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

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 25
---
 fees 

     5,189,370

     4,342,010

     847,360

     20
     %

      Hardware 

     631,695

     1,194,010

     (562,315
     )

     -47
     %

      Total Revenue 
      
     $
     6,929,571

     $
     7,754,905

     $
     (825,334
     )

     -11
     %

      Costs and other expenses 

      Services 
      
     $
     396,274

     $
     861,936

     $
     (465,662
     )

     -54
     %

      License fees 

     589,505

     1,174,919

     (585,414
     )

     -50
     %

      Hardware 

     516,611

     700,231

     (183,620
     )

     -26
     %

      Hardware reserves 

     (213,005
     )

     3,586,500

     (3,799,505
     )

     -106
     %

      Total Costs and other expenses 
      
     $
     1,289,385

     $
     6,323,586

     $
     (5,034,201
     )

     -80
     %

Revenues

Revenue decreased $825,334 or 11% to $6,929,571 in 2024 as compared to $7,754,905 in 2023.  This reduction was due largely to our exit from our distribution agreement with Swivel Secure Limited (SLL) and transition to selling BIO-key branded solutions in the EMEA market and to the factors discussed below. 

For the years ended December 31, 2024, and 2023, service revenues included approximately $1,017.000 and $1,193,000, respectively, of recurring maintenance and support revenue, and approximately $91,000 and $1,026,000, respectively, of non-recurring custom services revenue.  Recurring service revenue decreased 15% in 2024 due to the loss of one large customer service agreement. Non-recurring custom services decreased 91% in 2024 due to a large product customization and upgrade for a Swivel Secure customer without a similar customization in 2024.  We expect the service fees to increase from the