U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
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QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
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TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT |
For the Transition Period from to
Commission file number
(Exact Name of registrant as specified in its charter)
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(State or Other Jurisdiction of |
(IRS Employer |
(Address of Principal Executive Offices)
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(Registrant’s telephone number, including area code)
Securities registered pursuance to Section 12(b) of the Act:
Title of each class |
Trading Symbol |
Name of each exchange on which registered |
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Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ |
Accelerated filer ☐ |
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Smaller Reporting Company |
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Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined by rule 12b-2 of the Exchange Act) Yes
Number of shares of Common Stock, $.0001 par value per share, outstanding as of June 8, 2023 was
BIO-KEY INTERNATIONAL, INC.
INDEX
PART I. FINANCIAL INFORMATION |
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Item 1 — Financial Statements: |
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Condensed Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022 |
3 |
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2023 and 2022 (unaudited) |
4 |
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2023 and 2022 (unaudited) |
5 |
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022 (unaudited) |
7 |
Notes to Condensed Consolidated Financial Statements |
9 |
Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
17 |
Item 4 — Controls and Procedures. |
22 |
PART II. OTHER INFORMATION |
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Item 6 — Exhibits. |
22 |
Signatures |
23 |
PART I — FINANCIAL INFORMATION
BIO-key International, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2023 |
December 31, 2022 |
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(Unaudited) |
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ASSETS |
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Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable, net |
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Due from factor |
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Inventory, net of reserve | ||||||||
Prepaid expenses and other |
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Total current assets |
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Equipment and leasehold improvements, net |
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Capitalized contract costs, net |
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Deposits and other assets |
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Operating lease right-of-use assets |
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Intangible assets, net |
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Total non-current assets |
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TOTAL ASSETS |
$ | $ | ||||||
LIABILITIES |
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Accounts payable |
$ | $ | ||||||
Accrued liabilities |
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Convertible note payable |
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Government loan – BBVA Bank – current portion | ||||||||
Deferred revenue – current |
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Operating lease liabilities, current portion |
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Total current liabilities |
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Deferred revenue – net of current portion |
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Deferred tax liability |
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Government loan – BBVA Bank – net of current portion |
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Operating lease liabilities, net of current portion |
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Total non-current liabilities |
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TOTAL LIABILITIES |
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Commitments and Contingencies (Note 7) |
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STOCKHOLDERS’ EQUITY |
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Common stock — authorized, |
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Additional paid-in capital |
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Accumulated other comprehensive income |
( |
) | ( |
) |
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Accumulated deficit | ( |
) |
( |
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TOTAL STOCKHOLDERS’ EQUITY |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | $ |
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
BIO-key International, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
Three months ended |
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2023 |
2022 |
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Revenues |
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Services |
$ | $ | ||||||
License fees |
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Hardware |
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Total revenues |
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Costs and other expenses |
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Cost of services |
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Cost of license fees |
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Cost of hardware |
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Total costs and other expenses |
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Gross Profit |
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Operating expenses |
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Selling, general and administrative |
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Research, development and engineering |
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Total operating expenses | ||||||||
Operating loss |
( |
) | ( |
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Other income (expense) |
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Interest income | ||||||||
Loss on foreign currency transaction |
( |
) |
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Change in fair value of convertible note |
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Interest expense | ( |
) | ||||||
Total other income (expense) | ||||||||
Net loss |
$ | ( |
) | $ | ( |
) |
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Comprehensive loss: |
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Net loss | $ | ( |
) | $ | ( |
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Other comprehensive income – Foreign currency translation adjustment | ||||||||
Comprehensive loss |
$ | ( |
) | $ |
( |
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Basic and Diluted Loss per Common Share |
$ | ( |
) | $ | ( |
) |
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Weighted Average Shares Outstanding: |
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Basic and Diluted |
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
BIO-key International, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
Accumulated | ||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||
Common Stock |
Paid-in |
Comprehensive |
Accumulated |
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Shares |
Amount |
Capital |
Income |
Deficit |
Total |
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Balance as of January 1, 2023 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Issuance of common stock for directors’ fees |
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Issuance of common stock to employees |
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Restricted stock forfeited |
( |
) | ( |
) | ( |
) | ( |
) |
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Foreign currency translation adjustment |
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Share-based compensation |
- | |||||||||||||||||||||||
Net loss |
- | ( |
) | ( |
) |
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Balance as of March 31, 2023 |
$ | $ | $ | ( |
) |
$ | ( |
) |
$ |
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
BIO-key International, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)
(Unaudited)
Common Stock |
Additional Paid-in |
Accumulated Other Comprehensive |
Accumulated |
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Shares |
Amount |
Capital |
Income |
Deficit |
Total |
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Balance as of January 1, 2022 |
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$ |
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$ |
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$ |
