 14, and on Monday Zwipe made the decision to file for bankruptcy.

“Our focus is now to ensure an orderly process for all affected parties,” says Jörgen Lantto, chairman of Zwipe AS.

The Tingsretten district court in Oslo will appoint a bankruptcy trustee to manage the process.

Zwipe formed a strategic partnership with ReddWare Inc. to use its biometric cards for access control just weeks ago.

The company was founded in Norway in 2009, and went public at the end of 2019. It shares traded for between 0.25 and 0.30 Swedish kronor at the peak of their value in in 2021, when Zwipe was busy signing up partners to work towards commercializing biometric payment cards. Those deals included a $1.9 million sale of card technology to Taiwan’s BCC following two years of combined revenues below $400,000.

Article Topics

access control  |  biometric cards  |  biometric payments  |  fingerprint biometrics  |  stocks  |  Zwipe