Company: BKYI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017209
Chunk: 16

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 receivable at  March 31, 2025. At  December 31, 2024, two customers accounted for 36% of current accounts receivable.

    15.  INCOME TAXES 

   United States, Hong Kong and Nigeria
   The Company recorded no income tax expense for the three months ended  March 31, 2025 and 2024 because the estimated annual effective tax rate was zero. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company’s annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives.
    
   As of  March 31, 2025 and  December 31, 2024, the Company provided a full valuation allowance against its net deferred tax assets since the Company believes it is more likely than not that its deferred tax assets will not be realized.
    
   Spain
   Due to the current loss for the three months ended  March 31, 2025, the Company did not record income taxes.  

    16  SUBSEQUENT EVENTS 

   During  April 2025, 16,926 shares of restricted common stock were forfeited by employees who left the Company before the lapse of the restriction period applicable to such shares.
    
   On  May 8, 2025, the Company issued 11,691 shares of common stock to its directors in payment of meeting fees. Additionally, the Company issued an aggregate of 12,500 shares of restricted stock to new employees with three-year vesting. All the shares were issued at $0.77 the closing price on  May 8, 2024, as reported on the Nasdaq Capital Market. 
    
   The Company has reviewed subsequent events through the date of this filing. 

     14

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “anticipate,” “believe,” “should,” “estimate,” “will,” “may,” “future,” “plan,” “intend” and “expect” and similar expressions generally identify