UPDATE: BIO-key Delivers Phishing-Resistant Biometric Security to Alabama’s AOD Federal Credit Union

Rhea-AI Summary

BIO-key (OTC:BKYI) announced a strategic partnership with IT solutions provider BlueAlly, highlighted by deployment of its PortalGuard platform at AOD Federal Credit Union in Alabama.

The rollout delivers phishing-resistant, identity-bound biometric authentication to reduce MFA-related risks, streamline operations, lower help desk demand, and support zero-trust security and regulatory compliance.

Positive

• Strategic partnership formed with BlueAlly to expand IAM solution reach
• PortalGuard deployment at AOD Federal Credit Union for phishing-resistant authentication
• Identity-Bound Biometrics used to address credential-based security risks
• Operational efficiencies reported at AOD, including reduced help desk demand
• Support for zero-trust strategy and high regulatory compliance standards at AOD

Negative

• None.

News Market Reaction – BKYI

+6.67%

+6.67% Session close to close

In the Jun 2 session, BKYI gained 6.67%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +6.7% in the session following this news. A strong positive reaction aligns with BIO...

Analysis

The stock moved +6.7% in the session following this news. A strong positive reaction aligns with BIO-key’s strategy of expanding real-world deployments of its biometric security platform. Recent history shows mixed but sometimes favorable responses to operational updates and financial progress, such as improved Q1 2026 results. Investors would likely weigh this win at AOD Federal Credit Union against prior listing and filing challenges, while monitoring how quickly similar partnerships accumulate and translate into sustained revenue growth.

Key Figures

Credit union members: 37,500 members Branch count: 7 branches

2 metrics

Credit union members 37,500 members AOD Federal Credit Union membership

Branch count 7 branches AOD Federal Credit Union locations across North East Alabama

Historical Context

5 past events · Latest: May 18 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 18	Q1 results/outlook	Positive	+0.5%	Stronger Q1 revenue, improved margins, and profitability expectations for 1H 2026.
May 12	Nasdaq suspension/OTC	Negative	+16.8%	Nasdaq suspension and move to OTC despite reiterating growth and profitability goals.
May 12	Investor webcast	Neutral	-34.8%	Announcement of Q1 investor call and webcast logistics for stakeholders.
Apr 28	Reverse stock split	Neutral	-14.3%	1-for-10 reverse split to support efforts to regain Nasdaq bid-price compliance.
Apr 22	10-K delay notice	Negative	-5.5%	Nasdaq non-compliance notice for delayed 2025 Form 10-K filing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has produced inconsistent reactions, with both positive and negative items sometimes followed by sharp declines or modest gains.

Recent Company History

Over the past months, BIO-key has focused on exchange compliance, capital structure, and improving fundamentals. A 1-for-10 reverse split and Nasdaq non-compliance notices preceded suspension and a move to OTC Markets. Concurrently, the company reported higher Q1 2026 revenue and narrowed losses, with management signaling an outlook for first-half growth and potential profitability. Today’s customer-focused security deployment update fits into the broader narrative of financial and defense wins highlighted in earlier filings and press releases.

Key Terms

identity and access management, iam, multi-factor authentication, mfa, +4 more

8 terms

identity and access management technical

"provider of workforce and customer identity and access management (IAM) solutions"

Identity and access management is the set of tools and processes that verify who a person or device is and control what digital resources they can use, like a company’s system for issuing security badges and setting which doors each badge opens. It matters to investors because strong identity controls reduce the chance of costly data breaches, regulatory fines and downtime, protect customer trust, and can lower IT costs and operational risk.

iam technical

"identity and access management (IAM) solutions enabling phoneless, tokenless"

Identity and access management (IAM) is the system and policies a company uses to control who can access its digital systems, data and applications—think of it as the set of keys, locks and visitor rules for a building’s computer network. Strong IAM reduces the risk of data breaches, fraud and regulatory fines, so investors pay attention because weaknesses can lead to costly outages, damage to reputation and legal liabilities that affect a company’s value.

multi-factor authentication technical

"vulnerabilities associated with traditional Multi-Factor Authentication (MFA) solutions"

A security method that requires users to prove their identity in two or more different ways before accessing accounts or systems, such as combining a password with a one-time code sent to a phone or a fingerprint. For investors, it reduces the risk of unauthorized access to sensitive accounts, lowers chances of fraud or data breaches, and helps protect a company’s financials and reputation—similar to needing both a key and a fingerprint to open a safe.

mfa technical

"traditional Multi-Factor Authentication (MFA) solutions. As sophisticated phishing"

Multi-factor authentication (MFA) is a security method that requires users to provide two or more different proofs of identity—something they know (like a password), something they have (like a phone or hardware token), or something they are (like a fingerprint)—before gaining access to an account or system. For investors, MFA acts like a second and third lock on an online brokerage or corporate portal, greatly reducing the risk of unauthorized trades, stolen personal data, account takeovers, and resulting financial loss or reputational damage.

identity-bound biometrics medical

"BIO-key’s Identity-Bound Biometrics ensure that only the authorized individual"

Identity-bound biometrics are physical or biological traits—like fingerprints, facial patterns, iris scans, or DNA—linked directly to a single person and used to prove who they are. For investors, these systems matter because they enable stronger, harder-to-steal authentication for devices, accounts, and transactions (think of a house key that can’t be copied), but they also bring regulatory, privacy and liability risks that can affect adoption, costs and market potential for companies using or selling the technology.

sms codes technical

"phone-based apps or SMS codes—which can be intercepted or bypassed"

SMS codes are short numeric or alphanumeric messages sent to a mobile phone as part of text messaging; they include one-time passcodes for logging in, short service numbers used by companies for alerts, and verification messages. For investors they matter because SMS codes help protect account access and deliver time-sensitive notices (like trade confirmations or regulatory alerts), but they can also be targeted by fraud, so verifying sources and using additional security safeguards is important.

