On October 7, 2021, Nantahala Capital Management, LLC announced that it has engaged in discussions with ImageWare Systems, Inc.’s management and board regarding means to preserve and enhance shareholder value. Nantahala Capital stated that at the request of the Company, it expects to contribute to further discussions with the Company’s management and board and their advisers, either singly or together with other shareholders and interested parties, regarding the Company’s business, governance, financial condition, operations, prospects, expected results, and strategic alternatives.