Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 17, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001019034 | |
Entity Registrant Name | BIO KEY INTERNATIONAL INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-13463 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1741861 | |
Entity Address, Address Line One | 3349 HIGHWAY 138, BUILDING A, SUITE E | |
Entity Address, City or Town | WALL | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07719 | |
City Area Code | 732 | |
Local Phone Number | 359-1100 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | BKYI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,255,256 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 565,513 | $ 2,635,522 |
Accounts receivable, net | 3,178,785 | 1,522,784 |
Due from factor | 74,250 | 49,500 |
Inventory | 4,384,098 | 4,434,369 |
Prepaid expenses and other | 328,684 | 342,706 |
Total current assets | 8,531,330 | 8,984,881 |
Equipment and leasehold improvements, net | 81,053 | 107,413 |
Capitalized contract costs, net | 277,448 | 283,069 |
Deposits and other assets | 8,712 | 8,712 |
Operating lease right-of-use assets | 84,610 | 197,355 |
Intangible assets, net | 1,600,092 | 1,762,825 |
Total non-current assets | 2,051,915 | 2,359,374 |
TOTAL ASSETS | 10,583,245 | 11,344,255 |
LIABILITIES | ||
Accounts payable | 1,855,988 | 1,108,279 |
Accrued liabilities | 900,924 | 1,009,123 |
Income taxes payable | 156,000 | 0 |
Convertible note payable | 2,498,780 | 2,596,203 |
Government loan – BBVA Bank, current portion | 135,308 | 120,000 |
Deferred revenue, current | 651,709 | 462,418 |
Operating lease liabilities, current portion | 77,379 | 159,665 |
Total current liabilities | 6,276,088 | 5,455,688 |
Deferred revenue, long term | 37,280 | 52,134 |
Deferred tax liability | 159,997 | 170,281 |
Government loan – BBVA Bank – net of current portion | 255,219 | 326,767 |
Operating lease liabilities, net of current portion | 9,570 | 37,829 |
Total non-current liabilities | 462,066 | 587,011 |
TOTAL LIABILITIES | 6,738,154 | 6,042,699 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 9,262,853 and 9,190,504 of $.0001 par value at June 30, 2023 and December 31, 2022, respectively | 926 | 919 |
Additional paid-in capital | 122,191,310 | 122,028,612 |
Accumulated other comprehensive loss | (150,572) | (242,602) |
Accumulated deficit | (118,196,573) | (116,485,373) |
TOTAL STOCKHOLDERS’ EQUITY | 3,845,091 | 5,301,556 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 10,583,245 | $ 11,344,255 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 9,262,853 | 9,190,504 |
Common stock, shares outstanding (in shares) | 9,262,853 | 9,190,504 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues | ||||
Revenues | $ 1,928,929 | $ 1,947,115 | $ 5,012,696 | $ 3,888,286 |
Costs and other expenses | ||||
Costs and other expenses | 606,111 | 723,953 | 1,426,385 | 1,061,394 |
Gross profit | 1,322,818 | 1,223,162 | 3,586,311 | 2,826,892 |
Operating Expenses | ||||
Selling, general and administrative | 1,943,164 | 2,006,573 | 3,874,896 | 3,804,571 |
Research, development and engineering | 558,181 | 784,083 | 1,248,341 | 1,589,349 |
Total Operating Expenses | 2,501,345 | 2,790,656 | 5,123,237 | 5,393,920 |
Operating loss | (1,178,527) | (1,567,494) | (1,536,926) | (2,567,028) |
Other income (expense) | ||||
Interest income | 23 | 77 | 27 | 208 |
Loss on foreign currency transactions | 0 | 0 | (15,000) | 0 |
Investment-debt security reserve | 0 | (150,000) | 0 | (150,000) |
Change in fair value of convertible note | (44,568) | 0 | 97,423 | 0 |
Interest expense | (56,806) | (1,540) | (113,724) | (1,540) |
Total other income (expense), net | (101,351) | (151,463) | (31,274) | (151,332) |
Loss before provision for income tax | (1,279,878) | (1,718,957) | (1,568,200) | (2,718,360) |
Provision for income tax | (143,000) | 0 | (143,000) | 0 |
Net loss | (1,422,878) | (1,718,957) | (1,711,200) | (2,718,360) |
Comprehensive loss: | ||||
Net loss | (1,422,878) | (1,718,957) | (1,711,200) | (2,718,360) |
Other comprehensive loss – Foreign currency translation adjustment | 19,884 | (165,883) | 92,030 | (110,081) |
Comprehensive loss | $ (1,402,994) | $ (1,884,840) | $ (1,619,170) | $ (2,828,441) |
Basic and Diluted Loss per Common Share (in dollars per share) | $ (0.16) | $ (0.21) | $ (0.19) | $ (0.34) |
Weighted Average Common Shares Outstanding: | ||||
Basic and diluted (in shares) | 9,021,426 | 8,098,020 | 9,008,631 | 7,992,102 |
Service [Member] | ||||
Revenues | ||||
Revenues | $ 620,465 | $ 435,106 | $ 1,152,987 | $ 830,910 |
Costs and other expenses | ||||
Costs and other expenses | 360,156 | 180,677 | 514,957 | 391,590 |
License [Member] | ||||
Revenues | ||||
Revenues | 1,235,771 | 1,162,148 | 3,714,327 | 2,622,331 |
Costs and other expenses | ||||
Costs and other expenses | 198,147 | 358,136 | 819,028 | 431,366 |
Hardware [Member] | ||||
Revenues | ||||
Revenues | 72,693 | 349,861 | 145,382 | 435,045 |
Costs and other expenses | ||||
Costs and other expenses | $ 47,808 | $ 185,140 | $ 92,400 | $ 238,438 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 7,853,759 | ||||
Balance at Dec. 31, 2021 | $ 786 | $ 120,190,139 | $ 0 | $ (104,575,470) | $ 15,615,455 |
Issuance of common stock for directors’ fees (in shares) | 9,382 | ||||
Issuance of common stock for directors’ fees | $ 1 | 22,019 | 0 | 0 | 22,020 |
Issuance of common stock to employees (in shares) | 274,250 | ||||
Issuance of common stock to employees | $ 27 | (27) | 0 | 0 | 0 |
