What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-13 compared with 2026-05-14 · 242 added, 131 removed, 508 unchanged (42% of the section changed)

32 unchanged sentences

21,730 19,062

Commitments and contingencies

Commitments and contingencies (Note 7)

Stockholders’ equity:

6 unchanged sentences

10,000,000 authorized shares;

4,105,556 and 4,092,056 issued, and 3,744,151 and 3,733,733 outstanding shares as of March 31, 2026 and December 31, 2025, respectively

4,125,236 and 4,092,056 issued, and 3,768,151 and 3,733,733 outstanding shares as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

2 unchanged sentences

3,616 ( 2,314 )

Treasury stock, at cost, 361,405 shares as of March 31, 2026, and 358,323 shares as of December 31, 2025

Treasury stock, at cost, 357,085 shares as of June 30, 2026, and 358,323 shares as of December 31, 2025

( 7,379 ) ( 7,246 )

8 unchanged sentences

Three Months Ended

Six Months Ended

$ 23,414 $ 21,165 $ 44,707 $ 40,219

1 unchanged sentence

11,271 11,130 21,535 21,234

12,143 10,035 23,172 18,985

Selling, general and administrative expenses:

Engineering and product development

3,957 2,306 7,621 5,033

Marketing and selling

1,857 1,941 3,675 3,781

General and administrative

2,500 1,791 4,758 3,258

Total selling, general and administrative expenses

8,314 6,038 16,054 12,072

Operating income

3,829 3,997 7,118 6,913

Other income (expense):

Interest income, net

Interest income

205 39 374 42

Gain on disposal of property, plant and equipment

Other expense

1 unchanged sentence

Total other income (expense), net

174 19 329 ( 95 )

Income before income taxes

4,003 4,016 7,447 6,818

Provision for income tax expense

13 unchanged sentences

(In thousands, except share and per share data) (Unaudited)

Retained Earnings

Common Common Additional Retained Earnings

Balance at December 31, 2025

4,092,056 $ 2,455 $ 51,803 $ ( 2,314 ) $ ( 7,246 ) $ 44,698

Common stock issued under restricted stock units

9,780 6 ( 6 ) — — —

Stock option exercises

3,720 2 55 — — 57

Share-based compensation expense-stock options

— — 362 — — 362

Share-based compensation expense-restricted stock units

— — 57 — — 57

Repurchase of common stock

— — — — ( 223 ) ( 223 )

— — — 2,762 — 2,762

Balance at March 31, 2026

4,105,556 2,463 52,271 448 ( 7,469 ) 47,713

Common stock issued under restricted stock units and warrants

860 1 ( 1 ) — — —

Stock option exercises

18,820 11 456 — — 467

Share-based compensation expense-stock options

— — 405 — — 405

Share-based compensation expense-restricted stock units

— — 107 — — 107

Issuance of common stock under employee purchase plan

— — — — 90 90

— — — 3,168 — 3,168

Balance at June 30, 2026

4,125,236 2,475 53,238 3,616 ( 7,379 ) 51,950

Balance at December 31, 2024

11 unchanged sentences

3,928,871 2,356 49,784 ( 13,718 ) ( 6,053 ) 32,369

Common stock issued under restricted stock units

2,156 1 ( 1 ) — — —

Common stock issued-stock options

14,465 10 218 — — 228

Common stock issued - exercised warrants

89,764 54 ( 54 ) — — —

Share-based compensation expense-stock options

— — 126 — — 126

Share-based compensation expense-restricted stock units

— — 299 — — 299

— — — 3,741 — 3,741

Balance at June 30, 2025

4,035,256 2,421 50,372 ( 9,977 ) ( 6,053 ) 36,763

See Accompanying Notes to Condensed Consolidated Financial Statements.

2 unchanged sentences

( In thousands ) ( Unaudited )

Three Months Ended

Six Months Ended

Operating activities

1 unchanged sentence

Adjustments to reconcile net income to net cash provided by operating activities:

Allowance for credit losses

Inventories allowances

Deferred taxes expense (benefit)

343 ( 1,544 )

Gain on disposal of property, plant and equipment

Depreciation and amortization

3 unchanged sentences

Trade accounts receivable, net

( 5,011 ) ( 4,193 )

Prepaid expenses and other current assets

( 111 ) ( 24 )

Operating lease ROU assets and lease liabilities

( 14 ) ( 38 )

Accounts payable

10 unchanged sentences

( 735 ) ( 519 )

Proceeds from disposal of property, equipment and plant

Capitalized software and systems integration costs

4 unchanged sentences

Repurchase of common stock

Net cash (used in) provided by financing activities

Net cash provided by financing activities

Net change in cash and cash equivalents

4 unchanged sentences

Cash paid for interest

Cash paid for income taxes

$ 1,587 $ 2,451

Non-cash financing activity

4 unchanged sentences

Notes to Condensed Consolidated Financial Statements

Three Months Ended March 31, 2026 and 2025

Three and Six Months Ended June 30, 2026 and 2025

(In thousands, except share and per share data and percentages or as otherwise noted)

1 unchanged sentence

Basis of Presentation

The condensed consolidated balance sheet as of March 31, 2026 , the condensed consolidated statements of operations for the three months ended March 31, 2026 , and 2025 , the condensed consolidated statement of changes in stockholders' equity for the three months ended March 31, 2026 , and 2025 , and the condensed consolidated statements of cash flows for the three months ended March 31, 2026 , and 2025 , have been prepared by BK Technologies Corporation (the “Company,” “we,” “us,” “our”), and are unaudited but include all adjustments, including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the Company’s financial position, results of operations, and cash flows for the interim periods presented.

