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8-K - CURRENT REPORT - BK Technologies Corp | bkti_8k.htm |
Exhibit
99.1
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BK Technologies Announces FY 2020 Revenue of $44.1 Million up 10%
Year-Over-Year;
Q4 Revenue of $10.6 Million Up 43% Year-Over-Year; Operating Income
of $0.9 Million
Improves by $3.3 Million Year-over-Year
WEST MELBOURNE, FL / ACCESSWIRE / March 3, 2021
/ BK Technologies Corporation (NYSE
American: BKTI) today announced financial and operating results for
the fourth quarter and year ended December 31, 2020. The Company
will host a conference call tomorrow, March 4, 2021 at 9:00AM
eastern time.
Tim Vitou, BK's President, commented, "We had a strong fourth
quarter and full year 2020 performance. Revenue grew 10% to $44.1
million for FY 2020. On a quarterly basis, Q4 revenue grew 43% and
we generated an operating profit of $0.9 million. Operating margins
were 8.4%, a substantial improvement, compared with a 32.4% loss
for last year’s fourth quarter. Our gross profit margins and
key metrics continued to benefit from revenue growth and new
products, combined with our restructuring and the related expense
reductions.”
Mr. Vitou continued, “We also drove strong performance in
liquidity and cash flow. Lower inventory levels positively impacted
our cash flow, which was $2.2 million for the year. Inventory was
down by $4.1 million at the end of 2020, compared to the end of
2019. We expect that trend of effective inventory management to
continue improving as the new BKR product line becomes a larger
component of our overall business. Finally, we closed the current
year with $13.3 million in cash and receivables, compared to $8.6
million at the end of 2019.”
Mr. Vitou concluded, " Looking ahead at 2021, we are focused on
growing revenue and profits through increased sales of existing
products, having a full year of sales of our new BKR 5000 that was
introduced in October, and generating revenue from our multi-band
BKR 9000, expected to launch in mid-year, which expands our total
addressable market and improves our gross profit margin
profile.”
Q4 2020 and Recent Operational Highlights
Received an order totaling approximately $1.1 million from an
agency of the state of Tennessee for BK's new BKR 5000 Digital P-25
portable communications technology.
Received an order totaling approximately $1.5 million dollars from
a public safety agency of the U.S. Department of the Interior
(DoI). The order is for BK's Digital P-25 KNG2-Series portable and
KNG Series mobile communications technology, with related
accessories.
Announced the market introduction of the BKR 5000 portable
communication technology: the first model in the new BKR Series of
APCO Project 25 products and solutions.
Fourth Quarter 2020 Financial Highlights
Revenue increased to approximately $10.6 million, compared with
approximately $7.4 million for the fourth quarter last
year.
Operating income increased to approximately $0.9 million compared
with an operating loss of approximately $2.4 million for the fourth
quarter last year.
Net income increased to approximately $1.1 million, or $0.08 per
basic and diluted share, compared with a net loss of approximately
$(1.3) million, or $(0.10) per basic and diluted share, for the
fourth quarter last year.
Full Year 2020 Highlights
Revenue increased to approximately $44.1 million, compared with
approximately $40.1 million last year.
Operating income for the year increased to approximately $1.0
million, compared with an operating loss of approximately $4.4
million last year.
Net income for the year ended December 31, 2020 increased to
approximately $248,000, or $0.02 per basic and diluted share,
compared with a net loss of approximately $2.6 million, or $0.21
per basic and diluted share, last year.
Working capital totaled approximately $15.1 million, of which $13.3
million was comprised of cash, cash equivalents and trade
receivables. This compares with working capital totaling
approximately $14.5 million at 2019 year-end, which included $8.6
million of cash, cash equivalents and trade receivables. During
2020, we paid four quarterly dividends of $0.02 per share,
utilizing cash of approximately $1.0 million.
Conference Call and Webcast
The Company will host a conference call and webcast for investors
at 9:00 a.m. Eastern Time, on Thursday, March 4, 2021. Shareholders
and other interested parties may participate in the conference call
by dialing 888-506-0062; entry code 712978 (international
participants dial 973-528-0011; entry code 712978) and asking to be
connected to the “BK Technologies Corporation Conference
Call” a few minutes before 9:00 a.m. Eastern Time on March 4,
2021. The call will also be webcast at http://www.bktechnologies.com.
An online archive of the webcast will be available on the
Company’s website for 30 days following the call at
http://www.bktechnologies.com.
A replay of the conference call will be available one hour after
the completion of the call until March 11, 2021 by dialing
877-481-4010 PIN# 40001 (international participants dial
919-882-2331 PIN# 40001).
About BK Technologies
BK Technologies Corporation is an American holding company deeply
rooted in the public safety communications industry, with its
operating subsidiary manufacturing high-specification,
American-made communications equipment of unsurpassed reliability
and value for use by public safety professionals and government
agencies. BK Technologies is honored to serve our public safety
heroes with reliable equipment when every moment counts. The
Company's common stock trades on the NYSE American market under the
symbol "BKTI". Maintaining its headquarters in West Melbourne,
Florida, BK Technologies can be contacted through its web site at
www.bktechnologies.com or directly at 1-800-821-2900.