Other comprehensive loss – Foreign currency translation adjustment | 0 | 0 | 55,802 | 0 | 55,802 |
Share-based compensation | 0 | 87,677 | 0 | 0 | 87,677 |
Net loss | $ 0 | 0 | 0 | (999,403) | (999,403) |
Issuance of common stock pursuant to Swivel purchase agreement (in shares) | 269,060 | ||||
Issuance of common stock pursuant to Swivel purchase agreement | $ 27 | 599,977 | 0 | 0 | 600,004 |
Balance (in shares) at Mar. 31, 2022 | 8,406,451 | ||||
Balance at Mar. 31, 2022 | $ 841 | 120,899,785 | 55,802 | (105,574,873) | 15,381,555 |
Balance (in shares) at Dec. 31, 2021 | 7,853,759 | ||||
Balance at Dec. 31, 2021 | $ 786 | 120,190,139 | 0 | (104,575,470) | 15,615,455 |
Other comprehensive loss – Foreign currency translation adjustment | (110,081) | ||||
Net loss | (2,718,360) | ||||
Balance (in shares) at Jun. 30, 2022 | 8,441,574 | ||||
Balance at Jun. 30, 2022 | $ 844 | 121,022,606 | (110,081) | (107,293,830) | 13,619,539 |
Balance (in shares) at Mar. 31, 2022 | 8,406,451 | ||||
Balance at Mar. 31, 2022 | $ 841 | 120,899,785 | 55,802 | (105,574,873) | 15,381,555 |
Issuance of common stock for directors’ fees (in shares) | 9,117 | ||||
Issuance of common stock for directors’ fees | $ 1 | 18,005 | 0 | 0 | 18,006 |
Issuance of common stock to employees (in shares) | 1,250 | ||||
Issuance of common stock to employees | $ 0 | 0 | 0 | 0 | 0 |
Restricted stock forfeited (in shares) | (1,250) | ||||
Restricted stock forfeited | $ 0 | 0 | 0 | 0 | 0 |
Other comprehensive loss – Foreign currency translation adjustment | 0 | 0 | (165,883) | 0 | (165,883) |
Share-based compensation | 0 | 57,379 | 0 | 0 | 57,379 |
Net loss | $ 0 | 0 | 0 | (1,718,957) | (1,718,957) |
Issuance of common stock for Employee stock purchase plan (in shares) | 26,006 | ||||
Issuance of common stock for Employee stock purchase plan | $ 2 | 39,123 | 0 | 0 | 39,125 |
Share based compensation for employee stock plan | $ 0 | 8,314 | 0 | 0 | 8,314 |
Balance (in shares) at Jun. 30, 2022 | 8,441,574 | ||||
Balance at Jun. 30, 2022 | $ 844 | 121,022,606 | (110,081) | (107,293,830) | 13,619,539 |
Balance (in shares) at Dec. 31, 2022 | 9,190,504 | ||||
Balance at Dec. 31, 2022 | $ 919 | 122,028,612 | (242,602) | (116,485,373) | 5,301,556 |
Issuance of common stock for directors’ fees (in shares) | 15,388 | ||||
Issuance of common stock for directors’ fees | $ 1 | 12,001 | 0 | 0 | 12,002 |
Issuance of common stock to employees (in shares) | 40,000 | ||||
Issuance of common stock to employees | $ 4 | 0 | 0 | 0 | 4 |
Restricted stock forfeited (in shares) | (19,834) | ||||
Restricted stock forfeited | $ (2) | (3,103) | 0 | 0 | (3,105) |
Other comprehensive loss – Foreign currency translation adjustment | 72,146 | 0 | 72,146 | ||
Share-based compensation | 0 | 62,474 | 0 | 0 | 62,474 |
Net loss | $ 0 | 0 | 0 | (288,322) | (288,322) |
Balance (in shares) at Mar. 31, 2023 | 9,226,058 | ||||
Balance at Mar. 31, 2023 | $ 922 | 122,099,984 | (170,456) | (116,773,695) | 5,156,755 |
Balance (in shares) at Dec. 31, 2022 | 9,190,504 | ||||
Balance at Dec. 31, 2022 | $ 919 | 122,028,612 | (242,602) | (116,485,373) | 5,301,556 |
Other comprehensive loss – Foreign currency translation adjustment | 92,030 | ||||
Net loss | (1,711,200) | ||||
Balance (in shares) at Jun. 30, 2023 | 9,262,853 | ||||
Balance at Jun. 30, 2023 | $ 926 | 122,191,310 | (150,572) | (118,196,573) | 3,845,091 |
Balance (in shares) at Mar. 31, 2023 | 9,226,058 | ||||
Balance at Mar. 31, 2023 | $ 922 | 122,099,984 | (170,456) | (116,773,695) | 5,156,755 |
Issuance of common stock for directors’ fees (in shares) | 23,150 | ||||
Issuance of common stock for directors’ fees | $ 2 | 16,000 | 0 | 0 | 16,002 |
Issuance of common stock to employees (in shares) | |||||
Issuance of common stock to employees | $ 0 | 0 | 0 | 0 | 0 |
Restricted stock forfeited (in shares) | (14,375) | ||||
Other comprehensive loss – Foreign currency translation adjustment | $ 0 | 0 | 19,884 | 0 | 19,884 |
Share-based compensation | 0 | 57,831 | 0 | 0 | 57,831 |
Net loss | 0 | 0 | 0 | (1,422,878) | (1,422,878) |
Restricted stock forfeited | $ (1) | 1 | 0 | 0 | 0 |
Issuance of common stock for Employee stock purchase plan (in shares) | 28,020 | ||||
Issuance of common stock for Employee stock purchase plan | $ 3 | 13,931 | 0 | 0 | 13,934 |
Share based compensation for employee stock plan | $ 0 | 3,563 | 0 | 0 | 3,563 |
Balance (in shares) at Jun. 30, 2023 | 9,262,853 | ||||
Balance at Jun. 30, 2023 | $ 926 | $ 122,191,310 | $ (150,572) | $ (118,196,573) | $ 3,845,091 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,711,200) | $ (2,718,360) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Depreciation | 26,637 | 21,781 |
Amortization of intangible assets | 162,166 | 106,403 |
Amortization of capitalized contract costs | 80,717 | 57,945 |
Operating leases right-of-use assets | 112,745 | 47,308 |
Reserve for Investment – debt security | 150,000 | |
Share and warrant-based compensation for employees and consultants | 120,767 | 153,370 |
Stock based directors’ fees | 28,004 | 40,026 |
Change in fair value of convertible note | (97,423) | 0 |
Deferred income tax benefit | (13,000) | 0 |
Bad debts | 50,000 | 25,111 |
Change in assets and liabilities: | ||
Accounts receivable | (1,657,170) | (390,660) |
Due from factor | (24,750) | (27,440) |
Capitalized contract costs | (75,096) | (110,158) |
Inventory | 50,271 | 52,059 |
Resalable software license rights | 0 | 4,984 |
Prepaid expenses and other | 14,799 | (94,947) |
