Aware, Inc.

Company overview

• Aware, Inc. is a biometric identity platform company that validates and secures identities using biometrics. Its portfolio supports enrollment, identification, authentication, and lifecycle management of secure identities across government and commercial applications.
• Core capabilities cover multiple biometric modalities (fingerprint, face, iris, voice) and include biometrics software, SDKs, integration frameworks, platforms, and orchestration services designed for easy integration and interoperability.

What the company does

• Enroll: Registers biometric identities into an organization’s secure database.
• Identify: Uses biometric data to identify individuals within a secure database.
• Authenticate: Enables frictionless, multi-factor, passwordless access using biometrics.
• Enable: Manages lifecycle of secure identities through biometric interchanges.
• Products and services are sold globally through systems integrators, OEMs, VARs, partners, and direct to end users.
• Modality coverage includes fingerprint, face, iris, and voice with capabilities to capture, format, compress, match, transport, and analyze biometric data.
• Offers a hosted SaaS option (AwareID) in addition to on-premises and other software and services offerings.

Revenue model and major product groups

• Revenue streams (2025 vs 2024):
  • Software licenses: $7.314 million (2025) vs $7.650 million (2024)
  • Software maintenance: $8.712 million (2025) vs $8.577 million (2024)
  • Services and other (includes SaaS): $1.267 million (2025) vs $1.162 million (2024)
  • Total revenue: $17.293 million (2025) vs $17.389 million (2024)
• SaaS hosted revenue (AwareID): $0.4 million in 2025 vs $0.1 million in 2024
• Revenue recognition approach:
  • Software licenses: recognized at a point in time upon delivery for perpetual licenses; similarly upon delivery for fixed-term subscription licenses.
  • Maintenance and SaaS: recognized over time (straight-line over the contract term or ratably for hosted SaaS).
  • Services: recognized over time using an input method based on labor hours versus total budgeted hours.
  • Many contracts contain multiple performance obligations; transaction price allocation to obligations is often based on relative standalone selling prices (SSP).
• Remaining performance obligations: The company expects to recognize about 97% of remaining performance obligations in the next 12 months; remaining obligations greater than one year related to software maintenance amount to about $0.3 million as of 12/31/2025.

Geographic and customer concentration

• Revenues by region (2025 vs 2024):
  • United States: $8.556 million (2025) vs $7.597 million (2024)
  • United Kingdom: $2.216 million (2025) vs $4.720 million (2024)
  • Rest of world: $6.521 million (2025) vs $5.072 million (2024)
  • Total: $17.293 million (2025) vs $17.389 million (2024)
• Accounts receivable / unbilled receivables concentration (as of 12/31/2025 and 12/31/2024):
  • 2025: Customer A 26%, Customer B 15%, Customer C 14%, Customer D 9%
  • 2024: Customer A 4%, Customer B 16%, Customer C 0%, Customer D 18%
• Customers include government and commercial entities worldwide.

Financial highlights (selected items)

