Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jun. 04, 2024 | Jun. 30, 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 | FY | ||
Document Fiscal Year Focus | 2023 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 | 101 CRAWFORDS CORNER ROAD, SUITE 4116 | ||
Entity Address, City or Town | HOLMDEL | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07753 | ||
City Area Code | 732 | ||
Local Phone Number | 359-1100 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Trading Symbol | BKYI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,303,798 | ||
Entity Common Stock, Shares Outstanding | 1,814,228 | ||
Auditor Name | Bush and Associates CPA | ||
Auditor Firm ID | 6797 | ||
Auditor Location | Henderson, Nevada |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 511,400 | $ 2,635,522 |
Accounts receivable, net | 1,201,526 | 1,522,784 |
Due from factor | 99,320 | 49,500 |
Inventory, net of reserve | 445,740 | 4,434,369 |
Prepaid expenses and other | 364,171 | 342,706 |
Total current assets | 2,622,157 | 8,984,881 |
Equipment and leasehold improvements, net | 220,177 | 107,413 |
Capitalized contract costs, net | 229,806 | 283,069 |
Deposits and other assets | 0 | 8,712 |
Operating lease right-of-use assets | 36,905 | 197,355 |
Intangible assets, net | 1,407,990 | 1,762,825 |
Total non-current assets | 1,894,878 | 2,359,374 |
TOTAL ASSETS | 4,517,035 | 11,344,255 |
LIABILITIES | ||
Accounts payable | 1,316,014 | 1,108,279 |
Accrued liabilities | 1,305,848 | 1,009,123 |
Convertible note payable | 0 | 2,596,203 |
Government loan – BBVA Bank, current portion | 138,730 | 120,000 |
Deferred revenue - current | 414,968 | 462,418 |
Operating lease liabilities, current portion | 37,829 | 159,665 |
Total current liabilities | 3,213,389 | 5,455,688 |
Deferred revenue, net of current portion | 28,296 | 52,134 |
Deferred tax liability | 22,998 | 170,281 |
Government loan – BBVA Bank, net of current portion | 188,787 | 326,767 |
Operating lease liabilities, net of current portion | 0 | 37,829 |
Total non-current liabilities | 240,081 | 587,011 |
TOTAL LIABILITIES | 3,453,470 | 6,042,699 |
Commitments (Note O) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 1,032,777 and 552,739 of $.0001 par value at December 31, 2023 and December 31, 2022, respectively | 103 | 55 |
Additional paid-in capital | 126,047,851 | 122,029,476 |
Accumulated other comprehensive loss | 22,821 | (242,602) |
Accumulated deficit | (125,007,210) | (116,485,373) |
TOTAL STOCKHOLDERS’ EQUITY | 1,063,565 | 5,301,556 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 4,517,035 | $ 11,344,255 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 1,032,777 | 552,739 |
Common stock, shares outstanding (in shares) | 1,032,777 | 552,739 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | ||
Revenues | $ 7,754,905 | $ 7,020,258 |
Costs and other expenses | ||
Costs and other expenses | 6,323,586 | 2,439,570 |
Gross Profit | 1,431,319 | 4,580,688 |
Operating expenses | ||
Selling, general and administrative | 7,862,710 | 9,364,887 |
Research, development and engineering | 2,394,926 | 3,252,236 |
Reversal of earnout payable – Swivel acquisition | 0 | (500,000) |
Impairment of goodwill | 0 | 2,387,193 |
Total operating expenses | 10,257,636 | 14,504,316 |
Operating loss | (8,826,317) | (9,923,628) |
Other income (expense) | ||
Interest income | 11,533 | 233 |
Gain from sale of asset | 20,000 | 0 |
Loss on foreign currency transactions | (39,000) | 0 |
Investment-debt security reserve | 0 | (452,821) |
Loan transaction costs | 0 | (1,147,456) |
Change in fair value of convertible note | 396,203 | (396,203) |
Interest expense | (218,270) | (10,462) |
Total other income (expense) | 170,466 | (2,006,709) |
Loss before provision for income tax benefit | (8,655,851) | (11,930,337) |
Provision for income tax benefit | 134,014 | 20,434 |
Net loss | (8,521,837) | (11,909,903) |
Comprehensive loss: | ||
Net loss | (8,521,837) | (11,909,903) |
Other comprehensive loss- Foreign translation adjustment | 265,423 | (242,602) |
Comprehensive loss | $ (8,256,414) | $ (12,152,505) |
Basic and Diluted Loss per Common Share (in dollars per share) | $ (15.21) | $ (27.26) |
Weighted Average Shares Outstanding: | ||
Basic and Diluted (in shares) | 560,278 | 436,821 |
Service [Member] | ||
Revenues | ||
Revenues | $ 2,218,885 | $ 1,789,720 |
Costs and other expenses | ||
Costs and other expenses | 861,936 | 722,152 |
License [Member] | ||
Revenues | ||
Revenues | 4,342,010 | 4,584,052 |
Costs and other expenses | ||
Costs and other expenses | 1,174,919 | 906,417 |
Hardware [Member] | ||
Revenues | ||
Revenues | 1,194,010 | 646,486 |
Costs and other expenses | ||
Costs and other expenses | 700,231 | 411,001 |
Hardware Reserve [Member] | ||
Costs and other expenses | ||
Costs and other expenses | $ 3,586,500 | $ 400,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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 | 478,475 | ||||
Balance at Dec. 31, 2021 | $ 48 | $ 120,190,877 | $ 0 | $ (104,575,470) | $ 15,615,455 |
Issuance of common stock for directors’ fees (in shares) | 2,202 | ||||
Issuance of common stock for directors’ fees | $ 0 | 76,043 | 0 | 76,043 | |
Issuance of restricted common stock to employees (in shares) | 15,444 | ||||
Issuance of restricted common stock to employees | $ 1 | (1) | 0 | 0 | 0 |
Forfeiture of restricted stock (in shares) | (583) | ||||
Forfeiture of restricted stock | $ 0 | 0 | 0 | 0 | 0 |
Issuance of common stock pursuant to Swivel purchase agreement (in shares) | 14,948 | ||||
Issuance of common stock pursuant to Swivel purchase agreement | $ 2 | 600,001 | 0 | 0 | 600,003 |
Issuance of common stock for note issuance fees (in shares) | 38,889 | ||||
Issuance of common stock for note issuance fees | $ 4 | 699,996 | 0 | 0 | 700,000 |
Issuance of warrant in conjunction with note payable | $ 0 | 94,316 | 0 | 94,316 | |
Issuance of common stock for employee stock purchase plan (in shares) | 3,364 | ||||
Issuance of common stock for employee stock purchase plan | $ 0 | 56,380 | 0 | 0 | 56,380 |
Share based compensation for employee stock purchase plan | 0 | 18,787 | 0 | 0 | 18,787 |
Other comprehensive loss- Foreign translation adjustment | 0 | (242,602) | 0 | (242,602) | |
Share-based compensation | 0 | 293,077 | 0 | 0 | 293,077 |
Net loss | $ 0 | 0 | 0 | (11,909,903) | (11,909,903) |
Balance (in shares) at Dec. 31, 2022 | 552,739 | ||||
Balance at Dec. 31, 2022 | $ 55 | 122,029,476 | (242,602) | (116,485,373) | 5,301,556 |
Net loss | (1,688,322) | ||||
Balance at Mar. 31, 2023 | 3,756,755 | ||||
Balance (in shares) at Dec. 31, 2022 | 552,739 | ||||
Balance at Dec. 31, 2022 | $ 55 | 122,029,476 | (242,602) | (116,485,373) | 5,301,556 |
Net loss | (4,311,200) | ||||
Balance at Jun. 30, 2023 | 1,245,091 | ||||
Balance (in shares) at Dec. 31, 2022 | 552,739 | ||||
Balance at Dec. 31, 2022 | $ 55 | 122,029,476 | (242,602) | (116,485,373) | 5,301,556 |
Net loss | (6,149,023) | ||||
Balance at Sep. 30, 2023 | (485,549) | ||||
Balance (in shares) at Dec. 31, 2022 | 552,739 | ||||
Balance at Dec. 31, 2022 | $ 55 | 122,029,476 | (242,602) | (116,485,373) | 5,301,556 |
Issuance of common stock for directors’ fees (in shares) | 3,078 | ||||
Issuance of common stock for directors’ fees | $ 0 | 39,007 | 0 | 39,007 | |
Issuance of restricted common stock to employees (in shares) | 16,404 | ||||
Issuance of restricted common stock to employees | $ 1 | (1) | 0 | 0 | 0 |
Forfeiture of restricted stock (in shares) | (3,752) | ||||
Forfeiture of restricted stock | $ 0 | (3,105) | 0 | 0 | (3,105) |
Issuance of common stock for note issuance fees (in shares) | 283,472 | ||||
Issuance of common stock for note issuance fees | $ 29 | 892,909 | 0 | 0 | 892,938 |
Issuance of warrant in conjunction with note payable | $ 0 | 3,403,322 | 0 | 0 | 3,403,322 |
Issuance of common stock for employee stock purchase plan (in shares) | 2,947 | ||||
Issuance of common stock for employee stock purchase plan | $ 0 | 17,478 | 0 | 0 | 17,478 |
Share based compensation for employee stock purchase plan | 0 | 4,343 | 0 | 0 | 4,343 |
Other comprehensive loss- Foreign translation adjustment | 0 | 0 | 265,423 | 0 | 265,423 |
Share-based compensation | 0 | 225,487 | 0 | 0 | 225,487 |
Net loss | $ 0 | 0 | 0 | (8,521,837) | (8,521,837) |
Exercise of warrants (in shares) | 177,889 | ||||
Exercise of warrants | $ 18 | 302 | 0 | 0 | 320 |
Issuance costs | $ 0 | (561,367) | 0 | 0 | (561,367) |
Balance (in shares) at Dec. 31, 2023 | 1,032,777 | ||||
Balance at Dec. 31, 2023 | $ 103 | $ 126,047,851 | $ 22,821 | $ (125,007,210) | 1,063,565 |
Balance at Mar. 31, 2023 | 3,756,755 | ||||
Net loss | (2,479,878) | ||||
Balance at Jun. 30, 2023 | 1,245,091 | ||||
Net loss | (1,838,013) | ||||
Balance at Sep. 30, 2023 | $ (485,549) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (8,521,837) | $ (11,909,903) |
Adjustments to reconcile net loss to cash used for operating activities: | ||
Depreciation | 75,136 | 43,794 |
Impairment of goodwill | 0 | 2,387,193 |
Reversal of earnout payable – Swivel acquisition | 0 | (500,000) |
Amortization of intangible assets and write-off | 354,558 | 298,113 |
Amortization of resalable software license rights | 0 | 48,752 |
Loan transaction costs | 0 | 1,147,456 |
Loss on foreign currency | 39,000 | 0 |
Reserve for investment security | 0 | 452,821 |
Reserve for inventory | 3,586,500 | 400,000 |
Reserve for note receivable | 0 | 186,000 |
Allowance for doubtful account | 750,000 | 360,000 |
Amortization of debt discount | 0 | 0 |
Amortization of capitalized contract costs | 171,291 | 106,624 |
Share based and warrant compensation for employees and consultants | 226,725 | 311,864 |
Stock based fees to directors | 39,007 | 76,043 |
Bad debt expense | 100,000 | 130,111 |
Change in fair value of convertible note | (396,203) | 396,203 |
Deferred income tax benefit | (134,014) | (20,434) |
Amortization of operating lease right-of-use assets | 160,449 | 155,353 |
Accounts receivable | (428,742) | (339,383) |
Due from factor | (49,820) | 0 |
Capitalized contract costs | (118,028) | (140,681) |
Inventory | 402,129 | 106,291 |
Prepaid expenses and other | (21,465) | (46,655) |
Accounts payable | 57,725 | 239,144 |
Income tax payable | (121,764) | |
Accrued liabilities | 275,561 | 167,614 |
Deferred revenue | (71,288) | (120,078) |
Operating lease liabilities | (168,376) | (165,276) |
Net cash used for operating activities | (3,793,456) | (6,229,034) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of Swivel Secure, net of cash acquired of $729,905 | 0 | (623,578) |
Receipt of cash from note receivable | 0 | 9,000 |
Capital expenditures | (1,000) | (82,040) |
Net cash used for investing activities | (1,000) | (696,618) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from public offerings | 4,296,260 | 0 |
Repayment of convertible notes | (2,200,000) | 0 |
Proceeds from the exercise of warrants | 320 | 0 |
Costs incurred for issuance of common stock | (561,367) | 0 |
Proceeds from issuance of convertible notes | 0 | 2,002,000 |
Costs incurred for issuance of convertible note | 0 | (155,140) |
Repayment of government loan | (119,251) | 0 |
Proceeds from Employee Stock Purchase Plan | 17,478 | 56,380 |
Net cash (used in) provided by financing activities | 1,433,440 | 1,903,240 |
Effect of exchange rate changes | 236,894 | (96,112) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (2,124,122) | (5,118,524) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,635,522 | 7,754,046 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 511,400 | 2,635,522 |
Cash paid during the year for: | ||
Taxes | 0 | 25,682 |
Interest | 218,270 | 10,462 |
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 | 1,258,087 |
Accounts payable and accrued expenses acquired from Swivel Secure | 0 | 431,884 |
Deferred tax liability from the acquisition of Swivel Secure | 0 | 190,715 |
Common stock issued for acquisition of Swivel Secure | 0 | 600,004 |
Common stock issued for acquisition of note payable | 0 | 700,000 |
Issuance of warrant for acquisition of note payable | 0 | 94,316 |
Operating lease right-of-use asset and liability for new lease | 0 | 105,893 |
Swivel Secure Europe [Member] | ||
Noncash investing and financing activities: | ||
