Financial Performance - For the three months ended June 30, 2023, the net loss was approximately $1.3 million ($0.39 per share), an improvement from a net loss of approximately $4.3 million ($1.28 per share) for the same period last year [121]. - For the six months ended June 30, 2023, the net loss totaled approximately $2.6 million ($0.77 per share), compared to a net loss of approximately $8.3 million ($2.45 per share) for the same period last year [121]. - The pretax loss for the three months ended June 30, 2023, was approximately $1.3 million, compared to a pretax loss of approximately $4.3 million for the same period in the prior year [102]. - The company recognized a net loss of approximately $1.3 million for Q2 2023, an improvement from a net loss of approximately $4.3 million in Q2 2022 [126]. - The net loss for the second quarter of 2023 was 7.1%, significantly improved from 35.8% in the same quarter last year [157]. - The operating loss for the second quarter of 2023 was approximately $0.8 million, or 4.1% of sales, compared to $3.7 million, or 30.4% of sales, for the same quarter last year [164]. Sales and Revenue - Customer orders reached a record of approximately $70 million in 2022, with strong demand continuing through Q2 2023 [123]. - Net sales for Q2 2023 increased by 56.9% to approximately $19.0 million, compared to approximately $12.1 million in Q2 2022 [127]. - For the six months ended June 30, 2023, net sales totaled approximately $37.7 million, up from approximately $18.7 million in the same period last year, representing a 101.7% increase [127]. - The gross profit margin for Q2 2023 was approximately 27.4%, compared to 14.2% for the same period last year, reflecting improved production volumes and reduced material costs [145]. Operational Metrics - As of June 30, 2023, the backlog of unshipped customer orders was approximately $24.0 million, down from $27.0 million as of December 31, 2022 [101]. - The company fulfilled approximately 76% of the 13,000 radio units in backlog during the first half of 2023 [119]. - Approximately 76% of the backlog of 13,000 radio units as of December 31, 2022, was fulfilled during the first six months of 2023 [156]. - The BKR 5000 portable radio was the primary contributor to orders and shipments in Q2 2023, with new models like the BKR 9000 achieving FCC compliance [128]. Expenses and Costs - SG&A expenses for Q2 2023 were approximately $6.0 million (31.5% of sales), down from approximately $5.4 million (44.6% of sales) in Q2 2022 [132]. - Engineering and product development expenses for the second quarter of 2023 totaled approximately $2.6 million, representing 13.7% of sales, compared to $2.3 million or 12.1% of sales for the same quarter last year [162]. - Other general and administrative expenses for the second quarter of 2023 totaled approximately $1.9 million, or 9.8% of sales, compared to $2.0 million, or 10.5% of sales, for the same quarter last year [163]. - The company recognized other expenses, net totaling approximately $0.6 million for the three months ended June 30, 2023, primarily due to unrealized losses from investments [120]. Cash Flow and Financing - Cash provided by operating activities for the six months ended June 30, 2023, totaled approximately $1.5 million, compared to cash used of approximately $5.3 million in the same period last year [140]. - Outstanding borrowings under the credit facility were approximately $6.6 million, with receivables transferred under this facility amounting to $7.2 million [104]. - Cash used in investing activities for the six months ended June 30, 2023, totaled approximately $0.9 million, an increase from $0.7 million for the same period last year [169]. Future Outlook - The company anticipates ongoing challenges from material shortages and inflation, which could adversely impact future sales and gross profit margins [158]. - The company established a valuation allowance of $4.1 million for deferred tax assets as of June 30, 2023, due to insufficient taxable income generation [167]. - The company is increasing its utilization of U.S.-based resources to enhance production security and control [160]. Business Units - The company operates two business units: Radio and SaaS, focusing on public safety communications products [99]. - The SaaS business unit aims to deliver innovative smartphone applications for public safety, enhancing the functionality of the company's radio products [118].

