BK Technologies (BKTI) 10-Q 5 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 02, 2020
Document And Entity Information
Entity Registrant Name	BK Technologies Corp
Entity Central Index Key	0000002186
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	NV
Entity File Number	001-32644
Entity Common Stock, Shares Outstanding		12,493,420
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 6,939	$ 4,676
Trade accounts receivable, net	3,583	3,964
Inventories, net	9,527	13,513
Prepaid expenses and other current assets	1,408	1,733
Total current assets	21,457	23,886
Property, plant and equipment, net	3,828	3,964
Right-of-use (ROU) asset	2,709	2,885
Investment in securities	2,129	2,635
Deferred tax assets, net	4,344	4,373
Other assets	143	197
Total assets	34,610	37,940
Current liabilities:
Accounts payable	4,472	5,310
Accrued compensation and related taxes	940	1,271
Accrued warranty expense	911	1,248
Accrued other expenses and other current liabilities	385	479
Dividends payable	250	252
Short-term lease liability	417	369
Note payable-current portion	80	78
Deferred revenue	556	369
Total current liabilities	8,011	9,376
Note payable, net of current portion	289	328
Long-term lease liability	2,426	2,606
Deferred revenue	2,724	2,354
Total liabilities	13,450	14,664
Commitments and contingencies
Stockholders' equity:
Preferred stock; $1.00 par value; 1,000,000 authorized shares; none issued or outstanding	0	0
Common stock; $.60 par value; 20,000,000 authorized shares; 13,943,820 and 13,929,381 issued and 12,493,420 and 12,596,923 outstanding shares at June 30, 2020 and December 31, 2019, respectively	8,366	8,357
Additional paid-in capital	26,235	26,095
Accumulated deficit	(8,039)	(6,043)
Treasury stock, at cost, 1,450,400 and 1,332,458 shares at June 30, 2020 and December 31, 2019, respectively	(5,402)	(5,133)
Total stockholders' equity	21,160	23,276
Total liabilities and stockholders' equity	$ 34,610	$ 37,940

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Stockholders equity:
Preferred stock, par value	$ 1	$ 1
Preferred stock, authorized shares	1,000,000	1,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ .60	$ 0.60
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	13,943,820	13,929,381
Common stock, outstanding shares	12,493,420	12,596,923
Treasury stock, shares	1,450,400	1,332,458

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Sales, net	$ 9,937	$ 13,294	$ 20,826	$ 20,938
Expenses
Cost of products	5,609	7,593	12,603	12,800
Selling, general and administrative	4,364	5,681	9,107	10,436
Total expenses	9,973	13,274	21,710	23,236
Operating loss	(36)	20	(884)	(2,298)
Other (expense) income:
Net interest (expense) income	(6)	46	3	101
(Loss) gain on investment in securities	(200)	(148)	(506)	444
Other expense	(32)	(11)	(79)	(13)
Total other (expense) income	(238)	(113)	(582)	532
Loss before income taxes	(274)	(93)	(1,466)	(1,766)
Income tax benefit (expense)	(28)	(154)	(28)	201
Net loss	$ (302)	$ (247)	$ (1,494)	$ (1,565)
Net loss per share-basic and diluted	$ (0.02)	$ (0.02)	$ (0.12)	$ (0.12)
Weighted average shares outstanding-basic	12,495,707	12,720,112	12,525,407	12,740,798
Weighted average shares outstanding-diluted	12,495,707	12,720,112	12,525,407	12,740,798

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities
Net loss	$ (1,494)	$ (1,565)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Inventories allowances	72	49
Deferred tax expense (benefit)	28	(164)
Depreciation and amortization	661	575
Share-based compensation expense-stock options	60	68
Share-based compensation expense-restricted stock units	89	74
Loss (gain) on investment in securities	506	(444)
Changes in operating assets and liabilities:
Trade accounts receivable	381	628
Inventories	3,914	(1,840)
Prepaid expenses and other current assets	325	269
Other assets	54	(4)
Lease liability	44	0
Accounts payable	(838)	1,246
Accrued compensation and related taxes	(331)	(691)
Accrued warranty expense	(337)	(106)
Deferred revenue	557	417
Accrued other expenses and other current liabilities	(94)	155
Net cash provided by (used in) operating activities	3,597	(1,333)
Investing activities
Purchases of property, plant and equipment	(525)	(1,462)
Net cash used in investing activities	(525)	(1,462)
Financing activities
Proceeds from issuance of common stock	0	2
Cash dividends declared and paid	(502)	(510)
Repurchase of common stock	(269)	(550)
Proceeds from debt	2,196	0
Repayment of debt	(2,234)	0
Net cash used in financing activities	(809)	(1,058)
Net change in cash and cash equivalents	2,263	(3,853)
Cash and cash equivalents, beginning of period	4,676	11,268
Cash and cash equivalents, end of period	6,939	7,415
Supplemental disclosure
Cash paid for interest	$ 11	$ 0
Non-cash financing activity
Common stock issued under restricted stock units	56	140

