Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 771

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1
Chunk 771
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 respective strength of the financial institutions. The Company was not in excess of coverage at  December 31, 2024 and  December 31, 2023. The Company has not incurred any losses on these accounts.
    
   The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances.
    
   For the year ended  December 31, 2024 one customer accounted for 24% of total revenue and 4% of accounts receivable. For the year ended  December 2023, three customers accounted for 34% of total revenue.
    
   At  December 31, 2024, two customers accounted for 36% of the total accounts receivable. At  December 31, 2023, three customers accounted for 66% of total accounts receivable.

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   NOTE E—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 in 2023 and 2024 is due to slow moving inventory purchased for projects in Nigeria and other slow moving inventory. The Company is looking into other markets and opportunities to sell or return the product. The total inventory below accounts for selective product that ships quarterly to customers worldwide and through Amazon.
    
   Inventory is comprised of the following as of  December 31:

       2024    2023  
         
 Finished goods  $4,098,513  $4,373,056 
 Fabricated assemblies   53,289   59,184 
 Reserve on finished goods   (3,773,495)  (3,986,500)
 Total inventory  $378,307  $445,740 

   NOTE F—EQUIPMENT AND LEASEHOLD IMPROVEMENTS
    
   Equipment and leasehold