BK Technologies Corp. (NYSE:BKTI) Q1 2023 Results Conference Call May 4, 2023 9:00 AM ET Company Participants John Nesbett - IMS IR John Suzuki - CEO Scott Malmanger - CFO Conference Call Participants Orin Hirschman - AIGH Partners Scott Weis - Semco Capital Operator Good morning, ladies and gentlemen, and welcome to the BKTI First Quarter 2023 Earnings Call. This call is being recorded. [Operator Instructions] Following management’s remarks, the call will be open to questions. There is a slide presentation ...

BK TECHNOLOGIES CORPORATION Condensed Consolidated Balance Sheets (In thousands, except share data) | --- | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|----------| | Accrued compensation and related taxes | 1,573 | 1,143 | | Accrued warranty expense | 669 | 591 | | Accrued other expenses and oth ...

Financial Data and Key Metrics Changes - In Q4 2022, the company reported sales of approximately $20.3 million, up from $12.8 million in the same quarter last year, indicating significant growth [72] - Gross profit margins decreased to 22% in Q4 2022 from 36% in the same quarter last year, primarily due to increased material and freight costs, along with a one-time inventory adjustment of $254,000 [8][9] - The company recorded a net loss of $961,000 or $0.06 per share in Q4 2022, compared to a net loss of $303,000 or $0.02 per share in the prior year [9] Business Line Data and Key Metrics Changes - The BKR 5000 radio saw strong demand, with a record shipment of 11,200 units in Q4 2022, more than double the amount shipped in Q3 2022 [3] - The company is targeting the shipment of 32,000 to 36,000 radio units in 2023, representing a growth of 25% to 40% compared to 2022 [4] Market Data and Key Metrics Changes - The addressable market for the InteropONE service is estimated to be around $150 million, assuming low single-digit market penetration [25] - The company has received its first order from a large public safety agency in a top 5 U.S. metropolitan market, indicating growing market interest [66] Company Strategy and Development Direction - The company aims to establish a strong presence in federal, state, and local public safety markets with the BKR 9000 and InteropONE [11] - The focus for 2023 includes maximizing production efficiency and targeting a gross margin of 35% for the full year [27][57] - The decision to suspend dividends was made to prioritize capital allocation towards organic growth, particularly for the BKR 5000, BKR 9000, and the SaaS division [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2023 with strong backlog and bookings momentum, alongside the anticipated launch of the BKR 9000 [4] - The company expects margin improvement in Q1 2023 and throughout the year, driven by incremental product cost improvements [14][27] - Management highlighted the importance of the InteropONE service in improving first responder response times, which could save lives [7] Other Important Information - The company has approximately $1.9 million in cash and cash equivalents and only $329,000 in long-term debt, providing a solid liquidity position for growth [56] - The company added a second production line at its facility, significantly increasing manufacturing capacity [67] Q&A Session Summary Question: What does the gross margin say about the ability to raise prices? - Management indicated that while there is some ability to raise prices, many contracts were signed at earlier pricing levels, which are still being fulfilled [17][77] Question: When will sales of the BKR 9000 commence? - Sales of the BKR 9000 cannot begin until FCC authorization is received, which is expected shortly [18][68] Question: Does everyone need the InteropONE app for it to work? - The app is free to download, and users can join a talk group quickly through a text message link sent by a host agency [20][35][82]