1. Condensed Consolidated Finan

1. Condensed Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. Condensed Consolidated Financial Statements	Basis of Presentation The condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019 have been prepared by BK Technologies Corporation (the “Company” or “we”), 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. For the purpose of this report, references to “we” or the “Company” or its management or business at any period prior to the holding company reorganization (March 28, 2019) refer to those of BK Technologies, Inc. as the predecessor company and its subsidiaries and thereafter to those of BK Technologies Corporation and its subsidiaries, except as otherwise specified or to the extent the context otherwise indicates. In the opinion of management, all adjustments, which include normal, recurring adjustments, necessary for a fair presentation have been made. All intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated balance sheet at December 31, 2019 has been derived from the Company’s audited consolidated financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. 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, 2019, as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the operating results for a full year. The Company periodically reviews its revenue recognition procedures to assure that such procedures are in accordance with GAAP. Surcharges collected on certain sales to government customers and remitted to governmental agencies are not included in revenues or in costs and expenses. Principles of Consolidation The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a variable interest entity (“VIE”) or a voting interest entity. VIEs are entities in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities independently, or (ii) the at-risk equity holders do not have the normal characteristics of a controlling financial interest. A controlling financial interest in a VIE is present when an enterprise has one or more variable interests that have both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The enterprise with a controlling financial interest is the primary beneficiary and consolidates the VIE. Voting interest entities lack one or more of the characteristics of a VIE. The usual condition for a controlling financial interest is ownership of a majority voting interest for a corporation or a majority of kick-out or participating rights for a limited partnership. When the Company does not have a controlling financial interest in an entity but exerts significant influence over the entity’s operating and financial policies (generally defined as owning a voting or economic interest of between 20% to 50%), the Company’s investment is accounted for under the equity method of accounting. If the Company does not have a controlling financial interest in, or exert significant influence over, an entity, the Company accounts for its investment at fair value, if the fair value option was elected, or at cost. The Company has an investment in 1347 Property Insurance Holdings, Inc., made through FGI 1347 Holdings, LP, a consolidated VIE. Fair Value The Company’s financial instruments consist of cash and cash equivalents, trade accounts receivable, investment in securities, accounts payable, accrued expenses, notes payable, and other liabilities. As of June 30, 2020 and December 31, 2019, 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases,” which amended leasing guidance by requiring companies to recognize a right-of-use (“ROU”) asset and a lease liability for all operating and capital (finance) leases with lease terms greater than twelve months. The lease liability is equal to the present value of lease payments. The lease asset is based on the lease liability, subject to adjustment, such as for initial direct costs. For income statement purposes, leases continue to be classified as operating or capital (finance), with lease expense in both cases calculated substantially the same as under the prior leasing guidance. The updated guidance became effective for interim and annual periods beginning after December 15, 2018. The Company adopted the new guidance on January 1, 2019. Adoption resulted in the recognition of ROU assets and lease liabilities on the condensed consolidated financial statements. Refer to Note 12 (Leases) for further details on leases. In

2. Significant Events and Trans

2. Significant Events and Transactions	6 Months Ended
	Jun. 30, 2020
Significant Events And Transactions
2. 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 June 10, 2020 to stockholders of record as of July 6, 2020. These dividends were paid on July 20, 2020. In May 2020, the Company announced that its operating subsidiary received orders totaling approximately $1,400 from the U.S. Forest Service. The orders were for KNG-Series Digital P-25 portable radios, mobile radios and base stations with related accessories, and were fulfilled during the second quarter of 2020. In May 2020, the Company implemented workforce reductions of approximately 18% to reduce costs and to better position the Company in an uncertain business environment resulting from the COVID-19 pandemic. The Company incurred approximately $221 in severance costs relating to these workforce reductions, which were recognized in the second quarter of 2020 and will be paid according to the Company’s normal payroll practices through September 2020. In April 2020, BK Technologies, Inc., a wholly-owned operating subsidiary of the Company, received approval and funding pursuant to a promissory note evidencing an unsecured loan in the amount of approximately $2,196 (the “Loan”) under the Paycheck Protection Program (or “PPP”). The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). The Company intended to use the Loan for qualifying expenses in accordance with the terms of the CARES Act. At the time the Company applied for the Loan, it believed it qualified to receive the funds pursuant to the PPP. Subsequently, the SBA, in consultation with the Department of Treasury, issued new guidance that created uncertainty regarding the qualification requirements for a PPP loan. In April 2020, out of an abundance of caution, the Company repaid the loan in full. 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. The challenges posed by the COVID-19 pandemic on the global economy increased significantly as the first half of 2020 progressed, and the Company anticipates the effects of COVID-19 will continue to have an adverse impact on the Company going forward. In response to COVID-19, national and local governments around the world have instituted certain measures, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing. In response to the COVID-19 pandemic, the Company has undertaken certain measures in an effort to mitigate the impact of the COVID-19 pandemic on the Company, including implementing employee safety measures and taking steps to reduce expenses, including workforce reductions. The ultimate impact of COVID-19 on the Company’s business, results of operations, financial condition and cash flows is dependent on future developments, including the duration of the pandemic, including whether there is a “second wave,” and the related length of its impact on the global economy, which are uncertain and, given the daily evolution of the COVID-19 pandemic and the global responses to curb its spread, cannot be predicted at this time. Even after the COVID-19 pandemic has subsided, the Company may continue to experience an adverse impact to its business as a result of the pandemic’s national and, to some extent, global economic impact, including any recession that has occurred or may occur in the future.

3. Allowance for Doubtful Accou

3. Allowance for Doubtful Accounts	6 Months Ended
	Jun. 30, 2020
Allowance For Doubtful Accounts
3. Allowance for Doubtful Accounts	The allowance for doubtful accounts on trade receivables was approximately $50 on gross trade receivables of $3,633 and $4,014 at June 30, 2020 and December 31, 2019, 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.

