Company: BKYI
Filing Date: 2025-06-27
Form Type: DEF 14A
Source: 0001437749-25-021438
Chunk: 38

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-06-27
Form: DEF 14A
Chunk 38
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3 plan” or the “plan”), subject to approval by our stockholders, to increase the number of shares available for issuance by an additional 700,000 shares. We refer to this amendment as the “plan amendment” or “amended plan” and the revised plan incorporating the plan amendment as the “amended plan” throughout this proxy statement.

Our continuing ability to offer equity incentive awards under the 2023 plan is critical to our ability to attract and retain qualified individuals to perform services, provide incentive compensation for such individuals in a form that is linked to the growth and profitability of our company and increases in stockholder value, and provide opportunities for equity participation that align the interests of recipients with those of our stockholders.

The board of directors is asking our stockholders to approve the amended plan in order to increase the number of shares available thereunder. If stockholders do not approve the plan amendment, then the current plan, as currently in effect, will remain in effect until it terminates in accordance with its terms.

Reasons Why You Should Vote in Favor of the Plan Amendment

The board of directors recommends a vote “FOR” the approval of the plan amendment because the board of directors believes the proposed plan amendment is in the best interests of the Company and its stockholders for the following reasons:

| ● | Retain the ability to provide equity-based compensation to our employees. As of June 20, 2025, there were only 85,497 shares of common stock available for issuance under the 2023 plan. Unless stockholders approve the plan amendment, we will have very limited ability to issue any form of equity-based compensation to our employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| ● | Aligns directors, employee and stockholder interests. We currently provide long-term incentives in the form of stock option grants and restricted stock to our non-employee directors, executive officers, and other key employees. We typically make grants to new employees upon commencement of employment. We believe that our stock-based compensation program helps align the interests of our directors, executive officers and other key employees with our stockholders. We believe that our long-term stock-based incentives help promote long-term retention of our employees and encourage ownership of our common stock. If the plan amendment is approved, we will be able to maintain our means of aligning the interests of our directors, executive officers and other key employees with the interests of our stockholders. |
| ● | Attracts and retains talent. Talented, motivated and effective directors, executives and employees are essential to executing our