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Note N - Related Party Transactions
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
NOTE N
—
RELATED PARTY TRANSACTIONS
 
Licensing Agreement with Subsidiaries of GSFG.
 
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 served as a director of the Company until
August 6, 2020.
Mr. Wong Kwok Fong served as the chief technology officer of CGG through
October 2016
and is principal stockholder, 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 to Note I - Resalable License Rights for additional information.
 
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, which were both repaid in full during
2020.