Aware, Inc. is a leading provider of software and services to the biometrics
industry. We have been engaged in this business since 1993. Our software products
are used in government and commercial biometrics systems to identify or authenticate
people. Principal government applications of biometrics systems include border
control, visitor screening, law enforcement, national defense, intelligence,
secure credentialing, access control, and background checks. Principal commercial
applications include: i) user authentication for login to mobile devices, computers,
networks, and software programs; ii) user authentication for financial transactions
and purchases (online and in-person); iii) physical access control to buildings;
and iv) screening and background checks of prospective employees and customers.
Our products provide interoperable, standards-compliant, field-proven biometric
functionality and are used to capture, verify, format, compress and decompress
biometric images as well as aggregate, analyze, process, match and transport
those images within biometric systems. We sell a broad range of software products
for fingerprint, facial, iris, and voice modalities. We also offer a variety
of software engineering services, including: i) project planning and management;
ii) system design; iii) software design, development, customization, configuration,
and testing; and iv) software integration and installation. We sell our biometrics
software products and services globally through systems integrators and OEMs,
and directly to end user customers.
Aware was incorporated in Massachusetts in 1986. We are headquartered at 40
Middlesex Turnpike in Bedford, Massachusetts, and our telephone number at this
address is (781) 276-4000. Our website address is www.aware.com. The information
on our website is not part of this Form 10-K, unless expressly noted. Our stock
is traded on the Nasdaq Global Market under the symbol AWRE.
Biometrics is the measurement of unique, individual physiological characteristics,
such as fingerprints, faces, irises, and voices that can be used to determine
or verify an individual’s identity. The biometrics industry offers technology
that digitally captures and encodes biometric characteristics and then compares
those characteristics against previously encoded biometric data to determine
or verify an individual’s identity. Biometrics addresses the limitations
inherent in traditional identification and authentication processes, such as
paper credentials, passwords, PIN codes, and magnetic access cards.
The biometrics industry provides solutions for a broad range of government
and commercial applications. Principal government biometrics applications include
border control, visitor screening, law enforcement, national defense, intelligence,
secure credentialing, access control and background checks. Principal commercial
applications include: i) user authentication for login to mobile devices, computers,
networks, and software programs; ii) user authentication for financial transactions
and purchases (online and in-person); iii) physical access control to buildings;
and iv) screening and background checks of prospective employees and customers.
We believe that government and commercial entities will continue to adopt and
expand the use of biometrics-enabled solutions to address the limitations and
vulnerabilities of traditional identification and authentication processes.
We believe the following factors, among others, will contribute to the growth
of biometrics solutions: i) government-mandated implementation of identification
for employees, citizens, and foreign nationals to enhance national security;
ii) military implementations for the identification of terrorists and other
hostile persons; iii) increasing threats to personal security encountered in
areas such as transportation; iv) government and commercial efforts to detect
and reduce fraud and cybercrime; v) adoption of biometrics on mobile devices;
and vi) the emergence and adoption of international biometrics standards.
The biometrics industry may be segmented into government and commercial sub-markets.
While these markets are similar in many respects and share similar characteristics
and technology, certain aspects of the markets are different. We believe that
this market-based distinction is important to an understanding of Aware’s
business as the vast majority of our revenue is currently derived from government
customers.
Software products
We sell a broad range of biometrics software products that enable important
functions in biometrics systems, including:
1. Enrollment, analysis, and processing of biometric images and data on workstations
or mobile devices.
2. Integration of peripheral biometric capture devices.
3. Centralized workflow, transaction processing, and subsystem integration.
4. Matching of biometric samples against biometric databases to authenticate
or verify identities; and
5. Analysis and processing of text-based identity data.
Our biometrics software products range from discrete software blocks, such
as software development kits (“SDKs”) that customers can use to
develop their own solutions to more complete applications that customers can
use to reduce or eliminate their development times. Our products are described
below.
1) Biometric Platforms
AwareABIS™
AwareABIS is an Automated Biometric Identification System (ABIS) used for large-scale
biometric identification and deduplication using fingerprint, face, and iris
recognition. It is a highly scalable platform that performs one-to-many search
or one-to-one match against large stores of biometrics and other identity data.
