What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-11-12 compared with 2021-08-12 · 142 added, 93 removed, 282 unchanged (45% of the section changed)

3 unchanged sentences

( In thousands, except share data)

June 30, 2021

December 31, 2020

September 30,

Current assets:

33 unchanged sentences

20,000,000 authorized shares;

18,236,121 and 13,962,366 issued and 16,785,721 and 12,511,966 outstanding shares at June 30, 2021, and December 31, 2020, respectively

18,264,736 and 13,962,366 issued and 16,814,336 and 12,511,966 outstanding shares at September 30, 2021, and December 31, 2020, respectively

Additional paid-in capital

Accumulated deficit

Treasury stock, at cost, 1,450,400 shares at June 30, 2021, and December 31, 2020, respectively

Treasury stock, at cost, 1,450,400 shares at September 30, 2021, and December 31, 2020, respectively

Total stockholders’ equity

1 unchanged sentence

See notes to condensed consolidated financial statements.

* The amounts as of December 31, 2020, have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 4 to the Condensed Consolidated Financial Statements.

BK TECHNOLOGIES CORPORATION

2 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Nine Months Ended

September 30,

Cost of products

1 unchanged sentence

Total expenses

Operating loss

Other income (expense):

Operating (loss) income

Other (expense) income:

Net interest (expense) income

Gain (loss) gain on investment in securities

Loss on disposal of property, plant and equipment

(Loss) gain on investment in securities

Other expense

Total other income (expense)

Income (loss) before income taxes

Total other (expense) income

(Loss) income before income taxes

Income tax expense

Net income (loss)

Net income (loss) per share-basic:

Net income (loss) per share-diluted:

Net (loss) income

Net (loss) income per share-basic:

Net (loss) income per share-diluted:

Weighted average shares outstanding-basic

1 unchanged sentence

See notes to condensed consolidated financial statements.

* The amounts as of September 30, 2020, and the amounts prior to July 1, 2021, have been adjusted to reflect the change in inventory accounting method, as described in Notes 1 and 4 to the Condensed Consolidated Financial Statements.

BK TECHNOLOGIES CORPORATION

1 unchanged sentence

( In thousands ) ( Unaudited )

Six Months Ended

June 30, 2021

June 30, 2020

Nine Months Ended

September 30,

Operating activities

Net income (loss)

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Inventories allowances

32 unchanged sentences

See notes to condensed consolidated financial statements.

BK TECHNOLOGIES CORPORATION

3 unchanged sentences

Basis of Presentation

The condensed consolidated balance sheet as of June 30, 2021, the condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020, and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020, have been prepared by BK Technologies Corporation (the “Company” or “we”), and are unaudited.

The condensed consolidated balance sheet as of September 30, 2021, the condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2021 and 2020, have been prepared by BK Technologies Corporation, and are unaudited.

On March 28, 2019, BK Technologies, Inc., the predecessor of BK Technologies Corporation, implemented a holding company reorganization, which resulted in BK Technologies Corporation becoming the direct parent company of, and the successor issuer to, BK Technologies, Inc.

6 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, 2020, as filed with the Securities and Exchange Commission (“SEC”) on March 3, 2021.

The results of operations for the three and six months ended June 30, 2021, are not necessarily indicative of the operating results for a full year.

The results of operations for the three and nine months ended September 30, 2021, are not necessarily indicative of the operating results for a full year.

Principles of Consolidation

14 unchanged sentences

The Company’s financial instruments consist of cash and cash equivalents, trade accounts receivable, investment in securities, accounts payable, accrued expenses, notes payable, credit facilities, and other liabilities.

As of June 30, 2021, and December 31, 2020, the carrying amount of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, notes payable, and other liabilities approximated their respective fair value due to the short-term nature and maturity of these instruments.

As of September 30, 2021, and December 31, 2020, the carrying amount of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, notes payable, and other liabilities approximated their respective fair value due to the short-term nature and maturity of these instruments.

The Company uses observable market data assumptions (Level 1 inputs, as defined in accounting guidance) that it believes market participants would use in pricing investment in securities.

