BIO-key International, Inc. (BKYI): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how BIO-key International, Inc. makes its money as we head into 2026, so I've mapped out their entire operation using the Business Model Canvas. Honestly, the story here is balancing proprietary tech-like their patented biometrics and the PortalGuard IAM platform-against a projected $6.5 million to $7.0 million revenue for 2025, supported by $2.04 million in cash as of September 30, 2025. My two decades in this game tell me the real test is their Key Activities: can they scale those global channel sales while maintaining compliance for their defense and finance Customer Segments? Dive below to see the full nine-block breakdown of their partnerships, costs, and revenue streams; it's a clear picture of their near-term strategy.

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

The Key Partnerships block for BIO-key International, Inc. centers on expanding global reach and securing large-scale deployments through specialized channel partners, distributors, and strategic financial backing.

Global channel partners and distributors are crucial for market penetration, especially in new international territories. BIO-key International, Inc. has actively expanded this network throughout 2025.

• Partnered with SAVIS Group in November 2025 to bring Identity and Access Management (IAM) and biometric authentication solutions to Vietnam.
• Partnered with Cloud Distribution Co., a Saudi Arabia-headquartered Value-Added Distributor, in May 2025 to enhance delivery across the Middle East, including Saudi Arabia and the UAE.
• Partnered with IT2Trust to expand biometric authentication product distribution in the Nordic region.

Strategic alliances for regional market access solidify BIO-key International, Inc.'s presence in key geographic areas. The Iberian Peninsula saw a significant channel move:

BIO-key International, Inc. announced a strategic partnership with Arrow ECS Iberia on March 31, 2025, joining the Channel Alliance Partner program to distribute IAM solutions across Spain and Portugal.

System integrators for large-scale deployments validate the technology in complex environments, particularly in the defense and finance sectors. A major win involved the deployment of PortalGuard On-Prem solutions.

BIO-key International, Inc. partnered with Runlevel, positioning them as a Value-Added Reseller for Portuguese-speaking African countries (PALOP) and Timor-Leste. Their first major customer deployment was with a National Bank in Mozambique, utilizing PortalGuard On-Prem with Multi-factor Authentication (MFA) and Single Sign-On (SSO) capabilities.

The EdTech Joint Powers Authority relationship targets the US educational sector, a segment requiring specific, non-phone-based authentication methods.

• Partnered with the California Ed Tech JPA, which includes 195 member institutions.
• This partnership serves over 2.6 million students.
• The Wyoming Department of Education deployed PortalGuard IDaaS for up to 20,000 staff members.

Institutional investors providing financing offer the necessary capital to support these growth initiatives and balance sheet strengthening. A key event in late 2025 provided immediate liquidity:

In October 2025, BIO-key International, Inc. completed a warrant inducement transaction with an existing institutional investor, raising gross proceeds expected to be approximately $3.1 million. This involved the exercise of outstanding Series A and Series B warrants to purchase 3,091,668 shares at an exercise price of $1.02 per share. Additionally, the Company agreed to issue 6,183,336 new unregistered Warrants, also exercisable at $1.02 per share.

Here is a summary of key partnership activities and associated financial/operational metrics:

The PortalGuard IAM solution secures access for over 40 million users globally, underpinning the value proposition delivered through these partnerships.

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

You're looking at the core actions BIO-key International, Inc. (BKYI) must execute to make this business model work, based on their late 2025 positioning. This isn't just about what they sell; it's about the heavy lifting behind the scenes to keep the technology current and compliant, especially for those high-stakes defense and finance clients.

Developing and upgrading the PortalGuard Identity and Access Management (IAM) platform

The software backbone, PortalGuard IAM, requires continuous engineering to stay ahead. This involves significant R&D investment to modernize the core offering, which provides multi-factor authentication (MFA), single sign-on (SSO), and self-service password reset capabilities for customers.

Here are the numbers reflecting the software revenue and development focus as of late 2025:

The company is focused on growing the Annual Recurring Revenue base, which is all software, meaning high margin potential.

Manufacturing and distributing FBI FAP 20 certified biometric hardware (EcoID III)

A key activity is getting the physical scanners right, especially the new EcoID III. This device launched in October 2025 and carries the necessary certifications for government work, which is a major hurdle cleared.

The hardware sales activity shows clear spikes tied to deployments:

• Launched EcoID III USB fingerprint scanner on October 21, 2025.
• EcoID III achieved FBI FAP 20, PIV, and NIBSS certifications.
• Q2 2025 hardware sales reached $568,824, up from $83,492 in Q2 2024.
• Shipped $134,000 in follow-on hardware and license orders to a foreign defense ministry in Q4 2025.

The hardware sales mix impacts overall margin; Q2 2025 gross margin dipped to 73% from 77% in Q2 2024 due to the higher percentage of lower-margin hardware sales.

