Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 117

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1B
Chunk 117
---
26
     %

      Hardware reserves 

     (213,005
     )

     3,586,500

     (3,799,505
     )

     -106
     %

      Total Costs and other expenses 
      
     $
     1,289,385

     $
     6,323,586

     $
     (5,034,201
     )

     -80
     %

Revenues

Revenue decreased $825,334 or 11% to $6,929,571 in 2024 as compared to $7,754,905 in 2023.  This reduction was due largely to our exit from our distribution agreement with Swivel Secure Limited (SLL) and transition to selling BIO-key branded solutions in the EMEA market and to the factors discussed below. 

For the years ended December 31, 2024, and 2023, service revenues included approximately $1,017.000 and $1,193,000, respectively, of recurring maintenance and support revenue, and approximately $91,000 and $1,026,000, respectively, of non-recurring custom services revenue.  Recurring service revenue decreased 15% in 2024 due to the loss of one large customer service agreement. Non-recurring custom services decreased 91% in 2024 due to a large product customization and upgrade for a Swivel Secure customer without a similar customization in 2024.  We expect the service fees to increase from the current levels as we expand our deployments worldwide.

For the year ended December 31, 2024 and 2023 license revenue increased $847,360 or 20% to $5,189,370, as several long-term customers expanded their license deployments in addition to several new customer deployments. We expect this trend to continue into 2025.

Hardware sales decreased by $562,315, or 47%, to $631,695 in 2024 from $1,194,010 in 2023. The decrease was attributable largely to fourth quarter 2023 sales to an international defense agency that did not reoccur in 2024.

Costs of goods sold

For the year ended December 31, 2024, cost of services decreased approximately 54% to $396,274, due primarily to the decreased costs to support Swivel Secure deployments.

License fees for the year ended December 31, 2024 decreased $585