The condensed consolidated balance sheet as of June 30, 2026 , the condensed consolidated statements of operations for the three and six months ended June 30, 2026 , and 2025 , the condensed consolidated statement of changes in stockholders' equity for the three and six months ended June 30, 2026 , and 2025 , and the condensed consolidated statements of cash flows for the six months ended June 30, 2026 , and 2025 , have been prepared by BK Technologies Corporation (the “Company,” “we,” “us,” “our”), and are unaudited but include all adjustments, including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the Company’s financial position, results of operations, and cash flows for the interim periods presented.

The condensed consolidated balance sheet as of December 31, 2025 , has been derived from the Company’s audited consolidated financial statements at that date.

2 unchanged sentences

These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10 -K for the fiscal year ended December 31, 2025 , as filed with the Securities and Exchange Commission (“SEC”) on March 12, 2026.

The results of operations for the three months ended March 31, 2026 , and 2025 , are not necessarily indicative of the operating results for a full year.

The results of operations for the three and six months ended June 30, 2026 , and 2025 , are not necessarily indicative of the operating results for a full year.

Significant Accounting Policies

There have been no material changes to the Company’s significant accounting policies during the three -months ended March 31, 2026, as compared to those disclosed in the consolidated financial statements included in the Company’s Annual Report on the Form 10 -K for the year ended December 31, 2025.

There have been no material changes to the Company’s significant accounting policies during the six months ended June 30, 2026, as compared to those disclosed in the consolidated financial statements included in the Company’s Annual Report on the Form 10 -K for the year ended December 31, 2025.

Principles of Consolidation

6 unchanged sentences

The Company’s financial instruments consist of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, and other liabilities.

As of March 31, 2026 , and December 31, 2025 , the carrying amount of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, and other liabilities approximated their respective fair value due to the short-term nature and maturity of these instruments.

As of June 30, 2026 , and December 31, 2025 , the carrying amount of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, and other liabilities approximated their respective fair value due to the short-term nature and maturity of these instruments.

Accounting Pronouncements

4 unchanged sentences

This authoritative guidance can be applied prospectively or retrospectively and will be effective for fiscal years beginning after December 15, 2026, with early adoption permitted.

The Company does not expect the adoption of ASU 2024 - 03 to have a material effect on its consolidated financial statements.

The Company does not expect the adoption of ASU 2024 - 03 to have a material effect on its condensed consolidated financial statements.

Segment Reporting Disclosures

1 unchanged sentence

The LMR segment provides radio devices that are hand-held (portable) or installed in vehicles (mobile) and operate on private radio systems that are Project 25 ( "P25" ) compliant.

The Company derives revenue primarily in North America and manages the business activities on a consolidated basis.

The Company derives revenue primarily in North America and manages its business activities on a consolidated basis.

The LMR radio products are used by public safety agencies of the federal government, state and local municipality agencies on their P25 compliant radio systems.

The radio systems operate on frequencies managed by the Federal Communications Commission ("FCC").

The Company’s chief operating decision maker is the senior executive committee that includes the chief executive officer, chief financial officer, and the chief technology officer.

The Company’s chief operating decision maker ("CODM") is the senior executive committee that includes the chief executive officer, chief financial officer, and the chief technology 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 CODM 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.

The CODM 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 CODM 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.

The table below summarizes the significant categories regularly reviewed by the chief operating decision maker for the three months ended March 31, 2026, and 2025, respectively:

The table below summarizes the significant categories regularly reviewed by the CODM for the three and six months ended June 30, 2026, and 2025, respectively:

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

$ 23,414 $ 21,165 $ 44,707 $ 40,219

1 unchanged sentence

11,271 11,130 21,535 21,234

12,143 10,035 23,172 18,985

Engineering and product development

3,957 2,306 7,621 5,033

Marketing and selling

1,857 1,941 3,675 3,781

General and administrative

2,500 1,791 4,758 3,258

Selling, general and administrative expenses

8,314 6,038 16,054 12,072

Operating income

3,829 3,997 7,118 6,913

Other income (expense) (a)

174 19 329 ( 95 )

Income tax (expense)

2 unchanged sentences

$ 3,168 $ 3,741 $ 5,930 $ 5,873

Reconciliation of profit

Adjustments and reconciling items

Consolidated net income

$ 2,762 $ 2,132

(a) Other segment items include interest income (expense) and foreign currency exchange gains/losses.

2 unchanged sentences

On October 30, 2025, the subsidiary entered into an amendment to the credit facility, which provided for a three -year extension of the agreement and revised the availability under the $ 6 million revolving credit facility, if certain conditions are met, to increase the accordion feature for a maximum commitment of $ 14 million, among other things.

Each advance shall accrue interest on the outstanding principal amount thereof at a rate of SOFR plus a range of 1.75 % to 2.25 % per annum, based on certain total debt coverage ratios.

Each advance shall accrue interest on the outstanding principal amount thereof at a rate of Secured Overnight Financing Rate ("SOFR") plus a range of 1.75 % to 2.25 % per annum, based on certain total debt coverage ratios.

Each advance may be prepaid at any time without penalty, and the entire line of credit commitment may be permanently terminated by BK Technologies, Inc.

at any time upon 10 days’ prior written notice to the lender without penalty.

The Company has not utilized funding and there were no borrowings under the RLC agreement as of March 31, 2026, and as of the date of filing this report

The Company has not utilized funding and there were no borrowings under the revolving line of credit agreement as of June 30, 2026, and as of the date of filing this report.

Inventories, Net

Inventories, which are presented net of allowance for slow moving, excess, and obsolete inventory, consisted of the following:

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

Allowances for slow-moving, excess, or obsolete inventory are used to state the Company’s inventories at the lower of cost or net realizable value.

The Company's tax provision and the resulting effective tax rate for interim periods is determined based on its estimate annual effective tax rate adjusted for the effect of discrete items arising in that quarter.

The Company's tax provision and the resulting effective tax rate for interim periods is determined based on its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter.

The provision for income taxes consists of federal and state taxes in the US, California, Florida, and various other states.

Income Taxes (continued)

For the three months ended March 31, 2026, the Company recorded an income tax expense of $ 682 , resulting in an effective tax rate of 19.8 %.