• Income statement highlights (in thousands):
  • Total revenue: 17,293 (2025) vs 17,389 (2024)
  • Cost of revenue: 1,323 (2025) vs 835 (2024)
  • Gross profit: 15,970 (implied; margin ~92%)
  • Operating expenses: Research and development 8,300; Selling and marketing 7,332; General and administrative 6,895
  • Operating loss: (6,557) (2025) vs (5,545) (2024)
  • Interest and other income: 941 (2025) vs 1,167 (2024)
  • Net loss before taxes: (5,616) (2025) vs (4,378) (2024)
  • Provision for income taxes: 257 (2025) vs 53 (2024)
  • Net loss: (5,873) (2025) vs (4,431) (2024)
  • Net loss per share – basic and diluted: $(0.28) for both years
  • Weighted-average shares outstanding: 21,183 thousand (both years)
• Balance sheet highlights (in thousands):
  • Cash and cash equivalents: $7,269
  • Marketable securities: $15,026
  • Total cash, cash equivalents, and marketable securities: $22,295
  • Accounts receivable, net: $3,010
  • Unbilled receivables, net: $1,348
  • Total current assets: $28,265
  • Intangible assets, net: $1,569
  • Goodwill: $3,120
  • Right-of-use asset, net: $3,642
  • Total assets: $37,195
  • Current liabilities: $7,505
  • Long-term liabilities: $3,553
  • Stockholders’ equity: $26,137
• Cash flow summary (in thousands):
  • Net cash used in operating activities: $(5,398) (2025) vs $(3,161) (2024)
  • Net cash used in investing activities: $(274) (2025) vs $6,290 (2024)
  • Net cash used in financing activities: $(31) (2025) vs $(159) (2024)
  • Ending cash and equivalents: $7,269 (12/31/2025)
• Liquidity: The company reports it had sufficient cash, cash equivalents, and marketable securities to fund operations for at least the next 12 months from filing and to meet known long-term cash requirements, including operating expenses, contractual obligations, and planned strategic investments.

Operating and financial structure

• Single operating segment: one reportable segment and one operating unit; management assesses performance on a consolidated basis.
• Intangible assets and goodwill: goodwill of $3.1 million; intangible assets net of amortization $1.569 million.
• Leases: Corporate headquarters lease in Burlington, MA with a right-of-use asset of $3.642 million and lease liabilities totaling $3.968 million; weighted-average remaining lease term about 7.3 years; fixed annual lease payments and renewal options.
• Debt and off-balance sheet items: no debt appears on the balance sheet.
• Tax status and valuation allowances: deferred tax assets of $15.7 million and a full valuation allowance of $14.3 million (as of 12/31/2025). Net operating losses and R&D credits exist with expiration dates in various years; U.S. federal and state taxes contributed to a net tax expense of $0.257 million in 2025.

Equity and compensation

• Common stock outstanding: 21,444,665 shares issued and outstanding as of 12/31/2025.
• Shareholders’ equity: $26.137 million.
• Equity plans and programs:
  • 2023 Equity and Incentive Plan with 1,277,130 shares authorized for grants; 601,048 shares available for grant as of 12/31/2025.
  • Stock options outstanding: ~2.39 million options as of 12/31/2025 with weighted-average exercise price around $1.96.
  • Restricted stock units outstanding: 494,137 unvested as of 12/31/2025; 2025 RSU grants had total grant-date fair value around $1.3 million.
  • Employee stock purchase plan (ESPP): 2021 ESPP with 1,000,000 shares reserved; 691,238 shares available as of 12/31/2025; 56,166 shares issued in 2025 under the plan.
  • Stock repurchase program: Board-authorized program (up to $10 million) expired 12/31/2025; $2.1 million repurchased to date; $0.115 million repurchased in 2025 (vs $0.207 million in 2024).

Notable events and considerations

• Anonybit arrangement (November 2025): entered a short-term bridge note of $0.2 million and a software license; the contemplated strategic transaction did not proceed and Anonybit later became insolvent. The company recorded a full write-off of the $0.2 million note in 2025 under general and administrative expense.
• Critical accounting policies: revenue recognition under ASC 606 with multiple performance obligations and SSP-based allocations; impairment testing for goodwill and long-lived assets; fair value measurements for marketable securities (available-for-sale); deferred tax assets and valuation allowances with consideration of NOLs and credits.

Outlook and management commentary

• Research and development: R&D expenses are expected to increase in absolute dollars and as a percentage of revenue in the next year to support new biometrics products and enhancements.
• Sales and marketing: Selling and marketing expenses are expected to rise to reflect the full-year impact of 2025 hires as the company expands its sales and marketing organization.
• General and administrative: G&A is expected to increase in absolute dollars as the company invests in the business; the trajectory as a percentage of revenue will depend on revenue growth and scale.