Accounts payable | 726,657 | 450,667 |
Accrued liabilities | (109,208) | (33,776) |
Income taxes payable | 156,000 | 0 |
Deferred revenue | 174,437 | 27,818 |
Operating lease liabilities | (110,545) | (49,577) |
Net cash used for operating activities | (2,095,192) | (2,287,446) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of Swivel Secure, net of cash acquired of $729,905 | 0 | (543,578) |
Receipt of cash from note receivable | 0 | 7,000 |
Capital expenditures | 0 | (22,888) |
Net cash used for investing activities | 0 | (559,466) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||
Receipt of cash from Employee stock purchase plan | 13,934 | 39,125 |
Repayment of government loan | (56,241) | 0 |
Net cash used for financing activities | (42,307) | 39,125 |
Effect of exchange rate changes | 67,490 | (53,217) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (2,070,009) | (2,861,004) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,635,522 | 7,754,046 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 565,513 | 4,893,042 |
Cash paid for: | ||
Interest | 113,724 | 1,540 |
Noncash investing and financing activities | ||
Accounts receivable acquired from Swivel Secure | 0 | 702,886 |
Equipment acquired from Swivel Secure | 0 | 65,640 |
Other assets acquired from Swivel Secure | 0 | 20,708 |
Intangible assets acquired from Swivel Secure | 0 | 762,860 |
Goodwill resulting from the acquisition from Swivel Secure | 0 | 1,067,372 |
Accounts payable and accrued expenses acquired from Swivel Secure | 0 | 431,884 |
Common stock issued for acquisition of Swivel Secure | 0 | 600,004 |
Swivel Secure Europe [Member] | ||
Noncash investing and financing activities | ||
Government loan acquired from Swivel Secure | $ 0 | $ 544,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Cash acquired from purchase | $ 729,905 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
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 subsidiaries (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America (“GAAP”), 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 December 31, 2022 not 10 December 31, 2022 June 1, 2023. Foreign Currencies The Company accounts for foreign currency transactions pursuant to ASC 830, Foreign Currency Matters 830” 830, Recently Issued Accounting Pronouncements Effective January 1, 2023, 2016 13, Financial Instruments-Credit Losses 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 not In August 2020, 2020 06, Debt with Conversion and Other Options (Subtopic 470 20 s Own Equity (Subtopic 815 40 2020 06” 2020 06 2020 06 2020 06 January 1, 2024 2020 06 Management does not not |
Note 2 - Going Concern
Note 2 - Going Concern | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | 2. GOING CONCERN The accompanying 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 Company has suffered substantial net losses and negative cash flows from operations in recent years and is dependent on debt and equity financing to fund its operations all of which 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 increase its revenue and meet its financing requirements on a continuing basis and become profitable in its future operations. The accompanying consolidated financial statements do not As of the date of this report, the Company does not twelve |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three June 30, 2023 June 30, 2022 North June 30, America Africa EMESA* Asia 2023 Services $ 281,607 $ 26,009 $ 305,424 $ 7,425 $ 620,465 License fees 780,383 - 455,388 - 1,235,771 Hardware 61,551 - 142 11,000 72,693 Total Revenues $ 1,123,541 $ 26,009 $ 760,954 $ 18,425 $ 1,928,929 North June 30, America Africa EMESA* Asia 2022 Services $ 301,087 $ 22,677 $ 111,342 $ - $ 435,106 License fees 495,543 - 666,605 - 1,162,148 Hardware 203,212 - 5,679 140,970 349,861 Total Revenues $ 999,842 $ 22,677 $ 783,626 $ 140,970 $ 1,947,115 The following table summarizes revenue from contracts with customers for the six June 30, 2023 June 30, 2022 North June 30, America Africa EMESA* Asia 2023 Services $ 545,464 $ 49,797 $ 545,351 $ 12,375 $ 1,152,987 License fees 1,188,913 552,630 1,902,134 70,650 3,714,327 Hardware 86,332 - 47,150 11,900 145,382 Total Revenues $ 1,820,709 $ 602,427 $ 2,494,635 $ 94,925 $ 5,012,696 North June 30, America Africa EMESA* Asia 2022 Services $ 656,719 $ 37,952 $ 136,186 $ 53 $ 830,910 License fees 968,613 517,161 1,056,882 79,675 2,622,331 Hardware 275,112 12,033 6,930 140,970 435,045 Total Revenues $ 1,900,444 $ 567,146 $ 1,199,998 $ 220,698 $ 3,888,286 *EMESA – Europe, Middle East, South America Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customer for which the contractual maintenance terms have not 12 June 30, 2023 December 31, 2022 three six June 30, 2023 three six June 30, 2022 not |
Note 4 - Accounts Receivable
Note 4 - Accounts Receivable | 6 Months Ended |
Jun. 30, 2023 | |
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 credit losses based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for credit losses by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, current economic conditions and other relevant factors, including specific reserves for certain accounts. Accounts receivable are written off when deemed uncollectible. Accounts receivable at June 30, 2023 December 31, 2022 June 30, December 31, 2023 2022 Accounts receivable $ 3,802,570 $ 2,096,569 Allowance for credit losses (623,785 ) (573,785 ) Accounts receivable, net of allowances for credit losses $ 3,178,785 $ 1,522,784 Bad debt expenses (if any) are recorded in selling, general, and administrative expense. |
