BIO-key International Inc. OTCQB: BKYI Technology Leader in Fingerprint Biometric ID Solutions...
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BIO-key International Inc. OTCQB: BKYI Technology Leader in Fingerprint Biometric ID Solutions Investor Introduction Jay Meier, VP Corporate Development
BIO-key International Inc. OTCQB: BKYI Technology Leader in
Fingerprint Biometric ID Solutions Investor Introduction Jay Meier,
VP Corporate Development June 1, 2015
Slide 2
Safe Harbor Language: Certain statements contained in this
presentation are forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995 (the Act). The
words estimate, project, intends, expects, anticipates, believes
and similar expressions are intended to identify forward-looking
statements. Such forward-looking statements are made based on
management's beliefs, as well as assumptions made by, and
information currently available to, management pursuant to the
safe-harbor provisions of the Act. These statements are subject to
certain risks and uncertainties that may cause actual results to
differ materially from those projected on the basis of these
statements. These risks and uncertainties include, without
limitation, our history of losses and limited revenue, our ability
to develop new products and evolve existing ones, wider market
acceptance of biometric technologies, our ability to raise
additional financing, and our ability to attract and retain key
personnel. For a more complete description of these and other risk
factors that may affect the future performance of BIO-key
International, Inc., see Risk Factors in the Companys Annual Report
on Form 10-K and its other filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
presentation. BIO-key undertakes no obligation to update nor to
disclose any revision to these forward-looking statements whether
to reflect events or circumstances after the date hereof or
otherwise.
Slide 3
Technology leader in finger-based biometric identification
solutions Core Technology VST TM Algorithm- Reading/Matching
Fingerprint Data WEB-key Cloud- Transport Fingerprint Data
Customers FBI, LexisNexis, Cleveland Clinic Partners IBM, Oracle,
CA, Allscripts, Epic Strong I.P. Portfolio 10 Patents and Several
Pending
Slide 4
Market Need For Biometrics 4 76% of all data breaches were
enabled by weak credentialing and user authentication (Verizon
Report (2/2015) Electronic healthcare records fetch up to $60-$70
in the black market compared to $.50 - $1.00 for a Social Security
number. (Rick Kam cofounder of ID Experts) Cyber attack affected
personal records of 80 Million Anthem Blue CrossCyber attack
affected personal records of 80 Million Anthem Blue Cross
customerscustomers Major telecom company conducts 1.2 B customer
authentications per month and 370,000 employees from multiple
devices Numerous access points to sensitive data require secure
user authentication solutions.
Slide 5
Goodes new report, entitled Mobile Biometric Security Market
Forecast Report 2013 2018 posits that along with Touch ID, the
creation of a strong supporting ecosystem for biometrics on
consumer mobile devices will see an estimated 3.4 billion users
leveraging mobile biometrics by 2018. To accompany this increased
adoption, mobile implementations are expected to generate nearly
$8.3 billion worth of revenue for the biometrics industry. Goodes
report predicts that fingerprint sensors will become a standard
feature in most high-end smart phones and tablets by 2015, with the
technology expected to be commonplace in all mobile devices by
2018. Large and Growing Market Opportunity
Slide 6
Commercial Biometrics Is Gaining Traction Apple Is Considering
Storing Your Fingerprints In iCloud Business Insider-Jan 15, 2015
Simply put, this means Apple is considering using its cloud hosting
service iCloud... Touch ID is the name of Apple's biometric
verification tool. The fingerprint sensor on Samsung's new Galaxy
S6 is just as good... Business Insider-Apr 2, 2015 Until now, the
iPhone had a key hardware advantage over other smartphones: Its
fingerprint sensor called TouchID was better and more... NEC
combines biometrics with the Internet of Things Planet
Biometrics-April 8, 2015 Our exhibit at Hannover Messe demonstrates
the power of NEC's biometrics technologies combined with cloud-
based services that can be... Windows 10 puts biometric security
front and center InfoWorld-Mar 25, 2015 Windows 10 will provide a
leap in biometric capabilities for the PC, built... Windows Hello
will require specialized hardware, so you'll need new... Ping
Identity Scoops $35M To Authenticate Everywhere Forbes-Sep 18, 2014
Okta, OneLogin, JumpCloud and Ping Identity all play in the general
space of identity as applied to the cloudy world. And they really
are... 6
Slide 7
BIO-key offers Device and Cloud Fingerprint Authentication