For the three and six months ended June 30, 2026, the Company recorded an income tax expense of $ 835 and $ 1,517 , respectively, resulting in an effective tax rate of 20.86 % and 20.37 %.

The Company's taxable income is generated in the United States and taxed at a federal and state statutory rate of 27.52 %.

Relative to federal and state statutory rate, the effective tax rate for the three months ended March 31, 2026, was reduced by the tax impact of research and development tax credits and stock compensation exercises and vestings.

For the three months ended March 31, 2025, the Company recorded an income tax expense of $ 670 .

The effective tax rate for the three months ended March 31, 2025, was 24.8 %.

Relative to the federal and state statutory rate, the effective tax rate for the three months ended March 31, 2025, was primarily impacted by the tax benefit for research and development tax credits for 2025 as compared to projected income before tax.

Based on the analysis of all available evidence, both positive and negative, the Company has concluded that, except for the capital loss carryforward of approximately $ 851 , it currently does have the ability to generate sufficient taxable income in the necessary period for the deferred tax assets.

Accordingly, the Company recorded an increase in the valuation allowance of $ 24 as of December 31, 2025.

Relative to federal and state statutory rate, the effective tax rate for the six months ended June 30, 2026, was reduced by the tax impact of research and development tax credits and stock compensation exercises and vestings.

For the three and six months ended June 30, 2025, the Company recorded an income tax expense of $ 275 and $ 945 , respectively.

The effective tax rate for the three and six months ended June 30, 2025, was 6.85 % and 13.86 %.

Relative to the federal and states statutory rate, the effective tax rate for the six months ended June 30, 2025, was primarily impacted by the tax benefit for research and development tax credits for 2025 as compared to projected income before tax.

Accordingly, for the three - and six -month periods ending on June 30, 2026, the Company recorded no change in the valuation allowance.

The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax assets may be deemed appropriate in the future.

If the Company incurs future losses, it may be necessary to record additional valuation allowance amounts related to the deferred tax assets recognized as of March 31, 2026.

If the Company incurs future losses, it may be necessary to record additional valuation allowance amounts related to the deferred tax assets recognized as of June 30, 2026.

The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax asset may be deemed appropriate in the future.

1 unchanged sentence

To date, the Company has not recognized any interest and penalties in its Condensed Consolidated Statement of Operations, nor has it accrued for or made payments for interest and penalties.

The Company recorded $ 0 and $ 1,419 unrecognized tax benefits as of March 31, 2026 and 2025, respectively.

The Company recorded $ 0 and $ 1,419 unrecognized tax benefits as of June 30, 2026 and June 30, 2025, respectively.

Following the completion of an updated analysis during 2025, management concluded that the Company's R&D tax credit position is adequately supported and meets the recognition criteria under ASC 740.

Accordingly, the entire uncertain tax position reserve was released during 2025.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework, and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

Under OBBBA, the Company is permitted to claim 100% bonus depreciation and fully deduct domestic research expenditures under Section 174A.

These provisions accelerate tax deductions but do not create permanent tax differences;

therefore, the impact is timing related only and does not materially affect the Company's financial statements.

The Company imports certain materials and products that are subject to U.S.

8 unchanged sentences

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Net income for basic and diluted earnings per share

11 unchanged sentences

$ 0.79 $ 0.96 $ 1.47 $ 1.51

Approximately 1,016 stock options and 1,081 restricted stock units for the three months ended March 31, 2026, and approximately 0 stock options and 0 restricted stock units for the three months ended March 31, 2025, were excluded from the calculation because they were anti-dilutive.

Approximately 3,213 stock options and 1,298 restricted stock units for the three and six months ended June 30, 2026, and approximately 168,579 stock options and 5,739 restricted stock units for the three and six months ended June 30, 2025, were excluded from the calculation because they were anti-dilutive.

Non-Cash Share-Based Employee Compensation

1 unchanged sentence

The Company has employee and non-employee director share-based incentive compensation plans.

Related to these programs, the Company recorded non-cash share-based employee compensation expense of $ 362 for the three months ended March 31, 2026 , compared with $ 118 for the same period last year.

Related to these programs, the Company recorded non-cash share-based employee compensation expense of $ 405 and $ 767 for the three and six months ended June 30, 2026 , compared with $ 126 and $ 244 for the same periods last year.

As of June 30, 2026, total unrecognized non-cash share-based employee compensation remaining to be recognized in future periods totaled $ 4,953 .

The Company considers its non-cash share-based employee compensation expenses as a component of cost of products and selling, general and administrative expenses.

There was no non-cash share-based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented.

A summary of activity under the Company’s stock option plans during the three months ended March 31, 2026 , is presented below:

A summary of activity under the Company’s stock option plans during the six months ended June 30, 2026 , is presented below:

Shares/Options

7 unchanged sentences

460,643 27.08 24.28 15.41 7.80 2.0856 21,885

Performance Addition

8,983 79.77 79.77 54.36 9.80 2.9492 -

1 unchanged sentence

( 1,000 ) 25.50 - 6.87 - - (71 )

0.00 - - - - - -

Exercised / Released

10 unchanged sentences

Restricted Stock Units

The Company recorded non-cash restricted stock unit compensation expense of $ 57 and $ 275 for the three months ended March 31, 2026 , and 2025, respectively.

The Company recorded non-cash restricted stock unit compensation expense of $ 107 and $ 164 for the three and six months ended June 30, 2026 , compared with $ 299 and $ 574 for the same periods last year.

As of June 30, 2026, total unrecognized non-cash restricted stock unit compensation remaining to be recognized in future periods totaled $ 962 .

A summary of non-vested restricted stock under the Company’s non-employee director share-based incentive compensation plan is as follows:

7 unchanged sentences

( 5,000 ) 51.65

Unvested as of March 31, 2026

Unvested as of June 30, 2026

37,805 $ 33.53

13 unchanged sentences

Purchase Commitments

As of March 31, 2026 , the Company had purchase commitments for inventory totaling approximately $ 17,636 , which are expected to be satisfied in the second quarter 2026.

