bkti20260630

bkti20260630_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 June 30, 2026

☐ 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 3,769,389 shares of common stock, $0.60 par value, of the registrant outstanding as of August 6, 2026.

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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	14

Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21

Item 4.	CONTROLS AND PROCEDURES	22

PART II - OTHER INFORMATION		24

Item 1.	LEGAL PROCEEDINGS	24

Item 1A.	RISK FACTORS	24

Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	25

Item 5.	OTHER INFORMATION	25

Item 6.	EXHIBITS	26

SIGNATURES		27

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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)

	*June 30,*			December 31,
	*2026*			2025
		*(Unaudited)*
ASSETS

Current assets:
Cash and cash equivalents	$	29,917		$	22,788
Trade accounts receivable, net		12,194			7,221
Inventories, net		15,087			15,862
Prepaid expenses and other current assets		3,292			3,099
Total current assets		60,490			48,970

Property, plant and equipment, net		4,082			4,170
Operating lease right-of-use (ROU) assets		1,237			1,502
Deferred tax assets, net		4,512			5,230
Capitalized software and systems integration costs, net		2,777			3,417
Other assets		582			471
Total assets	$	73,680		$	63,760

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	7,984		$	4,781
Accrued compensation and related taxes		1,935			2,423
Accrued warranty expense		673			760
Accrued other expenses and other current liabilities		416			335
Short-term operating lease liabilities		626			610
Deferred revenue		2,765			2,728
Total current liabilities		14,399			11,637

Long-term operating lease liabilities		670			965
Deferred revenue, net of current portion		6,661			6,460
Total liabilities		21,730			19,062

Commitments and contingencies (Note 7)
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; 4,125,236 and 4,092,056 issued, and 3,768,151 and 3,733,733 outstanding shares as of June 30, 2026 and December 31, 2025, respectively		2,475			2,455
Additional paid-in capital		53,238			51,803
Retained earnings (accumulated deficit)		3,616			(2,314	)
Treasury stock, at cost, 357,085 shares as of June 30, 2026, and 358,323 shares as of December 31, 2025		(7,379	)		(7,246	)
Total stockholders’ equity		51,950			44,698
Total liabilities and stockholders’ equity	$	73,680		$	63,760

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*						*Six Months Ended*
	*June 30,*			June 30,			*June 30,*			June 30,
	*2026*			2025			*2026*			2025
Sales, net	$	23,414		$	21,165		$	44,707		$	40,219

Cost of products		11,271			11,130			21,535			21,234
Gross margin		12,143			10,035			23,172			18,985

Selling, general and administrative expenses:
Engineering and product development		3,957			2,306			7,621			5,033
Marketing and selling		1,857			1,941			3,675			3,781
General and administrative		2,500			1,791			4,758			3,258
Total selling, general and administrative expenses		8,314			6,038			16,054			12,072

Operating income		3,829			3,997			7,118			6,913

Other income (expense):
Interest income		205			39			374			42
Gain on disposal of property, plant and equipment		12			—			12			—
Other expense		(43	)		(20	)		(57	)		(137	)
Total other income (expense), net		174			19			329			(95	)

Income before income taxes		4,003			4,016			7,447			6,818

Provision for income tax expense		(835	)		(275	)		(1,517	)		(945	)

Net income	$	3,168		$	3,741			5,930			5,873

Earnings per share-basic:	$	0.84		$	1.03		$	1.57		$	1.63
Earnings per share-diluted:	$	0.79		$	0.96		$	1.47		$	1.51
Weighted average shares outstanding-basic		3,751,175			3,646,503			3,766,775			3,609,744
Weighted average shares outstanding-diluted		4,023,206			3,893,373			4,037,051			3,893,462

