Company: BKYI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026549
Chunk: 40

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 40
---
ances of Common Stock
    
   During the six-month periods ended  June 30, 2025, and 2024, there have not been any shares of common stock issued to anyone outside the Company, except as noted in this Note 12.
    
   On  June 18, 2021, the stockholders approved the Employee Stock Purchase Plan. Under the terms of this plan, 43,334 shares of common stock are reserved for issuance to employees and officers of the Company at a purchase price equal to 85% of the lower of the closing price of the common stock on the first day or the last day of the offering period as reported on the Nasdaq Capital Market. Eligible employees are granted an option to purchase shares under the plan funded by payroll deductions. The Company  may suspend or terminate the plan at any time, otherwise the plan expires  June 17, 2031. On  June 30, 2025, 1,251 shares were issued to employees which resulted in a $876 non-cash compensation expense for the Company. On  June 28, 2024, 1,390 shares were issued to employees which resulted in a $456 non-cash compensation expense for the Company.
    
   Issuances of Restricted Stock
    
   Restricted stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. The fair value of nonvested shares is determined based on the market price of the Company's common stock on the grant date. Nonvested stock is expensed ratably over the term of the restriction period.
    
   During the six-month periods ended  June 30, 2025 and 2024, the Company issued 2,500 and 0 shares of restricted common stock, respectively, to certain employees and directors. These shares vest in equal annual installments over a three-year period from the date of grant and had a fair value on the date of issuance of $2,525 and $0, respectively.
    
   During the six-month periods ended  June 30, 2025 and 2024, 7,572 and 316 shares of restricted common stock were forfeited, respectively.
    
   Share based compensation for the six-month periods ended  June 30, 2025 and 2024, was $52,488 and $56,793, respectively.