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$ |
( |
) |
$ |
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Issuance of common stock for directors’ fees |
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Issuance of common stock pursuant to Swivel purchase agreement |
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Issuance of restricted common stock to employees and directors |
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( |
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Foreign currency translation adjustment |
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Share-based compensation |
- |
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Net loss |
- |
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( |
) |
( |
) |
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Balance as of March 31, 2022 |
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$ |
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$ |
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$ |
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$ |
( |
) |
$ |
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The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
BIO-key International, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, |
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2023 |
2022 |
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CASH FLOW FROM OPERATING ACTIVITIES: |
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Net loss |
$ | ( |
) |
$ | ( |
) |
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Adjustments to reconcile net loss to cash used in operating activities: |
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Depreciation |
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Amortization of intangible assets | ||||||||
Change in fair value of convertible note | ( |
) | ||||||
Amortization of capitalized contract costs |
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Amortization of operating leases right-of-use assets | ||||||||
Stock based directors’ fees |
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Share based compensation for employees and consultants |
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Bad debts | ||||||||
Change in assets and liabilities: |
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Accounts receivable |
( |
) | ( |
) |
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Due from factor |
( |
) | ( |
) |
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Capitalized contract costs |
( |
) | ( |
) |
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Inventory |
( |
) |
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Resalable software license rights |
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Prepaid expenses and other | ( |
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Accounts payable | ||||||||
Accrued liabilities |
( |
) |
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Deferred revenue | ||||||||
Operating lease liabilities |
( |
) | ( |
) |
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Net cash used in operating activities | ( |
) |
( |
) |
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CASH FLOW FROM INVESTING ACTIVITIES: |
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Purchase of Swivel Secure, net of cash acquired of $ |
( |
) |
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Receipt of cash from note receivable |
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Capital expenditures |
( |
) |
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Net cash used in investing activities |
( |
) | ||||||
CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||
Repayment of government loan | ( |
) | ||||||
Net cash used in financing activities | ( |
) | ||||||
Effect of exchange rate changes |
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NET DECREASE IN CASH AND CASH EQUIVALENTS |
( |
) |
( |
) |
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CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
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CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | $ |
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
BIO-key International, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION
Three Months Ended March 31, |
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2023 |
2022 |
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Cash paid for: |
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Interest |
$ | $ | ||||||
Noncash Investing and financing activities | ||||||||
Accounts receivable acquired from Swivel Secure | $ | $ | ||||||
Equipment acquired from Swivel Secure | $ | $ | ||||||
Other assets acquired from Swivel Secure | $ | $ | ||||||
Estimated intangible assets acquired from Swivel Secure | $ | $ | ||||||
Estimated goodwill resulting from the acquisition from Swivel Secure | $ | $ | ||||||
Accounts payable and accrued expenses acquired from Swivel Secure | $ | $ | ||||||
Government loan acquired from Swivel Secure | $ | $ | ||||||
Common stock issued for acquisition of Swivel Secure | $ | $ |
The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.
BIO-KEY International Inc., and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2023 (Unaudited)
1. |
NATURE OF BUSINESS AND BASIS OF PRESENTATION |
Nature of Business
The Company, founded in 1993, develops and markets proprietary fingerprint identification biometric technology and software solutions enterprise-ready identity access management solutions to commercial, government and education customers throughout the United States and internationally. The Company was a pioneer in developing automated, finger identification technology that supplements or compliments other methods of identification and verification, such as personal inspection identification, passwords, tokens, smart cards, ID cards, PKI, credit cards, passports, driver’s licenses, OTP or other form of possession or knowledge-based credentialing. Additionally, advanced BIO-key® technology has been, and is, used to improve both the accuracy and speed of competing finger-based biometrics.
Basis of Presentation
The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. Intercompany accounts and transactions have been eliminated in consolidation.
In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at December 31, 2022 was derived from the audited financial statements, but does not include all of the disclosures required by GAAP. These unaudited interim condensed consolidated financial statements should be read in conjunction with the financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on June 1, 2023.
Foreign Currencies
The Company accounts for foreign currency transactions pursuant to ASC 830, Foreign Currency Matters ("ASC 830”). The functional currency of the Company is the U.S. dollar, which is the currency of the primary economic environment in which it operates. In accordance with ASC 830, all assets and liabilities are translated into U. S. dollars using the current exchange rate at the end of each fiscal period. Revenues and expenses are translated using the average exchange rates prevailing throughout the respective periods. All transaction gains and losses from the measurement of monetary balance sheet items denominated in Euros are reflected in the statement of operations as appropriate. Translation adjustments are included in accumulated other comprehensive income (loss).
Recently Issued Accounting Pronouncements
Effective January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), referred to herein as ASU 2016-13, which significantly changes how entities will account for credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the existing incurred loss model with an expected credit loss model that requires entities to estimate an expected lifetime credit loss on most financial assets and certain other instruments. Under ASU 2016-13 credit impairment is recognized as an allowance for credit losses, rather than as a direct write-down of the amortized cost basis of a financial asset. The impairment allowance is a valuation account deducted from the amortized cost basis of financial assets to present the net amount expected to be collected on the financial asset. Once the new pronouncement is adopted by the Company, the allowance for credit losses must be adjusted for management’s current estimate at each reporting date. The new guidance provides no threshold for recognition of impairment allowance. Therefore, entities must also measure expected credit losses on assets that have a low risk of loss. For instance, trade receivables that are either current or not yet due may not require an allowance reserve under currently generally accepted accounting principles, but under the new standard, the Company will have to estimate an allowance for expected credit losses on trade receivables under ASU 2016-13. The adoption of ASU 2016-13 did not have a material effect on the consolidated financial statements of the Company.
