BK Technologies Corp (NYSE American:BKTI), a manufacturer of radio and communications equipment, has undergone a change in its independent registered public accounting firm, as disclosed in a recent SEC Form 8-K filing. Effective November 1, 2024, the company's previous auditor, MSL P.A., resigned following a transaction in which MSL's employees and shareholders became part of Forvis Mazars LLP.
The transition to Forvis Mazars was prompted by MSL's integration into the larger firm. BK Technologies' Audit Committee has since appointed Forvis Mazars as their new independent registered public accounting firm. The company has stated that in the two fiscal years leading up to December 31, 2023, and in the interim period before MSL's resignation, there were no disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required MSL to report any issues.
Furthermore, BK Technologies did not consult with Forvis Mazars on any matters that would require disclosure under Regulation S-K Items 304(a)(2)(i) and (ii) during the same period. In accordance with standard practice, BK Technologies provided MSL with the disclosures made in the Form 8-K and received a letter from MSL, dated November 6, 2024, agreeing with the statements made within the report.
The company's filing ensures a seamless transition with no reported adverse opinions or disagreements with the former accounting firm. The appointment of Forvis Mazars is part of the company's ongoing commitment to maintaining rigorous financial oversight and transparency. This change comes as BK Technologies continues to operate in the manufacturing sector under the standard industrial classification code for Radio & TV Broadcasting & Communications Equipment.
Investors and stakeholders in BK Technologies may view this change as a routine administrative adjustment, as there are no indications of past financial discrepancies or disputes with MSL. The company, headquartered in West Melbourne, Florida, has not indicated any operational changes in conjunction with this announcement. The information in this article is based on a press release statement.
In other recent news, BK Technologies has made significant strides in its financial and operational performance. A noteworthy development is the company's recent agreement with Fifth Third Bank, securing a $6 million revolving credit facility with an expansion option up to $10 million. This arrangement provides BK Technologies with a flexible financing option to support its operations and potential growth initiatives.
Furthermore, the company's Q2 results have shown strong performance with record new order activity, revenue growth, and improved profitability. BK Technologies reported a net income of $1.7 million, with non-GAAP earnings of $0.55 per diluted share, surpassing its gross margin target of 35% by reaching 37.3%. This aligns with the company's trajectory to exceed full-year GAAP EPS of $1.50 and non-GAAP adjusted EPS of $1.77.
The company has also seen a surge in interest in its software solution, InteropONE, due to its potential to enhance coordination among various governmental agencies. Despite the BKR9000's limited revenue contribution, BK Technologies remains confident in surpassing its full-year earnings projections and achieving further operational benefits from its strategic transition to East West manufacturing. These are recent developments investors should consider.
InvestingPro Insights
BK Technologies Corp (NYSE American:BKTI) has demonstrated strong financial performance recently, which complements the company's smooth transition in auditing firms. According to InvestingPro data, BKTI has shown impressive revenue growth of 6.99% over the last twelve months as of Q2 2024, with total revenue reaching $74.86 million. The company's profitability is also noteworthy, with a gross profit margin of 34.69% and an operating income margin of 5.35% for the same period.
InvestingPro Tips highlight that BKTI has been profitable over the last twelve months and operates with a moderate level of debt. These factors suggest financial stability, which is crucial for investor confidence during changes in key service providers like auditing firms. Additionally, the company has shown a strong return over the last three months, with a remarkable price total return of 112.66% over that period.
It's worth noting that while BKTI does not pay a dividend to shareholders, it has demonstrated significant price appreciation. The 1-year price total return stands at an impressive 98.64%, indicating substantial value creation for investors.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for BKTI, providing a more comprehensive view of the company's financial health and market position.
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