6 unchanged sentences

The Company does not discuss recent pronouncements that are not anticipated to have a material impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Change in Accounting Principle

As disclosed in Note 4, on July 1, 2021, the Company changed its accounting to burden the material at the time of purchase receipts.

Prior to July 1, 2021, the Company applied the material burden at the time the inventory was issued to work in progress.

This change resulted in a net increase of approximately $ 1,300 in inventory and a net decrease of $ 1,300 in accumulated deficit as of July 1, 2021.

The accounting change did not have a material effect on the loss from operations, net loss, or earnings per share for the three and nine months ended September 30, 2021.

Significant Events and Transactions

Pursuant to the Company’s capital return program, the Company’s Board of Directors declared a quarterly dividend of $ 0.02 per share of the Company’s common stock on July 9, 2021, to stockholders of record as of July 26, 2021.

These dividends were paid on August 9, 2021.

On June 9, 2021, the Company closed a public offering of 4,249,250 shares of its common stock at a price of $ 3.00 per share, for net proceeds of $ 11,559,000 after deducting underwriting discounts and commissions and offering expenses payable by the Company.

The shares sold in the offering included the exercise in-full by the underwriters of their over-allotment option to purchase up to 554,250 shares of common stock in addition to the 3,695,000 shares which the underwriters initially agreed to purchase.

ThinkEquity, a division of Fordham Financial Management, Inc., acted as sole book-running manager for the offering.

The Company intends to use the net proceeds from the offering primarily for general corporate purposes, which may include working capital, capital expenditures, operational purposes, strategic investments and potential acquisitions in complementary businesses.

Pursuant to the Company’s capital return program, the Company’s Board of Directors declared a quarterly dividend of $ 0.02 per share of the Company’s common stock on September 23, 2021, to stockholders of record as of October 7, 2021.

These dividends were paid on October 18, 2021.

Allowance for Doubtful Accounts

The allowance for doubtful accounts on trade receivables was approximately $ 50 on gross trade receivables of $ 7,260 and $ 6,516 at June 30, 2021, and December 31, 2020, respectively.

The allowance for doubtful accounts on trade receivables was approximately $ 50 on gross trade receivables of $ 7,696 and $ 6,516 at September 30, 2021, and December 31, 2020, respectively.

This allowance is used to state trade receivables at a net realizable value or the amount that the Company estimates will be collected of the Company’s gross trade receivables.

Inventories, Net

On July 1, 2021, the Company changed its accounting to burden the material at the time of purchase receipts.

Prior to July 1, 2021, the Company applied the material burden at the time the inventory was issued to work in progress.

The Company believes that this method improves financial reporting by better reflecting the current value of inventory on the consolidated balance sheets, by providing better matching of revenues and expenses.

The fiscal 2020 financial statements have been retrospectively adjusted to apply the new inventory change.

The cumulative effect of this change on periods prior to those presented herein resulted in a net decrease in accumulated deficit of approximately $ 1,158 as of January 1, 2020.

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

June 30, 2021

December 31, 2020

September 30,

(as adjusted)

Finished goods

2 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 allowances were approximately $ 888 at June 30, 2021, compared with approximately $ 520 at December 31, 2020.

The Company has recorded income tax expense of $ 184 for the three and six months ended June 30, 2021, compared with an income tax expense of $ 28 for the same periods last year.

The allowances were approximately $ 1,160 at September 30, 2021, compared with approximately $ 588 (as adjusted) at December 31, 2020.

As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying fiscal 2020 Condensed Consolidated financial statements were adjusted as follows:

in Accounting Principle

Consolidated Balance Sheets

Inventories, net as of December 31, 2020

Liabilities & Shareholders’ Equity

Accumulated deficit as of December 31, 2020

Consolidated Income Statements

Cost of goods sold:

Three months ended September 30, 2020

Nine months ended September 30, 2020

Income (loss) before income taxes:

Three months ended September 30, 2020

Nine months ended September 30, 2020

Net income (loss):

Three months ended September 30, 2020

Nine months ended September 30, 2020

Net (loss) income per share-basic and diluted:

Three months ended September 30, 2020

Nine months ended September 30, 2020

Consolidated Statements of Cash Flows

Net loss as of September 30, 2020

Inventories allowance

The Company has recorded income tax expense of $ 0 and $ 184 for the three and nine months ended September 30, 2021, respectively, compared with an income tax expense of $ 2 and $ 30 for the same periods last year.

