Company: BKYI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001437749-25-035227
Chunk: 47

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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 Total operating lease liabilities  $55,489  $73,636 
         
 Weighted average remaining lease term (in years) – operating leases   1.92   2.67 
 Weighted average discount rate – operating leases   5.50%  5.50%

 Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2025 and 2024:  $35,397  $40,622 

   Maturities of operating lease liabilities were as follows as of  September 30, 2025:

     2025 (3 months remaining)  $7,258 
 2026   29,267 
 2027   22,477 
 Total future lease payments  $59,002 
 Less: imputed interest   (4,569)
 Total  $54,433 

    10.  NOTES PAYABLE 

   Note Purchase Agreement dated  June 24, 2024
    
   On  June 24, 2024, the Company entered into and closed a note purchase agreement with Streeterville Capital, LLC (the "Lender") which provided for the issuance of a $2,360,000 principal amount senior secured promissory note (the “2024 Note”). The 2024 Note carries an original issue discount of $350,000 and the Company agreed to pay $10,000 to the lender (the "Lender") to cover its transaction costs, which were deducted from the proceeds of the 2024 Note resulting in a total of $2,000,000 being funded to the Company at closing. The proceeds were used for general working capital.
     The principal amount of the 2024 Note was due 18 months following the date of issuance. Interest under the 2024 Note accrued at a rate of nine percent (9%) per annum. All repayments of principal due under the 2024 Note were subject to an exit fee of seven percent (7%) of the principal amount being repaid (the “Exit Fee”). Commencing six months after the date of issuance of the 2024 Note (the “Redemption Start Date”), Lender has the right to redeem up to $270,000 of principal amount under the 2024 Note each month which amount plus the Exit Fee will be due and payable three (3) business days after Lender’s delivery of