Financial Agreements - The Company entered into a new credit facility with Fifth Third Bank, providing a one-year revolving line of credit with a maximum commitment of 6million,expandableto10 million under certain conditions[23]. - The Company signed a Master Supply Agreement with East West Manufacturing for LMR products, resulting in the purchase of 77,520 shares of common stock valued at 1million,andawarranttopurchase135,300sharesat15.00 each[24]. - The Company’s share repurchase program allows for the repurchase of up to 5millionofcommonstock,withnoexpirationdate[26].SalesandRevenue−SalestogovernmentandpublicsafetyusersrepresentedsubstantiallyalloftheCompany′ssalesfor2024and2023[46].−SalestotheU.S.Governmentaccountedforapproximately3876.6 million in 2024, up from 74.1millionin2023,withU.S.salesat74.9 million and international sales at 1.7million[67].ManufacturingandProduction−TheCompanycompletedthetransitionofitsmanufacturingproductiontoEastWestManufacturinginQ32024[24].−Approximately17.021.8 million and 16.0millionasofDecember31,2024and2023,respectively[56].−Thebacklogchangesareprimarilyattributedtothetimingofordersandfulfillment,influencedbysupplychainfactors[56].ResearchandDevelopment−Engineeringanddevelopmentexpensesfor2024wereapproximately7.8 million, down from 9.3millionin2023,with1.3 million capitalized for the development of the BKR9500 mobile radio[48]. - The first product in the new BKR Series, the all-band BKR9000 portable radio, was released in April 2023, with ongoing development for the BKR9500 mobile radio[47]. - The Company has one U.S. patent awarded and two pending U.S. patent applications for its SaaS services products[43]. Workforce and Compliance - The company has 113 employees as of December 31, 2024, with 39 in customer service and distribution, and 34 in engineering[64]. - The company is subject to U.S. Federal Government procurement regulations, which may include audits and compliance reviews[59]. - Compliance with environmental and worker health and safety laws did not have a material effect on capital expenditures, earnings, or competitive position in 2024[63]. Market Position and Competition - The company competes primarily in the North American market, with Motorola Solutions, Inc. as a dominant competitor[57]. - The company’s wireless communications products are subject to FCC regulations, which may require migration to more spectrum-efficient digital technology[60]. - The company emphasizes a customer-centric approach and continuous improvement as part of its mission and guiding principles[66].
