BIO KEY INTERNATIONAL INC: Update on Nasdaq Listing

If you follow Bio-Key International, there is an important update regarding their stock. The company specializes in biometric security, including fingerprint hardware and identity management software. Nasdaq has officially suspended the company’s stock.

1. What happened?

As of the market close on May 12, 2026, Bio-Key’s common stock was suspended from the Nasdaq Capital Market. Starting May 13, 2026, the stock moved to the "OTC Markets" (specifically the OTCQB Venture Market). You can still trade the stock under the same ticker symbol, “BKYI.”

2. Why did it happen?

Bio-Key failed to meet two of Nasdaq’s listing rules:

• The Price Rule: Nasdaq requires a minimum bid price of $1.00 per share. Even after a reverse stock split, the stock failed to stay above $1.00 for the required 10 consecutive trading days.
• The Paperwork Rule: The company did not file its 2025 Annual Report (Form 10-K) with the SEC on time.

3. Why does this matter?

Moving to the OTC market changes the company's investment profile:

• Visibility: Many large institutional investors and mutual funds cannot hold stocks that aren't on a major exchange. This limits the number of potential buyers.
• Liquidity: OTC markets often have lower trading volumes and wider gaps between buy and sell prices. This may make it harder for you to trade at your preferred price.
• Perception: Delisting signals regulatory and financial trouble. This often hurts investor confidence, which can push the stock price down and make it harder for the company to raise money.

4. What is the company saying?

CEO Michael DePasquale claims the company’s operations remain on track. He points to growing recurring revenue as a sign of stability. Management aims to reach profitability in the first half of 2026. The company has hired consultants to finish the late 10-K report and manage an appeal with the Nasdaq Hearings Panel.

5. What should you know?

• Expect Volatility: Moving to the OTC market often causes bigger price swings as the market adjusts to lower liquidity and uncertainty.
• Check Your Broker: Not all brokers allow trading on the OTCQB market. Check your broker’s policies to ensure you can still manage your shares.
• Watch the Appeal: The company plans to ask for a hearing with a Nasdaq panel to present a plan to regain compliance. This is their best chance to return to the Nasdaq.
• Stay Cautious: Delisting shows the company failed to meet basic exchange requirements. Re-evaluate your risk tolerance, especially regarding the company's ability to finish its 2025 financial reports and reach its profit goals.

Final Thoughts for Investors

If you are currently holding BKYI, the most important next step is to monitor the company’s SEC filings for the release of that overdue 10-K report. Without that financial transparency, it is very difficult to gauge the company's true health. If you are considering buying, keep in mind that OTC stocks carry higher risks than those on major exchanges. Ensure you are comfortable with the potential for increased volatility and limited liquidity before making any moves.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and shouldn't be taken as professional investment advice. Always do your own research before making trades!