AWARE INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>AWARE INC. has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

AWARE INC /MA/ (AWRE) filed a Annual Report (10-K) with the SEC on March 15, 2024. AWARE INC. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. Key financial data and operational details for the year are presented. The company is incorporated in Massachusetts (MA). The SIC code for AWARE INC. is 7372 (Services-Prepackaged Software).

Why It Matters

For investors and stakeholders tracking AWARE INC /MA/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of AWARE INC.'s financial health, strategic initiatives, and risk factors for investors and stakeholders. Understanding the details within this report is crucial for assessing the company's performance, competitive positioning, and future outlook in the software services industry.

Risk Assessment

Risk Level: medium — AWARE INC /MA/ shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, specific financial performance details and forward-looking statements will determine the ultimate risk level.

Analyst Insight

Review the financial statements and management's discussion and analysis within the 10-K to understand AWARE INC.'s performance and strategic direction.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240315 — Filing Date (FILED AS OF DATE)
• 88 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 000-21129 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• AWARE INC (company) — FILER
• MA (company) — STATE OF INCORPORATION
• 7372 (regulator) — STANDARD INDUSTRIAL CLASSIFICATION
• 76 Blanchard Road (company) — BUSINESS ADDRESS
• Burlington (company) — BUSINESS ADDRESS CITY
• 01803 (company) — BUSINESS ADDRESS ZIP
• 781.382.5160 (company) — BUSINESS PHONE
• 20231231 (dollar_amount) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

AWARE INC. operates in the software services industry, specifically focusing on prepackaged software solutions.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and cash flow.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for insights into business performance.
3. Identify any significant risk factors disclosed in the filing that could impact future operations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing provided for analysis; no prior filing data is available for comparison.

Key Financial Figures

• $0.01 — nge on Which Registered Common Stock, $0.01 par value per share AWRE The Nasdaq

Filing Documents

• awre-20231231.htm (10-K) — 1914KB
• awre-ex21_1.htm (EX-21.1) — 4KB
• awre-ex23_1.htm (EX-23.1) — 3KB
• awre-ex31_1.htm (EX-31.1) — 15KB
• awre-ex31_2.htm (EX-31.2) — 15KB
• awre-ex32_1.htm (EX-32.1) — 10KB
• awre-ex97_1.htm (EX-97.1) — 67KB
• 0000950170-24-032239.txt (&nbsp;) — 10370KB
• awre-20231231.xsd (EX-101.SCH) — 1582KB
• awre-20231231_htm.xml (XML) — 2086KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 15 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 16 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17 Item 6. Reserved 17 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 27 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 53 Item 9A.

Controls and Procedures

Controls and Procedures 53 Item 9B. Other Information 53 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 53 PART III Item 10. Directors, Executive Officers and Corporate Governance 54 Item 11.

Executive Compensation

Executive Compensation 54 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 54 Item 13. Certain Relationships and Related Transactions, and Director Independence 54 Item 14. Principal Accountant Fees and Services 54 PART IV Item 15. Exhibits and Financial Statement Schedule 55

BUSINESS

ITEM 1. BUSINESS Company Overview Aware, Inc. ("Aware", "we", "us", "our", or the "Company") is a leading, biometric identity platform company that validates and secures identities using proven and trusted adaptive biometrics. Aware's software offerings address the growing challenges that government and commercial enterprises face in knowing, authenticating and securing individuals through frictionless and highly secure user experiences. Aware's algorithms are based on diverse data sets from around the world and can be tailored to the unique security and requirements of each customer. Our portfolio enables government agencies and commercial entities to enroll, identify, authenticate and enable using biometrics, which comprise physiological characteristics, such as fingerprints, faces, irises and voices. Enroll: Register biometric identities into an organization's secure database Identify: Utilize an organization's secure database to accurately identify individuals using biometric data Authenticate: Provide frictionless, multi-factor, passwordless access to secured accounts and databases with biometric verification Enable: Manage the lifecycle of secure identities through optimized biometric interchanges We have been engaged in this business since 1993. Our comprehensive portfolio of biometric solutions is based on innovative, robust products designed explicitly for ease of integration, including customer-managed and integration ready biometric frameworks, platforms, software development kits ("SDKs") and services. 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 mobile enrollment, user authentication, identity proofing, and secure transaction enablement. Our products span multiple biometric modalities, including fingerprint, face, iris and voice

Ri sk Factors

ITEM 1A. Ri sk Factors Our operating results may fluctuate significantly from period-to-period and are difficult to predict. Individual orders can represent a meaningful percentage of our revenues and operating results in any single period and the timing of the receipt of those orders is difficult to predict. The failure to close an order or the deferral or cancellation of an order can result in revenue and net income shortfalls for that quarter. We base our current and future expense levels on our internal operating plans and sales forecasts, and our operating costs are to a large extent fixed. As a result, we may not be able to sufficiently reduce our costs in any quarter to adequately compensate for an unexpected near-term shortfall in revenues, and even a small shortfall could disproportionately and adversely affect our financial results for that quarter. Our financial results may be negatively affected by a number of factors as well, including the following: write-offs of investments in private companies; any lack or reduction of government funding and the political, budgetary and purchasing constraints of government customers who purchase products and services directly or indirectly from us; the terms of customer contracts that affect the timing of revenue recognition; the size and timing of our receipt of customer orders; significant fluctuations in demand for our products and services; any loss of a key customer or one of its key customers; new competitors entering our markets, or the introduction of enhanced solutions from new or existing competitors; competitive pressures on selling prices; any cancellations, or delays of orders or contract amendments by government customers; higher than expected costs, asset write-offs, and other one-time financial charges; and general economic trends and other factors. As a result of these factors, we believe that period-to-period comparisons of our revenue levels and operating results are n

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View this 10-K filing on SEC EDGAR