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*			*Retained Earnings*
	*Stock*		*Stock*		*Paid-In*			*(Accumulated*			*Treasury*
	*Shares*		*Amount*		*Capital*			*Deficit)*			*Stock*			*Total*
Balance at December 31, 2025		4,092,056	$	2,455	$	51,803		$	(2,314	)	$	(7,246	)	$	44,698
Common stock issued under restricted stock units		9,780		6		(6	)		—			—			—
Stock option exercises		3,720		2		55			—			—			57
Share-based compensation expense-stock options		—		—		362			—			—			362
Share-based compensation expense-restricted stock units		—		—		57			—			—			57
Repurchase of common stock		—		—		—			—			(223	)		(223	)
Net income		—		—		—			2,762			—			2,762
Balance at March 31, 2026		4,105,556		2,463		52,271			448			(7,469	)		47,713
Common stock issued under restricted stock units and warrants		860		1		(1	)		—			—			—
Stock option exercises		18,820		11		456			—			—			467
Share-based compensation expense-stock options		—		—		405			—			—			405
Share-based compensation expense-restricted stock units		—		—		107			—			—			107
Issuance of common stock under employee purchase plan		—		—		—			—			90			90
Net income		—		—		—			3,168			—			3,168
Balance at June 30, 2026		4,125,236		2,475		53,238			3,616			(7,379	)		51,950

	*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	)		—			—			—
Stock option exercises		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

See Accompanying Notes to Condensed Consolidated Financial Statements.

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BK TECHNOLOGIES CORPORATION

Condensed Consolidated Statements of Cash Flows

(In thousands) (Unaudited)

	*Six Months Ended*
	*June 30,*			June 30,
	*2026*			2025
Operating activities
Net income	$	5,930		$	5,873
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for credit losses		38			—
Inventories allowances		507			150
Deferred taxes expense (benefit)		718			(655	)
Gain on disposal of property, plant and equipment		(12	)		—
Depreciation and amortization		1,463			867
Share-based compensation expense-stock options		767			244
Share-based compensation expense-restricted stock units		164			574
Changes in operating assets and liabilities:
Trade accounts receivable, net		(5,011	)		(4,193	)
Inventories		268			319
Prepaid expenses and other current assets		(193	)		610
Other assets		(111	)		(24	)
Operating lease ROU assets and lease liabilities		(14	)		(38	)
Accounts payable		3,203			3,508
Long-term uncertain tax position liability		—			1,419
Accrued compensation and related taxes		(488	)		(587	)
Accrued warranty expense		(87	)		(87	)
Deferred revenue		238			(634	)
Accrued other expenses and other current liabilities		81			(1,344	)
Net cash provided by operating activities		7,461			6,002

Investing activities
Purchases of property, plant, and equipment		(735	)		(519	)
Proceeds from disposal of property, equipment and plant		12			—
Capitalized software and systems integration costs		—			(946	)
Net cash used in investing activities		(723	)		(1,465	)

Financing activities
Proceeds from exercise of common stock options		524			241
Repurchase of common stock		(133	)		—
Net cash provided by financing activities		391			241

Net change in cash and cash equivalents		7,129			4,778
Cash and cash equivalents, beginning of period		22,788			7,075
Cash and cash equivalents, end of period	$	29,917		$	11,853

Supplemental disclosure
Cash paid for interest	$	—		$	—
Cash paid for income taxes	$	1,587		$	2,451
Non-cash financing activity
Common stock issued under restricted stock units	$	131		$	148
Cashless exercise of stock options, warrants and related conversion of net shares to stockholders' equity	$	1		$	138

See Accompanying Notes to Condensed Consolidated Financial Statements.

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BK TECHNOLOGIES CORPORATION

Notes to Condensed Consolidated Financial Statements

Three and Six Months Ended June 30, 2026 and 2025

Unaudited

(In thousands, except share and per share data and percentages or as otherwise noted)

Note 1. Condensed Consolidated Financial Statements

Basis of Presentation

The condensed consolidated balance sheet as of June 30, 2026, the condensed consolidated statements of operations for the three and six months ended June 30, 2026, and 2025, the condensed consolidated statement of changes in stockholders' equity for the three and six months ended June 30, 2026, and 2025, and the condensed consolidated statements of cash flows for the six months ended June 30, 2026, and 2025, have been prepared by BK Technologies Corporation (the “Company,” “we,” “us,” “our”), and are unaudited but include all adjustments, including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the Company’s financial position, results of operations, and cash flows for the interim periods presented. The condensed consolidated balance sheet as of December 31, 2025, has been derived from the Company’s audited consolidated financial statements at that date.

