Company: BKYI
Filing Date: 2025-04-25
Form Type: S-1
Source: 0001437749-25-013165
Chunk: 13

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-25
Form: S-1
Chunk 13
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 common stock offered hereby are exercised, we will receive aggregate gross proceeds of $6,647,086.20.

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On January 15, 2025, we entered into a warrant exercise agreement (the “Warrant Exercise Agreement”) with the selling stockholder 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 13, 2024 (the “Existing Warrants”). The issuance of the shares of the Company’s common stock underlying the Existing Warrants was registered pursuant to the registration statement on Form S-1 filed on October 11, 2024 (File No. 333-282618).

In consideration for the exercise of the Existing Warrants, subject to compliance with the beneficial ownership limitations included in the Existing Warrants, the selling stockholder received new unregistered Series A warrants to purchase up to an aggregate of 1,545,834 shares of the Company’s common stock (the “Series A Warrants”) and new unregistered Series B warrants to purchase up to an aggregate of 1,545,834 shares of the Company’s common stock (the “Series B Warrants”, and together with the “Series A Warrants, the “New Warrants”).

The New Warrants have substantially the same terms, were immediately exercisable at an exercise price of $2.15 per share and will expire five years from the date of issuance. The Company agreed to file a resale registration statement covering the public resale of the shares of the Company’s common stock issuable upon exercise of the New Warrants with the SEC, and to use commercially reasonable efforts to have such resale registration statement declared effective by the SEC within 90 calendar days following the date of the Warrant Exercise Agreement. The New Warrants each include a beneficial ownership limitation that prevents the selling stockholder from beneficially owning more than 4.99% of the Company’s outstanding common stock at any time.

The gross proceeds to the Company from the exercise of the Existing Warrants was approximately $1.9 million, prior to deducting placement agent fees and estimated offering expenses. The closing of the offering occurred on September 13, 2024. The Company intends to use the net proceeds for working capital and general corporate purposes, including repayment of a portion of the Company’s outstanding secured note.

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