Company: BKYI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026549
Chunk: 37

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 37
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 paid for amounts included in the measurement of operating lease liabilities for the six months ended June 30, 2025 and 2024: 
        
       $
       23,928

       $
       40,622

   Maturities of operating lease liabilities were as follows as of  June 30, 2025:

        2025 (6 months remaining) 
        
       $
       14,237

        2026 

       29,267

        2027 

       22,477

        2028 

       -

        Total future lease payments 
        
       $
       65,981

        Less: imputed interest 

       (5,152
       )

        Total 
        
       $
       60,829

       10. 
       NOTE PAYABLE 

   Note Purchase Agreement dated  June 24, 2024
    
   On  June 24, 2024, the Company entered into and closed a note purchase agreement (the “Purchase Agreement”) which provided for the issuance of a $2,360,000 principal amount senior secured promissory note (the “2024 Note”). The 2024 Note carries an original issue discount of $350,000 and the Company agreed to pay $10,000 to the lender (the "Lender") to cover its transaction costs, which were deducted from the proceeds of the 2024 Note resulting in a total of $2,000,000 being funded to the Company at closing. The proceeds will be used for general working capital.
     The principal amount of the 2024 Note is due 18 months following the date of issuance. Interest under the 2024 Note accrues at a rate of nine percent (9%) per annum. All repayments of principal due under the 2024 Note will be subject to an exit fee of seven percent (7%) of the principal amount being repaid (the “Exit Fee”). Commencing six months after the date of issuance of the 2024 Note (the “Redemption Start Date”), Lender shall have the right to redeem up to $270,000 of principal amount under the 2024 Note each month which amount plus the Exit Fee will be due and payable three (3) business days after Lender’s delivery of a redemption notice to the Company. At the end of each month following the Redemption Start Date, if the Company has not reduced the outstanding balance under the 2024 Note by