BIO-key International, Inc.

Good morning, ladies and gentlemen. Thank you for standing by and welcome to Bio-key International's second quarter conference call. During management's prepared remarks, all participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero. Afterwards, listeners will be invited to participate in a question and answer session. To ask a question, you may press star, then one on a touch-tone phone. As a reminder, this conference is being recorded today, Friday, August 12, 2022. I would now like to turn the call over to Bill Jones, Bio-Key Investor Relations. Please proceed, sir.

Thank you. Thank you for joining our call. Presenting today are Bio-Key's Chairman and CEO, Mike DePasquale, as well as Alex Rocha, who is Managing Director of BioKey EMEA and BioKey CFO, Cece Welch. I will remind everyone that today's conference call and webcast and answers to questions include forward-looking statements which are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected. Words such as anticipate, believe, estimate, expect, and plan, or similar words typically identify and express forward-looking statements. Such forward-looking statements are made based on management's beliefs and assumptions using information that's currently available pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For a complete description of these and other risk factors that may affect the future performance of BioKey, please see Risk Factors in the company's annual report filed on Form 10-K with the Securities and Exchange Commission. Listeners are cautioned not to place undue reliance on forward-looking statements which speak only as of today's date. The company undertakes no obligation to revise or disclose revisions to forward-looking statements to reflect future events or circumstances after today. And with that, I would like to turn the call over to Mike. Mike?