Government loan acquired from Swivel Secure | $ 0 | $ 544,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Cash acquired from purchase | $ 729,905 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | 9B. OTHER INFORMATION None |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Note A - The Company and Summar
Note A - The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE A THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company, founded in 1993, Going Concern and Basis of Presentation The Company has historically financed operations through access to the capital markets by issuing convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. As of the date of this report, the Company does not twelve 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 Reverse Stock Split 1 December 21, 2023. 1 18 Foreign Currency The Company accounts for foreign currency transactions pursuant to ASC 830, Foreign Currency Matters 830” 830, The functional currency of Swivel Secure Europe, SA is the Euro. Under ASC 830, Summary of Significant Accounting Policies A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. 2. Use of Estimates Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to accounts receivable, inventory, intangible assets and goodwill, fair value of convertible note payable, and income taxes. 3. Revenue Recognition In accordance with ASC 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 All of the Company's performance obligations, and associated revenues, 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 consists of fees for perpetual and subscription 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 term of the contract begins. Revenue is recognized over time on a ratable basis over the contract term. Support and maintenance contracts are one five 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 Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customers for which the contractual maintenance terms have not 12 60 12 December 31, 2023 2022 4. Business Combinations In accordance with ASC 805, Business Combinations 805 The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are not may may may may one 5. Goodwill and acquired intangible assets Goodwill is not may not December 31st 2022. Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. 6. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three December 31, 2023 2022 7. 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. Accounts receivable at December 31, 2023 2022 December 31, 2023 2022 Accounts receivable $ 2,207,311 $ 2,096,569 Allowance for doubtful accounts (1,005,785 ) (573,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,201,526 $ 1,522,784 Bad debt expenses (if any) are recorded in selling, general, and administrative expense. The allowance for doubtful accounts for the years ended December 31, 2023 2022 Balance at Beginning of Year Charged to Costs and Expenses Deductions from Reserves Balance at End of Year Year ended December 31, 2023 Allowance for Doubtful Accounts $ 573,785 $ 750,000 $ (318,000 ) $ 1,005,785 Year ended December 31, 2022 Allowance for Doubtful Accounts $ 213,785 $ 360,000 $ - $ 573,785 8. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment 3 - 5 Furniture and fixtures 3 - 5 Software 3 Leasehold improvements life or lease term Intangible assets other than goodwill consist of patents, trade name, proprietary software, and customer relationships. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. Trade names, proprietary software, and customer relationships are amortized over the economic useful life. 9. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may no 2023 2022 10. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 2023 2022 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. 12. Earnings Per Share of Common Stock ( EPS ) The Company’s EPS is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and warrants, when the effect of their inclusion is dilutive. All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1 December 21, 2023. 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, three not may 718. The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations: Year ended December 31, 2023 2022 Selling, general and administrative $ 209,134 $ 310,017 Research, development and engineering 56,598 77,890 $ 265,732 $ 387,907 14. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may The Company accounts for uncertain tax provisions in accordance with ASC 740. 15 . Leases In accordance with ASC 842, Leases 842 12 At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset, whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has the right to direct the use of the asset. Leases with a term greater than 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 16. The Fair Value Measurement Option The Company has elected the fair value measurement option for convertible debt with embedded derivatives that require bifurcation, and record the entire hybrid financing instrument at fair value under the guidance of ASC 825, Financial Instruments one 17. Fair Value Measurements 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 Company issued a convertible note which included an original issue discount, conversion features and a detachable warrant, as further discussed in Note M. The detachable warrant represents a freestanding, separable equity-linked financial instrument recorded at fair value. The fair value of the detachable warrant was calculated using a Black-Scholes valuation model. The Company elected the fair value option for the convertible debt which was determined based on significant unobservable inputs including the likelihood of default, the estimated date at which the default could take place, and the present value discount rate, which causes it to be classified as a Level 3 not 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 December 22, 2022: 1. 2. 3. 4. 5. 6. The following table shows the changes in fair value measurements for the convertible note using significant unobservable inputs (Level 3 December 31, 2023 Beginning balance $ 2,596,203 Purchases and issuances (2,200,000 ) Day one change in value of hybrid instrument (396,203 ) Ending balance $ - 18. Recent Accounting Pronouncements In June 2016, 2016 13, 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 January 1, 2023. |
Note B - Revenue From Contracts
Note B - Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE B REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended December 31, 2023 2022 North December 31, America Africa EMESA* Asia 2023 License fees $ 1,971,348 $ 552,630 $ 1,801,381 $ 16,651 $ 4,342,010 Hardware 147,815 0 1,013,295 32,900 1,194,010 Services 1,116,935 101,816 981,848 18,286 2,218,885 Total revenues $ 3,236,098 $ 654,446 $ 3,796,524 $ 67,837 $ 7,754,905 North December 31, America Africa EMESA* Asia 2022 License fees $ 1,856,814 $ 517,161 $ 2,124,088 $ 85,989 $ 4,584,052 Hardware 422,275 25,833 19,914 178,464 646,486 Services 1,270,067 83,306 436,293 54 1,789,720 Total revenues $ 3,549,156 $ 626,300 $ 2,580,295 $ 264,507 $ 7,020,258 * EMESA – Europe, Middle East, South America Revenue recognized during the year ended December 31, 2023 December 31, 2022 December 31, 2023 2022 Transaction Price Allocated to the Remaining Performance Obligations ASC 606 not ● The performance obligation is part of a contract that has an original expected duration of one 606 10 50 14. Deferred revenue represents the Company’s remaining performance obligations related to prepaid support and maintenance, all of which is expected to be recognized from one five |
Note C - Swivel Secure Europe,
Note C - Swivel Secure Europe, SA Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE C SWIVEL SECURE EUROPE, SA ACQUISITION On March 8, 2022, January 31, 2023, not 20 The business combination has been accounted for as an acquisition and, in accordance with ASC 805. no Purchase consideration: Total cash paid, including working capital adjustment $ 1,273,483 Earnout payable 500,000 Common stock issued 600,004 Total purchase price consideration $ 2,373,487 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 729,905 Accounts receivable 702,886 Equipment acquired 65,640 Other assets 20,708 Intangible assets 762,860 Goodwill 1,258,087 Total estimated assets acquired 3,540,086 Accounts payable and accrued expenses 431,884 Government loan 544,000 Deferred tax liability 190,715 Total liabilities assumed 1,166,599 Total estimated fair value of assets acquired and liabilities assumed $ 2,373,487 The fair value of the assets acquired and liabilities assumed was less than the purchase price, resulting in the recognition of goodwill. The goodwill reflected the value of the synergies the Company expected to realize and the assembled workforce. Refer to Note K for more information regarding the impairment of goodwill. The significant intangible asset identified in the purchase price allocation discussed above was Customer Relationships. To value the Customer Relationships, the Company utilized the Excess Earnings Method, which isolates the value of the specific intangible asset by discounting its income stream to present value. The government loan was issued through BBVA Bank during the COVID- 19 May 2022 April 2026. The following table presents the final fair values and useful lives of the identifiable intangible assets acquired: Estimated useful life Amount (in years) Customer relationships $ 762,860 7 Total identifiable intangible assets $ 762,860 As discussed above, the earnout payable was not |
Note D - Fair Values of Financi
Note D - Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE D 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 notes and loan payables approximated fair value as the interest rates related to the financial instruments approximated market. |
Note E - Concentration of Risk
Note E - Concentration of Risk | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE E CONCENTRATION OF RISK Financial instruments which potentially subject the Company to risk primarily consist of cash, and cash equivalents, investment in debt security, and accounts receivables. The Company maintains its cash and cash equivalents with various financial institutions, which, at times may not December 31, 2023. December 31, 2022. not The Company extends credit to customers on an unsecured basis in the normal course of business. The Company’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances. For the year ended December 31, 2023 three December 2022 no 10% At December 31, 2023 three December 31, 2022 one |
Note F - Note Receivable
Note F - Note Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Notes Receivable [Text Block] | NOTE F NOTE RECEIVABLE During the third 2020, not nine 9 December 31, 2020. February 17, 2022, December 6, 2023. May 5, 2022, eight February 25, 2022, nineteen July 6, 2022, February 6, 2024. 2022. August 12, 2020. December 31, December 31, 2023 2022 Note receivable $ - $ 195,000 Repayment of note - (9,000 ) Allowance for doubtful account - (186,000 ) Note receivable, net of allowance - - Current portion, net of allowance $ - $ - Noncurrent portion, net of allowance $ - $ - |
Note G - Inventory
Note G - Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE G INVENTORY Inventory is stated at the lower of cost, determined on a first first 2022 2023 Inventory is comprised of the following as of December 31: 2023 2022 Finished goods $ 4,373,056 $ 4,764,643 Fabricated assemblies 59,184 69,726 Reserve on finished goods (3,986,500 ) (400,000 ) Total inventory $ 445,740 $ 4,434,369 |
Note H - Resalable Software Lic
Note H - Resalable Software Licenses Rights | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | NOTE H RESALABLE SOFTWARE LICENSES RIGHTS On December 31, 2015, third not 2021 2022, 2022, December 31, 2023 2022 December 31, 2022. |
Note I - Investment in Debt Sec
Note I - Investment in Debt Security | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE I INVESTMENT IN DEBT SECURITY The Company purchased a 4,000,000 Hong Kong dollar denominated Bond Certificate with a financial institution in Hong Kong in September 2020 June 2021. 2022 no |
Note J - Equipment and Leasehol
Note J - Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE J EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements consisted of the following as of December 31: 2023 2022 Equipment $ 1,012,958 $ 825,058 Furniture and fixtures 225,978 225,978 Software 49,143 49,143 Leasehold improvements 34,903 34,903 1,322,982 1,135,082 Less accumulated depreciation and amortization (1,102,805 ) (1,027,669 ) Total $ 220,177 $ 107,413 Depreciation was $75,136 and $43,794 for 2023 2022 |