As of June 30, 2026 , the Company had purchase commitments for inventory totaling approximately $ 14,600 , which are expected to be satisfied in the third quarter 2026.

Significant Customers

1 unchanged sentence

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Revenue as a percent of total revenue

2 unchanged sentences

14.3 % 15.8 % — 15.8 %

— 10.3 % — 10.8 %

The following table summarizes customer concentration of receivables:

March 31, 2026

March 31, 2025

June 30, 2026

June 30, 2025

Receivables as a percent of total receivables

1 unchanged sentence

17.8 % 18.9 %

10.8 % 14.2 %

Geopolitical Tensions

19 unchanged sentences

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Operating lease cost

$ 158 $ 136 $ 317 $ 272

Variable lease cost

Total lease cost

Leases (continued)

$ 192 $ 169 $ 384 $ 339

Supplemental cash flow information related to leases was as follows:

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows (fixed payments)

$ 166 $ 155 $ 332 $ 310

Operating cash flows (liability reduction)

$ 147 $ 139 $ 294 $ 280

ROU assets obtained in exchange for lease obligations:

Operating leases

$ — $ — $ 875 $ —

Other information related to operating leases was as follows:

March 31, 2026

June 30, 2026

Weighted average remaining lease term (in years)

Weighted average discount rate

Maturity of lease liabilities as of March 31, 2026 , were as follows:

March 31, 2026

Remaining nine months of 2026

Maturity of lease liabilities as of June 30, 2026 , were as follows:

June 30, 2026

Remaining six months of 2026

Total payments

2 unchanged sentences

Subsequent Events

The Company has evaluated subsequent events through May 14, 2026, the date the condensed consolidated financial statements were available to be issued.

The Company has evaluated subsequent events through August 13, 2026, the date the condensed consolidated financial statements were available to be issued.

Based on this evaluation, the Company determined that no material subsequent events occurred that require recognition or disclosure in these condensed consolidated financial statements.

50 unchanged sentences

You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K.

Important factors that might cause our actual results to differ materially from the results contemplated by the forward-looking statements are contained in "Part I-Item lA.

Important factors that might cause our actual results to differ materially from the results contemplated by the forward-looking statements are contained in "Part I-Item 1A.

Risk Factors" and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in our subsequent filings with the SEC.

24 unchanged sentences

The rapid development and fluidity of these situations precludes any prediction as to the ultimate impact they will have on the Company's business, financial condition, results of operation and cash flows, which will depend largely on future development.

Customer demand and orders for our products were strong during fiscal year

2025 and continued during the first

three months of

Our backlog of unshipped customer orders was approximately $8.7 million and $14.2 million as of

March 31, 2026, and

December 31, 2025, respectively.

In February 2026, the U.S.

Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”).

On March 4, 2026, the U.S.

Court of International Trade (“CIT”) ordered U.S.

Customs and Border Protection to refund certain tariffs collected under IEEPA.

The Company identified certain potential refunds of previously paid tariffs in accordance with the ruling by the CIT and has estimated the total potential recovery to be approximately $0.6 million, which recovery remained subject to administrative review and final liquidation of the underlying customs entries by U.S.

Customs and Border Protection.

These potential refunds represent gain contingencies under ASC 450-30 and have not been recognized in the financial statements for the three months ended June 30, 2026, as uncertainties remain regarding government approval and appeals and final liquidation amounts.

The Company will continue to monitor developments and recognize refunds when realized or realizable, however, no assurance can be given that the Company will recoup any IEEPA tariff refunds

Customer demand and orders for our products were strong during fiscal year 2025 and continued during the first six months of 2026.

Customer demand and new orders for our products was $18.4 million during the three months ended June 30, 2026, compared to $18.3 million for the same period of fiscal year 2025.

Our backlog of unshipped customer orders was approximately $3.2 million and $14.2 million as of June 30, 2026, and December 31, 2025, respectively.

Changes in the backlog were attributed primarily to the timing of orders and their fulfillment.

For the three months ended March 31, 2026, sales increased approximately 11.8% to approximately $21.3 million, compared with $19.1 million for the same period of fiscal year 2025.

The timing of orders from certain federal and state agency customers, can have a significant impact on the backlog reported during any specific quarterly period.

For the three months ended June 30, 2026, sales increased approximately 10.6% to approximately $23.4 million, compared with $21.2 million for the same period of fiscal year 2025.

The increase was attributed primarily to the shipments of BKR series radio product and accessories sales.

Gross profit margins as a percentage of sales for the three months ended March 31, 2026, were 51.8%, compared with 47.0% for the comparative fiscal year 2025 quarter, generally reflecting radio product and accessories sales mix.

Selling, general, and administrative (“SG&A”) expenses for the three months ended March 31, 2026, totaled approximately $7.7 million (36.4% of sales), compared with $6.0 million (31.7% of sales) in the same period of fiscal year 2025.

We recognized operating income for the three months ended March 31, 2026, of approximately $3.3 million, compared with operating income of approximately $2.9 million for the same period of fiscal year 2025.

For the three months ended March 31, 2026, we recognized other income, net totaling approximately $155,000.

This compares with other expenses, net totaling $114,000 for the same period of fiscal year 2025.

For the three months ended March 31, 2026, the pretax income totaled approximately $3.4 million, compared with pretax income of approximately $2.8 million for same period of fiscal year 2025.

We recognized tax expense of $0.7 million for the three-month period ended March 31, 2026, and approximately $0.7 million for the same period of fiscal year 2025.

Net income for the three months ended March 31, 2026, totaled approximately $2.8 million ($0.74 per basic and $0.69 per diluted share), compared with a net income of approximately $2.1 million ($0.60 per basic and $0.55 per diluted share) for the same period last year.

