Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 367

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 367
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, receivables are due within 30 days.  Credit losses relating to customers have been consistently within management’s expectations.  

         F-
         9

          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)   The Company primarily maintains cash balances at one financial institution.  Accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250.  From time to time, the Company has had cash in financial institutions in excess of federally insured limits.  As of  December 31, 2024, the Company had cash and cash equivalents in excess of FDIC limits of $6,825.

   Manufacturing and Raw Materials   The Company relies upon a limited number of manufacturers to produce its products and on a limited number of component suppliers. Some of these manufacturers and suppliers are in other countries. Approximately 17.0% of the Company’s material, subassembly and product procurements in 2024 were sourced internationally, of which approximately 79.9% were sourced from seven suppliers. For 2023, approximately 16.0% of the Company’s material, subassembly and product procurements were sourced internationally, of which approximately 94.8% were sourced from twelve suppliers. Purchase orders denominated in U.S. dollars are placed with these suppliers from time to time and there are no guaranteed supply arrangements or commitments.

   Use of Estimates   The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of sales and expenses during the reporting period. Significant estimates include accounts receivable allowances, inventory obsolescence allowance, warranty allowance, and income tax accruals. Actual results could differ from those estimates.

   Fair Value of Financial Instruments   The Company’s financial instruments consist of cash and cash equivalents, trade accounts receivable, investments, accounts payable, accrued expenses, notes payable, and other liabilities. As of  December 31, 2024 and 2023, 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.