Company: BKYI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026549
Chunk: 34

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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 net of allowances for credit losses 
        
       $
       983,534

       $
       718,229

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

       5. 
       SHARE-BASED COMPENSATION 

   The following table presents share-based compensation expenses included in the Company’s unaudited condensed interim consolidated statements of operations:

        Three Months Ended June 30, 

        2025 

        2024 

        Selling, general and administrative 
        
       $
       17,715

       $
       39,383

        Research, development and engineering 

       4,122

       9,388

       $
       21,837

       $
       48,771

        Six Months Ended June 30, 

        2025 

        2024 

        Selling, general and administrative 
        
       $
       62,546

       $
       87,025

        Research, development and engineering 

       11,779

       18,539

       $
       74,325

       $
       105,564

       6. 
       INVENTORY 

   Inventory is stated at the lower of cost, determined on a first in, first out basis, or realizable value. The Company periodically evaluates inventory items and establishes reserves for obsolescence accordingly. The Company also reserves for excess quantities, slow moving goods, and for other impairment of value based upon assumptions of future demand and market conditions. The reserve on inventory is due to slow moving inventory purchased for projects in Nigeria, and slow-moving inventory. The Company has been selling units in small quantities and continues to explore other markets and opportunities to sell the product. Inventory is comprised of the following as at  June 30, 2025 and  December 31, 2024:

        June 30, 

        December 31, 

        2025 

        2024 

        Finished goods 
        
       $
       3,761,329

       $
       4,098,513

        Fabricated assemblies 

       53,289

       53,289

        Reserve on finished goods 

       (3,496,080
       )

       (3,773,495
       )

        Total inventory 
        
       $
       318,538

       $
       378,307

       11

   7.