Bio-Key International, Inc. (BKYI): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage en évolution rapide de la cybersécurité, Bio-Key International, Inc. (BKYI) émerge comme une force pionnière, révolutionnant l'identité et la gestion de l'accès par le biais de technologies d'authentification biométrique de pointe. En mélangeant de manière transparente les systèmes avancés de reconnaissance des empreintes digitales avec des solutions de sécurité d'entreprise robustes, la société offre une approche transformatrice de la vérification de l'identité numérique qui promet de redéfinir la façon dont les organisations protègent leurs actifs les plus critiques. Plongez dans la toile du modèle commercial complexe qui alimente la stratégie innovante de Bio-Key, révélant les mécanismes sophistiqués stimulant leur mission pour améliorer la sécurité dans un monde numérique de plus en plus interconnecté.

Bio-Key International, Inc. (BKYI) - Modèle commercial: partenariats clés

Fournisseurs de technologie de gestion de l'identité et de l'accès (IAM)

Bio-Key s'associe à plusieurs fournisseurs de technologies IAM pour améliorer ses solutions d'authentification biométriques.

Partenaire	Détails du partenariat	Année établie
Microsoft Azure Active Directory	Intégration des solutions IAM	2019
Okta	Intégration d'authentification biométrique	2020

Développeurs de logiciels de sécurité d'entreprise

Les collaborations stratégiques avec les développeurs de logiciels de sécurité d'entreprise étendent la portée du marché de Bio-Key.

• Sécurité IBM
• Symantec (Broadcom)
• Cyberark

Intégrateurs de solutions d'authentification biométrique

Bio-Key travaille avec des intégrateurs spécialisés pour déployer des systèmes d'authentification biométriques complexes.

Intégrateur	Marché vertical	Échelle de mise en œuvre
Saic	Secteur du gouvernement	Déploiements à grande échelle
Accentuation	Services financiers	Solutions de niveau d'entreprise

Fournisseurs de services cloud

Les partenariats cloud permettent des solutions d'authentification biométriques évolutives et sécurisées.

• Amazon Web Services (AWS)
• Google Cloud Platform
• Microsoft Azure

Cabinets de conseil en cybersécurité

Les collaborations avec les cabinets de conseil en cybersécurité fournissent des conseils stratégiques et des informations sur le marché.

Cabinet de conseil	Domaine de mise au point	Valeur de partenariat
Deloitte	Gestion des risques	Engagement de consultation annuel de 500 000 $
Pwc	Stratégie de sécurité	350 000 $ services de conseil annuels

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: Activités clés

Développer des technologies d'authentification biométrique

Bio-Key International se concentre sur les technologies avancées d'authentification biométrique avec des investissements de recherche et de développement spécifiques. Au quatrième trimestre 2023, la société a alloué 1,2 million de dollars au développement technologique.

Métriques de développement technologique	2023 données
Dépenses de R&D	1,2 million de dollars
Demandes de brevet	3 nouveaux brevets
Cycles d'innovation technologique	2-3 par an

Création de solutions logicielles de gestion des identités

Bio-Key développe des plateformes de gestion des identités complètes ciblant les secteurs des entreprises et du gouvernement.

• Suite de gestion de l'identité d'entreprise
• Solutions de sécurité de qualité gouvernementale
• Plates-formes d'authentification multi-facteurs

Recherche et développement de systèmes de reconnaissance des empreintes digitales

La société maintient une équipe de R&D dédiée se concentrant sur les technologies avancées de reconnaissance des empreintes digitales.

R&D de reconnaissance d'empreintes digitales	2023 métriques
Taille de l'équipe R&D	12 ingénieurs spécialisés
Investissement annuel de R&D	3,5 millions de dollars
Cible d'amélioration de la précision	Taux de reconnaissance de 99,7%

Implémentation de plateformes de sécurité d'entreprise

Bio-Key fournit des solutions de sécurité complètes pour des environnements d'entreprise complexes.

• Gestion d'accès sécurisé
• Implémentation d'architecture de confiance zéro
• Intégration de sécurité cloud et sur site

Fournir des services professionnels et un support technique

L'entreprise offre de vastes services professionnels soutenant ses déploiements de technologie biométrique.

