BIO-key International, Inc. (BKYI, Financial) has disclosed receiving a notification from Nasdaq regarding a compliance issue. The notice highlights the company's failure to meet Nasdaq Listing Rule 5250(c)(1), which necessitates the punctual submission of all required periodic financial statements to the Securities and Exchange Commission (SEC).
The specific compliance issue arises from BIO-key's inability to timely submit its Annual Report on Form 10-K for the fiscal year ending December 31, 2024. Despite this setback, the notice does not currently impact the listing or trading of BIO-key's common stock on the Nasdaq Capital Market. The company must now address this compliance lapse to avoid potential future consequences.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for BIO-key International Inc (BKYI, Financial) is $3.00 with a high estimate of $3.00 and a low estimate of $3.00. The average target implies an upside of 300.53% from the current price of $0.75. More detailed estimate data can be found on the BIO-key International Inc (BKYI) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, BIO-key International Inc's (BKYI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
BKYI Key Business Developments
Release Date: March 27, 2025
- Revenue: Decreased 11% to $6.9 million in 2024.
- License Fee Revenue: Increased 20% to $5.2 million in 2024.
- Service Revenue: Declined to $1.1 million from $2.2 million in 2023.
- Hardware Revenue: Declined to $632,000 from $1.2 million in 2023.
- Gross Profit: Increased to $5.6 million in 2024 from $1.4 million in 2023.
- Adjusted Gross Margin: 78% in 2024 compared to 64% in 2023.
- Operating Expenses: Reduced by $600,000 to $9.7 million in 2024.
- Net Loss: Improved to $4.3 million in 2024 from $8.5 million in 2023.
- Cash Burn: Reduced by 23% to $2.9 million in 2024 from $3.8 million in 2023.
- Debt Reduction: Reduced outstanding debt to approximately $730,000 from $1.5 million.
- Cash and Cash Equivalents: $438,000 as of December 31, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BIO-key International Inc (BKYI, Financial) significantly strengthened its financial position by reducing outstanding debt from approximately $1.5 million to $730,000.
- The company increased high-margin software license fee revenue by 20% to $5.2 million in 2024.
- Gross profit rose 8% to $5.4 million, with an adjusted gross margin of 78% compared to 64% in 2023.
- BIO-key International Inc (BKYI) reduced operating expenses by 6% and trimmed cash burn by 23% in 2024.
- The company secured a $910,000 contract with a foreign financial services client and expanded its deployment with a defense ministry, indicating strong customer interest and growth potential.
Negative Points
- Overall revenue declined by 11% to $6.9 million in 2024 due to the exit from a low-margin services agreement with Swivel Secure.
- Service revenue decreased to $1.1 million from $2.2 million in 2023, and hardware revenue also declined.
- The transition away from Swivel Secure resulted in revenue headwinds, impacting the company's short-term financial performance.
- Despite improvements, BIO-key International Inc (BKYI) reported a net loss of $4.3 million in 2024, though this was an improvement from the previous year.
- The company faces challenges in the cybersecurity market, including the need to address growing cybersecurity vulnerabilities and the shortage of cybersecurity talent.
