Company: BKTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026668
Chunk: 20

Company: BK Technologies Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 experience with historical losses and then applies this historical loss ratio to financial assets with similar characteristics. The Company  may also establish an allowance for credit losses for specific receivables when it is probable that the receivable will not be collected and the loss can be reasonably estimated. If the Company’s actual collections experience changes, revisions to the allowance  may be required.  Amounts are written off against the allowance when all attempts to collect a receivable have failed, and reversals of previously reserved amounts are recognized if a specifically reserved item is settled for an amount exceeding the previous estimate.  Based on information available, management believes the allowance for credit losses as of  June 30, 2025 and  December 31, 2024 is adequate.

   Note 4. Inventories, Net
    
   Inventories, which are presented net of allowance for slow moving, excess, and obsolete inventory, consisted of the following:

       June 30, 2025    December 31, 2024  
 Finished goods  $5,635  $3,428 
 Work in process   3,587   4,610 
 Raw materials   9,639   11,292 
   18,861   19,330 
 Inventory reserve   (1,694)  (1,694)
  $17,167  $17,636 

   Allowances for slow-moving, excess, or obsolete inventory are used to state the Company’s inventories at the lower of cost or net realizable value. The allowances were approximately $1,694 as of  June 30, 2025 and   December 31, 2024. 

   Note 5. Income Taxes 
    
   For the three and six months ended  June 30, 2025, the Company recorded an income tax expense of $275 and $945, respectively, resulting in an effective tax rate of 13.86%.  The Company's taxable income is generated in the United Sates and taxed at a federal and state statutory rate of 26.72%. Relative to the federal and state statutory rate, the effective tax rate for the six months ended  June 30, 2025, was reduced by the tax impact of research and development tax credits.
    
   For the three and six months ended  June 30, 2024, the Company recorded an income tax expense of $220