BIO-key International (BKYI) 10-Q 15 May 19 2019 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 13, 2019
Document Information [Line Items]
Entity Registrant Name	BIO KEY INTERNATIONAL INC
Entity Central Index Key	0001019034
Trading Symbol	bkyi
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		14,081,688
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 459,311	$ 323,943
Accounts receivable, net	740,419	1,574,032
Due from factor	75,824	56,682
Inventory	980,908	998,829
Resalable software license rights	1,125,000	1,125,000
Prepaid expenses and other	175,144	150,811
Total current assets	3,556,606	4,229,297
Resalable software license rights, net of current portion	6,483,406	6,790,610
Equipment and leasehold improvements, net	152,707	148,608
Capitalized contract costs, net	299,398	319,199
Deposits and other assets	8,712	8,712
Operating lease right-of-use assets	568,073	0
Intangible assets, net	194,330	195,906
Total non-current assets	7,706,626	7,463,035
TOTAL ASSETS	11,263,232	11,692,332
LIABILITIES
Accounts payable	472,629	481,269
Accounts payable – related party	133,174	0
Accrued liabilities	577,996	548,232
Deferred revenue	333,240	196,609
Operating lease liabilities, current portion	138,274	0
Total current liabilities	1,655,313	1,226,110
Operating lease liabilities, net of current portion	419,171	0
Total non-current liabilities	419,171	0
TOTAL LIABILITIES	2,074,484	1,226,110
Commitments	0	0
STOCKHOLDERS’ EQUITY
Common stock — authorized, 170,000,000 shares; issued and outstanding; 13,991,688 and 13,977,868 of $.0001 par value at March 31, 2019 and December 31, 2018, respectively	1,399	1,398
Additional paid-in capital	86,125,173	85,599,140
Accumulated deficit	(76,937,824)	(75,134,316)
TOTAL STOCKHOLDERS’ EQUITY	9,188,748	10,466,222
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 11,263,232	$ 11,692,332

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Common stock, shares authorized (in shares)	170,000,000	170,000,000
Common stock, shares issued (in shares)	13,991,688	13,977,868
Common stock, shares outstanding (in shares)	13,991,688	13,977,868
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Revenue	$ 551,623	$ 841,455
Costs and other expenses
Cost of Goods and Services Sold	604,050	1,179,445
Cost of Goods and Services Sold	604,050	1,179,445
Gross Profit (Loss)	(52,427)	(337,990)
Operating Expenses
Selling, general and administrative	1,377,033	1,461,854
Research, development and engineering	374,118	392,154
Total Operating Expenses	1,751,151	1,854,008
Operating loss	(1,803,578)	(2,191,998)
Other income (expenses)
Interest income	70	6
Total Other Income (Expenses)	70	6
Net loss	(1,803,508)	(2,191,992)
Convertible preferred stock dividends		(156,162)
Net loss available to common stockholders	$ (1,803,508)	$ (2,348,154)
Basic & Diluted Loss per Common Share (in dollars per share)	$ (0.13)	$ (0.30)
Weighted Average Shares Outstanding:
Basic & Diluted (in shares)	13,979,318	7,851,514
Service [Member]
Revenues
Revenue	$ 241,610	$ 302,449
Costs and other expenses
Cost of Goods and Services Sold	90,829	154,733
Cost of Goods and Services Sold	90,829	154,733
License [Member]
Revenues
Revenue	83,208	102,719
Costs and other expenses
Cost of Goods and Services Sold	377,216	773,464
Cost of Goods and Services Sold	377,216	773,464
Hardware [Member]
Revenues
Revenue	226,805	436,287
Costs and other expenses
Cost of Goods and Services Sold	136,005	251,248
Cost of Goods and Services Sold	$ 136,005	$ 251,248

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]Series A-1 Convertible Preferred Stock [Member]	Preferred Stock [Member]Series B-1 Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Series A-1 Convertible Preferred Stock [Member]	Series B-1 Convertible Preferred Stock [Member]	Total
Balance (in shares) at Dec. 31, 2017	62,596	105,000	7,691,324			62,596	105,000
Balance at Dec. 31, 2017	$ 6	$ 11	$ 769	$ 80,829,001	$ (67,076,492)			$ 13,753,295
Issuance of common stock for directors’ fees (in shares)			8,421
Issuance of common stock for directors’ fees			$ 1	16,512				16,513
Share-based compensation				(533,421)				(533,421)
Net loss					(2,191,992)			(2,191,992)
Balance (in shares) at Mar. 31, 2018	62,596	44,580	9,493,936
Balance at Mar. 31, 2018	$ 6	$ 5	$ 949	81,639,682	(69,028,467)			12,612,175
Adoption of ASC 606					240,017			240,017
Dividends declared on preferred stock				(156,162)				(156,162)
Conversion of B-1 preferred stock to common stock (in shares)		(60,420)	1,678,334
Conversion of B-1 preferred stock to common stock		$ (6)	$ 168	(162)
Conversion of dividends payable on B-1 preferred stock (in shares)			115,857
Conversion of dividends payable on B-1 preferred stock			$ 11	417,072				417,083
Share-based compensation				533,421				533,421
Balance (in shares) at Dec. 31, 2018			13,977,868
Balance at Dec. 31, 2018			$ 1,398	85,599,140	(75,134,316)			10,466,222
Issuance of common stock for directors’ fees (in shares)			13,820
Issuance of common stock for directors’ fees			$ 1	16,505				16,506
Share-based compensation				509,528				509,528
Net loss					(1,803,508)			(1,803,508)
Balance (in shares) at Mar. 31, 2019			13,991,688
Balance at Mar. 31, 2019			$ 1,399	86,125,173	(76,937,824)			9,188,748
Share-based compensation				$ (509,528)				$ (509,528)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$ (1,803,508)	$ (2,191,992)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation	19,292	21,020
Amortization of intangible assets	3,314	5,655
Amortization of software license rights	281,074	659,414
Amortization of capitalized contract costs	33,510	18,668
Operating leases right-of-use assets	34,864
Stock based directors’ fees	16,505	16,512
Share and warrant-based compensation for employees and consultants	509,528	533,421
Change in assets and liabilities:
Accounts receivable	833,613	2,590,770
Due from factor	(19,142)	55,820
Capitalized contract costs	(13,709)	(144,018)
Inventory	17,921	47,687
Resalable software license rights	26,130	(11,954)
Prepaid expenses and other	(36,928)	(14,221)
Accounts payable	124,534	(246,245)
Accrued liabilities	29,764	(163,343)
Deferred revenue	136,631	(133,427)
Operating lease liabilities	(32,897)
Net cash provided by operating activities	160,496	1,043,767
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of intangible assets	(1,737)
Capital expenditures	(23,391)	(32,857)
Net cash used for investing activities	(25,128)	(32,857)
NET INCREASE IN CASH AND CASH EQUIVALENTS	135,368	1,010,910
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	323,943	288,721
CASH AND CASH EQUIVALENTS, END OF PERIOD	459,311	1,299,631
Cash paid for:
Interest
Noncash Investing and financing activities
Accrual of unpaid preferred stock dividends		156,162
Accounting Standards Update 2016-02 [Member]
Noncash Investing and financing activities
Right-of-use asset addition under ASC 842	602,937
Operating lease liabilities under ASC 842	590,342
Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member]
Noncash Investing and financing activities
Conversion of preferred dividends payable to common stock		417,084
Conversion of Series B-1 Shares into Common Stock [Member]
Noncash Investing and financing activities
Conversion of preferred stock to common stock		$ 6,042,000