In August 2020, the Financial Accounting Standards Board issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective for the Company on January 1, 2024 and should be applied on a full or modified retrospective basis. The Company is currently assessing the impact ASU 2020-06 will have on its consolidated financial statements.
Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements.
2. |
GOING CONCERN |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has suffered substantial net losses and negative cash flows from operations in recent years and is dependent on debt and equity financing to fund its operations all of which raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to increase its revenue and meet its financing requirements on a continuing basis and become profitable in its future operations. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.
As of the date of this report, the Company does not have enough cash for twelve months of operations. The history of significant losses, the negative cash flow from operations, the limited cash resources on hand and the dependence by the Company on its ability to obtain additional financing to fund its operations after the current cash resources are exhausted raises substantial doubt about the Company's ability to continue as a going concern. The Company has lowered its expenses through decreasing spending in marketing and research and development. In addition, the Company has purchased inventory for projects in Nigeria, which have been delayed in deployment, and is, therefore, looking into other markets and opportunities to sell or return the product to generate additional cash.
3. |
REVENUE FROM CONTRACTS WITH CUSTOMERS |
Disaggregation of Revenue
The following table summarizes revenue from contracts with customers for the three-month period:
North America |
Africa |
EMESA* |
Asia |
March 31, 2023 |
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License fees |
$ | $ | $ | $ | $ | |||||||||||||||
Hardware |
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Services |
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Total Revenues |
$ | $ | $ | $ | $ |
North America |
Africa |
EMESA* |
Asia |
March 31, 2022 |
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License fees |
$ | $ | $ | $ | $ | |||||||||||||||
Hardware |
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Services |
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Total Revenues |
$ | $ | $ | $ | $ |
*EMESA – Europe, Middle East, South America
Deferred Revenue
Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not yet occurred. The majority of these amounts are related to maintenance contracts for which the revenue is recognized ratably over the applicable term, which generally is 12-60 months. Contracts greater than 12 months are segregated as long term deferred revenue. Maintenance contracts include provisions for unspecified when-and-if available product updates and customer telephone support services. At March 31, 2023 and December 31, 2022, amounts in deferred revenue were approximately $
4. |
ACCOUNTS RECEIVABLE |
Accounts receivable are carried at original amount less an estimate made for credit losses based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for credit losses by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, current economic conditions and other relevant factors, including specific reserves for certain accounts. Accounts receivable are written off when deemed uncollectible.
Accounts receivable at March 31, 2023 and December 31, 2022 consisted of the following:
March 31, |
December 31, |
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2023 |
2022 |
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Accounts receivable |
$ | $ | ||||||
Allowance for credit losses | ( |
) |
( |
) |
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Accounts receivable, net of allowance for credit losses | $ | $ |
Bad debt expenses (if any) are recorded in selling, general, and administrative expense.
5. |
SHARE BASED COMPENSATION |
The following table presents share-based compensation expenses for continuing operations included in the Company’s unaudited condensed consolidated statements of operations:
Three Months Ended March 31, |
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2023 |
2022 |
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Selling, general and administrative |
$ | $ | ||||||
Research, development and engineering |
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$ | $ |
6. |
INVENTORY |
Inventory is stated at the lower of cost, determined on a first in, first out basis, or realizable value. The Company periodically evaluates inventory items and establishes reserves for obsolescence accordingly. The Company also reserves for excess quantities, slow moving goods, and for other impairment of value based upon assumptions of future demand and market conditions. The $
March 31, |
December 31, |
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2023 |
2022 |
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Finished goods |
$ | $ | ||||||
Fabricated assemblies |
||||||||
Reserve on finished goods | ( |
) | ( |
) |
||||
Total inventory |
$ | $ |
7. |
COMMITMENTS AND CONTINGENCIES |
Distribution Agreement
Swivel Secure has a distribution agreement with Swivel Secure Limited (“SSL”). Terms of the agreement include the following:
1. |
The initial term of the agreement ends on January 31, 2027 and will be automatically extended for additional one-year terms thereafter unless either party provides written notice to the other party not later than 30 days before the end of the term that it does not wish to extend the term. |
2. |
SSL appoints Swivel Secure as the exclusive distributor of SSL’s products, to market, sell and distribute in the EMEA (Europe, Middle East and Africa), excluding the United Kingdom and Republic of Ireland, for a defined discount on the sale price. |
3. |
Swivel Secure is expected to generate a certain minimum level of orders of SSL products each year during the term of the agreement. If Swivel Secure fails to meet such minimum level of orders in any year, the exclusive distribution rights will terminate and Swivel Secure will serve as a non-exclusive distributer of SSL Products. |
The Company expects the revenue targets to continue to be met based on historical performance and increasing distribution by Swivel Secure.
Litigation
From time to time, the Company may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of March 31, 2023, the Company was not a party to any pending lawsuits.