It does so by deploying biometric data and matching algorithms across a cluster
of multiple computing nodes. Extremely large biometric databases (tens of millions
of records) cannot be stored or efficiently searched on a single computer. Distributing
the data and biometric comparison tasks across multiple machines enables even
extremely large databases to be searched in only seconds. AwareABIS enables
not only massive biometric search tasks but complex filter, search, match, and
link operations critical to data preparation and quality assurance functions
such as identity resolution and data deduplication. AwareABIS is built upon
several mature, high-performance, field-proven applications, platforms, and
algorithms from Aware. Components are available a la carte depending on the
application and system requirements.
Biometric Services Platform - BioSP™
Our Biometric Services Platform product is called BioSP. BioSP is a service-oriented
platform used to enable a biometric system with advanced biometric data processing
and management functionality in a web services architecture. It provides workflow,
data management and formatting, and other important utilities for large-scale
fingerprint recognition, face recognition, and iris recognition systems. BioSP
is well suited for applications that require the collection of biometrics throughout
a distributed network, and subsequent aggregation, analysis, processing, distribution,
matching, and sharing of data with other system components. BioSP is modular,
programmable, scalable, and secure, capable of managing all aspects of transaction
workflow including messaging, submissions, responses, and logging. BioSP makes
extensive use of open-source components and is J2EE-compliant.
Cloud-Based Matching Platform - Astra™
Our cloud-based marching platform product offering is called Astra. Astra is
used for large-scale fingerprint recognition, face recognition, iris recognition,
and text-based name matching and identity resolution. It is a highly scalable
biometric identification and authentication platform that performs one-to-many
search or one-to-one match against large stores of biometrics and other identity
data. It does so by deploying biometric and text data and matching algorithms
across a cluster of multiple computing nodes.
2) Biometric Search and Match
Biometric Search and Match SDKs
Our line of biometric search and match SDKs is call Nexa™ and it includes
Nexa|Fingerprint™, Nexa|Face™, Nexa|Iris™ and NexaVoice™.
These products provide high-performance biometric algorithms for fingerprint,
facial, iris and voice identification or authentication. The algorithms in these
products convert images into biometric templates, which can then be compared
to templates stored in databases to find matches.
Each Nexa SDK can be deployed on a workstation or a server, either as a standalone
biometric search/match API, or in combination with our other SDKs, applications,
BioSP, or Astra products. Our SequenceCheck, PreFace, and IrisCheck SDKs may
be used in concert with Nexa libraries to perform optional quality assurance
and preprocessing for enhanced fingerprint, face, and iris search and match
functionality.
Interoperable Fingerprint Matching SDK
Our product offering in this category is called AwareXM™. AwareXM is
an SDK that provides MINEX-certified, INCITS 378-compliant fingerprint minutiae
extraction, template generation, and fingerprint authentication.
3) Text Search and Identity Analytics SDKs - Inquire™
Inquire is a software development kit that performs fuzzy text-based filtering,
searching, matching, and linking functions towards discovery of useful information
in identity data. Analysis of text-based identity data is naturally complementary
to biometric verification and identification, and Inquire is optimized for processing
and analysis of data that includes biometrics.
Inquire provides many advanced text matching comparison algorithms and flexibility
in how matching algorithms behave (e.g. thresholds, data definitions). It can
be used to perform advanced analysis of text-based identity data for several
useful investigative applications including data analysis and quality assurance,
data integration, identity resolution, and link analysis. Inquire is fully scalable,
with infrastructure that automatically determines processing resources and optimizes
their utilization.
4) Biometric Applications
Our products in this category combine user interfaces with multiple Aware software
products to create more complete applications that operate on client workstations
or mobile devices. We have four types of biometric application products, including:
Enrollment – Fingerprint, Face, and Iris
Our enrollment application products include Universal Registration Client (“URCTM”)
and WebEnroll.
· URC is a configurable Windows-based enrollment application that performs
a variety of biometric data capture, analysis, matching, formatting, and hardware
abstraction functions.
· WebEnroll is a browser-based enrollment application available as an
option with BioSP that captures biographic data, fingerprints, facial images,
and iris images.
Fingerprint Cards
Our fingerprint card products include FormScannerSE™ and FormScannerMB™.