Note 1 - Nature of Business and

Note 1 - Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Business Description and Accounting Policies [Text Block]	1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business The Company, founded in 1993, Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not may In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at March 31, 2019 not 10 December 31, 2018, April 1, 2019. Updated Significant Accounting Policies Leases In February 2016, 2016 02, 842 842 12 January 1, 2019 842 no not 842 no not We elected the package of practical expedients as permitted under the transition guidance, which allowed us: ( 1 2 not 3 not In accordance with ASC 842, one not one 842 20 25 2. not Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not For periods prior to the adoption of ASC 842, 842 no The impact of the adoption of ASC 842 As reported Adoption of ASC Balance December 31, 2018 842 - increase (decrease) January 1, 2019 Operating lease right-of-assets $ - $ 602,937 $ 602,937 Prepaid expenses and other $ 150,811 $ (12,595 ) $ 138,216 Total assets $ 11,692,332 $ 590,342 $ 12,282,674 Operating lease liabilities, current portion $ - $ 135,519 $ 135,519 Operating lease liabilities, net of current portion $ - $ 454,823 $ 454,823 Total liabilities $ 1,226,110 $ 590,342 $ 1,816,452 Total liabilities and stockholders’ equity $ 11,692,332 $ 590,342 $ 12,282,674 Recently Issued Accounting Pronouncements In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 Management does not not Reclassification no

Note 2 - Going Concern

Note 2 - Going Concern	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Substantial Doubt about Going Concern [Text Block]	2. GOING CONCERN The Company has incurred significant losses to date, and at March 31, 2019 $77 March 31, 2019, $459,000, $324,000 December 31, 2018. The Company has financed operations in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company estimates that it currently requires approximately $537,000 If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third No not The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying condensed consolidated financial statements do not

Note 3 - Revenue From Contracts

Note 3 - Revenue From Contracts With Customers	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	3. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606 January 1, 2018 not 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three North America South America EMEA* Asia March 31, 2019 License fees $ 14,208 $ - $ - $ 69,000 $ 83,208 Hardware 45,981 400 32,918 147,506 226,805 Support and Maintenance 195,326 2,116 36,418 5,000 238,860 Professional services 750 - - 2,000 2,750 Total Revenues $ 256,265 $ 2,516 $ 69,336 $ 223,506 $ 551,623 North America South America EMEA * Asia March 31, 2018 License fees $ 60,969 $ - $ 41,750 $ - $ 102,719 Hardware 99,590 - 214,776 121,921 436,287 Support and Maintenance 177,916 - 8,713 13,970 200,599 Professional services 101,850 - - - 101,850 Total Revenues $ 440,325 $ - $ 265,239 $ 135,891 $ 841,455 *EMEA – Europe, Middle East, Africa All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. The Company records deferred revenue (contract liability) at time of prepayment until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one Professional Services Professional services revenues consist primarily of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices are determined based on overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within the contracts. The Company considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by the sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit determined to be four Revenue recognized during the three March 31, 2019 $76,000. not $333,240 $196,609 March 31, 2019 December 31, 2018, Transaction Price Allocated to the Remaining Performance Obligations ASC 606 not March 31, 2019. ● The performance obligation is part of a contract that has an original expected duration of one 606 10 50 14. At March 31, 2019 one

Note 4 - Accounts Receivable

Note 4 - Accounts Receivable	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	4. ACCOUNTS RECEIVABLE Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. As a result of the payment delays for a large customer, the Company has reserved $ 1,720,000 March 31, 2019 December 31, 2018, 100% March 31, 2019 December 31, 2018 March 31, December 31, 201 9 201 8 Accounts receivable - current $ 754,204 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 2,474,204 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 740,419 $ 1,574,032

Note 5 - Share Based Compensati

Note 5 - Share Based Compensation	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Share-based Payment Arrangement [Text Block]	5. SHARE BASED COMPENSATION The following table presents share-based compensation expenses for continuing operations included in the Company’s unaudited condensed consolidated statements of operations: Three Months Ended March 31, 201 9 201 8 Selling, general and administrative $ 453,086 $ 471,146 Research, development and engineering 72,947 78,787 $ 526,033 $ 549,933

