BK Technologies(BKTI) - 2022 Q4 - Annual Report

Financial Performance - BK Technologies Corporation reported net sales of $50,951,000 for the year ended December 31, 2022, an increase of 12$45,364,000 in 2021[48]. - The net loss for the year ended December 31, 2022, was $11,633,000, compared to a net loss of$1,701,000 in 2021, reflecting a substantial decline in profitability[48]. - The company recognized an operating loss of approximately $11.1 million (21.7$1.2 million (2.6% of sales) in the previous year[136][147]. - The net loss for 2022 totaled approximately $11.6 million ($0.69 per basic share), compared to a net loss of approximately $1.7 million ($0.11 per basic share) in 2021[149]. - The company incurred operating losses and reported negative cash flows from operations during 2022 and 2021, impacted by worldwide shortages of materials[91]. Expenses and Liabilities - The company incurred a total operating expense of $62,032,000 in 2022, which is a significant increase from$46,560,000 in 2021, leading to an operating loss of $11,081,000[48]. - Total liabilities increased to$28,697,000 in 2022 from 17,767,000 in 2021, indicating a rise in the company's financial obligations[45]. - Selling, general and administrative (SG&A) expenses totaled approximately 20.9 million, representing 41.1% of sales, compared to $17.5 million (38.5$144,000 in 2022, compared to $53,000 in the prior year[138]. Cash Flow and Assets - Cash and cash equivalents at the end of 2022 were$1,918,000, a decrease from $10,580,000 at the beginning of the year, reflecting a net change of$(8,662,000)[56]. - Net cash used in operating activities for 2022 was $(9,000,000), compared to$(6,302,000) in 2021, indicating a worsening cash flow situation[56]. - Total current assets decreased to $36,217,000 in 2022 from$37,421,000 in 2021, while total assets decreased to $48,832,000 from$50,385,000[45]. - Working capital as of December 31, 2022, was approximately $13.2 million, down from$25.2 million at the end of 2021[151]. Inventory and Accounts - The company recorded an allowance for slow-moving, excess, and obsolete inventory of approximately $1,247,000 as of December 31, 2022[30]. - Inventory levels increased by approximately$5.1 million during the year ended December 31, 2022, attributed to extended supply-chain lead times[178]. - The company experienced an increase in accounts payable of approximately $7.0 million for the year ended December 31, 2022, compared to an increase of approximately$0.8 million for the prior year[178]. - Accounts receivable increased by approximately $2.4 million during the year ended December 31, 2022, primarily due to the timing of sales[178]. Shareholder Equity and Stock Options - Total stockholders' equity at December 31, 2022, was$20,135,000, down from $32,618,000 at December 31, 2021, indicating a decrease of approximately 38.4$271,000 in 2022, up from $253,000 in 2021, showing a 7.1$404,000 for the year ended December 31, 2022, compared to $306,000 for 2021, reflecting a 32$9,604,000 and $8,203,000, respectively[95]. - Engineering and product development expenses for 2022 were approximately$9.6 million (18.8% of sales), including a one-time write-off of $646,000[132]. Market and Operational Challenges - The company anticipates that supply chain constraints may continue to impact operations and sales in the upcoming quarters[125][130]. - Approximately 17.0$70 million, an increase from previous years[153]. - For the fiscal year 2022, net sales increased by approximately $5.6 million to approximately$51.0 million, compared to approximately $45.4 million in 2021[156]. - As of December 31, 2022, the current backlog of customer orders is healthy, with expectations to fulfill many during the first half of 2023[124][146].