Slide 1: A leader in fingerprint biometric identification solutions
Aleader in fingerprint biometric a> identification solutions Imperial Capital Security Investor Conference Michael DePasquale OTCQB: BKY! Chairman & CEO wwnw.bio-key.com December 10, 2015
Slide 2: Safe Harbor
SAFE HARBOR Certain statements contained in this presentation are “forward-looking statements” as defined in the Private Securities itigation Reform Act of 1995 (the “Act”). The words “estimate,” “project,” “intends,” “expects,” “anticipates,” “believes” and similar expressions are intended to ident
Slide 3: Leader in fingerprint biometric solutions and strong authentication
Leader in fingerprint biometric solutions and strong authentication for identity and access management. Evolving from software technologies to hardware/software solutions for broader user base. aie key solutions are: Highly accurate : Local or cloud based % Cost effective - Scalable = Secure = Fast
Slide 4: History
HISTORY
Slide 5: Unauthorized persons gaining access to sensitive data
Unauthorized persons gaining access to sensitive data. 76% ofall data breaches enabled by weak credentialingluser authentication (Verizon Data Breach Investigation) Traditional security methods are faling, ilustrating need for cost effective solutions that can address broad base of devices and appli
Slide 6: Typical Mobile Reader Field vs BIO-key's Reader Field
Typical Mobile Reader Field (iPhone, Android etc) 25 Points of Data BlO-key's Reader Field 4,200 Points of Data Convert fingerprint image into digital template Mathematical representation of 2D fingerprint geography Compatible with virtually all readers, interoperably Encrypt Template and Move for C
Slide 7: Vector Sector Technology VST and WEB-key Technology
Vector Sector Technology™ VST Software algorithm extracts unique fingerprint data for matching/verification against other fingerprint records. -Interoperable with most fingerprint readers. -1-to-1 (mobile device) and 1-to-many matching (cloud) -Proven matching accuracy & speed against 1.3B fingerpri
Slide 8: BIO-key Data Transfer Patents
2 BlO-key Data Transfer Patents B1O-key patents cover the transfer of biometric data from a device to a network or Internet ecosystem
Slide 9: BIO-key's biometric software is embedded in specialty applications
BIO-key's biometric software is embedded in specialty applications. BlO-key earns royalties from hardware integrators as they expand their applications reach. Co-develop & market a fingerprint biometric solutions for mobile credentialing and payments market. Access to Asia and APAC market via Hong K
Slide 10: BIO-key has co-developed turnkey hardware/software solutions with partners
BlO-key has co-developed tumkey hardware/ software solutions with partners * Solutions are cost effective and easy to deploy BlO-key readers are streamlined and deliver top performance with lower cost * SideSwipe customized for Microsoft Surface Tablets China Goldjoy Licensed Technology: + IP relate
Slide 11: Applications and Markets
Applications: Criminal Investigations / background checks Electronic Health Records / E-Prescription Application and Network Access Control Employee and customer authentication Border control Mobile Communications User Identity Fraud prevention Social services fraud prevention ATM Transaction authen
Slide 12: Secure access to electronic health records and e-prescriptions
Lo ‘Secure access to electronic health records and e-prescriptions FBI Match fingerprints against 200M records in criminal investigations (ol LexisNexis: !Dvetification for all MCAT, CPA, FINRA & CAT examinees at 2,000 testing centers Enrolled and de-duped over 100M SIM card registrants, to deter NE
Slide 13: Cleveland Clinic Case Study
Cleveland Clinic Case Study: BlO-key conducted 251,447 authentications in a month with 99.3% first attempt success rate. BlO-key solution saved an estimated 14 calendar days of physician / clinician time across the entire staff base. Password/tokens: BlO-key:
Slide 14: Fingerprint sensor-enabled devices market expected to reach 1.4 billion units by 2020
Fingerprint sensor-enabled devices market expected to reach 1.4 billion units by 2020 up from 317 million today. Global biometric market revenues projected to grow to $8.3B in 2018 - Goode’s Mobile Biometric Security Forecast Growth Drivers: + Failure of existing user ID/password & other methods * M
Slide 15: Key Initiatives
Key Initiatives: Experian (© IDEX ‘Identity Proofing’ for user authentication in device-to-cloud identity management systems. Co-development of fingerprint sensors for mobile market. Biometric solutions for security of Electronic Health Records and EPCS. Hong Kong based partner for hardware & softwa
Slide 16: Business Partners
Business Partner ORACLE CA Technologies Integrated with CA Technologies CA Single Sign-On solution enabling secure user authentication from any location. 18M Provide secure access to IBM's Security Access Manager (ISAM) for Web. Oracle Device biometric security for Oracle Access Manager. Avnet Globa
Slide 17: Revenue Mix
Hardware Sales rd Party 15% Royalties 17% Software Licenses 50% Healthcare Civil 1D & 22% Government 43% Services 7
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Slide 19: Current Assets and Net Working Capital
Current Assets Net Working Capital Nov. 12, 2015 $12.8M $11.4M 2014 $1.8M $0.5M 19
Slide 20: Sales opportunity pipeline and revenue guidance
* Sales opportunity pipeline $30M over next 12 months * 85% from highly regulated industries * 75% from OEM / partner relationships Q4 ‘15 Revenue guidance: $1.4M - $2.2M * versus $0.4M in Q4 ‘14 2015 Revenue guidance: $5.0M - $6.0M * versus $4.0M in 2014 Benefits of China GoldJoy Group investment a
Slide 21: Management team
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
Slide 22: Growth Drivers and Competitive Position
Growth Drivers: Proliferation of devices, data & applications Growth in cloud computing Increase in breaches, fraud and loss Regulations mandating 2-factor authentication Cost & performance of existing technologies Expansion into Asia Competitive Position/Barriers to Entry: VST & WEB-Key technologie
Slide 23: Mike DePasquale, Chairman & CEO
Mike DePasquale Chairman & CEO mike.depasquale@bio-key.com 732.359.1113 Investor & Media Contacts: David Collins, Tanya Kamatu Catalyst Global bkyi@catalyst-ircom 212-924-9800 23