Note 6 - Factoring

Note 6 - Factoring	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Factoring [Text Block]	6. FACTORING Due from factor consisted of the following as of: March 31, December 31, 201 9 201 8 Original invoice value $ 302,777 $ 221,120 Factored amount (226,953 ) (164,438 ) Balance due from factor $ 75,824 $ 56,682 The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) which has been extended to October 31, 2019. $150,000 35% 75% 2.75% 15% Three Months ended March 31, 201 9 201 8 Factoring fees $ 52,797 $ 91,523

Note 7 - Inventory

Note 7 - Inventory	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Inventory Disclosure [Text Block]	7. INVENTORY Inventory is stated at the lower of cost, determined on a first first March 31, December 31, 201 9 201 8 Finished goods $ 476,418 $ 496,358 Fabricated assemblies 504,490 502,471 Total inventory $ 980,908 $ 998,829

Note 8 - Resalable Software Lic

Note 8 - Resalable Software License Rights	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Research, Development, and Computer Software Disclosure [Text Block]	8. RESALABLE SOFTWARE LICENSE RIGHTS On November 11, 2015, $12,000,000. 12 $1,125,000 The Company originally determined the software license rights to be a finite lived intangible asset, and estimated that the software license rights shall be economically used over a 10 fourth 2015, not January 2017. first 2017. Through 2018, 1 2 ten 3 first 4 5 10 January 1, 2019 $281,250 $660,000 three March 31, 2019 2018, $176 $586, $4,479,846 $7,520,154 March 31, 2019. 250 10 45 17 not no The following compares line items on the statement of operations had the change in amortization methodology not As reported Prior methodology 3 months ended 3 months ended March 31, 2019 March 31, 2019 Amortization of software license rights $ 281,074 $ 749,824 Total operating expenses $ 1,751,151 $ 2,219,901 Operating loss $ (1,803,578 ) $ (2,272,328 ) Net loss $ (1,803,508 ) $ (2,272,258 ) Basic & diluted loss per share $ (0.13 ) $ (0.16 ) On December 31, 2015, third $180,000 two $25,954 three March 31, 2019, $12,540 2018 $91,748 $88,252 March 31, 2019. March 31, December 31, 201 9 201 8 Current software license rights $ 1,125,000 $ 1,125,000 Non-current software license rights 6,483,406 6,790,610 Total software license rights $ 7,608,406 $ 7,915,610

Note 9 - Related Party

Note 9 - Related Party	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9. Related Party During the quarter ended March 31, 2019, $133,174

Note 10 - Leases

Note 10 - Leases	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	10. LEASES The Company’s leases office space in New Jersey, Hong Kong and Minnesota with lease termination dates of 2023, 2019, 2020, 12 not 842. three March 31, 2019 Lease cost Operating lease cost $ 42,981 Short-term lease cost 16,295 Sublease income - Total lease cost $ 59,276 Balance sheet information Operating ROU assets $ 568,073 Operating lease liabilities, current portion $ 138,274 Operating lease liabilities, non-current portion 419,171 Total operating lease liabilities $ 557,445 Weighted average remaining lease term (in years) – operating leases 4.11 Weighted average discount rate – operating leases 5.50 % Supplemental cash flow information related to leases were as follows, for the three March 31, 2019: Cash paid for amounts included in the measurement of operating lease liabilities $ 42,030 Maturities of operating lease liabilities were as follows: 2019 (remaining nine months) $ 124,231 2020 155,682 2021 127,425 2022 131,249 2023 89,226 2024 and thereafter - Total future lease payments $ 627,813 Less: imputed interest (70,368 ) Total $ 557,445

Note 11 - Earnings Per Share ("

Note 11 - Earnings Per Share ("EPS")	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Earnings Per Share [Text Block]	11. EARNINGS PER SHARE (“EPS”) The Company’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of convertible preferred stock. The reconciliation of the numerator of the basic and diluted EPS calculations was as follows for the three March 31, 2019 2018: Three Months ended 201 9 201 8 Basic Numerator: Net loss $ (1,803,508 ) $ (2,191,992 ) Convertible preferred stock dividends - (156,162 ) Net loss available to common stockholders (basic and diluted) $ (1,803,508 ) $ (2,348,154 ) The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive due to the net losses for the three March 31, 2019 2018: Three Months ended 201 9 201 8 Preferred stock - 4,506,259 Stock options - 4,542 Warrants - - Total - 4,510,801 The following table sets forth options and warrants which were excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Three Months Ended 201 9 201 8 Stock options 1,794,737 1,468,325 Warrants 3,780,976 1,398,969 Total 5,575,713 2,867,294

Note 12 - Stockholders' Equity

Note 12 - Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	12. STOCKHOLDERS’ EQUITY Preferred Stock Within the limits and restrictions provided in the Company’s Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to 5,000,000 $.0001 one March 31, 2019, 100,000 1 90,000 2015 0 105,000 1 105,000 2015 0 Series A- 1 On October 22 29, 2015, 84,500 1 $100.00 $8,450,000. November 11, 2015, 5,500 1 $100.00 $550,000. Between September 22, 2017 May 31, 2018, 1 1 2,500,000 248,893 $896,015 1 As a result of the forgoing conversions, there are no 1 March 31, 2019. Overall balances and conversion of Series A- 1 Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 - 135,000 Accrual of dividends – Q2 2017 - 135,000 Accrual of dividends – Q3 2017 - 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 - 93,894 Conversion into common stock – April 2018 (39,088 ) (330,552 ) Accrual of dividends – Q2 2018 (until final conversion) - 25,463 Conversion into common stock – May 2018 (23,508 ) (25,463 ) Balance – December 31, 2018 - $ - Series B- 1 On November 11, 2015, 105,000 1 $100.00 $10,500,000. Between March 23, 2018 May 23, 2018, 1 1 2,916,668 131,229 $472,426 1 As a result of the forgoing conversions, there are no 1 March 31, 2019. Overall balances and conversion of Series B- 1 Series B-1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 - 65,625 Accrual of dividends – Q2 2017 - 65,625 Accrual of dividends – Q3 2017 - 65,625 Accrual of dividends – Q4 2017 - 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 - 62,268 Accrual of dividends – Q2 2018 (until final conversion) - 16,408 Conversion into common stock – May 2018 (44,580 ) (55,342 ) Balance – December 31, 2018 - $ - Common Stock On March 21 28, 2019, 13,820 $16,506. Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, 664,584 996,877 $1,595,000. The warrants have a term of five $3.60 February 2015. $3.60 not Pursuant to the Underwriting Agreement with Maxim Group, on August 24, 2018 $1.50 996,877 2,392,502, $3.60 $1.50 $1,288,139 Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, 69,445 $3.60 five The warrants have customary anti-dilution protections including a "full ratchet" anti-dilution adjustment provision which are triggered in the event the Company sells or $3.60 not Pursuant to the Underwriting Agreement with Maxim Group, on August 24, 2018 $1.50 69,445 166,668, $3.60 $1.50 $140,827 Issuances of Stock Options On March 21, 2019, 235,334 three seven $1.18. The fair value of the options issued during the three March 31, 2019 $243,643 2.35%, 4.5, 0, 143%.

