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

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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1,251 shares were issued to employees which resulted in a $876 non-cash compensation expense for the Company. On  June 28, 2024, 1,390 shares were issued to employees which resulted in a $456 non-cash compensation expense for the Company.
    
   Issuances of Restricted Stock
    
   Restricted stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. The fair value of nonvested shares is determined based on the market price of the Company's common stock on the grant date. Nonvested stock is expensed ratably over the term of the restriction period.
    
   During the six-month periods ended  June 30, 2025 and 2024, the Company issued 2,500 and 0 shares of restricted common stock, respectively, to certain employees and directors. These shares vest in equal annual installments over a three-year period from the date of grant and had a fair value on the date of issuance of $2,525 and $0, respectively.
    
   During the six-month periods ended  June 30, 2025 and 2024, 7,572 and 316 shares of restricted common stock were forfeited, respectively.
    
   Share based compensation for the six-month periods ended  June 30, 2025 and 2024, was $52,488 and $56,793, respectively.

       14

   Issuances to Directors
    
   During the six-month periods ended  June 30, 2025, and 2024, the Company issued 8,913 and 4,287, shares of common stock to its directors in lieu of payment of board and committee fees valued at $9,002 and $9,003, respectively. 
    
   Employees’ exercise options
    
   During the six-month periods ended  June 30, 2025 and 2024, no employee stock options were exercised.
    
   3. Warrants
    
   On  January 15, 2025, the Company entered into a warrant exercise agreement (the "Warrant Exercise Agreement") with an existing institutional investor (the "Investor") to exercise certain outstanding warrants to purchase an aggregate of 2,061,112 shares of the Company’s common stock at an exercise price of $1.85 per share which