The two products are independent applications that may be used for scanning
and processing of inked fingerprint cards.
· FormScannerSE is designed for one-at-a-time, assisted “scan
and entry” processing of fingerprint cards, such as for manual data entry
of previously scanned card batches. It can also be used for manual “rework”
such as crop region adjustments.
· FormScannerMB is designed for “multi-batch” scanning of
large volumes of cards in an automated fashion, and provides features useful
for high-volume processing such as support for automatic document feeding and
real-time image quality feedback.
Forensic Analysis and QA
Our forensic analysis and quality assurance products include our WorkbenchSuiteTM
of products. WorkbenchSuite is a family of .NET workstation applications that
are designed to be used by an operator to analyze and repair or otherwise process
digital records containing biometric images and data. Each targets a particular
use case and implements workflow carefully designed to best assist analysts
in their task. The suite comprises:
· Fingerprint Workbench which is used for forensic analysis, processing,
and reporting of biometric fingerprint evidence comparison and search results.
· Forensic Workbench which is used for the categorization, processing,
and standards-compliant formatting of biometric images and demographic data.
· Sequence Workbench which is used for the detection and assisted repair
of fingerprint records containing sequence errors.
· CrosslinkWorkbench which is used for assisting with identifying and
repairing of crosslink errors in ANSI/NIST ITL transactions. Crosslinks are
biometric records that erroneously contain data from different individuals.
· FaceWorkbench which enables an analyst to analyze and process candidates
returned from a biometric face search.
Military-Grade Enrollment and Search
· URC|TacticalTM is a software application for performing biometric
enrollment, identification, and screening on ruggedized mobile biometric devices,
such as those used by military personnel in the field. It allows the operator
to capture both biographic and biometric data from subjects and then match the
biometric information to onboard watch lists and known mission-encountered individuals.
5) Biometric Enrollment SDKs Our software development kits consist of: i) multiple
software libraries; ii) sample applications that show customers how to use the
libraries; and iii) documentation. Customers use our SDKs to design and develop
biometrics applications. Our suite of enrollment SDKs performs a variety of
functions that are critical to biometric enrollment, including image capture,
image quality assurance, image formatting, and image compression. Our enrollment
SDK products include:
· Biometric Capture and Hardware Abstraction – This group of products
includes: i) LiveScan API; ii) PreFaceTM; iii) IrisCheckTM; and iv) SequenceCheckTM.
· Data Formatting and Validation – This group of products includes:
i) NISTPack; ii) ICAOPack; and iii) PIVPackTM.
· Fingerprint Enrollment Bundle – Our product in this category
is called CaptureSuiteTM. CaptureSuite is a bundle of software development kits
that support the development of applications with comprehensive functionality
for capture of either live scan or card scan fingerprint images. CaptureSuite
provides quality and compliance assurance mechanisms for applications, such
as fingerprint recognition, fingerprint authentication, and automated fingerprint
identification systems.
· Fingerprint Cards – This group of products includes: i) AccuScanTM;
and ii) AccuPrintTM.
· Image Compression – This group of products includes: i) Aware
WSQ1000; and ii) Aware JPEG2000.
· Controls and applets - This group of products consists of our BioComponentsTM
line of products. Our BioComponents products allow customers to develop biometric
enrollment applications more quickly than if they purchased our SDKs. Each product
in the group includes a user interface and one or more software libraries that
perform a discrete set of functions, such as automated image capture, quality
assurance, and capture hardware integration. BioComponents comprise modular,
independent, self-contained software components that can operate either independently
or in concert with one another. Specific BioComponents products and the functions
they perform are:
· FingerprintComponent is used to capture, verify image quality, and
compress fingerprint images.
· PhotoComponent is used to capture, verify image quality, and manipulate
facial images.
· ScanningComponent is used to scan forms such as inked fingerprint cards.
· PrintingComponent is used for printing FBI-quality fingerprint images
on cards and forms.
· NISTComponent is used for biographic and textual data entry and formatting,
NIST compliance checking, and submission.
6) Mobile Biometrics
Over the past few years, we have modified some of our traditional Windows-based,
client-server products for mobile devices that operate on Android and iOS platforms.
