BIO KEY INTERNATIONAL INC

During thethree months ended* December 31, 2025,none of our directors or “officers” (as defined in Rule16a*-1(f) under the Securities Exchange Act of1934, as amended) adopted or terminated a “Rule10b5-1 trading arrangement” or “non-Rule10b5-1 trading arrangement,” as each term is defined in Item408 of Securities and Exchange Commission Regulation S-K.

Because this Annual Report on Form10-K is being filed withinfour business days from the date of the reportable event noted below, we have elected to make the following disclosure in this Annual Report on Form10-K instead of in a Current Report on Form8-K under Item2.06 - Material Impairments. The following disclosure is intended to satisfy the requirements of Item2.06 of Form8-K.

On* June 10, 2026,in connection with preparing audited financial statements for the fiscal year ended December 31, 2025,the Company completed its annual impairment testing of the value of its investment in shares of common stock of Boumarang, Inc. (the “Boumarang Shares”). The valuation of the Boumarang Shares was based on an independent valuation report prepared by athird* party which valued the Boumarang Shares at*$5.000,000* as of* December 31, 2025.The valuation was based in part on the anticipated revenues of Boumarang which havenot* been achieved as of* June 10, 2006.As a result, the Company determined to record a50%* impairment of its investment in Boumarang Shares which resulted in a material charge for impairment of*$2.5* million under U.S. generally accepted accounting principles. This noncash impairment charge is reflected in the Company’s audited financial statements for the fiscal year ended* December 31, 2025.The Company doesnot* anticipate that this charge will result in material future cash expenditures.