Company: BKYI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001437749-25-017209
Chunk: 48

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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356 on the government loan through the BBVA bank net of interest.

       18

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

Operating activities overview

      Net cash used in operations during the three months ended March 31, 2025 was $835,312. Items of note included: 

      ● 
      Net positive cash flows related to adjustments for non-cash expenses of approximately $322,000.  

      ● 
      Net positive cash flows related to inventory, amount due from factor, prepaid expenses, and deferred revenue of approximately $174,000.  

      ● 
      Negative cash flows related to changes in accounts receivable, accounts payable, and accrued liabilities of approximately $583,000, due to working capital management. 

Financing activities overview

Net cash provided by financing activities during the three months ended March 31, 2025 was $3,529,227 which included $3,813,057 of proceeds from the exercise of warrants, which was offset by repayment of $35,047 of the government loan through the BBVA bank and $248,783 for offering costs. 

Investing activities overview

Net cash used in investing activities during the three months ended March 31, 2025 consisted of capital expenditures was $4,570.

Liquidity and Capital Resources

Since our inception, our capital needs have been met through proceeds from the sale of equity and debt securities, and revenue. We expect capital expenditures to be less than $100,000 during the next twelve months.  

The following sets forth our investment sources of capital during the previous two years:

On January 15, 2025, we entered into a warrant exercise agreement with an existing investor (the “Investor”) to exercise certain outstanding warrants to purchase an aggregate of 2,061,112 shares of the Company’s common stock, at an exercise price of $1.85 per share which were originally issued to the Investor on September 12, 2024. In consideration for the exercise of the Existing Warrants, subject to compliance with the beneficial ownership limitations included in the Existing Warrants, the Investor received new warrants to purchase up to an aggregate of 3,091,668 shares of the Company’s Common Stock. The New Warrants have substantially the same terms, are immediately exercisable at an exercise price of $2.15 per share and will expire five years from the date of issuance.