Note 13 - Segment Information

Note 13 - Segment Information	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	13. SEGMENT INFORMATION The Company has determined that it operates in one 46% 52% three March 31, 2019 2018,

Note 14 - Fair Values of Financ

Note 14 - Fair Values of Financial Instruments	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Fair Value Disclosures [Text Block]	14. FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, inventory, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature.

Note 15 - Major Customers and A

Note 15 - Major Customers and Accounts Receivables	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	15. MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLES For the three March 31, 2019 2018, two 56% two 48% One 74% March 31, 2019. December 31, 2018, one 70% One 100% March 31, 2019 December 31, 2018 100%

Note 16 - Subsequent Events

Note 16 - Subsequent Events	3 Months Ended
	Mar. 31, 2019
Notes to Financial Statements
Subsequent Events [Text Block]	16. SUBSEQUENT EVENTS On April 4, 2019, $550,000 November 15, 2019 $1.50 may 5% 20%. 7% may two $550,000 45 $1,650,000. 80,000 $120,000 10,000 $15,000 November 1, 2019 On May 14, 2019, 4,235 The Company has reviewed all other subsequent events through the date of filing.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not may In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at March 31, 2019 not 10 December 31, 2018, April 1, 2019.
Lessee, Leases [Policy Text Block]	Leases In February 2016, 2016 02, 842 842 12 January 1, 2019 842 no not 842 no not We elected the package of practical expedients as permitted under the transition guidance, which allowed us: ( 1 2 not 3 not In accordance with ASC 842, one not one 842 20 25 2. not Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. The implicit rate within our operating leases are generally not An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not For periods prior to the adoption of ASC 842, 842 no The impact of the adoption of ASC 842 As reported Adoption of ASC Balance December 31, 2018 842 - increase (decrease) January 1, 2019 Operating lease right-of-assets $ - $ 602,937 $ 602,937 Prepaid expenses and other $ 150,811 $ (12,595 ) $ 138,216 Total assets $ 11,692,332 $ 590,342 $ 12,282,674 Operating lease liabilities, current portion $ - $ 135,519 $ 135,519 Operating lease liabilities, net of current portion $ - $ 454,823 $ 454,823 Total liabilities $ 1,226,110 $ 590,342 $ 1,816,452 Total liabilities and stockholders’ equity $ 11,692,332 $ 590,342 $ 12,282,674
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 Management does not not
Reclassification, Policy [Policy Text Block]	Reclassification no

Note 1 - Nature of Business a_2

Note 1 - Nature of Business and Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]	As reported Adoption of ASC Balance December 31, 2018 842 - increase (decrease) January 1, 2019 Operating lease right-of-assets $ - $ 602,937 $ 602,937 Prepaid expenses and other $ 150,811 $ (12,595 ) $ 138,216 Total assets $ 11,692,332 $ 590,342 $ 12,282,674 Operating lease liabilities, current portion $ - $ 135,519 $ 135,519 Operating lease liabilities, net of current portion $ - $ 454,823 $ 454,823 Total liabilities $ 1,226,110 $ 590,342 $ 1,816,452 Total liabilities and stockholders’ equity $ 11,692,332 $ 590,342 $ 12,282,674

Note 3 - Revenue From Contrac_2

Note 3 - Revenue From Contracts With Customers (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Disaggregation of Revenue [Table Text Block]	North America South America EMEA* Asia March 31, 2019 License fees $ 14,208 $ - $ - $ 69,000 $ 83,208 Hardware 45,981 400 32,918 147,506 226,805 Support and Maintenance 195,326 2,116 36,418 5,000 238,860 Professional services 750 - - 2,000 2,750 Total Revenues $ 256,265 $ 2,516 $ 69,336 $ 223,506 $ 551,623 North America South America EMEA * Asia March 31, 2018 License fees $ 60,969 $ - $ 41,750 $ - $ 102,719 Hardware 99,590 - 214,776 121,921 436,287 Support and Maintenance 177,916 - 8,713 13,970 200,599 Professional services 101,850 - - - 101,850 Total Revenues $ 440,325 $ - $ 265,239 $ 135,891 $ 841,455

Note 4 - Accounts Receivable (T

Note 4 - Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	March 31, December 31, 201 9 201 8 Accounts receivable - current $ 754,204 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 2,474,204 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 740,419 $ 1,574,032

Note 5 - Share Based Compensa_2

Note 5 - Share Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]	Three Months Ended March 31, 201 9 201 8 Selling, general and administrative $ 453,086 $ 471,146 Research, development and engineering 72,947 78,787 $ 526,033 $ 549,933

Note 6 - Factoring (Tables)