Note 5 - Share Based Compensati
Note 5 - Share Based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 5. SHARE BASED COMPENSATION The following table presents share-based compensation expenses included in the Company’s unaudited condensed interim consolidated statements of operations: Three Months Ended June 30, 2023 2022 Selling, general and administrative $ 59,966 $ 66,152 Research, development and engineering 17,430 17,547 $ 77,396 $ 83,699 Six Months Ended June 30, 2023 2022 Selling, general and administrative $ 115,419 $ 158,578 Research, development and engineering 33,352 34,818 $ 148,771 $ 193,396 |
Note 6 - Inventory
Note 6 - Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. INVENTORY Inventory is stated at the lower of cost, determined on a first first June 30, December 31, 2023 2022 Finished goods $ 4,714,372 $ 4,764,643 Fabricated assemblies 69,726 69,726 Reserve on finished goods (400,000 ) (400,000 ) Total inventory $ 4,384,098 $ 4,434,369 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 7. COMMITMENTS AND CONTINGENCIES Distribution Agreement Swivel Secure has a distribution agreement with Swivel Secure Limited (“SSL”). Terms of the agreement include the following: 1. The initial term of the agreement ends on January 31, 2027 one not 30 not 2. SSL appoints Swivel Secure as the exclusive distributor of SSL’s products, to market, sell and distribute in the EMEA (Europe, Middle East and Africa), excluding the United Kingdom and Republic of Ireland, for a defined discount on the sale price. 3. Swivel Secure is expected to generate a certain minimum level of orders of SSL products each year during the term of the agreement. If Swivel Secure fails to meet such minimum level of orders in any year, the exclusive distribution rights will terminate and Swivel Secure will serve as a non-exclusive distributer of SSL Products. The Company expects the revenue targets to continue to be met based on historical performance and increasing distribution by Swivel Secure. Litigation From time to time, the Company may June 30, 2023 not |
Note 8 - Leases
Note 8 - Leases | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 8. LEASES The Company’s leases office space in New Jersey, Minnesota, New Hampshire, Madrid and Hong-Kong with lease termination dates in 2023 2024. August 11, 2023, one September 1, 2023 3 Months ended 3 Months ended June 30, June 30, 2023 2022 Lease cost Total lease cost $ 48,543 $ 55,942 6 Months ended 6 Months ended June 30, June 30, 2023 2022 Lease cost Total lease cost $ 111,682 $ 111,161 June 30, December 31, Balance sheet information 2023 2022 Operating right-of-use assets $ 84,610 $ 197,355 Operating lease liabilities, current portion $ 77,379 $ 159,665 Operating lease liabilities, non-current portion 9,570 37,829 Total operating lease liabilities $ 86,949 $ 197,494 Weighted average remaining lease term (in years) – operating leases 0.93 0.96 Weighted average discount rate – operating leases 5.50 % 5.50 % Cash paid for amounts included in the measurement of operating lease liabilities for the six months ended June 30, 2023 and 2022: $ 138,634 $ 144,985 Maturities of operating lease liabilities were as follows as of June 30, 2023 2023 (6 months remaining) $ 50,950 2024 38,808 Total future lease payments $ 89,758 Less: imputed interest (2,809 ) Total $ 86,949 |
Note 9 - Convertible Note Payab
Note 9 - Convertible Note Payable | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. CONVERTIBLE NOTE PAYABLE Securities Purchase Agreement dated December 22, 2022 On December 22, 2022, The principal amount of the Note was due six one six December 22, 2023. six seven In connection with the issuance of the Note, the Company issued to the investor 700,000 shares of Common Stock (the “Commitment Shares”) valued at $1.00 per share and a warrant (the “Warrant”) to purchase 200,000 shares of common stock (the “Warrant Shares”) at an exercise price of $3.00 per share, exercisable commencing on the date of issuance with a term of five Upon issuance, the Note was not six 6 10 The aggregate number of shares of common stock issuable in the forgoing transaction consisting of the Commitment Shares, the Warrant Shares, and the Conversion Shares are capped at 1,684,576 which is 19.9% of the Company’s issued and outstanding shares of common stock on December 22, 2022, The Company elected the fair value measurement option for the Note as the Note had embedded derivatives that required bifurcation and recorded the entire hybrid financing instrument at fair value under the guidance of ASC 825, 13. As of June 30, 2023 December 31, 2022 |
Note 10 - Earnings (Loss) Per S
