Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 94

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1A
Chunk 94
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   NOTE R—EARNINGS PER SHARE (EPS)     
    
   Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares, and they were also excluded from diluted earnings per share due to anti-dilution:

       Years ended December 31,  
   2024    2023  
         
 Stock options   3,007   9,266 
 Warrants   2,770.493   270,672 
 Total   2,773,500   279,938 

   NOTE S—QUARTERLY FINANCIAL DATA (UNAUDITED AND RESTATED)
    
   The Company is providing restated quarterly unaudited consolidated financial information for interim periods occurring within the year ended  December 31, 2023.    
    
   The need for the restatement arose out of the results of certain financial analysis the Company performed in the course of preparing its year-end 2023 consolidated financial statements. In the course of the audit of the Company’s consolidated financial statements for the fiscal year ended  December 31, 2023, the Company determined that certain errors were made which require the restatement of the Company’s previously issued financial statements for the interim periods occurring within the year ended  December 31, 2023. These errors resulted in the overstatement of accounts receivable and revenue, understatements in certain allowances for accounts receivable and certain reserves for inventory, and an understatement of net loss and total stockholders’ equity which errors  may also impact other amounts included in the financial statements. The Company attributes the errors principally to a material weakness in internal controls over the recording and processing of revenues, allowances for accounts receivable and certain reserves for inventory, which the Company worked to remediate in 2024. We have put newly trained management in control of our EMEA invoice processing and revenue recognition process.  Additionally, we have added more inventory analysis in our quarterly closing process.
    
   The restated consolidated balance sheet line items for the first, second and third fiscal quarters of 2023 are as follows:

           Originally Reported            Adjustment           Restated     
  Three Months Ended  Six Months Ended  Nine Months Ended  Three Months Ended  Six Months Ended  Nine Months Ended  Three Months Ended  Six Months Ended