Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 764

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1
Chunk 764
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 receivable, net of allowances for doubtful accounts  $718,229  $1,201,526 

   Bad debt expenses (if any) are recorded in selling, general, and administrative expense.
    
   The allowance for doubtful accounts for the years ended  December 31, 2024 and 2023 is as follows:

       Balance at Beginning of Year    Charged to Costs and Expenses    Deductions from Reserves    Balance at End of Year  
                 
 Year ended December 31, 2024 Allowance for Doubtful Accounts  $1,005,785  $16,265  $(388,797) $633,253 
 Year ended December 31, 2023 Allowance for Doubtful Accounts  $573,785  $750,000  $(318,000) $1,005,785 

   8. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization
    
   Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method.
    
   The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows:

       Years  
 Equipment and leasehold improvements    
 Equipment  3 - 5 
 Furniture and fixtures  3 - 5 
 Software  3 
 Leasehold improvements   life or lease term  

   Intangible assets other than goodwill consist of patents, trade name, proprietary software, and customer relationships. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. Trade names, proprietary software, and customer relationships are amortized over the economic useful life.
    
   9. Impairment or Disposal of Long Lived Assets, including Intangible Assets
    
   The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset  may not be recoverable. Recoverability of these assets is measured by comparison of