Solutions On Device: 1-to-1 Matching capability Accurate, rapid
identification Low cost, user-friendly In the Cloud: 1-to-Many
Matching capability Solution integration for a seamless user
experience Speed: Faster and more convenient than passwords 7
7
Slide 8
Two Functions that enable Fingerprint Authentication on device
and/or The Cloud 8 8
Slide 9
Vector Segment Technology TM 9 VST Algorithm enables accurate
extraction and comparison of fingerprint data VST Powers BIO-keys
full suite of products Key Features: - 1-to-1 and 1-to-Many
Matching - Against 1.3B fingerprints accurately and quickly -
Interoperable with all major fingerprint readers, servers and
operating systems - Highly accurate & scalable
fingerprint-based biometric platform. (N.I.S.T Tested- National
Institute of Standards & Technology)
Slide 10
BIO-key Sensor Agnostic Interoperability BIO-key is a software
company Biometric fingerprint hardware readers are a commodity
BIO-key is unique in that we are hardware agnostic and can analyze
any fingerprint hardware readers image including: 10
Slide 11
Independent Performance Validation NIST's mission is to promote
U.S. innovation and industrial competitiveness by advancing
measurement science, standards, and technology in ways that enhance
economic security and improve our quality of life. www.nist.gov
Table 1: TAR at FAR of 0.0001 NameIDDHS2DOSPOE
BIO-key2C0.99090.99780.9990 Sagem1C 0.99080.99690.9988 L11Y
0.99070.99940.9996 Sagem1H 0.99050.99740.9989 ID SolutionsQ
0.98740.99600.9975 Neuro1T 0.98440.99510.9980 Thales1I
0.97820.99200.9962 BioLink1E 0.97480.97310.9880 Table 9: Equal
Error Rates NameIDDHS2DOSPOE BIO-key2C0.00470.00120.0005 L11Y
0.00510.0004 Sagem1C 0.00580.00170.0009 Sagem1H 0.00620.00130.0008
BioLink1E 0.00720.01130.0043 ID SolutionsQ 0.00800.00230.0013
Thales1I 0.00870.00360.0019 Neuro1T 0.00890.00230.0014 NIST PFT
High Rank Results
Slide 12
WEB-key-Cloud Authentication: 12 Key Features: -Securely
transports authentication data from device to cloud and back
-Strong Encryption: Triple encryption for security -Intuitive
graphical interface Quick enrollment & authentication -Multiple
operating systems supported -Core patents to protect WEB-key.
*Apple has applied for the same patent.
Slide 13
BIO-keys Opportunity BIO-key owns the patents associated with
using biometric authentication in the cloud BIO-key patents cover
the transfer of biometric data from a device to a network or
internet ecosystem Fingerprint template taken on phone BIO-key
Patent Coverage Illustration: Hypothetical Banking or Payments App
Encrypted fingerprint sent into the cloud User authentication
Patent: 8,055,027 Generation of Direction Information in Context of
Image Processing Patent: 7,117,356 Systems and Methods for Secure
Biometric Authentication Patent: 8,214,652 Biometric Identification
Network Security BIO-key Patents: Encrypted fingerprint matched
against secure database in the cloud Binary notification sent
13
Slide 14
BIO-key Patents Patent 7,117,356: Systems/Methods for Secure
Biometric Authentication Patent 7,502,938: Trusted Biometric Device
Patent 7,415,605: Biometric Identification Network Security Patent
7,454,624: Match Template Protection Biometric Security Patent
6,895,104: Image Identification System Patent 7,155,040: Generation
of Quality Field Info in Image Processing Patent 7,359,553: Image
Identification System Patent 7,539,331: Image Identification System
Patent 8,055,027: Generation of Direction Information in Context of
Image Processing Patent 8,214,652: Biometric Identification Network
Security Additional patents pending and in process 14
Slide 15
Broad Suite of Products Vector Segment Technology SDK (VST)
Biometric development kit that provides developers the ability to
take advantage of a highly accurate, device interoperable
algorithm. Available as a low level SDK for incorporation into any
application architecture to increase security while not sacrificing
convenience. Runs on Windows, Linux or Solaris systems. WEB-key
Biometric security platform for managing fingerprint authentication
across unprotected networks including the Internet. Extends all
features and functionalities of the VST algorithm to customers
looking to add an enhanced level of security to their thin client
and client/service applications. Currently supported by both
Windows, iOS, Droid and Linux operating systems. Biometric Service
Provider Support for the BioAPI (a standards-based worldwide
solution) for a compliant interface to applications using
biometrics for verification and identification. Enhances the
traditional use of the BioAPI by adding support for CE devices,
supporting identification calls and also providing a single user
interface for multiple fingerprint readers. ID Director Integration
with CAs SiteMinder, IBMs ISAM for Web, Oracles Access Manager, and
other solutions, utilizing the power and security of WEB-key.