The Company’s income tax provision is based on management’s estimate of the effective tax rate for the full year.

The tax provision (benefit) in any period will be affected by, among other things, permanent, as well as temporary, differences in the deductibility of certain items, in addition to changes in tax legislation.

The tax provision (benefit) in any period will be affected by, among other things, permanent, as well as temporary, differences in the deductibility of certain items, changes in the valuation allowance related to net deferred tax assets, in addition to changes in tax legislation.

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

As of June 30, 2021, the Company’s net deferred tax assets totaled approximately $ 4,116 and were primarily derived from research and development tax credits, deferred revenue, and net operating loss carryforwards.

As of September 30, 2021, the Company’s net deferred tax assets totaled approximately $ 4,116 and were primarily derived from research and development tax credits, deferred revenue, and net operating loss carryforwards.

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

4 unchanged sentences

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 related to the deferred tax assets recognized as of June 30, 2021.

If the Company incurs future losses, it may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of September 30, 2021.

Investment in Securities

1 unchanged sentence

FGI 1347 Holdings, LP (“1347 LP”), was established for the purpose of investing in securities.

Affiliates of Fundamental Global Investors, LLC (“FG”), serve as the general partner and the investment manager of 1347 LP, and the Company is the sole limited partner.

Affiliates of Fundamental Global GP, LLC (“FG”), serve as the general partner and the investment manager of 1347 LP, and the Company is the sole limited partner.

As the sole limited partner, the Company is entitled to 100 % of net assets held by 1347 LP.

1 unchanged sentence

FG Financial Group

As of June 30, 2021, the Company indirectly held approximately $ 76 in cash and 477,282 shares of FG Financial Group, Inc.

As of September 30, 2021, the Company indirectly held approximately $ 63 in cash and 477,282 shares of FG Financial Group, Inc.

(formerly 1347 Property Insurance Holdings, Inc.) (Nasdaq:

1 unchanged sentence

These shares were purchased in March and May 2018 for approximately $ 3,741 .

For the three and six months ended June 30, 2021, the Company recognized unrealized gains on the investment of approximately $2,262 and $ 2,467 , respectively, compared with unrealized losses of $ 200 and $ 506 , respectively for the same periods last year.

There have been no costs, fees, and expenses paid to the general partner or its affiliates for any periods, including the three and six months ended June 30, 2021 and 2020.

As of June 30, 2021, the Company and the affiliates of FG, including, without limitation, Ballantyne Strong, Inc., beneficially owned in the aggregate 3,045,593 shares of FGF’s common stock, representing approximately 60.8 % of FGF’s outstanding shares.

For the three and nine months ended September 30, 2021, the Company recognized unrealized loss of $ 2,157 and unrealized gains of $ 310 , respectively, on the investment, compared with unrealized losses of $ 291 and $ 797 , respectively for the same periods last year.

There have been no costs, fees, and expenses paid to the general partner or its affiliates for any periods, including the three and nine months ended September 30, 2021 and 2020.

As of September 30, 2021, the Company and the affiliates of FG, including, without limitation, Ballantyne Strong, Inc., beneficially owned in the aggregate 3,032,765 shares of FGF’s common stock, representing approximately 60.0 % of FGF’s outstanding shares.

Additionally, FG and its affiliates constitute the largest stockholder of the Company.

