Company: BKYI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017209
Chunk: 33

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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 losses 

       (633,253
       )

       (633,253
       )

        Accounts receivable, net of allowances for credit losses 
        
       $
       803,277

       $
       718,229

   Bad debt expenses are recorded in selling, general, and administrative expense.

       5. 
       SHARE BASED COMPENSATION 

   The following table presents share-based compensation expenses included in the Company’s unaudited condensed interim consolidated statements of operations:

        Three Months Ended March 31, 

        2025 

        2024 

        Selling, general and administrative 
        
       $
       44,831

       $
       47,642

        Research, development and engineering 

       7,657

       9,151

       $
       52,488

       $
       56,793

       6. 
       INVENTORY 

   Inventory is stated at the lower of cost, determined on a first in, first out basis, or realizable value. The Company periodically evaluates inventory items and establishes reserves for obsolescence accordingly. The Company also reserves for excess quantities, slow moving goods, and for other impairment of value based upon assumptions of future demand and market conditions. The reserve on inventory is due to slow moving inventory purchased for projects in Nigeria, and slow-moving inventory. The Company has been selling units in small quantities and continues to explore other markets and opportunities to sell the product. Inventory is comprised of the following as at  March 31, 2025 and  December 31, 2024:

        March 31, 

        December 31, 

        2025 

        2024 

        Finished goods 
        
       $
       4,078,048

       $
       4,098,513

        Fabricated assemblies 

       53,289

       53,289

        Reserve on finished goods 

       (3,773,495
       )

       (3,773,495
       )

        Total inventory 
        
       $
       357,842

       $
       378,307

       10

   7.         INVESTMENTS
    
   Equity Investment in Privately Held Company   
   On  November 27, 2024, the Company purchased 5,000,000 shares (the “Boumarang Shares”) of common stock of Boumarang, Inc.,