The primary factors for the improvement for the three months ended March 31, 2026, compared to the same period of fiscal year 2025, were radio product unit sales growth and increases in BKR9000 multi-band product sales mix.

As of March 31, 2026, working capital totaled approximately $41.4 million, of which $36.1 million was comprised of cash, cash equivalents, and trade receivables.

Gross profit margins as a percentage of sales for the three months ended June 30, 2026, were 51.9%, compared with 47.4% for the comparative fiscal year 2025 quarter, generally reflecting radio product and accessories sales mix.

Selling, general, and administrative (“SG&A”) expenses for the three months ended June 30, 2026, totaled approximately $8.3 million (35.5% of sales), compared with $6.0 million (28.5% of sales) in the same period of fiscal year 2025.

We recognized operating income for the three months ended June 30, 2026, of approximately $3.8 million, compared with operating income of approximately $4.0 million for the same period of fiscal year 2025.

For the three months ended June 30, 2026, and 2025, we recognized other income, net totaling approximately $174,000 and $19,000, respectively.

For the three months ended June 30, 2026, the pretax income totaled approximately $4.0 million, compared with pretax income of approximately $4.0 million for same period of fiscal year 2025.

We recognized tax expense of $0.8 million for the three-month period ended June 30, 2026, and approximately $0.3 million for the same period of fiscal year 2025.

Net income for the three months ended June 30, 2026, totaled approximately $3.2 million ($0.84 per basic and $0.79 per diluted share), compared with a net income of approximately $3.7 million ($1.03 per basic and $0.96 per diluted share) for the same period last year.

The primary factor for the decrease for the three months ended June 30, 2026, compared to the same period of fiscal year 2025, is primarily related to federal and state estimated tax expense.

As of June 30, 2026, working capital totaled approximately $46.1 million, of which $42.1 million was comprised of cash, cash equivalents, and trade receivables.

This compares with working capital totaling approximately $37.3 million at 2025 year-end, which included $30.0 million of cash, cash equivalents, and trade receivables.

11 unchanged sentences

All reports that the Company files with or furnishes to the SEC also are available free of charge via the SEC’s website.

First Quarter and Three Months Summary

Customer demand and new orders for our products was $17.3 million during the three months ended March 31, 2026, compared to $16.8 million for the same period of fiscal year 2025.

The increase in new orders for the three months ended March 31, 2026, compared to the same period last year was primarily due to higher state agency orders in the first three months of 2026.

For the first quarter of 2026, sales increased 11.8% to approximately $21.3 million, compared with approximately $19.1 million of sales for the first quarter of fiscal year 2025.

Gross profit margin as a percentage of sales for the first quarter of 2026 was approximately 51.8%, compared with 47.0% for the same period of fiscal year 2025, generally reflecting BKR radio product and accessories sales mix compared to the first quarter of fiscal year 2025.

Selling, general, and administrative (“SG&A”) expenses for the first quarter of 2026 totaled approximately $7.7 million, which was 28.3% higher than the SG&A expenses of approximately $6.0 million for the first quarter of fiscal year 2025.

The increase in SG&A expenses was attributed primarily due to software and new product development costs.

These factors yielded operating income of approximately $3.3 million for the three-month period ended March 31, 2026, compared with operating income of approximately $2.9 million for the same period of fiscal year 2025.

For the first quarter of 2026, we recognized other net income of approximately $155,000 on interest income on our cash investments and other expenses, compared to approximately $114,000 other expense, primarily related to other expenses for the same period of fiscal year 2025.

Net income for the three months ended March 31, 2026, was approximately $2.8 million ($0.74 per basic and $0.69 per diluted share), compared with net income of approximately $2.1 million ($0.60 per basic and $0.55 per diluted share) for the same quarter last year.

The primary factors for the improvement for the three-month period ended March 31, 2026, compared to the same period of fiscal year 2025, were radio product unit sales growth and increases in BKR9000 multi-band product sales mix.

As of March 31, 2026, working capital totaled approximately $41.4 million, of which approximately $36.1 million was comprised of cash, cash equivalents and trade receivables.

Second Quarter and Six Months Summary

Customer demand and new orders for our products was $18.4 million during the three months ended June 30, 2026, compared to $18.3 million for the same period of fiscal year 2025.

For the second quarter of 2026, sales increased 10.6% to approximately $23.4 million, compared with approximately $21.2 million of sales for the second quarter of fiscal year 2025.

Sales for the six months ended June 30, 2026, totaled approximately $44.7 million, an increase of 11.2% compared with approximately $40.2 million for the same period last year.

Gross profit margin as a percentage of sales for the second quarter of 2026 was approximately 51.9%, compared with 47.4% for the same period of fiscal year 2025, generally reflecting BKR radio product and accessories sales mix compared to the second quarter of fiscal year 2025.

Gross profit margin as a percentage of sales for the six months ended June 30, 2026 was approximately 51.8%, compared with approximately 47.2% for the same period last year.

Selling, general, and administrative (“SG&A”) expenses for the second quarter of 2026 totaled approximately $8.3 million, which was 37.7% higher than the SG&A expenses of approximately $6.0 million for the second quarter of fiscal year 2025.

The increase in SG&A expenses was attributed primarily due to software, new product development costs and legal expenses.

Selling, general, and administrative expenses for the first six months of 2026 totaled approximately $16.1 million, which was 33.0% higher than the SG&A expenses of approximately $12.1 million for the same period of fiscal year 2025.

These factors yielded operating income of approximately $3.8 million for the three-month period ended June 30, 2026, compared with operating income of approximately $4.0 million for the same period of fiscal year 2025.

Operating income for the first six months of 2026 was approximately $7.1 million, compared with operating income of approximately $6.9 million for the same period of fiscal year 2025.

For the second quarter of 2026, we recognized other net income of approximately $174,000 on interest income on our cash investments and other expenses, compared to approximately $19,000 other income, primarily related to interest income partially offset by other expenses for the same period of fiscal year 2025.

