BIO-key International Enters into $2.5 Million Warrant Inducement Transaction

HOLMDEL, N.J., Aug. 11, 2026 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (Nasdaq: BKYI), a global innovator in Identity and Access Management (IAM) and biometric authentication solutions, today announced it has entered into a warrant inducement agreement with an existing institutional investor for the exercise of certain outstanding warrants that the Company issued on October 28, 2025 (the “Warrants”). Pursuant to the warrant inducement agreement, the investor has agreed to exercise the Warrants to purchase an aggregate of 618,334 shares of the Company's common stock at a reduced exercise price of $4.06 per share, subject to compliance with beneficial ownership blocker provisions included in the Warrants. The gross proceeds from the exercise of the Warrants are expected to be approximately $2.5 million, prior to deducting placement agent fees and estimated offering expenses.

Maxim Group LLC is acting as the exclusive Placement Agent for the transaction.

In consideration for the exercise of the Warrants, the Company also agreed to issue to the investor unregistered warrants to purchase an aggregate of 1,236,668 shares of the Company's common stock with an exercise price of $4.06 per share (the “New Warrants”). The New Warrants will be exercisable upon the receipt of stockholder approval of the exercise of the New Warrants in accordance with applicable Nasdaq rules and have a term of exercise equal to five years from the date of such stockholder approval. The Company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issuable upon exercise of the New Warrants. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About BIO-key International, Inc. (www.bio-key.com)
BIO-key International (NASDAQ: BKYI) is a global provider of Identity and Access Management (IAM) and biometric authentication solutions, protecting more than 40 million users worldwide. BIO-key’s PortalGuard platform delivers enterprise-grade Multi-Factor Authentication, Single Sign-On, passwordless authentication, biometric identity verification, and Identity-Bound Biometrics (IBB), helping organizations strengthen security while simplifying user access across cloud and on-premises environments.

BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. BIO-key undertakes no obligation to update any forward-looking statements except as required by applicable law.

Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI@catalyst-ir.com or 212-924-9800