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BIO-key(BKYI) - 2024 Q2 - Quarterly Results
BKYIBIO-key(BKYI)2024-08-15 01:03

Revenue Performance - Q2'24 revenues decreased to 1.1Mfrom1.1M from 1.9M in Q2'23, primarily due to a delay in recognizing approximately 450,000insoftwarelicensefeesandlowerproject−relatedservicesrevenueofapproximately450,000 in software license fees and lower project-related services revenue of approximately 200,000[2]. - The company reported a total of 3.3Minrevenuesforthefirstsixmonthsof2024,downfrom3.3M in revenues for the first six months of 2024, down from 4.1M in the same period of 2023[7]. - Total revenues for the three months ended June 30, 2024, were 1,141,286,adecreaseof40.91,141,286, a decrease of 40.9% compared to 1,928,929 for the same period in 2023[13]. Profitability and Loss - Gross profit improved to 0.9Mwitha77.00.9M with a 77.0% gross margin in Q2'24, compared to 0.3M and a 16.7% gross margin in Q2'23, mainly due to the impact of a 1MhardwarereserveinQ2′23[2][8].−Q2′24netlosswasreducedto1M hardware reserve in Q2'23[2][8]. - Q2'24 net loss was reduced to 1.7M, or 1.00pershare,fromanetlossof1.00 per share, from a net loss of 2.6M, or 4.71pershare,inQ2′23[9].−OperatinglossforthethreemonthsendedJune30,2024,was4.71 per share, in Q2'23[9]. - Operating loss for the three months ended June 30, 2024, was (1,654,086), an improvement from (2,378,527)inthesameperiodlastyear[13].−Thecompanyreportedanetlossof(2,378,527) in the same period last year[13]. - The company reported a net loss of (1,666,950) for the three months ended June 30, 2024, compared to (2,622,878)forthesameperiodin2023[13].−NetlossforthesixmonthsendedJune30,2024,was(2,622,878) for the same period in 2023[13]. - Net loss for the six months ended June 30, 2024, was 2,177,236, an improvement from a net loss of 4,311,200forthesameperiodin2023,representinga49.54,311,200 for the same period in 2023, representing a 49.5% reduction in losses[15]. Cash Flow and Operating Activities - Cash used in operating activities improved by 48% to 1.1M in the first six months of 2024, compared to 2.1Minthesameperiodof2023[2].−Cashusedinoperatingactivitiesdecreasedto2.1M in the same period of 2023[2]. - Cash used in operating activities decreased to 1,123,533 for the six months ended June 30, 2024, compared to 2,095,192intheprioryear,indicatinga46.52,095,192 in the prior year, indicating a 46.5% improvement[15]. - Cash and cash equivalents increased to 1,260,351 as of June 30, 2024, compared to 511,400atDecember31,2023[14].−Cashandcashequivalentsattheendoftheperiodincreasedto511,400 at December 31, 2023[14]. - Cash and cash equivalents at the end of the period increased to 1,260,351, up from 565,513attheendofJune30,2023,reflectinga123.5565,513 at the end of June 30, 2023, reflecting a 123.5% increase[15]. Assets and Liabilities - Current assets as of June 30, 2024, were approximately 3.0M, including 1.3Mincashandcashequivalents,comparedto1.3M in cash and cash equivalents, compared to 2.6M at the end of 2023[10]. - Total current assets rose to 3,014,529asofJune30,2024,upfrom3,014,529 as of June 30, 2024, up from 2,622,157 at December 31, 2023[14]. - Total liabilities increased to 5,855,288asofJune30,2024,comparedto5,855,288 as of June 30, 2024, compared to 3,453,470 at December 31, 2023[14]. - The company’s accumulated deficit increased to (127,184,445)asofJune30,2024,from(127,184,445) as of June 30, 2024, from (125,007,210) at December 31, 2023[14]. - Total stockholders' equity was (1,056,292)asofJune30,2024,comparedto(1,056,292) as of June 30, 2024, compared to 1,063,565 at December 31, 2023[14]. Cost Management and Expenses - Operating expenses were trimmed by 0.2MinQ2′24comparedtoQ2′23,reflectingongoingcostmanagementinitiatives[2][8].−Thecompanyrecordedadepreciationexpenseof0.2M in Q2'24 compared to Q2'23, reflecting ongoing cost management initiatives[2][8]. - The company recorded a depreciation expense of 46,069 for the six months ended June 30, 2024, compared to 26,637inthesameperiodlastyear,representinga73.126,637 in the same period last year, representing a 73.1% increase[15]. - The company incurred capital expenditures of 1,869, a new investment compared to no capital expenditures in the same period last year[15]. Business Development and Strategy - BIO-key introduced Passkey:YOU, a biometric FIDO Passkey Authentication Solution, aimed at enhancing security in identity management[3][6]. - BIO-key is focused on building a base of high-margin annually recurring revenues (ARRs) to support future growth[7]. - The company remains optimistic about the growth potential of its new solutions amid increasing regulatory standards for cybersecurity[6]. Deferred Revenue and Inventory Management - Deferred revenue increased significantly to 414,878from414,878 from 174,437 year-over-year, indicating a 137.5% growth[15]. - Inventory changes showed a cash inflow of 12,558,contrastingwithacashoutflowof12,558, contrasting with a cash outflow of 50,271 in the previous year, indicating improved inventory management[15]. Financing Activities - Proceeds from Note Payable amounted to 2,000,000,contributingpositivelytofinancingactivities[15].−Theeffectofexchangeratechangesresultedinacashoutflowof2,000,000, contributing positively to financing activities[15]. - The effect of exchange rate changes resulted in a cash outflow of 38,055, compared to a cash inflow of 67,490intheprioryear,highlightingcurrencyvolatilityimpacts[15].−Thecompanyreportedasignificantincreaseinaccountspayable,whichroseto67,490 in the prior year, highlighting currency volatility impacts[15]. - The company reported a significant increase in accounts payable, which rose to 258,384 from $726,657, indicating changes in payment terms or supplier relationships[15].