Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 33

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 5
Chunk 33
---
ATIONS

The following table sets forth, for the years indicated, certain line items from our consolidated statements of operations stated as a percentage of total revenue:

    Year endedDecember 31,

    Revenue:
     
    2024

    2023

    Software licenses

    44
    %

    52
    %

    Software maintenance

    50

    42

    Services and other

    6

    6

    Total revenue

    100

    100

    Costs and expenses:

    Cost of services and other

    7

    7

    Research and development

    45

    50

    Selling and marketing

    44

    43

    General and administrative

    37

    36

    Loss on write-off of note receivable

    -

    15

    Fair value adjustment to contingent acquisition payment

    -

    (4
    )

    Total costs and expenses

    133

    147

    Operating loss

    (33
    )

    (47
    )

    Interest and other income

    7

    7

    Loss before provision for income taxes

    (26
    )

    (40
    )

    Provision for income taxes

    1

    -

    Net loss

    (25
    %)

    (40
    %)

Summary of Operations 

We are primarily engaged in the development and sale of biometrics products, solutions and services.  Our software products are used in government and commercial systems and applications and fulfill a broad range of functions critical to secure biometric enrollment, authentication, identification and transactions. Principal government applications of biometrics systems include border control, visa applicant screening, law enforcement, national defense, intelligence, secure credentialing, access control, and background checks. Principal commercial applications include: i) user enrollment and authentication used for login to mobile devices, computers, networks, and software programs; ii) user authentication for financial transactions and purchases (online and in-person); iii) physical access control to buildings; and iv) identity proofing of prospective employees and customers. We sell our biometrics software products and services globally through a multifaceted distribution strategy using systems integrators, OEMs, VARs, partners, and directly to end-user customers. We also derive a portion of our revenue from the sale of imaging software licenses to OEMs and systems integrators that incorporate our software into medical imaging products and medical systems.