10-Q - BIO KEY INTERNATIONAL INC (0001019034) (Filer)

Thu, May 15, 8:36 PM (32 days ago)

**Bio-Key International, Inc. (BKYI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,607,159 (down 26% YoY) due to decreased license fees ($1,098,758, down 44%) and increased hardware sales ($235,803, up 1236%). - **Gross Profit Margin:** 83% (down from 86% in Q1 2024). - **Operating Loss:** $640,638 (up from $508,934 in Q1 2024). - **Net Loss:** $736,545 (up from $510,285 in Q1 2024). - **Cash Flow:** Negative operating cash flow of $835,312, offset by positive financing cash flow of $3,529,227 (primarily from warrant exercises). **Key Metrics & Trends:** - **Customer Concentration:** Two customers accounted for 47% of revenue in Q1 2025, and two customers accounted for 49% of accounts receivable. - **Inventory:** $357,842 (down from $378,307 in Q4 2024), with a reserve due to slow-moving inventory. - **Cash Position:** $3,133,752 (up from $437,604 in Q4 2024). **Uncertainties & Future Operations:** - **Going Concern:** Bio-Key has historically relied on external financing and has substantial doubt about its ability to continue as a going concern. - **Market Risks:** Bio-Key faces risks related to customer concentration, inventory management, and the need for additional financing. - **Strategic Outlook:** Bio-Key plans to expand its IAM market presence, grow government and highly-regulated industry business, and pursue strategic acquisitions. **Impact on Future Operations:** - Bio-Key's ability to generate sufficient revenue and secure additional financing will be crucial for its long-term viability and growth. - The company's strategic initiatives and market expansion efforts may help mitigate risks and drive future performance.