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bkyi20241231_10k.htm 0001019034 BIO KEY INTERNATIONAL INC false --12-31 FY 2024 We take a defense-in-depth approach, leveraging multiple, layered security measures, to protect our data, our customers data, our infrastructure, and our employees.
As of April 21, 2025 the registrant had 5,814,041 shares of common stock outstanding.
Until the fourth quarter of 2024, Swivel Secure Europe was the exclusive distributer of the AuthControl Sentry, AuthControl Enterprise, and AuthControl MSP product line in Europe, Middle East, and Africa, excluding the United Kingdom.
Swivel Secure, now operates under the name BIO-key EMEA, maintains a direct sales force with offices in Madrid, Spain and Lisbon, Portugal, and sells only BIO-key hardware, software and services.
On November 27, 2024, we commenced a collaboration with Fiber Food Systems, Inc., an early-stage company engaged in developing global food security solutions.
Under this arrangement, we are working to explore IAM use cases across the food industry.
As part of this agreement, we acquired shares of Boumarang, Inc.
Boumarang is developing sustainable, AI-driven, hydrogen-powered, long-range drone technology.
We are working with Boumarang and its partners to integrate our biometric technology into autonomous systems, targeting applications across aerospace and other industries.
We expect that these initiatives have the potential to create new commercial opportunities in future periods.
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As of June 4, 2024 the registrant had 1,814,228 shares of common stock outstanding.
This Comprehensive Form 10-K contains our audited financial statements for the fiscal year ended December 31, 2023 and 2022 as well as restatement of the following previously filed periods: (i) our unaudited consolidated financial statements covering the quarterly reporting periods during fiscal year 2023, consisting of the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023.
Restatement Background As previously disclosed, on April 16, 2024, the Audit Committee (the Audit Committee ) of the Board of Directors of the Company determined, after consultation with the Company s management and its independent auditors, that the Company made certain errors in the manner in which it recognized revenue generated by its European subsidiary, Swivel Secure Europe, SA, in the first quarter of 2023.
As a result, the Company concluded that its previously issued consolidated financial statements for the three months ended March 31, 2023, the three and six months ended June 30, 2023, and the three and nine months ended September 30, 2023 included in the Company s previously filed Quarterly Reports on Form 10-Q for such periods (collectively, the Restatement Periods ) should be restated to correct historical errors related principally to the of recognition of the Company s revenues, allowances for accounts receivable, and certain reserves for inventory.
The need for the restatement arose out of the results of certain financial analysis the Company performed in the course of preparing its fiscal year-end 2023 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 Restatement Periods.
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 an overstatement of total stockholders equity which errors may also impact other amounts included in the financial statements for the Restatement Periods.
The Company principally attributes the errors 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 is working to remediate in fiscal year 2024.
Items Restated in this Form 10-K This Form 10-K for the fiscal year ended December 31, 2023 includes the restatement of consolidated financial statements for the quarterly and year-to-date periods in fiscal year which are disclosed in Note U to the consolidated financial statements.
The Company has not filed, and does not intend to file, amendments to the previously filed Quarterly Reports on Form 10-Q for any of the quarters for the year ended December 31, 2023.