158 added · 178 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
This authoritative guidance can be applied prospectively or retrospectively and will be effective for fiscal years beginning after December 15, 2026, with early adoption permitted.
This authoritative guidance can be applied prospectively or retrospectively and will be effective for fiscal years beginning after December 15, 2026, with early adoption permitted.
The Company has adopted the ASU on a prospective basis and has made the applicable disclosure, as required, in its Annual Report Form 10-K for the year ended December 31, 2025.
In December 2023, the Financial Accounting Standards Board (“FASB") issued Accounting Standards Update (“ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, an accounting standard update to improve income statement expenses disclosures.
Based on information available, management believes the allowance for credit losses as of December 31, 2025 and 2024 is adequate. 22 Table of Contents Slow Moving, Excess or Obsolete Inventory The allowance for slow moving, excess or obsolete inventory was approximately $1.1 million and $1.7 million at December 31, 2025 and 2024, respectively.
We served as the Company’s auditor from 2024 to 2025. /s/ Forvis Mazars, LLP Orlando, Florida March 27, 2025 F-2 Table of Contents BK TECHNOLOGIES CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 22,788 $ 7,075 Trade accounts receivable, net 7,221 7,349 Inventories, net 15,862 17,636 Prepaid expenses and other current assets 3,099 4,881 Total current assets 48,970 36,941 Property, plant and equipment, net 4,170 4,911 Operating lease right-of-use (ROU) assets 1,502 1,128 Deferred tax assets, net 5,230 6,788 Capitalized software and systems integration costs 3,417 1,321 Other assets 471 410 Total assets $ 63,760 $ 51,499 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 4,781 $ 6,327 Accrued compensation and related taxes 2,423 2,289 Accrued warranty expense 760 1,008 Accrued other expenses and other current liabilities 335 1,894 Short-term operating lease liabilities 610 571 Deferred revenue 2,728 1,885 Total current liabilities 11,637 13,974 Long term operating lease liabilities 965 714 Deferred revenue 6,460 6,980 Total liabilities 19,062 21,668 Commitments and contingencies Stockholders’ equity: Preferred stock; $ 1.00 par value; 1,000,000 authorized shares; none issued or outstanding — — Common stock; $ 0.60 par value; 10,000,000 authorized shares; 4,092,056 and 3,913,959 issued and 3,733,733 and 3,571,879 outstanding shares as of December 31, 2025 and 2024, respectively 2,455 2,348 Additional paid-in capital 51,803 49,386 Accumulated deficit ( 2,314 ) ( 15,850 ) Treasury stock, at cost, 358,323 and 342,080 shares as of December 31, 2025, and 2024, respectively ( 7,246 ) ( 6,053 ) Total stockholders’ equity 44,698 29,831 Total liabilities and stockholders’ equity $ 63,760 $ 51,499 See notes to consolidated financial statements.
In November 2024, the FASB issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ): Disaggregation of Income Statement Expenses, an accounting standard update to improve income statement expenses disclosures.
Kyle Cerminara, who served as a director of the Company and chairman of the Board of Directors until December 14, 2023, was Chief Executive Officer, Co-Founder, and Partner of FG and served as chairman of the board of directors of FG Group Holdings Inc., the entity that was a majority Series B member in FG Holdings ILC.
Leases (Continued) Supplemental cash flow information related to leases was as follows: December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows (fixed payments) $ 625 $ 611 Operating cash flows (liability reduction) 571 528 Other information related to operating leases was as follows: December 31, 2025 2024 Weighted average remaining lease term (in years) 2.39 2.36 Weighted average discount rate 5.50% 5.50% Maturity of operating lease liabilities as of December 31, 2025 were as follows: Year ending December 31, 2026 $ 666 2027 435 2028 196 2029 199 2029 203 Thereafter 34 Total payments 1,733 Less: imputed interest ( 158 ) Total liability $ 1,575 9.
