Company: BKTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026668
Chunk: 18

Company: BK Technologies Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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officer, chief financial officer, and the chief executive officer.  
    
   The accounting policies of the LMR segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker assesses performance for the LMR segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.
    
   The chief operating decision maker uses operating income and net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the LMR segment or into other parts of the entity, the development of public safety applications utilizing cellular technology or for acquisitions. Net income is used to monitor budget versus actual results. The chief operating decision maker also uses net income in competitive analysis by benchmarking to the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

       8

   The table below summarizes the significant categories regularly reviewed by the chief operating decision maker for the three and six months ended  June 30, 2025, and 2024, respectively:

       Three Months Ended    Six Months Ended  
   06/30/2025    06/30/2024    06/30/2025    06/30/2024  
 Sales, net  $21,165  $20,254  $40,219  $38,485 
 Cost of products   11,130   12,707   21,234   24,650 
 Gross margin   10,035   7,547   18,985   13,835 
                 
 Engineering and product development   2,306   1,984   5,033   4,061 
 Marketing and selling   1,941   1,706   3,781   3,230 
 General and administrative   1,791   1,832   3,258   3,536 
 Selling, general and administrative expenses   6,038   5,522   12,072   10,827 
 Operating income   3,997   2,025   6,913   3,008