Attached files
| file | filename |
|---|---|
| EX-99 - EXHIBIT 99.5 - IMAGEWARE SYSTEMS INC | ex99-5.htm |
| EX-99 - EXHIBIT 99.4 - IMAGEWARE SYSTEMS INC | ex99-4.htm |
| EX-99 - EXHIBIT 99.3 - IMAGEWARE SYSTEMS INC | ex99-3.htm |
| EX-99 - EXHIBIT 99.1 - IMAGEWARE SYSTEMS INC | ex99-1.htm |
| 8-K - CURRENT REPORT - IMAGEWARE SYSTEMS INC | iwsy8k_june252020.htm |
Exhibit
99.2
ImageWare® Reports
Q1 Results and Updates Progress to Build ImageWare
2.0
San
Diego (June 25, 2020) – ImageWare® Systems, Inc.
(OTCQB: IWSY), a leader in biometric identification and
authentication, today reported financial results for the first
quarter ended March 31, 2020.
Q1 Highlights:
●
Signed +$1 million
in multiple agreements – expanding ImageWare’s
presence in financial services and government sectors
●
Kristin Taylor
named President and CEO to realize profitability, drive
performance and begin the monetization of the Company’s
important IP portfolio
●
Company granted its
23rd
patent – extending its portfolio of foundational biometric
patents and granting exclusive rights for key
capabilities
●
Launched essential
reviews of all products, services, divisions and
departments
●
Started crucial
cost cutting measures to bring burn rate into alignment with
revenues
Kristin
A. Taylor, President and CEO, said, “We are continuing to
deftly navigate in the environment of the COVID-19 pandemic. The
policies and programs are in place to help keep our teams safe and
healthy, while they continue to productively work
remotely.
Transformation
“Late
in the first quarter we immediately began to lay a new foundation,
and in the second quarter we started adding layers on what we
foresee as a planned and thoughtful path to successfully build
ImageWare 2.0. My goal is not to simply do things differently; but
do them with a laser focus that allows us to stake leadership
claims in the multi-modal biometric authentication markets. In Q2,
we’ve already taken a number of meaningful steps in that
direction, including:
●
Updating the
components of the Identity Platform (Cloud and
mobile-capable)
●
Transforming
GoVerifyID into a BaaS (Biometrics-as-a-Service)
product
●
Refreshing the
corporate website and creating a new self-service
portal
●
Building revenue
producing Go-to-Market strategies in key verticals
“I
look forward to reviewing progress on these actions in our Q2
report,” Taylor continued.
Broadening Initiative
ImageWare
established and continues to set organizational, technology and
product milestones. We are renewing our sales strategy, market
positioning and product messaging, to better engage and shorten the
sales cycle. Our focus continues to span government, state, local
and federal, as well as serve the enterprise market, specifically
in the areas of financial services, retail, manufacturing and
healthcare.
The
Company is developing a higher level of integration in the Identity
Platform in order to capture, proof, credential and authenticate
biometrics in a manner that is easy to administer and scale.
In July the Company will relaunch GoVerifyID® - our
enterprise-ready application enabling users to add Cloud-based
biometrics MFA (multifactor authentication) to existing
infrastructure.
Q1 Results
Revenue
for the first quarter ended March 31, 2020 was $796,000 compared
with $931,000 for the first quarter of 2019.
●
Gross profit for
the first quarter 2020 was $677,000 (or 85%) versus $727,000 (78%)
first quarter of 2019. The higher margin in Q1 2020 is attributable
to higher 2020 sales of software as opposed to sales of
professional services in the comparable 2019 period as well as
ongoing cost reduction efforts.
●
Net loss narrowed
to ($3,124,000) for the first quarter 2020 compared with a loss of
($3,612,000) in the same period last year.
●
Net loss per share
was ($0.04) for the first quarter ended 2020 versus ($0.05) in the
same period in 2019.
Conference Call Details
|
Date / Time:
|
|
Thursday, June 25th
at 1:30 pm PT
|
|
Call Dial In #:
|
|
1-631-891-4304
Domestic/International (at least five
minutes before start time)
|
|
Live Webcast:
|
|
http://public.viavid.com/index.php?id=140240
|
|
Audio
Replay:
|
|
https://www.iwsinc.com/company/investor-relations/
|
|
|
|
(available
for 90 days) or dial 1-844-512-2921 Domestic (1-412-317-6671
International); use PIN Number 10009888 from June 25, 2020, at 7:30pm ET
through July 2, 2020 at 11:59 pm ET.
|
About ImageWare® Systems, Inc.
