Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 573

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 9C
Chunk 573
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  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
    
   Securities Purchase Agreement dated  June 24, 2024
    
   On  June 24, 2024, the Company entered into and closed a note purchase agreement (the “Purchase Agreement”) which provided for the issuance of a $2,360,000 principal amount senior secured promissory note (the “2024 Note”). The 202