Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 775

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1
Chunk 775
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 Boumarang being an early-stage pre-revenue company. The lack of control and marketability discounts were based on published studies and transfer restrictions contained in Boumarang’s corporate governance documents. 
    
        Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Boumarang Shares  may fluctuate from period to period and the fair value of the Boumarang Shares  may differ significantly from the values that would have been used had a ready market existed for such shares and  may differ materially from the values that the Company  may ultimately realize. The early-stage pre-revenue status and unproven technology of Boumarang raise uncertainties that could impact the recoverability of the investment in the Boumarang Shares.       
        ASC 321-10-35 requires annual impairment testing for equity securities without readily determinable fair values.  

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   NOTE I—ACCRUED LIABILITIES
    
   Accrued liabilities consisted of the following as of  December 31:

       2024    2023  
         
 Compensation  $549,217  $326,007 
 Compensated absences   299,152   327,252 
 Accrued legal and accounting fees   161,000   264,976 
 Taxes   55,986   152,986 
 Employee expenses reimbursement   154,209   124,209 
 Sales tax payable   18,147   19,282 
 Other   41,021   91,136 
         
 Total  $1,278,732  $1,305,848 

         For the years ended 12/31/2024 from 12/31/2023, there were increases in compensation costs related to commission payments due of approximately, $223,000 and increases in employee expenses reimbursement due to timing of reimbursements of approximately $30,000. These increases were offset by decreases for the years ended 12/31/2024 from 12/31/2023 of approximately $28,000 for a lower vacation time accrual, approximately $104,000 for lower legal and accounting fees, approximately $97,000 for taxes, approximately $1,135 for sales tax, and approximately $50,000 for miscellaneous accrued expenses.

   NOTE J—NOTE PAYABLE