Note K - Intangible Assets And
Note K - Intangible Assets And Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE K INTANGIBLE ASSETS AND GOODWILL Intangible assets consisted of the following as of December 31: 2023 2022 Trade name $ 130,000 $ 130,000 Proprietary software 420,000 420,000 Customer relationships 1,692,860 1,692,860 Patents and patents pending 365,080 365,080 2,607,940 2,607,940 Less accumulated amortization (1,199,950 ) (845,115 ) Total $ 1,407,990 $ 1,762,825 Aggregate amortization expense for 2023 2022 five Years ending December 31 2024 $ 311,000 2025 $ 267,000 2026 $ 224,000 2027 $ 223,000 2028 $ 141,000 Thereafter $ 241,990 Total $ 1,407,990 Goodwill The Company concluded the amounts in goodwill had been fully impaired and accordingly wrote-off the entire balance in full as at December 31, 2022. |
Note L - Accrued Liabilities
Note L - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE L ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31: 2023 2022 Compensation $ 326,007 $ 377,958 Compensated absences 327,252 378,874 Accrued legal and accounting fees 264,976 110,008 Taxes 152,986 7,000 Employee expenses reimbursement 124,209 114,209 Sales tax payable 19,282 17,594 Other 91,136 3,480 Total $ 1,305,848 $ 1,009,123 |
Note M - Convertible Note Payab
Note M - Convertible Note Payable | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE M 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 six seven In connection with the issuance of the Note, the Company issued to the investor 38,889 shares of Common Stock (the “Commitment Shares”) valued at $18.00 per share and a warrant (the “Warrant”) to purchase 11,112 shares of common stock (the “Warrant Shares”) at an exercise price of $54.00 per share, exercisable commencing on the date of issuance with a term of five #3 On October 31, 2023 December 21, 2023 As of December 31, 2023 |
Note N - Leases
Note N - Leases | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE N LEASES The Company’s leases office space in New Jersey, Minnesota, New Hampshire, Madrid and Hong Kong with lease termination dates in 2023 2024. Year ended Year ended December 31, December 31, 2023 2022 Lease cost Operating lease cost $ 166,161 $ 254,649 Total lease cost $ 166,161 $ 254,649 Balance sheet information Operating right-of-use assets $ 36,905 $ 197,355 Operating lease liabilities, current portion $ 37,829 $ 159,665 Operating lease liabilities, non-current portion - 37,829 Total operating lease liabilities $ 37,829 $ 197,494 Weighted average remaining lease term (in years) – operating leases 0.67 0.96 Weighted average discount rate – operating leases 5.50 % 5.50 % Supplemental cash flow information related to leases were as follows: Cash paid for amounts included in the measurement of operating lease liabilities $ 213,783 $ 259,558 Maturities of operating lease liabilities were as follows as of December 31, 2023: 2024 $ 38,808 2025 - Total future lease payments $ 38,808 Less: imputed interest (979 ) Total $ 37,829 |
Note O - Commitments and Contin
Note O - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | NOTE O 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 December 31, 2023 not |
Note P - Equity
Note P - Equity | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE P EQUITY 1. 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 shares of preferred stock, $.0001 par value per share, in one 2. Holders of common stock have equal rights to receive dividends when, as and if declared by the Board of Directors, out of funds legally available therefor. Holders of common stock have one not Holders of common stock are entitled, upon liquidation of the Company, to share ratably in the net assets available for distribution, subject to the rights, if any, of holders of any preferred stock then outstanding. Shares of common stock are not no Issuances of Common Stock On December 22, 2022, On March 8, 2022, 20 On June 18, 2021, 2021 first may June 17, 2031. 2023 2022 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. Restricted stock is expensed ratably over the term of the restriction period. The Company issued 16,404 shares of restricted common stock to certain employees of the Company and 3,752 of shares of restricted common stock were forfeited during fiscal year 2023 2022. three Restricted stock compensation for the years ended December 31, 2023 2022 Issuances to Directors, Executive Officers & Consultants During the 2023 2022 Warrants Warrants Issued with Convertible Note: See Note M - Convertible Note Payable for the warrant issued with a convertible note in 2022. Valuation Assumptions for Warrants: The Company records the warrants at their fair value which is determined using the Black-Scholes valuation model on the date of the grant. The fair value of the warrants issued in 2023 2022 Years ended December 31, 2023 2022 Weighted average risk-free interest rate 4.63 % 3.70 % Weighted average exercise price $ 3.15 $ 3.00 Weighted average exercise period 5 5 Weighted average Volatility of stock price 817 % 108.60 % The volatility for each issuance is determined based on the review of the experience of the weighted average of historical daily price changes of the Company’s common stock over the expected exercise period. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the years to maturity. A summary of warrant activity is as follows: Weighted Weighted average average remaining Aggregate Total exercise life intrinsic Warrants price (in years) value Outstanding, as of December 31, 2021 260,525 106.42 3.48 — Granted 11,112 54.00 Exercised — — Forfeited — — Expired (965 ) 518.40 Outstanding, as of December 31, 2022 270,672 $ 104.95 2.59 — Granted 2,534,148 3.15 Exercised (177,890 ) 0.0018 Forfeited — — Expired (438 ) — Outstanding, as of December 31, 2023 2,626,492 $ 19.09 4.37 — The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $3.00, $10.62, and $39.78 as of December 31, 2023, 2022 2021 no December 31, 2023, 2022 2021 |
Note Q - Stock Options
Note Q - Stock Options | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE Q STOCK OPTIONS 2023 On December 14, 2024, 2023 2023 may not 10% not ten 2023 may may 2023 December 13, 2033, 2023 2015 On January 27, 2016, 2015 “2015 2015 2021, 2015 2015 2015 may not ten may not 2015 may may 2015 December 2025. Non-Plan Stock Options Periodically, the Company has granted options outside of the 2015 Stock Option Activity Information summarizing option activity is as follows: Weighted Weighted average Number of Options average remaining Aggregate 2015 Non Total exercise life intrinsic Plan Plan price (in years) value Outstanding, as of December 31, 2021 5,072 6,771 11,843 $ 299.61 3.03 $ 0 Granted — — — — Exercised — — — — Forfeited — — — — Expired — (530 ) (530 ) 311.11 Outstanding, as of December 31, 2022 5,072 6,241 11,313 $ 299.07 2.07 $ 0 Granted — — — — Exercised — — — — Forfeited (151 ) — (151 ) 94.44 Expired (1,548 ) (348 ) (1,896 ) 256.30 Outstanding, as of December 31, 2023 3.373 5,893 9,266 $ 311.16 0.96 $ 0 Vested or expected to vest at December 31, 2023 9,266 $ 311.16 0.96 $ 0 Exercisable at December 31, 2023 9,266 $ 311.16 0.96 $ 0 The options outstanding and exercisable at December 31, 2023 Options Outstanding Options Exercisable Weighted Weighted Weighted average average average Number of exercise remaining Number exercise Range of exercise prices shares price life (in years) exercisable price $93.60 - 169.92 2,205 $ 136.65 2.85 2,205 $ 136.65 $169.93 - 504.00 7,061 365.66 0.38 7,061 365.66 $93.60 - 504.00 9,266 9,266 The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $3.00, $10.62, and $39.78 as of December 31, 2023, 2022 2021 no December 31, 2023, 2022 2021 The weighted average fair value of options granted during the years ended December 31, 2023 2022 no December 31, 2023 2022 no December 31, 2023 2022 As of December 31, 2023 |
Note R - Income Taxes
Note R - Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE R INCOME TAXES The components of net loss consist of the following: Year ended Year ended December 31, December 31, 2023 2022 United States $ (7,279,970 ) $ (10,416,593 ) Hong Kong (627,146 ) (458,839 ) Nigeria (203,700 ) (143,499 ) Spain (411,021 ) (890,972 ) Total $ (8,521,837 ) $ (11,909,903 ) There was no December 31, 2023 2022 Year ended Year ended December 31, December 31, 2023 2022 Current – federal, $ - $ - state foreign 40,986 Deferred- Federal 1,175,000 States 122,000 Foreign (175,000 ) (20,434 ) Total (134,014 ) 1,276,566 Change in valuation allowance (1,297,000 ) Provision for income tax expense (benefit) $ (134,014 ) $ (20,434 ) Significant components of deferred tax assets and liabilities are as follows at December 31, 2023 2022 December 31, December 31, 2023 2022 Accrued compensation $ 112,201 $ 113,000 Allowance for doubtful accounts 90,405 169,000 Research and development expenses 1,017,551 633,000 Capital loss carry forward 114,251 114,000 Stock-based compensation 32,408 456,000 Equipment and leasehold improvements (12,353 ) (19,000 ) Intangible assets - US - 341,000 Intangible assets - Foreign (145,000 ) (170,000 ) Reserve - Foreign 150,000 - Inventory reserve 828,668 89,000 Interest expense - 44,000 Operating lease liabilities - 44,000 Other 1,000 - Tax credits 1,748,235 - Operating lease right-of-use assets 206 (44,000 ) Net operating loss and research and credit carryforwards 13,277,118 15,248,000 Valuation allowance (17,214,690 ) (17,188,000 ) Net deferred tax liability $ - $ (170,000 ) The Company has a valuation allowance against the full amount of its net deferred taxes due to the uncertainty of realization of the deferred tax assets due to operating loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than not not December 31, 2023 2022 As of December 31, 2023 2024 2037, no 382 2026 2042. A reconciliation of the effective income tax rate on operations reflected in the statements of operations to the US federal statutory income tax rate is presented below. Year ended Year ended December 31, December 31, 2023 2022 Federal statutory income tax rate 21 % 21 % State taxes, net of federal benefit (1.41 ) 0.9 Permanent differences 1.97 (4.7 ) Expiration of net operating loss and research credit carryforwards (7.84 ) (5.7 ) Expiration and forfeiture of stock options - (0.3 ) foreign rate differential (5.84 ) rate change (1.05 ) Other (9.08 ) (0.5 ) Valuation allowance (0.24 ) (10.9 ) Effective tax rate (2.5 )% (0.2 )% The Company has not 2019 2022 The Company's subsidiary in Nigeria has not no not first four not The Company's subsidiary in Hong Kong has not no not The Company believes it is not not December 31, 2023 2022 |
Note S
Note S | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | NOTE S The Company has established a savings plan under section 401 one 401 may not may no December 31, 2023 2022 |
Note T - Earnings Per Share (EP
Note T - Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE T EARNINGS PER SHARE (EPS) 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. Years ended December 31, 2023 2022 Stock options - - Warrants 1,913,566 - Total 1,913,566 - Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Years ended December 31, 2023 2022 Stock options 9,266 11,313 Warrants 270,234 270,672 Total 279,500 281,985 |
Note U - Quarterly Financial Da