2 unchanged sentences

Stockholders’ Equity

The changes in condensed consolidated stockholders’ equity for the three and six months ended June 30, 2021 and 2020, are as follows:

The changes in condensed consolidated stockholders’ equity for the three and nine months ended September 30, 2021 and 2020 *, are as follows:

Additional Paid-In Capital

Balance at December 31, 2020*

8 unchanged sentences

Balance at June 30, 2021*

Common stock issued under restricted stock units

Share-based compensation expense-stock options

Share-based compensation expense-restricted stock units

Common stock dividends ($0.02 per share)

Balance at September 30, 2021

The balances as of December 31, 2020, March 31, 2021, and June 30, 2021, and the amounts for the three months ended March 31, 2021, and June 30, 2021, have been adjusted to reflect the change in inventory accounting method as described in Notes 1 and 4 of the Condensed Consolidated Financial Statements

Stockholders’ Equity - continued

Additional Paid-In Capital

Balance at December 31, 2019

Change in inventory accounting method

Balance as of January 1, 2020 *

Share-based compensation expense-stock options

9 unchanged sentences

Balance at June 30, 2020 *

Common stock issued under restricted stock units

Share-based compensation expense-stock options

Share-based compensation expense-restricted stock units

Common stock dividends ($0.02 per share)

Balance at September 30, 2020 *

The balances as of January 1, 2020, March 31, 2020, June 30, 2020, and September 30, 2020, and the amounts for the three months ended March 31, 2020, June 30, 2020, and September 30, 2020, have been adjusted to reflect the change in inventory accounting method as described in Notes 1 and 4 of the Condensed Consolidated Financial Statements.

Income (Loss) Per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Net income (loss) for basic and diluted earnings per share

Denominator for basic income (loss) per share weighted average shares

Nine Months Ended

September 30,

Net (loss) income for basic and diluted earnings per share

Denominator for basic loss per share weighted average shares

Effect of dilutive securities:

3 unchanged sentences

Diluted income (loss) per share

Approximately 444,000 stock options and 0 restricted stock units for the three and six months ended June 30, 2021, respectively, and 510,900 stock options and 86,636 restricted stock units for the three and six months ended June 30, 2020, respectively, were excluded from the calculation because they were anti-dilutive.

Approximately 681,500 stock options and 171,316 restricted stock units for the three and nine months ended September 30, 2021, respectively, and 480,900 and 505,900 stock options and 0 and 147,038 restricted stock units for the three and nine months ended September 30, 2020, respectively, were excluded from the calculation because they were anti-dilutive.

The amounts for 2020 and the amounts prior to July 1, 2021, have been adjusted to reflect the change in inventory accounting method, as described in Notes 1and 4 to Condensed Consolidated Financial Statements.

Non-Cash Share-Based Employee Compensation

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

Related to these programs, the Company recorded non-cash share-based employee compensation expense of $ 33 and $ 65 for the three and six months ended June 30, 2021, respectively, compared with $ 30 and $ 60 , respectively, for the same period last year.

Related to these programs, the Company recorded non-cash share-based employee compensation expense of $ 150 and $ 215 for the three and nine months ended September 30, 2021, respectively, compared with $ 34 and $ 94 , respectively, for the same period last year.

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

1 unchanged sentence

The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of stock option grants under this plan.

The non-cash share-based employee compensation expense recorded in the three and six months ended June 30, 2021, was calculated using certain assumptions.

The non-cash share-based employee compensation expense recorded in the three and nine months ended September 30, 2021, was calculated using certain assumptions.

Such assumptions are described more comprehensively in Note 10 (Share-Based Employee Compensation) of the Notes to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

A summary of activity under the Company’s stock option plans during the six months ended June 30, 2021, is presented below:

Stock Options

Exercise Price ($) Per Share

Remaining Contractual Life (Years)

Grant Date Fair Value ($) Per Share

Aggregate Intrinsic Value ($)

A summary of activity under the Company’s stock option plans during the nine months ended September 30, 2021, is presented below:

As of January 1, 2021

Remaining Contractual Life (Years)

($) Per Share

Period activity

As of June 30, 2021

As of September 30, 2021

Restricted Stock Units

On July 30, 2021, the Company granted to each non-employee director restricted stock units with a grant-date fair value of $50 per award (resulting in total aggregate grant-date fair value of $250), which will vest in five equal, annual installments beginning with the first anniversary of the grant date, subject to the director’s continued service through such date, provided that, if the director makes himself available and consents to be nominated by the Company for continued service as a director, but is not nominated for the Board for election by stockholders, other than for good reason, as determined by the Board in its discretion, then the restricted stock units shall vest in full as of the director’s last date of service as a director of the Company.

