Company: BKTI
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001437749-25-016253
Chunk: 37

Company: BK Technologies Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 costs, and an accrual of Engineering fiscal year 2023 RSU issuance expenses. These factors yielded operating income of approximately $2.9 million for the three-month period ended March 31, 2025, compared with operating income of approximately $1.0 million for the same period of fiscal year 2024.

For the first quarter of 2024, we recognized a net realized loss of approximately $0.1 million on the investment in FG Holdings, LLC, that was exited during the first quarter of 2024. For the first quarter of 2025, we recognized net interest income of $3,000 compared to approximately $0.2 million interest expense for the same period of fiscal year 2024.

Net income for the three months ended March 31, 2025, was approximately $2.1 million ($0.60 per basic and $0.55 per diluted share), compared with net income of approximately $0.7 million ($0.19 per basic and diluted share) for the same quarter last year.  The primary factors for the improvement for the three month period ending on March 31, 2025, compared to the same period of fiscal year 2024, were radio product and accessories sales mix and the full impact of material cost improvements related to the transition of manufacturing production to East West Manufacturing, LLC.

As of March 31, 2025, working capital totaled approximately $24.6 million, of which approximately $19.1 million was comprised of cash, cash equivalents and trade receivables. As of December 31, 2024, working capital totaled approximately $23.0 million, of which approximately $14.4 million was comprised of cash, cash equivalents and trade receivables.

Results of Operations

As an aid to understanding our operating results for the periods covered by this report, the following table shows selected items from our condensed consolidated statements of operations expressed as a percentage of sales:

      Percentage of Sales 

      Three Months Ended 

      March 31, 

      March 31, 

      2025 

      2024 

      Sales 

     100.0
     %

     100.0
     %

      Cost of products 

     (53.0
     )

     (65.5
     )

      Gross margin 

     47.0

     34.5

      Selling,