Métriques des services professionnels	Performance de 2023
Taille de l'équipe de support technique	25 professionnels spécialisés
Temps de réponse moyen	2,5 heures
Taux de satisfaction client	94.3%

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: Ressources clés

Algorithmes d'identification des empreintes digitales propriétaires

Depuis 2024, Bio-Key tient 7 brevets actifs liés aux technologies d'identification biométrique. Le portefeuille algorithmique principal de la société se concentre sur Authentification multi-facteurs avec des taux de précision démontrant:

• Précision correspondante à 99,7% d'empreintes digitales
• Taux de rejet de 0,03%
• Taux de fausse acceptation de 0,01%

Propriété intellectuelle et brevets logiciels

Catégorie de brevet	Nombre de brevets actifs	Durée de protection des brevets
Authentification biométrique	5	Jusqu'en 2035-2038
Logiciel de gestion de l'identité	3	Jusqu'en 2036-2039

Talent d'ingénierie technique

Depuis le quatrième trimestre 2023, Bio-Key utilise 42 professionnels de l'ingénierie technique avec une expertise spécialisée dans:

• Développement d'algorithmes biométriques
• Ingénierie de cybersécurité
• Conception d'infrastructure cloud

Infrastructure d'authentification basée sur le cloud

Métrique d'infrastructure	Spécification 2024
Capacité de traitement des nuages	500 000 demandes d'authentification / heure
Garantie de disponibilité	99.99%
Centres de données mondiaux	3 emplacements redondants

Capacités de recherche et de développement

Investissement en R&D pour l'exercice 2023: 2,1 millions de dollars, représentant 18,5% du total des revenus de l'entreprise. Les principaux domaines d'intérêt comprennent:

• Algorithmes de correspondance biométrique avancés
• Cadres d'authentification Zero-Trust
• Intégration d'apprentissage automatique

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: propositions de valeur

Solutions d'authentification multi-facteurs avancées

Offres internationales bio-clés Gestion de l'identité et de l'accès (IAM) Solutions avec les spécifications clés suivantes:

Méthode d'authentification	Spécifications techniques
Authentification des empreintes digitales	Taux de précision de 99,7%
Plate-forme biométrique mobile	Support pour plus de 5 méthodes de vérification biométrique
Authentification d'entreprise	Compatible avec plus de 25 protocoles de sécurité d'entreprise

Sécurité améliorée pour les clients d'entreprise et le gouvernement

Métriques de performance de sécurité:

• Réduction des tentatives d'accès non autorisées de 94%
• Conformité aux normes d'authentification NIST 800-63B
• Soutien aux exigences de vérification de l'identité du gouvernement FIPS 201

Vérification d'identité biométrique sans couture

Les capacités techniques comprennent:

Technologie de vérification	Métriques de performance
Numérisation biométrique sans contact	Taux de fausse acceptation de 0,001%
Correspondance biométrique multimodale	Vitesse de traitement de 0,3 seconde par authentification

Plates-formes de gestion des identités rentables

Métriques de performance financière:

• Réduction des coûts de mise en œuvre moyenne de 37%
• Économies de coûts opérationnels annuels de 250 000 $ pour les entreprises de taille moyenne
• Retour sur investissement (ROI) dans les 8 à 12 mois suivant le déploiement

Risque réduit d'accès au système non autorisé

Statistiques d'atténuation des risques de sécurité:

Catégorie de risque	Pourcentage de réduction
Prévention des vols d'identification	Réduction de 92%
Atténuation des menaces d'initié	85% ont diminué la vulnérabilité
Prévention des violations externes	97% de protection améliorée

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: relations avec les clients

Engagement de l'équipe de vente directe

Depuis le quatrième trimestre 2023, Bio-Key International maintient une équipe de vente directe axée sur les segments du marché des entreprises et du gouvernement. L'équipe commerciale comprenait 12 professionnels dévoués ciblant les solutions d'authentification biométrique et de gestion de l'identité.

Canal de vente	Nombre de représentants commerciaux	Segment du marché cible
Ventes d'entreprise	7	Grandes entreprises
Ventes gouvernementales	5	Agences fédérales et étatiques

Services techniques et de mise en œuvre

Bio-Key fournit un support technique complet avec une équipe dédiée de 8 spécialistes techniques.

• Disponibilité du support technique 24/7
• Temps de réponse moyen: 2 heures
• Prise en charge multicanal (téléphone, e-mail, portail Web)

Développement de solutions personnalisées

En 2023, Bio-Key a terminé 15 projets de solution d'authentification biométrique personnalisés pour les clients d'entreprise.

Type de solution	Nombre de projets	Valeur moyenne du projet
Gestion de l'identité	8	$175,000
Systèmes de contrôle d'accès	7	$225,000

Maintenance et mises à jour des logiciels en cours

Bio-Key propose des contrats de maintenance de logiciels continus avec 92 clients en entreprise actifs en décembre 2023.

