Dan Cummings's questions to BIO KEY INTERNATIONAL (BKYI) leadership • Q3 2024
Question
Asked about the nature of revenue from the defense ministry and British Columbia deals, the drivers and sustainability of high gross margins, the amount of hardware sold and expected to be sold, one-time financing costs, the rationale for exiting the Swivel Secure services agreement, and the status of accounts receivable.
Answer
The executives clarified that the defense ministry deal is perpetual with a maintenance component, while the British Columbia deal is subscription-based. High gross margins are sustainable due to a focus on license sales, selling written-down hardware, and exiting a low-margin service contract. A large hardware order is expected in Q4. Most financing costs were in Q3, and the majority of Q3 receivables have been collected.