In
1987, ImageWare was founded to innovate imaging. After a bold start
evolving silver halide photography into digital images, ImageWare
built the first statewide digital booking platform for the United
States law enforcement in 1998. Since then, ImageWare has evolved
into the largest holder of multimodal biometrics, managing millions
of identities daily. With vast experience in the government sector,
ImageWare is democratizing biometrics by offering defense-grade
identity and authentication solutions to the masses. By identifying
the person, not a device, ImageWare is giving populations around
the globe access to their important data. www.iwsinc.com
Forward-Looking Statements
Any
statements contained in this document that are not historical facts
are forward-looking statements as defined in the U.S. Private
Securities Litigation Reform Act of 1995. Words such as
“anticipate,” “believe,”
“estimate,” “expect,”
“forecast,” “intend,” “may,”
“plan,” “project,” “predict,”
“if,” “should” and “will” and
similar expressions as they relate to ImageWare Systems, Inc. are
intended to identify such forward-looking statements. ImageWare may
from time to time update publicly announced projections, but it is
not obligated to do so. Any projections of future results of
operations should not be construed in any manner as a guarantee
that such results will in fact occur. These projections are subject
to change and could differ materially from final reported results.
For a discussion of such risks and uncertainties, see “Risk
Factors” in ImageWare’s Annual Report on Form 10-K for
the fiscal year ended December 31, 2019 and its other reports filed
with the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the dates on which they are made.
Media Contact:
Jessica
Belair
Veritas
Lux
(310)
717-0877
jessica@veritaslux.com
Investor Relations:
Harvey
Bibicoff, CEO,
Bibicoff
+ MacInnis, Inc.
(818)
379-8500
harvey@bibimac.com
-Continued-
ImageWare® Systems, Inc.
SELECTED COMPARITIVE FINANCIAL HIGHLIGHTS
In thousands,
except share and per share amounts
|
|
Three
Months Ended
March
31,
|
|
|
|
2020
|
2019
|
|
Revenue:
|
|
|
|
Product
|
$150
|
$278
|
|
Maintenance
|
646
|
653
|
|
|
796
|
931
|
|
Cost
of revenue:
|
|
|
|
Product
|
21
|
84
|
|
Maintenance
|
98
|
120
|
|
Gross
profit
|
677
|
727
|
|
|
|
|
|
Operating
expense:
|
|
|
|
General and
administrative
|
983
|
1,107
|
|
Sales and
marketing
|
1,058
|
1,005
|
|
Research and
development
|
1,868
|
1,774
|
|
Depreciation and
amortization
|
18
|
19
|
|
Total Operating Expenses
|
3,927
|
3,905
|
|
|
|
|
|
Loss from
operations
|
(3,250)
|
(3,178)
|
|
|
|
|
|
Interest (income)
expense, net
|
24
|
(22)
|
|
Change in fair
value of derivative liabilities
|
(197)
|
424
|
|
Other components of
net periodic pension expense
|
47
|
32
|
|
Loss before
continuing operations before income taxes
|
(3,124)
|
(3,612)
|
|
Income
taxes
|
—
|
—
|
|
Loss from continuing operations
|
(3,124)
|
(3,612)
|
|
|
|
|
|
Net
loss
|
$(3,124)
|
$(3,612)
|
|
|
|
|
|
Preferred
dividends
|
(1,374)
|
(1,294)
|
|
Net loss available
to common shareholders
|
$(4,498)
|
$(4,906)
|
|
|
|
|
|
Per share data - basic
|
|
|
|
Basic income (loss)
per share available to common shareholders
|
$(0.04)
|
$(0.05)
|
|
Basic
weighted-average shares outstanding
|
116,196,197
|
98,398,239
|
-Continued-
ImageWare® Systems, Inc.
CONSOLIDATED BALANCE SHEETS
|
|
March
31, 2020
|
December 31,
2019
|
|
|
(Unaudited)
|
|
|
Assets:
|
|
|
|
Cash
|
$53
|
$1,030
|
|
Accounts
receivable, net
|
489
|
657
|
|
Inventories
|
679
|
615
|
|
Stock
subscription receivable
|
765
|
—
|
|
Other
current assets
|
214
|
243
|
|
Property
and equipment, net
|
198
|
216
|
|
Other
assets
|
256
|
257
|
|
Operating
lease right-of-use assets
|
1,822
|
1,906
|
|
Intangible
assets, net of accumulated amortization
|
67
|
70
|
|
Goodwill
|
3,416
|
3,416
|
|
Total Assets
|
$7,959
|
$8,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Deficit:
|
|
|
|
Current
Liabilities
|
6,550
|
4,198
|
|
Pension
obligation
|
2,265
|
2,256
|
|
Lease
liabilities - long term
|
1,611
|
1,716
|
|
Other
long-term liabilities
|
118
|
118
|
|
Mezzanine
Equity
|
9,059
|
8,884
|
|
Shareholders’
Deficit
|
(11,644)
|
(8,762)
|
|
Total Liabilities and Shareholders’ Deficit
|
$7,959
|
$8,410
|