• Valeur du contrat de maintenance annuel: 75 000 $ - 250 000 $
• Cycle de mise à jour des logiciels trimestriels
• Gestion des correctifs de sécurité proactive

Programmes de formation et de consultation

Les services de formation et de consultation ont généré 1,2 million de dollars de revenus en 2023.

Type de formation	Nombre de sessions	Coût moyen de la session
Formation sur place	22	$15,000
Formation virtuelle	45	$5,000

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: canaux

Équipe de vente directe d'entreprise

Depuis le quatrième trimestre 2023, Bio-Key International a maintenu une équipe de vente directe des entreprises axée sur les solutions biométriques d'authentification et de gestion de l'identité. L'équipe commerciale ciblée:

• Agences gouvernementales
• Institutions de soins de santé
• Organisations de services financiers
• Services de sécurité des entreprises

Métriques du canal de vente	2023 données
Taille de l'équipe de vente directe	12-15 représentants des ventes d'entreprises
Cycle de vente moyen	6 à 9 mois pour les contrats d'entreprise
Plage de valeur du contrat annuel	$50,000 - $500,000

Plateformes numériques en ligne

Bio-Key utilise plusieurs plateformes numériques pour la distribution des produits et l'engagement des clients:

• Site Web de l'entreprise: www.bio-key.com
• Portail de gestion des identités basé sur le cloud
• Plateforme SaaS pour les services d'authentification

Conférences de technologie et événements de l'industrie

Participation clé de l'industrie en 2023-2024:

• Conférence RSA
• Semaine d'identité
• Sécurité Gartner & Sommet de gestion des risques

Références du réseau partenaire

Catégorie de partenaire	Nombre de partenaires
Intégrateurs technologiques	37
Partenaires revendeurs	24
Fournisseurs de services cloud	8

Marketing numérique et communications Web

Les canaux de marketing numérique comprennent:

• Page d'entreprise LinkedIn
• Twitter (@Biokey)
• Publicité numérique ciblée
• Webinaire Series

Métriques du marketing numérique	Performance de 2023
Visiteurs mensuels du site Web	15,000-20,000
LinkedIn adepte	3,500
Présence au webinaire	250-400 par événement trimestriel

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: segments de clientèle

Organisations d'entreprise

Bio-clé internationale cible les organisations d'entreprise avec Solutions de gestion de l'identité et de l'accès.

Segment de clientèle	Pénétration du marché	Contribution annuelle des revenus
Grandes entreprises	42 clients d'entreprise	3,7 millions de dollars en 2023
Entreprises de taille moyenne	87 clients d'entreprise	2,1 millions de dollars en 2023

Agences gouvernementales

Le secteur gouvernemental représente un segment de clientèle essentiel pour les technologies d'authentification biométriques de Bio-Key.

• Contrats du gouvernement fédéral: 12 accords actifs
• Mise en œuvre du gouvernement au niveau de l'État: 23 agences d'État
• Revenu total du secteur gouvernemental: 4,2 millions de dollars en 2023

Institutions de services financiers

Bio-Key fournit des solutions d'authentification avancées pour les clients du secteur financier.

Type d'institution financière	Nombre de clients	Segment des revenus
Banques	45 institutions bancaires	2,9 millions de dollars en 2023
Coopératives de crédit	31 coopératives de crédit	1,4 million de dollars en 2023

Fournisseurs de soins de santé

Le segment des soins de santé se concentre sur la gestion sécurisée de l'identité des patients.

• Systèmes hospitaliers servis: 67
• Cliniques de santé: 142
• Revenu total du secteur des soins de santé: 3,5 millions de dollars en 2023

Établissements d'éducation et de recherche

Bio-Key fournit des solutions d'identité pour les environnements éducatifs.

Type d'institution	Les clients servis	Revenus annuels
Universités	38 établissements d'enseignement supérieur	1,6 million de dollars en 2023
Centres de recherche	22 installations de recherche	0,9 million de dollars en 2023

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2023, Bio-Key International, Inc. a déclaré des frais de recherche et de développement de 3 313 000 $, ce qui représentait une augmentation de 2 853 000 $ au cours de l'exercice précédent.

Exercice fiscal	Dépenses de R&D	Changement d'une année à l'autre
2022	$2,853,000	-
2023	$3,313,000	+16.1%

Salaires d'ingénierie logicielle

Bio-Key alloue environ 45 à 50% de son budget total de R&D à la rémunération du personnel d'ingénierie logicielle.

