bkti20250930

bkti20250930_10q.htm

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-32644

BK Technologies Corporation

(Exact name of registrant as specified in its charter)

Nevada		83-4064262
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

7100 Technology Drive

West Melbourne, Florida 32904

(Address of principal executive offices and Zip Code)

Registrant’s telephone number, including area code: (321) 984-1414

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, par value $0.60 per share		BKTI		NYSE American

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 3,732,241 shares of common stock, $0.60 par value, of the registrant outstanding as of October 31, 2025.

Table of Contents

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION		3

Item 1.	FINANCIAL STATEMENTS (UNAUDITED)	3

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	17

Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	25

Item 4.	CONTROLS AND PROCEDURES	26

PART II - OTHER INFORMATION		28

Item 1.	LEGAL PROCEEDINGS	28

Item 1A.	RISK FACTORS	28

Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	29

Item 5.	OTHER INFORMATION	29

Item 6.	EXHIBITS	30

SIGNATURES		31

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PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (UNAUDITED)

BK TECHNOLOGIES CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except share data)

	*September 30,*			December 31,
	*2025*			2024
		*(Unaudited)*
ASSETS

Current assets:
Cash and cash equivalents	$	21,471		$	7,075
Trade accounts receivable, net		7,579			7,349
Inventories, net		18,575			17,636
Prepaid expenses and other current assets		4,123			4,881
Total current assets		51,748			36,941

Property, plant and equipment, net		4,464			4,911
Operating lease right-of-use (ROU) assets		764			1,128
Deferred tax assets, net		6,620			6,788
Capitalized product development cost		2,837			1,321
Other assets		431			410
Total assets	$	66,864		$	51,499

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	10,835		$	6,327
Accrued compensation and related taxes		2,492			2,289
Accrued warranty expense		850			1,008
Accrued other expenses and other current liabilities		635			1,894
Short-term operating lease liabilities		489			571
Deferred revenue		2,604			1,885
Total current liabilities		17,905			13,974

Long-term operating lease liabilities		372			714
Long-term uncertain tax position liability		1,419			—
Deferred revenue		6,218			6,980
Total liabilities		25,914			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; 4,084,386 and 3,913,959 issued, and 3,742,306 and 3,571,879 outstanding shares as of September 30, 2025 and December 31, 2024, respectively		2,451			2,348
Additional paid-in capital		51,093			49,386
Accumulated deficit		(6,541	)		(15,850	)
Treasury stock, at cost, 342,080 shares as of September 30, 2025, and December 31, 2024		(6,053	)		(6,053	)
Total stockholders’ equity		40,950			29,831
Total liabilities and stockholders’ equity	$	66,864		$	51,499

See Accompanying Notes to Condensed Consolidated Financial Statements.

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BK TECHNOLOGIES CORPORATION

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data) (Unaudited)

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*			September 30,			*September 30,*			September 30,
	*2025*			2024			*2025*			2024
Sales, net	$	24,411		$	20,179		$	64,630		$	58,664
Expenses:
Cost of products		12,222			12,343			33,453			36,993
Gross margin		12,189			7,836			31,177			21,671

Selling, general and administrative expenses:
Engineering and product development		2,771			1,861			7,805			5,922
Marketing and selling		2,130			1,459			5,910			4,617
General and administrative		2,443			1,905			5,704			5,513
Total selling, general and administrative expenses		7,344			5,225			19,419			16,052

Operating income		4,845			2,611			11,758			5,619

Other income (expense):
Net interest income (expense)		94			(1	)		136			(281	)
Gain on disposal of property, plant and equipment		—			—			—			2
Loss on investments		—			—			—			(91	)
Other expense		(51	)		(6	)		(188	)		(59	)
Total other income (expense), net		43			(7	)		(52	)		(429	)

Income before income taxes		4,888			2,604			11,706			5,190

Provision for income tax expense		(1,452	)		(247	)		(2,397	)		(488	)

Net income		3,436			2,357			9,309			4,702

Earnings per share-basic:	$	0.93		$	0.67		$	2.56		$	1.33
Earnings per share-diluted:	$	0.87		$	0.63		$	2.38		$	1.30
Weighted average shares outstanding-basic		3,708,717			3,539,841			3,643,097			3,536,100
Weighted average shares outstanding-diluted		3,951,433			3,751,073			3,913,148			3,623,241

See Accompanying Notes to Condensed Consolidated Financial Statements.