8. |
LEASES |
The Company’s leases office space in New Jersey, Minnesota, New Hampshire, Madrid and Hong-Kong with lease termination dates in 2023 and 2024. The property leased in China is paid monthly as used, without a formal agreement. The following tables present the components of lease expense and supplemental balance sheet information related to the operating leases were:
3 Months ended March 31, 2023 |
3 Months ended March 31, 2022 |
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Lease cost |
||||||||
Total lease cost |
$ | $ |
Balance sheet information |
March 31, 2023 |
December 31, 2022 |
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Operating right-of-use assets |
$ | $ | ||||||
Operating lease liabilities, current portion |
$ | $ | ||||||
Operating lease liabilities, non-current portion | ||||||||
Total operating lease liabilities |
$ | $ | ||||||
Weighted average remaining lease term (in years) – operating leases |
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Weighted average discount rate – operating leases |
% |
% |
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Supplemental cash flow information related to leases were as follows: |
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Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2023 and 2022: |
$ | $ | ||||||
Maturities of operating lease liabilities were as follows as of March 31, 2023: |
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2023 (9 months remaining) | $ | |||||||
2024 |
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Total future lease payments | $ | |||||||
Less: imputed interest |
( |
) | ||||||
Total |
$ |
9. |
CONVERTIBLE NOTE PAYABLE |
Securities Purchase Agreement dated December 22, 2022
On December 22, 2022, the Company entered into and closed a securities purchase agreement (the “Purchase Agreement”) which issued a $
The principal amount of the Note is due six months following the date of issuance, subject to one six-month extension by the Company. Interest under the Note accrues at a rate of
In connection with the issuance of the Note, the Company issued to the investor
Upon issuance, the Note is not convertible into common stock or any other securities of the Company. Only after a date that is six (6) months following the issuance date of the Note and upon the occurrence of any events of default (as defined) and expiration of any applicable cure periods, all amounts due under the Note will immediately and automatically become due and payable in full, interest will accrue at the higher of
The aggregate number of shares of common stock issuable in the forgoing transaction consisting of the Commitment Shares, the Warrant Shares, and the Conversion Shares are capped at
The Company elected the fair value measurement option for the Note as the Note had embedded derivatives that required bifurcation, and recorded the entire hybrid financing instrument at fair value under the guidance of ASC 825, Financial Instruments. As a result, the Note was recorded at fair value upon issuance and is subsequently remeasured at each reporting date until settled or converted. The Company reports interest expense, including accrued interest, related to the Note under the fair value option, separately from within the change in fair value of the Note in the accompanying consolidated statement of operations. See Note 13.
As of March 31, 2023 and December 31, 2022, the Note with principal balance of $
10. |
EARNINGS PER SHARE (“EPS”) |
The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock.
The following table sets forth options and warrants which were excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares:
Three Months Ended |
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2023 |
2022 |
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Stock options |
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Warrants |
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Total |
11. |
STOCKHOLDERS’ EQUITY |
Issuances of Common Stock
During the three-month periods ended March 31, 2023, there have not been any shares of common stock issued to anyone outside the Company, except as noted below under Issuances to Directors, Executive Officers & Consultants
On March 8, 2022, the Company issued
Issuances of Restricted Stock
Restricted stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. The fair value of nonvested shares is determined based on the market price of the Company's common stock on the grant date. Restricted stock is expensed ratably over the term of the restriction period.
During the three-month periods ended March 31, 2023 and 2022, the Company issued
Restricted stock compensation for the three-month period ended March 31, 2023 and 2022 was $
Issuances to Directors, Executive Officers & Consultants
During the three-month periods ended March 31, 2023 and 2022 the Company issued
Employees’ exercise options
During the three-month periods ended March 31, 2023 and 2022, no employee stock options were exercised.
3. Warrants
There were
12. |
FAIR VALUES OF FINANCIAL INSTRUMENTS |
Cash and cash equivalents, accounts receivable, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. The carrying value of the Company’s notes and loan payables approximated fair value as the interest rates related to the financial instruments approximated market.
13. |
FAIR VALUE MEASUREMENT OF CONVERTIBLE NOTE PAYABLE |
Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities;
Level 2: Quoted prices in markets that are not active or inputs which are observable either directly or indirectly for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).
The following tables summarize the Note measured at fair value at March 31, 2023 and December 31, 2022:
March 31, 2023 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Convertible note at fair value | $ | $ | $ | $ |
December 31, 2022 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Convertible note at fair value | $ | $ | $ | $ |
The Company estimated the fair value of the convertible note using a probability-weighted discounted cash flow model with the following assumptions and significant terms of the convertible note at both March 31, 2023 and December 31, 2022:
1. |
Face amount - $ |
2. |
Nominal interest rate – |
3. |
Default interest rate – |
4. |
Increase in principal upon a default – |
5. |
Present value discount rate – |
6. |
Likelihood of default – estimated to be |
The following table shows the changes in fair value measurements for the convertible note using significant unobservable inputs (Level 3) during the three months ended March 31, 2023:
Beginning balance | $ | |||
Purchases and issuances | ||||
Change in fair value | ( |
) | ||
Ending balance | $ |
14. |
MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLE |
For the three month periods ended March 31, 2023 and 2022, two customers accounted for
15. |
INCOME TAXES |
The Company recorded
As of March 31, 2023 and December 31, 2022, the Company provided a full valuation allowance against its net deferred tax assets since the Company believes it is more likely than not that its deferred tax assets will not be realized.
