Company: BKYI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017209
Chunk: 21

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 21
---
 
      
     $
     98,144

     $
     138,849

     $
     (40,705
     )

     -29
     %

      License 

     72,885

     148,221

     (75,336
     )

     -51
     %

      Hardware 

     108,469

     12,573

     95,896

     763
     %

      Total COGS 
      
     $
     279,498

     $
     299,643

     $
     (20,145
     )

     -7
     %

       17

Revenues

For the three months ended March 31, 2025, and 2024, service revenues included approximately $265,000 and $193,000, respectively, of recurring maintenance and support revenue, and approximately $8,000 and $20,000 respectively, of non-recurring custom services revenue. Recurring service revenue increased $72,000 or 37% in 2025 which was due to the updated support for a large customer service agreement. Non-recurring custom services decreased 59% due to loss of one large customer for Swivel Secure customizations and upgrades. We expect the service revenue to remain at these reduced levels in future periods.

For the three months ended March 31, 2025, license revenue decreased $851,676 or 44% to $1,098,758 from $1,950,434 in the corresponding period in 2024 ,  due to the ramp up of BIO-key EMEA selling only BIO-key product which we expect to accelerate in 2025. 

    For the three months ended 
   March 31, 2025, hardware sales increased 1236% to $235,803 from $17,647 in the corresponding period in 
   2024. The increase was due largely to several long-term customers expanding their purchase of biometric cybersecurity solutions. For the three months ended March 31 2024 existing customers 
   
     reduced add-on orders.

Costs of goods sold

For the three months ended March 31, 2025, cost of service decreased $40,705 or 29% to $98,144 from $138,849 in the three months ended March 31, 2024, due to absence of costs to support Swivel Secure product deployments. For the three months