• Salaire moyen d'ingénieur logiciel: 120 000 $ - 145 000 $ par an
• Total du travail d'ingénierie logicielle: environ 20-25 employés
• Coût annuel de main-d'œuvre en génie logiciel: 2,4 $ à 3,6 millions de dollars

Opérations de marketing et de vente

Les dépenses de marketing et de vente pour la clé biologique en 2023 ont totalisé 2 987 000 $, contre 2 645 000 $ en 2022.

Catégorie de dépenses	2022 coûts	2023 coûts
Personnel de vente	$1,322,000	$1,493,000
Campagnes marketing	$823,000	$994,000
Marketing total & Ventes	$2,645,000	$2,987,000

Maintenance des infrastructures cloud

Les coûts de maintenance des infrastructures cloud de Bio-Key pour 2023 étaient d'environ 675 000 $, ce qui représente environ 8 à 10% des dépenses opérationnelles totales.

• Fournisseur de services cloud: principalement Amazon Web Services (AWS)
• Dépenses mensuelles d'infrastructure cloud: environ 56 250 $
• Coûts de mise à l'échelle annuels estimés: augmentation de 12 à 15%

Protection des brevets et de la propriété intellectuelle

En 2023, Bio-Key a investi 412 000 $ dans la protection juridique de dépôt, de maintenance et de propriété intellectuelle des brevets.

Dépenses de protection IP	2022	2023
Frais de dépôt de brevet	$185,000	$224,000
Protection juridique	$176,000	$188,000
Total des dépenses IP	$361,000	$412,000

Bio-Key International, Inc. (BKYI) - Modèle d'entreprise: Strots de revenus

Frais de licence de logiciel

Pour l'exercice 2023, Bio-Key a déclaré des revenus de licence de logiciels de 3,1 millions de dollars, représentant un élément clé de leur stratégie de revenus.

Flux de revenus	2023 Montant	Pourcentage du total des revenus
Licence de logiciel	3,1 millions de dollars	35.4%

Services d'authentification basés sur l'abonnement

La plate-forme d'identité en tant que service (IDAAS) de Bio-Key a généré 2,5 millions de dollars de revenus d'abonnement pour 2023.

• Revenus d'abonnement récurrent annuel: 2,5 millions de dollars
• Valeur du contrat d'abonnement moyen: 45 000 $

Services de conseil professionnel

Les services de conseil et de mise en œuvre ont contribué 1,2 million de dollars aux revenus de la société en 2023.

Type de service de conseil	Revenus de 2023
Conseil de gestion de l'identité	$750,000
Services de mise en œuvre	$450,000

Ventes de produits matériels

Les ventes de matériel, y compris les lecteurs d'empreintes digitales et les appareils d'authentification, ont généré 1,8 million de dollars en 2023.

• Ventes des lecteurs d'empreintes digitales: 1,2 million de dollars
• Dispositifs matériels biométriques: 600 000 $

Contrats de maintenance et de soutien

Les contrats annuels de maintenance et de soutien ont atteint 1,4 million de dollars en 2023.

Type de contrat de support	Revenus de 2023
Support standard	$900,000
Support premium	$500,000

BIO-key International, Inc. (BKYI) - Canvas Business Model: Value Propositions

You're looking at the core value BIO-key International, Inc. delivers to its customers, which is all about making security both stronger and simpler. This isn't just about locking doors; it's about frictionless, high-assurance access.

Comprehensive Identity and Access Management (IAM) and Multi-Factor Authentication (MFA)

BIO-key International, Inc. provides solutions that are fundamentally about securing access. They are a global leader in Identity and Access Management (IAM) and biometric authentication technologies. This is the foundation for their value. Their PortalGuard IAM solution is designed to be deployed either cloud-hosted or on-premise, giving flexibility that matters to IT departments.

Strong, flexible, and cost-effective security for cloud or on-premise environments

The value here is cost-effectiveness married to robust security. For instance, their Q3 2025 gross margin stood strong at 77%, indicating efficient delivery of their core software value. They are actively pursuing cost reduction, evidenced by a 7.8% year-over-year decrease in total operating expenses to \$2,083,908 in Q3 2025. This focus on efficiency helps keep the solution cost-effective for you.