16. |
SUBSEQUENT EVENTS |
On May 5, 2023, the Company issued
On May 5, 2023,
On May 11, 2023, the Company issued
On May 11, 2023, the Company issued
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “anticipate,” “believe,” “should,” “estimate,” “will,” “may,” “future,” “plan,” “intend” and “expect” and similar expressions generally identify forward-looking statements. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition in the biometric technology and identity access management industries; market acceptance of biometric products generally and our products under development; our ability to execute and deliver on contracts in Africa; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency and exchange rates; the duration and extent of continued hostilities in Ukraine and its impact on our European customers; delays in the development of products, statements of assumption underlying any of the foregoing, and numerous other matters of national, regional and global scale, including those set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and other filings with the Securities and Exchange Commission (“SEC”). These factors are not intended to represent a complete list of the general or specific factors that may affect us. It should be recognized that other factors, including general economic factors and business strategies, may be significant, presently or in the future. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations is provided as a supplement to and should be read in conjunction with our unaudited condensed consolidated financial statements and related information contained herein and our audited financial statements as of December 31, 2022.
Overview
BIO-key International, Inc. (the “Company,” “BIO-key,” “we,” or “us”) is a leading identity and access management (IAM) platform provider enabling secure work-from-anywhere for enterprise, education, and government customers using secure multi-factor authentication (MFA). Our vision is to enable any organization to secure streamlined and passwordless workforce, customer, citizen and student access to any online service, workstation, or mobile application, without a requirement to use tokens or phones. Our products include PortalGuard® and PortalGuard Identity-as-a-Service (IDaaS) enterprise IAM, WEB-key® biometric civil and large-scale ID infrastructure, MobileAuth® mobile phone authentication application for iOS and Android, and high-quality, low-cost accessory fingerprint scanner and FIDO-compliant hardware to provide a full and complete solution for identity-innovating customers.
BIO-key PortalGuard and hosted PortalGuard IDaaS are platforms that enable our customers to securely and easily assure that only the right people can access the right systems. PortalGuard goes beyond traditional MFA solutions by addressing functional gaps, such as allowing roving users to biometrically authenticate at any workstation without using their phones or tokens, eliminating unauthorized account delegation, detecting duplicate users, and accommodating in-person identification.
Our customers use BIO-key every day to securely access a variety of cloud, mobile and web applications, on-premise and cloud-based servers from all of their devices. Employees, contractors, students and faculty sign in through PortalGuard to seamlessly and securely access the applications they need to do their important work, without relying on personal phone use or per-user tokens. Organizations use our platform to securely collaborate with their supply chain and partners, and to provide their customers with flexible, resilient user experiences online or in-person.
Large-scale customer and civil ID customers use our scalable biometric management platform and FBI-certified scanner hardware to manage enrollment, de-duplication and authentication for millions of users. One large bank has enrolled and identifies over 21.7 million of their customers using BIO-key fingerprint biometrics in branches on a daily basis.
PortalGuard and hosted PortalGuard IDaaS are platforms that enable our customers to securely and easily assure that only the right people can access the right systems by utilizing our world-class biometric core platform among 17 other authentication factors. PortalGuard goes beyond traditional multi-factor authentication, or MFA, solutions by addressing sizeable gaps, such as allowing roving users to biometrically authenticate at any workstation without using their phones or tokens, eliminating unauthorized account delegation, detecting duplicate users, and accommodating in-person identification.
PortalGuard and IBB deliver unique value to enterprises who find that mainstream MFA solutions do not adequately address their workforce use cases. PortalGuard operates as a single MFA user experience, providing a rich set of authentication choices to meet every use case. We sell our branded biometric and FIDO authentication hardware as accessories to our IAM platforms, so that customers can have a single vendor providing all components of their IAM solution. We do not mandate the use of BIO-key hardware with our software and services. Our NIST-certified fingerprint biometric platform is unique in that it supports interoperable mixing and matching combinations of different manufactures’ fingerprint scanners in a deployment, so that the right scanner can be selected for the right use case, without mandating the user of a particular scanner.
Security-conscious software developers leverage our platform APIs and federation interfaces to securely and efficiently embed biometric and MFA identity capabilities into their software. Our approach to IDaaS allows our customers to efficiently scale their security and identity infrastructures to protect both internal cloud workforce- and external customer-facing applications.
In 2022, we expanded our product offerings and customer base when we acquired Swivel Secure, a Madrid, Spain based provider of IAM solutions. Swivel Secure is the exclusive distributer of AuthControl Sentry, AuthControl Enterprise, and AuthControl MSP product line in Europe, Africa and the Middle East, or EMEA, excluding the United Kingdom and Ireland. These solutions include a patented one-time-code extraction technology, helping enterprises manage the increasing data security risks posed by cloud services and bring your own device policies.