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BK Technologies Corporation

Condensed Consolidated Statements of Changes in Equity

(In thousands, except share and per share data) (Unaudited)

	*Common*		*Common*		*Additional*
	*Stock*		*Stock*		*Paid-In*			*Accumulated*			*Treasury*
	*Shares*		*Amount*		*Capital*			*Deficit*			*Stock*			*Total*
Balance at December 31, 2024		3,913,959	$	2,348	$	49,386		$	(15,850	)	$	(6,053	)	$	29,831
Common stock issued under restricted stock units		13,764		7		(7	)		—			—			—
Common stock issued-stock options		1,148		1		12			—			—			13
Share-based compensation expense-stock options		—		—		118			—			—			118
Share-based compensation expense-restricted stock units		—		—		275			—			—			275
Net income		—		—		—			2,132			—			2,132
Balance at March 31, 2025		3,928,871		2,356		49,784			(13,718	)		(6,053	)		32,369
Common stock issued under restricted stock units		2,156		1		(1	)		—			—			—
Common stock issued-stock options		14,465		10		218			—			—			228
Common stock issued - exercised warrants		89,764		54		(54	)		—			—			—
Share-based compensation expense-stock options		—		—		126			—			—			126
Share-based compensation expense-restricted stock units		—		—		299			—			—			299
Net income		—		—		—			3,741			—			3,741
Balance at June 30, 2025		4,035,256		2,421		50,372			(9,977	)		(6,053	)		36,763
Common stock issued under restricted stock units		41,540		25		(25	)		—			—			—
Common stock issued-stock options		7,171		4		110			—			—			114
Common stock issued - exercised warrants		419		1		(1	)		—			—			—
Share-based compensation expense-stock options		—		—		380			—			—			380
Share-based compensation expense-restricted stock units		—		—		257			—			—			257
Net income		—		—		—			3,436			—			3,436
Balance at September 30, 2025		4,084,386	$	2,451	$	51,093		$	(6,541	)	$	(6,053	)	$	40,950

	*Common*		*Common*		*Additional*
	*Stock*		*Stock*		*Paid-In*			*Accumulated*			*Treasury*
	*Shares*		*Amount*		*Capital*			*Deficit*			*Stock*			*Total*
Balance at December 31, 2023		3,867,082	$	2,320	$	48,602		$	(24,209	)	$	(5,402	)	$	21,311
Common stock issued under restricted stock units		4,710		3		(3	)		—			—			—
Share-based compensation expense-stock options		—		—		55			—			—			55
Share-based compensation expense-restricted stock units		—		—		121			—			—			121
Treasury shares		—		—		—			—			(651	)		(651	)
Net income		—		—		—			681			—			681
Balance at March 31, 2024		3,871,792		2,323		48,775			(23,528	)		(6,053	)		21,517
Common stock issued under restricted stock units		6,006		4		(4	)		—			—			—
Share-based compensation expense-stock options		—		—		77			—			—			77
Share-based compensation expense-restricted stock units		—		—		148			—			—			148
Net income		—		—		—			1,664			—			1,664
Balance at June 30, 2024		3,877,798		2,327		48,996			(21,864	)		(6,053	)		23,406
Common stock issued under restricted stock units		21,327		12		(12	)		—			—			—
Common stock issued - exercised warrants		6,018		4		(4	)		—			—			—
Share-based compensation expense-stock options		—		—		78			—			—			78
Share-based compensation expense-restricted stock units		—		—		146			—			—			146
Net income		—		—		—			2,357			—			2,357
Balance at September 30, 2024		3,905,143	$	2,343	$	49,204		$	(19,507	)	$	(6,053	)	$	25,987

See Accompanying Notes to Condensed Consolidated Financial Statements.

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BK TECHNOLOGIES CORPORATION

Condensed Consolidated Statements of Cash Flows

(In thousands) (Unaudited)

	*Nine Months Ended*
	*September 30,*		September 30,
	*2025*		2024
Operating activities
Net income	$	9,309	$	4,702
Adjustments to reconcile net income to net cash provided by operating activities:
Inventories allowances		871		27

SEC Form 10-Q filed by BK Technologies Corporation