4. Inventories, net

4. Inventories, net	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
4. Inventories, net	The components of inventories, net of allowances for slow-moving, excess or obsolete inventory, consisted of the following: June 30, 2020 December 31, 2019 Finished goods $ 2,781 $ 3,864 Work in process 3,242 6,122 Raw materials 3,504 3,527 $ 9,527 $ 13,513 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 $466 at June 30, 2020, compared with approximately $823 at December 31, 2019.

5. Income Taxes

5. Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
5. Income Taxes	The Company has recorded an income tax expense of $28 derived from the change in valuation allowance related to net operating loss carryforwards for the state of Florida that are anticipated to expire unutilized in 2020 for the three and six months ended June 30, 2020, compared with an income tax expense of approximately $154 for the three months ended June 30, 2019, and an income tax benefit of approximately $201 for the six months ended June 30, 2019. 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. 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, 2020, the Company’s net deferred tax assets totaled approximately $4,344 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. The Company analyzed all positive and negative evidence to determine if, based on the weight of available evidence, it is more likely than not to realize the benefit of the net deferred tax assets. The recognition of the net deferred tax assets and related tax benefits is based upon the Company’s conclusions regarding, among other considerations, estimates of future earnings based on information currently available and current and anticipated customers, contracts and product introductions, as well as historical operating results and certain tax planning strategies. 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 $28 related to state of Florida net operating loss carryforwards that are anticipated to expire unutilized in 2020. 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, 2020.

6. Investment in Securities

6. Investment in Securities	6 Months Ended
	Jun. 30, 2020
Schedule of Investments [Abstract]
6. Investment in Securities	The Company has an investment in a limited partnership, FGI 1347 Holdings, LP, of which the Company is the sole limited partner. FGI 1347 Holdings, LP was established for the purpose of investing in securities. As of June 30, 2020, the Company indirectly held approximately $146 in cash and 477,282 shares of 1347 Property Insurance Holdings, Inc. (Nasdaq: PIH) with fair value of $2,129, through an investment in FGI 1347 Holdings, LP. These shares were purchased in March and May 2018 for approximately $3,741. For the three months ended June 30, 2020, the Company recognized an unrealized loss on the investment of approximately $200, compared with an unrealized loss of $148 for the same period last year. For the six months ended June 30, 2020, the Company recognized an unrealized loss on the investment of approximately $506, compared with an unrealized gain of $444 for the same period last year. Affiliates of Fundamental Global Investors, LLC serve as the general partner and the investment manager of FGI 1347 Holdings, LP, and the Company is the sole limited partner. As of June 30, 2020, the Company and the affiliates of Fundamental Global Investors, LLC, including, without limitation, Ballantyne Strong, Inc., beneficially owned in the aggregate 3,042,593 shares of PIH’s common stock, including 100,000 shares of common stock subject to a call option, representing approximately 50.1% of PIH’s outstanding shares. In addition, Capital Wealth Advisors, Inc., an affiliate of Fundamental Global, held 64,710 shares of PIH’s common stock for the accounts of individual investors, which represents approximately 1.1% of PIH’s outstanding shares. Fundamental Global with its affiliates is the largest stockholder of the Company. Mr. Kyle Cerminara, a director of the Company, is Chief Executive Officer, Co-Founder and Partner of Fundamental Global Investors, LLC and serves as Chairman of the Board of Directors of Ballantyne Strong and of PIH. Mr. Lewis M. Johnson, a director of the Company, is President, Co-Founder and Partner of Fundamental Global Investors, LLC and serves as Co-Chairman of the Board of Directors of Ballantyne Strong and of PIH. Mr. John Struble, the Chairman of the Company’s Board of Directors, serves as a consultant to an affiliate of Fundamental Global Investors, LLC.

7. Stockholders' Equity

7. Stockholders' Equity	6 Months Ended
	Jun. 30, 2020
Stockholders' equity:
7. Stockholders' Equity	The changes in condensed consolidated stockholders’ equity for the three and six months ended June 30, 2020 and 2019 are as follows: Common Stock Shares Common Stock Amount Additional Paid-In Capital Accumulated Deficit Treasury Stock Total Balance at December 31, 2018 13,882,937 $ 8,330 $ 25,867 $ (2,393 ) $ (4,092 ) $ 27,712 Stock options exercised and issued 1,000 — 2 — — 2 Share-based compensation expense-stock options — — 31 — — 31 Share-based compensation expense-restricted stock units — — 41 — — 41 Common stock dividends ($0.02 per share) — — — (254 ) — (254 ) Net loss — — — (1,318 ) — (1,318 ) Repurchase of common stock — — — — (337 ) (337 ) Balance at March 31, 2019 13,883,937 8,330 25,941 (3,965 ) (4,429 ) 25,877 Common stock issued under restricted stock units 38,353 23 (23 ) — — — Share-based compensation expense-stock options — — 37 — — 37 Share-based compensation expense-restricted stock units — — 33 — — 33 Common stock dividends ($0.02 per share) — — — (255 ) — (255 ) Net loss — — — (247 ) — (247 ) Repurchase of common stock — — — — (213 ) (213 ) Balance at June 30, 2019 13,922,290 $ 8,353 $ 25,988 $ (4,467 ) $ (4,642 ) $ 25,232 Common Stock Shares Common Stock Amount Additional Paid-In Capital Accumulated Deficit Treasury Stock Total Balance at December 31, 2019 13,929,381 $ 8,357 $ 26,095 $ (6,043 ) $ (5,133 ) $ 23,276 Common stock issued under restricted stock units — — — — — — Share-based compensation expense-stock options — — 30 — — 30 Share-based compensation expense-restricted stock units — — 21 — — 21 Common stock dividends ($0.02 per share) — — — (250 ) — (250 ) Net loss — — — (1,192 ) — (1,192 ) Repurchase of common stock — — — — (243 ) (243 ) Balance at March 31, 2020 13,929,381 8,357 26,146 (7,485 ) (5,376 ) 21,642 Common stock issued under restricted stock units 14,439 9 (9 ) — — — Share-based compensation expense-stock options — — 30 — — 30 Share-based compensation expense-restricted stock units — — 68 — — 68 Common stock dividends ($0.02 per share) — — — (252 ) — (252 ) Net loss — — — (302 ) — (302 ) Repurchase of common stock — — — — (26 ) (26 ) Balance at June 30, 2020 13,943,820 $ 8,366 $ 26,235 $ (8,039 ) $ (5,402 ) $ 21,160

