2024 Q1 - Quarterly Report

TableofContents U.S.SECURITIESANDEXCHANGECOMMISSION WASHINGTON,D.C.20549 FORM10-Q oQUARTERLYREPORTUNDERSECTION13OR15(D)OFTHESECURITIESEXCHANGEACTOF1934 ForthequarterlyperiodendedMarch31,2024or ☐TRANSITIONREPORTUNDERSECTION13OR15(D)OFTHEEXCHANGEACT FortheTransitionPeriodfromtoCommissionfilenumber1-13463 BIO-KEYINTERNATIONAL,INC. (ExactNameofRegistrantasSpecifiedinItsCharter) DELAWARE41-1741861 (StateorOtherJurisdictionofIncorporationofOrganization)(IRSEmployerIdentificationNumber) 101CRAWFORDSCORNERROAD,SUITE4116,HOLMDEL,NJ07733 (AddressofPrincipalExecutiveOffices)(ZipCode) (732)359-1100 (Registrant’stelephonenumber,includingareacode)SecuritiesregisteredpursuancetoSection12(b)oftheAct: TitleofeachclassTradingSymbolNameofeachexchangeonwhichregistered CommonStock,parvalue$0.0001pershare BKYINasdaqCapitalMarket IndicatebycheckmarkwhethertheRegistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐ IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐ Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,smallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany,”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct. Largeacceleratedfiler☐Acceleratedfiler☐ Non-acceleratedfiler☒SmallerReportingCompany☒ Emerginggrowthcompany☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐ Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedbyrule12b-2oftheExchangeAct)Yes☐No☒ NumberofsharesofCommonStock,$.0001parvaluepershare,outstandingasofJune12,2024is1,814,228 BIO-KEYINTERNATIONAL,INC.ANDSUBSIDIARIESINDEX PARTI.FINANCIALINFORMATION3 Item1—FinancialStatements: CondensedConsolidatedBalanceSheetsasofMarch31,2024(unaudited)andDecember31,20233 CondensedConsolidatedStatementsofOperationsandComprehensiveLossforthethreemonthsendedMarch31,4 2024and2023(Unaudited) CondensedConsolidatedStatementsofStockholders’EquityforthethreemonthsendedMarch31,2024and5 2023(Unaudited) CondensedConsolidatedStatementsofCashFlowsforthethreemonthsendedMarch31,2024and7 2023(Unaudited) NotestoCondensedConsolidatedFinancialStatements9 Item2—Management’sDiscussionandAnalysisofFinancialConditionsandResultsofOperations.17 Item3—QuantitativeandQualitativeDisclosuresaboutMarketRisk.23 Item4—ControlsandProcedures.23 PARTII.OTHERINFORMATION24 Item1—LegalProceedings.24 Item1A—RiskFactors.24 Item2—UnregisteredSalesofEquitySecuritiesandUseofProceeds.24 Item3—DefaultsuponSeniorSecurities.24 Item4—MineSafetyDisclosures.24 Item5—OtherInformation.24 Item6—Exhibits.24 Signatures25 PARTI--FINANCIALINFORMATION ITEM1.FINANCIALSTATEMENTS BIO-KEYINTERNATIONAL,INC.ANDSUBSIDIARIESCONDENSEDCONSOLIDATEDBALANCESHEETS March31,2024 December31,2023 (Unaudited) ASSETSCashandcashequivalents $690,449 $511,400 Accountsreceivable,net 701,776 1,201,526 Duefromfactor 8,250 99,320 Inventory 440,194 445,740 Prepaidexpensesandother 427,685 364,171 Totalcurrentassets 2,268,354 2,622,157 Equipmentandleaseholdimprovements,net 198,238 220,177 Capitalizedcontractcosts,net 349,145 229,806 Operatingleaseright-of-useassets 23,220 36,905 Intangibleassets,net 1,329,985 1,407,990 Totalnon-currentassets 1,900,588 1,894,878 TOTALASSETS $4,168,942 $4,517,035 LIABILITIESAccountspayable $1,212,071 $1,316,014 Accruedliabilities 1,189,520 1,305,848 Governmentloan–BBVABank,currentportion 135,835 138,730 Deferredrevenue,current 755,405 414,968 Operatingleaseliabilities,currentportion 23,797 37,829 Totalcurrentliabilities 3,316,628 3,213,389 Deferredrevenue,longterm 143,727 28,296 Deferredtaxliability 22,998 22,998 Governmentloan–BBVABank–netofcurrentportion 149,861 188,787 Totalnon-currentliabilities 316,586 240,081 TOTALLIABILITIES 3,633,214 3,453,470 CommitmentsandContingenciesSTOCKHOLDERS’EQUITY Commonstock—authorized,170,000,000shares;issuedandoutstanding;1,814,414and1,032,777of$.0001parvalueatMarch31,2024andDecember31,2023,respectively 181 103 Additionalpaid-incapital 126,092,496 126,047,851 Accumulatedothercomprehensiveloss (39,454) 22,821 Accumulateddeficit (125,517,495) (125,007,210) TOTALSTOCKHOLDERS’EQUITY 535,728 1,063,565 TOTALLIABILITIESANDSTOCKHOLDERS’EQUITY $4,168,942 $4,517,035 AllBIO-keysharesissuedandoutstandingforallperiodsreflectBIO-key’s1-for-18reversestocksplit,whichwaseffectiveDecember21,2023. Seeaccompanyingnotestothecondensedconsolidatedfinancialstatements. 3 BIO-KEYINTERN