For the first six months of 2026, we recognized other net income of approximately $329,000 on interest income, primarily on our cash investments and other expenses, compared to approximately $95,000 other expense, primarily related to other expenses exceeding interest income for the same period of fiscal year 2025.

Provision for income taxes for the three months ended June 30, 2026, was approximately $0.8 million, compared with provision for income taxes of approximately $0.3 million for the same quarter last year.

The primary factor for the increase for the three-month period ended June 30, 2026, compared to the same period of fiscal year 2025, is related to utilization of research and development tax credits for 2025.

Provision for income taxes for the six months ended June 30, 2026, was approximately $1.5 million, compared with provision for income taxes of approximately $0.9 million for the same period last year.

Net income for the three months ended June 30, 2026, was approximately $3.2 million ($0.84 per basic and $0.79 per diluted share), compared with net income of approximately $3.7 million ($1.03 per basic and $0.96 per diluted share) for the same quarter last year.

The primary factor for the decrease for the three-month period ended June 30, 2026, compared to the same period of fiscal year 2025, is related to federal and state estimated income tax expense.

Net income for the six months ended June 30, 2026, was approximately $5.9 million ($1.57 per basic and $1.47 per diluted share), compared with net income of approximately $5.9 million ($1.63 per basic and $1.51 per diluted share) for the same period last year.

As of June 30, 2026, working capital totaled approximately $46.1 million, of which approximately $42.1 million was comprised of cash, cash equivalents and trade receivables.

As of December 31, 2025, working capital totaled approximately $37.3 million, of which approximately $30.0 million was comprised of cash, cash equivalents and trade receivables.

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Percentage of Sales

Three Months Ended

Six Months Ended

Cost of products

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Income tax (expense)

(1) Amounts may not foot due to rounding.

For the first quarter ended March 31, 2026, net sales increased 11.8% to approximately $21.3 million, compared with approximately $19.1 million for the same quarter of fiscal year 2025.

Sales for the first quarter ended March 31, 2026, were attributed primarily to state and local public safety opportunities.

From a product perspective, the primary contributor to orders and shipments during the first quarter ended March 31, 2026, was our BKR series radios and related accessories.

Note - Amounts may not foot due to rounding.

For the second quarter ended June 30, 2026, net sales increased 10.6% to approximately $23.4 million, compared with approximately $21.2 million for the same quarter of fiscal year 2025.

Sales for the six months ended June 30, 2026, totaled approximately $44.7 million, compared with approximately $40.2 million for the six-month period last year.

Sales for the three and six months ended June 30, 2026, were attributed primarily to state and local public safety opportunities.

From a product perspective, the primary contributor to orders and shipments during the second quarter ended June 30, 2026, was our BKR series radios and related accessories.

The BKR Series is envisioned as a comprehensive line of new products, which includes new models such as the BKR 9000, which achieved first sales in the second quarter of 2023.

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Cost of Products and Gross Profit Margin

Gross profit margins as a percentage of sales for the first quarter ended March 31, 2026, were approximately 51.8% compared with 47.0% for the same quarter of fiscal year 2025.

Gross profit margins as a percentage of sales for the second quarter ended June 30, 2026, were approximately 51.9% compared with 47.4% for the same quarter of fiscal year 2025.

Gross profit margins as a percentage of sales for the six months ended June 30, 2026, were approximately 51.8% compared with 47.2% for the same period of fiscal year 2025.

Our cost of products and gross profit margins are primarily derived from material, labor, and overhead costs, product mix, manufacturing volumes and pricing.

The increase in gross profit margins for the three-months ended March 31, 2026, compared to the same period of fiscal year 2025, generally reflect radio product and accessories sales mix.

The increase in gross profit margins for the three and six months ended June 30, 2026, compared to the same period of fiscal year 2025, generally reflect radio product and accessories sales mix.

We utilize a combination of internal manufacturing capabilities and contract manufacturing relationships for production efficiencies and to manage material and labor costs.

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SG&A expenses consist of marketing, sales, commissions, engineering, product development, management information systems, accounting, headquarters, and non-cash share-based employee compensation expenses.

SG&A expenses for the quarter ended March 31, 2026, totaled approximately $7.7 million (36.4% of sales), compared with approximately $6.0 million (31.7% of sales) for the same quarter of fiscal year 2025.

Engineering and product development expenses for the first quarter of 2026 totaled approximately $3.7 million (17.2% of sales), compared with approximately $2.5 million (13.3% of sales) for the same quarter of fiscal year 2025.

The increase in engineering expenses was attributed primarily to development costs for the BKR multi-band mobile radio product and restricted stock unit issuance costs described in Note 6 ( Non-Cash Share-Based Employee Compensation ) to the condensed consolidated financial statements included in this report.

SG&A expenses for the quarter ended June 30, 2026, totaled approximately $8.3 million (35.5% of sales), compared with approximately $6.0 million (28.5% of sales) for the same quarter of fiscal year 2025.

SG&A expenses increased by $4.0 million, or 33.0%, to approximately $16.1 million (35.9% of sales), compared with approximately $12.1 million (30.0% of sales), for the six month period last year.

Engineering and product development expenses for the second quarter of 2026 totaled approximately $4.0 million (16.9% of sales), compared with approximately $2.3 million (10.9% of sales) for the same quarter of fiscal year 2025.

For the six months ended June 30, 2026, engineering and product development expenses totaled approximately $7.6 million (17.0% of sales), compared with approximately $5.0 million (12.5% of sales) for the six month period last year.

The increase in engineering expenses was attributed primarily to development costs for the BKR multi-band mobile radio product and software development costs.

Most of these activities were being performed by our internal engineering team and were their primary focus, combined with sustaining engineering support for our existing products.

The precise date for developing and introducing new products is uncertain and can be impacted by, among other things, supply chain shortages, including the impact of tariffs and certain component lead times in coming months and quarters.

