Company: BKYI
Filing Date: 2025-06-27
Form Type: DEF 14A
Source: 0001437749-25-021438
Chunk: 40

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-06-27
Form: DEF 14A
Chunk 40
---
 the maximum number of shares of common stock reserved for issuance under the amended plan will be equal to the sum of 333,334 shares initially available under the plan plus 700,000 additional shares. As of June 20, 2025, 247,837 shares of common stock were subject to outstanding awards under the 2023 plan, and 85,497 shares of common stock remained available for issuance under the 2023 plan.

In determining the number of shares of common stock available under the amended plan, the board of directors and compensation committee considered a number of factors, which are discussed further below, including:

| ● | Shares currently available under the 2023 plan and total outstanding equity-based awards and how long the shares available are expected to last; |
| ● | Historical equity award granting practices, including our three-year average share usage rate (commonly referred to as “burn rate”);             |
| ● | The number of outstanding shares of common stock; and                                                                                            |
| ● | Potential dilution.                                                                                                                              |

Shares Available and Outstanding Equity Awards

While the use of long-term incentives, in the form of equity awards, is an important part of our compensation program, we are mindful of our responsibility to our stockholders to exercise judgment in the granting of equity awards. In setting the number of shares of common stock available for issuance under the amended plan, the board of directors and compensation committee also considered shares remaining available under the 2023 plan and total outstanding equity awards and how long the shares available under the 2023 plan are expected to last. To facilitate approval of the plan amendment, set forth below under “—Potential Dilution” is certain information about our shares of common stock that may be issued under our equity compensation plans as of June 20, 2025.

Historical Equity Award Granting Practices

In setting the number of shares of common stock authorized for issuance under the amended plan, the board of directors and compensation committee also considered the historical number of equity awards granted under the 2023 plan and other equity compensation plans in each of the last three years. The following table sets forth information regarding awards granted and earned and the annual burn rate for each of the last three years. The only equity awards granted during the last three fiscal years were stock options and restricted stock awards.

|                                                                     |     | 2024 |           |   |     | 2023 |         |   |     | 2022 |         |   |
| Stock options granted                                               |     |      |