Passwordless, phoneless, and tokenless biometric authentication options

This is where BIO-key International, Inc. really differentiates itself. They offer unique biometric-centric, multi-factor identity solutions that let users authenticate without needing a phone, a physical token, or even a password. This patented capability is proven in high-security settings. For example, a deployment with an international defense ministry expanded to secure over 33,000 users using this exact passwordless and tokenless authentication.

The flexibility in authentication factors is broad:

• Passwordless biometric options
• Phoneless biometric options
• Tokenless biometric options
• Support for 17 authentication factors reported in one sector.

Reduced IT support costs, particularly for password resets

When you remove the password reset problem, you cut real operational expense. The identity-bound biometric technology, which relies only on the fingerprint, is specifically designed to deliver substantial personnel savings for clients by eliminating the need for account numbers or cards in certain use cases. This directly translates to lower IT support overhead.

Enhanced operational effectiveness and streamlined user access for over 40 million global users

The scale of deployment proves the effectiveness. BIO-key International, Inc. solutions secure access for over 40 million global users. In a specific segment like State, Local, and Education (SLED) domestically, they serve over 100 educational institutions supporting more than 4 million end users who value the security and ease of use. The Annual Recurring Revenue (ARR) base has grown to approximately \$6.0M as of June 2025, showing a base of committed, recurring value.

Here's a quick look at some key performance and scale metrics as of late 2025:

Metric	Value / Range	Reporting Period / Date
Global Users Secured	Over 40,000,000	As of Q3 2025
Q3 2025 Revenue	\$1,548,706	Q3 2025
Projected Full Year 2025 Revenue	\$6.5M - \$7.0M	Guidance for FY 2025
Annual Recurring Revenue (ARR) Base	~\$6.0M	As of June 2025
Q3 2025 Gross Margin	77%	Q3 2025
Defense Deployment Users	Over 33,000	Reported Deployment Size
Operating Expense Reduction (YoY)	7.8%	Q3 2025

If onboarding takes 14+ days, churn risk rises, so the ease-of-deployment value proposition is critical for rapid adoption.

Finance: draft 13-week cash view by Friday.

BIO-key International, Inc. (BKYI) - Canvas Business Model: Customer Relationships

You're looking at how BIO-key International, Inc. keeps its customers engaged and spending, which is key since their revenue can be lumpy based on big order timing. The relationship strategy mixes high-touch service for big deals with scalable automation for the rest.

Dedicated direct sales and support for large, high-value enterprise and government accounts

BIO-key International, Inc. focuses direct sales efforts on major enterprise and government clients, which often involve multi-year commitments. They are making select additions to their cybersecurity sales and support team specifically to engage with prime contractors and these end customers. For instance, they count two of the top four global defense agencies as customers. In Q2 2025, a foreign defense ministry awarded BIO-key International, Inc. over $600,000 in follow-on orders for secure biometric access. Furthermore, they secured a significant new deployment in Q3 2025 with a major new customer in the Middle East defense sector. Overall, the company reports having about 700 customers on a global basis.

Long-term contracts and renewals with key customers (e.g., large banking customer renewal expected Q1 2026)

Retention is strong here; management noted that BIO-key International, Inc. enjoys 'very high renewal rates in excess of 90%,' meaning their churn rate stays in the single digits. This stability is crucial. Consider the large banking customer: they are on a deployment covering over 29 million users. This customer is expected to renew a contract in early 2026, with management projecting $1 million to $3 million in business and renewal from that single event in Q1 2026. This follows a trend where a long-term financial services customer contributed $690,000 in Q1 2025 from an upgrade, and is projected to contribute approximately $3 million for the next two-year license period starting Q1 2026, up from $1.2 million in the prior two-year period.

Here's a quick look at how revenue from that key financial services relationship has tracked:

Period Reference	Associated Revenue Amount
Q1 2024 Two-Year Renewal Contribution	$1.2 million
Q1 2025 Upgrade Contribution	$690,000
Projected Q1 2026-Q4 2027 Renewal Value	~$3 million

Partner-led sales and localized support through global distributors

Channel sales are a major focus, acting as a force multiplier for BIO-key International, Inc.'s global reach, especially in EMEA. They are actively working to resource their channel alliance program. To build out localized support and sales, they have established key partnerships, such as with Arrow ECS Iberia to strengthen market access in Spain and Portugal, and with Cloud Distribution Co. of Saudi Arabia to expand solutions across the Middle East. This partner network is expected to drive momentum into the new year.

