Company: BKYI
Filing Date: 2025-06-27
Form Type: DEF 14A
Source: 0001437749-25-021438
Chunk: 66

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-06-27
Form: DEF 14A
Chunk 66
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 capital gain or loss, depending on the holding period following the date the shares were purchased by the participant prior to such sale or disposition, and we will not be entitled to an income tax deduction for any such capital gain.

Effect Upon Company

We will not be entitled to any deduction in the determination of its taxable income with respect to the amended ESPP, except in connection with a “disqualifying disposition”, in which case at the time of such “disqualifying disposition”, we would be entitled to deduct an amount equal to the amount taken into ordinary income by the participant making such “disqualifying disposition”.

THE DISCUSSION ABOVE IS INTENDED ONLY AS A SUMMARY AND DOES NOT PURPORT TO BE A COMPLETE DISCUSSION OF ALL POTENTIAL TAX EFFECTS RELEVANT TO PARTICIPATING IN THE PLAN. AMONG OTHER ITEMS THIS DISCUSSION DOES NOT ADDRESS ARE TAX CONSEQUENCES UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. JURISDICTION, OR ANY TAX TREATIES OR CONVENTIONS BETWEEN THE UNITED STATES AND NON-U.S. JURISDICTIONS. THIS DISCUSSION IS BASED UPON CURRENT LAW AND INTERPRETATIONAL AUTHORITIES THAT ARE SUBJECT TO CHANGE AT ANY TIME. THE COMPANY STRONGLY URGES YOU TO CONSULT WITH YOUR TAX ADVISER CONCERNING THE TAX CONSEQUENCES OF PARTICIPATING IN THE PLAN WITH RESPECT TO YOUR PERSONAL TAX CIRCUMSTANCES.

Other Information

The ESPP amendment was approved by the board on June 18, 2025, subject to stockholder approval. If approved by our stockholders, the amended ESPP will be effective August 8, 2025. The Committee may at any time amend, suspend or terminate the amended ESPP, provided that, subject to certain exceptions described in the amended ESPP, no such action may adversely affect any outstanding rights to purchase stock. The amended ESPP will continue in effect unless earlier terminated by the Committee.

On June 20, 2025, the closing price on the Nasdaq Capital Market of our common stock was $0.81 per share.

Required Vote

Approval of Proposal 5 requires the affirmative vote of a majority of the shares of common stock present or represented by proxy and entitled to vote on this proposal at the Annual Meeting. Abstentions will have the same effect as votes against Proposal 5, and broker non-votes will have no effect on Proposal 5.

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