Company: BKYI
Filing Date: 2025-06-27
Form Type: DEF 14A
Source: 0001437749-25-021438
Chunk: 41

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-06-27
Form: DEF 14A
Chunk 41
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 0 |   |     |      |       0 |   |     |      |       0 |   |
| Restricted stock awards granted                                     |     |      |   178,963 |   |     |      |  13,487 |   |     |      |  14,875 |   |
| Weighted average basic common shares outstanding during fiscal year |     |      | 3,715,483 |   |     |      | 502,640 |   |     |      | 450,000 |   |
| Burn rate                                                           |     |      |      4.82 | % |     |      |    2.68 | % |     |      |    3.30 | % |

The board of directors and compensation committee also considered our three-year average burn rate (2022 to 2024) of approximately 3.60%, which is lower than the industry thresholds established by certain major proxy advisory firms.

Based on historical and anticipated granting practices and the recent trading price of our common stock, we expect the additional shares authorized for issuance by the amended plan to cover awards for approximately three years. However, we cannot predict our future equity grant practices, the future price of our shares, or future hiring activity with any degree of certainty at this time, and the shares available for issuance under the amended plan could last for a shorter or longer time.

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Potential Dilution

In setting the number of shares of common stock authorized for issuance under the amended plan, the board of directors and compensation committee also considered the potential dilution (often referred to as overhang) that would result by approval of the amended plan, including the policies of certain institutional investors and major proxy advisory firms. Potential dilution, or overhang, is as set forth in the table below, as of June 20, 2025, assuming approval of the amended plan.

| Options Outstanding as of June 20, 2025                                                                                             |     | Assuming       
 Approval of    
 Plan Amendment |     1,857 |   |
|:------------------------------------------------------------------------------------------------------------------------------------|:----|:---------------|----------:|:--|
| Weighted Average Exercise Price of Options Outstanding                                                                              |     | $              |    144.71 |   |
| Weighted Average Remaining Term of Options Outstanding (in years)                                                                   |     |                |      1.23 |   |
| Shares Underlying Restricted Stock Awards as of June 20,