Financial Performance - BK Technologies Corporation reported net sales of $50,951,000 for the year ended December 31, 2022, an increase of 12% compared to $45,364,000 in 2021[48]. - The net loss for the year ended December 31, 2022, was $11,633,000, compared to a net loss of $1,701,000 in 2021, reflecting a substantial decline in profitability[48]. - The company recognized an operating loss of approximately $11.1 million (21.7% of sales) in 2022, compared to an operating loss of $1.2 million (2.6% of sales) in the previous year[136][147]. - The net loss for 2022 totaled approximately $11.6 million ($0.69 per basic share), compared to a net loss of approximately $1.7 million ($0.11 per basic share) in 2021[149]. - The company incurred operating losses and reported negative cash flows from operations during 2022 and 2021, impacted by worldwide shortages of materials[91]. Expenses and Liabilities - The company incurred a total operating expense of $62,032,000 in 2022, which is a significant increase from $46,560,000 in 2021, leading to an operating loss of $11,081,000[48]. - Total liabilities increased to $28,697,000 in 2022 from $17,767,000 in 2021, indicating a rise in the company's financial obligations[45]. - Selling, general and administrative (SG&A) expenses totaled approximately $20.9 million, representing 41.1% of sales, compared to $17.5 million (38.5% of sales) in 2021[131][147]. - The company incurred net interest expense of approximately $144,000 in 2022, compared to $53,000 in the prior year[138]. Cash Flow and Assets - Cash and cash equivalents at the end of 2022 were $1,918,000, a decrease from $10,580,000 at the beginning of the year, reflecting a net change of $(8,662,000)[56]. - Net cash used in operating activities for 2022 was $(9,000,000), compared to $(6,302,000) in 2021, indicating a worsening cash flow situation[56]. - Total current assets decreased to $36,217,000 in 2022 from $37,421,000 in 2021, while total assets decreased to $48,832,000 from $50,385,000[45]. - Working capital as of December 31, 2022, was approximately $13.2 million, down from $25.2 million at the end of 2021[151]. Inventory and Accounts - The company recorded an allowance for slow-moving, excess, and obsolete inventory of approximately $1,247,000 as of December 31, 2022[30]. - Inventory levels increased by approximately $5.1 million during the year ended December 31, 2022, attributed to extended supply-chain lead times[178]. - The company experienced an increase in accounts payable of approximately $7.0 million for the year ended December 31, 2022, compared to an increase of approximately $0.8 million for the prior year[178]. - Accounts receivable increased by approximately $2.4 million during the year ended December 31, 2022, primarily due to the timing of sales[178]. Shareholder Equity and Stock Options - Total stockholders' equity at December 31, 2022, was $20,135,000, down from $32,618,000 at December 31, 2021, indicating a decrease of approximately 38.4%[50]. - The weighted average shares outstanding for basic and diluted earnings per share increased to 16,911,000 in 2022 from 14,941,000 in 2021[48]. - Share-based compensation expense for stock options was $271,000 in 2022, up from $253,000 in 2021, showing a 7.1% increase in compensation costs[56]. - The Company recorded non-cash restricted stock unit compensation expense of $404,000 for the year ended December 31, 2022, compared to $306,000 for 2021, reflecting a 32% increase[209]. Research and Development - Engineering, research and development costs for the years ended December 31, 2022 and 2021 were $9,604,000 and $8,203,000, respectively[95]. - Engineering and product development expenses for 2022 were approximately $9.6 million (18.8% of sales), including a one-time write-off of $646,000[132]. Market and Operational Challenges - The company anticipates that supply chain constraints may continue to impact operations and sales in the upcoming quarters[125][130]. - Approximately 17.0% of the Company's material procurements in 2022 were sourced internationally, down from 32.4% in 2021[85]. - The company recorded a liability for estimated costs under its product warranties, which are based on historical experience[100]. Customer Orders and Sales Growth - In 2022, the company achieved record customer orders of approximately $70 million, an increase from previous years[153]. - For the fiscal year 2022, net sales increased by approximately $5.6 million to approximately $51.0 million, compared to approximately $45.4 million in 2021[156]. - As of December 31, 2022, the current backlog of customer orders is healthy, with expectations to fulfill many during the first half of 2023[124][146].

