Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 390

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 390
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 a maximum of 6%) or a discretionary amount. For the years ended  December 31, 2024 and 2023, total contributions made by the Company were $199 and $220, respectively.

   15. Commitments and Contingencies
    
   Royalty Commitment
    
   In 2003, the Company entered into a technology license related to its development of digital products. Under this agreement, the Company is obligated to pay a royalty for each product sold that utilizes the technology covered by this agreement. The Company paid $181 and $234 for the years ended  December 31, 2024 and 2023, respectively. The agreement has an indefinite term and can be terminated by either party under certain conditions.
    
   In 2022, the Company entered into a technology license related to its development of multi-band products. Under this agreement, the Company is obligated to pay a royalty for each product sold that utilizes the technology covered by this agreement, which started in  June 2023. The Company paid $4 and $0.03 in 2024 and 2023, respectively.  The agreement is for three years and can be automatically renewed for one year at the end of its initial term unless either party provides at least 120 days’ prior written notice of its election not to extend the initial term. Thereafter, either party can terminate the agreement by providing a written notice of non-renewal of at least 60 days’ prior to the end of the then current term.
    
   Purchase Commitments
    
   The Company has purchase commitments for inventory totaling $9,324 as of  December 31, 2024.

        F-
       21

        BK TECHNOLOGIES CORPORATION

        YEARS ENDED
        DECEMBER 31, 2024 AND
       2023

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

        (in thousands, except share data and percentages)

   Self-Insured Health Benefits
    
   The Company maintains a self-insured health benefit plan for its employees.  This plan is administered by a third party.  As of  December 31, 2024, the plan had a stop-loss provision insuring losses beyond $90 per employee per year and an aggregate stop-loss of $2,185.  As of  December 31, 2024 and 2023, the Company recorded an accrual for estimated claims in the amount of approximately