We operate a SaaS business model with customers subscribing to term use of our software for annual recurring revenue. We sell our products directly through our field and inside sales teams, as well as indirectly through our network of channel partners including resellers, system integrators, master agents and other distribution partners. Our subscription fees include a term license of hosted or on-premise product and technical support and maintenance of our platform. We base subscription fees primarily on the products used and the number of users enrolled in our platform. We generate subscription fees pursuant to noncancelable contracts with a weighted average duration of approximately one year.
Strategic Outlook
We plan to have a more significant role in the IAM market which continues to expand. We plan to offer customers a suite of authentication options that complement our biometric solutions. The more well-rounded offerings of authentication options will allow customers to customize their approach to authentication all under one umbrella.
We expect to grow our business within government services and highly-regulated industries in which we have historically had a strong presence including financial services, higher education, and healthcare. We believe that continued heightened security and privacy requirements in these industries, and as colleges and universities continue operating in remote environments, we will generate increased demand for security solutions, including biometrics. In addition, we expect that the compatible, yet superior portable biometric user experience offered by our technology for Windows 10 users will accelerate the demand for our computer network log-on solutions and fingerprint readers. Through value add-offerings via direct sales, resellers, and strategic partnerships with leading higher education platform providers, we will continue to grow our installed base.
Our primary sales strategies are focused on (i) increased marketing efforts into the IAM market, (ii) dedicated pursuit of large-scale identification projects across the globe and (iii) growing our channel alliance program which we have grown to more than one hundred and fifty participants and continues to generate incremental revenues.
A second component of our growth strategy is to pursue strategic acquisitions of select businesses and assets in the IAM space. In furtherance of this strategy, we are active in the industry and regularly evaluate businesses that we believe will either provide an entry into new market verticals or be synergistic with our existing operations and in either case, be accretive to earnings. We cannot provide any assurance as to whether we will be able to complete any acquisition and if completed, successfully integrate any business we acquire into our operations.
Critical Accounting Policies and Estimates
For detailed information regarding our critical accounting policies and estimates, see our financial statements and notes thereto included in this Report and in our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no material changes to our critical accounting policies and estimates from those disclosed in our most recent Annual Report on Form 10-K.
Recent Accounting Pronouncements
For detailed information regarding recent account pronouncements, see Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2023 AS COMPARED TO MARCH 31, 2022
Consolidated Results of Operations - Percent Trend
Three Months Ended March 31, |
||||||||
2023 |
2022 |
|||||||
Revenues |
||||||||
Services |
17 |
% |
20 |
% |
||||
License fees |
81 |
% |
75 |
% |
||||
Hardware |
2 |
% |
5 |
% |
||||
Total Revenues |
100 |
% |
100 |
% |
||||
Costs and other expenses |
||||||||
Cost of services |
5 |
% |
10 |
% |
||||
Cost of license fees |
20 |
% |
4 |
% |
||||
Cost of hardware |
1 |
% |
3 |
% |
||||
Total Cost of Goods Sold |
26 |
% |
17 |
% |
||||
Gross profit |
74 |
% |
83 |
% |
||||
Operating expenses |
||||||||
Selling, general and administrative |
63 |
% |
93 |
% |
||||
Research, development and engineering |
22 |
% |
41 |
% |
||||
Total Operating Expenses |
85 |
% |
134 |
% |
||||
Operating loss |
-11 |
% |
-51 |
% |
||||
Other income (expenses) |
2 |
% |
- |
% |
||||
Net loss |
-9 |
% |
-51 |
% |
Revenues and cost of goods sold
Three months ended |
||||||||||||||||
March 31, |
||||||||||||||||
2023 |
2022 |
$ Change |
% Change |
|||||||||||||
Revenues |
||||||||||||||||
Service |
$ | 532,522 | $ | 395,804 | $ | 136,718 | 35 |
% |
||||||||
License |
2,478,556 | 1,460,183 | 1,018,373 | 70 |
% |
|||||||||||
Hardware |
72,689 | 85,184 | (12,495 |
) |
-15 |
% |
||||||||||
Total Revenue |
$ | 3,083,767 | $ | 1,941,171 | $ | 1,142,596 | 59 |
% |
||||||||
Cost of goods sold |
||||||||||||||||
Service |
$ | 154,801 | $ | 210,913 | $ | (56,112 |
) |
-27 |
% |
|||||||
License |
620,881 | 73,230 | 547,651 | 748 |
% |
|||||||||||
Hardware |
44,592 | 53,298 | (8,706 |
) |
-16 |
% |
||||||||||
Total Cost of goods sold |
$ | 820,274 | $ | 337,441 | $ | 482,833 | 143 |
% |
Revenues
For the three months ended March 31, 2023 and 2022, service revenues included approximately $292,000 and $317,000 respectively, of recurring maintenance and support revenue, and approximately $240,000 and $79,000, respectively, of non-recurring custom services revenue. Recurring service revenue decreased 13% in the first quarter of 2023 as compared to the first quarter of 2022 due largely to the recognition of annual SaaS revenue versus maintenance renewal contracts. Non-recurring custom services increased due to services provided by Swivel Secure. As our customer base continues to grow, we expect the service revenue to increase in future periods.