Note 10 - Earnings (Loss) Per Share - Common Stock ("EPS") | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. EARNINGS (LOSS) PER SHARE - COMMON STOCK (“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 preferred stock. 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Stock options 172,734 212,461 172,734 212,461 Warrants 4,872,025 4,689,387 4,872,025 4,689,387 Total 5,044,759 4,901,848 5,044,759 4,901,848 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 11. STOCKHOLDERS’ EQUITY Issuances of Common Stock During the six June 30, 2023 not Issuances to Directors, Executive Officers & Consultants On June 18, 2021, first may June 17, 2031. June 30, 2023 June 30, 2022 On March 8, 2022, 20 Issuances of Restricted Stock Restricted stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. The fair value of nonvested shares is determined based on the market price of the Company's common stock on the grant date. Nonvested stock is expensed ratably over the term of the restriction period. During the six June 30, 2023 2022 three During the six June 30, 2023 2022 Restricted stock compensation for the three June 30, 2023 2022 Restricted stock compensation for the six June 30, 2023 2022 Issuances to Directors, Executive Officers & Consultants During the three six June 30, 2023 During the three six June 30, 2022 Employees ’ exercise options During the three six June 30, 2023 2022 no 3. There were no three six June 30, 2023 2022 |
Note 12 - Fair Values of Financ
Note 12 - Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 12. FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. The carrying value of the Company’s government loan payable approximates fair value as the interest rate related to the financial instruments approximated market. |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurement of Convertible Note Payable | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 13. FAIR VALUE MEASUREMENT OF CONVERTIBLE NOTE PAYABLE Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three 1 3 Level 1: Level 2: not Level 3: no The following tables summarize the Note measured at fair value at June 30, 2023 December 31, 2022 June 30, 2023 Total Level 1 Level 2 Level 3 Convertible note at fair value $ 2,498,780 $ - $ - $ 2,498,780 December 31, 2022 Total Level 1 Level 2 Level 3 Convertible note at fair value $ 2,596,203 $ - $ - $ 2,596,203 The Company estimated the fair value of the convertible note using a probability-weighted discounted cash flow model with the following assumptions and significant terms of the convertible note at both June 30, 2023 December 31, 2022 1. Face amount - $2,200,000 2. Nominal interest rate – 12% at June 30, 2023, March 31, 2023 December 31, 2022 3. Default interest rate – 18% 4. Increase in principal upon a default – 30% 5. Present value discount rate – 13.80% at June 30, 2023 March 31, 2023 December 31, 2022 6. Likelihood of default – estimated to be 50% at the extended maturity date The following table shows the changes in fair value measurements for the convertible note using significant unobservable inputs (Level 3 three June 30, 2023 Beginning balance $ 2,596,203 Purchases and issuances - Change in fair value for the three months ended March 31, 2023 (141,991 ) Balance at March 31, 2023 $ 2,454,212 Change in fair value for the three months ended June 30, 2023 44,568 Ending balance at June 30, 2023 $ 2,498,780 |
Note 14 - Major Customers and A
Note 14 - Major Customers and Accounts Receivables | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 14. MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLE During each of the three June 30, 2023 2022 one six June 30, 2023 2022 one Three June 30, 2023 December 31, 2022 one |
Note 15 - Income Taxes
Note 15 - Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. INCOME TAXES United States, Hong Kong and Nigeria The Company recorded no income tax expense for the three six June 30, 2023 2022 As of June 30, 2023 December 31, 2022 not not Spain The provision for income taxes amounted to $143,000. Current income taxes totaled $156,000 and deferred tax benefit totaled $13,000. The deferred tax liability presented on the condensed consolidated balance sheet relates to intangible assets from the acquisition of Swivel Secure. |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 16 SUBSEQUENT EVENTS On July 19, 2023 July 20, 2023, On August 10, 2023, three two August 10, 2023, The Company has reviewed subsequent events through the date of this filing. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
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 subsidiaries (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America (“GAAP”), 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 December 31, 2022 not 10 December 31, 2022 June 1, 2023. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currencies The Company accounts for foreign currency transactions pursuant to ASC 830, Foreign Currency Matters 830” 830, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Effective January 1, 2023, 2016 13, Financial Instruments-Credit Losses 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 not In August 2020, 2020 06, Debt with Conversion and Other Options (Subtopic 470 20 s Own Equity (Subtopic 815 40 2020 06” 2020 06 2020 06 2020 06 January 1, 2024 2020 06 Management does not not |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | North June 30, America Africa EMESA* Asia 2023 Services $ 281,607 $ 26,009 $ 305,424 $ 7,425 $ 620,465 License fees 780,383 - 455,388 - 1,235,771 Hardware 61,551 - 142 11,000 72,693 Total Revenues $ 1,123,541 $ 26,009 $ 760,954 $ 18,425 $ 1,928,929 North June 30, America Africa EMESA* Asia 2022 Services $ 301,087 $ 22,677 $ 111,342 $ - $ 435,106 License fees 495,543 - 666,605 - 1,162,148 Hardware 203,212 - 5,679 140,970 349,861 Total Revenues $ 999,842 $ 22,677 $ 783,626 $ 140,970 $ 1,947,115 North June 30, America Africa EMESA* Asia 2023 Services $ 545,464 $ 49,797 $ 545,351 $ 12,375 $ 1,152,987 License fees 1,188,913 552,630 1,902,134 70,650 3,714,327 Hardware 86,332 - 47,150 11,900 145,382 Total Revenues $ 1,820,709 $ 602,427 $ 2,494,635 $ 94,925 $ 5,012,696 North June 30, America Africa EMESA* Asia 2022 Services $ 656,719 $ 37,952 $ 136,186 $ 53 $ 830,910 License fees 968,613 517,161 1,056,882 79,675 2,622,331 Hardware 275,112 12,033 6,930 140,970 435,045 Total Revenues $ 1,900,444 $ 567,146 $ 1,199,998 $ 220,698 $ 3,888,286 |
