Bio-Key | 10-Q: FY2025 Q3 Revenue: USD 1.55 M

Revenue: As of FY2025 Q3, the actual value is USD 1.55 M.

EPS: As of FY2025 Q3, the actual value is USD -0.15.

EBIT: As of FY2025 Q3, the actual value is USD -879.53 K.

Financial Metrics by Segment

Segment Revenue

• Services: $268,113 for the three months ended September 30, 2025, compared to $267,371 for the same period in 2024. For the nine months ended September 30, 2025, services revenue was $862,707, compared to $764,062 for the same period in 2024.
• License Fees: $917,951 for the three months ended September 30, 2025, compared to $1,441,011 for the same period in 2024. For the nine months ended September 30, 2025, license fees revenue was $2,822,796, compared to $4,165,669 for the same period in 2024.
• Hardware: $363,642 for the three months ended September 30, 2025, compared to $436,422 for the same period in 2024. For the nine months ended September 30, 2025, hardware revenue was $1,168,269, compared to $537,562 for the same period in 2024.

Operational Metrics

• Gross Profit: $1,191,718 for the three months ended September 30, 2025, compared to $1,679,694 for the same period in 2024. For the nine months ended September 30, 2025, gross profit was $3,752,106, compared to $4,440,268 for the same period in 2024.
• Operating Loss: -$892,190 for the three months ended September 30, 2025, compared to -$580,405 for the same period in 2024. For the nine months ended September 30, 2025, operating loss was -$2,616,678, compared to -$2,743,425 for the same period in 2024.
• Net Loss: -$964,849 for the three months ended September 30, 2025, compared to -$738,959 for the same period in 2024. For the nine months ended September 30, 2025, net loss was -$2,868,790, compared to -$2,916,195 for the same period in 2024.

Cash Flow

• Operating Cash Flow: -$2,838,088 for the nine months ended September 30, 2025, compared to -$2,399,508 for the same period in 2024.
• Investing Cash Flow: -$7,373 for the nine months ended September 30, 2025, compared to -$23,047 for the same period in 2024.
• Financing Cash Flow: $4,456,013 for the nine months ended September 30, 2025, compared to $3,660,414 for the same period in 2024.

Unique Metrics

• Deferred Revenue: $735,000 as of September 30, 2025, compared to $970,000 as of December 31, 2024.
• Allowance for Credit Losses: -$383,254 as of September 30, 2025, compared to -$633,253 as of December 31, 2024.

Future Outlook and Strategy

Core Business Focus

• Growth in IAM Market: BIO-key plans to expand its role in the IAM market by offering a suite of authentication options that complement its biometric solutions. The company aims to grow its business within government services and highly-regulated industries, including financial services, higher education, and healthcare.
• Strategic Acquisitions: The company is actively evaluating businesses in the IAM space that could provide entry into new market verticals or be synergistic with existing operations.

Non-Core Business

• Exploration of New Markets: BIO-key is exploring other markets and opportunities to sell its inventory initially purchased for projects in Nigeria to generate additional cash.

Priority

• Revenue Generation and Financing: The company requires approximately $830,000 per month to conduct operations and is exploring additional financing options to support operations if revenue generation is insufficient.