What changed in this filing

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Item 1. Financial Statements

2022-08-11 compared with 2022-05-12 · 156 added, 88 removed, 264 unchanged (48% of the section changed)

29 unchanged sentences

Total liabilities

Commitments and contingencies

Stockholders’ equity:

Commitments and contingencies Stockholders’ equity:

Preferred stock;

5 unchanged sentences

50,000,000 authorized shares;

18,314,999 and 18,298,999 issued and 16,864,599 and 16,848,599 outstanding shares at March 31, 2022, and December 31, 2021, respectively

18,368,863 and 18,298,999 issued and 16,918,463 and 16,848,599 outstanding shares at June 30, 2022, and December 31, 2021, respectively

Additional paid-in capital

Accumulated deficit

Treasury stock, at cost, 1,450,400 shares at March 31, 2022, and December 31, 2021, respectively

Treasury stock, at cost, 1,450,400 shares at June 30, 2022, and December 31, 2021, respectively

Total stockholders’ equity

5 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2022

June 30, 2021*

June 30, 2022

June 30, 2021*

Cost of products

3 unchanged sentences

Other (expense) income:

Net interest (expense)

Net interest (expense) income

(Loss) gain on investment in securities

Other income (expense)

Other expense

Total other (expense) income

Loss before income taxes

Provision for income taxes

Net loss per share-basic and diluted

Weighted average shares outstanding-basic and diluted

(Loss) income before income taxes

Provision for income tax

Net (loss) income

Net (loss) income per share-basic:

Net (loss) income per share-diluted:

Weighted average shares outstanding-basic

Weighted average shares outstanding-diluted

See notes to condensed consolidated financial statements.

* The amounts for the three months ended March 31, 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.

* The amounts for the three and six months ended June 30, 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 )

Three Months Ended

Six Months Ended

June 30, 2022

June 30, 2021*

Operating activities

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

Net (loss) income

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

Inventories allowances

Deferred tax expense

Depreciation and amortization

5 unchanged sentences

Prepaid expenses and other current assets

ROU asset and lease liabilities

ROU asset and lease liability

Accounts payable

3 unchanged sentences

Accrued other expenses and other current liabilities

Net cash (used in) provided by operating activities

Net cash used in operating activities

Investing activities

2 unchanged sentences

Financing activities

Proceeds from common stock issuance, net of costs

Cash dividends paid

Proceeds from the credit facility

Proceeds from the credit facility and notes payable

Repayment of the credit facility and notes payable

Net cash (used in) provided by financing activities

Net cash provided by (used in) financing activities

Net change in cash and cash equivalents

6 unchanged sentences

See notes to condensed consolidated financial statements.

* The amounts for the six months ended June 30, 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

3 unchanged sentences

Basis of Presentation

The condensed consolidated balance sheet as of March 31, 2022, the condensed consolidated statements of operations and the condensed consolidated statements of cash flows for the three months ended March 31, 2022 and 2021, have been prepared by BK Technologies Corporation (the “Company,” “we,” “us,” “our”), and are unaudited.

The condensed consolidated balance sheet as of June 30, 2022, the condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, have been prepared by BK Technologies Corporation (the “Company,” “we,” “us,” “our”), and are unaudited.

The condensed consolidated balance sheet at December 31, 2021, 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, 2021, as filed with the Securities and Exchange Commission (“SEC”) on March 17, 2022, as amended by filing Form 10-K/A with the SEC on April 29, 2022.

The results of operations for the three months ended March 31, 2022, 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, 2022, are not necessarily indicative of the operating results for a full year.

Principles of Consolidation

The accounts of the Company and its subsidiaries have been included in the accompanying condensed financial statements.

The accounts of the Company and its subsidiaries have been included in the accompanying condensed consolidated financial statements.

All significant intercompany balances and transactions have been eliminated in consolidation.

9 unchanged sentences

The Company has an investment in FG Financial Group, Inc.

(formerly 1347 Property Insurance Holdings, Inc.), made through FGI 1347 Holdings, LP, a consolidated VIE.

made through FGI 1347 Holdings, LP, a consolidated VIE.