On March 4, 2021, upon the resignation of former director Lewis Johnson, the Company, at the direction of the Board of Directors, accelerated the vesting of Mr.

5 unchanged sentences

On September 6, 2018, the Company granted to each non-employee director restricted stock units with a grant-date fair value of $ 20 per award (resulting in total aggregate grant-date fair value of $ 140 ), which vest in five equal, annual installments beginning with the first anniversary of the grant date, subject to the director’s continued service through such date, provided that, if the director makes himself available and consents to be nominated by the Company for continued service as a director, but is not nominated for the Board for election by stockholders, other than for good reason, as determined by the Board in its discretion, then the restricted stock units vest in full as of the director’s last date of service as a director of the Company.

On September 6, 2019, which was the first anniversary of the grant date, the first tranche of the September 2018 restricted stock units vested.

On June 4, 2018, the Company granted to each non-employee director restricted stock units with a grant fair value of $ 20 per award (resulting in total aggregate grant-date fair value of $ 140 ), which vested on June 4, 2019.

There were 122,533 and 147,038 restricted stock units outstanding as of June 30, 2021, and December 31, 2020, respectively.

The Company recorded non-cash restricted stock unit compensation expense of $ 25 and $ 128 for the three and six months ended June 30, 2021, respectively, compared with $ 68 and $ 89 , respectively for the same period last year.

There were 171,316 and 147,038 restricted stock units outstanding as of September 30, 2021, and December 31, 2020, respectively.

The Company recorded non-cash restricted stock unit compensation expense of $ 34 and $ 162 for the three and nine months ended September 30, 2021, respectively, compared with $ 23 and $ 112 , respectively for the same period last year.

Commitments and Contingencies

4 unchanged sentences

Where a loss is not probable or the amount of the loss is not estimable, the Company does not accrue legal reserves, consistent with applicable accounting guidance.

There were no pending material claims or legal matters as of June 30, 2021.

There were no pending material claims or legal matters as of September 30, 2021.

In December 2019, a novel strain of the coronavirus (COVID-19) surfaced in Wuhan, China, which spread globally and was declared a pandemic by the World Health Organization in March 2020.

4 unchanged sentences

Purchase Commitments

As of June 30, 2021, the Company had purchase commitments for inventory totaling approximately $ 8,591 .

As of September 30, 2021, the Company had purchase commitments for inventory totaling approximately $ 13,142 .

Significant Customers

Sales to United States government agencies represented approximately $ 4,749 ( 41.9 %) and $ 6,865 ( 34.5 %) of the Company’s net total sales for the three and six months ended June 30, 2021, respectively, compared with approximately $ 4,268 ( 43.0 %) and $ 10,845 ( 52.1 %), respectively, for the same period last year.

Accounts receivable from agencies of the United States government were $ 3,279 as of June 30, 2021, compared with approximately $ 589 at the same date last year.

BK Technologies, Inc., a wholly owned subsidiary of the Company, entered into a $ 5,000 Credit Agreement and a related Line of Credit Note (the “Note” and collectively with the Credit Agreement, the “Credit Agreement”) with JPMorgan Chase Bank, N.A.

Sales to United States government agencies represented approximately $ 6,371 ( 50.5 %) and $ 13,237 ( 39.4 %) of the Company’s net total sales for the three and nine months ended September 30, 2021, respectively, compared with approximately $ 8,476 ( 66.4 %) and $ 19,321 ( 57.5 %), respectively, for the same period last year.

Accounts receivable from agencies of the United States government were $ 5,197 as of September 30, 2021, compared with approximately $ 3,261 at the same date last year.

