*New market that has potential for a substantial valuation ($20B http://uk.finance.yahoo.com/news/biometric-systems-market-hit-value-000000827.html

*No current market foundational leader / platform (yet...)for multi modal biometrics
*IWSY holds the foundational patents for multi modal biometric / an impressive patent number in this space and companies like IMB, Honeywell, etc. list IWSYs foundational patents. They have filed two lawsuits for patent infringement in the last five months.

*Partnered now with a large cloud based corp (Fujitsu) on both a NA and global platform (upcoming) which includes a sales force from Fujitsu.

*Recent win with Emida (significant rev for IWSY based on CC lowest most conservative projections) http://www.iwsinc.com/assets/files/IWSY%20Emida%20Technologies%20Release.pdf

*Proven execution of past contracts “Our innovative, patented, multi-modal biometric software platform manages millions of identities for a wide range of customers from the U.S. Veterans Administration and the Mexican Ministry of Foreign Affairs to the Canadian Air Transport Security Authority (CATSA).” Old adage if its good enough for the USG…
Have won other contracts in borders and aviation (Ecuador and LAX ONT VNY airports)
http://www.iwsinc.com/about-iws/news-and-events-weblink/press-releases/iws-to-provide-biometric-port-security-for-ecuador
http://www.iwsinc.com/about-iws/news-and-events-weblink/press-releases/la-world-airports-places-order-for-imageware-biometric-identity

*Main shareholder (Neal Goldman) holds 43% of float (76M shares and likely not to increase aside from existing warrants based on CC - Neal Goldman to loan them an unsecured loan for $2.5M if they require it). http://www.j3sg.com/Reports/Stock-Insider/Generate-Institution-Portfolio.php?institutionid=4382&DV=yes

*Are debt free (no loans at all - awful NGP loan)

*Profitability / Gross margins (60% and higher – software). According to May cc CEO states they are on cusp of being profitable (temporarily in next qtr due to existing maintenance contract payments) .

*Impressive board members :
John Cronin – Outside Director Mr. Cronin currently serves as a Managing Director and Chairman of ipCG, the largest intellectual property strategy consulting team in the world, serving over 500 companies since 1998. As the primary architect for ipCG’s transaction methods, John has also structured transactions for ipCG clients, including out-licensing agreements, asset sales, and mergers and acquisitions. Prior to his work at ipCG, John spent 17 years serving as the top inventor at IBM, with over 100 patents and 150 patent publications. Additionally, Mr. Cronin serves as a member of the advisory board for innoPad, Inc.

Neal Goldman – Outside Director Mr. Goldman is currently the president, chief compliance officer and director of Goldman Capital Management, Inc., an employee owned investment advisor that he founded in 1985. Additionally, Mr. Goldman is a member of the CFA institute and serves as a member of the board of directors and compensation committee for Blyth, Inc., a New York Stock Exchange-listed designer and marketer of home decorative and fragrance products.

Charlie Crocker - Outside Director Mr. Crocker currently serves as Chairman and CEO of Crocker Capital, a private investment company. Mr. Crocker also serves as a director of Franklin Resources, Inc., Teledyne Technologies, Inc., Fiduciary Trust International, Bailard, Inc. and Mercator MedSystems. Franklin Resources, Inc. and Teledyne Technologies, Inc. are both publically traded companies. Beyond his corporate duties, Mr. Crocker serves as a Trustee of the Mary A. Crocker Trust, the Cypress Lawn Cemetery Association and the Fine Arts Museums Foundation of San Francisco. Mr. Crocker received his B.S. degree from Stanford University and M.B.A. from the University of California, Berkeley.

*Android apps for push biometric technology / other uses are in advanced discussions which CEO stated it is less about will they use it but more about cost/pricing. See transcript. http://seekingalpha.com/article/1425811-imageware-systems-ceo-hosts-q1-2013-corporate-update-conference-call-transcript?source=yahoo

At the same time, there are a lot of issues, the company has been slow to deliver on many aspects / wins:
-This is a new business model for them and it is untested /proven. The industry is not established and IWSY is a small player in terms of revenues and funding.
-There is a ton of competition out there and with deeper pockets / strong partners.
-Will their IP lawsuits hold up, esp against a big competitor if filed?
-Cash is always an issue even with Goldman's unsecured loan.
-Recently positioned board members (Cronin and Crocker) have not invested in IWSY, question begs why.