Company: BKYI
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001437749-25-012824
Chunk: 354

Company: BIO KEY INTERNATIONAL INC
Filing Date: 2025-04-23
Form: 10-K
Item: Item 7A
Chunk 354
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 a result, management could not calculate the amount of net operating loss carryforwards that are available to offset future taxable income. We estimate that the potential penalties for non-filing will be minimal due to the losses.  The Company is currently working on the filings and expects to be current by  December 31, 2025.
    
   The Company's subsidiary in Hong Kong has not filed its required returns in several years. Management believes that when the returns are filed, no taxes will be owed due to losses incurred during those periods. As a result, management could not calculate the amount of net operating loss carryforwards are available to offset future taxable income.  We estimate that the potential penalties for non-filing will be minimal due to the losses.  The Company will be working on the filings during 2025 and expects to be current in 2026.
    
   The Company believes it is not subject to any tax audit risk beyond those periods. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense incurred during the years ended  December 31, 2024 and 2023.

   NOTE Q
    
   The Company has established a savings plan under section 401(k) of the Internal Revenue Code. All employees of the Company, after completing one day of service, are eligible to enroll in the 401(k) plan. Participating employees  may elect to defer a portion of their salary on a pre-tax basis up to the limits as provided by the IRS Code. The Company is not required to match employee contributions but  may do so at its discretion. The Company made no matching contributions during the years ended  December 31, 2024 and 2023.  The plan passed its 2023 annual non-discrimination test, and expects to pass the 2024 annual non-discrimination test.

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   NOTE R—EARNINGS PER SHARE (EPS)     
    
   Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares, and they were also excluded from diluted earnings per share due to anti-dilution:

       Years ended December 31,  
   2024    2023  
         
 Stock options   3,007   9,266 
 Warrants