Company: BKYI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001437749-25-035227
Chunk: 59

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 accretive to earnings. We cannot provide any assurance as to whether we will be able to complete any acquisition and if completed, successfully integrate any business we acquire into our operations.

Recent Developments

The current trend of continued remote work environments increases the risk of unauthorized users, phishing attacks, and hackers who are eager to take advantage of the challenges of securing remote workers. A growing trend of security incidents that highlight potential cybersecurity vulnerabilities, additional regulatory requirements, and increasingly stringent Cyber Insurance underwriting standards that mandate enhanced security solutions has resulted in many businesses requiring MFA for their employees, partners and customers to access their business systems and data. We believe that biometrics should continue to play a key role in remote user authentication.

Critical Accounting Policies and Estimates

For detailed information regarding our critical accounting policies and estimates, see our financial statements and notes thereto included in this Report and in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates from those disclosed in our most recent Annual Report on Form 10-K.

Recent Accounting Pronouncements

For detailed information regarding recent account pronouncements, see Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this report.

       18

RESULTS OF OPERATIONS

THREE MONTHS ENDED September 30, 2025 AS COMPARED TO September 30, 2024

Consolidated Results of Operations - Percent Trend

      Three Months Ended September 30, 

      2025 

      2024 

      Revenues 

      Services 

     17
     %

     13
     %

      License fees 

     59
     %

     67
     %

      Hardware 

     24
     %

     20
     %

      Total Revenues 

     100
     %

     100
     %

      Costs and other expenses 

      Cost of services 

     5
     %

     5
     %

      Cost of license fees 

     5
     %

     7
     %

      Cost of hardware 

     28
     %

     10
     %

      Cost of hardware - reserve 

     -15
     %

     0
     %

      Total Cost of Goods Sold 

     23
     %

     22
     %

      Gross profit 

     77
     %

     78
     %

      Operating expenses 

      Selling, general and administrative