Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 755

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 755
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able.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset.  If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds their fair value, which considers the discounted future net cash flows.  No long-lived assets were considered impaired at  December 31, 2024 and 2023.

   Cash Equivalents   The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

         F-
        8

         BK TECHNOLOGIES CORPORATION

         YEARS ENDED
         DECEMBER 31, 2024 AND
        2023

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

         (in thousands, except share data and percentages)

       1. Summary of Significant Accounting Policies (Continued)

   Allowance for Credit Losses   The Company records an allowance for credit losses based on specifically identified amounts that the Company believes to be uncollectible.  The Company records an allowance for credit losses for its financial instruments, which are primarily composed of trade accounts receivable.  The measurement and recognition of credit losses involves the use of judgment and represents management’s estimate of expected lifetime credit losses based on historical experience and trends, current conditions, and forecasts. The Company’s assessment of expected credit losses includes consideration of historical credit loss experience, the aging of account balances, customer concentrations, customer credit-worthiness, current and expected economic, market and industry factors affecting the Company’s customers, including their financial condition.  The Company evaluates its experience with historical losses and then applies this historical loss ratio to financial assets with similar characteristics.  The Company  may also establish an allowance for credit losses for specific receivables when it is probable that the receivable will not be collected and the loss can be reasonably estimated. If the Company’s actual collections experience changes, revisions to the allowance  may be required.  Amounts are written off against the allowance when all attempts to collect a receivable have failed, and reversals of previously reserved amounts are recognized if a specifically reserved item is settled for an amount exceeding the previous estimate.  Based on information available, management believes the allowance for credit losses as of  December 31, 2024 and 2023 is adequate. 

   Revenue Recognition   The Company recognizes revenues in