Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 528

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 528
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 specific inventory items are reviewed individually by management.  Based on the review, considering business levels, future prospects, new products and technology changes, management, using its business judgment,  may adjust the valuation of specific inventory items to reflect an accurate valuation estimate.  Management also performs a determination of the net realizable value for all finished goods with a selling price below cost.  For all such items, the inventory is valued at not more than the selling price less cost, if any, to sell.

   Property, Plant and Equipment   Property, plant and equipment is carried at cost less accumulated depreciation.  Expenditures for maintenance, repairs and minor renewals are expensed as incurred.  When assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is reflected in operations for the period.   Depreciation and amortization are generally computed on the straight-line method using lives of 3 to 10 years for machinery and equipment and 5 to 8 years for leasehold improvements.

   Impairment of Long-Lived Assets   Management regularly reviews long-lived assets and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset  may not be recoverable.  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