BK Technologies(US:BKTI)2025-05-13 11:27Financial Performance - The net income for the three months ended March 31, 2025, was $2,132, leading to a basic income per share of $0.60 and diluted income per share of $0.55[57]. - The Company recorded an income tax expense of $670 for the three months ended March 31, 2025, resulting in an effective tax rate of 24.8%[47]. - Non-cash share-based employee compensation expense was $118 for the three months ended March 31, 2025, compared to $55 for the same period last year[58]. - The Company recorded non-cash share-based employee compensation expense of $275 for the three months ended March 31, 2025, compared to $121 for the same period last year, reflecting a significant increase of approximately 127%[61]. - The total lease cost for the three months ended March 31, 2025, was $169, slightly up from $168 for the same period last year[76]. Inventory and Receivables - Inventories as of March 31, 2025, totaled $16,233, a decrease from $17,636 as of December 31, 2024, with allowances for slow-moving inventory at approximately $1,624[46]. - The allowance for credit losses on trade receivables was approximately $50 on gross trade receivables of $10,221 as of March 31, 2025[45]. - The Company had purchase commitments for inventory totaling approximately $11,835 as of March 31, 2025[63]. Manufacturing and Operations - The Company transitioned its manufacturing activities to East West Manufacturing, which will exclusively manufacture the Company's radio product line under a three-year agreement[42]. - East West purchased 77,520 shares of the Company's common stock for $1,000, at a price per share of $12.90, based on the average closing price over the previous 30 trading days[42]. - The Company issued 89,248 shares of Common Stock to East West Manufacturing, LLC as a result of a cashless exercise of a warrant on May 2, 2025[78]. Liabilities and Legal Matters - The Company assessed its liabilities and contingencies related to legal matters, stating that no pending material claims or legal matters were present as of March 31, 2025[62]. - The Company recorded a decrease in the valuation allowance of approximately $3.6 million for deferred tax assets as of December 31, 2024[49]. Market Conditions - Geopolitical tensions have led to market volatility, which could impact the Company's operations and financial performance[65]. - Sales to United States government agencies represented approximately $2,078 (10.9%) of the Company's net total sales for the three months ended March 31, 2025, a decrease from $9,830 (53.9%) in the same period last year[64]. Credit Facilities - 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 $6 million, expandable to $10 million under certain conditions[41]. - The Company has not utilized funding under the $6 million Revolving Loan Commitment as of March 31, 2025, with no outstanding borrowings[66][70]. Capital Expenditures - Capitalized product development costs increased to $440 for the three months ended March 31, 2025, compared to $147 for the same period in 2024[52]. - As of March 31, 2025, the Company had outstanding stock options totaling 320,168, with a weighted average exercise price of $16.25 and an aggregate intrinsic value of $7,354,353[60]. Lease Information - The weighted average remaining lease term as of March 31, 2025, was 2.14 years, with a weighted average discount rate of 5.50%[77].