8. Loss per Share

8. Loss per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
8. Loss per Share	The following table sets forth the computation of basic and diluted loss per share: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Net loss (for basic and diluted loss per share) $ (302 ) $ (247 ) $ (1,494 ) $ (1,565 ) Denominator for basic loss per share weighted average shares 12,495,707 12,720,112 12,525,407 12,740,798 Effect of dilutive securities: Options and restricted stock units — — — — Denominator for diluted loss per share weighted average shares 12,495,707 12,720,112 12,525,407 12,740,798 Basic loss per share $ (0.02 ) $ (0.02 ) $ (0.12 ) $ (0.12 ) Diluted loss per share $ (0.02 ) $ (0.02 ) $ (0.12 ) $ (0.12 ) Approximately 510,900 stock options and 0 restricted stock units for the three and six months ended June 30, 2020, and 564,500 stock options and 116,667 restricted stock units for the three and six months ended June 30, 2019, were excluded from the calculation because they were anti-dilutive.

9. Non-Cash Share-Based Employe

9. Non-Cash Share-Based Employee Compensation	6 Months Ended
	Jun. 30, 2020
Compensation Related Costs [Abstract]
9. 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 $30 and $60 for the three and six months ended June 30, 2020, respectively, compared with $37 and $68, respectively, for the same periods last year. The Company considers its non-cash share-based employee compensation expenses as a component of cost of products and selling, general and administrative expenses. There was no non-cash share-based employee compensation expense capitalized as part of capital expenditures or inventory for the periods presented. The Company uses the Black-Scholes-Merton option valuation model to calculate the fair value of stock option grants under this plan. The non-cash share-based employee compensation expense recorded in the three and six months ended June 30, 2020 was calculated using certain assumptions. Such assumptions are described more comprehensively in Note 10 (Share-Based Employee Compensation) of the Notes to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. A summary of activity under the Company’s stock option plans during the six months ended June 30, 2020 is presented below: As of January 1, 2020 Stock Options Wgt. Avg. Exercise Price ($) Per Share Wgt. Avg. Remaining Contractual Life (Years) Wgt. Avg. Grant Date Fair Value ($) Per Share Aggregate Intrinsic Value ($) Outstanding 569,500 4.16 6.82 1.75 24,000 Vested 214,800 4.12 4.20 1.95 24,000 Nonvested 354,700 4.18 8.40 1.63 — Period activity Issued 110,000 3.24 — 1.27 — Exercised — — — — — Forfeited 103,600 4.12 — 1.71 — Expired 65,000 4.07 — 2.88 — As of June 30, 2020 Outstanding 510,900 3.98 7.65 1.51 45,500 Vested 190,300 4.21 5.95 1.54 29,000 Nonvested 320,600 3.85 8.67 1.50 16,500 Restricted Stock Units On September 6, 2019, the Company granted to each non-employee director restricted stock units with a grant-date fair value of $40 per award (resulting in total aggregate grant-date fair value of $280), 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 shareholders, 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 April 24, 2020, upon the resignation of former director Ryan Turner, the Company accelerated the vesting of Mr. Turner’s unvested restricted stock units granted September 6, 2019 and issued 10,389 shares of common stock. 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 shareholders, 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 April 24, 2020, upon the resignation of Mr. Turner, the Company accelerated the vesting of Mr. Turner’s unvested restricted stock units granted September 6, 2018 and issued 4,050 shares of common stock. 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. The Company recorded non-cash restricted stock unit compensation expense of $68 and $89 for the three and six months ended June 30, 2020, respectively, compared with $32 and $74, respectively, for the same periods last year.

