Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 781

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 781
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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 $336 and $275, respectively, in accrued other expenses and other current liabilities on the Company’s consolidated balance sheets.  This amount represents the Company’s estimate of incurred but not reported claims as of  December 31, 2024 and 2023.
    
   Liability for Product Warranties
    
   Changes in the Company’s liability for its standard two-year and five-year product warranties during the years ended  December 31, 2024 and 2023 are as follows:

       Balance at            Balance at  
   Beginning of    Warranties    Warranties    End of  
   Year    Issued    Settled    Year  
 2024  $722  $1,149  $(863) $1,008 
 2023  $591  $165  $(34) $722 

   Legal Proceedings
    
   From time to time the Company  may be involved in various claims and legal actions arising in the ordinary course of its