For the three months ended March 31, 2023, license revenue increased 70% to $2,478,556 from $1,460,183 during the three months ended March 31, 2022. We increased both the industry variation and number of customers, including additional revenue from Swivel Secure which generated 63% of its license revenue from a customer in Central America, one large SaaS renewal, and cloud migrations.
Hardware sales decreased $12,495 during the three months ended March 31, 2023 to $72,689 from $85,184 during the three months ended March 31, 2022. The decrease was attributable to the mix of installations and other projects completed in the periods.
Costs of goods sold
For the three months ended March 31, 2023, cost of service decreased approximately $56,000 or 27% to $154,801 from $210,913 for the three months ended March 31, 2022 due to reduced personnel costs associated with the direct support for BIO-key support and maintenance,. For the three months ended March 31, 2022, license fees increased to $620,881 from $73,230 during the three months ended March 31, 2022, due largely to the costs related to the license for the Swivel Secure product line. For the three months ended March 31, 2023, hardware costs decreased to $44,592 from $53,298 during the three months ended March 31, 2022, corresponding to the decrease in hardware revenue.
Selling, general and administrative
Three months ended |
||||||||||||||||
March 31, |
||||||||||||||||
2023 |
2022 |
$ Change |
% Change |
|||||||||||||
Selling, general and administrative |
$ | 1,931,732 | $ | 1,797,998 | $ | 133,734 | 7 |
% |
Selling, general and administrative expenses for the three months ended March 31, 2023 increased 5% to $1,931,732 as compared to $1,797,998 for the corresponding period in 2022. This increase was attributable largely to a full quarter of Swivel Secure sales expenses and a reserve for doubtful accounts of $50,000. These increases were offset, in part, by decreases in marketing personnel and expenses, and non-cash compensation.
Research, development and engineering
Three months ended |
||||||||||||||||
March 31, |
||||||||||||||||
2023 |
2022 |
$ Change |
% Change |
|||||||||||||
Research, development and engineering |
$ | 690,159 | $ | 805,266 | $ | (115,107 |
) |
-14 |
% |
For the three months ended March 31, 2023, research, development and engineering expenses decreased 14% to $690,159 as compared to $805,266 for the corresponding period in 2022. Included in the decrease were reductions in personnel costs, and outside services related to the completed development of our MobileAuth application.
Other income (expense)
Three months ended | ||||||||||||||||
March 31, | ||||||||||||||||
2023 | 2022 | $ Change | % Change | |||||||||||||
Other income (expenses) |
||||||||||||||||
Interest income |
$ | 4 | $ | 131 | $ | (127 |
) |
-97 |
% |
|||||||
Loss on foreign currency transactions |
(15,000 |
) |
- | (15,000 |
) |
-100 |
% |
|||||||||
Change in fair value of convertible note |
141,991 |
|
- | 141,991 |
|
100 |
% |
|||||||||
Interest expense |
(56,919 |
) |
- | (56,919 |
) |
-100 |
% |
|||||||||
Other income (expense) |
$ | 70,076 |
|
$ | 131 | $ | 69,945 |
|
553,931 |
% |
Other income (expense) for the three month period ended March 31, 2023 consisted of interest expense of $54,999 on the secured note payable plus the government loan through the BBVA bank net of interest income, change in fair value of $141,991 on the convertible note payable, and loss on foreign currency transactions. Other income (expense) for the three month period ended March 31, 2022 consisted of interest income.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
Operating activities overview
Net cash used for operations during the three months ended March 31, 2023 was $1,928,811. Items of note included:
● |
Net positive cash flows related to accounts payable, prepayments, inventory and deferred revenue of approximately $276,000. |
● |
Net positive cash flows related to adjustments for non-cash expenses of approximately $128,000 |
● |
Negative cash flows related to changes in accounts receivable, amount due from factor, and accrued liabilities of approximately $2.3 million, due to working capital management. |
Financing activities overview
Net cash used for financing during the three months ended March 31, 2023 was $34,289 for repayment of the government loan through the BBVA bank.
We did not use or generate any cash for investing activities during the three months ended March 31, 2023.
Liquidity and Capital Resources
Since our inception, our capital needs have been principally met through proceeds from the sale of equity and debt securities. We expect capital expenditures to be less than $100,000 during the next twelve months.
The following sets forth our primary sources of capital during the previous two years:
In December 2022, we entered into and closed a securities purchase agreement (the “Purchase Agreement”) with AJB Capital Investments, LLC under which we issued a $2,200,000 principal amount senior secured promissory note (the “Note”). The principal amount of the Note is due six months following the date of issuance, subject to one six-month extension. Interest under the Note accrues at a rate of 10% per annum, payable monthly through month six. In the event the maturity date of the Note is extended, interest will accrue at the rate of 12% per annum in months seven through twelve, payable monthly. The Note is secured by a lien on substantially all of the Company’s assets and properties can be prepaid in whole or in part without penalty at any time.
