Company: BKYI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001437749-25-035227
Chunk: 46

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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 the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Boumarang Shares  may fluctuate from period to period and the fair value of the Boumarang Shares  may differ significantly from the values that would have been used had a ready market existed for such shares and  may differ materially from the values that the Company  may ultimately realize. The early-stage pre-revenue status and unproven technology of Boumarang, Inc. raise uncertainties that could impact the recoverability of the investment in the Boumarang Shares.
    
   ASC 321-10-35 Equity Securities - Subsequent Measurement requires annual impairment testing for equity securities without readily determinable fair values. 

       12

       8. 
       COMMITMENTS AND CONTINGENCIES 

   Litigation
    
   From time to time, the Company  may be involved in litigation relating to claims arising out of our operations in the normal course of business. As of  September 30, 2025, the Company was not a party to any pending lawsuits.

    9.  LEASES 

   The Company’s leases office space in New Jersey, Minnesota, New Hampshire, Madrid and Hong-Kong with lease termination dates in 2027. The property leased in China is paid monthly as used, without a formal agreement. The following tables present the components of lease expense and supplemental balance sheet information related to the operating leases were:

       3 Months ended    3 Months ended  
   September 30,    September 30,  
   2025    2024  
         
 Lease cost         
 Total lease cost  $6,979  $9,702 

       9 Months ended    9 Months ended  
   September 30,    September 30,  
   2025    2024  
         
 Lease cost         
 Total lease cost  $20,937  $38,808 

       September 30,    December 31,  
 Balance sheet information   2025    2024  
 Operating right-of-use assets  $54,433  $73,372 
         
 Operating lease liabilities, current portion  $26,522  $24,642 
 Operating lease liabilities, non-current portion   28,967   48,994