Thank you, Bill, and thank you for reading our safe harbor this morning. Bill is from our IR firm, Catalyst Global. Kim Biddings, who's normally on the call, is on vacation. So again, thanks, Bill. Good morning, and thank you for joining our call today. After my remarks this morning, I will turn the call over to Alex Rocha to review our efforts in Europe and the Middle East. Then CeCe will provide financial highlights for the quarter, and then we'll open the call for investor questions. The second quarter was the first full quarter of operating results from our Swivel Secure acquisition, which closed in March, and its integration into BioKey is proceeding well and according to plan. Alex will discuss the business in more detail, but we expect it to make an important contribution to our 2022 performance as it significantly expands our international team, our operations, our customer base, and our growth potential. Our revenue for the second quarter nearly doubled from 2021, driven by a 75% increase in software license revenue, reflecting growth in our installed base of customers including the benefit of Swivel Secure. We continue to advance our core identity and access management business both through inside sales efforts and our growing channel alliance partner program or CAP program. Leveraging the CAP model, we expect 50% or more of new sales domestically going forward to be sourced through partners. One of our key partners is Intellisys. where we have a master-agent referral relationship with a very broad reach. We've had particular success with certain Intellisys agents, so we're focused on developing those key relationships as well as working to finding more successful agents within the Intellisys universe. We spoke on a panel at their channel partner event in Boston in Q2, and we continue to meet with their team to solidify joint marketing events and programs for the second half to continue to build on this relationship. In the second quarter, we partnered with 3i Technologies, a value-added distributor of mobile, security, and identity solutions with a network of value-added resellers and MSPs that expands the scope of our channel sales and marketing opportunities. This affiliation will enable BioKey to introduce our complete IAM solution packages to customers in their network, particularly within the financial services and local government markets. Joint marketing programs developed in collaboration with 3i were launched in Q2. Just last month, we announced that Dark Steel Technologies, a managed security services provider, or MSSP, in Orlando, had selected our PortalGuard Identity as a Service platform to provide its customers with enterprise-grade identity authentication security for access to desktops, critical business applications, and data. Dark Steel delivers enterprise-class cybersecurity solutions to small and medium-sized customers, expanding the reach of our solutions. Also in Q2, BioKey joined the Amazon Web Services Partner Network, a global community of partners who leverage AWS to build solutions and services for customers. Bio-key now also has access to the AWS ISV Accelerate program, a co-sell program for companies that provide software solutions that run on or integrate with AWS. Co-selling not only provides Bio-key with more opportunities, but also can result in better customer outcomes given the mutual commitment from partners like AWS and Bio-key. We continue to increase the penetration of our flagship PortalGuard solution within county and municipal government agencies, higher education institutions, and businesses and enterprises. PortalGuard resonates as a high-value, easy-to-deploy IAM solution that addresses increasing security threats of a hybrid workforce and users that require access to critical data, applications, and information from anywhere. Its feature set includes workforce and customer multi-factor authentication, identity-bound biometrics , single sign-on, and self-service password reset options that support complete, enterprise-grade IAM strategies. Customers recognize PortalGuard's flexibility and unique capabilities including support for 16 different multi-factor authentication methods, including, as I just mentioned, our industry-leading identity-bound biometric capability. New customers include a city in Texas that selected PortalGuard in Q2 to strengthen its overall security posture and effectively respond to evolving cyber threats. As you may be aware, cyber attacks against municipalities have increased in the last year, Not only in terms of ransomware for profit, but also to disrupt critical infrastructure, with school districts, city halls, and police departments among the most vulnerable. Counties and other local government entities are choosing Portal Guard to provide strong multi-factor authentication, access management, and compliance with insurance requirements. This new customer relationship in Texas was secured by Dallas IT consulting firm Majetics through Intellisys. In Africa, we have forged a new partnership with a company called E-Transact Nigeria PLC for equipping its mobile money agents. That along with our Sterling Bank Specta relationship will accelerate the deployment of our solutions in the second half of the year. Separately, We are awaiting commencement of a voter registration project that is expected to require 2,000 of our Pocket 10 devices. We also recently secured application programming interfaces, or APIs, for key access from the National Identity Management Commission, or NIMC, in Nigeria for verification of all national identity numbers. In summary, We anticipate a rise in deployment of our hardware, transactional software, and partner relationships in Africa. There is an incredible demand for mobile security solutions across the continent, and we are front and center with the right technology and relationships to monetize this opportunity. It certainly has taken longer than we believed, but we remain very bullish on our prospects in Africa. Switching to product development, BioKey remains committed to continued innovation and new product development, such as our Q2 launch of important updates and enhancements to our MobileAuth solution. MobileAuth is currently the only multi-factor authentication mobile app that integrates the power of identity-bound biometrics with other authentication modalities, allowing customers to build a more complete and secure multi-factor strategy. MobileAuth supports palm scanning with our palm positive solution and facial recognition now with our face positive solution, empowering mobile devices to integrate with our portal guard offering. MobileAuth also supports Apple Face ID, Touch ID, and Android biometrics, as well as push token authentication. These enhancements make MobileAuth Much more powerful and even easier for customers to meet their increasing authentication and security requirements. I'm proud to say that BioKey received further recognition in Q2 with a number of industry awards, including those for our portal guard solution mentioned in today's press release. But there were a couple of individual leadership awards that I want to acknowledge. One is for our very own Mira LaCous, who received a Gold Globie CTO of the Year Award for Security Software in this year's IT World Awards. And Kim Biddings was named as Channel Reseller Network, or CRN's Woman of the Channel List, for the second year in a row. Congratulations to both Mira and Kim, and to the entire BioKey team, our employees and staff, that play an integral role in our success and industry recognition. BioKey has built a strong base of product and service offerings and an expanding base of partnerships to address the growing global demand for organizations to protect their data information systems with strong cybersecurity solutions. We continue to see expanding opportunities to grow our business globally, driven by compelling security solutions that are scalable, Easy to use and deploy and cost-effective. Protection begins with securing an organization's digital borders with strong but user-friendly IAM solutions. Our PortalGuard platform meets this need, providing a strong customer value proposition with an expanding array of cutting-edge authentication solutions. We will continue to build on our solution set, both internally and via value-enhancing M&A opportunities that could also expand our customer base or our sales and marketing reach as we have done successfully over the past two years. Given the building momentum we are seeing in our business, including with the integration of Swivel Secure Europe and further progress advancing opportunities in Africa, we are reiterating our full-year 2022 revenue guidance of $10 to $13 million. 70% of which we expect to come from recurring software license revenue. Our guidance represents growth of approximately 100% or more over 2021 sales. This outlook is supported by our solid capital position, talented global management and product development teams, as well as our expanding global sales marketing and channel partner footprint. We're focused on building on our positive Q2 momentum for the balance of 2022 and the company is positioned to break even operations or operating cash flow within this revenue guidance range, subject obviously to our mix of software and hardware revenues. With that, I'll now turn the conference call to Alex Rocha to discuss our European and Middle East business. Alex?