$AWRE

AWARE INC /MA/

CIK:0001015739|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 3,254	$ 3,895	$ 6,641	$ 7,501
Costs and expenses:
Cost of revenue	520	267	855	434
Research and development	2,533	1,960	5,755	3,881
Selling and marketing	1,385	1,964	3,210	3,627
General and administrative	1,555	1,665	3,211	3,371
Total costs and expenses	5,993	5,856	13,031	11,313
Operating loss	(2,739)	(1,961)	(6,390)	(3,812)
Interest income	175	218	376	479
Loss before provision for income taxes	(2,564)	(1,743)	(6,014)	(3,333)
Provision for income taxes	1	26	9	34
Net loss	(2,565)	(1,769)	(6,023)	(3,367)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on available-for-sale securities	(46)	3	(108)	47
Comprehensive loss	$ (2,611)	$ (1,766)	$ (6,131)	$ (3,320)
Net loss per share - basic	$ (0.12)	$ (0.08)	$ (0.28)	$ (0.16)
Net loss per share - diluted	$ (0.12)	$ (0.08)	$ (0.28)	$ (0.16)
Weighted-average shares – basic	21,655	21,347	21,624	21,296
Weighted-average shares – diluted	21,655	21,347	21,624	21,296
Software licenses
Revenue:
Total revenue	$ 954	$ 1,420	$ 1,985	$ 2,736
Software maintenance
Revenue:
Total revenue	1,998	2,148	4,066	4,252
Services and other
Revenue:
Total revenue	$ 302	$ 327	$ 590	$ 513

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (6,023)	$ (3,367)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	279	287
Stock-based compensation	590	562
Allowance for credit losses	23	(94)
Non-cash lease expense	15	25
Changes in assets and liabilities:
Accounts receivable	1,048	523
Unbilled receivables	149	(260)
Prepaid expenses and other current assets	418	(199)
Accounts payable	(496)	(388)
Accrued expenses	31	(240)
Deferred revenue	(1,475)	(940)
Net cash used in operating activities	(5,441)	(4,091)
Cash flows from investing activities:
Purchases of property and equipment	0	(45)
Purchase of marketable securities	(1,266)	(4,948)
Sale of marketable securities	2,250	3,500
Net cash provided by (used in) investing activities	984	(1,493)
Cash flows from financing activities:
Proceeds from issuance of common stock	50	30
Payments made for taxes of employees who surrendered shares related to unrestricted stock	(3)	(3)
Repurchase of common stock	0	(115)
Net cash provided by (used in) financing activities	47	(88)
Decrease in cash and cash equivalents	(4,410)	(5,672)
Cash and cash equivalents, beginning of period	7,269	12,972
Cash and cash equivalents, end of period	2,859	7,300
Supplemental disclosure:
Cash paid for income taxes	$ 1	$ 7

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 2,859	$ 7,269
Marketable securities	13,979	15,026
Accounts receivable, net	1,940	3,010
Unbilled receivables, net	1,199	1,348
Prepaid expenses and other current assets	1,149	1,612
Total current assets	21,126	28,265
Property and equipment, net	376	477
Intangible assets, net	1,391	1,569
Goodwill	3,120	3,120
Right of use asset	3,469	3,642
Other long-term assets	122	122
Total assets	29,604	37,195
Current liabilities:
Accounts payable	549	1,045
Accrued expenses	961	930
Current portion of operating lease liabilities	686	676
Deferred revenue	3,462	4,854
Total current liabilities	5,658	7,505
Long-term deferred revenue	178	261
Long-term operating lease liabilities	3,125	3,292
Total long-term liabilities	3,303	3,553
Stockholders’ equity:
Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding
Common stock, $.01 par value; 70,000,000 shares authorized; issued and outstanding of 21,703,961 as of June 30, 2026 and 21,444,665 as of December 31, 2025	217	215
Additional paid-in capital	102,145	101,510
Accumulated deficit	(81,839)	(75,816)
Accumulated other comprehensive income	120	228
Total stockholders’ equity	20,643	26,137
Total liabilities and stockholders’ equity	$ 29,604	$ 37,195