Company: BKYI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026549
Chunk: 7

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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        Research, development and engineering 

       11,779

       18,539

       $
       74,325

       $
       105,564

       6. 
       INVENTORY 

   Inventory is stated at the lower of cost, determined on a first in, first out basis, or realizable value. The Company periodically evaluates inventory items and establishes reserves for obsolescence accordingly. The Company also reserves for excess quantities, slow moving goods, and for other impairment of value based upon assumptions of future demand and market conditions. The reserve on inventory is due to slow moving inventory purchased for projects in Nigeria, and slow-moving inventory. The Company has been selling units in small quantities and continues to explore other markets and opportunities to sell the product. Inventory is comprised of the following as at  June 30, 2025 and  December 31, 2024:

        June 30, 

        December 31, 

        2025 

        2024 

        Finished goods 
        
       $
       3,761,329

       $
       4,098,513

        Fabricated assemblies 

       53,289

       53,289

        Reserve on finished goods 

       (3,496,080
       )

       (3,773,495
       )

        Total inventory 
        
       $
       318,538

       $
       378,307

       11

   7.         INVESTMENTS
    
   Equity Investment in Privately Held Company   
   On  November 27, 2024, the Company purchased 5,000,000 shares (the “Boumarang Shares”) of common stock of Boumarang, Inc., an early-stage private technology company developing sustainable long-range drone technology for commercial applications. The Boumarang Shares represent approximately 7.92% of the issued and outstanding shares of Boumarang, Inc. and the Company has no corporate governance or control rights. The Boumarang Shares were purchased from Fiber Food Systems, Inc. (“Fiber Food”), an early-stage company engaged in developing global food security solutions, in consideration of the issuance of 595,000 shares of the Company’s common stock. Fiber Food is not a principal stockholder of Boumarang, Inc. and has no corporate governance or control rights.       The purchase agreement between the Company and Fiber Food contemplates collaboration between the parties regarding potential