Executing the BIO-key CyberDefense Initiative for defense/intelligence markets

This initiative is a strategic push to capitalize on defense spending, particularly in the EU and NATO regions, aiming for classified access environments. Building credibility here means securing large, high-assurance contracts.

Defense sector activity highlights include:

• Cumulative defense ministry revenue over the past few years exceeded $3 million from EU and Middle East reference projects.
• In June 2025, a foreign defense ministry placed new orders exceeding $600K.
• Secured a significant new deployment with a major defense-sector organization in the Middle East.
• The initiative targets EU member states expected to spend over €800B on defense over four years.

Expanding global channel sales and direct sales efforts, especially in EMEA

Growth relies heavily on expanding the footprint through partnerships, especially in Europe, the Middle East, and Africa (EMEA). The company is refocused on BIO-key branded sales in EMEA.

Recent channel expansion activities include:

• Partnered with SAVIS Group to expand into Vietnam (announced November 17, 2025).
• Partnered with VaporVM for expansion in the Middle East and Africa.
• Partnered with IT2Trust for market reach in Scandinavia.
• Q3 2025 Selling, General, and Administrative (SG&A) expenses included roughly $0.3M related to global sales efforts.

Management projects full-year 2025 revenue to be in the range of $6.5-$7.0M.

Maintaining high-security compliance for defense and finance customers

For the high-value customers in finance and defense, compliance isn't optional; it's the entry ticket. This activity is intrinsically linked to the product development and hardware distribution. The company serves a growing base of customers in these sectors that demand the highest security levels.

Compliance and Security Metrics:

The company's gross margin for Q3 2025 was 77%.

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

You're looking at the core assets BIO-key International, Inc. (BKYI) relies on to run its business as of late 2025. These aren't just line items; they are the foundational elements that support their value proposition in the Identity and Access Management (IAM) space.

Proprietary IAM software platform (PortalGuard)

The PortalGuard platform is central to BIO-key International, Inc.'s offering, providing workforce and customer IAM solutions that emphasize passwordless, phoneless, and tokenless authentication methods. You should note that an updated version of this platform is planned for release in late Q1 or early Q2 2026, indicating ongoing investment in this core software asset. The company is focusing on growing its Annual Recurring Revenue (ARR) within the $6-7 million range, which is heavily dependent on the adoption and renewal of these software solutions.

Patented biometric authentication technology (e.g., WEB-key, Passkey:YOU™)

The intellectual property around biometric authentication is a key differentiator for BIO-key International, Inc. This technology underpins their ability to deliver enhanced security. A concrete example of this resource in action is the launch of the next-generation EcoID III USB fingerprint scanner, which achieved FBI FAP 20 certification during the third quarter of 2025. This certification is a significant validation of the hardware and underlying biometric matching algorithms. Furthermore, the technology is designed to capitalize on the shift to in-screen, under-glass biometric sensors in mobile devices.

The technology portfolio includes specific methods protected by patents:

• Proprietary method for enabling next-generation continuous and passive biometric user experiences.
• Indexing method for quickly and iteratively searching a large-scale database of biometric records.

Financial Backing and Liquidity

Maintaining sufficient liquidity is always a critical resource, especially for a company focused on growth initiatives. As of September 30, 2025, BIO-key International, Inc. reported $2.04 million in cash and cash equivalents. This cash position was bolstered in October 2025 when the company raised $3.1 million in gross proceeds from a warrant exercise. Here's a quick look at the balance sheet snapshot around that time:

Global network of channel partners and reference accounts

The company views its partner network as a 'force multiplier' for expanding market reach, particularly in Europe, the Middle East, and Africa (EMEA). This network is essential for executing the sales strategy outside of direct sales efforts. BIO-key International, Inc. has actively expanded this network through specific agreements:

• Partnered with Cloud Distribution Co. of Saudi Arabia to expand solutions across the Middle East.
• Partnered with Arrow ECS Iberia to strengthen market access in Spain and Portugal.

The reference accounts, especially in sensitive sectors, serve as crucial validation points. The company notes a growing base of high-value customers in Banking and Defense that require the highest security levels. They have secured a major Middle East defense deployment and have over 40M+ global users authenticating with their technology.

Experienced sales and support team for complex enterprise deployments

Successfully deploying complex IAM solutions, especially within government and defense sectors, requires specialized personnel. BIO-key International, Inc. is actively assembling a team of seasoned professionals as part of its BIO-key CyberDefense Initiative, positioning the company to support classified access environments aligned with EU and NATO cyber frameworks. The focus on complex enterprise deployments is supported by efforts to manage personnel costs; for instance, Selling, General, and Administrative (SG&A) expenses were reduced by 13.5% in Q2 2025 compared to the prior year, though some R&D and sales personnel costs were maintained or increased to support new product introductions and global sales efforts. The team's experience is critical for delivering on large contracts, such as the follow-on orders exceeding $600K awarded by a Foreign Defense Ministry in Q2 2025.

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:

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:

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:

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:

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:

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:

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.