Fair Value of Financial Instruments

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 March 31, 2022, and December 31, 2021, 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 June 30, 2022, and December 31, 2021, 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

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 months ended March 31, 2022.

The accounting change did not have a material effect on the loss from operations, net loss, or earnings per share for the three and six months ended June 30, 2022.

Significant Events and Transactions

Pursuant to the Company’s capital return program, the Company’s Board of Directors declared a quarterly dividend of $ 0.03 per share of the Company’s common stock on April 6, 2022, to stockholders of record as of May 2, 2022.

These dividends will be paid on May 16, 2022.

Pursuant to the Company’s capital return program, the Company’s Board of Directors declared a quarterly dividend of $ 0.03 per share of the Company’s common stock on June 30, 2022, to stockholders of record as of July 25, 2022.

These dividends will be paid on August 8, 2022.

On April 6, 2022, the Company’s Board of Directors declared a quarterly dividend of $ 0.03 per share of the Company’s common stock to stockholders of record as of May 2, 2022.

These dividends were paid on May 16, 2022.

Allowance for Doubtful Accounts

The allowance for doubtful accounts on trade receivables was approximately $ 50 on gross trade receivables of $ 4,813 and 8,279 at March 31, 2022, and December 31, 2021, respectively.

The allowance for doubtful accounts on trade receivables was approximately $ 50 on gross trade receivables of $ 6,569 and $ 8,279 at June 30, 2022 and December 31, 2021, 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.

2 unchanged sentences

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

Inventories, Net - continued

The fiscal 2021 financial statements have been retrospectively adjusted to apply the new inventory change method.

The cumulative effect of this change on periods prior to those presented herein resulted in a net decrease in accumulated deficit of approximately $ 1,104 as of January 1, 2021.

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

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

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 $ 1,214 at March 31, 2022, compared with approximately $ 1,288 at December 31, 2021.

The allowances were approximately $ 1,214 at June 30, 2022, compared with approximately $ 1,288 at December 31, 2021.

As a result of the retrospective application of this change in accounting method, the following financial statement line items within the accompanying fiscal 2021 Condensed Consolidated financial statements were adjusted as follows:

As Originally

in Accounting Principle

1 unchanged sentence

Cost of goods sold:

Three months ended March 31, 2021

Loss before income taxes:

Three months ended March 31, 2021

Net loss income per share-basic and diluted:

Three months ended March 31, 2021

Three months ended June 30, 2021

Income before income taxes:

Three months ended June 30, 2021

Net income per share-basic:

Three months ended June 30, 2021

Net income per share-diluted:

Three months ended June 30, 2021

Cost of goods sold:

Six months ended June 30, 2021

Income before income taxes:

Six months ended June 30, 2021

Net income per share-basic and diluted:

Six months ended June 30, 2021

Condensed Statements of Cash Flows

Net loss as of March 31, 2021

Net income for six months ended June 30, 2021

Inventories allowance

The Company has not recorded income tax provision or benefit for the three months ended March 31, 2022 and 2021.

The Company has recorded no income tax expense for the three and six months ended June 30, 2022, compared with an income tax expense of $ 184 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.

1 unchanged sentence

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 March 31, 2022, 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 June 30, 2022, 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.

2 unchanged sentences

Based on the analysis of all available evidence, both positive and negative, the Company has concluded that it does not have the ability to generate sufficient taxable income in the necessary period to utilize the entire benefit for the deferred tax assets.

Accordingly, the Company established a valuation allowance of $ 1,480 and $ 610 as of March 31, 2022 and December 31, 2021, respectively.

Accordingly, the Company established a valuation allowance of $ 2,693 and $ 610 as of June 30, 2022 and December 31, 2021, respectively.

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 March 31, 2022.

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, 2022.

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 GP, 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 Investors, 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 March 31, 2022, the Company indirectly held approximately $ 62 in cash and 477,282 shares of FG Financial Group, Inc.

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

As of June 30, 2022, the Company indirectly held approximately $ 53 in cash and 477,282 shares of FG Financial Group, Inc.

