AI Analysis | Feedback

Here are 1-2 brief analogies for BIO-key International (BKYI):

• A biometric-centric Okta, providing identity and access management solutions with a strong focus on secure, passwordless authentication using biometrics.

• The enterprise equivalent of Apple's Face ID for securing logins and access, but across a wide range of business applications and devices.

AI Analysis | Feedback

• Identity and Access Management (IAM) Platform (e.g., PortalGuard Identity-as-a-Service): Provides a comprehensive suite of tools for managing user identities and controlling secure access to enterprise applications and data.
• Biometric Authentication Solutions: Offers secure, multi-factor authentication using various biometrics, such as fingerprint, facial, or palm vein recognition, to verify user identities.
• Biometric Hardware Devices: Sells a range of fingerprint scanners and other biometric hardware devices designed for seamless integration with their software solutions.
• Professional Services: Delivers consulting, implementation, training, and ongoing support to help organizations deploy and optimize their identity and access management solutions.

AI Analysis | Feedback

BIO-key International (BKYI) primarily sells its biometric identification and identity and access management solutions to **other companies and government organizations (B2B/B2G)**, rather than directly to individuals.

While BIO-key's financial reports indicate a significant concentration of revenue from one specific, unnamed customer (which accounted for approximately 21% of total revenue in 2023 and 34% in 2022), the company does not publicly disclose the names of its major customers in its financial filings or investor relations materials.

Instead of specific company names, BIO-key generally describes its customer base by the **industry verticals** it serves. Therefore, while specific customer company names cannot be provided due to non-disclosure by BIO-key International, their major customers are organizations that fall within these categories:

• **Enterprise** (across various commercial sectors)
• **Healthcare organizations**
• **Financial services institutions**
• **Government agencies** (federal, state, and local)
• **Educational institutions**
• **Retail businesses**
• **Law enforcement agencies**

These organizations utilize BIO-key's products and solutions for various identity and access management and security applications.

AI Analysis | Feedback

AI Analysis | Feedback

Michael W. DePasquale, Chairman and Chief Executive Officer

Mr. DePasquale has served as Chief Executive Officer of BIO-key International since January 2003 and Chairman since February 2014. He brings over 25 years of executive management, sales, and marketing experience to the company. Prior to joining BIO-key, he served as President and Chief Executive Officer of Prism eSolutions, Inc. He was also Group Vice President for WRC Media, a distributor of supplemental education products and software. From 1996 to 1999, he was Senior Vice President of Jostens Learning Corporation, a multimedia curriculum provider that was acquired by WRC Media. Mr. DePasquale was part of a team, alongside GE Capital and Bain Partners, that purchased Jostens Learning in 1996. He also held sales and marketing management positions with McGraw-Hill and Digital Equipment Corporation.

Cecilia C. Welch, Chief Financial Officer and Principal Accounting Officer

Ms. Welch was appointed Vice President and Chief Financial Officer of BIO-key International in December 2009, having joined the company in 2007 as Corporate Controller. She possesses over 25 years of operational and financial management experience within various technology corporations. Before her tenure at BIO-key, she served as Controller for SavaJe Technologies, Crystal Systems, and ATN Microwave. ATN Microwave was acquired by Agilent Technologies.

Mira K. LaCous, Chief Technology Officer

Ms. LaCous serves as the Chief Technology Officer for BIO-key International.

James D. Sullivan, Vice President, Strategy and Compliance and Chief Legal Officer

Mr. Sullivan holds the position of Vice President, Strategy and Compliance and Chief Legal Officer at BIO-key International.

Mark Cochran, President at PortalGuard

Mr. Cochran is the President of PortalGuard, a platform offered by BIO-key International.

AI Analysis | Feedback

Here are the key risks to BIO-key International (BKYI):

1. Lack of Profitability and Financial Distress: BIO-key International has consistently reported net losses and is not profitable. The company faces financial challenges including declining quarterly revenue and high operational costs relative to its revenue, leading to negative profit margins. There are concerns about its cash flow and the company has less than a year of cash runway. Macroaxis indicates a high probability of financial distress, exceeding 80%. The company is also carrying a notable amount of debt.
2. Stock Price Volatility and Delisting Risk: The trading price of BKYI's common stock has been highly volatile. There is a risk of delisting if the stock price consistently remains below $1 per share, and a reverse stock split is a possibility to address this.
3. Intense Competition and Long Sales Cycles: BIO-key operates in a competitive market, facing larger players such as Okta and Microsoft. The company experiences long sales cycles, particularly for government contracts, which contributes to significant variability and unpredictability in its quarterly revenue performance due to the timing of large orders and renewals.

