Company: AWRE
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000950170-25-101395
Chunk: 24

Company: AWARE INC /MA/
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 24
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 to decreased headcount that was only partially offset by new hires in the first half of 2025.  We anticipate engineering expenses to increase during the remainder of 2025 as we ramp up investment to support strategic product development initiatives.Selling and marketing expense.  Selling and marketing expense primarily consists of costs for: i) sales and marketing personnel, including salaries, sales commissions, stock-based compensation, fringe benefits, travel, and facilities; and ii) advertising and promotion expenses.

18

Selling and marketing expense decreased 6% from $2.1 million in the three months ended June 30, 2024 to $2.0 million in the same three month period of 2025.  As a percentage of total revenue, selling and marketing expense increased from 33% in the second quarter of 2024 to 41% in the corresponding period in 2025. Selling and marketing expense decreased 9% from $4.0 million in the six months ended June 30, 2024 to $3.6 million in the same six month period of 2025.  As a percentage of total revenue, selling and marketing expense increased from 46% in the six months ended June 30, 2024 to 48% in the corresponding period in 2025. The spending decreases for the three months ended June 30, 2025, compared to the same prior year  was primarily due to lower headcount.  The spending decreases for the six months ended June 30, 2025, compared to the same prior year periods was primarily due to lower headcount including the departure of our chief revenue officer in 2024 who was not replaced until March 2025 and the departure of our chief product officer in 2024.We expect selling and marketing expense to increase in future periods as we continue to invest in revenue-generating activities. This includes plans to backfill the chief product officer position and additional hires across our sales organization to support pipeline growth and capitalize on market opportunities.General and administrative expense.  General and administrative expense consists primarily of costs for: i) officers, directors and administrative personnel, including salaries, bonuses, director compensation, stock-based compensation, fringe benefits, and facilities; ii) professional fees, including legal and audit fees; iii) public company expenses; and iv) other administrative expenses, such as insurance costs and bad debt provisions.General and administrative expense increased 11% from $1.4 million for the three months ended June 30, 2024 to $