Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 493

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 9
Chunk 493
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  (1,102,805)
         
 Total  $140,198  $220,177 

   Depreciation was $93,026 and $75,136 for 2024 and 2023, respectively. Amounts are recorded in selling, general, and administrative expense as well as in cost of services. Additions for the years ending 12/31/2024 and 12/31/23 were $13,047 and $1,000, respectively.  There have been no write-offs or adjustments for the years ending 12/31/2024 and 12/31/2023.

   NOTE G—INTANGIBLE ASSETS AND GOODWILL
    
   Intangible assets consisted of the following as of  December 31:

       2024    2023  
         
 Trade name  $130,000  $130,000 
 Proprietary software   420,000   420,000 
 Customer relationships   1,692,860   1,692,860 
 Patents and patents pending   365,080   365,080 
   2,607,940   2,607,940 

 Less accumulated amortization   (1,510,310)  (1,199,950)
         
 Total  $1,097,630  $1,407,990 

       55

   Aggregate amortization expense for 2024 and 2023 was approximately $310,000 and $355,000, respectively. Estimated minimum amortization expense based on straight line amortization of the software license rights for each of the next five years and thereafter approximates the following:

     Years ending December 31     
 2025  $267,000 
 2026  $224,000 
 2027  $223,000 
 2028  $141,000 
 2029  $117,000 
 Thereafter  $125,630 
 Total  $1,097,630 

   Goodwill
    
   The Company concluded the amounts in goodwill had been fully impaired and accordingly wrote-off the entire balance in full for the Swivel Secure Europe LTD acquisition, due the reversal of the earnout payable based on the 2022 revenue achievement as at  December 31, 2022.

   NOTE H -