These condensed consolidated financial statements have been prepared in accordance with the requirements of Article 8 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the Securities and Exchange Commission (“SEC”) on March 12, 2026. The results of operations for the three and six months ended June 30, 2026, and 2025, are not necessarily indicative of the operating results for a full year.

Significant Accounting Policies

There have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2026, as compared to those disclosed in the consolidated financial statements included in the Company’s Annual Report on the Form 10-K for the year ended December 31, 2025.

Principles of Consolidation

The accounts of the Company have been included in the accompanying condensed consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation.

The Company consolidates entities in which it has a controlling financial interest. When the Company does not have a controlling financial interest in an entity but exerts significant influence over the entity’s operating and financial policies (generally defined as owning a voting or economic interest of between 20% to 50%), the Company’s investment is accounted for under the equity method of accounting. If the Company does not have a controlling financial interest in, or exert significant influence over, an entity, the Company accounts for its investment at fair value, if the fair value option was elected or at cost.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, and other liabilities. As of June 30, 2026, and December 31, 2025, the carrying amount of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, and other liabilities approximated their respective fair value due to the short-term nature and maturity of these instruments.

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Recent Accounting Pronouncements

The Company does not discuss recent pronouncements that are not anticipated to have a material impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

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. The standard requires more detailed information related to the types of expenses, including (among other items) the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each interim and annual income statement’s expense caption, as applicable. 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 does not expect the adoption of ASU 2024-03 to have a material effect on its condensed consolidated financial statements.

Segment Reporting Disclosures

The Company has one reportable segment - Land Mobile Radio (LMR) Products and Solutions.

The LMR segment provides radio devices that are hand-held (portable) or installed in vehicles (mobile) and operate on private radio systems that are Project 25 ("P25") compliant. The Company derives revenue primarily in North America and manages its business activities on a consolidated basis.

The LMR radio products are used by public safety agencies of the federal government, state and local municipality agencies on their P25 compliant radio systems. The radio systems operate on frequencies managed by the Federal Communications Commission ("FCC"). The Company’s chief operating decision maker ("CODM") is the senior executive committee that includes the chief executive officer, chief financial officer, and the chief technology officer.

The accounting policies of the LMR segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the LMR segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.

The CODM uses operating income and net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the LMR segment or into other parts of the entity, the development of public safety applications utilizing cellular technology or for acquisitions. Net income is used to monitor budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

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The table below summarizes the significant categories regularly reviewed by the CODM for the three and six months ended June 30, 2026, and 2025, respectively:

	*Three Months Ended*						*Six Months Ended*
	*June 30, 2026*			June 30, 2025			*June 30, 2026*			June 30, 2025
Sales, net	$	23,414		$	21,165		$	44,707		$	40,219
Cost of products		11,271			11,130			21,535			21,234
Gross margin		12,143			10,035			23,172			18,985

Engineering and product development		3,957			2,306			7,621			5,033
Marketing and selling		1,857			1,941			3,675			3,781
General and administrative		2,500			1,791			4,758			3,258
Selling, general and administrative expenses		8,314			6,038			16,054			12,072
Operating income		3,829			3,997			7,118			6,913

Other income (expense) (a)		174			19			329			(95	)
Income tax (expense)		(835	)		(275	)		(1,517	)		(945	)
Segment net income	$	3,168		$	3,741		$	5,930		$	5,873

(a) Other segment items include interest income (expense) and foreign currency exchange gains/losses.

Note 2. Significant Events and Transactions

On October 30, 2024, a wholly owned subsidiary of the Company entered into a new credit facility with Fifth Third Bank, National Association, which provided for a one-year revolving line of credit with a maximum commitment of $6 million, with an accordion feature, if certain conditions are met, for up to a maximum commitment of $10 million. On October 30, 2025, the subsidiary entered into an amendment to the credit facility, which provided for a three-year extension of the agreement and revised the availability under the $6 million revolving credit facility, if certain conditions are met, to increase the accordion feature for a maximum commitment of $14 million, among other things. Each advance shall accrue interest on the outstanding principal amount thereof at a rate of Secured Overnight Financing Rate ("SOFR") plus a range of 1.75% to 2.25% per annum, based on certain total debt coverage ratios. Each advance may be prepaid at any time without penalty, and the entire line of credit commitment may be permanently terminated by BK Technologies, Inc. at any time upon 10 days’ prior written notice to the lender without penalty. The Company has not utilized funding and there were no borrowings under the revolving line of credit agreement as of June 30, 2026, and as of the date of filing this report.