Automated, self-service tools for subscription management (SaaS model)

The Software-as-a-Service model underpins the high-margin nature of the business. For example, Q1 2025 saw gross margin remain strong at 82.6%-83%, which management attributes to this model. The recurring revenue component is clear in the service revenue breakdown. In Q1 2025, recurring support service revenue specifically increased 37% to $265,000 out of total Q1 2025 service revenues of approximately $273,000. For Q3 2025, license fee revenue alone was $918,000. The company's overall revenue for Q3 2025 was $1,548,706.

The SaaS focus is evident in the revenue mix:

• Gross margin target baseline around ~80%.
• Q1 2025 Gross Margin: 82.6%-83%.
• Q3 2025 Gross Margin: 77%.
• Q1 2025 Recurring Support Revenue: $265,000.
• Q3 2025 License Fee Revenue: $918,000.

Self-service tools help manage this recurring base, though the company is still making select additions to its direct sales and support team.

Finance: draft 13-week cash view by Friday.

BIO-key International, Inc. (BKYI) - Canvas Business Model: Channels

You're looking at how BIO-key International, Inc. gets its solutions-from software licenses to fingerprint scanners-into the hands of customers as of late 2025. The channel strategy clearly leans on direct engagement for big deals and a partner ecosystem for broader reach.

Direct Sales Team for large defense, finance, and government contracts

The direct sales effort is clearly targeting high-value, security-sensitive sectors. For instance, BIO-key International, Inc. secured a significant new deployment for a Middle East defense sector organization. Furthermore, follow-on hardware and license orders totaling $134,000 were recorded in Q4 2025 from a foreign defense ministry. The company is also anticipating a large banking customer renewal in Q1 2026 that is expected to be worth between $1 million and $3 million. This focus aligns with the BIO-key CyberDefense Initiative, positioning the company for opportunities in a market where EU member states are expected to spend €350 billion or more on defense in 2026.

Global network of value-added resellers (VARs) and distributors

The channel strategy uses partners as a 'force multiplier.' For the three months ended September 30, 2025, the EMESA region contributed $664,075 to total revenues, showing strong channel performance outside of North America, which contributed $681,699 in the same period. BIO-key International, Inc. has actively expanded this network, partnering with IT2Trust to strengthen market access in Scandinavia and with Cloud Distribution Co. of Saudi Arabia to expand across the Middle East.

Cloud-hosted PortalGuard IDaaS (Identity-as-a-Service) platform

The IDaaS platform shows significant user adoption, which is a key metric for recurring revenue channels. Since its November 2020 launch, over 50 organizations have adopted the PortalGuard IDaaS solution, securing access for more than 4 million users globally. In January 2025 alone, three new educational customers migrated, adding over 30,000 users to the platform.

E-commerce and distribution for biometric hardware sales

Hardware sales are a component of the overall revenue mix, though they carry lower margins. For the nine months ended September 30, 2025, hardware sales showed a 117% increase compared to the same period in 2024, driven by expanded purchases from both new and long-term customers. This channel is supported by the launch of the next-generation EcoID III USB fingerprint scanner, which features FBI FAP 20 certification. However, in the third quarter of 2025 specifically, hardware sales declined to approximately $364,000 from $436,000 in Q3 2024 due to order timing.

Here's a quick look at how the revenue components, which flow through these channels, performed in the third quarter of 2025:

Revenue Component	Q3 2025 Amount	Q3 2024 Amount
Total Revenue	$1,548,706	$2,144,804
License Fee Revenue	$917,951	$1,441,011
Hardware Sales (Approximate)	$364,000	$436,000
Service Revenue	$268,000	$267,000

The company projects full-year 2025 revenue to be in the range of $6.5 million to $7 million.

You should track the geographical breakdown for Q3 2025 to see the channel distribution:

• North America: $681,699
• EMESA: $664,075
• Asia: $140,450
• Africa: $63,482

Finance: draft 13-week cash view by Friday.

BIO-key International, Inc. (BKYI) - Canvas Business Model: Customer Segments

You're looking at the specific groups BIO-key International, Inc. (BKYI) targets with its Identity and Access Management (IAM) and biometric solutions as of late 2025. This isn't about the whole market; it's about where the contracts are landing.

Defense and Intelligence Agencies (Foreign Defense Ministry, international defense agency)

This segment is a major focus, particularly through the BIO-key CyberDefense Initiative, which aims to capture opportunities from anticipated European Union and NATO defense spending commitments. You see concrete order flow here, not just promises. For instance, a foreign defense ministry placed follow-on orders exceeding $600K in the second quarter of 2025. Also, $134,000 in additional hardware and license orders were shipped to a foreign defense ministry in the fourth quarter of 2025. The company completed the initial phase deployment for a new international defense agency customer recently. Cumulative revenue from reference projects with military and defense customers across Europe, South America, and the Middle East has surpassed $3 million over the past few years.