As of the end of 2017, our mobile biometrics product line-up included:
Biometric Authentication
FIDO® Certified SDKs
FIDO® Suite is a family of products that are certified by the FIDO Alliance
and are interoperable with other FIDO-certified products. Our FIDO Suite includes:
i) Aware FIDO® Face Authenticator; ii) Aware FIDO® Client; and iii)
Aware FIDO® Server. These products are available for Android and iOS devices
and enable the functionality described below.
The FIDO authentication process employs a challenge/response mechanism using
digital signatures that works in a two-step process as follows:
Registration: Users complete a registration process by submitting their biometrics
and PIN through a special app or website. If there is a successful biometric/PIN
match, a public key pair is created. A private key is retained on the client
in a cryptographic keystore and a public key is sent to a server where it is
saved in a keystore under a user’s ID.
Login: When users attempt to login, a FIDO authentication server creates a
random challenge and sends it to the FIDO client. The biometrics and PIN are
matched locally by a FIDO authenticator against the biometrics enrolled for
that user. Biometrics data is never transmitted to the server. Users are prompted
again to enter their biometrics and PIN. If the match is successful, the private
key from the FIDO client keystore is unlocked. The FIDO client signs the challenge
using the user’s private key and sends it to the FIDO server. The server
verifies the signature using the public key received during registration and
the user is permitted to login.
Knomi™
In October 2017, we introduced Knomi, a mobile biometric authentication framework
offering face, voice and keystroke dynamics. The Knomi mobile biometric authentication
framework is a collection of biometric SDKs running on mobile devices and a
server that together enable strong, multi-factor, password-free authentication
from a mobile device using biometrics. Knomi offers multiple biometric modality
options, including facial recognition, keystroke dynamics, and voice authentication
as means to authenticate. Banks or any other commercial enterprise can deploy
Knomi to enhance their password-based authentication mechanisms, making login
to their mobile applications more secure and convenient for their customers
and employees. Knomi software components can be used in different combinations
and configurations to enable either a server-centric architecture or a device-centric,
FIDO® Certified implementation.
Mobile Enrollment and Search
We also offer several other products for mobile biometric enrollment and search,
including:
URC|Mobile™ is a software application for capturing fingerprint and facial
images on an Android smart phone or tablet using its onboard camera and a tethered
fingerprint capture device. It is designed to be used by an enrollment attendant
for rapid capture and quality assurance of biometric data and submission to
a centralized biometric database for enrollment, search, or authentication.
URC|Mobile is best suited for an environment where mobility beyond a desktop
is useful or where a more economical client platform than a desktop solution
is needed.
Mobile SDKs – We have ported some of our Windows-based SDKs to mobile
operating systems, including iOS and Android. They offer the same functionality
as the Windows versions, and include documentation and reference applications
specific to these operating systems. Our family of mobile SDKs includes: i)
Nexa|Face™ Mobile; ii) Nexa|Fingerprint™ Mobile; iii) PreFaceTM
Mobile; iv) LiveScan API Mobile; v) NISTPack Mobile; vi) WSQ1000 Mobile; and
vii) AwareXMTM Mobile.
7) Biometric Identity Duplicate Detection
In April 2017, we introduced Indigo|Onboard™ , a cloud-based solution
that leverages biometrics to enhance the onboarding process with a determination
of whether someone has an existing identity record in the system. In this way,
attempts at identity fraud can be detected and duplicate identity records prevented.
Indigo|Onboard offers browser-based capture of fingerprints and faces, and scalable
one-to-many search of millions of records. It separates the enrollment and investigation
processes into two asynchronous steps so they can be performed and administrated
by personnel with different skills and credentials. Fingerprint data is searched
against all records previously enrolled in the system, and positive search results
are queued in a worklist, with each work item including alerts and the associated
ID numbers and facial images. As a separate asynchronous process, work items
can be used towards further investigation, and then either closed or escalated.
8) Imaging products
In addition to our biometrics software products, we also sell products used
in applications involving medical and advanced imaging. Our principal imaging
product is Aware JPEG 2000, which is based on the JPEG2000 standard. The JPEG2000
standard is an image compression standard and coding system that was created
by the Joint Photographic Experts Group committee in 2000. Our JPEG2000 product
is used to compress, store, and display images. Those images are typically medical
images.