David Traverse: Thank you, Bob, and good afternoon, everyone, on the call. It’s a pleasure to be back here again with you today. Turning to our financial results for the third quarter ended September 30, 2023. Total revenue was $6.4 million compared to $3.2 million for the second quarter of 2023 and $3 million for the same year ago period. The increase in total revenue was primarily due to higher software license sales in the period. For Q3 2023, recurring revenue was $2.2 million. The $2.2 million in recurring revenue was up 5% sequentially and 4% year-over-year. Operating cash flow for the quarter was $2.5 million compared to usage of $2.2 million in the prior quarter and usage of $2 million in the same year ago period. Looking at our operating expenses, including the impact of one-time events.
Our third quarter 2023 operating expenses were $5.6 million, a decrease from $6.1 million in the prior quarter and up from $600,000 in Q3 of last year. Operating income for the third quarter of 2023 was $700,000 compared to an operating loss of $2.9 million in the prior year quarter and operating income of $2.4 million in the same year ago period. For the third quarter of 2023, GAAP net income totaled $1.1 million or $0.05 per diluted share compared to a GAAP net loss of $2.7 million or $0.13 per diluted share in Q2 2023 and GAAP net income of $2.6 million or $0.12 per diluted share in Q3 last year. Please note that operating expenses, operating income and net income for Q3 of 2023 included an $800,000 one-time gain related to our adjustment to the fair value of the contingent acquisition payment from our 2021 acquisition of FortressID and that operating expenses, operating income and net income of Q3 of 2022 included a $5.7 million one-time gain related to the sale of the company’s building located in Bedford, Massachusetts in July of 2022.
Our adjusted EBITDA for the quarter, which we reconcile to GAAP net income in our earnings release, totaled $400,000, which compares to adjusted EBITDA loss of $2.4 million in the prior quarter and a loss of $2.5 million in the same year ago period. The significant improvement in adjusted EBITDA was primarily due to higher revenue. Looking at our balance sheet. We ended the quarter at $27.5 million in cash, cash equivalents and marketable securities compared to $25.1 million at the end of the prior quarter. We repurchased 81,083 common shares of stock at an average price of $1.52 per share as part of our previously announced share buyback program. We believe repurchasing our common stock at certain valuation levels presents an attractive opportunity given our strong balance sheet and growth prospects.
As we exit 2023, we are supported by a strong and improving cash balance and no debt. Our robust balance sheet enables us to evaluate every high-ROI opportunity that has potential to advance our strategic growth road map. That completes my financial summary. I’d now like to turn the call over to Craig to discuss the advances we made in our go-to-market strategy. Craig?
Craig Herman: Thanks, David. It’s great to be here with you all today. As Bob discussed, Q3 was a very strong quarter for Aware. We continue to protect and scale our recurring revenue base through the implementation of a formal partner program, further product enhancements and capabilities and capitalizing on the high-quality opportunities in the pipeline. Building upon the foundation we laid last quarter for future recurring revenue, we closed several deals that were previously pushed to the right, including the large multimillion-dollar, multiyear U.S. federal government contract Bob mentioned earlier. After receiving a lot of positive feedback from our customers, we incorporated facial identification capabilities, enhanced front-end document capture and better processing functionality into AwareID.