In March 2022, in connection with the acquisition of Swivel Secure, we assumed a €500,000 government loan that was issued through BBVA Bank during the COVID-19 pandemic. The loan bears interest at the rate of 1.75% per annum and is payable in monthly installments of approximately $11,900 inclusive of interest from May 2022 through maturity in April 2026. Upon closing of the acquisition, Swivel Secure had cash equal to the outstanding balance.
We entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to October 31, 2023 and may be discontinued at that time. Pursuant to the terms of the arrangement, from time to time, we sell to the Factor a minimum of $150,000 per quarter of certain of our accounts receivable balances on a non-recourse basis for credit approved accounts. The Factor remits 35% of the foreign and 75% of the domestic accounts receivable balance to us (the “Advance Amount”), with the remaining balance, less fees, forwarded to us once the Factor collects the full accounts receivable balance from the customer. In addition, from time to time, we receive over advances from the Factor. Factoring fees range from 2.75% to 15% of the face value of the invoice factored and are determined by the number of days required for collection of the invoice. We expect to continue to use this factoring arrangement periodically to assist with our general working capital requirements due to contractual requirements
Liquidity outlook
At March 31, 2023, our total cash and cash equivalents were $722,335, as compared to approximately $2,635,522 at December 31, 2022. At March 31, 2023, we had working capital of approximately $3,511,000.
As discussed above, 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 $798,000 per month to conduct our operations, a monthly amount that we have been unable to consistently achieve through revenue generation. During for the first three months of 2023, we generated $3,083,767 of revenue which did not generate enough cash to fully fund our average monthly requirements. We expect that Swivel Secure will start to generate positive cash flow in 2023. We also have approximately $3.8 million of inventory purchased for projects in Nigeria. We are looking into other markets and opportunities to sell or return the product to generate additional cash.
If we are unable to generate sufficient revenue to fund current operations and execute our business plan, we may need to obtain additional third-party financing. Our secured note is due on June 22, 2023 which we expect to extend for an additional six months. Unless we generate sufficient positive cash flow from operations or liquidation of existing inventory, we expect that we will need to obtain additional financing during the next twelve months to be used in part to repay our outstanding secured note.
Our long-term viability and growth will depend upon the successful commercialization of our technologies and our ability to obtain adequate financing. To the extent that we require such additional financing, no assurance can be given that any form of additional financing will be available on terms acceptable to us, that adequate financing will be obtained to meet our needs, or that such financing would not be dilutive to existing stockholders. If available financing is insufficient or unavailable or we fail to continue to generate sufficient revenue, we may be required to further reduce operating expenses, delay the expansion of operations, be unable to pursue merger or acquisition candidates, or in the extreme case, not continue as a going concern.
ITEM 4. |
CONTROLS AND PROCEDURES. |
Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2023. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Based on the evaluation of our disclosure controls and procedures as of March 31, 2023, our CEO and CFO concluded that, as of such date, our disclosure controls and procedures were not effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.
Changes in Internal Control Over Financial Reporting
As reported in our 10-K for the year ended December 31, 2022, in connection with the audit of our financial statements as of and for the year ended December 31, 2022, our management identified a material weakness relating to the effectiveness of management’s review and controls over the income tax provision in our financial footnotes, such that management’s review procedures were not operating at a level of precision to prevent or detect a potential material misstatement in our consolidated financial statements. We have also identified a lack of control over our foreign subsidiaries with respect to the filing of required tax returns on a timely basis.
We are currently in the process of engaging a consultant to review transactions for appropriate technical accounting, reconcile accounts, review significant transactions and assist with the preparation of financial statements. Other than the forgoing, there have been no changes in our internal control over financial reporting during the fiscal quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II — OTHER INFORMATION
ITEM 6. |
Exhibits |
The following exhibits are being filed or furnished with this quarterly report on Form 10-Q.
Exhibit No. |
Description |
|
31.1* |
Certificate of CEO of Registrant required under Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended | |
31.2* |
Certificate of CFO of Registrant required under Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended | |
32.1* |
Certificate of CEO of Registrant required under 18 U.S.C. Section 1350 | |
32.2* |
Certificate of CFO of Registrant required under 18 U.S.C. Section 1350 | |
101.INS |
Inline XBRL Instance | |
101.SCH |
Inline XBRL Taxonomy Extension Schema | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation | |
101.DEF |
Inline XBRL Taxonomy Extension Definition | |
101.LAB |
Inline XBRL Taxonomy Extension Labels | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation | |
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* Filed herewith.
+ Certain portions of this exhibit (indicated by “[***]”) have been omitted as the Registrant has determined that such portions are (a) not material and (b) would likely cause competitive harm to the Registrant if publicly disclosed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
BIO-Key International, Inc. |
|
Dated: June 9, 2023 |
/s/ MICHAEL W. DEPASQUALE |
Michael W. DePasquale |
|
Chief Executive Officer |
|
Dated: June 9, 2023 |
/s/ CECILIA C. WELCH |
Cecilia C. Welch |
|
Chief Financial Officer |