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Note 3. Inventories, Net

Inventories, which are presented net of allowance for slow moving, excess, and obsolete inventory, consisted of the following:

	*June 30, 2026*			December 31, 2025
Finished goods	$	6,041		$	5,898
Work in process		3,047			3,016
Raw materials		7,575			8,083
		16,663			16,997
Inventory reserve		(1,576	)		(1,135	)
	$	15,087		$	15,862

Allowances for slow-moving, excess, or obsolete inventory are used to state the Company’s inventories at the lower of cost or net realizable value.

Note 4. Income Taxes

The Company's tax provision and the resulting effective tax rate for interim periods is determined based on its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter. The provision for income taxes consists of federal and state taxes in the US, California, Florida, and various other states.

For the three and six months ended June 30, 2026, the Company recorded an income tax expense of $835 and $1,517, respectively, resulting in an effective tax rate of 20.86% and 20.37%. The Company's taxable income is generated in the United States and taxed at a federal and state statutory rate of 27.52%. Relative to federal and state statutory rate, the effective tax rate for the six months ended June 30, 2026, was reduced by the tax impact of research and development tax credits and stock compensation exercises and vestings.

For the three and six months ended June 30, 2025, the Company recorded an income tax expense of $275 and $945, respectively. The effective tax rate for the three and six months ended June 30, 2025, was 6.85% and 13.86%. Relative to the federal and states statutory rate, the effective tax rate for the six months ended June 30, 2025, was primarily impacted by the tax benefit for research and development tax credits for 2025 as compared to projected income before tax.

Based on the analysis of all available evidence, both positive and negative, the Company has concluded that, except for the capital loss carryforward of approximately $851, it currently does have the ability to generate sufficient taxable income in the necessary period to utilize the benefits for the deferred tax assets. Accordingly, for the three- and six-month periods ending on June 30, 2026, the Company recorded no change in the valuation allowance. The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax assets may be deemed appropriate in the future. If the Company incurs future losses, it may be necessary to record additional valuation allowance amounts related to the deferred tax assets recognized as of June 30, 2026. The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax asset may be deemed appropriate in the future.

The Company's policy is to recognize interest and penalties associated with uncertain tax benefits as part of income tax provision and included accrued interest and penalties with the related income tax liability on the Company's Condensed Consolidated Balance Sheets. To date, the Company has not recognized any interest and penalties in its Condensed Consolidated Statement of Operations, nor has it accrued for or made payments for interest and penalties. The Company recorded $0 and $1,419 unrecognized tax benefits as of June 30, 2026 and June 30, 2025, respectively. Following the completion of an updated analysis during 2025, management concluded that the Company's R&D tax credit position is adequately supported and meets the recognition criteria under ASC 740. Accordingly, the entire uncertain tax position reserve was released during 2025.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. Under OBBBA, the Company is permitted to claim 100% bonus depreciation and fully deduct domestic research expenditures under Section 174A. These provisions accelerate tax deductions but do not create permanent tax differences; therefore, the impact is timing related only and does not materially affect the Company's financial statements.

The Company imports certain materials and products that are subject to U.S. government tariffs and import duties. On February 20, 2026, a US federal court ordered the U.S. government to begin refunding certain tariffs. The Company believes that some of the tariffs it has paid may be eligible for refund; however, the amount and timing of any potential refunds are uncertain. Accordingly, the Company has not recorded, nor plans to record, any benefit related to possible tariff refunds at this time.

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Note 5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Numerator:

Net income for basic and diluted earnings per share

3,168

3,741

5,930

5,873

Denominator for basic earnings per share weighted average shares

3,751,175

3,646,503

3,766,775

3,609,744

Effect of dilutive securities:

Options, restricted stock units, and warrants

272,031

246,870

270,276

283,718

Denominator for diluted earnings per share weighted average shares

4,023,206

3,893,373

4,037,051

3,893,462