Company: BKYI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001437749-25-035227
Chunk: 9

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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$1,286,682  $35,200  $5,467,293 

   *EMESA – Europe, Middle East, South America
    
   Deferred Revenue 
    
   Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not yet occurred. The majority of these amounts are related to maintenance contracts for which the revenue is recognized ratably over the applicable term, which generally is 12-60 months. Contracts greater than 12 months are segregated as long term deferred revenue. Maintenance contracts include provisions for unspecified when-and-if available product updates and customer telephone support services. At  September 30, 2025 and  December 31, 2024, amounts in deferred revenue were approximately $735,000 and $970,000, respectively. Revenue recognized during the three months and nine months ended  September 30, 2025 from amounts included in deferred revenue as of  December 31, 2024 was approximately $82,000 and $404,000, respectively. Revenue recognized during the three and nine months ended  September 30, 2024 from amounts included in deferred revenue at  December 31, 2023 was approximately $51,000 and $482,000, respectively.

    4.  ACCOUNTS RECEIVABLE 

   Accounts receivable are carried at original amount less an estimate made for credit losses based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for credit losses by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, current economic conditions and other relevant factors, including specific reserves for certain accounts. Accounts receivable are written off when deemed uncollectible.
    
   Accounts receivable at  September 30, 2025 and  December 31, 2024 consisted of the following: 

       September 30,    December 31,  
   2025    2024  
         
 Accounts receivable  $1,342,757  $1,351,482 
 Allowance for credit losses   (383,254)  (633,253)
 Accounts receivable, net of allowances for credit losses  $959,503  $718,229 

   Bad debt expenses are recorded in selling, general, and administrative expense.

    5.  SHARE-BASED COMP