AI Analysis | Feedback

The rapid adoption and integration of "Passkeys" by major technology platforms (Apple, Google, Microsoft) presents a significant emerging threat. Passkeys leverage FIDO standards to provide a user-friendly, passwordless authentication experience using device-native biometrics (such as fingerprint or facial recognition) or PINs, often with seamless syncing across devices. As enterprises increasingly adopt Passkeys for secure and convenient login across cloud applications and internal systems, relying on employees' existing smartphones and computers, the demand for third-party dedicated biometric hardware and proprietary software solutions, which form a significant part of BIO-key's business, could diminish. This trend allows organizations to utilize existing employee devices and their built-in biometric capabilities, potentially bypassing the need for specialized biometric solutions offered by BIO-key for primary authentication needs.

AI Analysis | Feedback

Global Biometrics Market

Identity and Access Management (IAM) Market

FIDO Authentication Market

Healthcare Biometrics Market

Biometrics in Workforce Management Market

AI Analysis | Feedback

Here are the expected drivers of future revenue growth for BIO-key International (BKYI) over the next 2-3 years:

1. Growth in High-Margin Software License Fees and Subscription Contracts: BIO-key is strategically focusing on increasing its high-margin software license revenue and expanding its base of subscription contracts. This shift is evidenced by a 52% rise in high-margin license revenue in Q3 2024 and continued growth in license fee revenue in Q2 2025, reflecting a growing subscription contract base. The company's decision to exit lower-margin third-party services and concentrate on its own BIO-key branded solutions, such as PortalGuard Identity and Access Management (IAM) and Identity-Bound Biometrics, is expected to enhance overall profitability and contribute to this growth.
2. Expansion in Existing Large-Scale Enterprise and Government Customers: A significant driver of future revenue is the continued expansion of deployments with existing, long-term customers. BIO-key has reported securing substantial orders from and expanding services to established clients. Examples include a large order from a leading foreign defense ministry, additional deployments within the province of British Columbia and Williamsburg, Virginia, and a substantial upgrade by a long-time foreign banking and financial services customer to a more sophisticated biometric solution hosted on AWS. Furthermore, the company has seen additional deployments of finger biometric scanners for a major long-time customer.
3. Expansion into New Markets and Strategic Sectors: BIO-key is actively pursuing growth by penetrating new markets and strategically important sectors. The company is focusing on expanding its revenue in the defense and intelligence sectors, including new EMEA (Europe, Middle East, and Africa) contracts. This includes a significant identity and access management project with the National Bank of Mozambique and a three-year PortalGuard deployment with a Middle Eastern police force. The global increase in defense spending, particularly in cybersecurity, presents a substantial opportunity for BIO-key's security solutions. Additionally, BIO-key is collaborating with partners to extend its reach into the Internet of Things (IoT) and autonomous systems for access control and cybersecurity.
4. Launch and Adoption of New and Enhanced Product Platforms: Investment in research and development (R&D) and the introduction of new products and platform enhancements are expected to drive future revenue. BIO-key has launched its PortalGuard IDaaS (Identity-as-a-Service) platform on the AWS marketplace to broaden its global customer reach and visibility. The company is also investing in R&D to further enhance the capabilities of its solutions, including upgrades to PortalGuard, and is exploring new product lines. The anticipated launch of Passkey:YOU, a new biometric authentication solution, also represents a potential new revenue stream.

AI Analysis | Feedback

Share Issuance

• In October 2025, BIO-key entered a warrant inducement agreement where an existing institutional investor exercised Series A and B warrants to purchase 3,091,668 shares at $1.02 per share, generating approximately $3.1 million in gross proceeds.
• In July 2020, BIO-key announced an underwritten public offering of 33,230,000 shares of common stock (or pre-funded warrants) and common warrants, with expected gross proceeds of $21.6 million at a combined price of $0.65 per share and common warrant.
• Sales of common stock under an employee stock purchase plan provided approximately $3,740 during the year ended December 31, 2024.

Inbound Investments

• An existing institutional investor's exercise of warrants in October 2025 resulted in approximately $3.1 million in gross proceeds for the company.
• A public offering in July 2020 generated expected gross proceeds of $21.6 million.
• Approximately $3,908,000 was provided by financing activities during the year ended December 31, 2024, which included proceeds advanced under a secured note and proceeds from the exercise of warrants.

Capital Expenditures

• Net cash used in investing activities for capital expenditures totaled $13,047 during the year ended December 31, 2024.