BIO-key has released its report for the second quarter of 2020, which ended on June 30.
The main highlight is BIO-key’s acquisition of PistolStar in a $2.5 million deal that was finalized on the last day of the quarter. PistolStar is the developer of the PortalGuard, a multifactor authentication and single sign-on platform that helps enterprises simplify their digital infrastructure. BIO-key has already delivered PortalGuard for multiple academic institutions and private businesses in the weeks since the acquisition.
In other news, BIO-key provided biometric authentication technology to help a state on the West Coast secure its voter registration database, and added Manny Alia to its Board of Directors in an effort to further its various initiative in Africa. On the financial front, the company also “completed a $24.8 million underwritten public offering of 38.2 million shares of common stock and equivalents and an equal number of five-year warrants (exercisable at $0.65) at a combined price of $0.65.”
BIO-key’s Channel Alliance Program now has 40 partners. According to BIO-key CEO Michael DePasquale, the moves made in the second quarter will position the company for long-term success and help them overcome the revenue hit from COVID-19.
“Q2 was challenging from a revenue standpoint as most software and hardware procurement decision-making was put on hold as customers responded to the COVID-19 pandemic,” explained DePasquale. “BIO-key used this period to advance our strategic goals of expanding the breadth of our software solutions, building out our team and infrastructure in Africa, and laying the groundwork for a complete recapitalization of our Company which we completed in July. We believe these initiatives have positioned us well for long term success.”
BIO-key’s brought in $307,000 in revenue in the quarter, down from the $728,000 it brought in during the same quarter one year ago. Meanwhile, quarterly operating expenses went from $1.4 million in 2019 to $1.5 in 2020, with a total operating loss of $1.4 million.
However, the company is in a strong position thanks to its financial maneuverings. As of August 3, BIO-key has access to roughly $18 million in cash, and no outstanding debt beyond a $500,000 note associated with the PistolStar acquisition.
August 14, 2020 – by Eric Weiss