Dan Thomas's questions to BIO KEY INTERNATIONAL (BKYI) leadership • Q2 2025
Question
The analyst asked about the future trend of operating expenses, the nature and timing of unannounced contracts in Europe, the expected revenue ramp and path to breakeven, the status of reserve inventory sales, the relationship between hardware and software sales, updates on the Africa business, and the company's cash runway through the end of the year.
Answer
Management stated that the Q2 expense increase was a temporary anomaly and the previous run rate should continue. They confirmed significant, real contracts in the defense sector that are already generating revenue in Q3 and will continue to grow, but cannot be announced due to their sensitive nature. These contracts are expected to ramp significantly. The company is actively selling its reserve inventory but won't disclose the remaining amount. In Africa, the focus has shifted to the commercial enterprise market. Management confirmed they have sufficient cash to last through the end of the year.