Company: BKYI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017209
Chunk: 13

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 million in connection with a financing transaction (see Note 12 Warrants). In accordance with the terms of the 2024 Note, 40% of the proceeds received, or approximately $762,600, was used to prepay amounts due under the 2024 Note. 
    
   In,  January 2025, the Company entered into two Exchange Agreements with the holder of the Note and agreed to partition the original Note new Promissory Notes in the original principal amounts of $629,000 and $205,000, respectively, reducing the outstanding principal amount of the original Note to approximately $738,400.

       11. 
       EARNINGS (LOSS) PER SHARE - COMMON STOCK (“EPS”) 

   The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock.
    
   Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares, and they were also excluded from diluted earnings per share due to anti-dilution:

        Three Months ended March 31, 

        2025 

        2024 

        Stock options 

       1,857

       9,236

        Warrants 

       4,240,918

       1,848,826

        Total 

       4,242,775

       1,858,062

    12.  STOCKHOLDERS’ EQUITY 

   Issuances of Common Stock
    
   During the three-month periods ended  March 31, 2025, and 2024, there have not been any shares of common stock issued to anyone outside the Company, except as noted in this Note 12.
    
   On  June 18, 2021, the stockholders approved the Employee Stock Purchase Plan. Under the terms of this plan, 43,334 shares of common stock are reserved for issuance to employees and officers of the Company at a purchase price equal to 85% of the lower of the closing price of the common stock on the first day or the last day of the offering period as reported on the Nasdaq Capital Market. Eligible employees are granted an option to purchase shares under the plan