Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 28

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 28
---
 -100 
     %

      Interest expense 

     (175,755
     )

     (218,270
     )

     42,515

     -19
     %

     $
     (312,649
     )
      
     $
     170,466

     $
     (483,115
     )

     -283
     %

The amounts for other income (expense) for the year ended December 31, 2024 consisted of interest income of $110, interest expense of $175,755 on the note payable and the government loan through the BBVA bank, and a loan fee amortization amount of $124,000. The amounts for the year ended December 31, 2023, consisted of interest income of $11,533, a gain from the sale of a PistolStar domain asset, change in loan transactions costs for payment of the convertible note payable as we elected to value the convertible note under the fair value option, and interest expense of $218,270 on the convertible note payable and the government loan through the BBVA bank.

Net Loss 

Reflecting increased gross profit and lower operating expenses, net loss improved to $(4,300,692) in 2024 from a net loss of $(8,521,837) in 2023.

      23

LIQUIDITY AND CAPITAL RESOURCES

Operating activities overview

Net cash used for operations during the year ended December 31, 2024 was $2,914,072. Items of note included:

      ● 
     Net positive cash flows related to non-cash expenses of approximately $1,219,000.

      ● 
     Net negative cash flows related to changes in lease liabilities, accounts payable, deposits and accrued liabilities in the aggregate amount of approximately $605,000 and our net loss for the period.

Investing activities overview

Net cash used in investing activities during the year December 31, 2024 was $13,047 for capital expenditures.

Financing activities overview    

Approximately $3,908,000 was provided by financing activities during the year ended December 31, 2024 consisting of the proceeds advanced under a secured note, proceeds from the exercise of warrants, and $3,740 from sales of common stock under our employee stock purchase plan.  These amounts were offset by a partial repayment of note payable, repayment of  a government loan, and costs associated with the issuance of our securities.

Sources of Liquidity 

 Since