Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 276

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 1C
Chunk 276
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3 consolidated financial statements. In the course of the audit of the Company’s consolidated financial statements for the fiscal year ended  December 31, 2023, the Company determined that certain errors were made which require the restatement of the Company’s previously issued financial statements for the interim periods occurring within the year ended  December 31, 2023. These errors resulted in the overstatement of accounts receivable and revenue, understatements in certain allowances for accounts receivable and certain reserves for inventory, and an understatement of net loss and total stockholders’ equity which errors  may also impact other amounts included in the financial statements. The Company attributes the errors principally to a material weakness in internal controls over the recording and processing of revenues, allowances for accounts receivable and certain reserves for inventory, which the Company worked to remediate in 2024. We have put newly trained management in control of our EMEA invoice processing and revenue recognition process.  Additionally, we have added more inventory analysis in our quarterly closing process.
    
   The restated consolidated balance sheet line items for the first, second and third fiscal quarters of 2023 are as follows:

           Originally Reported            Adjustment           Restated     
  Three Months Ended  Six Months Ended  Nine Months Ended  Three Months Ended  Six Months Ended  Nine Months Ended  Three Months Ended  Six Months Ended  Nine Months Ended 
   March 31, 2023    June 30, 2023    September 30, 2023    March 31, 2023    June 30, 2023    September 30, 2023    March 31, 2023    June 30, 2023    September 30, 2023  

 Accounts receivable, net  $3,362,203  $3,178,785  $2,799,218  $(900,000) $(1,100,000) $(1,300,000) $2,462,203  $2,078,785  $1,499,218 
 Inventory   4,427,815   4,384,098   4,289,213   (500,000)  (1,500,000)  (2,500,000)  3,927,815