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Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
 
The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are
not
necessarily indicative of results that
may
be expected for any other interim period or for the full year. Pursuant to such rules and regulations, certain financial information and footnote disclosures normally included in the financial statements have been condensed or omitted. Significant intercompany accounts and transactions have been eliminated in consolidation.
 
In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company's financial position and the results of its operations and cash flows for the periods presented. The balance sheet at
December 31, 2019
was derived from the audited financial statements, but does
not
include all of the disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements should be read in conjunction with the financial statements and the related notes thereto included in the Company's Annual Report on Form
10
-K for the fiscal year ended
December 31, 2019,
filed with the SEC on
May 14, 2020,
and the
8
-K/A disclosing the financial statements of PistolStar, Inc. (“PistolStar”) filed on
July 28, 2020.
Business Combinations Policy [Policy Text Block]
Business Combinations
In accordance with ASC
805,
 
Business Combinations
 (ASC
805
), the Company recognizes the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. Determining these fair values requires management to make significant estimates and assumptions, especially with respect to intangible assets.
 
The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair value. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net acquisition date fair value of the assets acquired and the liabilities assumed and represents the expected future economic benefits arising from other assets acquired that are
not
individually identified and separately recognized. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, its estimates are inherently uncertain and subject to refinement. Assumptions
may
be incomplete or inaccurate, and unanticipated events or circumstances
may
occur, which
may
affect the accuracy or validity of such assumptions, estimates or actual results. As a result, during the measurement period, which
may
be up to
one
year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations.
 
Goodwill and acquired intangible assets
Goodwill is
not
amortized, but is evaluated for impairment annually, or whenever events or changes in circumstances indicate that the carrying value
may
not
be recoverable. The Company has determined that there is a single reporting unit for the purpose of conducting this goodwill impairment assessment. For purposes of assessing potential impairment, the Company estimates the fair value of the reporting unit, based on the Company's market capitalization, and compares this amount to the carrying value of the reporting unit. If the Company determines that the carrying value of the reporting unit exceeds its fair value, an impairment charge would be required. The annual goodwill impairment test will be performed as of 
December
31st
 of each year. To date, the Company has
not
identified any impairment to goodwill.
 
Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes acquired definite-lived intangible assets over their estimated useful lives based on the pattern of consumption of the economic benefits or, if that pattern cannot be readily determined, on a straight-line basis.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Issued Accounting Pronouncements
  
In
August 2018,
the FASB issued ASU
No.
2018
-
15,
 
Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement
That Is a Service Contract 
(“ASU
2018
-
15”
). ASU
2018
-
15
aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update to the standard is effective for interim and annual periods beginning after
December 15, 2019,
with early adoption permitted. Entities can choose to adopt ASU
2018
-
15
prospectively or retrospectively. The Company has assessed that ASU
2018
-
15
currently does
not
have a material impact on its consolidated financial statements.
 
In
June 2016,
the FASB issued ASU
2016
-
13,
Financial Instruments-Credit Losses
(Topic
326
), referred to herein as ASU
2016
-
13,
which significantly changes how entities will account for credit losses for most financial assets and certain other instruments that are
not
measured at fair value through net income. ASU
2016
-
13
replaces the existing incurred loss model with an expected credit loss model that requires entities to estimate an expected lifetime credit loss on most financial assets and certain other instruments. Under ASU
2016
-
13
credit impairment is recognized as an allowance for credit losses, rather than as a direct write-down of the amortized cost basis of a financial asset. The impairment allowance is a valuation account deducted from the amortized cost basis of financial assets to present the net amount expected to be collected on the financial asset. Once the new pronouncement is adopted by the Company, the allowance for credit losses must be adjusted for management's current estimate at each reporting date. The new guidance provides
no
threshold for recognition of impairment allowance. Therefore, entities must also measure expected credit losses on assets that have a low risk of loss. For instance, trade receivables that are either current or
not
yet due
may
not
require an allowance reserve under currently generally accepted accounting principles, but under the new standard, the Company will have to estimate an allowance for expected credit losses on trade receivables under ASU
2016
-
13.
ASU
2016
-
13
is effective for annual periods, including interim periods within those annual periods, beginning after
December 15, 2022
for smaller reporting companies. Early adoption is permitted. The Company is currently assessing the impact ASU
2016
-
13
will have on its condensed consolidated financial statements.
 
Management does
not
believe that any other recently issued, but
not
yet effective, accounting standard if currently adopted would have a material effect on the accompanying consolidated financial statements.