Note 4 - Accounts Receivable (T
Note 4 - Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, December 31, 2023 2022 Accounts receivable $ 3,802,570 $ 2,096,569 Allowance for credit losses (623,785 ) (573,785 ) Accounts receivable, net of allowances for credit losses $ 3,178,785 $ 1,522,784 |
Note 5 - Share Based Compensa_2
Note 5 - Share Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended June 30, 2023 2022 Selling, general and administrative $ 59,966 $ 66,152 Research, development and engineering 17,430 17,547 $ 77,396 $ 83,699 Six Months Ended June 30, 2023 2022 Selling, general and administrative $ 115,419 $ 158,578 Research, development and engineering 33,352 34,818 $ 148,771 $ 193,396 |
Note 6 - Inventory (Tables)
Note 6 - Inventory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, 2023 2022 Finished goods $ 4,714,372 $ 4,764,643 Fabricated assemblies 69,726 69,726 Reserve on finished goods (400,000 ) (400,000 ) Total inventory $ 4,384,098 $ 4,434,369 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lessee, Operating Lease, Costs, Assets and Liabilities [Table Text Block] | 3 Months ended 3 Months ended June 30, June 30, 2023 2022 Lease cost Total lease cost $ 48,543 $ 55,942 6 Months ended 6 Months ended June 30, June 30, 2023 2022 Lease cost Total lease cost $ 111,682 $ 111,161 June 30, December 31, Balance sheet information 2023 2022 Operating right-of-use assets $ 84,610 $ 197,355 Operating lease liabilities, current portion $ 77,379 $ 159,665 Operating lease liabilities, non-current portion 9,570 37,829 Total operating lease liabilities $ 86,949 $ 197,494 Weighted average remaining lease term (in years) – operating leases 0.93 0.96 Weighted average discount rate – operating leases 5.50 % 5.50 % Cash paid for amounts included in the measurement of operating lease liabilities for the six months ended June 30, 2023 and 2022: $ 138,634 $ 144,985 2023 (6 months remaining) $ 50,950 2024 38,808 Total future lease payments $ 89,758 Less: imputed interest (2,809 ) Total $ 86,949 |
Note 10 - Earnings (Loss) Per_2
Note 10 - Earnings (Loss) Per Share - Common Stock ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Stock options 172,734 212,461 172,734 212,461 Warrants 4,872,025 4,689,387 4,872,025 4,689,387 Total 5,044,759 4,901,848 5,044,759 4,901,848 |
Note 13 - Fair Value Measurem_2
Note 13 - Fair Value Measurement of Convertible Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | June 30, 2023 Total Level 1 Level 2 Level 3 Convertible note at fair value $ 2,498,780 $ - $ - $ 2,498,780 December 31, 2022 Total Level 1 Level 2 Level 3 Convertible note at fair value $ 2,596,203 $ - $ - $ 2,596,203 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Beginning balance $ 2,596,203 Purchases and issuances - Change in fair value for the three months ended March 31, 2023 (141,991 ) Balance at March 31, 2023 $ 2,454,212 Change in fair value for the three months ended June 30, 2023 44,568 Ending balance at June 30, 2023 $ 2,498,780 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Contract with Customer, Liability | $ 689,000 | $ 689,000 | $ 515,000 | ||
Contract with Customer, Liability, Revenue Recognized | $ 102,000 | $ 153,000 | $ 335,000 | $ 387,000 | |
Minimum [Member] | |||||
Capitalized Contract Cost, Amortization Period (Month) | 12 months | 12 months | |||
Maximum [Member] | |||||
Capitalized Contract Cost, Amortization Period (Month) | 60 months | 60 months |
Note 3 - Revenue From Contrac_4
Note 3 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues | $ 1,928,929 | $ 1,947,115 | $ 5,012,696 | $ 3,888,286 | |
Service [Member] | |||||
Revenues | 620,465 | 435,106 | 1,152,987 | 830,910 | |
License [Member] | |||||
Revenues | 1,235,771 | 1,162,148 | 3,714,327 | 2,622,331 | |
Hardware [Member] | |||||
Revenues | 72,693 | 349,861 | 145,382 | 435,045 | |
North America [Member] | |||||
Revenues | 1,123,541 | 999,842 | 1,820,709 | 1,900,444 | |
North America [Member] | Service [Member] | |||||
Revenues | 281,607 | 301,087 | 545,464 | 656,719 | |
North America [Member] | License [Member] | |||||
Revenues | 780,383 | 495,543 | 1,188,913 | 968,613 | |
North America [Member] | Hardware [Member] | |||||
Revenues | 61,551 | 203,212 | 86,332 | 275,112 | |
South America [Member] | |||||
Revenues | 26,009 | 22,677 | 602,427 | 567,146 | |
South America [Member] | Service [Member] | |||||
Revenues | 26,009 | 22,677 | 49,797 | 37,952 | |
South America [Member] | License [Member] | |||||
Revenues | 0 | 0 | 552,630 | 517,161 | |
South America [Member] | Hardware [Member] | |||||
Revenues | 0 | 0 | 0 | 12,033 | |
EMESA [Member] | |||||
Revenues | [1] | 760,954 | 783,626 | 2,494,635 | 1,199,998 |
EMESA [Member] | Service [Member] | |||||
Revenues | 305,424 | 111,342 | 545,351 | 136,186 | |
EMESA [Member] | License [Member] | |||||
Revenues | [1] | 455,388 | 666,605 | 1,902,134 | 1,056,882 |
EMESA [Member] | Hardware [Member] | |||||
Revenues | [1] | 142 | 5,679 | 47,150 | 6,930 |
Asia [Member] | |||||
Revenues | 18,425 | 140,970 | 94,925 | 220,698 | |
Asia [Member] | Service [Member] | |||||
Revenues | 7,425 | 0 | 12,375 | 53 | |
Asia [Member] | License [Member] | |||||
Revenues | 0 | 0 | 70,650 | 79,675 | |
Asia [Member] | Hardware [Member] | |||||