Note U - Quarterly Financial Data (Unaudited and Restated) | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Error Correction [Text Block] | NOTE U QUARTERLY FINANCIAL DATA (UNAUDITED AND RESTATED) The Company is providing restated quarterly unaudited consolidated financial information for interim periods occurring within the year ended December 31, 2023. The need for the restatement arose out of the results of certain financial analysis the Company performed in the course of preparing its fiscal year-end 2023 December 31, 2023, December 31, 2023. may 2024. The restated consolidated balance sheet line items for the first, second third 2023 Originally Reported Adjustment Restated Three Months Ended Six Months Ended Nine Months Ended Three Months Ended Six Months Ended Nine Months Ended Three Months Ended Six Months Ended Nine Months Ended March 31, 2023 June 30, 2023 September 30, 2023 March 31, 2023 June 30, 2023 September 30, 2023 March 31, 2023 June 30, 2023 September 30, 2023 Accounts receivable, net $ 3,362,203 $ 3,178,785 $ 2,799,218 $ (900,000 ) $ (1,100,000 ) $ (1,300,000 ) $ 2,462,203 $ 2,078,785 $ 1,499,218 Inventory 4,427,815 4,384,098 4,289,213 (500,000 ) (1,500,000 ) (2,500,000 ) 3,927,815 2,884,098 1,789,213 Total current assets 8,936,084 8,531,330 7,820,339 (1,400,000 ) (2,600,000 ) (3,800,000 ) 7,536,084 5,931,330 4,020,339 Accumulated deficit (116,773,695 ) (118,196,573 ) (118,834,397 ) (1,400,000 ) (2,600,000 ) (3,800,000 ) (118,173,695 ) (120,796,573 ) (122,634,397 ) Total Stockholders' Equity 5,156,755 3,845,091 3,314,451 (1,400,000 ) (2,600,000 ) (3,800,000 ) 3,756,755 1,245,091 (485,549 ) Total Liabilities and Stockholders' Equity 11,106,057 10,583,245 9,749,380 (1,400,000 ) (2,600,000 ) (3,800,000 ) 9,706,057 7,983,245 5,949,380 The restated line items of the consolidated statements of comprehensive income for the three March 31, 2023, June 30, 2023, September 30, 2023 Originally Reported Adjustment Restated Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 License fees $ 2,478,556 $ 1,235,771 $ 950,015 $ (900,000 ) - - $ 1,578,556 $ 1,235,771 $ 950,015 Total revenues 3,083,767 1,928,929 1,817,108 (900,000 ) - - 2,183,767 1,928,929 1,817,108 Cost of hardware - Reserve - - - 500,000 1,000,000 1,000,000 500,000 1,000,000 1,000,000 Total costs and other expenses 820,274 606,111 476,604 500,000 1,000,000 1,000,000 1,320,274 1,606,111 1,476,604 Gross profit 2,263,493 1,322,818 1,340,504 (1,400,000 ) (1,000,000 ) (1,000,000 ) 863,493 322,818 340,504 Selling, general and administrative 1,931,732 1,943,164 1,547,376 - 200,000 200,000 1,931,732 2,143,164 1,747,376 Total Operating Expenses 2,621,891 2,501,345 2,106,062 - 200,000 200,000 2,621,891 2,701,345 2,306,062 Operating loss (358,398 ) (1,178,527 ) (765,558 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,758,398 ) (2,378,527 ) (1,965,558 ) Loss before provision for income tax (288,322 ) (1,279,878 ) (638,013 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,688,322 ) (2,479,878 ) (1,838,013 ) Net loss (288,322 ) (1,422,878 ) (637,824 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,688,322 ) (2,479,878 ) (1,838,013 ) Comprehensive Net loss (288,322 ) (1,422,878 ) (637,824 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,688,322 ) (2,479,878 ) (1,838,013 ) Comprehensive loss (216,176 ) (1,402,994 ) (602,460 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,616,176 ) (2,459,994 ) (1,802,649 ) Basic and Diluted Loss per Common Share (0.52 ) (2.56 ) (1.12 ) (2.52 ) (2.16 ) (2.11 ) (3.04 ) (4.45 ) (3.22 ) The restated line items of the consolidated statements of comprehensive income for the six June 30, 2023 nine September 30, 2023 Originally Reported Adjustment Restated Six Months Ended Nine Months Ended Six Months Ended Nine Months Ended Six Months Ended Nine Months Ended June 30, 2023 September 30, 2023 June 30, 2023 September 30, 2023 June 30, 2023 September 30, 2023 License fees $ 3,714,327 $ 4,664,341 $ (900,000 ) $ (900,000 ) $ 2,814,327 $ 3,764,341 Total revenues 5,012,696 6,829,804 (900,000 ) (900,000 ) 4,112,696 5,929,804 Cost of hardware - reserve - - 1,500,000 2,500,000 1,500,000 2,500,000 Total costs and other expenses 1,426,385 1,902,989 1,500,000 2,500,000 2,926,385 4,402,989 Gross profit 3,586,311 4,926,815 (2,400,000 ) (3,400,000 ) 1,186,311 1,526,815 Selling, general and administrative 3,874,896 5,422,272 200,000 400,000 4,074,896 5,822,272 Total Operating Expenses 5,123,237 7,229,298 200,000 400,000 5,323,237 7,629,298 Operating loss (1,536,926 ) (2,302,483 ) (2,600,000 ) (3,800,000 ) (4,136,926 ) (6,102,483 ) Loss before provision for income tax (1,568,200 ) (2,206,212 ) (2,600,000 ) (3,800,000 ) (4,168,200 ) (6,006,212 ) Net loss (1,711,200 ) (2,349,023 ) (2,600,000 ) (3,800,000 ) (4,311,200 ) (6,149,023 ) Comprehensive net loss (1,711,200 ) (2,349,023 ) (2,600,000 ) (3,800,000 ) (4,311,200 ) (6,149,023 ) Comprehensive loss (1,619,170 ) (2,221,629 ) (2,600,000 ) (3,800,000 ) (4,219,170 ) (6,021,629 ) Basic and Diluted Loss per Common Share (3.07 ) (4.12 ) (4.67 ) (6.67 ) (7.74 ) (10.79 ) |
Note V - Subsequent Events
Note V - Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE V SUBSEQUENT EVENTS On January 4, 2024, On January 5, 2024, On January 12, 2024, On February 15, 2024, On March 21, 2024, On March 27, 2024, On May 6, 2024, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Going Concern and Basis of Presentation The Company has historically financed operations through access to the capital markets by issuing convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. As of the date of this report, the Company does not twelve 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 |
Stockholders' Equity, Policy [Policy Text Block] | Reverse Stock Split 1 December 21, 2023. 1 18 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency The Company accounts for foreign currency transactions pursuant to ASC 830, Foreign Currency Matters 830” 830, The functional currency of Swivel Secure Europe, SA is the Euro. Under ASC 830, |
Consolidation, Policy [Policy Text Block] | 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | 2. Use of Estimates Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Certain significant accounting policies that contain subjective management estimates and assumptions include those related to accounts receivable, inventory, intangible assets and goodwill, fair value of convertible note payable, and income taxes. |
Revenue [Policy Text Block] | 3. Revenue Recognition In accordance with ASC 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 All of the Company's performance obligations, and associated revenues, 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 consists of fees for perpetual and subscription 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 term of the contract begins. Revenue is recognized over time on a ratable basis over the contract term. Support and maintenance contracts are one five 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 Deferred Revenue Deferred revenue includes customer advances and amounts that have been paid by customers for which the contractual maintenance terms have not 12 60 12 December 31, 2023 2022 |
Business Combinations Policy [Policy Text Block] | 4. Business Combinations In accordance with ASC 805, Business Combinations 805 The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are not may may may may one |
Goodwill and Intangible Assets, Policy [Policy Text Block] | 5. Goodwill and acquired intangible assets Goodwill is not may not December 31st 2022. Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis. |
Cash and Cash Equivalents, Policy [Policy Text Block] | 6. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three December 31, 2023 2022 |
Accounts Receivable [Policy Text Block] | 7. 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. Accounts receivable at December 31, 2023 2022 December 31, 2023 2022 Accounts receivable $ 2,207,311 $ 2,096,569 Allowance for doubtful accounts (1,005,785 ) (573,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,201,526 $ 1,522,784 Bad debt expenses (if any) are recorded in selling, general, and administrative expense. The allowance for doubtful accounts for the years ended December 31, 2023 2022 Balance at Beginning of Year Charged to Costs and Expenses Deductions from Reserves Balance at End of Year Year ended December 31, 2023 Allowance for Doubtful Accounts $ 573,785 $ 750,000 $ (318,000 ) $ 1,005,785 Year ended December 31, 2022 Allowance for Doubtful Accounts $ 213,785 $ 360,000 $ - $ 573,785 |
Property, Plant and Equipment, Policy [Policy Text Block] | 8. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment 3 - 5 Furniture and fixtures 3 - 5 Software 3 Leasehold improvements life or lease term Intangible assets other than goodwill consist of patents, trade name, proprietary software, and customer relationships. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. Trade names, proprietary software, and customer relationships are amortized over the economic useful life. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | 9. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may no 2023 2022 |
Advertising Cost [Policy Text Block] | 10. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 2023 2022 |
Research and Development Expense, Policy [Policy Text Block] | 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. |
Earnings Per Share, Policy [Policy Text Block] | 12. Earnings Per Share of Common Stock ( EPS ) The Company’s EPS is calculated by dividing net loss applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the exercise of stock options and warrants, when the effect of their inclusion is dilutive. All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1 December 21, 2023. |
Share-Based Payment Arrangement [Policy Text Block] | 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, three not may 718. The following table presents share-based compensation expenses included in the Company’s consolidated statements of operations: Year ended December 31, 2023 2022 Selling, general and administrative $ 209,134 $ 310,017 Research, development and engineering 56,598 77,890 $ 265,732 $ 387,907 |
Income Tax, Policy [Policy Text Block] | 14. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may The Company accounts for uncertain tax provisions in accordance with ASC 740. |
Lessee, Leases [Policy Text Block] | 15 . Leases In accordance with ASC 842, Leases 842 12 At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present and the classification of the lease including whether the contract involves the use of a distinct identified asset, whether the Company obtains the right to substantially all the economic benefit from the use of the asset, and whether the Company has the right to direct the use of the asset. Leases with a term greater than 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 |
Derivatives, Policy [Policy Text Block] | 16. The Fair Value Measurement Option The Company has elected the fair value measurement option for convertible debt with embedded derivatives that require bifurcation, and record the entire hybrid financing instrument at fair value under the guidance of ASC 825, Financial Instruments one |
Fair Value Measurement, Policy [Policy Text Block] | 17. Fair Value Measurements 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 Company issued a convertible note which included an original issue discount, conversion features and a detachable warrant, as further discussed in Note M. The detachable warrant represents a freestanding, separable equity-linked financial instrument recorded at fair value. The fair value of the detachable warrant was calculated using a Black-Scholes valuation model. The Company elected the fair value option for the convertible debt which was determined based on significant unobservable inputs including the likelihood of default, the estimated date at which the default could take place, and the present value discount rate, which causes it to be classified as a Level 3 not 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 December 22, 2022: 1. 2. 3. 4. 5. 6. The following table shows the changes in fair value measurements for the convertible note using significant unobservable inputs (Level 3 December 31, 2023 Beginning balance $ 2,596,203 Purchases and issuances (2,200,000 ) Day one change in value of hybrid instrument (396,203 ) Ending balance $ - |
New Accounting Pronouncements, Policy [Policy Text Block] | 18. Recent Accounting Pronouncements In June 2016, 2016 13, 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 January 1, 2023. |
Note A - The Company and Summ_2
Note A - The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2023 2022 Accounts receivable $ 2,207,311 $ 2,096,569 Allowance for doubtful accounts (1,005,785 ) (573,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,201,526 $ 1,522,784 Balance at Beginning of Year Charged to Costs and Expenses Deductions from Reserves Balance at End of Year Year ended December 31, 2023 Allowance for Doubtful Accounts $ 573,785 $ 750,000 $ (318,000 ) $ 1,005,785 Year ended December 31, 2022 Allowance for Doubtful Accounts $ 213,785 $ 360,000 $ - $ 573,785 |
