Aware, Inc.

With a growing pipeline and stronger market in place, I'll turn it over to David for a closer look at our Q1 financials. Over to you, David.

Thank you, AJ. Let's take a look at our financial results for the first quarter, which ended on March 31st, 2025. Total revenue was $3.6 million compared to $4.4 million in Q1 of last year. The year-over-year decrease was primarily driven by lower software license sales and a project-driven influx rate from period to period. Recurring revenue was 2.7 million compared to 3.1 million in the prior year period. This year over year difference was due to the timing of subscription term license renewals. Moving down the income statement, operating expenses were reduced to 5.5 million, down 5% for 5.7 million in Q1 of 2025. Operating loss was 1.8 million compared to an operating loss of 1.3 million in the same prior year period. Gap net loss was $1.6 million, or $0.08 per diluted share, compared to gap net loss of $1 million, or $0.05 per diluted share in Q1 of 2024. Our adjusted EBITDA loss for the quarter, which we reconciled gap in our earnings release, was $1.5 million, compared to adjusted EBITDA loss of $1 million in the prior year period. The decline was primarily due to the lower total revenue, slightly offset by reduced lower operating expenses. We continue to operate with discipline. Over the past few quarters, we streamlined operations to set up our new leadership to invest in the right areas for future growth. That work has made us more efficient and put us in a stronger position to scale around our strategic priorities. As we move through Q2 and into the second half of 2025, we do expect expenses to rise, but really just returning to levels more in line with where they were a few quarters ago. These investments are deliberate and focused. and we believe they're critical to driving long-term sustainable growth. Now, finally turning to the balance sheet, as of March 31st, 2025, we had cash, cash equivalents, and marketable securities tolling $24.8 million compared to $27.8 million on December 31st, 2024. Now, I'll hand the call over to our new CRO, Brian Krause. Welcome, Brian.

Thank you, David. It's a privilege to join AWARE at such a pivotal time in its transformation. I joined AWARE because of its unmatched pedigree in biometrics, a 30-year history of pioneering research environments, particularly across US federal agencies. Our solutions are relied upon by organizations such as Department of Defense, Department of Homeland Security, and many others. Very few companies can say this, and it provides a strong foundation for durable, sustainable growth as we expand into new commercial and international markets. Today, we're seeing unprecedented interest from Fortune 500 companies actively exploring and testing biometric solutions. This shift plays to aware strength. Large enterprises increasingly recognize the urgency of securing digital interactions with fast, accurate, scalable, and science-driven technologies. As fraud continues to rise across various sectors, biometrics is becoming a critical layer of defense. Importantly, our conversations now extend beyond security teams. We're speaking directly with CEOs and boards focused on enterprise risk. At the same time, the U.S. federal government's commitment to biometric modernization remains strong, further enforcing our market opportunity. To capture this momentum, we're evolving and expanding AWARE's go-to-market strategy. A key priority is replicating our success in the U.S. federal sector across high-growth commercial industries and international geographies. We're transforming our demand gen model by embedding domain experts to lead each market vertical, ensuring deeper engagement and relevance. We are building a focused, measurable, and scalable commercial engine that aligns with our strategic priorities. At the core of this is a science-forward approach to selling, one that emphasizes AWARE's technical leadership, solution orientation, and problem-solving capabilities rather than pushing product. In parallel, we've reoriented our customer success organization to align with this expansion. Our team is now delivering specialized journeys tailored to each customer's specific use case and deployment needs. We're also prioritizing strategic accounts with high potential for long-term growth, reinforcing our land and expand strategy and building durable customer relationships. We're also laying the foundation for a platform-based future. The awareness platform will enable customers to orchestrate solutions across various partners and providers, giving them access to the best algorithms and capabilities for their needs. Rather than locking customers into a proprietary stack, We're building an open, flexible, and science-led architecture. This represents a fundamentally new model for the biometrics industry, one that differentiates AWARE today and positions us for leadership into the future. In short, we're combining AWARE's proven legacy with a modern, customer-centric platform strategy and a focused go-to-market, unlocking significant new growth opportunities in the quarters and years ahead. With that, I'll turn the call back over to Ajay.