FGF) (“FGF”), with fair value of $ 697 , through an investment in 1347 LP.

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

For the three months ended March 31, 2022, the Company recognized unrealized loss of $ 496 on the investment, compared with unrealized gain of $ 205 for the same period last year.

There have been no costs, fees, and expenses paid to the general partner or its affiliates for any periods, including the three months ended March 31, 2022 and 2021.

Investment in Securities -continued

As of March 31, 2022, 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.

For the three and six months ended June 30, 2022, the Company recognized unrealized losses on the investment of approximately $ 602 and $ 1,098 , respectively, compared with unrealized gains of $ 2,262 and $ 2,467 , 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, 2022 and 2021.

As of June 30, 2022, the Company and the affiliates of FG, including, without limitation, Ballantyne Strong, Inc., beneficially owned in the aggregate 5,431,498 shares of FGF’s common stock, representing approximately 58.5 % of FGF’s outstanding shares.

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

Kyle Cerminara, a member of the Company’s Board of Directors, is Chief Executive Officer, Co-Founder and Partner of FG and serves as Chairman of the Board of Directors of Ballantyne Strong, Inc.

Kyle Cerminara, Chairman of the Company’s Board of Directors, is Chief Executive Officer, Co-Founder and Partner of FG and serves as Chairman of the Board of Directors of Ballantyne Strong, Inc.

Cerminara also serves as Chairman of the Board of Directors of FGF.

Stockholders’ Equity

The changes in condensed consolidated stockholders’ equity for the three months ended March 31, 2022 and 2021*, are as follows:

The changes in condensed consolidated stockholders’ equity for the three and six months ended June 30, 2022 and 2021, are as follows:

Common Stock Shares

Common Stock Amount

Balance at December 31, 2021

3 unchanged sentences

Balance at March 31, 2022

Common stock issued under restricted stock units

Share-based compensation expense-stock options

Share-based compensation expense-restricted stock units

Common stock dividends ($0.03 per share)

Balance at June 30, 2022

Common Stock Shares

Common Stock Amount

Balance at December 31, 2020*

4 unchanged sentences

Balance at March 31, 2021*

* The amounts as of December 31, 2020, and for the period ended March 31, 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.

Common stock issued, net of issuance cost

Share-based compensation expense-stock options

Share-based compensation expense-restricted stock units

Balance at June 30, 2021*

*The amounts for 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.

Income (Loss) Per Share

1 unchanged sentence

Three Months Ended

Net loss for basic and diluted earnings per share

Denominator for basic loss per share weighted average shares

Six Months Ended

June 30, 2022

June 30, 2021*

June 30, 2022

June 30, 2021*

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

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

Effect of dilutive securities:

Options and restricted stock units

Denominator for diluted loss per share weighted average shares

Basic and diluted loss per share

Approximately 909,000 stock options and 137,055 restricted stock units for the three months ended March 31, 2022, respectively, and 489,000 stock options and 122,533 restricted stock units for the three months ended March, 2021, respectively, were excluded from the calculation because they were anti-dilutive.

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

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

Basic (loss) income per share

Diluted (loss) income per share

Approximately 1,014,000 stock options and 102,791 restricted stock units for the three and six months ended June 30, 2022, respectively, and 444,000 stock options and 0 restricted stock units for the three and six months ended June 30, 2021, respectively, were excluded from the calculation because they were anti-dilutive.

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 $ 85 for the three months ended March 31, 2022, compared with $ 32 for the same period last year.

Related to these programs, the Company recorded non-cash share-based employee compensation expense of $ 51 and $ 136 for the three and six months ended June 30, 2022, respectively, compared with $ 33 and $ 65 , for the same periods 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 months ended March 31, 2022, was calculated using certain assumptions.

The non-cash share-based employee compensation expense recorded in the three and six months ended June 30, 2022, 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, 2021.

