Company: BKTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026668
Chunk: 26

Company: BK Technologies Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
 developments on a quarterly basis. Where a loss is not probable or the amount of the loss is not estimable, we do not record an accrual, consistent with applicable accounting guidance. In the opinion of management, while the outcome of such claims and disputes cannot be predicted with certainty, our ultimate liability in connection with these matters is not expected to have a material adverse effect on our results of operations, financial position or cash flows, and the amounts accrued for any individual matter are not material. However, legal proceedings are inherently uncertain. As a result, the outcome of a particular matter or a combination of matters  may be material to our results of operations for a particular period, depending upon the size of the loss or our income for that particular period.  
    
   Purchase Commitments
    
   As of  June 30, 2025, the Company had purchase commitments for inventory totaling approximately $12,115, which are to be satisfied in the third quarter of 2025.
    
   Significant Customers
    
   Sales to United States government agencies represented approximately 12.0% and 11.5% of the Company’s net total sales for the three and six months ended  June 30, 2025, respectively, compared with approximately 30.4% and 41.5% for the same periods last year, respectively.  Accounts receivable from agencies of the United States government were 2% of accounts receivable at of   June 30, 2025, compared with approximately 17.4% at the same date last year.  In addition, two commercial customers accounted for approximately 24.8% and 26.6% of net sales for the three and six months ended  June 30, 2025, respectively.  There were no commercial customers accounting for more than 10% of net sales for the same periods last year.  Three commercial customers accounted for approximately 45.1% of accounts receivable at  June 30, 2025, compared to approximately 39.1% of accounts receivable at  June 30, 2024. 
    
   Geopolitical Tensions
    
    U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the military conflict between Russia and Ukraine and in the Middle East. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflict in both of these regions could lead to market disruptions