Note 6 - Factoring (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	March 31, December 31, 201 9 201 8 Accounts receivable - current $ 754,204 $ 1,587,817 Accounts receivable - non current 1,720,000 1,720,000 2,474,204 3,307,817 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 740,419 $ 1,574,032
Factoring Fees [Table Text Block]	<table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months ended</div></div></div> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">201</div><div style="display: inline; font-weight: bold;">9</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">201</div><div style="display: inline; font-weight: bold;">8</div></div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Factoring fees</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52,797</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">91,523</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>" id="sjs-B5">&lt;div style="display: inline; font-family: times new roman; font-size: 10pt">&lt;table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; text-indent: 0px; min-; min-width: 700px;"> &lt;tr style="vertical-align: bottom;"> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td colspan="6" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> &lt;div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&lt;div style="display: inline; font-weight: bold;">&lt;div style="display: inline; font-weight: bold;">Three Months ended&lt;/div>&lt;/div>&lt;/div> &lt;div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&lt;div style="display: inline; font-weight: bold;">&lt;div style="display: inline; font-weight: bold;">March 31,&lt;/div>&lt;/div>&lt;/div> &lt;/td> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;&lt;/td> &lt;/tr> &lt;tr style="vertical-align: bottom;"> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> &lt;div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&lt;div style="display: inline; font-weight: bold;">&lt;div style="display: inline; font-weight: bold;">201&lt;/div>&lt;div style="display: inline; font-weight: bold;">9&lt;/div>&lt;/div>&lt;/div> &lt;/td> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;&lt;/td> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td colspan="2" style="text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> &lt;div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">&lt;div style="display: inline; font-weight: bold;">&lt;div style="display: inline; font-weight: bold;">201&lt;/div>&lt;div style="display: inline; font-weight: bold;">8&lt;/div>&lt;/div>&lt;/div> &lt;/td> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;&lt;/td> &lt;/tr> &lt;tr style="vertical-align: bottom;"> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;td>&nbsp;&lt;/td> &lt;/tr> &lt;tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> &lt;td style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; width: 66%;"> &lt;div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Factoring fees&lt;/div> &lt;/td> &lt;td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$&lt;/td> &lt;td style="width: 14%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&lt;div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52,797&lt;/div>&lt;/td> &lt;td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;&lt;/td> &lt;td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;&lt;/td> &lt;td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$&lt;/td> &lt;td style="width: 14%; text-align: right; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&lt;div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">91,523&lt;/div>&lt;/td> &lt;td nowrap="nowrap" style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;">&nbsp;&lt;/td> &lt;/tr> &lt;/table>&lt;/div>
Factored Accounts Receivable [Member]
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	March 31, December 31, 201 9 201 8 Original invoice value $ 302,777 $ 221,120 Factored amount (226,953 ) (164,438 ) Balance due from factor $ 75,824 $ 56,682

Note 7 - Inventory (Tables)

Note 7 - Inventory (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31, December 31, 201 9 201 8 Finished goods $ 476,418 $ 496,358 Fabricated assemblies 504,490 502,471 Total inventory $ 980,908 $ 998,829

Note 8 - Resalable Software L_2

Note 8 - Resalable Software License Rights (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Change in Accounting Estimate [Table Text Block]	As reported Prior methodology 3 months ended 3 months ended March 31, 2019 March 31, 2019 Amortization of software license rights $ 281,074 $ 749,824 Total operating expenses $ 1,751,151 $ 2,219,901 Operating loss $ (1,803,578 ) $ (2,272,328 ) Net loss $ (1,803,508 ) $ (2,272,258 ) Basic & diluted loss per share $ (0.13 ) $ (0.16 )
Software License Rights [Table Text Block]	March 31, December 31, 201 9 201 8 Current software license rights $ 1,125,000 $ 1,125,000 Non-current software license rights 6,483,406 6,790,610 Total software license rights $ 7,608,406 $ 7,915,610

Note 10 - Leases (Tables)

Note 10 - Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Lessee, Operating Lease, Costs, Assets and Liabilities [Table Text Block]	March 31, 2019 Lease cost Operating lease cost $ 42,981 Short-term lease cost 16,295 Sublease income - Total lease cost $ 59,276 Balance sheet information Operating ROU assets $ 568,073 Operating lease liabilities, current portion $ 138,274 Operating lease liabilities, non-current portion 419,171 Total operating lease liabilities $ 557,445 Weighted average remaining lease term (in years) – operating leases 4.11 Weighted average discount rate – operating leases 5.50 %
Lessee, Operating Lease, Supplemental Cash Flow Information [Table Text Block]	Cash paid for amounts included in the measurement of operating lease liabilities $ 42,030
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	2019 (remaining nine months) $ 124,231 2020 155,682 2021 127,425 2022 131,249 2023 89,226 2024 and thereafter - Total future lease payments $ 627,813 Less: imputed interest (70,368 ) Total $ 557,445

Note 11 - Earnings Per Share _2

Note 11 - Earnings Per Share ("EPS") (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months ended 201 9 201 8 Basic Numerator: Net loss $ (1,803,508 ) $ (2,191,992 ) Convertible preferred stock dividends - (156,162 ) Net loss available to common stockholders (basic and diluted) $ (1,803,508 ) $ (2,348,154 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months ended 201 9 201 8 Preferred stock - 4,506,259 Stock options - 4,542 Warrants - - Total - 4,510,801 Three Months Ended 201 9 201 8 Stock options 1,794,737 1,468,325 Warrants 3,780,976 1,398,969 Total 5,575,713 2,867,294

Note 12 - Stockholders' Equity

Note 12 - Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2019
Notes Tables
Schedule of Preferred Stock and Accrued Dividends [Table Text Block]	Series A-1 Accrued Dividends Balance – January 1, 2017 90,000 $ 270,000 Accrual of dividends – Q1 2017 - 135,000 Accrual of dividends – Q2 2017 - 135,000 Accrual of dividends – Q3 2017 - 135,000 Conversion into common stock – September 2017 - (540,000 ) Conversion into common stock – October 2017 (27,404 ) - Accrual of dividends – Q4 2017 101,658 Balance – December 31, 2017 62,596 $ 236,658 Accrual of dividends – Q1 2018 - 93,894 Conversion into common stock – April 2018 (39,088 ) (330,552 ) Accrual of dividends – Q2 2018 (until final conversion) - 25,463 Conversion into common stock – May 2018 (23,508 ) (25,463 ) Balance – December 31, 2018 - $ - Series B-1 Accrued Dividends Balance – January 1, 2017 105,000 $ 131,250 Accrual of dividends – Q1 2017 - 65,625 Accrual of dividends – Q2 2017 - 65,625 Accrual of dividends – Q3 2017 - 65,625 Accrual of dividends – Q4 2017 - 65,625 Balance – December 31, 2017 105,000 393,750 Conversion into common stock – March 2018 (60,420 ) (417,084 ) Accrual of dividends – Q1 2018 - 62,268 Accrual of dividends – Q2 2018 (until final conversion) - 16,408 Conversion into common stock – May 2018 (44,580 ) (55,342 ) Balance – December 31, 2018 - $ -

