SAN DIEGO, March 29, 2021 /PRNewswire/ -- ImageWare® Systems, Inc. (OTCQB: IWSY) ("ImageWare" or "the Company"), a leader in biometric identification and authentication, today provided several updates related to its continuing business operations.
"Since coming to ImageWare last year, I have seen our team make tremendous progress in transforming our business for its new growth phase, but we still have much work ahead," said Company Chair, President, and CEO Kristin Taylor. "We've made some difficult choices and likely have more ahead, but we are taking the necessary steps to support the long-term viability and success of our company. Our efforts in the near term will take some time before they translate to sustained financial improvement, but we are well underway and remain encouraged by the opportunities in front of us.
"Over the next 12 plus months, we will be working to complete several major operational initiatives, designed to put our company on a path to sustained growth and profitability. In addition to rolling out both new and enhanced legacy product offerings and platform integrations, we are aggressively closing on several strategic partnerships with cutting-edge, market-ready, global players as evidenced by our recent collaboration announced with Safe-T. We are also completing a comprehensive review and implementing a company-wide IP development program to maintain and expand our thought leadership. With costly cybersecurity attacks proliferating and the growing security demands of remote work, ImageWare is ideally positioned to capitalize on the ever-expanding need for simpler, safer, secure access and identification. In public safety, the ImageWare brand remains strong, enabling us to leverage that position for the imminent launch of our refreshed platform for law enforcement and public safety."
In the fourth quarter of 2020, the Company continued to encounter various sales and execution- related challenges associated with its rebuilding initiative, which impacted its financial results for the period. ImageWare's ongoing efforts to address these issues include upgrading its sales force and leadership team, refining its focus to expand market share and product footprint, and enhancing its legacy product offerings to support integration into its comprehensive product strategy. The Company currently expects these efforts to result in improved bookings and sales results beginning in the second half of 2021.
Additionally, the Company announced that it will be making a transition from current leadership and has begun the search for a new Head of Sales to support its expanded growth goals. In parallel, the Company will be hiring a number of new salespeople to support its North American division, as it commercializes ImageWare Authenticate, its Multifactor Authentication SaaS product, and its renewed law enforcement platform.
Chief Financial Officer Transition
ImageWare also announced today that Chief Financial Officer Jay Lewis resigned from his current position effective April 7th. He continues to support the Company in its current filings and the transition to a new CFO. ImageWare is already deeply engaged in the search for a new CFO with deep operational and turnaround skills, including regulatory, financial reporting, M&A, capital markets, and corporate finance experience.
In February, the Company's Board of Directors and shareholders approved, by written consent of holders representing more than 54% of the Company's outstanding voting securities, the following resolutions:
- The first resolution provides for an increase in the Company's authorized common stock from 1.0 billion to 2.0 billion shares. The increase is intended to provide the Company with additional flexibility in connection with future financings, strategic acquisitions, debt restructuring incentives, and other general corporate purposes. With the authorized share increase in place, the Company will be able to take advantage of opportunities without incurring delays and the expense associated with obtaining special shareholder approval in each such instance.
- The second resolution expands the number of shares available under the Company's 2020 Omnibus Equity Incentive Plan. The Company will be adding an incremental 120 million shares to the Incentive Plan share pool to retain, attract and incentivize high-quality talent. Assuming the full conversion of all issued and outstanding preferred stock, the current issued and outstanding common stock equals 724,897,968 shares.
Separately, effective April 12, 2021, former Chairman of the Board and Chief Executive Officer, S. James ("Jim") Miller, Jr., who has served the Company for more than three decades, will no longer be affiliated with the business. Miller has been operating under a consulting agreement with the Company since November 2020; his agreement is set to expire on the date referenced.
About ImageWare® Systems, Inc.
Founded in 1987, ImageWare provides defense-grade biometric identification and authentication for access to your data, products, services or facilities. We are experts in biometric authentication and considered a preeminent patent holder of multimodal IP, having many of the most-cited patents in the industry. Our patented IWS Biometric Engine® (BE) is the most accurate and fastest biometrics matching engine in the industry, capable of our patented fusion of multiple biometrics. Part of our heritage is in law enforcement, having built the first state-wide digital booking platform for United States local law enforcement – and more than three decades of experience in the challenging government sector creating biometric smart cards and logical access for millions of individuals. We are a "biometrics first" company, leveraging unique human characteristics to provide unparalleled accuracy for identification while protecting your identity. For more information, please visit www.iwsinc.com.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if," "should" and "will" and similar expressions as they relate to ImageWare Systems, Inc. are intended to identify such forward-looking statements. ImageWare may from time to time update publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in ImageWare's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
ImageWare Systems, Inc.
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SOURCE ImageWare Systems, Inc.