Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 561

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 9C
Chunk 561
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 or whenever events or changes in circumstances indicate that the carrying value  may not be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company’s market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The annual goodwill impairment test will be performed as of  December 31st of each year. Refer Note G for more information regarding the impairment of goodwill in 2022.
    
   Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis.
    
   6. Cash Equivalents
    
   Cash equivalents consist of liquid investments with original maturities of three months or less. At  December 31, 2024 and 2023, cash equivalents consisted of a money market account.

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   7. Accounts Receivable
    
   Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible.
    
   Accounts receivable at  December 31, 2024 and 2023 consisted of the following:

       December 31,  
   2024    2023  
         
 Accounts receivable  $1,351,482  $2,207,311 
 Allowance for doubtful accounts   (633,253)  (1,005,785)
 Accounts receivable, net of allowances for doubtful accounts  $718,229  $1,201,526 

   Bad debt expenses (if any) are recorded in selling, general, and administrative expense.
    
   The allowance for doubtful accounts for the years ended  December 31, 2024 and 2023 is as follows:

       Balance at Beginning