Note 1 - Nature of Business a_3

Note 1 - Nature of Business and Basis of Presentation - Adoption of ASC 842 Impact (Details) - USD ($)	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating lease right-of-assets	$ 568,073	$ 602,937	$ 0
Prepaid expenses and other	175,144	138,216	150,811
Total assets	11,263,232	12,282,674	11,692,332
Operating lease liabilities, current portion	138,274	135,519	0
Operating lease liabilities, net of current portion	419,171	454,823	0
Total liabilities	2,074,484	1,816,452	1,226,110
Total liabilities and stockholders’ equity	$ 11,263,232	12,282,674	$ 11,692,332
Accounting Standards Update 2016-02 [Member]
Operating lease right-of-assets		602,937
Prepaid expenses and other		(12,595)
Total assets		590,342
Operating lease liabilities, current portion		135,519
Operating lease liabilities, net of current portion		454,823
Total liabilities		590,342
Total liabilities and stockholders’ equity		$ 590,342

Note 2 - Going Concern (Details

Note 2 - Going Concern (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Retained Earnings (Accumulated Deficit), Ending Balance	$ (76,937,824)	$ (75,134,316)
Cash and Cash Equivalents, at Carrying Value, Ending Balance	459,311	$ 323,943	$ 1,299,631	$ 288,721
Monthly Cash Requirement to Conduct Operations and Pay Dividend Obligations	$ 537,000

Note 3 - Revenue From Contrac_3

Note 3 - Revenue From Contracts With Customers (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Capitalized Contract Cost, Amortization Period	4 years
Contract with Customer, Liability, Revenue Recognized	$ 76,000	$ 0
Contract with Customer, Liability, Total	$ 333,240	$ 196,609

Note 3 - Revenue From Contrac_4

Note 3 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($)		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Revenue		$ 551,623	$ 841,455
North America [Member]
Revenue		256,265	440,325
South America [Member]
Revenue		2,516
EMEA [Member]
Revenue	[1]	69,336	265,239
Asia [Member]
Revenue		223,506	135,891
License [Member]
Revenue		83,208	102,719
License [Member] | North America [Member]
Revenue		14,208	60,969
License [Member] | South America [Member]
Revenue
License [Member] | EMEA [Member]
Revenue	[1]		41,750
License [Member] | Asia [Member]
Revenue		69,000
Hardware [Member]
Revenue		226,805	436,287
Hardware [Member] | North America [Member]
Revenue		45,981	99,590
Hardware [Member] | South America [Member]
Revenue		400
Hardware [Member] | EMEA [Member]
Revenue	[1]	32,918	214,776
Hardware [Member] | Asia [Member]
Revenue		147,506	121,921
Maintenance [Member]
Revenue		238,860	200,599
Maintenance [Member] | North America [Member]
Revenue		195,326	177,916
Maintenance [Member] | South America [Member]
Revenue		2,116
Maintenance [Member] | EMEA [Member]
Revenue	[1]	36,418	8,713
Maintenance [Member] | Asia [Member]
Revenue		5,000	13,970
Professional Services [Member]
Revenue		2,750	101,850
Professional Services [Member] | North America [Member]
Revenue		750	101,850
Professional Services [Member] | South America [Member]
Revenue
Professional Services [Member] | EMEA [Member]
Revenue	[1]
Professional Services [Member] | Asia [Member]
Revenue		$ 2,000
[1]	EMEA - Europe, Middle East, Africa

Note 4 - Accounts Receivable (D

Note 4 - Accounts Receivable (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Accounts Receivable, Allowance for Credit Loss, Noncurrent	$ 1,720,000	$ 1,720,000
Percentage of Remaining Balance Owned Reserved	100.00%	100.00%

Note 4 - Accounts Receivable -

Note 4 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounts receivable - current	$ 754,204	$ 1,587,817
Accounts receivable - non current	1,720,000	1,720,000
Total accounts receivable	2,474,204	3,307,817
Allowance for doubtful accounts - current	(13,785)	(13,785)
Allowance for doubtful accounts - non current	(1,720,000)	(1,720,000)
Total allowance for doubtful accounts	(1,733,785)	(1,733,785)
Accounts receivable, net of allowances for doubtful accounts	$ 740,419	$ 1,574,032

Note 5 - Share Based Compensa_3

Note 5 - Share Based Compensation - Expenses for Continuing Operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based compensation expense	$ 526,033	$ 549,933
Selling, General and Administrative Expenses [Member]
Share-based compensation expense	453,086	471,146
Research and Development Expense [Member]
Share-based compensation expense	$ 72,947	$ 78,787

Note 6 - Factoring (Details Tex

Note 6 - Factoring (Details Textual)	3 Months Ended
	Mar. 31, 2019USD ($)
Factoring Arrangement, Minimum Amount of Accounts Receivable Per Quarter	$ 150,000
Minimum [Member]
Factoring Fees Percent	2.75%
Maximum [Member]
Factoring Fees Percent	15.00%
Geographic Distribution, Foreign [Member]
Percentage Of Accounts Receivable Remitted By Factor	35.00%
Geographic Distribution, Domestic [Member]
Percentage Of Accounts Receivable Remitted By Factor	75.00%