Financial Institutions (national banks, large banking customers)

BIO-key International, Inc. has deep penetration in banking, often using biometric authentication mixed with PINs or account numbers for high security. One very large banking customer in South Africa uses their solutions for every one of their over 20 million customers who access account information. Furthermore, a significant win was announced with the National Bank of Egypt to secure enterprise resources. A long-time financial services customer is projected to contribute approximately $3 million in revenue for the next two-year license period starting in the first quarter of 2026, which is a substantial increase from their prior two-year contribution.

Higher Education and Public Sector (over 100 educational institutions, government departments)

The public sector, especially education, represents a large, established user base. Traditionally, BIO-key International, Inc. has served almost 200 colleges, universities, and affiliated agencies, representing better than 30 million students and faculty. A recent strategic victory was securing a contract with the State of Wyoming Department of Education (WDE) to deploy the PortalGuard IDaaS platform for up to 20,000 staff members. This follows other public sector wins, including Northeast Iowa Community College, Eastern University, and the University of Guam. The Ed Tech JPA approval has reached 195 districts.

Enterprise Commercial Verticals, particularly those with high security and compliance needs

The company serves about 700 customers globally across various enterprise needs. For example, in healthcare, some customers use fingerprint authentication within closed or contained environments for physicians or nurses, balancing convenience with strict access control. This shows the flexibility of using biometrics as a primary or secondary factor.

International markets, with a focus on EMEA (Europe, Middle East, Africa)

Sales efforts have been refocused principally on EMEA and domestic markets. The company showcased its solutions at premier events in Dubai, Spain, and South Africa. To strengthen market access, BIO-key International, Inc. partnered with IT2Trust to cover Denmark, Finland, Norway, and Sweden, and with Arrow ECS Iberia for Spain and Portugal. The company expects full-year 2025 revenue to be in the range of $6.5 - $7M, with growth expected to continue into 2026.

Here's a quick look at the scale across these segments:

Customer Segment Focus	Metric Type	Reported Number/Amount (Late 2025 Data)
Defense/Intelligence	Q2'25 Follow-on Order (Foreign Ministry)	Over $600,000
Defense/Intelligence	Cumulative Defense Revenue (Past Years)	Over $3 million
Financial Institutions	South Africa Bank Customer Reach	Over 20 million customers
Financial Institutions	Projected Renewal Value (Next 2 Yrs)	Approx. $3 million
Higher Education/Public Sector	Wyoming DOE Staff Deployment	Up to 20,000 staff
Higher Education/Public Sector	Traditional Installed Base (Institutions)	Almost 200 colleges/agencies
Higher Education/Public Sector	Traditional Installed Base (Users)	Better than 30 million students/faculty
Enterprise Commercial	Total Global Customers	About 700
Overall Company	Projected Full Year 2025 Revenue	$6.5 - $7.0M

Key customer wins and user metrics driving the model include:

• Secured over $600K in follow-on orders from a Foreign Defense Ministry in Q2'25.
• Shipped $134,000 in hardware/licenses to a foreign defense ministry in Q4'25.
• National Bank of Egypt win for enterprise security.
• Wyoming Department of Education contract for 20,000 staff.
• Partnership with Cloud Distribution Co. of Saudi Arabia in the Middle East.
• Partnered with Arrow ECS Iberia in Spain and Portugal.
• Customer base includes over 700 entities globally.

Finance: draft 13-week cash view by Friday.

BIO-key International, Inc. (BKYI) - Canvas Business Model: Cost Structure

You're looking at the cost side of the BIO-key International, Inc. (BKYI) operation as of late 2025. The structure shows a clear tension between necessary investment in future products and aggressive cost management in overhead.

High cost of research and development (R&D) for new product generations is a major driver. This investment is currently focused on a significant platform modernization and deployment improvements for PortalGuard IDaaS, with a targeted release in the fourth quarter of 2025. For the second quarter of 2025, Research, Development, and Engineering (RD&E) expenses specifically rose to $636,027, up from $591,234 in the second quarter of 2024. This increase was partially offset by lower rent costs during that period.

