Company: BKTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026668
Chunk: 22

Company: BK Technologies Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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BBBA makes changes to certain U.S. corporate tax provisions, but many are generally not effective until 2026.  The Company is currently evaluating the impact of the new legislation but does not expect it to have a material impact on the results of operations. 

   Note 6. Capitalized Product Development Costs
    
   The Company accounts for the costs of Land Mobile Radio (LMR) multi-band development within its products in accordance with ASC Topic 350-30, “ Intangibles – Goodwill and Other,” under which certain LMR multi-band radio development costs incurred subsequent to the establishment of technological feasibility are capitalized and amortized over the estimated lives of the related products. The Company determined technological feasibility was established for multi-band LMR radio products by the introduction of the BKR 9000 multi-band portable product to the market in  June 2023, as specified by Topic 350-30. Upon the general release of the LMR multi-band mobile radio product currently in development to customers, development costs for that product will be amortized over periods not exceeding ten years, based on future revenue of the product. Capitalized product development costs were $506 and $946 for the three and six months ended  June 30, 2025 and $283 and $430 for the three and six months ended  June 30, 2024, respectively.

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   Note 7. Income Per Share
    
   The following table sets forth the computation of basic and diluted income per share:

       Three Months Ended    Six Months Ended  
   June 30, 2025    June 30, 2024    June 30, 2025    June 30, 2024  
 Numerator:                 
 Net income for basic and diluted earnings per share  $3,741  $1,664  $5,873  $2,345 
 Denominator for basic income per share weighted average shares   3,646,503   3,529,910   3,609,744   3,534,209 
 Effect of dilutive securities:                 
 Options, restricted stock units, and warrants   246,870   34,260   283,718   25,096 
 Denominator for diluted income per share weighted average shares   3,893,373   3,564,170   3,893,462