Note 6 - Factoring - Due From F

Note 6 - Factoring - Due From Factor (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Original invoice value	$ 302,777	$ 221,120
Factored amount	(226,953)	(164,438)
Balance due from factor	$ 75,824	$ 56,682

Note 6 - Factoring - Fees (Deta

Note 6 - Factoring - Fees (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Factoring fees	$ 52,797	$ 91,523

Note 7 - Inventory - Components

Note 7 - Inventory - Components of Inventory (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Finished goods	$ 476,418	$ 496,358
Fabricated assemblies	504,490	502,471
Total inventory	$ 980,908	$ 998,829

Note 8 - Resalable Software L_3

Note 8 - Resalable Software License Rights (Details Textual) - USD ($)	Dec. 31, 2015	Nov. 11, 2015	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2019	Dec. 31, 2018
Payments to Acquire Intangible Assets			$ 1,737
Software License Rights, Current			1,125,000			$ 1,125,000	$ 1,125,000
Amortization of Intangible Assets, Total			3,314	5,655
Software License Rights			7,608,406			7,608,406	$ 7,915,610
Software License Rights [Member]
Payments to Acquire Intangible Assets		$ 12,000,000
Software License Rights, Current		$ 1,125,000
Finite-Lived Intangible Asset, Useful Life					10 years
Amortization of Intangible Assets, Total			281,250	660,000		4,479,846
Software License Rights			7,520,154			7,520,154
Software License Rights [Member] | Valuation, Cost Approach [Member]
Amortization of Intangible Assets, Total			176	586
The 2015 Software License [Member]
Amortization of Intangible Assets, Total			25,954
Software License Rights			88,252			$ 88,252
Payments to Acquire Software	$ 180,000
Amortization of Intangible Assets, Credits				$ 12,540
Cumulative Amount of Amortization Expense, Net of Credits			$ 91,748

Note 8 - Resalable Software L_4

Note 8 - Resalable Software Licenses Rights - Amortization Expense Change in Methodology (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Amortization of software license rights	$ 281,074	$ 659,414
Total operating expenses	1,751,151	1,854,008
Operating loss	(1,803,578)	(2,191,998)
Net loss	$ (1,803,508)	$ (2,191,992)
Basic & diluted loss per share (in dollars per share)	$ (0.13)	$ (0.30)
Intangible Assets, Amortization Period [Member]
Amortization of software license rights	$ 749,824
Total operating expenses	2,219,901
Operating loss	(2,272,328)
Net loss	$ (2,272,258)
Basic & diluted loss per share (in dollars per share)	$ (0.16)

Note 8 - Resalable Software L_5

Note 8 - Resalable Software License Rights - Summary of Software License Rights (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Resalable software license rights	$ 1,125,000	$ 1,125,000
Resalable software license rights, net of current portion	6,483,406	6,790,610
Total software license rights	$ 7,608,406	$ 7,915,610

Note 9 - Related Party (Details

Note 9 - Related Party (Details Textual)	3 Months Ended
	Mar. 31, 2019USD ($)
Executive Officer [Member]
Proceeds from Related Party Debt	$ 133,174

Note 10 - Leases - Operating Le

Note 10 - Leases - Operating Lease Balance Sheet Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating lease cost	$ 42,981
Short-term lease cost	16,295
Sublease income
Total lease cost	59,276
Operating lease right-of-assets	568,073	$ 602,937	$ 0
Operating lease liabilities, current portion	138,274	135,519	0
Operating lease liabilities, net of current portion	419,171	$ 454,823	$ 0
Total	$ 557,445
Weighted average remaining lease term (in years) – operating leases (Year)	4 years 40 days
Weighted average discount rate – operating leases	5.50%

Note 10 - Leases - Supplemental

Note 10 - Leases - Supplemental Cash Flow Information Related to Leases (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Cash paid for amounts included in the measurement of operating lease liabilities	$ 42,030

Note 10 - Leases - Operating _2

Note 10 - Leases - Operating Lease Liability Maturity (Details)	Mar. 31, 2019USD ($)
2019 (remaining nine months)	$ 124,231
2020	155,682
2021	127,425
2022	131,249
2023	89,226
2024 and thereafter
Total future lease payments	627,813
Less: imputed interest	(70,368)
Total	$ 557,445

Note 11 - Earnings Per Share _3

Note 11 - Earnings Per Share ("EPS") - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic Numerator:
Net loss	$ (1,803,508)	$ (2,191,992)
Convertible preferred stock dividends		(156,162)
Net loss available to common stockholders (basic and diluted)	$ (1,803,508)	$ (2,348,154)

Note 11 - Earnings Per Share _4

Note 11 - Earnings Per Share ("EPS") - Securities Excluded From the Diluted Per Share Calculation (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Exercise Price Less Than Average Market Price Of Common Shares [Member]
Antidilutive securities (in shares)		4,510,801
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Preferred Stock [Member]
Antidilutive securities (in shares)		4,506,259
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Share-based Payment Arrangement, Option [Member]
Antidilutive securities (in shares)		4,542
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member]
Antidilutive securities (in shares)
Exercise Price Greater Than Average Market Price Of Common Shares [Member]
Antidilutive securities (in shares)	5,575,713	2,867,294
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Share-based Payment Arrangement, Option [Member]
Antidilutive securities (in shares)	1,794,737	1,468,325
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member]
Antidilutive securities (in shares)	3,780,976	1,398,969

Note 12 - Stockholders' Equit_2

Note 12 - Stockholders' Equity (Details Textual) - USD ($)

Mar. 28, 2019

Mar. 21, 2019

Aug. 24, 2018

Nov. 11, 2015

Oct. 29, 2015

Sep. 23, 2015

Nov. 13, 2014

May 31, 2018

Apr. 30, 2018

Mar. 31, 2018

Oct. 31, 2017

Sep. 30, 2017

May 23, 2018

Mar. 31, 2019

Mar. 31, 2018

May 31, 2018

Dec. 31, 2015

Sep. 30, 2018

Preferred Stock, Shares Authorized

5,000,000

Preferred Stock, Par or Stated Value Per Share

$ 0.0001

Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total

$ 16,506

$ 16,513

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 3.60

Promissory Note [Member]

