Company: BKYI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026549
Chunk: 14

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 were originally issued to the Investor on  September 13, 2024 (the "Existing Warrants"). In consideration for the exercise of the Existing Warrants, subject to compliance with the beneficial ownership limitations included in the existing warrants, the Investor received new unregistered Series A warrants to purchase up to an aggregate of 1,545,834 shares of the Company’s common stock (the “Series A Warrants”) and new unregistered Series B warrants to purchase up to an aggregate of 1,545,834 shares of the Company’s common stock (the “Series B Warrants”, and together with the “Series A Warrants, the “New Warrants”). The New Warrants have substantially the same terms, are immediately exercisable at an exercise price of $2.15 per share, and will expire five years from the date of issuance. The New Warrants each include a beneficial ownership limitation that prevents the Investor from beneficially owning more than 4.99% of the Company’s outstanding common stock at any time. The Company realized gross proceeds under the Warrant Exercise Agreement of approximately $3.8 million, prior to deducting placement agent fees and estimated offering expenses. Net proceeds are being used for working capital and general corporate purposes, including repayment of a portion of the 2024 Note.
    
   There were 777,666 prefunded warrants exercised during the six-month period ended  June 30, 2024.
    
   4. Partitioned Notes
    
   During the three-month period ended  June 30, 2025, partitioned notes in the aggregate principal amount of $400,000 were exchanged for 498,437 shares of common stock (See Note 10 Note Payable).

       13. 
       FAIR VALUES OF FINANCIAL INSTRUMENTS 

   Cash and cash equivalents, accounts receivable, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. The carrying value of the Company’s government loan payable approximates fair value as the interest rate related to the financial instruments approximated market.

    14.  MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLE 

   During each of the three-month periods ended  June 30, 2025, and 2024, two customers accounted for 47% and one customers accounted for 59% of the revenue, respectively. 
    
   Two customers accounted for 49% of current accounts receivable