Marketing and selling expenses for the first quarter of 2026 totaled approximately $1.8 million (8.5% of sales), compared with approximately $1.7 million (9.1% of sales) for the first quarter of fiscal year 2025.

The increase in marketing and selling expenses for the three months ended March 31, 2026 was attributed primarily to additional salespeople and increased trade show participation.

Other general and administrative expenses for the first quarter of 2026 totaled approximately $2.3 million (10.6% of sales), compared with approximately $1.8 million (9.3% of sales) for the same period of fiscal year 2025.

The increase in other general and administrative expenses for the three months ended March 31, 2026, was attributed primarily to non-cash stock compensation and the non-recurring nature of certain corporate consulting expenses compared to the three months ended March 31, 2025.

Marketing and selling expenses for the second quarter of 2026 totaled approximately $1.9 million (7.9% of sales), compared with approximately $1.9 million (9.2% of sales) for the second quarter of fiscal year 2025.

For the six months ended June 30, 2026, marketing and selling expenses decreased approximately $0.1 million, or 3.0%, to approximately $3.7 million (8.2% of sales), compared with approximately $3.8 million (9.4% of sales) for the same period last year.

Marketing and selling expenses for the three and six-months ended June 30, 2026 were primarily unchanged compared to the same period of 2025.

Other general and administrative expenses for the second quarter of 2026 totaled approximately $2.5 million (10.7% of sales), compared with approximately $1.8 million (8.5% of sales) for the same period of fiscal year 2025.

For the six months ended June 30, 2026, other general and administrative expenses totaled approximately $4.8 million (10.6% of sales), compared with approximately $3.3 million (8.1% of sales) for the six-month period last year.

The increase in other general and administrative expenses for the three and six months ended June 30, 2026, was attributed primarily to non-cash stock compensation and the non-recurring nature of certain legal and corporate consulting expenses compared to the three and six months ended June 30, 2025.

Operating Income

Operating income for the quarter ended March 31, 2026, totaled approximately $3.3 million (15.4% of sales), compared with operating income of approximately $2.9 million (15.3% of sales) for the same period of fiscal year 2025.

The operating income improvement for the three months ended March 31, 2026, compared to the same period last year, was attributed to sales growth and higher gross profit margins related to improved product sales mix.

Other Income (Expense)

We recorded net interest income of approximately $169,000 for the quarter ended March 31, 2026, compared with approximately $3,000 net interest income for the first quarter of fiscal year 2025.

We recorded approximately $682,000 and $670,000 tax expense for the three months ended March 31, 2026, and 2025, respectively.

Operating income for the quarter ended June 30, 2026, totaled approximately $3.8 million (16.4% of sales), compared with operating income of approximately $4.0 million (18.9% of sales) for the same period of fiscal year 2025.

For the six months ended June 30, 2026, our operating income totaled approximately $7.1 million (15.9% of sales), compared with operating income of approximately $6.9 million (17.2% of sales) for the six-month period last year.

The decrease in operating income for the three months ended June 30, 2026, compared to the same period last year, was attributed to growth in product development costs and partially related to increased non-cash stock compensation and the non-recurring nature of certain legal and corporate consulting expenses.

We recorded net other income of approximately $174,000 for the quarter ended June 30, 2026, compared with approximately $19,000 net other income for the second quarter of fiscal year 2025.

For the six months ended June 30, 2026, net other income totaled approximately $329,000, compared with net other expense of approximately $95,000 for the six month period last year.

The increase in net other income for the three and six months ended June 30, 2026 compared to the same period of 2025, is primarily related to interest income related to the increase of our cash balance compared to 2025.

We recorded approximately $0.8 million and $1.5 million tax expense for the three and six months ended June 30, 2026, respectively, compared to approximately $0.3 million and $0.9 million, respectively, for the same periods last year.

Our income tax provision is based on the effective tax rate for the year.

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As a result, we may experience fluctuations in the effective book tax rate (that is, tax expense divided by pre-tax book income) from period to period.

As of March 31, 2026, our net deferred tax assets totaled approximately $4.9 million and were primarily derived from capitalized software and systems integration costs and deferred revenue.

As of June 30, 2026, our net deferred tax assets totaled approximately $4.5 million and were primarily derived from capitalized software and systems integration costs and deferred revenue.

In order to fully utilize the net deferred tax assets, we will need to generate sufficient taxable income in future years.

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We cannot presently estimate what, if any, changes to the valuation of our deferred tax assets may be deemed appropriate in the future.

If we incur future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of March 31, 2026.

If we incur future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of June 30, 2026.

Liquidity and Capital Resources

For the three months ended March 31, 2026, net cash provided by operating activities totaled approximately $6.8 million, compared with cash provided by operating activities of approximately $2.5 million for the same fiscal year period of 2025.

Cash provided by operating activities for the three months ended March 31, 2026, was primarily related to net income of $2.8 million, an increase of $1.8 million in accounts payable, a decrease of $0.6 million in inventories, an increase of $0.5 million in deferred revenues, partially offset by a decrease of $0.4 million in accrued compensation and related taxes and a decrease of $0.4 million in prepaid expenses and other current assets.

For the first three months of 2026, we had net income of approximately $2.8 million, compared with a net income of approximately $2.1 million for the same period of fiscal year 2025.

Accounts receivable decreased approximately $0.1 million during the three months ended March 31, 2026, compared with an increase of approximately $2.8 million for the same period of fiscal year 2025, primarily due to the timing of customer collections in the first three months of fiscal year 2026 and 2025.

Inventories decreased during the three months ended March 31, 2026, by approximately $0.6 million compared to a decrease of approximately $1.4 million for the same period of fiscal year 2025.

The decrease in inventories during the three months ended March 31, 2026 was primarily attributed to a decrease in finished goods somewhat offset by an increase in work in process materials.