10. Commitments and Contingenci

10. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
10. Commitments and Contingencies	From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of its business. On a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. Where it is probable that the Company will incur a loss and the amount of the loss can be reasonably estimated, it records a liability in its consolidated financial statements. These legal accruals may be increased or decreased to reflect any relevant developments on a quarterly basis. 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, 2020. On June 24, 2020, the Company entered into a Financial and Consulting Services Agreement (the “Agreement”) with Itasca Financial LLC (“Itasca”), pursuant to which Itasca agreed to advise the Company on aspects of its strategic direction. In exchange for Itasca’s services, the Company agreed to pay Itasca a retainer fee of $50,000, payable in two installments of $25,000, and a monthly fee of $20,000. The Agreement may not be terminated for a period of two months from June 24, 2020, after which time it may be terminated by either party at any time with prior written notice of at least 30 calendar days. As of the date of this report, the Company has paid $45,000 to Itasca and the parties have agreed to suspend the Agreement indefinitely. Upon termination of the Agreement by either party, the Company has agreed to pay Itasca a termination fee of $100,000, which can be payable in a combination of cash and stock at the Company’s discretion, and if any such fee is paid in stock, then the Company has agreed to grant Itasca unlimited piggyback registration rights for such stock. The Agreement also includes expense reimbursement provisions and indemnification provisions in favor of Itasca and its affiliates. This description of the Agreement is a summary only and is qualified by reference to full text of Agreement, which is filed as an exhibit to this report. Fundamental Global Investors, LLC, with its affiliates (collectively, “Fundamental Global”), is the largest stockholder of the Company. D. Kyle Cerminara, the Chief Executive Officer, Co-Founder and Partner of Fundamental Global Investors, LLC, and Lewis M. Johnson, the President, Co-Founder and Partner of Fundamental Global Investors, LLC, are both members of the Company’s Board of Directors, and John W. Struble, Chairman of the Board of Directors, serves as a consultant to Fundamental Global Management, LLC, an affiliate of Fundamental Global Investors, LLC. Fundamental Global is the controlling stockholder of PIH, and Larry G. Swets, Jr. serves as Interim Chief Executive Officer and principal executive officer of PIH and as a member of PIH’s Board of Directors. In addition, Mr. Swets founded and serves as the managing member of Itasca, which provides services to the Company, as described above, as well as to other companies affiliated with Fundamental Global. Purchase Commitments As of June 30, 2020, the Company had purchase commitments for inventory totaling approximately $6,636. Significant Customers Sales to United States government agencies represented approximately $4,268 (43.0%) and $10,845 (52.1%) of the Company’s net total sales for the three and six months ended June 30, 2020, respectively, compared with approximately $4,021 (30.2%) and $9,421 (45.0%), respectively, for the same periods last year. Accounts receivable from agencies of the United States government were $589 as of June 30, 2020, compared with approximately $690 at the same date last year.

11. Debt

11. Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
11. Debt	On January 30, 2020, 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. (“JPMC”). The Credit Agreement provides for a revolving line of credit of up to $5,000, with availability under the line of credit subject to a borrowing base calculated as a percentage of accounts receivable and inventory. The line of credit will expire on January 31, 2021. Proceeds of borrowings under the Credit Agreement may be used for general corporate purposes. 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. 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%. The line of credit 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. 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. The Credit Agreement contains one financial covenant requiring BK Technologies, Inc. to maintain a tangible net worth of at least $20,000 at any fiscal quarter end. The Credit Agreement provides for customary events of default, including: (1) failure to pay principal, interest or fees under the Credit Agreement when due and payable; (2) failure to comply with other covenants and agreements contained in the Credit Agreement and the other documents executed in connection therewith; (3) the making of false or inaccurate representations and warranties; (4) defaults under other agreements with JPMC or under other debt or other obligations of BK Technologies, Inc.; (5) money judgments and material adverse changes; (6) a change in control or ceasing to operate business in the ordinary course; and (7) certain events of bankruptcy or insolvency. Upon the occurrence of an event of default, JPMC may declare the entire unpaid balance immediately due and payable and/or exercise any and all remedial and other rights under the Credit Agreement. BK Technologies, Inc. was in compliance with all covenants under the Credit Agreement as of June 30, 2020 and the date of filing this report. As of June 30, 2020 and the date of filing this report, there were no borrowings outstanding under the Credit Agreement. On September 25, 2019, BK Technologies, Inc., a wholly-owned subsidiary of BK Technologies Corporation, 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 is collateralized by the equipment purchased using the proceeds. 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%.

12. Leases

12. Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
12. Leases	The Company adopted ASU No. 2016-02, “Leases” (Topic 842) on January 1, 2019 and applied the modified retrospective approach to adoption whereby the standard is applied only to the current and future periods. The Company leases manufacturing and office facilities and equipment under operating leases and determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of its leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company has lease agreements with lease and non-lease components, which are accounted for separately. The Company leases approximately 54,000 square feet (not in thousands) of industrial space in West Melbourne, Florida, under a non-cancellable operating lease. The lease has the expiration date of June 30, 2027. Annual rental, maintenance and tax expenses for the facility are approximately $491. The Company also leases 8,100 square feet (not in thousands) of office space in Lawrence, Kansas, to accommodate a portion of the Company’s engineering team. In November 2019, this lease was amended to extend the lease term until December 31, 2021. Annual rental, maintenance and tax expenses for the facility are approximately $121. Lease costs consist of the following: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost $ 143 $ 134 $ 287 $ 268 Short-term lease cost — 6 2 10 Variable lease cost 32 31 63 63 Total lease cost $ 175 $ 171 $ 352 $ 341 Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows (fixed payments) $ 122 $ 118 $ 243 $ 236 Operating cash flows (liability reduction) 83 78 164 156 ROU assets obtained in exchange for lease obligations: Operating leases 26 — 35 2,840 Other information related to operating leases was as follows: June 30, 2020 Weighted average remaining lease term (in years) 6.60 Weighted average discount rate 5.50 % Maturity of lease liabilities as of June 30, 2020 were as follows: June 30, 2020 Remaining six months of 2020 $ 281 2021 560 2022 447 2023 456 2024 464 Thereafter 1,193 Total payments 3,401 Less: imputed interest 558 Total liability $ 2,843 In February 2020, the Company entered into a lease for 6,857 square feet (not in thousands) of office space at Sawgrass Technology Park, 1619 NW 136th Avenue in Sunrise, Florida, for a period of 64 months commencing July 1, 2020. Annual rental, maintenance and tax expenses for the facility will be approximately $196 for the first year, increasing by approximately 3% for each subsequent twelve-month period. The Company recorded the ROU asset and related lease liability for this lease upon its commencement.

