tl;dr:

Aware Inc. (AWRE) is a technology company in software development with a market cap of nearly $39M. The company has shown some signs of financial improvement, as indicated by their positive EBITDA and operating cash flow in the latest quarter. However, the company still struggles with negative net income and operating income. Further, the company's high debt to equity ratio and negative profit margin suggest potential risks. The high insider ownership indicates that the management has a strong belief in the company's future, which might be a good sign.

Summary:

AWRE operates in the technology sector and specifically in the software-application industry. The company has a beta of 0.78, indicating its volatility is less than the market average. This suggests that the company is less risky compared to the market.

The company has a negative forward PE of -14.23, indicating that the market expects the company's earnings to decline in the future. AWRE’s market capitalization is approximately $38.8M, categorizing it as a small-cap company.

The profit margin of the company is negative (-26.94%), which means the company has not been profitable recently. The company has a total cash of $27,522,000 and a total debt of $4,528,000. The debt to equity ratio of the company is 11.958, which is relatively high and suggests the company relies heavily on debt to finance its growth.

The company's return on equity is negative, meaning it's not effectively using its investors' capital. The company's gross margin is 92.34%, which is considerably high, indicating the company effectively controls its production costs.

Pros:

1. AWRE has a considerable gross margin, suggesting it effectively controls its production costs.
2. The company has a high insider ownership, which usually indicates confidence in the company's future performance.
3. The company has turned its operating cash flow and EBITDA positive in the recent quarter, which is a good sign.

Cons:

1. The company has negative net income and operating income, indicating it's not profitable.
2. The company has a high debt to equity ratio, suggesting it heavily relies on debt for its operations.
3. The forward PE is negative, indicating the market anticipates the company's earnings will decrease in the future.

Recommendation:

Investors should hold off on investing in AWRE until the company shows consistent profitability and reduces its reliance on debt. While the company has shown some improvement, like positive EBITDA and operating cash flow, it still struggles with negative net income and operating income. Further, the company has a high debt to equity ratio, which is a potential risk. The high insider ownership suggests the management is confident about the company's future, but investors should consider this along with other financial indicators. As always, investors should also consider their risk tolerance and investment objectives before making a decision.