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Note L - Related Party
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
NOTE
L
—RELATED PARTY
 
Licensing Agreement with Subsidiaries of China Goldjoy Group Limited.
 
On
November 11, 2015,
BIO-key Hong Kong Limited, a subsidiary of the Company, entered into a license purchase agreement with certain subsidiaries of China Goldjoy Group Limited (“CGG”). The license agreement provides for the grant of a perpetual, irrevocable, exclusive, worldwide, fully-paid license to all software and documentation regarding the software code, toolkit, electronic libraries and related technology currently known as or offered under the name, together with perpetual license under all related patents held by the licensors and any other intellectual property rights owned by the licensors related to the forgoing software.  The Company made a
one
-time payment of
$12,000,000
to the licensors. Mr. Yao Jianhu is the chairman and chief executive officer of CGG and a director of the Company. Mr. Wong Kwok Fong served as the chief technology officer of CGG through
October 2016
and is the beneficial owner of
21.6%
of the Company’s common stock, and a director and executive officer of the Company. During the
fourth
quarter of
2019,
the Company recorded an impairment charge of approximately
$7
million, bringing the carrying value of FingerQ license rights to zero. Refer Note G - Resalable License Rights for additional information.
 
Securities Purchase
Agreements with Wong Kwok Fong
 
On
April 3, 2018,
Wong Kwok Fong converted
39,088
of the Series A-
1
Shares at a conversion price of
$3.60
per share and
$330,552
of accrued dividends payable, resulting in the acquisition of
1,177,598
shares of the Company’s Common Stock.
 
On
May 31, 2018
Wong Kwok Fong converted
23,508
of the Series A-
1
Shares at a conversion price of
$3.60
per share and
$25,463
of accrued dividends payable, resulting in the acquisition of
660,073
shares of the Company’s Common Stock.
  
Non-Interest-Bearing Advances
 
During the
2019
fiscal year, the Company received a series of non-interest-bearing advances from Mr. Wong Kwok Fong, and Mr. Michael DePasquale, to pay current liabilities. The balance of the advances as at
December 31, 2019
was
$74,737
and
$114,000,
respectively, and was recorded in Accounts Payable and Accrued Liabilities (Other), respectively.
 
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