Revenues | $ 11,000 | $ 140,970 | $ 11,900 | $ 140,970 | |
[1]EMESA – Europe, Middle East, South America |
Note 4 - Accounts Receivable -
Note 4 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts receivable | $ 3,802,570 | $ 2,096,569 |
Allowance for credit losses | (623,785) | (573,785) |
Accounts receivable, net of allowances for credit losses | $ 3,178,785 | $ 1,522,784 |
Note 5 - Share Based Compensa_3
Note 5 - Share Based Compensation - Expenses for Continuing Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based compensation expense | $ 77,396 | $ 83,699 | $ 148,771 | $ 193,396 |
Selling, General and Administrative Expenses [Member] | ||||
Share-based compensation expense | 59,966 | 66,152 | 115,419 | 158,578 |
Research and Development Expense [Member] | ||||
Share-based compensation expense | $ 17,430 | $ 17,547 | $ 33,352 | $ 34,818 |
Note 6 - Inventory (Details Tex
Note 6 - Inventory (Details Textual) | Jun. 30, 2023 USD ($) |
NIGERIA | |
Inventory Valuation Reserves | $ 400,000 |
Note 6 - Inventory - Components
Note 6 - Inventory - Components of Inventory (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Finished goods | $ 4,714,372 | $ 4,764,643 |
Fabricated assemblies | 69,726 | 69,726 |
Reserve on finished goods | (400,000) | (400,000) |
Total inventory | $ 4,384,098 | $ 4,434,369 |
Note 8 - Leases - Operating Lea
Note 8 - Leases - Operating Lease Balance Sheet Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Total lease cost | $ 48,543 | $ 55,942 | $ 111,682 | $ 111,161 | |
Operating lease right-of-use assets | 84,610 | 84,610 | $ 197,355 | ||
Operating lease liabilities, current portion | 77,379 | 77,379 | 159,665 | ||
Operating lease liabilities, non-current portion | 9,570 | 9,570 | $ 37,829 | ||
Total operating lease liabilities | $ 86,949 | $ 86,949 | |||
Weighted average remaining lease term (in years) – operating leases (Year) | 11 months 4 days | 11 months 4 days | 11 months 15 days | ||
Weighted average discount rate – operating leases | 5.50% | 5.50% | 5.50% | ||
Cash paid for amounts included in the measurement of operating lease liabilities for the six months ended June 30, 2023 and 2022: | $ 138,634 | $ 144,985 | |||
2023 (6 months remaining) | $ 50,950 | 50,950 | |||
2024 | 38,808 | 38,808 | |||
Total future lease payments | 89,758 | 89,758 | |||
Less: imputed interest | (2,809) | (2,809) | |||
Total | 86,949 | 86,949 | |||
Approximation [Member] | |||||
Operating lease right-of-use assets | 84,610 | 84,610 | $ 197,355 | ||
Total operating lease liabilities | 86,949 | 86,949 | 197,494 | ||
Total | $ 86,949 | $ 86,949 | $ 197,494 |
Note 9 - Convertible Note Pay_2
Note 9 - Convertible Note Payable (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 22, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | |
Class of Warrant or Right, Issued During Period (in shares) | 0 | 0 | 0 | 0 | |||
Warrants Issued in Connection With Note [Member] | |||||||
Class of Warrant or Right, Issued During Period (in shares) | 200,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3 | ||||||
The Note [Member] | |||||||
Debt Instrument, Face Amount | $ 2,200,000 | $ 2,200,000 | $ 2,200,000 | ||||
Debt Instrument, Fair Value Disclosure | 2,498,780 | 2,498,780 | 2,596,203 | ||||
The Note [Member] | Senior Secured Promissory Note [Member] | |||||||
Debt Instrument, Face Amount | $ 2,200,000 | $ 2,200,000 | $ 2,200,000 | $ 2,200,000 | |||
Proceeds from Debt, Net of Issuance Costs | $ 2,002,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 12% | 12% | 10% | |||
Stock Issued During Period, Shares, Commitment Fee (in shares) | 700,000 | ||||||
Shares Issued, Price Per Share (in dollars per share) | $ 1 | ||||||
Debt Instrument, Interest Rate, Default | 18% | 18% | 18% | 18% | |||
Debt Instrument, Default, Percentage Increase In Principal | 30% | 30% | 30% | ||||
Debt Instrument, Convertible, Number of Equity Instruments | 1,684,576 | ||||||
Debt Instrument, Convertible, Percentage of Outstanding Stock | 19.90% |
Note 10 - Earnings (Loss) Per_3
Note 10 - Earnings (Loss) Per Share - Common Stock ("EPS") - Securities Excluded From the Diluted Per Share Calculation (Details) - Exercise Price Greater Than Average Market Price Of Common Shares [Member] - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive securities (in shares) | 5,044,759 | 4,901,848 | 5,044,759 | 4,901,848 |
Share-Based Payment Arrangement, Option [Member] | ||||
Antidilutive securities (in shares) | 172,734 | 212,461 | 172,734 | 212,461 |
Warrant [Member] | ||||
Antidilutive securities (in shares) | 4,872,025 | 4,689,387 | 4,872,025 | 4,689,387 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 08, 2022 | Jun. 18, 2021 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement, Expense | $ 77,396 | $ 83,699 | $ 148,771 | $ 193,396 | ||||||
Stock Issued During Period, Value, Acquisitions | $ 600,004 | |||||||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 16,002 | $ 12,002 | $ 18,006 | 22,020 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | 0 | 0 | ||||||
Class of Warrant or Right, Issued During Period (in shares) | 0 | 0 | 0 | 0 | ||||||
Common Stock [Member] | ||||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 28,020 | 26,006 | ||||||||
Stock Issued During Period, Value, Acquisitions | $ 27 | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 40,000 | 1,250 | 274,250 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited (in shares) | 14,375 | 19,834 | 1,250 | |||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares) | 23,150 | 15,388 | 9,117 | 9,382 | ||||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 2 | $ 1 | $ 1 | $ 1 | ||||||
