Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 661

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 661
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, due to our sales to federal and state agencies that participate in wildland fire-suppression efforts, which may be greater during the summer season when forest fire activity is heightened.  In some years, these factors may cause an increase in sales for the second and third quarters, compared with the first and fourth quarters of the same fiscal year.  Such increases in sales may cause quarterly variances in our cash flow from operations and overall financial condition.

      17

Results of Operations

As an aid to understanding our operating results, the following table shows items from our consolidated statements of operations expressed as a percentage of sales:

      Percent of Sales 

      for Years Ended December 31, 

      2024 

      2023 

      Sales 

     100.0
     %

     100.0
     %

      Cost of products 

     (62.1
     )

     (70.0
     )

      Gross margin 

     37.9

     30.0

      Selling, general and administrative expenses 

     (27.7
     )

     (31.0
     )

      Other (expense) income, net 

     (0.6
     )

     (1.9
     )

      Income (loss) before income taxes 

     9.6

     (2.9
     )

      Income tax benefit (expense) 

     1.3

     (0.1
     )

      Net income (loss) 

     10.9
     %

     (3.0
     )%

Fiscal Year 2024 Compared with Fiscal Year 2023

Sales, net

For 2024, net sales increased approximately $2.5 million to approximately $76.6 million, compared with approximately $74.1 million for the prior year.

Customer demand and orders for our products were $84.6 million and $65.2 million in 2024 and 2023, respectively. Supply chain constraints limited our ability to manufacture the quantities needed to convert the orders into shipments and sales revenue in 2022 and were carried in backlog of $27.0 million as of December 31, 2022, that were fulfilled during 2023. The increase in sales for the year ended December 31, 2024, was primarily attributed to sales of the BKR9000 portable LMR products to federal, state and municipal public safety agencies, some of which