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Aware Inc. (AWRE+2.35%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements showing a decrease in revenue to $17.4 million from $18.2 million in the previous year, primarily due to a decline in perpetual software license sales.
Operating loss for the year was $5.5 million, an improvement from $8.5 million in 2023. This was attributed to a decrease in research and development expenses and the absence of a significant write-off recorded in the previous year.
Software license revenue decreased by 18% to $7.8 million, driven by fluctuations in perpetual license sales. The company expects an increase in SaaS revenue moving forward.
Software maintenance revenue increased by 12% to $8.6 million, reflecting ongoing renewals of maintenance contracts by customers.
Services and other revenue remained stable at $1.0 million, with gross margins showing a slight improvement.
Research and development expenses decreased by 15% to $7.8 million, following a reduction in engineering headcount.
Selling and marketing expenses were $7.7 million, consistent with the previous year, while general and administrative expenses slightly decreased to $6.4 million.
Interest income was $1.2 million, slightly down from 2023 due to lower interest rates.
Cash used in operating activities was $3.2 million, with cash provided by investing activities at $6.3 million, primarily from marketable securities sales.
As of December 31, 2024, Aware had cash, cash equivalents, and marketable securities totaling $27.8 million, expected to fund operations for at least the next twelve months.
The filing also discusses the company's strategic focus on expanding its SaaS offerings and highlights the risks associated with competition, technological changes, and reliance on government contracts.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Aware Inc. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.