1. Condensed Consolidated Fin_2

1. Condensed Consolidated Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019 have been prepared by BK Technologies Corporation (the “Company” or “we”), 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. For the purpose of this report, references to “we” or the “Company” or its management or business at any period prior to the holding company reorganization (March 28, 2019) refer to those of BK Technologies, Inc. as the predecessor company and its subsidiaries and thereafter to those of BK Technologies Corporation and its subsidiaries, except as otherwise specified or to the extent the context otherwise indicates. In the opinion of management, all adjustments, which include normal, recurring adjustments, necessary for a fair presentation have been made. All intercompany transactions and balances have been eliminated in consolidation. The condensed consolidated balance sheet at December 31, 2019 has been derived from the Company’s audited consolidated financial statements at that date. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. 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, 2019, as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the operating results for a full year. The Company periodically reviews its revenue recognition procedures to assure that such procedures are in accordance with GAAP. Surcharges collected on certain sales to government customers and remitted to governmental agencies are not included in revenues or in costs and expenses.
Principles of Consolidation	The Company consolidates entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a variable interest entity (“VIE”) or a voting interest entity. VIEs are entities in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities independently, or (ii) the at-risk equity holders do not have the normal characteristics of a controlling financial interest. A controlling financial interest in a VIE is present when an enterprise has one or more variable interests that have both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The enterprise with a controlling financial interest is the primary beneficiary and consolidates the VIE. Voting interest entities lack one or more of the characteristics of a VIE. The usual condition for a controlling financial interest is ownership of a majority voting interest for a corporation or a majority of kick-out or participating rights for a limited partnership. When the Company does not have a controlling financial interest in an entity but exerts significant influence over the entity’s operating and financial policies (generally defined as owning a voting or economic interest of between 20% to 50%), the Company’s investment is accounted for under the equity method of accounting. If the Company does not have a controlling financial interest in, or exert significant influence over, an entity, the Company accounts for its investment at fair value, if the fair value option was elected, or at cost. The Company has an investment in 1347 Property Insurance Holdings, Inc., made through FGI 1347 Holdings, LP, a consolidated VIE.
Fair Value	The Company’s financial instruments consist of cash and cash equivalents, trade accounts receivable, investment in securities, accounts payable, accrued expenses, notes payable, and other liabilities. As of June 30, 2020 and December 31, 2019, 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.
Recently Adopted Accounting Pronouncements	In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases,” which amended leasing guidance by requiring companies to recognize a right-of-use (“ROU”) asset and a lease liability for all operating and capital (finance) leases with lease terms greater than twelve months. The lease liability is equal to the present value of lease payments. The lease asset is based on the lease liability, subject to adjustment, such as for initial direct costs. For income statement purposes, leases continue to be classified as operating or capital (finance), with lease expense in both cases calculated substantially the same as under the prior leasing guidance. The updated guidance became effective for interim and annual periods beginning after December 15, 2018. The Company adopted the new guidance on January 1, 2019. Adoption resulted in the recognition of ROU assets and lease liabilities on the condensed consolidated financial statements. Refer to Note 12 (Leases) for further details on leases. In Recent Accounting Pronouncements 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.

4. Inventories, net (Tables)

4. Inventories, net (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Components of inventory	June 30, 2020 December 31, 2019 Finished goods $ 2,781 $ 3,864 Work in process 3,242 6,122 Raw materials 3,504 3,527 $ 9,527 $ 13,513

7. Stockholders' Equity (Tables

7. Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Stockholders' equity:
Changes in consolidated stockholders' equity	Common Stock Shares Common Stock Amount Additional Paid-In Capital Accumulated Deficit Treasury Stock Total Balance at December 31, 2018 13,882,937 $ 8,330 $ 25,867 $ (2,393 ) $ (4,092 ) $ 27,712 Stock options exercised and issued 1,000 — 2 — — 2 Share-based compensation expense-stock options — — 31 — — 31 Share-based compensation expense-restricted stock units — — 41 — — 41 Common stock dividends ($0.02 per share) — — — (254 ) — (254 ) Net loss — — — (1,318 ) — (1,318 ) Repurchase of common stock — — — — (337 ) (337 ) Balance at March 31, 2019 13,883,937 8,330 25,941 (3,965 ) (4,429 ) 25,877 Common stock issued under restricted stock units 38,353 23 (23 ) — — — Share-based compensation expense-stock options — — 37 — — 37 Share-based compensation expense-restricted stock units — — 33 — — 33 Common stock dividends ($0.02 per share) — — — (255 ) — (255 ) Net loss — — — (247 ) — (247 ) Repurchase of common stock — — — — (213 ) (213 ) Balance at June 30, 2019 13,922,290 $ 8,353 $ 25,988 $ (4,467 ) $ (4,642 ) $ 25,232 Common Stock Shares Common Stock Amount Additional Paid-In Capital Accumulated Deficit Treasury Stock Total Balance at December 31, 2019 13,929,381 $ 8,357 $ 26,095 $ (6,043 ) $ (5,133 ) $ 23,276 Common stock issued under restricted stock units — — — — — — Share-based compensation expense-stock options — — 30 — — 30 Share-based compensation expense-restricted stock units — — 21 — — 21 Common stock dividends ($0.02 per share) — — — (250 ) — (250 ) Net loss — — — (1,192 ) — (1,192 ) Repurchase of common stock — — — — (243 ) (243 ) Balance at March 31, 2020 13,929,381 8,357 26,146 (7,485 ) (5,376 ) 21,642 Common stock issued under restricted stock units 14,439 9 (9 ) — — — Share-based compensation expense-stock options — — 30 — — 30 Share-based compensation expense-restricted stock units — — 68 — — 68 Common stock dividends ($0.02 per share) — — — (252 ) — (252 ) Net loss — — — (302 ) — (302 ) Repurchase of common stock — — — — (26 ) (26 ) Balance at June 30, 2020 13,943,820 $ 8,366 $ 26,235 $ (8,039 ) $ (5,402 ) $ 21,160

