Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 65

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 65
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       1. Summary of Significant Accounting Policies (Continued)

   Reverse Stock Split   On  March 23, 2023, the Board of Directors approved a one (1)-for-five (5) reverse stock split (the “Reverse Stock Split”) of the Company’s issued and outstanding shares of the Company’s Common Stock, and on  April 4, 2023, the Company filed with the Secretary of State of the State of Nevada a Certificate of Change to its Articles of Incorporation to effect the Reverse Stock Split.   The Company executed the Reverse Stock Split, which became effective at 5:00 p.m. Eastern Time on  April 21, 2023. Shares of Common Stock underlying outstanding stock options and restricted stock units were proportionately reduced, and the respective exercise prices were proportionately increased in accordance with the terms of the agreements governing such securities. Accordingly, all shares and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been retroactively adjusted, where applicable, to reflect the Reverse Stock Split.

   Advertising and Promotion Costs   The cost for advertising and promotion is expensed as incurred. Advertising and promotion expenses are classified as part of selling, general and administrative (“SG&A”) expenses in the accompanying consolidated statements of operations. For the years ended  December 31, 2024 and 2023, such expenses totaled $496 and $478, respectively.

   Engineering, Research and Development Costs   Included in SG&A expenses for the years ended  December 31, 2024 and 2023 are engineering, research and development costs of $7,841 and $9,334, respectively.

   Share-Based Compensation   The Company accounts for share-based arrangements in accordance with GAAP, which requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which the employee is required to provide service in exchange for the award requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.   Restricted Stock Units   The Company recorded non-cash restricted stock unit compensation expense of $494 and $1,143 for the years ended  December 31, 2024 and 2023, respectively.

   Earnings (Loss) Per Share   Earnings (loss) per share amounts are computed and presented for all