BK Technologies, Inc.

(“BK Inc.”), a wholly owned subsidiary of the Company, entered into a $5,000 Credit Agreement and a related Line of Credit Note (the “Note” and collectively with the Credit Agreement, the “Credit Agreement”) with JPMorgan Chase Bank, N.A.

(“JPMC”) on January 30, 2020.

2 unchanged sentences

The line of credit is collateralized by a blanket lien on all personal property of BK Technologies, Inc., pursuant to the terms of the Continuing Security Agreement with JPMC.

The Company and each subsidiary of BK Technologies, Inc., are guarantors of BK Technologies, Inc.’s obligations under the Credit Agreement, in accordance with the terms of the Continuing Guaranty.

The Company and each subsidiary of BK Inc.

are guarantors of BK Technologies, Inc.’s obligations under the Credit Agreement, in accordance with the terms of the Continuing Guaranty.

On January 26, 2021, the Company extended this revolving credit facility for one year, through January 31, 2022.

Borrowings under the Credit Agreement will bear interest at a rate per annum equal to one-month LIBOR or zero if the LIBOR is less than zero) plus a margin of 1.90% (1.97263% as of June 30, 2021).

Borrowings under the Credit Agreement will bear interest at a rate per annum equal to one-month LIBOR or zero if the LIBOR is less than zero) plus a margin of 1.90% (1.973% as of September 30, 2021).

The line of credit, as modified, is to be repaid in monthly payments of interest only, payable in arrears, commencing on February 1, 2020 , with all outstanding principal and interest to be payable in full at maturity ( January 31, 2022 ).

11 unchanged sentences

BK Technologies, Inc.

was in compliance with all covenants under the Credit Agreement as of June 30, 2021, and the date of filing this report.

As of June 30, 2021, and the date of filing this report, the Company had an outstanding balance of approximately $ 1,500 , and a net balance availability of $ 3,165 under the Credit Agreement.

was in compliance with all covenants under the Credit Agreement as of September 30, 2021, and the date of filing this report.

As of September 30, 2021, and the date of filing this report, the Company had an outstanding balance of $ 1,470 , and a net balance availability of $ 3,530 under the Credit Agreement.

On April 6, 2021, BK Technologies, Inc., a wholly owned subsidiary of BK Technologies Corporation, and JPMC, as a lender, entered into a Master Loan Agreement in the amount of $ 743 to finance various items of manufacturing equipment.

6 unchanged sentences

The Master Loan Agreement is payable in 60 equal monthly principal and interest payments of approximately $ 8 beginning on October 25, 2019 , matures on September 25, 2024 , and bears a fixed interest rate of 5.11 %.

Current balances of note payable at September 30, 2021, and December 30, 2020, are set forth in the table below:

September 30,

Note payable-US.

Note payable-JP Morgan Chase Bank

Long-term balances of note payable at September 30, 2021, and December 30, 2020, are set forth in the table below:

September 30,

Note payable-US.

Note payable-JP Morgan Chase Bank

The Company accounts for its leasing arrangements in accordance with Topic 842, “Leases”.

14 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Nine Months Ended

September 30,

Operating lease cost

4 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

June 30, 2021

June 30, 2020

Nine months Ended

September 30,

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

3 unchanged sentences

Operating leases

Leases (continued)

Other information related to operating leases was as follows:

June 30, 2021

September 30,

Weighted average remaining lease term (in years)

Weighted average discount rate

Maturity of lease liabilities as of June 30, 2021, were as follows:

June 30, 2021

Remaining six months of 2021

Maturity of lease liabilities as of September 30, 2021, were as follows:

September 30,

Remaining three months of 2021

Total payments

1 unchanged sentence

Total liability

Subsequent Event

Effective July 1, 2021, the Company changed its accounting to burden the material at the time of purchase receipts.

Prior to July 1, 2021, the Company applied the material burden at the time the inventory was issued to work in progress.

This change resulted in a net increase of approximately $ 1.3 million in inventory and retained earnings.

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