Useful Lives of Property Plan and Equipment [Table Text Block] | Years Equipment and leasehold improvements Equipment 3 - 5 Furniture and fixtures 3 - 5 Software 3 Leasehold improvements life or lease term |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Year ended December 31, 2023 2022 Selling, general and administrative $ 209,134 $ 310,017 Research, development and engineering 56,598 77,890 $ 265,732 $ 387,907 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Beginning balance $ 2,596,203 Purchases and issuances (2,200,000 ) Day one change in value of hybrid instrument (396,203 ) Ending balance $ - |
Note B - Revenue From Contrac_2
Note B - Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | North December 31, America Africa EMESA* Asia 2023 License fees $ 1,971,348 $ 552,630 $ 1,801,381 $ 16,651 $ 4,342,010 Hardware 147,815 0 1,013,295 32,900 1,194,010 Services 1,116,935 101,816 981,848 18,286 2,218,885 Total revenues $ 3,236,098 $ 654,446 $ 3,796,524 $ 67,837 $ 7,754,905 North December 31, America Africa EMESA* Asia 2022 License fees $ 1,856,814 $ 517,161 $ 2,124,088 $ 85,989 $ 4,584,052 Hardware 422,275 25,833 19,914 178,464 646,486 Services 1,270,067 83,306 436,293 54 1,789,720 Total revenues $ 3,549,156 $ 626,300 $ 2,580,295 $ 264,507 $ 7,020,258 |
Note C - Swivel Secure Europe_2
Note C - Swivel Secure Europe, SA Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Purchase consideration: Total cash paid, including working capital adjustment $ 1,273,483 Earnout payable 500,000 Common stock issued 600,004 Total purchase price consideration $ 2,373,487 Fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 729,905 Accounts receivable 702,886 Equipment acquired 65,640 Other assets 20,708 Intangible assets 762,860 Goodwill 1,258,087 Total estimated assets acquired 3,540,086 Accounts payable and accrued expenses 431,884 Government loan 544,000 Deferred tax liability 190,715 Total liabilities assumed 1,166,599 Total estimated fair value of assets acquired and liabilities assumed $ 2,373,487 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated useful life Amount (in years) Customer relationships $ 762,860 7 Total identifiable intangible assets $ 762,860 |
Note F - Note Receivable (Table
Note F - Note Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2023 2022 Accounts receivable $ 2,207,311 $ 2,096,569 Allowance for doubtful accounts (1,005,785 ) (573,785 ) Accounts receivable, net of allowances for doubtful accounts $ 1,201,526 $ 1,522,784 Balance at Beginning of Year Charged to Costs and Expenses Deductions from Reserves Balance at End of Year Year ended December 31, 2023 Allowance for Doubtful Accounts $ 573,785 $ 750,000 $ (318,000 ) $ 1,005,785 Year ended December 31, 2022 Allowance for Doubtful Accounts $ 213,785 $ 360,000 $ - $ 573,785 |
Notes Receivable [Member] | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, December 31, 2023 2022 Note receivable $ - $ 195,000 Repayment of note - (9,000 ) Allowance for doubtful account - (186,000 ) Note receivable, net of allowance - - Current portion, net of allowance $ - $ - Noncurrent portion, net of allowance $ - $ - |
Note G - Inventory (Tables)
Note G - Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2023 2022 Finished goods $ 4,373,056 $ 4,764,643 Fabricated assemblies 59,184 69,726 Reserve on finished goods (3,986,500 ) (400,000 ) Total inventory $ 445,740 $ 4,434,369 |
Note J - Equipment and Leaseh_2
Note J - Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2023 2022 Equipment $ 1,012,958 $ 825,058 Furniture and fixtures 225,978 225,978 Software 49,143 49,143 Leasehold improvements 34,903 34,903 1,322,982 1,135,082 Less accumulated depreciation and amortization (1,102,805 ) (1,027,669 ) Total $ 220,177 $ 107,413 |
Note K - Intangible Assets An_2
Note K - Intangible Assets And Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2023 2022 Trade name $ 130,000 $ 130,000 Proprietary software 420,000 420,000 Customer relationships 1,692,860 1,692,860 Patents and patents pending 365,080 365,080 2,607,940 2,607,940 Less accumulated amortization (1,199,950 ) (845,115 ) Total $ 1,407,990 $ 1,762,825 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years ending December 31 2024 $ 311,000 2025 $ 267,000 2026 $ 224,000 2027 $ 223,000 2028 $ 141,000 Thereafter $ 241,990 Total $ 1,407,990 |
Note L - Accrued Liabilities (T
Note L - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2023 2022 Compensation $ 326,007 $ 377,958 Compensated absences 327,252 378,874 Accrued legal and accounting fees 264,976 110,008 Taxes 152,986 7,000 Employee expenses reimbursement 124,209 114,209 Sales tax payable 19,282 17,594 Other 91,136 3,480 Total $ 1,305,848 $ 1,009,123 |
Note N - Leases (Tables)
Note N - Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Lessee, Operating Lease, Costs, Assets and Liabilities [Table Text Block] | Year ended Year ended December 31, December 31, 2023 2022 Lease cost Operating lease cost $ 166,161 $ 254,649 Total lease cost $ 166,161 $ 254,649 Balance sheet information Operating right-of-use assets $ 36,905 $ 197,355 Operating lease liabilities, current portion $ 37,829 $ 159,665 Operating lease liabilities, non-current portion - 37,829 Total operating lease liabilities $ 37,829 $ 197,494 Weighted average remaining lease term (in years) – operating leases 0.67 0.96 Weighted average discount rate – operating leases 5.50 % 5.50 % Supplemental cash flow information related to leases were as follows: Cash paid for amounts included in the measurement of operating lease liabilities $ 213,783 $ 259,558 Maturities of operating lease liabilities were as follows as of December 31, 2023: 2024 $ 38,808 2025 - Total future lease payments $ 38,808 Less: imputed interest (979 ) Total $ 37,829 |
Note P - Equity (Tables)
Note P - Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Warrants Valuation Assumptions [Table Text Block] | Years ended December 31, 2023 2022 Weighted average risk-free interest rate 4.63 % 3.70 % Weighted average exercise price $ 3.15 $ 3.00 Weighted average exercise period 5 5 Weighted average Volatility of stock price 817 % 108.60 % |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Weighted Weighted average average remaining Aggregate Total exercise life intrinsic Warrants price (in years) value Outstanding, as of December 31, 2021 260,525 106.42 3.48 — Granted 11,112 54.00 Exercised — — Forfeited — — Expired (965 ) 518.40 Outstanding, as of December 31, 2022 270,672 $ 104.95 2.59 — Granted 2,534,148 3.15 Exercised (177,890 ) 0.0018 Forfeited — — Expired (438 ) — Outstanding, as of December 31, 2023 2,626,492 $ 19.09 4.37 — |
Note Q - Stock Options (Tables)
Note Q - Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Weighted average Number of Options average remaining Aggregate 2015 Non Total exercise life intrinsic Plan Plan price (in years) value Outstanding, as of December 31, 2021 5,072 6,771 11,843 $ 299.61 3.03 $ 0 Granted — — — — Exercised — — — — Forfeited — — — — Expired — (530 ) (530 ) 311.11 Outstanding, as of December 31, 2022 5,072 6,241 11,313 $ 299.07 2.07 $ 0 Granted — — — — Exercised — — — — Forfeited (151 ) — (151 ) 94.44 Expired (1,548 ) (348 ) (1,896 ) 256.30 Outstanding, as of December 31, 2023 3.373 5,893 9,266 $ 311.16 0.96 $ 0 Vested or expected to vest at December 31, 2023 9,266 $ 311.16 0.96 $ 0 Exercisable at December 31, 2023 9,266 $ 311.16 0.96 $ 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Options Outstanding Options Exercisable Weighted Weighted Weighted average average average Number of exercise remaining Number exercise Range of exercise prices shares price life (in years) exercisable price $93.60 - 169.92 2,205 $ 136.65 2.85 2,205 $ 136.65 $169.93 - 504.00 7,061 365.66 0.38 7,061 365.66 $93.60 - 504.00 9,266 9,266 |
Note R - Income Taxes (Tables)
Note R - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Net Income (Loss) by Geographic Areas [Table Text Block] | Year ended Year ended December 31, December 31, 2023 2022 United States $ (7,279,970 ) $ (10,416,593 ) Hong Kong (627,146 ) (458,839 ) Nigeria (203,700 ) (143,499 ) Spain (411,021 ) (890,972 ) Total $ (8,521,837 ) $ (11,909,903 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended Year ended December 31, December 31, 2023 2022 Current – federal, $ - $ - state foreign 40,986 Deferred- Federal 1,175,000 States 122,000 Foreign (175,000 ) (20,434 ) Total (134,014 ) 1,276,566 Change in valuation allowance (1,297,000 ) Provision for income tax expense (benefit) $ (134,014 ) $ (20,434 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, December 31, 2023 2022 Accrued compensation $ 112,201 $ 113,000 Allowance for doubtful accounts 90,405 169,000 Research and development expenses 1,017,551 633,000 Capital loss carry forward 114,251 114,000 Stock-based compensation 32,408 456,000 Equipment and leasehold improvements (12,353 ) (19,000 ) Intangible assets - US - 341,000 Intangible assets - Foreign (145,000 ) (170,000 ) Reserve - Foreign 150,000 - Inventory reserve 828,668 89,000 Interest expense - 44,000 Operating lease liabilities - 44,000 Other 1,000 - Tax credits 1,748,235 - Operating lease right-of-use assets 206 (44,000 ) Net operating loss and research and credit carryforwards 13,277,118 15,248,000 Valuation allowance (17,214,690 ) (17,188,000 ) Net deferred tax liability $ - $ (170,000 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended Year ended December 31, December 31, 2023 2022 Federal statutory income tax rate 21 % 21 % State taxes, net of federal benefit (1.41 ) 0.9 Permanent differences 1.97 (4.7 ) Expiration of net operating loss and research credit carryforwards (7.84 ) (5.7 ) Expiration and forfeiture of stock options - (0.3 ) foreign rate differential (5.84 ) rate change (1.05 ) Other (9.08 ) (0.5 ) Valuation allowance (0.24 ) (10.9 ) Effective tax rate (2.5 )% (0.2 )% |
Note T - Earnings Per Share (_2
Note T - Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Years ended December 31, 2023 2022 Stock options - - Warrants 1,913,566 - Total 1,913,566 - Years ended December 31, 2023 2022 Stock options 9,266 11,313 Warrants 270,234 270,672 Total 279,500 281,985 |
Note U - Quarterly Financial _2
Note U - Quarterly Financial Data (Unaudited and Restated) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Tables | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Originally Reported Adjustment Restated Three Months Ended Six Months Ended Nine Months Ended Three Months Ended Six Months Ended Nine Months Ended Three Months Ended Six Months Ended Nine Months Ended March 31, 2023 June 30, 2023 September 30, 2023 March 31, 2023 June 30, 2023 September 30, 2023 March 31, 2023 June 30, 2023 September 30, 2023 Accounts receivable, net $ 3,362,203 $ 3,178,785 $ 2,799,218 $ (900,000 ) $ (1,100,000 ) $ (1,300,000 ) $ 2,462,203 $ 2,078,785 $ 1,499,218 Inventory 4,427,815 4,384,098 4,289,213 (500,000 ) (1,500,000 ) (2,500,000 ) 3,927,815 2,884,098 1,789,213 Total current assets 8,936,084 8,531,330 7,820,339 (1,400,000 ) (2,600,000 ) (3,800,000 ) 7,536,084 5,931,330 4,020,339 Accumulated deficit (116,773,695 ) (118,196,573 ) (118,834,397 ) (1,400,000 ) (2,600,000 ) (3,800,000 ) (118,173,695 ) (120,796,573 ) (122,634,397 ) Total Stockholders' Equity 5,156,755 3,845,091 3,314,451 (1,400,000 ) (2,600,000 ) (3,800,000 ) 3,756,755 1,245,091 (485,549 ) Total Liabilities and Stockholders' Equity 11,106,057 10,583,245 9,749,380 (1,400,000 ) (2,600,000 ) (3,800,000 ) 9,706,057 7,983,245 5,949,380 Originally Reported Adjustment Restated Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 License fees $ 2,478,556 $ 1,235,771 $ 950,015 $ (900,000 ) - - $ 1,578,556 $ 1,235,771 $ 950,015 Total revenues 3,083,767 1,928,929 1,817,108 (900,000 ) - - 2,183,767 1,928,929 1,817,108 Cost of hardware - Reserve - - - 500,000 1,000,000 1,000,000 500,000 1,000,000 1,000,000 Total costs and other expenses 820,274 606,111 476,604 500,000 1,000,000 1,000,000 1,320,274 1,606,111 1,476,604 Gross profit 2,263,493 1,322,818 1,340,504 (1,400,000 ) (1,000,000 ) (1,000,000 ) 863,493 322,818 340,504 Selling, general and administrative 1,931,732 1,943,164 1,547,376 - 200,000 200,000 1,931,732 2,143,164 1,747,376 Total Operating Expenses 2,621,891 2,501,345 2,106,062 - 200,000 200,000 2,621,891 2,701,345 2,306,062 Operating loss (358,398 ) (1,178,527 ) (765,558 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,758,398 ) (2,378,527 ) (1,965,558 ) Loss before provision for income tax (288,322 ) (1,279,878 ) (638,013 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,688,322 ) (2,479,878 ) (1,838,013 ) Net loss (288,322 ) (1,422,878 ) (637,824 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,688,322 ) (2,479,878 ) (1,838,013 ) Comprehensive Net loss (288,322 ) (1,422,878 ) (637,824 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,688,322 ) (2,479,878 ) (1,838,013 ) Comprehensive loss (216,176 ) (1,402,994 ) (602,460 ) (1,400,000 ) (1,200,000 ) (1,200,000 ) (1,616,176 ) (2,459,994 ) (1,802,649 ) Basic and Diluted Loss per Common Share (0.52 ) (2.56 ) (1.12 ) (2.52 ) (2.16 ) (2.11 ) (3.04 ) (4.45 ) (3.22 ) Originally Reported Adjustment Restated Six Months Ended Nine Months Ended Six Months Ended Nine Months Ended Six Months Ended Nine Months Ended June 30, 2023 September 30, 2023 June 30, 2023 September 30, 2023 June 30, 2023 September 30, 2023 License fees $ 3,714,327 $ 4,664,341 $ (900,000 ) $ (900,000 ) $ 2,814,327 $ 3,764,341 Total revenues 5,012,696 6,829,804 (900,000 ) (900,000 ) 4,112,696 5,929,804 Cost of hardware - reserve - - 1,500,000 2,500,000 1,500,000 2,500,000 Total costs and other expenses 1,426,385 1,902,989 1,500,000 2,500,000 2,926,385 4,402,989 Gross profit 3,586,311 4,926,815 (2,400,000 ) (3,400,000 ) 1,186,311 1,526,815 Selling, general and administrative 3,874,896 5,422,272 200,000 400,000 4,074,896 5,822,272 Total Operating Expenses 5,123,237 7,229,298 200,000 400,000 5,323,237 7,629,298 Operating loss (1,536,926 ) (2,302,483 ) (2,600,000 ) (3,800,000 ) (4,136,926 ) (6,102,483 ) Loss before provision for income tax (1,568,200 ) (2,206,212 ) (2,600,000 ) (3,800,000 ) (4,168,200 ) (6,006,212 ) Net loss (1,711,200 ) (2,349,023 ) (2,600,000 ) (3,800,000 ) (4,311,200 ) (6,149,023 ) Comprehensive net loss (1,711,200 ) (2,349,023 ) (2,600,000 ) (3,800,000 ) (4,311,200 ) (6,149,023 ) Comprehensive loss (1,619,170 ) (2,221,629 ) (2,600,000 ) (3,800,000 ) (4,219,170 ) (6,021,629 ) Basic and Diluted Loss per Common Share (3.07 ) (4.12 ) (4.67 ) (6.67 ) (7.74 ) (10.79 ) |
Note A - The Company and Summ_3
Note A - The Company and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Dec. 22, 2022 USD ($) | |
Percentage of Support and Maintenance Revenue to License Cost | 18% | ||||
Capitalized Contract Cost, Amortization Period (Year) | 4 years | ||||
Contract with Customer, Liability | $ 443,000 | $ 443,000 | $ 515,000 | ||
Advertising Expense | $ 340,000 | $ 842,000 | |||
Debt Instrument, Face Amount | $ 2,200,000 | ||||
Measurement Input, Default Rate [Member] | |||||
Debt Instrument, Measurement Input | 0.18 | ||||
Principal Upon Default [Member] | |||||
Debt Instrument, Measurement Input | 0.30 | ||||
Measurement Input, Discount Rate [Member] | |||||
Debt Instrument, Measurement Input | 0.1518 | ||||
Measurement Input, Likelihood of Default [Member] | |||||
Debt Instrument, Measurement Input | 0.50 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||
Debt Instrument, Interest Rate, Stated Percentage | 10% | ||||
Maximum [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12% | ||||
Reverse Stock Split [Member] | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 18 |
Note A - The Company and Summ_4
Note A - The Company and Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Accounts receivable | $ 2,207,311 | $ 2,096,569 | |||
Allowance for doubtful accounts | (1,005,785) | (573,785) | |||
Accounts receivable, net | 1,201,526 | 1,522,784 | $ 1,499,218 | $ 2,078,785 | $ 2,462,203 |
Balance | 573,785 | 213,785 | |||
Charged to costs and expenses | 750,000 | 360,000 | |||
Deductions from reserves | (318,000) | 0 | |||
Balance | $ 1,005,785 | $ 573,785 |
Note A - The Company and Summ_5
Note A - The Company and Summary of Significant Accounting Policies - Estimated Useful Lives for Depreciation and Amortization (Details) | Dec. 31, 2021 |
Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Software Development [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Note A - The Company and Summ_6
Note A - The Company and Summary of Significant Accounting Policies - Share-based Compensation Expenses for Continuing Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based compensation expense | $ 265,732 | $ 387,907 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 209,134 | 310,017 |
Research and Development Expense [Member] | ||
Share-based compensation expense | $ 56,598 | $ 77,890 |
Note A - The Company and Summ_7
Note A - The Company and Summary of Significant Accounting Policies - Changes in Fair Value Measurements for the Convertible Notes (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Beginning balance | $ 2,596,203 |
Purchases and issuances | (2,200,000) |
Day one change in value of hybrid instrument | (396,203) |
Ending balance | $ 0 |
Note B - Revenue From Contrac_3
Note B - Revenue From Contracts With Customers (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contract with Customer, Liability, Revenue Recognized | $ 467,000 | $ 489,000 |
Contract with Customer, Liability | $ 443,000 | $ 515,000 |
Note B - Revenue From Contrac_4
Note B - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenues | $ 1,817,108 | $ 1,928,929 | $ 2,183,767 | $ 4,112,696 | $ 5,929,804 | $ 7,754,905 | $ 7,020,258 | |
North America [Member] | ||||||||
Revenues | 3,236,098 | 3,549,156 | ||||||
South America [Member] | ||||||||
Revenues | 654,446 | 626,300 | ||||||
EMESA [Member] | ||||||||
Revenues | [1] | 3,796,524 | 2,580,295 | |||||
Asia [Member] | ||||||||
Revenues | 67,837 | 264,507 | ||||||
License [Member] | ||||||||
Revenues | $ 950,015 | $ 1,235,771 | $ 1,578,556 | $ 2,814,327 | $ 3,764,341 | 4,342,010 | 4,584,052 | |
License [Member] | North America [Member] | ||||||||
Revenues | 1,971,348 | 1,856,814 | ||||||
License [Member] | South America [Member] | ||||||||
Revenues | 552,630 | 517,161 | ||||||
License [Member] | EMESA [Member] | ||||||||
Revenues | [1] | 1,801,381 | 2,124,088 | |||||
License [Member] | Asia [Member] | ||||||||
Revenues | 16,651 | 85,989 | ||||||
Hardware [Member] | ||||||||
Revenues | 1,194,010 | 646,486 | ||||||
Hardware [Member] | North America [Member] | ||||||||
Revenues | 147,815 | 422,275 | ||||||
Hardware [Member] | South America [Member] | ||||||||
Revenues | 0 | 25,833 | ||||||
Hardware [Member] | EMESA [Member] | ||||||||
Revenues | [1] | 1,013,295 | 19,914 | |||||
Hardware [Member] | Asia [Member] | ||||||||
Revenues | 32,900 | 178,464 | ||||||
Service [Member] | ||||||||
Revenues | 2,218,885 | 1,789,720 | ||||||
Service [Member] | North America [Member] | ||||||||
Revenues | 1,116,935 | 1,270,067 | ||||||
Service [Member] | South America [Member] | ||||||||
Revenues | 101,816 | 83,306 | ||||||
Service [Member] | EMESA [Member] | ||||||||
Revenues | 981,848 | 436,293 | ||||||
Service [Member] | Asia [Member] | ||||||||
Revenues | $ 18,286 | $ 54 | ||||||
[1]EMESA – Europe, Middle East, South America |
Note C - Swivel Secure Europe_3
Note C - Swivel Secure Europe, SA Acquisition (Details Textual) - USD ($) | 12 Months Ended | 48 Months Ended | |||
Mar. 08, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2026 | Dec. 31, 2021 | |
Payments to Acquire Businesses, Gross | $ 0 | $ 623,578 | |||
Share Price (in dollars per share) | $ 3 | $ 10.62 | $ 39.78 | ||
Government Loan [Member] | BBVA Bank [Member] | Forecast [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||
Debt Instrument, Periodic Payment, Principal | $ 11,900 | ||||
Swivel Secure Europe [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
Business Combination, Base Purchase Price | $ 1,750,000 | ||||
Business Combination, Contingent Consideration, Liability | 500,000 | ||||
Business Combination, Contingent Consideration Earnout Payable, Revenue to Trigger Payment | 3,000,000 | ||||
Business Combination, Contingent Consideration Earnout Payable, Operating Profit to Trigger Payment | 1,000,000 | ||||
Payments to Acquire Businesses, Gross | $ 1,270,000 | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 14,948 | ||||
Business Combination, Indemnification Assets, Shares as of Acquisition Date (in shares) | 4,983 | ||||
Share Price (in dollars per share) | $ 2.23 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 500,000 |
Note C - Swivel Secure Europe_4
Note C - Swivel Secure Europe, SA Acquisition (Details) - Swivel Secure Europe [Member] | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Total cash paid, including working capital adjustment | $ 1,273,483 |
Earnout payable | 500,000 |
Cash and cash equivalents | 729,905 |
Accounts receivable | 702,886 |
Equipment acquired | 65,640 |
Other assets | 20,708 |
Intangible assets | 762,860 |
Goodwill | 1,258,087 |
Total estimated assets acquired | 3,540,086 |
Accounts payable and accrued expenses | 431,884 |
Government loan | 544,000 |
Deferred tax liability | 190,715 |
Total liabilities assumed | 1,166,599 |
Total estimated fair value of assets acquired and liabilities assumed | 2,373,487 |
Restricted [Member] | |
Common stock issued | 600,004 |
Total purchase price consideration | $ 2,373,487 |
Note C - Swivel Secure Europe_5
Note C - Swivel Secure Europe, SA Acquisition - Fair Values and Useful lives of Identifiable Intangible Assets (Details) - Swivel Secure Europe [Member] | Mar. 08, 2022 USD ($) |
Customer relationships | $ 762,860 |
Customer Relationships [Member] | |
Customer relationships | $ 762,860 |
Customer relationships (Year) | 7 years |
Note E - Concentration of Risk
Note E - Concentration of Risk (Details Textual) | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Cash, Uninsured Amount | $ 0 | $ 2,000,000 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk, Number of Major Customers | 3 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentration Risk, Percentage | 34% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk, Number of Major Customers | 3 | 1 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | ||
Concentration Risk, Percentage | 66% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | ||
Concentration Risk, Percentage | 35% |
Note F - Note Receivable (Detai
Note F - Note Receivable (Details Textual) - USD ($) | 9 Months Ended | ||||||
Feb. 06, 2024 | Jul. 06, 2022 | Feb. 25, 2022 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2020 | |
Financing Receivable, after Allowance for Credit Loss, Current, Total | $ 0 | $ 0 | $ 295,000 | ||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 5% | ||||||
Accounts Receivable, Allowance for Credit Loss | $ 186,000 | ||||||
Notes Receivable, Periodic Payment | $ 15,000 | $ 1,000 | |||||
Subsequent Event [Member] | |||||||
Notes Receivable, Periodic Payment | $ 2,000 |
Note F - Note Receivable - Summ
Note F - Note Receivable - Summary of Note Receivable (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2020 |
Note receivable | $ 0 | $ 195,000 | |
Repayment of note | 0 | (9,000) | |
Allowance for doubtful account | 0 | (186,000) | |
Note receivable, net of allowance | 0 | 0 | |
Current portion, net of allowance | 0 | 0 | $ 295,000 |
Noncurrent portion, net of allowance | $ 0 | $ 0 |
Note G - Inventory - Components
Note G - Inventory - Components of Inventory (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Finished goods | $ 4,373,056 | $ 4,764,643 | |||
Fabricated assemblies | 59,184 | 69,726 | |||
Reserve on finished goods | (3,986,500) | (400,000) | |||
Total inventory | $ 445,740 | $ 1,789,213 | $ 2,884,098 | $ 3,927,815 | $ 4,434,369 |
Note H - Resalable Software L_2
Note H - Resalable Software Licenses Rights (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2017 | |
Cumulative Amount of Amortization Expense, Net of Credits | $ 141,190 | |||
Software License Rights | $ 0 | $ 0 | ||
Software License Rights [Member] | ||||
Payments to Acquire Software | $ 180,000 | |||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||
The 2015 Software License [Member] | ||||
Software License Rights | $ 48,752 |
Note I - Investment in Debt S_2
Note I - Investment in Debt Security (Details Textual) - Debt Security, Corporate, Non-US [Member] | Jun. 30, 2020 USD ($) | Dec. 31, 2019 HKD ($) |
Debt Securities, Held-to-Maturity, Amortized Cost, before Allowance for Credit Loss, Current | $ 512,821 | $ 4,000,000 |
Investment in Held-to-maturity Debt Securities, Interest Rate | 5% |
Note J - Equipment and Leaseh_3