BK Technologies Corporation (NYSE:BKTI) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET Company Participants John Suzuki - CEO & Director John Nesbett - IMS Investor Relations Scott Malmanger - Interim CFO, Principal Accounting Officer & Company Secretary Conference Call Participants Brett Reiss - Janney Montgomery Scott Operator Good morning, ladies and gentlemen, and welcome to the BK Technologies Corporation Conference Call for the Third Quarter 2022. This call is being recorded. [Operator I ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended September 30, 2022, detailing balance sheets, statements of operations, and cash flows, reflecting key financial changes Condensed Consolidated Balance Sheet (Unaudited) | Account | Sep 30, 2022 ($ in thousands) | Dec 31, 2021 ($ in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 4,034 | 10,580 | | Trade accounts receivable, net | 5,379 | 8,229 | | Inventories, net | 26,332 | 16,978 | | Total current assets | 37,456 | 37,421 | | Total assets | 49,038 | 50,385 | | **Liabilities & Equity** | | | | Accounts payable | 13,257 | 4,458 | | Total current liabilities | 22,824 | 12,234 | | Total liabilities | 28,045 | 17,767 | | Total stockholders' equity | 20,993 | 32,618 | | Total liabilities and stockholders' equity | 49,038 | 50,385 | Condensed Consolidated Statements of Operations (Unaudited) | Metric | Three Months Ended Sep 30, 2022 ($ in thousands) | Three Months Ended Sep 30, 2021 ($ in thousands) | Nine Months Ended Sep 30, 2022 ($ in thousands) | Nine Months Ended Sep 30, 2021 ($ in thousands) | | :--- | :--- | :--- | :--- | :--- | | Sales, net | 11,917 | 12,626 | 30,612 | 32,526 | | Cost of products | 9,676 | 8,488 | 25,175 | 20,914 | | Operating loss | (2,391) | (370) | (9,515) | (1,422) | | Net loss | (2,402) | (2,566) | (10,672) | (1,398) | | Net loss per share-basic | (0.14) | (0.15) | (0.63) | (0.10) | Condensed Consolidated Statements of Cash Flows (Unaudited, Nine Months Ended) | Activity | Sep 30, 2022 ($ in thousands) | Sep 30, 2021 ($ in thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (6,858) | (3,619) | | Net cash used in investing activities | (959) | (1,921) | | Net cash provided by financing activities | 1,271 | 12,801 | | Net change in cash and cash equivalents | (6,546) | 7,261 | | Cash and cash equivalents, end of period | 4,034 | 14,087 | - On October 27, 2022, the Company entered into a Letter of Intent for a new one-year Line of Credit of up to **$15 million** to replace the existing JPMorgan Chase facility and for working capital[99](index=99&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the 5.6% Q3 2022 revenue decline due to supply chain issues and Hurricane Ian, sharply reduced gross profit margins, increased SG&A, and a higher operating loss, while addressing liquidity management and credit facility negotiations - Customer demand and orders remained strong in Q3 2022, but supply chain constraints and Hurricane Ian limited product shipments, increasing backlog[126](index=126&type=chunk)[137](index=137&type=chunk) Q3 and Nine-Month 2022 Performance vs. 2021 | Metric | Q3 2022 | Q3 2021 | Change | Nine Months 2022 | Nine Months 2021 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales | $11.9M | $12.6M | -5.6% | $30.6M | $32.5M | -5.9% | | Gross Profit Margin | 18.8% | 32.8% | -14.0 p.p. | 17.8% | 35.7% | -17.9 p.p. | | SG&A Expenses | $4.6M | $4.5M | +2.8% | $15.0M | $13.0M | +14.7% | | Operating Loss | ($2.4M) | ($0.4M) | +500% | ($9.5M) | ($1.4M) | +578% | | Net Loss | ($2.4M) | ($2.6M) | -7.7% | ($10.7M) | ($1.4M) | +664% | - Gross profit margin declined due to increased material and freight costs, leading to suboptimal manufacturing overhead absorption[143](index=143&type=chunk) - Net cash used in operating activities for the nine months ended September 30, 2022, was **$6.9 million**, primarily due to net loss and a **$9.4 million** inventory increase to mitigate supply chain risks[160](index=160&type=chunk)[161](index=161&type=chunk) - The company manages liquidity with its **$5 million** JPMC credit facility, with **$4.46 million** outstanding as of September 30, 2022, expiring January 31, 2023[166](index=166&type=chunk)[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) The company is not required to provide disclosure under this item as it qualifies as a "smaller reporting company" according to Regulation S-K - As a "smaller reporting company" under Regulation S-K, the Company is not required to include market risk disclosures[177](index=177&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting during the third quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the reporting period end[179](index=179&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the third quarter