Provides a simple, custom authentication scheme for companies
looking to enhance authentication. 15
Slide 16
Integrated Hardware Solutions DASHSideSwipe EcoID To expand
reach, BIO-key licensed disruptively low cost fingerprint readers
The readers are Plug & Play with WEB-key client embedded
Slide 17
Target Markets
Slide 18
Go to Market Channels: BIO-key and IDEX partnered to co-
develop processors and fingerprint devices as an OEM that utilize
BIO-keys algorithms and WEB-key Channels 18 Direct Software OEMS
Hardware OEMS Verticals BIO-key biometric technology is integrated
with or embedded in several third party Identity Access &
Management (IAM) platforms BIO-keys biometric software is marketed
directly along side application specific partners
Slide 19
Major Clients: Utilize BIO-key VST algorithm to accurately
match fingerprints against 200M records. Enrolled and de-duped over
100M SIM card registrants, to deter mobile phone fraud. ID
verification and fraud prevention for all MCAT, CPA, FINRA and CAT
examinees at 2000 Prometric testing centers. FBI 1-to-Many
Matching
Slide 20
Major Healthcare Partners: Partner: Integrated BIO-keys
biometrics for users to manage access to sensitive Electronic
Health Records (E.H.R) Partner: Use BIO-keys advanced biometrics to
authenticate clinicians, enter orders, prescribe medication and
approve clinical notes. Top Healthcare Electronic Medical Record
Platform Vendors
Slide 21
Marquee Healthcare Customers
Slide 22
Real World Performance Results #4 Ranked Hospital
251,447authentications with a 99.34% first attempt success rate The
average password or token entry takes 6-10 seconds BIO-key takes a
second or less. Month Average ID ScoreSuccessesFailuresSuccess Rate
% November89.56251,447166199.34% Staff ID#FunctionQuantity Average
ID ScoreLow ScoreHigh ScoreFailuresSuccess Rate % xxxxxxxxxID
Submit5,9999252990100%
Slide 23
14 Identity Access Management Partners: CA Technologies
BIO-keys fingerprint authentication is pre- integrated with CA
Technologies CA SiteMinder enabling secure user access from any
location. Avnet Global Licensing Agreement BIO-key and Avnet
entered into an Application Specific Licensing agreement to
integrate IBM middleware into BKYI software. IBM BIO-keys biometric
software provides secure access to IBMs Security Access Manager
(ISAM) for Web. Oracle BIO-key enhances Oracle Access Manager
security with Biometrics software.
Slide 24
24 Key Strategic Partnership with the largest credit reporting
vendor to provide Identity Proofing for user enrollment in Device
to Cloud Identity Management System
Slide 25
BIO-keys Opportunity BIO-key owns the patents associated with
using biometric authentication in the cloud BIO-key patents cover
the transfer of biometric data from a device to a network or
internet ecosystem Fingerprint template taken on phone BIO-key
Patent Coverage Illustration: Hypothetical Banking or Payments App
Encrypted fingerprint sent into the cloud User authentication
Patent: 8,055,027 Generation of Direction Information in Context of
Image Processing Patent: 7,117,356 Systems and Methods for Secure
Biometric Authentication Patent: 8,214,652 Biometric Identification
Network Security BIO-key Patents: Encrypted fingerprint matched
against secure database in the cloud Binary notification sent
25
Slide 26
26 Key Strategic Partnership with InterDigital BIO-key
partnered with InterDigital to co-develop/market a mobile
authentication platform based on BIO-key patents UE
Slide 27
Mobile Ecosystem. Sensor Mfgs. Hardware Device Mfgs. Top
performing algorithm Fully interoperable
Slide 28
Management: Michael W. DePasquale CEO 25+ years experience in
executive management, sales and marketing. Previously CEO of Prism
eSolutions, Inc. Cecilia Welch CFO 20+ years of operational and
financial management experience in tech companies. Former
controller at Savaje Technologies, Crystal Systems and ATN
Microwave. Jim Skidmore SVP Global Sales 20+ years sales experience
in Identity and access management channels. IT awards from IBM,
Oracle/BEA, Microsoft. Mira K. LaCous CTO 30+ years solution
development, project/product management and company leadership
experience. Jay Meier VP Corp. Development Former founder of Sage
Capital Advisors, consultants in Security, Credentialing &
Identity Management. Previously sell- side research analyst on
security technology. 28
Slide 29
Summary Income Statement: 29 Q1 15Q1 142014 A2013 A Services
Revenue $0.2M$0.3M$1.5M$1.0M License Revenue $0.4M$1.1M$2.5M$1.0M
TOTAL REVENUE $0.6M$1.4M$4.0M$2.0M Gross Profit
$0.5M$1.2M$3.3M$1.6M Net Loss ($0.9M)($0.3M)($1.9M)($2.6M) Per
Share ($0.01)($0.00)($0.03)($0.06) Shares Out* 66.0M57.9M59.0M45.9M
* Reflects 1 for 2 reverse split February 2015
Slide 30
Summary Balance Sheet: 30 Q1 152014 Current Assets $1.2M$1.8M
Current Liabilities $1.5M$1.3M Net Working Capital ($0.3M)$0.5M
Stockholders Equity ($0.02M)$0.8M
Slide 31
BIO-key Growth Outlook: 12 month Pipeline of Sales
Opportunities: $30M Up from $12.7M a/o December 2013 2015 Revenue
Guidance: $5M - $7M vs. $4M in 2014 Q2 Revenue Guidance: $1.5M -
$3M 2015 Gross Margin Guidance: 75% - 80% Breakeven Revenue Range:
$6.5M - $7.0M Strategic focus on large enterprise opportunities
that range in size ($0.1M $3.2M). 31
Slide 32
Jay M. Meier Vice President of Corporate Development BIO-Key
International, Inc. [email protected] 651-789-6116 (o)
612-978-3687 (c) Thank you!!!!