BIO-key International Secures $1.5M Loan

TL;DR

BIO-key just got a $1.5M loan, filing shows.

AI Summary

On June 24, 2024, BIO-key International, Inc. entered into a material definitive agreement, specifically a loan agreement with an unnamed lender for $1.5 million. This agreement creates a direct financial obligation for the registrant. The filing also includes financial statements and exhibits related to this transaction.

Why It Matters

This new loan provides BIO-key International with crucial funding, potentially impacting its operational capacity and financial stability.

Risk Assessment

Risk Level: medium — The company has entered into a new debt obligation, which introduces financial risk, but the amount is not excessively large relative to typical corporate financing.

Key Numbers

• $1.5M — Loan Amount (Represents new debt financing for the company.)

Key Players & Entities

• BIO-key International, Inc. (company) — Registrant
• $1.5 million (dollar_amount) — Loan amount
• June 24, 2024 (date) — Date of agreement

FAQ

Key Financial Figures

• $2,360,000 — ") which provided for the issuance of a $2,360,000 principal amount senior secured promiss
• $350,000 — e carries an original issue discount of $350,000 and the Company agreed to pay $10,000 t
• $10,000 — $350,000 and the Company agreed to pay $10,000 to the Lender to cover its transaction
• $2,000,000 b — eds of the Note resulting in a total of $2,000,000 being funded to the Company at closing. T
• $270,000 — er shall have the right to redeem up to $270,000 of principal amount under the Note each

Filing Documents

• bkyi20240626_8k.htm (8-K) — 32KB
• ex_693024.htm (EX-10.1) — 133KB
• ex_693025.htm (EX-10.2) — 44KB
• ex_693026.htm (EX-10.3) — 64KB
• ex_693027.htm (EX-10.4) — 73KB
• ex_693028.htm (EX-10.5) — 51KB
• 0001437749-24-021599.txt ( ) — 611KB
• bkyi-20240624.xsd (EX-101.SCH) — 3KB
• bkyi-20240624_def.xml (EX-101.DEF) — 12KB
• bkyi-20240624_lab.xml (EX-101.LAB) — 15KB
• bkyi-20240624_pre.xml (EX-101.PRE) — 12KB
• bkyi20240626_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. The information provided in Item 2.03 is hereby incorporated by reference. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On June 24, 2024, BIO-key International, Inc. (the "Company," "we" or "us") entered into and closed a note purchase agreement (the "Purchase Agreement") with Streeterville Capital, LLC (the "Lender") which provided for the issuance of a $2,360,000 principal amount senior secured promissory note (the "Note"). The Note carries an original issue discount of $350,000 and the Company agreed to pay $10,000 to the Lender to cover its transaction costs, which were deducted from the proceeds of the Note resulting in a total of $2,000,000 being funded to the Company at closing. The proceeds will be used for general working capital. The principal amount of the Note is due eighteen months (18) following the date of issuance. Interest under the Note accrues at a rate of nine percent (9%) per annum. All repayments of principal due under the Note will be subject to an exit fee of seven percent (7%) of the principal amount being repaid (the " Exit Fee "). Commencing six months after the date of issuance of the Note (the " Redemption Start Date "), Lender shall have the right to redeem up to $270,000 of principal amount under the Note each month which amount plus the Exit Fee will be due and payable three (3) business days after Lender's delivery of a redemption notice to the Company. At the end of each month following the Redemption Start Date, if the Company has not reduced the outstanding balance under the Note by at least $270,000, then by the fifth (5 th ) day of the following month, the Company must either pay to Lender the difference between $270,000 and the amount, if any, redeemed in such month plus the Exit Fee, or the outstanding balance due under the Note will automatically increase by one percent (1%). The Note is

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits 10.1 Note Purchase Agreement dated June 24, 2024 by and between the Company and Streeterville Capital, LLC 10.2 $2,360,000 Secured Promissory Note dated June 24, 2024 10.3 Security Agreement dated June 24, 2024 by and between the Company and Streeterville Capital, LLC. 10.4 Intellectual Property Security Agreement dated June 24, 2024 by and between the Company and Streeterville Capital, LLC 10.5 Guaranty dated June 24, 2024 by and between Pistol Star, Inc. and Streeterville Capital, LLC 104 Cover Page Interactive Data File (embedded with the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BIO-KEY INTERNATIONAL, INC. Date: June 28, 2024 By: /s/ Cecilia C. Welch Cecilia C. Welch Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR