BIO KEY INTERNATIONAL INC Revenue Disclosure

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, 2024 and 2023:

 

		North																December 31,
		America				Africa				EMESA*				Asia				2024
License fees		$	2,410,624			$	1,490,256			$	1,282,176			$	6,314			$	5,189,370
Hardware			154,931				-				391,764				85,000				631,695
Services			898,686				162,467				47,353								1,108,506
Total revenues		$	3,464,241			$	1,652,723			$	1,721,293			$	91,314			$	6,929,571

 

		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		$	3,236,097			$	654,446			$	3,796,524			$	67,837			$	7,754,905

 

* EMESA – Europe, Middle East, South America

 

Revenue recognized during the year ended December 31, 2024 from amounts included in deferred revenue at the beginning of the year was approximately $508,000. Revenue recognized during the year ended December 31, 2023 from amounts included in deferred revenue at the beginning of the year was approximately $467,000. Total deferred revenue (contract liability) was approximately $970,000 and $443,000 at December 31, 2024 and 2023, respectively.  The contract liability is derived by an 18% carve-out on subscription orders which is based on industry standards and our current maintenance and support charge for perpetual licenses. Services revenue decreased $1,110,379 from year ended December 31, 2023 to December 31, 2024 which was largely attributed to one customer with a 70% cost the services.  License fees increased $847,297 from year ended December 31, 2023 to December 31, 2024 which a trend that we expect to continue.

 

Transaction Price Allocated to the Remaining Performance Obligations

 

ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied. The guidance provides certain practical expedients that limit this requirement, which the Company’s contracts meet as follows:

 

●

The performance obligation is part of a contract that has an original expected duration of one year or less, in accordance with ASC 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 to five years.