Company: BKTI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033457
Chunk: 20

Company: BK Technologies Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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   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 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 chief operating decision maker 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 chief operating decision maker 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 chief operating decision maker 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.

       8

   The table below summarizes the significant categories regularly reviewed by the chief operating decision maker for the three and nine months ended  September 30, 2025, and 2024, respectively:

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