Non-Cash Share-Based Employee Compensation - continued

A summary of activity under the Company’s stock option plans during the three months ended March 31, 2022, is presented below:

($) Per Share

Intrinsic Value

A summary of activity under the Company’s stock option plans during the six months ended June 30, 2022, is presented below:

Stock Options

Exercise Price ($) Per Share

Remaining Contractual Life (Years)

Grant Date Fair Value ($) Per Share

Aggregate Intrinsic Value ($)

As of January 1, 2022

Period activity

As of March 31, 2022

As of June 30, 2022

Restricted Stock Units

On June 30, 2022, the Company granted 3,200 restricted stock units to Joshua Horowitz for strategic advisory service compensation.

These restricted stock units were fully vested and settled on the date of grant.

On June 30, 2022, the Company, at the direction of the Board of Directors, accelerated the vesting of former director Michael Dill’s unvested restricted stock units granted September 6, 2018, September 6, 2019, August 24, 2020, and July 30, 2021, and issued 34,264 shares of common stock to Mr.

On June 8, 2022, the Company, at the direction of the Board of Directors, granted 10,000 restricted stock units to John Suzuki for bonus compensation.

These restricted stock units were fully vested and settled on the date of grant.

On May 31, 2022, the Company granted 3,200 restricted stock units to Joshua Horowitz for strategic advisory service compensation.

These restricted stock units were fully vested and settled on the date of grant.

On April 30, 2022, the Company granted 3,200 restricted stock units to Joshua Horowitz for strategic advisory service compensation.

These restricted stock units were fully vested and settled on the date of grant.

On March 31, 2022, the Company granted 16,000 restricted stock units to Joshua Horowitz for strategic advisory service compensation.

These restricted stock units were fully vested on the date of grant.

These restricted stock units were fully vested and settled on the date of grant.

On December 17, 2021, upon the resignation of former director John Struble, the Company, at the direction of the Board of Directors, accelerated the vesting of Mr.

4 unchanged sentences

Johnson’s unvested restricted stock units granted September 6, 2018, September 6, 2019, and August 24, 2021, and issued 24,505 shares of common stock to Mr.

Non-Cash Share-Based Employee Compensation - continued

On April 24, 2020, upon the resignation of former director Ryan Turner, the Company, at the direction of the Board of Directors, accelerated the vesting of Mr.

Turner’s unvested restricted stock units granted September 6, 2019, and September 6, 2018, and issued 10,389 and 4,050 shares of common stock, respectively.

There were 137,055 restricted stock units outstanding as of March 31, 2022, and December 31, 2021.

The Company recorded non-cash restricted stock unit compensation expense of $ 70 for the three months ended March 31, 2022, compared with $ 103 for the same period last year.

There were 102,791 and 137,055 restricted stock units outstanding as of June 30, 2022, and December 31, 2021, respectively.

The Company recorded non-cash restricted stock unit compensation expense of $ 171 and $ 241 for the three and six months ended June 30, 2022, respectively, compared with $ 25 and $ 128 , respectively for the same periods last year.

Commitments and Contingencies

5 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 March 31, 2022.

There were no pending material claims or legal matters as of June 30, 2022.

Covid 19 and Geo Political Tension

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.

Although we believe the pandemic has not had a material adverse impact on our business through 2020, it may have the potential of doing so in the future.

The extent of the potential impact of the COVID-19 pandemic on our business and financial performance will depend on future developments, which are uncertain and, given the continuing evolution of the COVID-19 pandemic and the global responses to curb its spread, cannot be predicted.

In addition, the pandemic has significantly increased economic uncertainty and caused a worldwide economic downturn.

The pandemic may have the potential of adversely impacting our business and financial performance in the future.

The extent of the potential impact will depend on future developments, which are uncertain and, given the continuing evolution of the COVID-19 pandemic and the global responses to curb its spread, cannot be predicted.

In addition, the pandemic has significantly increased economic uncertainty.

Even after the COVID-19 pandemic has subsided, we may continue to experience an adverse impact to our business as a result of its national and, to some extent, global economic impact, including any recession that may occur in the future.

Additionally, U.S.

and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine.

Purchase Commitments

As of March 31, 2022, the Company had purchase commitments for inventory totaling approximately $ 12,533 .

As of June 30, 2022, the Company had purchase commitments for inventory totaling approximately $ 9,394 .