Note J - Equipment and Leasehold Improvements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Depreciation, Depletion and Amortization, Nonproduction | $ 75,136 | $ 43,794 |
Note J - Equipment and Leaseh_4
Note J - Equipment and Leasehold Improvements - Summary of Equipment and Leasehold Improvements (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, plant, and equipment, gross | $ 1,322,982 | $ 1,135,082 |
Less accumulated depreciation and amortization | (1,102,805) | (1,027,669) |
Total | 220,177 | 107,413 |
Equipment [Member] | ||
Property, plant, and equipment, gross | 1,012,958 | 825,058 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 225,978 | 225,978 |
Software Development [Member] | ||
Property, plant, and equipment, gross | 49,143 | 49,143 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | $ 34,903 | $ 34,903 |
Note K - Intangible Assets An_3
Note K - Intangible Assets And Goodwill (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Amortization of Intangible Assets | $ 354,558 | $ 298,113 |
Research, Development, and Engineering Expense [Member] | ||
Amortization of Intangible Assets | $ 355,000 | $ 298,000 |
Note K - Intangible Assets - Su
Note K - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Gross carrying amount | $ 2,607,940 | $ 2,607,940 |
Less accumulated amortization | (1,199,950) | (845,115) |
Net carrying amount, total | 1,407,990 | 1,762,825 |
Trade Names [Member] | ||
Gross carrying amount | 130,000 | 130,000 |
Proprietary Software [Member] | ||
Gross carrying amount | 420,000 | 420,000 |
Customer Relationships [Member] | ||
Gross carrying amount | 1,692,860 | 1,692,860 |
Patents [Member] | ||
Gross carrying amount | $ 365,080 | $ 365,080 |
Note K - Intangible Assets an_4
Note K - Intangible Assets and Goodwill - Amortization Expense (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
2027, Amortization Expense | $ 223,000 | |
2028, Amortization Expense | 141,000 | |
Total, Amortization Expense | 1,407,990 | $ 1,762,825 |
Licensing Agreements [Member] | ||
2024, Amortization Expense | 311,000 | |
2025, Amortization Expense | 267,000 | |
2026, Amortization Expense | 224,000 | |
Thereafter, Amortization Expense | 241,990 | |
Total, Amortization Expense | $ 1,407,990 |
Note L - Accrued Liabilities -
Note L - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Compensation | $ 326,007 | $ 377,958 |
Compensated absences | 327,252 | 378,874 |
Accrued legal and accounting fees | 264,976 | 110,008 |
Taxes | 152,986 | 7,000 |
Employee expenses reimbursement | 124,209 | 114,209 |
Sales tax payable | 19,282 | 17,594 |
Other | 91,136 | 3,480 |
Total | $ 1,305,848 | $ 1,009,123 |
Note M - Convertible Note Pay_2
Note M - Convertible Note Payable (Details Textual) - USD ($) | Dec. 21, 2023 | Oct. 31, 2023 | Dec. 22, 2022 | Sep. 30, 2023 |
Debt Instrument, Face Amount | $ 2,200,000 | |||
Warrants Issued in Connection with Convertible Notes [Member] | ||||
Class of Warrant or Right, Issued During Period (in shares) | 11,112 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 54 | |||
Warrants and Rights Outstanding | $ 94,316 | |||
The Note [Member] | ||||
Repayments of Notes Payable | $ 800,000 | $ 1,400,000 | ||
The Note [Member] | Senior Secured Promissory Note [Member] | ||||
Debt Instrument, Face Amount | 2,200,000 | |||
Proceeds from Debt, Net of Issuance Costs | $ 2,002,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10% | 12% | ||
The Note [Member] | Senior Secured Convertible Note [Member] | ||||
Stock Issued During Period, Shares, Commitment Fees (in shares) | 38,889 | |||
Shares Issued, Price Per Share (in dollars per share) | $ 18 |
Note N - Leases - Operating Lea
Note N - Leases - Operating Lease Balance Sheet Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating lease cost | $ 166,161 | $ 254,649 |
Total lease cost | 166,161 | 254,649 |
Operating lease right-of-use assets | 36,905 | 197,355 |
Operating lease liabilities, current portion | 37,829 | 159,665 |
Operating lease liabilities, non-current portion | 0 | $ 37,829 |
Total operating lease liabilities | $ 37,829 | |
Weighted average remaining lease term (in years) – operating leases (Year) | 8 months 1 day | 11 months 15 days |
Weighted average discount rate – operating leases | 5.50% | 5.50% |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 213,783 | $ 259,558 |
2024, Operating Lease Liabilities | 38,808 | |
2025, Operating Lease Liabilities | 0 | |
Total future lease payments | 38,808 | |
Less: imputed interest | (979) | |
Total | 37,829 | |
Approximation [Member] | ||
Operating lease right-of-use assets | 36,905 | 197,355 |
Total operating lease liabilities | 37,829 | 197,494 |
Total | $ 37,829 | $ 197,494 |
Note P - Equity (Details Textua
Note P - Equity (Details Textual) - USD ($) | 12 Months Ended | ||||
Mar. 08, 2022 | Jun. 18, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 1 | ||||
Stock Issued During Period, Value, Acquisitions | $ 600,003 | ||||
Share-Based Payment Arrangement, Expense | $ 265,732 | 387,907 | |||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 39,007 | $ 76,043 | |||
Share Price (in dollars per share) | $ 3 | $ 10.62 | $ 39.78 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares) | 9,266 | ||||
Director [Member] | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares) | 3,078 | 2,202 | |||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | $ 39,007 | $ 76,043 | |||
Restricted Stock [Member] | |||||
Share-Based Payment Arrangement, Expense | $ 205,517 | $ 218,552 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 16,404 | 15,444 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited (in shares) | 3,752 | 583 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | ||||
In The Money Options [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares) | 0 | 0 | 0 | ||
Employee Stock Purchase Plan [Member] | |||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 43,834 | ||||
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) | 2,947 | 3,364 | |||
Swivel Secure Europe [Member] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares) | 14,948 | ||||
Business Combination, Indemnification Assets, Shares as of Acquisition Date (in shares) | 4,983 | ||||
Stock Issued During Period, Value, Acquisitions | $ 600,004 | ||||
Business Acquisition, Share Price (in dollars per share) | $ 40.14 | ||||
Share-Based Payment Arrangement, Expense | $ 4,343 | $ 18,787 | |||
Share Price (in dollars per share) | $ 2.23 |
Note P - Equity - Valuation Ass
Note P - Equity - Valuation Assumptions for Warrants (Details) - Referral Fee Warrants [Member] | Dec. 31, 2023 | Dec. 31, 2022 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Warrant measurement input | 0.0463 | 0.037 |
Measurement Input, Exercise Price [Member] | ||
Warrant measurement input | 3.15 | 3 |
Measurement Input, Expected Term [Member] | ||
Warrant measurement input | 5 | 5 |
Measurement Input, Price Volatility [Member] | ||
Warrant measurement input | 8.17 | 1.086 |
Note P - Equity - Summary of Wa
Note P - Equity - Summary of Warrant Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Outstanding, warrants (in shares) | 270,672 | 260,525 | |
Outstanding, weighted average exercise price, warrants (in dollars per share) | $ 104.95 | $ 106.42 | |
Outstanding, weighted average remaining contractual life, warrants (Year) | 4 years 4 months 13 days | 2 years 7 months 2 days | 3 years 5 months 23 days |
Granted, warrants (in shares) | 2,534,148 | 11,112 | |
Granted, weighted average exercise price, warrants (in dollars per share) | $ 3.15 | $ 54 | |
Exercised, warrants (in shares) | 177,890 | 0 | |
Exercised, weighted average exercise price, warrants (in dollars per share) | $ 0.0018 | $ 0 | |
Forfeited, warrants (in shares) | 0 | 0 | |
Forfeited, weighted average exercise price, warrants (in dollars per share) | $ 0 | $ 0 | |
Expired, warrants (in shares) | (438) | (965) | |
Expired, weighted average exercise price, warrants (in dollars per share) | $ 0 | $ 518.4 | |
Granted (in dollars per share) | $ 3.15 | $ 54 | |
Exercised, warrants (in shares) | (177,890) | 0 | |
Exercised (in dollars per share) | $ 0.0018 | $ 0 | |
Outstanding, warrants (in shares) | 2,626,492 | 270,672 | 260,525 |
Outstanding, weighted average exercise price, warrants (in dollars per share) | $ 19.09 | $ 104.95 | $ 106.42 |
Note Q - Stock Options (Details
Note Q - Stock Options (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 14, 2023 | Jan. 27, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 11 months 15 days | 2 years 25 days | 3 years 10 days | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 0 | |||
Share Price (in dollars per share) | $ 3 | $ 10.62 | $ 39.78 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares) | 9,266 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | $ 0 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 0 | $ 0 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value | $ 18,310 | $ 100,668 | |||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 0 | ||||
In The Money Options [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number (in shares) | 0 | 0 | 0 | ||
The 2023 Stock Incentive Plan [Member] | |||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 333,334 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | ||||
The 2023 Stock Incentive Plan [Member] | Minimum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 100% | ||||
The 2023 Stock Incentive Plan [Member] | Maximum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 110% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 10 years | ||||
The 2015 Equity Incentive Plan [Member] | |||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 10,417 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 0 | 0 | |||
The 2015 Equity Incentive Plan [Member] | Minimum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 100% | ||||
The 2015 Equity Incentive Plan [Member] | Maximum [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Purchase Price of Common Stock, Percent | 110% | ||||
The Amended 2015 Equity Incentive Plan [Member] | |||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 10,417 | 43,834 |
Note Q - Stock Options - Option
Note Q - Stock Options - Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Outstanding (in shares) | 11,313 | 11,843 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 299.07 | $ 299.61 | |
Outstanding, weighted average remaining life (Year) | 11 months 15 days | 2 years 25 days | 3 years 10 days |
Outstanding, aggregate intrinsic value | $ 0 | $ 0 | $ 0 |
Granted (in shares) | 0 | 0 | |
Granted, weighted average exercise price (in dollars per share) | $ 0 | $ 0 | |
Exercised (in shares) | 0 | 0 | |
Exercised, weighted average exercise price (in dollars per share) | $ 0 | $ 0 | |
Forfeited (in shares) | (151) | 0 | |
Forfeited, weighted average exercise price (in dollars per share) | $ 94.44 | $ 0 | |
Expired (in shares) | (1,896) | (530) | |
Expired, weighted average exercise price (in dollars per share) | $ 256.3 | $ 311.11 | |
Outstanding (in shares) | 9,266 | 11,313 | 11,843 |
Outstanding, weighted average exercise price (in dollars per share) | $ 311.16 | $ 299.07 | $ 299.61 |
Vested or expected to vest (in shares) | 9,266 | ||
Vested or expected to vest, weighted average exercise price (in dollars per share) | $ 311.16 | ||
Vested or expected to vest, weighted average remaining life (Year) | 11 months 15 days | ||
Vested or expected to vest, aggregate intrinsic value | $ 0 | ||
Exercisable (in shares) | 9,266 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 311.16 | ||
Exercisable, weighted average remaining life (Year) | 11 months 15 days | ||
Exercisable, aggregate intrinsic value | $ 0 | ||
The 2015 Equity Incentive Plan [Member] | |||
Outstanding (in shares) | 5,072 | 5,072 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | (151) | 0 | |
Expired (in shares) | (1,548) | 0 | |
Outstanding (in shares) | 3.373 | 5,072 | 5,072 |
Non Plan [Member] | |||
Outstanding (in shares) | 6,241 | 6,771 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Expired (in shares) | (348) | (530) | |
Outstanding (in shares) | 5,893 | 6,241 | 6,771 |
Note Q - Stock Options - Opti_2
Note Q - Stock Options - Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Exercise Price Range 1 [Member] | |
Exercise Price Lower Limit (in dollars per share) | $ 2,205 |
Exercise Price Upper Limit (in dollars per share) | $ 136.65 |