Income Taxes The components of income before provision for income taxes are as follows: Years Ended December 31, 2025 2024 Domestic 16,117 7,375 Income before income taxes 16,117 7,375 Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due.
Income Taxes (Continued) The income tax expense (benefit) is summarized as follows: Years Ended December 31, 2025 2024 Current: Federal $ 55 $ 489 State 968 1,199 1,023 1,688 Deferred: Federal 1,377 ( 1,581 ) State 181 ( 1,091 ) 1,558 ( 2,672 ) $ 2,581 $ ( 984 ) Beginning in 2025 annual reporting, we adopted ASU 2023 - 09 prospectively.
No longer disclosed
We are the resulting corporation from the reincorporation merger of our predecessor, Adage, Inc., a Pennsylvania corporation, which reincorporated from Pennsylvania to Nevada effective as of January 30, 1998.
When tethered to our radios, the combined solution offers an enhanced user experience with a more unique capability which increases the sales reach of our radios. 16 Table of Contents As we move forward into 2025, we plan to expand the SaaS business unit to include public safety solutions that provide for improved interoperability, intended to make the first responder safer and more efficient when operating in the field.
Supply chain constraints limited our ability to manufacture the quantities needed to convert the orders into shipments and sales revenue in 2022 and were carried in backlog of $27.0 million as of December 31, 2022, that were fulfilled during 2023.
Gross profit margins as a percentage of sales in 2024 were 37.9%, compared with 30.0% for the prior year, generally reflecting efficiencies from the transition of production to East West Manufacturing, LLC and cost reduction efforts in 2023 and 2024.
In 2024 we recognized other expenses, net totaling approximately $0.5 million, primarily attributed to net interest expense and net realized losses from our investment in FG Financial Holdings, LLC an entity related to the former Chairman of our Board of Directors.
Such increases in sales may cause quarterly variances in our cash flow from operations and overall financial condition. 17 Table of Contents Results of Operations As an aid to understanding our operating results, the following table shows items from our consolidated statements of operations expressed as a percentage of sales: Percent of Sales for Years Ended December 31, 2024 2023 Sales 100.0 % 100.0 % Cost of products (62.1 ) (70.0 ) Gross margin 37.9 30.0 Selling, general and administrative expenses (27.7 ) (31.0 ) Other (expense) income, net (0.6 ) (1.9 ) Income (loss) before income taxes 9.6 (2.9 ) Income tax benefit (expense) 1.3 (0.1 ) Net income (loss) 10.9 % (3.0 )% Fiscal Year 2024 Compared with Fiscal Year 2023 Sales, net For 2024, net sales increased approximately $2.5 million to approximately $76.6 million, compared with approximately $74.1 million for the prior year.
Supply chain constraints limited our ability to manufacture the quantities needed to convert the orders into shipments and sales revenue in 2022 and were carried in backlog of $27.0 million as of December 31, 2022, that were fulfilled during 2023.
Gross profit margins for the year ended December 31, 2024, increased compared with the same period last year primarily due to efficiencies from the transition of production of our radio products to East West Manufacturing LLC, as well as sales mix and material cost improvements related to cost reduction efforts.
While we have been able to procure the material necessary to manufacture our products and fulfill customer orders, there have been delays, extended lead times and increased costs within our supply chain that improved through fiscal year 2023 and had significantly less impact on our operations for 2024.
The improvement in operating income for the year is primarily attributed to increased gross margins, related to the transition of manufacturing production to East West Manufacturing LLC throughout the year 2024, as well as sales mix and material cost improvements related to cost reduction efforts.
Gain/Loss on Investments For the year ended December 31, 2024, we recognized a realized loss of approximately $91,000 on our investment in FG Financial Holdings, LLC compared with an unrealized loss on investments of approximately $740,000 for the year 2023.
If we incur future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of December 31, 2024. 19 Table of Contents Liquidity and Capital Resources For the year ended December 31, 2024, net cash provided by operating activities totaled approximately $11.4 million, compared with cash provided by operating activities of approximately $1.7 million for the prior year.