BIO KEY INTERNATIONAL INC Leases Disclosure
NOTE L—LEASES
The Company’s leases office space in New Jersey, Minnesota, New Hampshire, Madrid and Hong Kong with lease termination dates in 2025 and 2027. The property leased in China is paid monthly as used, without a formal agreement. The following tables present the components of lease expense and supplemental balance sheet information related to the operating leases were:
| Year ended | Year ended | |||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Lease cost | ||||||||
| Operating lease cost | $ | 45,787 | $ | 166,161 | ||||
| Total lease cost | $ | 45,787 | $ | 166,161 | ||||
| Balance sheet information | ||||||||
| Operating right-of-use assets | $ | 73,372 | $ | 36,905 | ||||
| Operating lease liabilities, current portion | $ | 24,642 | $ | 37,829 | ||||
| Operating lease liabilities, non-current portion | 48,994 | - | ||||||
| Total operating lease liabilities | $ | 73,636 | $ | 37,829 | ||||
| Weighted average remaining lease term (in years) – operating leases | 2.67 | 0.67 | ||||||
| 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 | $ | 63,914 | $ | 213,783 | ||||
| Maturities of operating lease liabilities were as follows as of December 31, 2024: | ||||||||
| 2025 | $ | 28,195 | ||||||
| 2026 | 29,267 | |||||||
| 2027 | 22,477 | |||||||
| Total future lease payments | 79,939 | |||||||
| Less: imputed interest | (6,303 | ) | ||||||
| Total | $ | 73,636 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 23, 2025 | Showing above |
| 2023 | Jun 5, 2024 | |
| 2022 | Jun 1, 2023 | |
| 2021 | Apr 1, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | May 14, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2016 | Mar 31, 2017 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.