Significant Customers

Sales to United States government agencies represented approximately $ 1,650 ( 25.05 %) of the Company’s net total sales for the three months ended March 31, 2022, compared with approximately $ 2,116 ( 24.71 %) for the same period last year.

Accounts receivable from agencies of the United States government were $ 1,314 as of March 31, 2022, compared with approximately $ 1,490 at the same date last year.

Sales to United States government agencies represented approximately $ 5,316 ( 43.9 %) and $ 6,965 ( 37.3 %) of the Company’s net total sales for the three and six months ended June 30, 2022, respectively, compared with approximately $ 4,749 ( 41.9 %) and $ 6,865 ( 34.5 %), for the same periods last year.

Accounts receivable from agencies of the United States government were $ 2,554 as of June 30, 2022, compared with approximately $ 3,279 at the same date last year.

BK Technologies, Inc.

7 unchanged sentences

On January 31, 2022, our revolving credit facility, which originated on January 30, 2020, was extended for one year, through January 31, 2023.

Debt - continued

Borrowings under the Credit Agreement will bear interest at the secured overnight financing rate plus a margin of 2.0 %.

The line of credit, as modified, is to be repaid in monthly payments of interest only, payable in arrears, commencing on February 1, 2022 , with all outstanding principal and interest to be payable in full at maturity ( January 31, 2023 ).

As of March 31, 2022, the interest rate was 2.398 %.

As of June 30, 2022, the interest rate was 3.344 %.

The Credit Agreement contains certain customary restrictive covenants, including restrictions on liens, indebtedness, loans and guarantees, acquisitions and mergers, sales of assets, and stock repurchases by BK Technologies, Inc.

10 unchanged sentences

BK Technologies, Inc.

was in compliance with all covenants under the Credit Agreement as of March 31, 2022, and the date of filing this report.

As of March 31, 2022, the Company had an outstanding balance of $ 1,458 , and a net balance availability of $ 2,727 under the Credit Agreement.

was in compliance with all covenants under the Credit Agreement as of June 30, 2022, and the date of filing this report.

As of June 30, 2022, the Company had an outstanding balance of $ 3,958 , and a net balance availability of $ 1,042 under the Credit Agreement.

As of the date of filing this report, the Company had an outstanding balance of $ 3,958 , and a net balance availability of $ 1,042 under the Credit Agreement.

7 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 %.

Debt - continued

Current balances of notes payable at March 31, 2022, and December 31, 2021, are set forth in the table below:

Current balances of notes payable at June 30, 2022 and December 31, 2021, are set forth in the table below:

June 30, 2022

December 31, 2021

Note payable-US.

Note payable-JP Morgan Chase Bank

Long-term balances of notes payable at March 31, 2022, and December 31, 2021, are set forth in the table below:

Long-term balances of notes payable at June 30, 2022 and December 31, 2021, are set forth in the table below:

June 30, 2022

December 31, 2021

Note payable-US.

14 unchanged sentences

The original term of the lease was through December 31, 2021 .

Leases - continued

Lease costs consisted of the following:

Three Months Ended

Six Months Ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Operating lease cost

4 unchanged sentences

Three Months Ended

Six Months Ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

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

4 unchanged sentences

Other information related to operating leases was as follows:

June 30, 2022

Weighted average remaining lease term (in years)

Weighted average discount rate

Maturities of lease liabilities as of March 31, 2022, were as follows:

Remaining nine months of 2022

Maturity of lease liabilities as of June 30, 2022, were as follows:

June 30, 2022

Remaining six months of 2022

Total payments

imputed interest

Total present value of lease liabilities

Total present value of lease liability

Subsequent Events

On July 14, 2022, the Company granted 87,500 incentive stock options of the 2017 Incentive Compensation Plan, to a number of non-management employees.

The options contained a 5 year vesting term, beginning on July 14, 2023 and on each anniversary date of the grant thereafter.

On July 1, 2022, the Company issued 18,715 and 11,062 restricted stock units to Michael Dill and Inez Tenenbaum, respectively, former directors of the Company for services performed.

These restricted stock units were fully vested and settled on the date of grant.

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