Company: BKTI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033457
Chunk: 26

Company: BK Technologies Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
  may be granted under the 2025 Plan after  March 11, 2035.
    
   The stockholders of the Company also approved the BK Technologies Corporation Employee Stock Purchase Plan (the “ESPP”) at the Annual Meeting held on  June 18, 2025. The ESPP was previously approved by the Board. The objective of the ESPP is to offer eligible employees of the Company and its designated subsidiaries the ability to purchase shares of the Company’s common stock at a discount, subject to various limitations under the ESPP. There are 150,000 shares of the Company’s common stock authorized for issuance under the ESPP.
    
   Stock Options
    
   The Company has employee and non-employee director share-based incentive compensation plans. Related to these programs, the Company recorded non-cash share-based employee compensation expense of $380 and $624 for the three and nine months ended  September 30, 2025, compared with $78 and $210 for the same periods last year, respectively. The Company considers its non-cash share-based employee compensation expenses as a component of cost of products and selling, general and administrative expenses. There was no non-cash share-based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented.
    
   On  July 10, 2025, the Company approved the grant of performance-based stock options for certain executives. The options provide the executives with the option to purchase up to an aggregate of 162,566 shares of the Company's common stock, with an exercise price of $42.81 per share and will vest based on whether certain common share prices are achieved over a five-year period ending on  July 10, 2030.
    
   The Company uses the Black-Scholes-Merton and Monte Carlo simulation option valuation models to calculate the fair value of stock option grants. The non-cash share-based employee compensation expense recorded in the three and nine months ended  September 30, 2025, was calculated using certain assumptions. Such assumptions are described more comprehensively in Note 11 (Share-Based Compensation) of the Notes to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended  December 31, 2024.
    
   A summary of activity under the Company’s stock option plans during the nine months ended  September 30, 2025, is presented below:

           Wgt