Number of Shares, Outstanding (in shares) | shares | 2.85 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 2,205 |
Weighted Average Remaining Life, Outstanding (Year) | 136 years 7 months 24 days |
Exercise Price Range 2 [Member] | |
Exercise Price Lower Limit (in dollars per share) | $ 7,061 |
Exercise Price Upper Limit (in dollars per share) | $ 365.66 |
Number of Shares, Outstanding (in shares) | shares | 0.38 |
Weighted Average Exercise Price, Outstanding (in dollars per share) | $ 7,061 |
Weighted Average Remaining Life, Outstanding (Year) | 365 years 7 months 28 days |
Exercise Price Range 3 [Member] | |
Exercise Price Lower Limit (in dollars per share) | $ 9,266 |
Exercise Price Upper Limit (in dollars per share) | $ 504 |
Number of Shares, Outstanding (in shares) | shares |
Note R - Income Taxes (Details
Note R - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Tax Assets, Valuation Allowance | $ 17,214,690 | $ 17,188,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | 0 |
Domestic Tax Jurisdiction [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards | 60,300,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 39,700,000 | |
Operating Loss Carryforwards, Not Subject to Expiration | $ 18,600,000 | |
Open Tax Year | 2019 2020 2021 2022 | |
State and Local Jurisdiction [Member] | Internal Revenue Service (IRS) [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 5,300,000 | |
Approximation [Member] | ||
Deferred Tax Assets, Valuation Allowance | $ 17,239,173 | $ 17,188,000 |
Note R - Income Taxes - Compone
Note R - Income Taxes - Components of Net Loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Net loss | $ (1,838,013) | $ (2,479,878) | $ (1,688,322) | $ (4,311,200) | $ (6,149,023) | $ (8,521,837) | $ (11,909,903) |
UNITED STATES | |||||||
Net loss | (7,279,970) | (10,416,593) | |||||
HONG KONG | |||||||
Net loss | (627,146) | (458,839) | |||||
NIGERIA | |||||||
Net loss | (203,700) | (143,499) | |||||
SPAIN | |||||||
Net loss | $ (411,021) | $ (890,972) |
Note R - Income Taxes - Provisi
Note R - Income Taxes - Provision for Income Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred- Federal | $ 1,175,000 | |
States | 122,000 | |
Foreign | $ (175,000) | (20,434) |
Total | (134,014) | 1,276,566 |
Change in valuation allowance | (1,297,000) | |
Provision for income tax expense (benefit) | (134,014) | (20,434) |
Domestic Tax Jurisdiction [Member] | ||
Current Income Tax Expense (Benefit) | 0 | $ 0 |
Foreign Tax Jurisdiction [Member] | ||
foreign | $ 40,986 |
Note R - Income Taxes - Compo_2
Note R - Income Taxes - Components of Deferred Taxes (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued compensation | $ 112,201 | $ 113,000 |
Allowance for doubtful accounts | 90,405 | 169,000 |
Research and development expenses | 1,017,551 | 633,000 |
Capital loss carry forward | 114,251 | 114,000 |
Stock-based compensation | 32,408 | 456,000 |
Equipment and leasehold improvements | (12,353) | (19,000) |
Reserve - Foreign | 150,000 | 0 |
Inventory reserve | 828,668 | 89,000 |
Interest expense | 0 | 44,000 |
Operating lease liabilities | 0 | 44,000 |
Other | 1,000 | 0 |
Tax credits | 1,748,235 | 0 |
Operating lease right-of-use assets, asset | 206 | |
Operating lease right-of-use assets, liability | (44,000) | |
Net operating loss and research and credit carryforwards | 13,277,118 | 15,248,000 |
Valuation allowance | (17,214,690) | (17,188,000) |
Net deferred tax liability | 0 | (170,000) |
Domestic Tax Jurisdiction [Member] | ||
Intangible assets - US | 0 | 341,000 |
Foreign Tax Jurisdiction [Member] | ||
Deferred Tax Liability, Intangible Assets | $ (145,000) | $ (170,000) |
Note R - Income Taxes - Reconci
Note R - Income Taxes - Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal statutory income tax rate | 21% | 21% |
State taxes, net of federal benefit | (1.41%) | 0.90% |
Permanent differences | 1.97% | (4.70%) |
Expiration of net operating loss and research credit carryforwards | (7.84%) | (5.70%) |
Expiration and forfeiture of stock options | 0% | (0.30%) |
foreign rate differential | (5.84%) | |
rate change | (1.05%) | |
Other | (9.08%) | 0.50% |
Valuation allowance | (0.24%) | (10.90%) |
Effective tax rate | (2.50%) | (0.20%) |
Note S (Details Textual)
Note S (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Note T - Earnings Per Share (_3
Note T - Earnings Per Share (EPS) - Securities Excluded From the Diluted Per Share Calculation (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive securities (in shares) | 1,913,566 | 0 |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 279,500 | 281,985 |
Share-Based Payment Arrangement, Option [Member] | ||
Antidilutive securities (in shares) | 0 | 0 |
Share-Based Payment Arrangement, Option [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 9,266 | 11,313 |
Warrant [Member] | ||
Antidilutive securities (in shares) | 1,913,566 | 0 |
Warrant [Member] | Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 270,234 | 270,672 |
Note U - Quarterly Financial _3
Note U - Quarterly Financial Data (Unaudited and Restated) - Restated Financial Statements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts receivable, net | $ 1,499,218 | $ 2,078,785 | $ 2,462,203 | $ 2,078,785 | $ 1,499,218 | $ 1,201,526 | $ 1,522,784 | |
Inventory | 1,789,213 | 2,884,098 | 3,927,815 | 2,884,098 | 1,789,213 | 445,740 | 4,434,369 | |
Total current assets | 4,020,339 | 5,931,330 | 7,536,084 | 5,931,330 | 4,020,339 | 2,622,157 | 8,984,881 | |
Accumulated deficit | (122,634,397) | (120,796,573) | (118,173,695) | (120,796,573) | (122,634,397) | (125,007,210) | (116,485,373) | |
Total Stockholders' Equity | (485,549) | 1,245,091 | 3,756,755 | 1,245,091 | (485,549) | 1,063,565 | 5,301,556 | $ 15,615,455 |
Total Liabilities and Stockholders' Equity | 5,949,380 | 7,983,245 | 9,706,057 | 7,983,245 | 5,949,380 | 4,517,035 | 11,344,255 | |
Revenues | 1,817,108 | 1,928,929 | 2,183,767 | 4,112,696 | 5,929,804 | 7,754,905 | 7,020,258 | |
Costs and other expenses | 1,476,604 | 1,606,111 | 1,320,274 | 2,926,385 | 4,402,989 | 6,323,586 | 2,439,570 | |
Gross profit | 340,504 | 322,818 | 863,493 | 1,186,311 | 1,526,815 | 1,431,319 | 4,580,688 | |
Selling, general and administrative | 1,747,376 | 2,143,164 | 1,931,732 | 4,074,896 | 5,822,272 | 7,862,710 | 9,364,887 | |
Total Operating Expenses | 2,306,062 | 2,701,345 | 2,621,891 | 5,323,237 | 7,629,298 | 10,257,636 | 14,504,316 | |
Operating loss | (1,965,558) | (2,378,527) | (1,758,398) | (4,136,926) | (6,102,483) | (8,826,317) | (9,923,628) | |
Loss before provision for income tax | (1,838,013) | (2,479,878) | (1,688,322) | (4,168,200) | (6,006,212) | (8,655,851) | (11,930,337) | |
Net loss | (1,838,013) | (2,479,878) | (1,688,322) | (4,311,200) | (6,149,023) | (8,521,837) | (11,909,903) | |
Comprehensive Net loss | (1,838,013) | (2,479,878) | (1,688,322) | (4,311,200) | (6,149,023) | |||
Comprehensive loss | $ (1,802,649) | $ (2,459,994) | $ (1,616,176) | $ (4,219,170) | $ (6,021,629) | $ (8,256,414) | $ (12,152,505) | |
Basic and Diluted Loss per Common Share (in dollars per share) | $ (3.22) | $ (4.45) | $ (3.04) | $ (7.74) | $ (10.79) | $ (15.21) | $ (27.26) | |
License [Member] | ||||||||
Revenues | $ 950,015 | $ 1,235,771 | $ 1,578,556 | $ 2,814,327 | $ 3,764,341 | $ 4,342,010 | $ 4,584,052 | |
Costs and other expenses | 1,174,919 | 906,417 | ||||||
Hardware Reserve [Member] | ||||||||
Costs and other expenses | 1,000,000 | 1,000,000 | 500,000 | 1,500,000 | 2,500,000 | $ 3,586,500 | $ 400,000 | |
Previously Reported [Member] | ||||||||
Accounts receivable, net | 2,799,218 | 3,178,785 | 3,362,203 | 3,178,785 | 2,799,218 | |||
Inventory | 4,289,213 | 4,384,098 | 4,427,815 | 4,384,098 | 4,289,213 | |||
Total current assets | 7,820,339 | 8,531,330 | 8,936,084 | 8,531,330 | 7,820,339 | |||
Accumulated deficit | (118,834,397) | (118,196,573) | (116,773,695) | (118,196,573) | (118,834,397) | |||
Total Stockholders' Equity | 3,314,451 | 3,845,091 | 5,156,755 | 3,845,091 | 3,314,451 | |||
Total Liabilities and Stockholders' Equity | 9,749,380 | 10,583,245 | 11,106,057 | 10,583,245 | 9,749,380 | |||
Revenues | 1,817,108 | 1,928,929 | 3,083,767 | 5,012,696 | 6,829,804 | |||
Costs and other expenses | 476,604 | 606,111 | 820,274 | 1,426,385 | 1,902,989 | |||
Gross profit | 1,340,504 | 1,322,818 | 2,263,493 | 3,586,311 | 4,926,815 | |||
Selling, general and administrative | 1,547,376 | 1,943,164 | 1,931,732 | 3,874,896 | 5,422,272 | |||
Total Operating Expenses | 2,106,062 | 2,501,345 | 2,621,891 | 5,123,237 | 7,229,298 | |||
Operating loss | (765,558) | (1,178,527) | (358,398) | (1,536,926) | (2,302,483) | |||
Loss before provision for income tax | (638,013) | (1,279,878) | (288,322) | (1,568,200) | (2,206,212) | |||
Net loss | (637,824) | (1,422,878) | (288,322) | (1,711,200) | (2,349,023) | |||
Comprehensive Net loss | (637,824) | (1,422,878) | (288,322) | (1,711,200) | (2,349,023) | |||
Comprehensive loss | $ (602,460) | $ (1,402,994) | $ (216,176) | $ (1,619,170) | $ (2,221,629) | |||
Basic and Diluted Loss per Common Share (in dollars per share) | $ (1.12) | $ (2.56) | $ (0.52) | $ (3.07) | $ (4.12) | |||
Previously Reported [Member] | License [Member] | ||||||||
Revenues | $ 950,015 | $ 1,235,771 | $ 2,478,556 | $ 3,714,327 | $ 4,664,341 | |||
Previously Reported [Member] | Hardware Reserve [Member] | ||||||||
Costs and other expenses | 0 | 0 | 0 | 0 | 0 | |||
Revision of Prior Period, Adjustment [Member] | ||||||||
Accounts receivable, net | (1,300,000) | (1,100,000) | (900,000) | (1,100,000) | (1,300,000) | |||
Inventory | (2,500,000) | (1,500,000) | (500,000) | (1,500,000) | (2,500,000) | |||
Total current assets | (3,800,000) | (2,600,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Accumulated deficit | (3,800,000) | (2,600,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Total Stockholders' Equity | (3,800,000) | (2,600,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Total Liabilities and Stockholders' Equity | (3,800,000) | (2,600,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Revenues | 0 | 0 | (900,000) | (900,000) | (900,000) | |||
Costs and other expenses | 1,000,000 | 1,000,000 | 500,000 | 1,500,000 | 2,500,000 | |||
Gross profit | (1,000,000) | (1,000,000) | (1,400,000) | (2,400,000) | (3,400,000) | |||
Selling, general and administrative | 200,000 | 200,000 | 0 | 200,000 | 400,000 | |||
Total Operating Expenses | 200,000 | 200,000 | 0 | 200,000 | 400,000 | |||
Operating loss | (1,200,000) | (1,200,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Loss before provision for income tax | (1,200,000) | (1,200,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Net loss | (1,200,000) | (1,200,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Comprehensive Net loss | (1,200,000) | (1,200,000) | (1,400,000) | (2,600,000) | (3,800,000) | |||
Comprehensive loss | $ (1,200,000) | $ (1,200,000) | $ (1,400,000) | $ (2,600,000) | $ (3,800,000) | |||
Basic and Diluted Loss per Common Share (in dollars per share) | $ (2.11) | $ (2.16) | $ (2.52) | $ (4.67) | $ (6.67) | |||
Revision of Prior Period, Adjustment [Member] | License [Member] | ||||||||
Revenues | $ 0 | $ 0 | $ (900,000) | $ (900,000) | $ (900,000) | |||
Revision of Prior Period, Adjustment [Member] | Hardware Reserve [Member] | ||||||||
Costs and other expenses | $ 1,000,000 | $ 1,000,000 | $ 500,000 | $ 1,500,000 | $ 2,500,000 |
Note V - Subsequent Events (Det
Note V - Subsequent Events (Details Textual) - USD ($) | May 06, 2024 | Mar. 31, 2024 | Mar. 27, 2024 | Feb. 15, 2024 | Jan. 12, 2024 | Jan. 05, 2024 | Jan. 04, 2024 |
Restricted Stock [Member] | Share-Based Payment Arrangement, Employee [Member] | Forecast [Member] | |||||||
Shares Issued, Shares, Share-Based Payment Arrangement, Forfeited (in shares) | 186 | ||||||
Subsequent Event [Member] | |||||||
Stock Issued During Period, Shares, Exercise of Warrants | $ 158,000 | $ 142,000 | $ 347,000 | ||||
Subsequent Event [Member] | Common Stock [Member] | Stock Issued in Lieu of Board Fees [Member] | Director [Member] | |||||||
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture (in shares) | 4,287 | ||||||
Subsequent Event [Member] | Restricted Stock [Member] | Share-Based Payment Arrangement, Employee [Member] | |||||||
Shares Issued, Shares, Share-Based Payment Arrangement, Forfeited (in shares) | 73 | 243 |