BIO-key settles $1.13M note with Streeterville Capital in stock swap

BIO-key International, Inc. (Nasdaq: BKYI) has fully satisfied a $1,130,000 secured promissory note owed to Streeterville Capital, LLC by exchanging a portion of the debt for 247,805 shares of common stock. The company disclosed the transaction in a Form 8-K filed with the Securities and Exchange Commission on October 2, 2026, reporting that four separate exchange agreements were executed on September 29, 2026.

The original note, dated September 30, 2025, carried a principal amount of $1,130,000. Under the terms of the new agreements, BIO-key partitioned four new promissory notes from the original instrument. These partitioned notes hold original principal amounts of $68,315.80, $116,000, $117,000, and $115,000. The aggregate principal of these four notes is $416,315.80.

Streeterville Capital exchanged the partitioned notes for an aggregate of 247,805 shares of BIO-key common stock. This exchange reduced the outstanding balance of the original note by $416,315.80 and resulted in the original note being paid in full. The issuance of these shares was not registered under the Securities Act of 1933 and was effected pursuant to the exemption provided in Section 3(a)(9) of the act.

Cecilia C. Welch, Chief Financial Officer of BIO-key International, signed the current report on behalf of the registrant. The company is headquartered in Holmdel, New Jersey, and its common stock trades on the Nasdaq Capital Market under the ticker symbol BKYI. The filing includes a form of exchange agreement as Exhibit 10.1.