Company: BKYI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001437749-25-035227
Chunk: 43

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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   Accounts receivable at  September 30, 2025 and  December 31, 2024 consisted of the following: 

       September 30,    December 31,  
   2025    2024  
         
 Accounts receivable  $1,342,757  $1,351,482 
 Allowance for credit losses   (383,254)  (633,253)
 Accounts receivable, net of allowances for credit losses  $959,503  $718,229 

   Bad debt expenses are recorded in selling, general, and administrative expense.

    5.  SHARE-BASED COMPENSATION 

   The following table presents share-based compensation expenses included in the Company’s unaudited condensed interim consolidated statements of operations:

       Three Months Ended September 30,  
   2025    2024  
         
 Selling, general and administrative  $24,920  $53,117 
 Research, development and engineering   6,740   12,936 
  $31,660  $66,053 

       Nine Months Ended September 30,  
   2025    2024  
         
 Selling, general and administrative  $87,466  $140,142 
 Research, development and engineering   18,519   31,475 
  $105,985  $171,617 

       11

    6.  INVENTORY 

   Inventory is stated at the lower of cost, determined on a first in, first out basis, or net 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 is due to slow moving inventory purchased for projects in Nigeria, and slow-moving inventory elsewhere. The Company has been selling these units in small quantities and continues to explore other markets and opportunities to sell the product. Inventory is comprised of the following as at  September 30, 2025 and  December 31, 2024:

       September 30,    December 31,  
   2025    2024  
         
 Finished goods  $3,605,342