Note 6 - Debt |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Notes to Financial Statements | |
| Debt Disclosure [Text Block] |
6. Debt
Credit Facilities On October 30, 2024, the Company’s wholly owned subsidiary, BK Technologies, Inc. entered into a new revolving loan commitment agreement with Fifth Third Bank, N.A. On October 30, 2025, BK Technologies, Inc., as the borrower, entered into an amendment to its revolving credit facility with Fifth Third Bank, National Association, as the lender (as amended, the “Fifth Third Credit Agreement”). The Fifth Third Credit Agreement provides for a -year revolving line of credit with a maximum commitment of $6,000, with an accordion feature, if certain conditions are met, for up to an additional $8,000 of borrowing capacity, totaling a maximum commitment of $14,000. Each advance shall accrue interest on the outstanding principal amount thereof at a rate of 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. There were borrowings under the Fifth Third Credit Agreement as of December 31, 2025.
BK Technologies, Inc.’s repayment obligations under the credit facility are guaranteed by the Company and secured by a pledge of essentially all of the assets of BK Technologies, Inc., and the Company.
BK Technologies Inc. and the Company are subject to customary negative covenants, including with respect to their ability to incur additional indebtedness, encumber and dispose of their assets and enter into affiliate transactions. As of December 31, 2025, the Company believes that it was in compliance with the debt covenants and there was no outstanding borrowing balance.
On November 22, 2022, the Subsidiaries entered into the IPSA with Alterna. On November 28, 2022, the Subsidiaries and Alterna entered into a rider to the IPSA, to modify the IPSA to, among other things, provided a credit facility for up to 75% of net orderly liquidation value of inventory, not to exceed 100% of the eligible accounts receivable balance. The IPSA, which provided for a -year Line of Credit with a maximum capacity of up to $15,000 was renewed in November 2023 and paid in full on September 30, 2024. The Line of Credit bore an interest rate of plus 1.85%. Interest and related servicing fees for the year ended December 31, 2024, was approximately $356. Under the arrangement, the Company could transfer eligible short-term trade receivables to the conduit, with full recourse, on a daily basis in exchange for cash. Generally, at the transfer date, the Company could receive cash equal to approximately 85% of the value of the transferred receivables. The Company accounted for the transfers of receivables as a secured borrowing due to the Company’s continuing involvement with the accounts receivable. During the year ended December 31, 2024, the Company transferred receivables having an aggregate face value of $49,700, to the conduit and received proceeds of $46,400, which also includes draws on available inventory funding. There were losses incurred on these transfers during the year ended December 31, 2024. The Company terminated the IPSA in October 2024 upon entering into the credit facility with Fifth Third Bank.
Note Payable
On September 25, 2019, BK Technologies, Inc., a wholly owned subsidiary of the Company, and U.S. Bank Equipment Finance, a division of U.S. Bank National Association, as a lender, entered into a Master Loan Agreement in the amount of $425 to finance various items of manufacturing equipment. The loan was collateralized by the equipment purchased using the proceeds. The Master Loan Agreement was payable in 60 equal monthly principal and interest payments of approximately $8 beginning on October 25, 2019, was scheduled to mature on September 25, 2024, and bore a fixed interest rate of 5.11%. This note payable was paid in full on June 24, 2024
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