Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 14

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1
Chunk 14
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 products that are integrated within a larger system; iii) custom-configured versions of existing software products; or iv) custom-designed software products.  In some cases, the software resulting from service engagements may form the basis for new or improved Aware software solutions and/or products. 

Our customers for services include: i) government agencies; ii) large multinational systems integrators; iii) smaller systems integrators with a particular market, technology or geographic focus; and iv) commercial partners or providers of products, solutions, and services for themselves or to their end customers.  We provide services directly to end-users or indirectly to end-users through systems integrators or commercial entities or partners.  When we provide services to systems integrators, they are often engaged with the end-user as a prime contractor and are responsible for delivery of a complete solution, in which case we typically serve as a subcontractor assigned a subset of the total scope of work.

The scope of our services projects varies.  A small project might involve configuration and testing of a single software product, taking a small team one month or less.  A large project might involve delivery of a more complex solution comprised of multiple products and subsystems, requiring a larger team to conduct program and project management, system design, software customization and integration, and taking up to one year or more.  Some projects are followed by subsequent follow-on projects that serve to change or extend the features and functionality of the initial system.   

Distribution Methods

We sell our solutions and services predominantly through three principal channels of distribution:

i)Partner sales –  This category includes resellers that market and sell Aware-branded solutions to end users.  Additionally, this category includes system integrators, consulting partners, independent software vendors (ISVs), distributors, and managed service providers (MSPs) that market, sell, deploy, and support our solutions. It also includes referral partners who identify opportunities but do not resell or directly deliver solutions.

ii)Direct channel – We sell directly to federal, state, and local government agencies, as well as large enterprise customers in both the public and commercial sectors.

iii)OEM partnerships  – System integrators, ISVs, MSPs, and hardware vendors that integrate our biometric components and SDKs into their platforms or applications, which are then sold independently. 

Major Customers

All of our revenue in 2024 and 2023 was derived from unaffiliated customers.  No customer represented 10% or more of total revenue in 2024, and one customer represented