ImageWare Details Business Transformation in Q2 Update

ImageWare has issued its Q2 results, offering a snapshot of the business amid a broad corporate transformation and a global pandemic.

Revenues for the quarter ended June 30 came in at $733,000, compared with revenues of $812,000 in the same period last year. Its net result was a loss of just over $2.9 million, compared to a net loss of $2.548 million in Q2 of 2019.

The numbers may reflect the impact of COVID-19 and attendant business slowdowns, in consideration of results for the first six months of 2020. While revenues were down slightly, at $1,529,000 compared to revenues of $1,743,000 for the first half of 2019, the company’s net loss for the first half of 2020 improved slightly, at $6,027,000 compared to a net loss of $6,160,000 in the first half of 2019.

In a statement announcing the Q2 results, ImageWare CEO Kristin Taylor, who has led a corporate overhaul since her appointment in February, expressed pride in the company’s hard work amid the context of COVID-19, and said that ImageWare continues to spend “a significant amount of time and effort” on refining its biometric solutions and sales strategies to generate market interest. ImageWare added 67 “net-new opportunities” in sales over the second quarter, according to its statement, comprising “an estimated initial value of $5+ million.”

Taylor also asserted that strategic efforts on the financial capital side of the business are expected to deliver further progress going forward.

“Last month, we successfully restructured certain senior securities, paving the way for ImageWare to meaningfully finance our working capital requirements through the issuance of a senior security,” she explained. “We anticipate this proposed financing will take us through to cash flow positive. Overall, we’ve made important early progress on our path to build ImageWare 2.0 and I look forward to sharing more developments next quarter.”

ImageWare’s update also noted that the company is working on an IP monetization business line, expected to be completed in September, and that it has nearly completed development of an “enterprise-ready authentication product” designed to expand the utility of cloud-based multi-factor biometric authentication to existing organizational infrastructure.

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August 21, 2020 – by Alex Perala