of 2022[180](index=180&type=chunk) [PART II - OTHER INFORMATION](index=30&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20RISK%20FACTORS) The company reports no material changes to the Risk Factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes occurred to the Risk Factors disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021[184](index=184&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's credit agreement limitations on dividends and a **$5 million** share repurchase program authorized in December 2021, under which no shares were repurchased in Q3 2022 - The Board authorized a share repurchase program on December 21, 2021, allowing purchases of up to **$5 million** of common shares[186](index=186&type=chunk) Issuer Purchases of Equity Securities (Q3 2022) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares that May Still be Purchased ($) | | :--- | :--- | :--- | :--- | | July 1–31, 2022 | — | — | 5,000,000 | | August 1–31, 2022 | — | — | 5,000,000 | | September 1–30, 2022 | — | — | 5,000,000 | | **Quarter Ended Sep 30, 2022** | **—** | **$ —** | **$ 5,000,000** | [Item 6. Exhibits](index=31&type=section&id=Item%206.%20EXHIBITS) This section provides an index of exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The report includes required exhibits such as CEO and CFO certifications under Sarbanes-Oxley Act Sections 302 and 906, and various XBRL documents[191](index=191&type=chunk)[192](index=192&type=chunk) [Signatures](index=32&type=section&id=SIGNATURES) - The report was duly signed and authorized on November 4, 2022, by John M. Suzuki, CEO, and Scott A. Malmanger, Interim CFO[196](index=196&type=chunk)

| --- | --- | --- | |--------------------------------------|-----------------|-----------------| | | | | | | | | | SECOND QUARTER 2022 EARNINGS RESULTS | BK TECHNOLOGIES | | | NYSE American: BKTI | | August 11, 2022 | DISCLOSURES 2 2 Forward-Looking Statements This presentation contains certain forward-looking statements that are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company's operations, economic p ...

Financial Data and Key Metrics Changes - The company reported revenues of just over $12 million for Q2 2022, an increase from $11.3 million in the same quarter last year [17] - Q2 bookings reached a record $19 million, with first half bookings increasing by 50% compared to the first half of 2021 [17][5] - Gross profit margins for Q2 were 14.2%, down from 38.4% in the same quarter last year, primarily due to component shortages and increased production costs [18] - The operating loss for Q2 totaled $3.7 million, compared to an operating loss of $200,000 in the same quarter last year [19] Business Line Data and Key Metrics Changes - The BKR 5000 radio saw strong traction, achieving record bookings of $19 million in Q2 2022 and $34 million in the first half of the year, representing a 50% increase compared to the first half of 2021 [7][5] - The company is making progress on the BKR 9000 multi-band device, with a targeted launch in Q4 2022 [12][5] - The new Software-as-a-Service (SaaS) business unit has launched, focusing on subscription-based solutions for responders [6] Market Data and Key Metrics Changes - The company added a second production line in its Melbourne, Florida facility to meet increased demand and fulfill a backlog of $26.8 million in orders [8] - The company anticipates delivering between 16,000 and 18,400 units in the second half of 2022, significantly increasing from just over 8,500 radios delivered in the first half [11] Company Strategy and Development Direction - The company aims to exceed $100 million in revenue by 2025, driven by the BKR 5000, the upcoming BKR 9000, and the SaaS business unit [21] - The BKR 9000 is expected to transform the addressable market by adding verticals such as police, structural fire, and emergency medical services [12] - The SaaS applications are positioned to leverage advancements in smartphone technology and the LTE 5G network to enhance public safety communications [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about margin improvement in the second half of 2022 as component availability increases and pricing pressures ease [10][18] - The company is actively raising prices where possible to address current pricing environments and is also focusing on cost reductions [28] Other Important Information - The company recognized an unrealized non-cash loss of approximately $600,000 on its investment in FG Financial Group for the quarter [20] - The company has filed for three patents related to Push-to-Talk-Over-Cellular and other cellular-based smartphone applications [16] Q&A Session Summary Question: Margin improvement expectations - Management indicated that component shortages have caused temporary pricing pressures, but they expect margins to improve in the back half of 2022 as these pressures ease [22][23] Question: Pricing strategy amidst inflation - Management confirmed that they are raising prices where possible, although long-term contracts with the federal government may limit flexibility [27][28] Question: Status of the BKR 9000 - Management confirmed that production setup is ongoing and they are confident in launching the BKR 9000 in Q4 2022 [30][33]