zero-trust technical

"support our zero-trust strategy. Equally impactful, removing the need"

Zero-trust is a cybersecurity approach that treats every user, device and network connection as potentially risky and requires verification before granting access to data or systems. Like checking ID at every door instead of assuming people inside are safe, it limits what each user can reach and records access. Investors care because it lowers the chance and cost of breaches, supports regulatory compliance, and can protect a company’s reputation and financial value.

biometric authentication technical

"combine biometric authentication with a wide range of MFA options"

Biometric authentication uses a person’s unique physical or behavioral traits—such as fingerprints, facial features, iris patterns, or voice—to verify identity instead of passwords or codes. For investors, it matters because faster, more secure login methods can boost customer trust and reduce fraud-related costs, while also creating opportunities and risks around technology adoption, data privacy rules, and the companies that build or supply the biometric systems.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

BYNUM, Ala. and HOLMDEL, N.J., June 02, 2026 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (OTC Markets: BKYI), an innovative provider of workforce and customer identity and access management (IAM) solutions enabling phoneless, tokenless, passwordless, and phishing-resistant authentication, today announced a strategic partnership with BlueAlly, a premier provider of IT solutions and managed services. The partnership debuted with a successful deployment of BIO-key’s PortalGuard platform for AOD Federal Credit Union, which was seeking to eliminate friction in the user experience and vulnerabilities associated with traditional Multi-Factor Authentication (MFA) solutions.

As sophisticated phishing and "MFA fatigue" campaigns continue to target financial institutions, BIO-key’s BlueAlly partnership focuses on delivering phishing-resistant authentication. Unlike standard MFA that relies on phone-based apps or SMS codes—which can be intercepted or bypassed—BIO-key’s Identity-Bound Biometrics ensure that only the authorized individual can gain system access, providing a security layer that cannot be shared or stolen.

"As a financial institution, security and identity assurance are non-negotiable," said Aaron Woods, CIO of AOD Federal Credit Union. "Bio-Key PortalGuard delivered a level of flexibility beyond what we saw with Duo Security or UserLock, enabling us to combine biometric authentication with a wide range of MFA options to reduce risk and support our zero-trust strategy. Equally impactful, removing the need for frequent password changes has streamlined operations—boosting productivity and lowering help desk demand without sacrificing security. The support staff is amazing to work with, and the platform is very affordable compared to other solutions."

AOD Federal Credit Union serves more than 37,500 members from seven branches across North East Alabama. By integrating BIO-key’s phishing-resistant technology, AOD has effectively closed the loop on credential-based risks. The solution enables AOD to verify the actual person behind the login attempt, satisfying the highest regulatory compliance standards while significantly reducing the operational burden on its IT team.

"Our solution is centered on solving the most critical vulnerability in the enterprise: the human element," said Michael DePasquale, Chairman and CEO of BIO-key. "Deploying our phishing-resistant biometrics at AOD Federal Credit Union demonstrates how organizations can achieve superior security without the friction of legacy MFA. We are proud to work with a customer that understands the necessity of moving beyond passwords to a truly identity-bound future."

About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over forty million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless, and passwordless biometric options. Its cloud-hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.

BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements, whether as a result of new information, future events, or otherwise.

Engage with BIO-key:
LinkedIn – Corporate:	https://www.linkedin.com/company/bio-key-international
X – Corporate:	@BIOkeyIntl
X – Investors:	@BIO_keyIR
StockTwits:	BIO_keyIR

BIO-key Resources:
https://www.bio-key.com/products/identity-access-management/iam-platform/
https://www.bio-key.com/products/biometric-authentication/
https://www.bio-key.com/products/authentication-devices/

Investor Contacts:
William Jones, David Collins
Catalyst IR
BKYI@catalyst-ir.com or 212-924-9800

FAQ

What did BIO-key (OTC:BKYI) announce about AOD Federal Credit Union on June 2, 2026?

BIO-key announced deployment of its PortalGuard platform at AOD Federal Credit Union through a partnership with BlueAlly. According to BIO-key, the solution delivers phishing-resistant, identity-bound biometric authentication designed to reduce credential-based risks, improve user experience, and support zero-trust security strategies.

How does BIO-key PortalGuard improve security for AOD Federal Credit Union members?

PortalGuard uses BIO-key’s Identity-Bound Biometrics to ensure only the authorized person can access systems. According to BIO-key, this approach reduces reliance on phone-based MFA, mitigates phishing and MFA fatigue risks, and helps AOD meet stringent regulatory compliance while lowering operational IT burden.

Why did AOD Federal Credit Union choose BIO-key PortalGuard over Duo Security or UserLock?

AOD’s CIO said PortalGuard offered greater flexibility than Duo Security or UserLock, combining biometrics with many MFA options. According to BIO-key, this helped reduce risk, streamline operations, cut frequent password changes, and lower help desk demand without sacrificing security for its Alabama member base.

What role does BlueAlly play in BIO-key’s partnership with AOD Federal Credit Union (BKYI)?

BlueAlly acts as BIO-key’s strategic partner and premier IT solutions provider in the deployment. According to BIO-key, the partnership with BlueAlly focuses on delivering phishing-resistant authentication to financial institutions, with AOD Federal Credit Union serving as a successful initial implementation of PortalGuard.

How does BIO-key’s Identity-Bound Biometrics differ from traditional MFA for BKYI customers?

Identity-Bound Biometrics link access to the actual person, not devices or codes. According to BIO-key, this avoids vulnerabilities of SMS or app-based MFA, cannot be shared or stolen, and aims to close credential-based risk gaps while enhancing user experience and productivity.