ImageWare has released its financial results for the third quarter of the year. The company’s brought in about $2.47 million in revenue for the quarter, which translates to approximately $1.6 million in gross profits.
Those figures compare favorably to the same period in 2019. Revenues are up 215 percent from $785,000 a year ago, while gross profits are up 152 percent from $647,000. The company posted a net loss of $626,000 for the quarter, which is still an improvement over the approximately $2.67 million it lost in the third quarter of 2019. However, ImageWare’s margins were better in 2019 (82 percent versus 66 percent), with the company attributing the discrepancy to one-time costs that were incurred for an unnamed client.
The story is similar for the full nine-month period. Revenues for the first three quarters of 2020 are a hair under $4 million (up 37 percent), while the gross profits are about $2.9 million and the net loss is about $6.8 million (down from $9.2 million).
Much of ImageWare’s third quarter revenue came from an existing contract with the U.S. Department of Veterans Affairs, which placed $1.2 million in orders for smart badge technology. ImageWare also hired a new VP of Sales and received $2.2 million equity advance as the first tranche in an $11.56 million round of Series D funding that closed on November 12. The moves are part of the company’s ongoing transformation as it looks to drive sales and monetize its intellectual property moving forward.
“Our $11.56 million capital raise provides us with the means and the runway to continue building and growing ImageWare 2.0 to achieve meaningful success for our investors on our way to becoming cash flow positive,” said ImageWare Chair, President, and CEO Kristin Taylor.
ImageWare generated 79 net-new opportunities in the third quarter, more than half of which were in law enforcement. Its third quarter performance improved on Q2, when the company brought in $733,000 in revenue.
November 26, 2020 – by Eric Weiss