Financial Performance - For the second quarter of 2022, sales increased by 6.8% to approximately $12.1 million compared to approximately $11.3 million for the same quarter last year [125]. - For the six months ended June 30, 2022, sales totaled approximately $18.7 million, compared to approximately $19.9 million for the same period last year, reflecting a decline [125]. - For Q2 2022, the company reported a net loss of approximately $4.3 million ($0.26 per share), compared to a net income of approximately $1.8 million ($0.14 per share) in Q2 2021 [130]. - For the first six months of 2022, the company reported a net loss of approximately $8.3 million, compared to a net income of approximately $1.2 million for the same period last year [159]. Profitability Metrics - Gross profit margins for the second quarter of 2022 were approximately 14.2%, down from 38.4% for the same quarter last year [126]. - Gross profit margin for Q2 2022 was approximately 14.2%, a significant decrease from 38.4% in Q2 2021 [139]. - The company recognized an operating loss of approximately $3.7 million for the second quarter of 2022, compared to an operating loss of approximately $0.2 million for the same quarter last year [128]. - The operating loss for Q2 2022 was approximately $3.7 million (30.4% of sales), compared to an operating loss of approximately $0.2 million (1.8% of sales) in Q2 2021 [149]. Expenses - SG&A expenses for the second quarter of 2022 totaled approximately $5.4 million, an increase from approximately $4.6 million for the same quarter last year [127]. - SG&A expenses for the six-month period ended June 30, 2022, increased by 21.1% to approximately $10.3 million compared to approximately $8.5 million for the same period last year [127]. - SG&A expenses for Q2 2022 totaled approximately $5.4 million (44.6% of sales), up from approximately $4.6 million (40.2% of sales) in Q2 2021 [144]. - Engineering and product development expenses for Q2 2022 were approximately $2.3 million (18.9% of sales), consistent with the same amount in Q2 2021 [145]. Supply Chain and Operational Challenges - Supply chain constraints limited the ability to manufacture the quantities needed to fulfill all customer orders, resulting in a backlog [123]. - Customer demand remained strong, but supply chain constraints limited the ability to convert orders into shipments and sales revenue [135]. - The company anticipates fulfilling many of the backlog orders in subsequent quarters, despite ongoing supply chain challenges [135]. - The company faced increased costs and inventory levels for certain components due to worldwide shortages, particularly in semiconductors and integrated circuits [120]. - The ongoing geopolitical conflicts and related sanctions may continue to adversely impact the company's business and financial results [120]. Balance Sheet and Cash Flow - As of June 30, 2022, working capital was approximately $17.4 million, down from approximately $25.2 million as of December 31, 2021 [131]. - Cash used in investing activities totaled approximately $0.7 million for the six months ended June 30, 2022, down from approximately $1.5 million for the same period last year [160]. - Cash provided by financing activities was approximately $1.3 million for the six months ended June 30, 2022, compared to approximately $13.2 million for the same period last year [161]. - The company had an outstanding balance of $3,958 under the Credit Agreement as of June 30, 2022, with a net balance availability of $1,042 [167]. - The company’s cash and cash equivalents balance at June 30, 2022, was approximately $5.9 million, which is expected to meet working capital requirements for the foreseeable future [169]. - The company is in compliance with all covenants under the Credit Agreement as of June 30, 2022 [167]. Investments and Unrealized Gains/Losses - The company recognized an unrealized loss of approximately $0.6 million on its investment in FG Financial for Q2 2022, compared to an unrealized gain of approximately $2.3 million in Q2 2021 [151]. - The company experienced an unrealized loss on securities totaling approximately $1.1 million for the six months ended June 30, 2022, compared to an unrealized gain of approximately $2.5 million for the same period last year [159].