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BIO-key faces Nasdaq non-compliance notice

EditorNatashya Angelica
Published 04/22/2024, 04:55 PM

HOLMDEL, N.J. - BIO-key International, Inc. (NASDAQ:BKYI), a company specializing in identity and access management solutions, has been notified by The Nasdaq Stock Market of non-compliance with its listing rules due to a delay in filing its annual financial report.

The company, known for its Identity-Bound Biometrics (IBB) technology, received the notification on Monday, April 17, 2024, after failing to file its Annual Report on Form 10-K for the year ended December 31, 2023, on time.

The Nasdaq Listing Rule 5250(c)(1) requires all listed entities to file periodic financial reports promptly. Although the non-compliance notice does not immediately affect BIO-key's stock trading on the Nasdaq Capital Market, it mandates that the company submit a compliance plan within 60 days. If Nasdaq accepts the company's plan, it may grant an extension of up to 180 days, or until October 14, 2024, for BIO-key to file its overdue report and regain compliance.

BIO-key had previously filed a Notification of Late Filing on Form 12b-25 on April 2, 2024, citing that the necessary financial and other disclosures could not be completed within the prescribed period without undue effort and expense.

In the press release, BIO-key expressed its intention to file the Form 10-K with the SEC as soon as possible and to work towards regaining compliance with Nasdaq's listing requirements.

BIO-key's portfolio includes the PortalGuard IAM solution, which offers a variety of authentication factors tailored to different use cases. This includes phoneless, tokenless, and passwordless biometric options, aiming to provide secure and convenient access to a range of applications and transactions.

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The information in this article is based on a press release statement from BIO-key International, Inc.

InvestingPro Insights

BIO-key International, Inc. (NASDAQ:BKYI) faces challenges beyond the delay in filing its annual financial report. According to InvestingPro data, the company has a market capitalization of just 3.02 million USD, reflecting the small size of this biometric identity management provider.

The company's Price to Earnings (P/E) ratio stands at -0.4 for the last twelve months as of Q3 2023, indicating that investors are dealing with a company that is not currently profitable.

Despite strong revenue growth of 38.59% in the last twelve months as of Q3 2023, the company's financial health is a concern. InvestingPro Tips suggest that BIO-key operates with a significant debt burden and may have trouble making interest payments on its debt. Furthermore, the company is quickly burning through cash and analysts do not anticipate BIO-key will be profitable this year.

Investors considering BIO-key's stock should note that its valuation implies a poor free cash flow yield, according to InvestingPro Tips. Additionally, the stock has fared poorly over the last month, with a one-month price total return of -16.01%. Over the last six months, the stock has taken a big hit, with a total return of -56.92%.

For those looking for a deeper dive into BIO-key's financials and future prospects, InvestingPro offers a comprehensive set of additional tips, with a total of 12 InvestingPro Tips available for BKYI at https://www.investing.com/pro/BKYI. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing valuable insights for informed investment decisions.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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