8. Loss per Share (Tables)

8. Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Computation of basic and diluted loss per share	Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Net loss (for basic and diluted loss per share) $ (302 ) $ (247 ) $ (1,494 ) $ (1,565 ) Denominator for basic loss per share weighted average shares 12,495,707 12,720,112 12,525,407 12,740,798 Effect of dilutive securities: Options and restricted stock units — — — — Denominator for diluted loss per share weighted average shares 12,495,707 12,720,112 12,525,407 12,740,798 Basic loss per share $ (0.02 ) $ (0.02 ) $ (0.12 ) $ (0.12 ) Diluted loss per share $ (0.02 ) $ (0.02 ) $ (0.12 ) $ (0.12 )

9. Non-Cash Share-Based Emplo_2

9. Non-Cash Share-Based Employee Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Compensation Related Costs [Abstract]
Summary of stock option activity	As of January 1, 2020 Stock Options Wgt. Avg. Exercise Price ($) Per Share Wgt. Avg. Remaining Contractual Life (Years) Wgt. Avg. Grant Date Fair Value ($) Per Share Aggregate Intrinsic Value ($) Outstanding 569,500 4.16 6.82 1.75 24,000 Vested 214,800 4.12 4.20 1.95 24,000 Nonvested 354,700 4.18 8.40 1.63 — Period activity Issued 110,000 3.24 — 1.27 — Exercised — — — — — Forfeited 103,600 4.12 — 1.71 — Expired 65,000 4.07 — 2.88 — As of June 30, 2020 Outstanding 510,900 3.98 7.65 1.51 45,500 Vested 190,300 4.21 5.95 1.54 29,000 Nonvested 320,600 3.85 8.67 1.50 16,500

12. Leases (Tables)

12. Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Lease cost	Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost $ 143 $ 134 $ 287 $ 268 Short-term lease cost — 6 2 10 Variable lease cost 32 31 63 63 Total lease cost $ 175 $ 171 $ 352 $ 341
Supplemental cash flow information related to leases	Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows (fixed payments) $ 122 $ 118 $ 243 $ 236 Operating cash flows (liability reduction) 83 78 164 156 ROU assets obtained in exchange for lease obligations: Operating leases 26 — 35 2,840
Other information related to operating leases	June 30, 2020 Weighted average remaining lease term (in years) 6.60 Weighted average discount rate 5.50 %
Maturity of lease liabilities	June 30, 2020 Remaining six months of 2020 $ 281 2021 560 2022 447 2023 456 2024 464 Thereafter 1,193 Total payments 3,401 Less: imputed interest 558 Total liability $ 2,843

3. Allowance for Doubtful Acc_2

3. Allowance for Doubtful Accounts (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Allowance For Doubtful Accounts
Allowance for doubtful accounts on trade receivables	$ 50	$ 50
Accounts receivable, gross	$ 3,633	$ 4,014

4. Inventories, net (Details)

4. Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 2,781	$ 3,864
Work in process	3,242	6,122
Raw materials	3,504	3,527
Total inventory	$ 9,527	$ 13,513

4. Inventories, net (Details Na

4. Inventories, net (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Reserves for slow-moving, excess, or obsolete inventory	$ 466	$ 823

5. Income Taxes (Details Narrat

5. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ (28)	$ (154)	$ (28)	$ 201
Net deferred tax assets	$ 4,344		$ 4,344

7. Stockholders' Equity (Detail

7. Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Common Stock
Beginning balance, shares	13,929,381	13,929,381	13,883,937	13,882,937	13,929,381	13,882,937
Beginning balance, amount	$ 8,357	$ 8,357	$ 8,330	$ 8,330	$ 8,357	$ 8,330
Common stock issued under restricted stock units, shares	14,439		38,353
Common stock issued under restricted stock units, amount	$ 9		$ 23
Stock options exercised and issued, shares				1,000
Ending balance, shares	13,943,820	13,929,381	13,922,290	13,883,937	13,943,820	13,922,290
Ending balance, amount	$ 8,366	$ 8,357	$ 8,353	$ 8,330	$ 8,366	$ 8,353
Additional Paid-In Capital
Beginning balance, amount	26,095	26,095	25,941	25,867	26,095	25,867
Common stock issued under restricted stock units, amount	(9)		(23)
Stock options exercised and issued, amount				2
Share-based compensation expense-stock options	30	30	37	31
Share-based compensation expense-restricted stock units	68	21	33	41
Ending balance, amount	26,235	26,095	25,988	25,941	26,235	25,988
Accumulated Deficit
Beginning balance, amount	(6,043)	(6,043)	(3,965)	(2,393)	(6,043)	(2,393)
Dividends declared ($0.02 per share)	(252)	(250)	(255)	(254)
Net loss	(302)	(1,192)	(247)	(1,318)
Ending balance, amount	(8,039)	(6,043)	(4,467)	(3,965)	(8,039)	(4,467)
Treasury Stock
Beginning balance, amount	(5,133)	(5,133)	(4,429)	(4,092)	(5,133)	(4,092)
Repurchase of common stock	(26)	(243)	(213)	(337)
Ending balance, amount	(5,402)	(5,133)	(4,642)	(4,429)	(5,402)	(4,642)
Beginning balance, amount	23,276	23,276	25,877	27,712	23,276	27,712
Common stock issued under restricted stock units, amount	0		0
Stock options exercised and issued, amount				2
Share-based compensation expense-stock options	30	30	37	31
Share-based compensation expense-restricted stock units	68	21	33	41	89	74
Dividends declared ($0.02 per share)	(252)	(250)	(255)	(254)
Net loss	(302)	(1,192)	(247)	(1,318)	(1,494)	(1,565)
Repurchase of common stock	(26)	(243)	(213)	(337)	(269)	(550)
Ending balance, amount	$ 21,160	$ 23,276	$ 25,232	$ 25,877	$ 21,160	$ 25,232