Common Stock [Member] | Director [Member] | ||||||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares) | 23,150 | 9,117 | 38,538 | 18,499 | ||||||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 16,002 | $ 18,006 | $ 28,004 | $ 40,026 | ||||||
Restricted Stock [Member] | ||||||||||
Share-Based Payment Arrangement, Expense | $ 54,781 | $ 51,204 | $ 113,837 | $ 91,044 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 40,000 | 275,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value | $ 31,200 | $ 592,075 | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited (in shares) | 34,209 | 1,250 | ||||||||
Swivel Secure Europe [Member] | ||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 269,060 | |||||||||
Business Combination, Indemnification Assets, Amount as of Acquisition Date | $ 89,687 | |||||||||
Stock Issued During Period, Value, Acquisitions | $ 600,004 | |||||||||
Business Acquisition, Share Price (in dollars per share) | $ 2.23 | |||||||||
Employee Stock Purchase Plan [Member] | ||||||||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 789,000 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 85% | |||||||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans (in shares) | 28,020 | 26,006 | ||||||||
Share-Based Payment Arrangement, Expense | $ 3,563 | $ 8,314 |
Note 13 - Fair Value Measurem_3
Note 13 - Fair Value Measurement of Convertible Note Payable (Details Textual) - The Note [Member] - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 22, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Debt Instrument, Face Amount | $ 2,200,000 | $ 2,200,000 | ||
Senior Secured Promissory Note [Member] | ||||
Debt Instrument, Face Amount | $ 2,200,000 | $ 2,200,000 | $ 2,200,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10% | 12% | 10% | |
Debt Instrument, Interest Rate, Default | 18% | 18% | 18% | |
Debt Instrument, Default, Percentage Increase In Principal | 30% | 30% | 30% | |
Debt Instrument, Likelihood of Default | 50% | 50% | ||
Senior Secured Promissory Note [Member] | Measurement Input, Discount Rate [Member] | ||||
Debt Instrument, Measurement Input | 13.80 | 0.1518 | 0.1504 | |
Senior Secured Promissory Note [Member] | Minimum [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | 10% | ||
Senior Secured Promissory Note [Member] | Maximum [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | 12% |
Note 13 - Fair Value Measurem_4
Note 13 - Fair Value Measurement of Convertable Note Payable - Fair Value Measured On Recurring and Nonrecurring Basis (Details) - The Note [Member] - Senior Secured Promissory Note [Member] - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Convertible note at fair value | $ 2,498,780 | $ 2,596,203 |
Fair Value, Inputs, Level 1 [Member] | ||
Convertible note at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Convertible note at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Convertible note at fair value | $ 2,498,780 | $ 2,596,203 |
Note 13 - Fair Value Measurem_5
Note 13 - Fair Value Measurement of Convertable Note Payable - Unobsesrvable Input Reconciliation (Details) - Senior Secured Promissory Note [Member] - The Note [Member] - USD ($) | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Balance | $ 2,454,212 | $ 2,596,203 |
Purchases and issuances | 0 | |
Change in fair value for the three months ended March 31, 2023 | 44,568 | (141,991) |
Balance | $ 2,498,780 | $ 2,454,212 |
Note 14 - Major Customers and_2
Note 14 - Major Customers and Accounts Receivables (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue Benchmark [Member] | ||||
Concentration Risk, Number of Major Customers | 1 | 1 | ||
Revenue Benchmark [Member] | One Customer [Member] | ||||
Concentration Risk, Percentage | 12% | 14% | ||
Revenue Benchmark [Member] | Two Customers [Member] | ||||
Concentration Risk, Number of Major Customers | 2 | |||
Concentration Risk, Percentage | 30% | |||
Accounts Receivable [Member] | One Customer [Member] | ||||
Concentration Risk, Number of Major Customers | 3 | 1 | ||
Concentration Risk, Percentage | 63% | 35% |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Expense (Benefit), Total | $ 143,000 | $ 0 | $ 143,000 | $ 0 |
Deferred Income Tax Expense (Benefit) | (13,000) | 0 | ||
United States, Hong Kong, and Nigeria [Member] | ||||
Income Tax Expense (Benefit), Total | $ 0 | $ 0 | 0 | $ 0 |
SPAIN | ||||
Income Tax Expense (Benefit), Total | 143,000 | |||
Current Income Tax Expense (Benefit) | 156,000 | |||
Deferred Income Tax Expense (Benefit) | $ 13,000 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - $ / shares | 6 Months Ended | |||
Aug. 10, 2023 | Jul. 20, 2023 | Jul. 19, 2023 | Jun. 30, 2023 | |
Subsequent Event [Member] | ||||
Share Price (in dollars per share) | $ 0.68 | |||
Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years | |||
Restricted Stock [Member] | Subsequent Event [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in shares) | 13,333 | 20,000 | ||
Restricted Stock [Member] | Subsequent Event [Member] | Share-Based Payment Arrangement, Nonemployee [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 13,236 | |||
Restricted Stock [Member] | Subsequent Event [Member] | Share-Based Payment Arrangement, Employee [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 12,500 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 3 years |