The company has been actively trimming its overhead. Sales, General, and Administrative (SG&A) expenses saw a significant reduction in the second quarter of 2025. Specifically, Q2 2025 SG&A was $1,680,550, marking a 13.5% reduction compared to $1,941,866 in Q2 2024. This improvement was driven by cuts across several areas.

The Cost of Goods Sold (COGS) structure is directly impacted by the product mix. The gross margin for Q2 2025 moderated to 73%, down from 77% in Q2 2024. This margin compression is a direct result of the Cost of Goods Sold (COGS) for lower-margin hardware sales, as hardware revenue increased significantly as a percentage of total revenue in the period.

Personnel costs for engineering, sales, and administrative staff are a key component of both R&D and SG&A. The reduction in SG&A expenses in Q2 2025 was explicitly attributed to lower administration and sales personnel costs, alongside reduced professional service fees. The R&D expense increase was also tied to higher personnel costs in that division.

Overall Operating expenses showed discipline. Total operating expenses in Q2 2025 were reduced by approximately 8.5% to $2.3 million, down from $2.5 million in Q2 2024. While the outline mentions an 8% reduction in Q3 2025, management indicated that they expect the expense run-rate for the third and fourth quarters of 2025 to be similar to the early-year levels, continuing the focus on cost reduction efforts to reach profitability.

Here's a quick look at the key cost figures from the second quarter of 2025:

Cost Component	Q2 2025 Amount (USD)	Year-over-Year Change (vs. Q2 2024)
SG&A Expenses	$1,680,550	-13.5%
RD&E Expenses	$636,027	+7.6%
Total Operating Expenses	$2.3 million	-8.5%
Gross Margin Percentage	73%	Down from 77%

You should keep an eye on how the mix of revenue affects the COGS, so here are the components driving the margin change:

• Hardware revenue increased significantly year-over-year.
• Hardware sales carry a lower margin than license fees.
• License fee revenue increased 4% to $806,087 in Q2 2025.
• Service revenue increased 11% in Q2 2025.

The Q2'25 SG&A included roughly $0.3 million tied up in global sales efforts and new marketing pushes.

Finance: draft 13-week cash view by Friday.

BIO-key International, Inc. (BKYI) - Canvas Business Model: Revenue Streams

You're looking at how BIO-key International, Inc. converts its Identity and Access Management (IAM) and biometric technology into actual cash flow as of late 2025. The business model relies on a mix of recurring software revenue, hardware sales, and associated services.

The company expects a strong finish to 2025, with full-year revenue projected to be between $6.5 million and $7.0 million. As of December 2025, the Trailing Twelve Months (TTM) revenue stood at $6.91 Million USD. This is supported by a solid recurring revenue foundation.

The Annual Recurring Revenue (ARR) base is estimated to be expanding in the $6-$7 million range. This recurring base has grown significantly, up from approximately $3 million in 2020.

The revenue streams are segmented across software, hardware, and services, which is typical for a full-stack security provider. Here's a look at the components based on recent quarterly data:

Revenue Stream Component	Latest Specific Data Point	Context/Period
Software License Fees (Subscription/SaaS and perpetual licenses)	$917,951 (License fees)	Q3 2025 (down $523,060 YoY)
Hardware Sales (biometric scanners)	$0.57M (Hardware revenue)	Q2 2025 (rose sharply)
Service Revenue (professional services, deployment, and support)	Increased 11% YoY	Q2 2025
Follow-on Hardware/License Orders	$134,000	Recorded in Q4 2025 from a foreign defense ministry

Software License Fees are the core of the recurring model. For instance, in Q3 2025, license fees totaled $917,951. This stream is crucial because it generally carries a higher margin than hardware sales.

Hardware Sales, such as the new EcoID III USB fingerprint scanner, contribute significantly, though they can cause margin fluctuations due to their lower inherent profitability compared to software. In Q2 2025, hardware revenue rose sharply to $0.57 million.

Service Revenue covers professional services, deployment, and ongoing customer support. This stream saw an 11% year-over-year increase in Q2 2025, partly due to support for a large customer upgrade.

The business model focuses on maintaining a high gross margin, which was reported at 77% in Q3 2025. The blended gross margin generally sits between 70 to 80%, depending on the sales mix.

You can see the recent revenue performance below, which feeds into the full-year expectation:

• Q3 2025 Total Revenue: $1.55 million.
• Year-to-date (9 months) 2025 Revenue: just under $5 million.
• Q2 2025 Total Revenue: $1.7 million (a 49% year-over-year increase).

Finance: draft 13-week cash view by Friday.