Wed, Aug 14, 9:03 PM (153 days ago)
For the quarter ending June 30, 2024, BIO-key International, Inc. reported a significant decline in revenues, totaling $1,141,286, down 41% from $1,928,929 in the same period of 2023. This drop was primarily driven by reduced service revenues (down 54%) and license fees (down 37%), attributed to delayed orders. However, hardware sales increased by 15%. Gross profit improved to $879,014, reflecting a gross margin of 77%, up from 17% due to substantial reductions in cost of goods sold, particularly in service costs which fell 80%. Operating expenses decreased by 6% to $2,533,100, with selling, general, and administrative costs down 9%. The company reported a net loss of $1,666,950, a 36% reduction compared to the previous year. Cash flow from operations was negative at $1,123,533, but financing activities provided $1,912,408 mainly from a new $2,360,000 senior secured note. Despite improved cash reserves of $1,260,351, the company faces challenges with negative working capital and ongoing losses, raising concerns about its ability to continue operations without additional financing. The outlook remains uncertain as the company seeks to regain compliance with Nasdaq listing requirements and explore new markets.