Dan Khamis's questions to BIO KEY INTERNATIONAL (BKYI) leadership • Q1 2025
Question
Asked a series of detailed financial questions regarding the significant SG&A reduction, high deferred revenue, cash burn, debt repayment, and low accounts receivable. Also inquired about the nature of defense contracts, the status of the Boumarang investment, inventory sales, and the company's low market valuation relative to its book value and cash.
Answer
Executives explained that SG&A was reduced through multiple cost-cutting measures including headcount, marketing, and rent. The high deferred revenue is a positive sign of longer-term contracts. Cash burn is expected to decrease as large payable pay-downs are complete. The company's low valuation is not reflective of its fundamentals and growth prospects, which are strong, particularly with new contracts with government defense ministries.