Company: BKYI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001437749-25-035227
Chunk: 28

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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     %

      Cost of Goods Sold 

      Service 

     297,147

     322,957

     (25,810
     )

     -8
     %

      License 

     233,450

     443,384

     (209,934
     )

     -47
     %

      Hardware 

     1,080,109

     260,684

     819,425

     314
     %

      Hardware - reserve 

     (509,040
     )

     -

     (509,040
     )
      
     100
     %

      Total COGS 
      
     $
     1,101,666

     $
     1,027,025

     $
     74,641

     7
     %

       21

Revenues

For the nine months ended September 30, 2025, and 2024, service revenues included approximately $799,000 and $681,000, respectively, of recurring maintenance and support revenue, and approximately $64,000 and $83,000 respectively, of non-recurring custom services revenue. Recurring service revenue increased approximately $117,000 or 17% in 2025 which was due to the updated support for a large customer service agreement. Non-recurring custom services decreased 22% due to an upgrade for one large customer in 2024. Overall, service revenues increased 13% to $862,707 from $764,062 in the corresponding period in 2024.

For the nine months ended September 30, 2025, license revenue decreased $1,342,873 or 32% to $2,822,796 from $4,165,669 in the corresponding period in 2024, due to the ramp up of BIO-key EMEA selling only BIO-key product which has been accelerating in 2025. 

    For the
   nine months ended 
   September 30, 2025, hardware sales increased 117% to $1,168,2697 from $537,562 in the corresponding period in 
   2024. The increase was due to several long-term and new customers expanding their purchase of biometric cybersecurity solutions combined with selling some of fully reserved inventory initially for the African project.

Costs of goods sold

For the nine months ended September 30, 2025, cost of service decreased $25,810 or