Company: BKYI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026549
Chunk: 52

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 52
---
103
     %

      Interest expense 

     (61,548
     )

     (10,267
     )

     (51,281
     )

     -499

      Other income (expense) 
      
     $
     (179,453
     )
      
     $
     (14,216
     )
      
     $
     (165,237
     )

     -1162
     %

Other income (expense) for the six months ended June 30, 2025 consisted of interest income of $2,095, interest expense of $61,548 on the note payable and the government loan through the BBVA bank, and a loan fee amortization amount of $60,000. Other income (expense) for the six months ended June 30, 2024 consisted of interest income of $51 and interest expense of $10,267 consisting of approximately $2,700 on the government loan through the BBVA bank and the balance for interest accrued on the 2024 Note, as defined below, and a loan fee amortization amount of $4,000.

       21

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

Operating activities overview

      Net cash used in operations during the six months ended June 30, 2025 was $1,715,324. Items of note included: 

      ● 
      Net positive cash flows related to adjustments for non-cash expenses of approximately $592,000.  

      ● 
      Net positive cash flows related to inventory, accounts payable, and deferred revenue of approximately $132,000.  

      ● 
      Negative cash flows related to changes in accounts receivable and allowance, amount due from factor accounts, prepaid expenses, and accrued liabilities of approximately $535,000, due to working capital management. 

Financing activities overview

Net cash provided by financing activities during the six months ended June 30, 2025 was $3,493,505 which included $3,813,057 of proceeds from the exercise of warrants, and $876 from the purchase of shares in the Employee Stock Purchase Plan, which was offset by repayment of $71,645 of the government loan through the BBVA bank and $248,783 for offering costs. 

Investing activities overview

Net cash used in investing activities during the six months ended June 30, 2025 consisted of capital expenditures was $6,048 for