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Risks

• We depend on the success of our LMR product line
• We are engaged in a highly competitive industry
• Our industry is characterized by rapidly changing technology and our success is dependent on our ability to adapt to such changes
• We depend heavily on sales to the U.S. Government
• Our business is partially dependent on U.S. Government contracts, which are highly regulated and subject to terminations and oversight audits by U.S. Government representatives that could result in adverse findings and negatively impact our business
• Our business is subject to the economic, political, and other risks of manufacturing products in foreign countries
• We carry substantial quantities of inventory, and inaccurate estimates of necessary inventory could materially harm our business, financial condition and operating results
• We enter into fixed-price contracts that could subject us to losses in the event we fail to properly estimate our costs or hedge our risks associated with currency fluctuations
• Our investment strategy may not be successful, which could adversely impact our financial condition
• FG, with its affiliates, is our largest stockholder, and its interests may differ from the interests of our other stockholders
• If we are unable to maintain our brand and reputation, our business, results of operations and prospects could be materially harmed
• We face a number of risks related to challenging economic conditions
• The terms of the credit agreement with JPMorgan Chase Bank, N.A., contain restrictive covenants that may limit our operating flexibility
• We depend on a limited number of manufacturers and on a limited number of suppliers of components to produce our products, and the inability to obtain adequate and timely delivery of supplies and manufactured products could have a material adverse effect on us
• We may not be able to manage our growth
• Retention of our executive officers and key personnel is critical to our business
• We rely on a combination of contract, trademark and trade secret laws to protect our intellectual property rights, and failure to effectively utilize or successfully assert these rights could negatively impact us
• Rising health care costs may have a material adverse effect on us
• The insurance that we maintain may not fully cover all potential exposures
• Our stock price is vulnerable to significant fluctuations, including due to our fluctuating quarterly operating results
• Natural disasters, acts of war or terrorism and other catastrophic events beyond our control could have a material adverse effect on our operations and financial condition
• A security breach or other significant disruption of our information technology systems, or those of our distributors, manufacturers, suppliers and other partners, caused by cyber attack or other means, could have a negative impact on our operations, sales and results of operations
• The risk of noncompliance with U.S. and foreign laws and regulations applicable to us could materially adversely affect us
• We may not be able to maintain our NYSE American listing
• Any infringement claim against us could have a material adverse effect on our business, financial condition and results of operations
• We have deferred tax assets that we may not be able to utilize under certain circumstances
• We may be unable to obtain components and parts that are verified to be Democratic Republic of Congo (“DRC”) conflict-free, which could result in reputational damage
• As a holding company, BK Technologies Corporation is dependent on the operations and funds of its subsidiaries
• Future sales of shares of our common stock may negatively affect our stock price and impair our ability to raise equity capital