Accounts payable for the three months ended March 31, 2026, increased approximately $1.8 million, compared with an increase of approximately $0.8 million for the same period of fiscal year 2025, primarily due to the increased purchases of finished goods during the quarter ended March 31, 2026.

Accrued other expenses increased during the first three months of 2026 by approximately $0.3 million compared with an increase of $0.8 million for the same period of fiscal year 2025.

Depreciation and amortization totaled approximately $0.7 million for the three months ended March 31, 2026, compared with approximately $0.4 million for the same period of fiscal year 2025.

Depreciation and amortization are primarily related to manufacturing and engineering equipment.

Cash used in investing activities for the three months ended March 31, 2026, totaled approximately $0.5 million, compared with approximately $0.7 million for the same period of fiscal year 2025.

The cash used for the three-month period ended March 31, 2026, was attributed primarily to purchases of engineering equipment and tooling, compared to cash used for the three-month period ended March 31, 2025, which was also primarily attributed to capitalized software and system implementation costs and the purchase of engineering and manufacturing related equipment.

For the three months ended March 31, 2026, approximately $166,000 was used in financing activities, primarily attributable to the repurchase of common stock, compared with cash provided by financing activities of approximately $13,000 for the same period of fiscal year 2025.

Our cash and cash equivalents balance on March 31, 2026, was approximately $29.0 million.

For the six months ended June 30, 2026, net cash provided by operating activities totaled approximately $7.5 million, compared with cash provided by operating activities of approximately $6.0 million for the same fiscal year period of 2025.

Cash provided by operating activities for the six months ended June 30, 2026, was primarily related to net income of $5.9 million, an increase of $3.2 million in accounts payable, a decrease of $0.8 million in inventories, an increase of $0.2 million in deferred revenues, partially offset by an increase of $5.0 million in accounts receivable and a $0.5 million decrease in accrued compensation and related taxes.

For the first six months of 2026, we had net income of approximately $5.9 million, compared with a net income of approximately $5.9 million for the same period of fiscal year 2025.

Accounts receivable increased approximately $5.0 million during the six months ended June 30, 2026, compared with an increase of approximately $4.2 million for the same period of fiscal year 2025, primarily due to the timing of customer collections in the first six months of fiscal year 2026 and 2025.

Accounts payable for the six months ended June 30, 2026, increased approximately $3.2 million, compared with an increase of approximately $3.5 million for the same period of fiscal year 2025, primarily due to the increased purchases of finished goods during the quarter ended June 30, 2026 and 2025.

Accrued other expenses increased during the first six months of 2026 by approximately $0.1 million compared with a decrease of $1.3 million for the same period of fiscal year 2025.

The increase in accrued other expenses in the first six months of 2026, was related to the reversal of the increase that occurred during the first six months of 2025, related to contractual terms with our contract manufacturers.

Inventories decreased during the six months ended June 30, 2026, by approximately $0.8 million compared to a decrease of approximately $0.5 million for the same period of fiscal year 2025.

The decrease in inventories during the six months ended June 30, 2026, was primarily attributed to a decrease in raw materials and an increase in inventory allowance somewhat offset by an increase in finished goods.

The decrease in inventories during the six months ended June 30, 2025, was primarily attributed to a decrease in raw materials and work in process, somewhat offset by an increase in finished goods.

Depreciation and amortization totaled approximately $1.5 million for the six months ended June 30, 2026, compared with approximately $0.9 million for the same period of fiscal year 2025.

The increase in depreciation and amortization for the six months ended June 30, 2026 compared to the same period in 2025, was primarily due to amortization of capitalized software and system integration costs.

Depreciation and amortization costs are primarily related to manufacturing and engineering equipment and somewhat to software and integration cost amortization.

Net cash used in investing activities for the six months ended June 30, 2026, totaled approximately $0.7 million, compared with approximately $1.5 million for the same period of fiscal year 2025.

The net cash used in the six-month period ended June 30, 2026, was attributed primarily to purchases of engineering equipment and tooling, compared to cash used for the six-month period ended June 30, 2025, which was primarily attributed to capitalized software and system implementation costs and the purchase of engineering and manufacturing related equipment.

For the six months ended June 30, 2026, approximately $0.4 million was provided by financing activities, compared with cash provided by financing activities of approximately $0.2 million for the same period of fiscal year 2025.

Net cash provided by financing activities was primarily attributable to proceeds from the exercise of common stock options, somewhat offset by the repurchase of common stock in the first six months of 2026.

Our cash and cash equivalents balance on June 30, 2026, was approximately $29.9 million.

We believe these funds, combined with anticipated cash generated from operations and borrowing availability under our Fifth Third credit agreement, are sufficient to meet our working capital requirements for the foreseeable future.

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at any time upon 10 days’ prior written notice to the lender without penalty.

The Company has not utilized funding and there were no borrowings under the RLC agreement as of March 31, 2026, and as of the date of filing this report.

The Company has not utilized funding and there were no borrowings under the RLC agreement as of June 30, 2026, and as of the date of filing this report.

BK Technologies, Inc.'s repayment obligations under the RLC are guaranteed by the Company and secured by a pledge of essentially all of the assets of the Company and BK Technologies, Inc.

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(ii) a fixed charge coverage ratio of 1.20 to 1.00 as measured on a rolling twelve-month basis, each measured at the end of each fiscal quarter and (iii) a requirement that the outstanding principal balance under the RLC will be $0 for at least 30 consecutive days during each annual period ending on October 30.

The Fifth Third RLC agreement provided for customary events of default, including:

The Fifth Third RLC agreement provides for customary events of default, including:

(1) failure to pay principal, interest or fees under the RLC when due and payable;

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The Company began amortization of the multi-band mobile radio development costs for a period of 32 months, beginning on January 1, 2026.

There were no other changes to our critical accounting policies during the three months ended March 31, 2026.

There were no other changes to our critical accounting policies during the three months ended June 30, 2026.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements