December 29, 2020 - 3:09pm EST by
2020 2021
Price: 3.42 EPS 0 0
Shares Out. (in M): 20 P/E 0 0
Market Cap (in $M): 68 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 68 TEV/EBIT 0 0

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A bit of background will set the stage for this important corporate transformation.



On April 26 2012, Aware sold to Intel for $75 million, patents and patent applications and other rights relating to Wifi and Wireless Networking.


Aware at this point is pivoted to biometric software with major direction change supported by a solid treasury and a appetite for potential acquisitions in this newly emerging industry.


Barely does a day pass without the need to identify ourselves and or protect ourselves as we go about our life.Brokerage accounts require passwords and or voice recognition to let us enter our accounts, banking transactions as well as stock and real estate. To further protect us against many hackers, corporation and governments employ fingerprint identification systems / face and iris recognition programs. Biometrics is employed by countries, corporations, armed services, local law enforcement thru activities as border control, money transfers, fraud detection, prisoner controls and simply as prosaic as to gain entry into our condo.


Newer market segments like e-passports, e-visa services, voter and auto registration, healthcare, dna analysis among some of the more notable areas as well as a recent new arrival-touchless fingerprint id. Another new development uses facial recognition to newly ubiquitous facial masks during the pandemic thru  the US.


The company during the past years, pivoted to mobile biometric and face matching technology -and industry is growing at over 20%, their award winning software-Knomi-has 100% accuracy  in applications with prison populations, London metropolitan police, the Dept of Defense and the  US Navy.


The company has stated their clients are the bluest of the blue but thus far have not disclosed a full list of users.

The model used is a software as a solution (subscription-based) SaaS model, in the financial world, retail, government and international sectors.


The recent third quarter recorded a reduced loss of $1.8 million($.08) which compares to $3.1 million($.15) loss in period ending September 30 2019 with revenues of $2.47 down from $3.0 million.


Revenues for past nine months were $7.9 million down from $9.8 million, underscoring the startup nature of the field and lumpiness of business awards.


What gives us confidence in the future of the company is not merely the growing industry they are expanding in but the financial strength of the company with about $42 million cash and 20 million shares, thus they have the ability to grow thru cash acquisition and/or stock. Recent insider buying by the CEO and a corporate director shows a great depth of confidence in the future of the company.

Aware is an stock hidden away in the over the counter market but who has its fingers in some of the most exciting area of industrial and consumer security. Although it has 20 million shares outstanding , it is a light trader and some patience is needed to accumulate size in the stock. But we feel the work should be well rewarded.

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise do not hold a material investment in the issuer's securities.



Clearly one of the hidden leaders in the field of biometrics with an excellent client base including some of the leading corporations and governments, Aware offers many exciting potentials in a growing field. Aided and abetted with a strong bench of experts, supported by a war chest of over $40 million and buttressed with insider purchases, we feel the future appears exciting.


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