Class of Warrant or Right, Number of Securities Called by Warrants or Rights

69,445

Securities Purchase Agreement Warrants [Member]

Class of Warrant or Right, Number of Securities Called by Warrants or Rights

2,392,502

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 1.50

Fair Value Adjustment of Warrants

$ 1,288,139

September 2015 Warrants [Member]

Class of Warrant or Right, Number of Securities Called by Warrants or Rights

166,668

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 1.50

Fair Value Adjustment of Warrants

$ 140,827

Private Investor SPA [Member]

Stock Issued During Period, Shares, New Issues

664,584

Class of Warrant or Right, Number of Securities Called by Warrants or Rights

996,877

Proceeds from Issuance of Private Placement

$ 1,595,000

Term Of Warrant

5 years

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 3.60

Director [Member]

Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total

13,820

Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture, Total

$ 16,506

Certain Officers, Employees, and Contractors [Member] | Share-based Payment Arrangement, Option [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

235,334

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

3 years

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

7 years

Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price

$ 1.18

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value Amount

$ 243,643

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate

2.35%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term

4 years 182 days

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate

0.00%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate

143.00%

Conversion of Series A-1 Shares into Common Stock [Member]

Conversion of Stock, Shares Issued

2,500,000

Conversion of Dividends Payable on Series A-1 Preferred Stock to Common Stock [Member]

Conversion of Dividends Payable, Shares Issued

248,893

Conversion of Dividends Payable, Amount Converted

$ 896,015

Conversion of Series B-1 Shares into Common Stock [Member]

Conversion of Stock, Shares Issued

2,916,668

Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member]

Conversion of Dividends Payable, Shares Issued

131,229

Conversion of Dividends Payable, Amount Converted

$ 472,426

$ 417,084

Series A-1 Convertible Preferred Stock [Member]

Preferred Stock, Shares Authorized

100,000

Stock Issued During Period, Shares, New Issues

5,500

84,500

90,000

Preferred Stock, Shares Outstanding, Ending Balance

0

Share Price

$ 100

$ 100

Proceeds from Issuance of Convertible Preferred Stock

$ 550,000

$ 8,450,000

Conversion of Dividends Payable, Amount Converted

$ 25,463

$ 330,552

$ 540,000

Preferred Stock, Shares Issued, Total

0

Series B-1 Convertible Preferred Stock [Member]

Preferred Stock, Shares Authorized

105,000

Stock Issued During Period, Shares, New Issues

105,000

105,000

Preferred Stock, Shares Outstanding, Ending Balance

0

0

Share Price

$ 100

Proceeds from Issuance of Convertible Preferred Stock

$ 10,500,000

Conversion of Dividends Payable, Amount Converted

$ 55,342

$ 417,084

Preferred Stock, Shares Issued, Total

0

September 2015 Warrants [Member]

Term Of Warrant

5 years

Class of Warrant or Right, Exercise Price of Warrants or Rights

$ 3.60

Note 12 - Stockholders' Equit_3

Note 12 - Stockholders' Equity - Balances and Conversion of Preferred Shares and Accrued Dividends (Details) - USD ($)	1 Months Ended					3 Months Ended
	May 31, 2018	Apr. 30, 2018	Mar. 31, 2018	Oct. 31, 2017	Sep. 30, 2017	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2016
Series A-1 Convertible Preferred Stock [Member]
Balance (in shares)								62,596					90,000
Conversion into common stock (in shares)	(23,508)	(39,088)		(27,404)
Balance								$ 236,658					$ 270,000
Accrual of dividends						$ 25,463	$ 93,894	$ 101,658	$ 135,000	$ 135,000	$ 135,000
Conversion into common stock	$ (25,463)	$ (330,552)			$ (540,000)
Series B-1 Convertible Preferred Stock [Member]
Balance (in shares)								105,000					105,000
Conversion into common stock (in shares)	(44,580)		(60,420)
Balance								$ 393,750					$ 131,250
Accrual of dividends						$ 16,408	$ 62,268	$ 65,625	$ 65,625	$ 65,625	$ 65,625
Conversion into common stock	$ (55,342)		$ (417,084)

Note 13 - Segment Information (

Note 13 - Segment Information (Details Textual)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of Reportable Segments	1
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | North America [Member]
Concentration Risk, Percentage	46.00%	52.00%

Note 15 - Major Customers and_2

Note 15 - Major Customers and Accounts Receivables (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Revenue Benchmark [Member]
Concentration Risk, Number of Major Customers	2	2
Concentration Risk, Percentage	56.00%	48.00%
Current Accounts Receivable [Member]
Concentration Risk, Number of Major Customers	1		1
Concentration Risk, Percentage	74.00%		70.00%
Non-current Accounts Receivable [Member] | One Customer [Member]
Concentration Risk, Number of Major Customers	1		1
Concentration Risk, Percentage	100.00%		100.00%
Percentage Of Accounts Receivable Reserved	100.00%		100.00%

Note 16 - Subsequent Events (De

Note 16 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($)	May 14, 2019	Apr. 04, 2019
Proceeds from Convertible Debt		$ 550,000
Debt Instrument, Convertible, Conversion Price		$ 1.50
Debt Instrument, Discount Percent		7.00%
Number of Additional Debentures		2
Debt Instrument, Covenant, Additional Principle Amount		$ 550,000
Debt Instrument, Covenant, Principle Amount, Total Potential		$ 1,650,000
Stock Issued During Period, Shares, Payment of Commitment Fee		80,000
Debt Instrument, Fee Amount		$ 120,000
Common Stock, Shares, Issued, Per Month		10,000
Monthly Commitment Fee		$ 15,000
Stock Issued During Period, Shares, Issued for Services	4,235
Minimum [Member]
Debt Instrument, Redemption Price, Percentage		5.00%
Maximum [Member]
Debt Instrument, Redemption Price, Percentage		20.00%