diff --git a/initrd/bin/gui-init b/initrd/bin/gui-init
index cd69e87c..dfd412f2 100755
--- a/initrd/bin/gui-init
+++ b/initrd/bin/gui-init
@@ -250,8 +250,8 @@ update_totp()
 update_hotp()
 {
   TRACE_FUNC
+  HOTP="Unverified"
   if [ -x /bin/hotp_verification ]; then
-    HOTP=`unseal-hotp`
     if ! hotp_verification info ; then
       if [ "$skip_to_menu" = "true" ]; then
         return 1  # Already asked to skip to menu from a prior error
@@ -265,6 +265,7 @@ update_hotp()
         return
       fi
     fi
+    HOTP=`unseal-hotp`
     # Don't output HOTP codes to screen, so as to make replay attacks harder
     hotp_verification check "$HOTP"
     case "$?" in
diff --git a/initrd/bin/oem-factory-reset b/initrd/bin/oem-factory-reset
index 6b597fc0..c368eef9 100755
--- a/initrd/bin/oem-factory-reset
+++ b/initrd/bin/oem-factory-reset
@@ -783,12 +783,22 @@ report_integrity_measurements() {
 
         # Check and report on HOTP status
         if [ -x /bin/hotp_verification ]; then
-            HOTP=$(unseal-hotp) >/dev/null 2>&1
+            HOTP="Unverified"
             enable_usb
-            if ! hotp_verification info >/dev/null 2>&1; then
-                whiptail $CONFIG_WARNING_BG_COLOR --title 'WARNING: Please insert your HOTP enabled USB Security Dongle' --msgbox "Your HOTP enabled USB Security Dongle was not detected.\n\nPlease remove it and insert it again." 0 80
+            for attempt in 1 2 3; do
+                if ! hotp_verification info >/dev/null 2>&1; then
+                    whiptail $CONFIG_WARNING_BG_COLOR --title "WARNING: Please insert your HOTP enabled USB Security Dongle (Attempt $attempt/3)" --msgbox "Your HOTP enabled USB Security Dongle was not detected.\n\nPlease remove it and insert it again." 0 80
+                else
+                    break
+                fi
+            done
+
+            if [ $attempt -eq 3 ]; then
+                die "No HOTP enabled USB Security Dongle detected. Please disable 'CONFIG_HOTPKEY' in the board config and rebuild."
             fi
+
             # Don't output HOTP codes to screen, so as to make replay attacks harder
+            HOTP=$(unseal-hotp) >/dev/null 2>&1
             hotp_verification check $HOTP
             case "$?" in
             0)
diff --git a/initrd/bin/unseal-hotp b/initrd/bin/unseal-hotp
index 031c6d27..8565ac61 100755
--- a/initrd/bin/unseal-hotp
+++ b/initrd/bin/unseal-hotp
@@ -6,13 +6,12 @@
 HOTP_SECRET="/tmp/secret/hotp.key"
 HOTP_COUNTER="/boot/kexec_hotp_counter"
 
-mount_boot_or_die()
-{
+mount_boot_or_die() {
   TRACE_FUNC
   # Mount local disk if it is not already mounted
-  if ! grep -q /boot /proc/mounts ; then
-    mount -o ro /boot \
-      || die "Unable to mount /boot"
+  if ! grep -q /boot /proc/mounts; then
+    mount -o ro /boot ||
+      die "Unable to mount /boot"
   fi
 }
 
@@ -38,34 +37,35 @@ fi
 
 #counter_value=$(printf "%d" 0x${counter_value})
 if [ "$CONFIG_TPM" = "y" ]; then
-	DEBUG "Unsealing HOTP secret reuses TOTP sealed secret..."
-	tpmr unseal 4d47 0,1,2,3,4,7 312 "$HOTP_SECRET" || die "Unable to unseal HOTP secret"
+  DEBUG "Unsealing HOTP secret reuses TOTP sealed secret..."
+  tpmr unseal 4d47 0,1,2,3,4,7 312 "$HOTP_SECRET" || die "Unable to unseal HOTP secret"
 else
-	# without a TPM, generate a secret based on the SHA-256 of the ROM
-	secret_from_rom_hash > "$HOTP_SECRET" || die "Reading ROM failed"
+  # without a TPM, generate a secret based on the SHA-256 of the ROM
+  secret_from_rom_hash >"$HOTP_SECRET" || die "Reading ROM failed"
 fi
 
 # Truncate the secret if it is longer than the maximum HOTP secret
 truncate_max_bytes 20 "$HOTP_SECRET"
 
-if ! hotp $counter_value < "$HOTP_SECRET"; then
-	shred -n 10 -z -u "$HOTP_SECRET" 2> /dev/null
-	die 'Unable to compute HOTP hash?'
+if ! hotp $counter_value <"$HOTP_SECRET"; then
+  shred -n 10 -z -u "$HOTP_SECRET" 2>/dev/null
+  die 'Unable to compute HOTP hash?'
 fi
 
-shred -n 10 -z -u "$HOTP_SECRET" 2> /dev/null
-
-#increment_tpm_counter $counter > /dev/null \
-#|| die "Unable to increment tpm counter"
+shred -n 10 -z -u "$HOTP_SECRET" 2>/dev/null
 
+#Incrementing counter under $HOTP_COUNTER
+#
+# If for whatever reason, this counter is 5 counts different then on HOTP USB Security dongle, HOTP unseal fails.
+#Note: HOTP_COUNTER="/boot/kexec_hotp_counter" is not detached signed under kexec.sig since it changes
+#
+# TODO: figure out a better alternative then a counter that can be modified on disk
+#   As of now, this counter isincreased only in the validated presence of the HOTP dongle being connected per callers
 mount -o remount,rw /boot
-
-counter_value=`expr $counter_value + 1`
-echo $counter_value > $HOTP_COUNTER \
-|| die "Unable to create hotp counter file"
-
-#sha256sum /tmp/counter-$counter > $HOTP_COUNTER \
-#|| die "Unable to create hotp counter file"
+DEBUG "Incrementing HOTP counter under $HOTP_COUNTER"
+counter_value=$(expr $counter_value + 1)
+echo $counter_value >$HOTP_COUNTER ||
+  die "Unable to create hotp counter file"
 mount -o remount,ro /boot
 
 exit 0