8. Loss per Share (Details)

8. Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net loss (numerator for basic and diluted income per share)	$ (302)	$ (1,192)	$ (247)	$ (1,318)	$ (1,494)	$ (1,565)
Denominator:
Denominator for basic loss per share weighted average shares	12,495,707		12,720,112		12,525,407	12,740,798
Effect of dilutive securities:
Options and restricted stock units	0		0		0	0
Denominator
Denominator for diluted loss per share weighted average shares	12,495,707		12,720,112		12,525,407	12,740,798
Basic loss per share	$ (.02)		$ (.02)		$ (.12)	$ (.12)
Diluted loss per share	$ (.02)		$ (.02)		$ (.12)	$ (.12)

8. Loss per Share (Details Narr

8. Loss per Share (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Stock Options
Antidilutive securities	510,900	564,500
Restricted Stock Units
Antidilutive securities	0	116,667

9. Non-Cash Share-Based Emplo_3

9. Non-Cash Share-Based Employee Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Compensation Related Costs [Abstract]
Outstanding stock options	569,500
Vested stock options	214,800
Nonvested stock options	354,700
Issued stock options	110,000
Exercised stock options	0
Forfeited stock options	103,600
Expired stock options	65,000
Outstanding stock options	510,900	569,500
Vested stock options	190,300	214,800
Nonvested stock options	320,600	354,700
Outstanding wgt. avg. exercise price	$ 4.16
Vested wgt. avg. exercise price	4.12
Nonvested wgt. avg. exercise price	4.18
Issued wgt. avg. exercise price	3.24
Exercised wgt. avg. exercise price	0
Forfeited wgt. avg. exercise price	4.12
Expired wgt. avg. exercise price	4.07
Outstanding wgt. avg. exercise price	3.98	$ 4.16
Vested wgt. avg. exercise price	4.21	4.12
Nonvested wgt. avg. exercise price	$ 3.85	$ 4.18
Outstanding contractual life	7 years 7 months 24 days	6 years 9 months 25 days
Vested contractual life	5 years 11 months 12 days	4 years 2 months 12 days
Nonvested contractual life	8 years 8 months 1 day	8 years 4 months 24 days
Outstanding grant date fair value	$ 1.75
Vested grant date fair value	1.95
Nonvested grant date fair value	1.63
Issued grant date fair value	1.27
Exercised grant date fair value	0
Forfeited grant date fair value	1.71
Expired grant date fair value	2.88
Outstanding grant date fair value	1.51
Vested grant date fair value	1.54
Nonvested grant date fair value	1.50
Issued aggregate intrinsic value	$ 0
Exercised aggregate intrinsic value	$ 0
Forfeited aggregate intrinsic value	$ 0
Expired aggregate intrinsic value	$ 0
Outstanding aggregate intrinsic value	$ 45,500	$ 24,000
Vested aggregate intrinsic value	29,000	24,000
Nonvested aggregate intrinsic value	$ 16,500	$ 0

9. Non-Cash Share-Based Emplo_4

9. Non-Cash Share-Based Employee Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Compensation Related Costs [Abstract]
Restricted stock unit compensation expense	$ 68	$ 32	$ 89	$ 74

10. Commitments and Contingen_2

10. Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Purchase commitments	$ 6,636		$ 6,636
Sales to United States Government	43.00%	30.20%	52.10%	45.00%
Accounts receivable from US government	$ 589	$ 690	$ 589	$ 690

12. Leases (Details)

12. Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 143	$ 134	$ 287	$ 268
Short-term lease cost	0	6	2	10
Variable lease cost	32	31	63	63
Total lease cost	$ 175	$ 171	$ 352	$ 341

12. Leases (Details 1)

12. Leases (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (fixed payments)	$ 122	$ 118	$ 243	$ 236
Operating cash flows (liability reduction)	83	78	164	156
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 26	$ 0	$ 35	$ 2,840

12. Leases (Details 2)

12. Leases (Details 2)	Jun. 30, 2020
Leases [Abstract]
Weighted average remaining lease term (in years)	6 years 7 months 6 days
Weighted average discount rate	5.50%

12. Leases (Details 3)

12. Leases (Details 3) $ in Thousands	Jun. 30, 2020USD ($)
Leases [Abstract]
Remaining six months of 2020	$ 281
2021	560
2022	447
2023	456
2024	464
Thereafter	1,193
Total payments	3,401
Less: imputed interest	558
Total liability	$ 2,843