Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 267

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1C
Chunk 267
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 employees of the Company and 9,168 of shares of restricted common stock were forfeited during fiscal year 2024. The Company issued 16,404 shares of restricted common stock to certain employees of the Company and 3,752 of shares of restricted common stock were forfeited during fiscal year 2023.  These shares vest in equal annual installments over a three-year period from the date of grant.
    
   Restricted stock compensation for the years ended  December 31, 2024 and 2023 was $224,470 and $225,487, respectively.
    
   Issuances to Directors, Executive Officers & Consultants
    
   During the 2024 and 2023 years, the Company issued 12,048 and 3,078 shares of common stock respectively to its directors in lieu of payment of board fees, valued at $18,005 and $39,007 respectively.
    
   Warrants
    
   Warrants Issued with a Warrant Exercise Agreement:
    
   On  September 12, 2024, the Company entered into a Warrant Exercise Agreement ("inducement agreement") with an existing institutional investor for the immediate exercise of certain outstanding warrants that the Company issued on  October 30, 2023. Pursuant to the warrant inducement agreement, the investor agreed to exercise outstanding warrants to purchase an aggregate of 1,030,556 shares of the Company's common stock at an amended exercise price of $1.85. The gross proceeds from the exercise of the warrants was approximately $1.9 million, prior to deducting placement agent fees and estimated offering expenses. In consideration for the immediate exercise of the warrants, the Company also agreed to issue to the investor unregistered Series A Warrants to purchase an aggregate of 1,030,556 shares of the Company's common stock and unregistered Series B Warrants to purchase an aggregate of 1,030,556 shares of the Company's common stock, each with an exercise price of $1.85 per share. The Series A Warrants and Series B Warrants share substantially the same terms, are immediately exercisable and will expire five years from the date of issuance. 
    
   Warrants Issued with Convertible Note:
    
   See Note K - Convertible Note Payable for the warrant issued with a convertible note in 2022.
    
   Valuation Assumptions for Warrants:
    
   The Company records