Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Operating activities
Net income	$ 13,536	$ 8,359
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for credit losses	59	122
Inventory allowance	890	367
Amortization of deferred finance and other assets	0	75
Deferred tax expense (benefit)	1,558	(2,672)
Depreciation and amortization	1,778	1,692
Loss on investment	0	91
(Gain) on sale of equipment	0	(2)
Changes in operating assets and liabilities:
Trade accounts receivable	69	431
Inventories	884	5,949
Prepaid expenses and other current assets	1,782	(2,989)
Other assets	(61)	12
Operating lease ROU assets and lease liabilities	(84)	(68)
Accounts payable	(1,546)	(3,495)
Accrued compensation and related taxes	134	987
Accrued warranty expense	(248)	286
Deferred revenue	323	1,309
Accrued other expenses and other current liabilities	(1,559)	1,531
Net cash provided by operating activities	19,441	12,765
Investing activities
Purchases of property, plant and equipment	(1,039)	(1,235)
Capitalized software and systems integration costs	(2,096)	(1,321)
Proceeds for disposal of property, plant and equipment	2	0
Net cash (used in) investing activities	(3,133)	(2,556)
Financing activities
Proceeds from exercise of common stock options	598	32
Repurchase of common stock	(1,193)	0
Proceeds from credit facility and notes payable	0	46,359
Repayment of credit facility and notes payable	0	(52,981)
Net cash (used in) financing activities	(595)	(6,590)
Net change in cash and cash equivalents	15,713	3,619
Cash and cash equivalents, beginning of year	7,075	3,456
Cash and cash equivalents, end of year	22,788	7,075
Supplemental disclosure
Interest paid	0	357
Non-cash financing activity
Common stock issued under restricted stock units	732	376
Cashless exercise of stock options, warrants and related conversion of net shares to stockholders’ equity	146	30
Share-Based Payment Arrangement, Option [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense-stock options	1,030	286
Share-based compensation expense-restricted stock units	1,030	286
Restricted Stock Units (RSUs) [Member]
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense-stock options	896	494
Share-based compensation expense-restricted stock units	$ 896	$ 494

BK Technologies Corp 10-K