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

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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. The lack of control and marketability discounts were based on published studies and transfer restrictions contained in Boumarang’s corporate governance documents.    Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Boumarang Shares  may fluctuate from period to period and the fair value of the Boumarang Shares  may differ significantly from the values that would have been used had a ready market existed for such shares and  may differ materially from the values that the Company  may ultimately realize. The early-stage pre-revenue status and unproven technology of Boumarang raise uncertainties that could impact the recoverability of the investment in the Boumarang Shares. 
    
   ASC 321-10-35 requires annual impairment testing for equity securities without readily determinable fair values. 

       8. 
       COMMITMENTS AND CONTINGENCIES 

   Litigation
    
   From time to time, the Company  may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of  March 31, 2025, the Company was not a party to any pending lawsuits.

       11

       9. 
       LEASES 

   The Company’s leases office space in New Jersey, Minnesota, New Hampshire, Madrid and Hong-Kong with lease termination dates in 2027. The property leased in China is paid monthly as used, without a formal agreement. The following tables present the components of lease expense and supplemental balance sheet information related to the operating leases were:

        3 Months ended 

        3 Months ended 

        March 31, 

        March 31, 

        2025 

        2024 

        Lease cost 

        Total lease cost 
        
       $
       6,979

       $
       14,553

        March 31, 

        December 31, 

        Balance sheet information 
        
        2025 

        2024 

        Operating right-of-use assets 
        
       $
       67,670

       $
       73,372

        Operating lease liabilities, current portion 
        
       $
       25,260

       $
       24,642

        Operating lease liabilities, non-current portion 

       42,410

       48,994

        Total operating lease liabilities 
        
       $
       67,670

       $
       73,636