Forward-Looking Statements
This press release contains certain forward-looking statements that
are made pursuant to the "Safe Harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements concern the Company's operations, economic performance
and financial condition and are based largely on the Company's
beliefs and expectations. These statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the Company, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors and risks, some of which
have been, and may further be, exacerbated by the COVID-19
pandemic, include, among others, the following: changes or advances
in technology; the success of our product lines; successful
introduction of new products and technologies, including our
ability to successfully develop and sell our anticipated new
multiband product and other related products in the planned new BKR
Series product line; competition; general economic and business
conditions, including federal, state and local government budget
deficits and spending limitations, any impact from a prolonged
shutdown of the U.S. Government, and the ongoing effects of the
COVID-19 pandemic; the availability, terms and deployment of
capital; reliance on contract manufacturers and suppliers; risks
associated with fixed-price contracts; heavy reliance on sales to
agencies of the U.S. Government and our ability to comply with the
requirements of contracts, laws and regulations related to such
sales; allocations by government agencies among multiple approved
suppliers under existing agreements; our ability to comply with
U.S. tax laws and utilize deferred tax assets; our ability to
attract and retain executive officers, skilled workers and key
personnel; our ability to manage our growth; our ability to
identify potential candidates for, and consummate, acquisition,
disposition or investment transactions, and risks incumbent to
being a noncontrolling interest stockholder in a corporation; the
impact of the COVID-19 pandemic on the companies in which we hold
investments; impact of our capital allocation strategy; risks
related to maintaining our brand and reputation; impact of
government regulation; rising health care costs; our business with
manufacturers located in other countries, including changes in the
U.S. Government and foreign governments' trade and tariff policies,
as well as any further impact resulting from the COVID-19 pandemic;
our inventory and debt levels; protection of our intellectual
property rights; fluctuation in our operating results and stock
price; acts of war or terrorism, natural disasters and other
catastrophic events, such as the COVID-19 pandemic; any
infringement claims; data security breaches, cyber-attacks and
other factors impacting our technology systems; availability of
adequate insurance coverage; maintenance of our NYSE American
listing; risks related to being a holding company; and the effect
on our stock price and ability to raise equity capital of future
sales of shares of our common stock. Certain of these factors and
risks, as well as other risks and uncertainties, are stated in more
detail in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2020, its Quarterly Report on Form 10-Q for
the quarters ended March 31, 2020, June 30, 2020, September 30,
2020 and in the Company's other filings with the SEC. These
forward-looking statements are made as of the date of this press
release, and the Company assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
Company Contact:
Hayden IR
James Carbonara
james@haydenir.com
(646)-755-7412
# #
#
(Financial Tables to Follow)
BK TECHNOLOGIES CORPORATION
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Consolidated Statements of Operations
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(In Thousands, Except Per Share Data)
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Three
Months Ended
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Twelve
Months Ended
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(Unaudited)
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12/31/2020
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12/31/2019
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12/31/2020
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12/31/2019
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Sales,
net
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$10,553
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$7,357
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$44,139
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$40,100
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Expenses:
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Cost
of products
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5,892
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4,950
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26,055
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24,449
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Selling,
general and administrative expenses
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3,771
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4,789
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17,036
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20,036
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Total
expenses
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9,663
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9,739
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43,091
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44,485
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Operating
income (loss)
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890
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(2,382)
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1,048
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(4,385)
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Other income (expense):
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Net
interest (expense) income
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(5)
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16
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(8)
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150
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Gain
(loss) on investment in securities
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177
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530
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(620)
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716
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Other
(expense) income
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(25)
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(6)
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(169)
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(104)
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Total
other income (expense)
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147
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540
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(797)
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762
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Income
(loss) before income taxes
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1,037
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(1,842)
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251
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(3,623)
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Income
tax benefit (expense)
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27
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533
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(3)
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987
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Net
income (loss)
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$1,064
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$(1,309)
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$248
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$(2,636)
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Net
income (loss) per share - basic
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$0.08
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$(0.10)
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$0.02
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$(0.21)
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Net
income (loss) per share - diluted
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$0.08
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$(0.10)
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$0.02
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$(0.21)
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Weighted
average common shares outstanding-basic
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12,519
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12,645
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12,553
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12,705
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Weighted
average common shares outstanding- diluted
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12,533
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12,645
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12,561
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12,705
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BK TECHNOLOGIES CORPORATION
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Consolidated Balance Sheets
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(In thousands, except share data)
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December
31,
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December
31,
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2020
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2019
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ASSETS
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Current
assets:
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Cash
and cash equivalents
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$6,826
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$4,676
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Trade
accounts receivable, net
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6,466
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3,964
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Inventories,
net
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9,441
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13,513
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Prepaid
expenses and other current assets
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1,878
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1,733
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Total
current assets
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24,611
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23,886
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Property,
plant and equipment, net
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3,566
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3,964
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Right-of-use
(ROU) asset
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2,887
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2,885
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Investment
in securities
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2,014
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2,635
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Deferred
tax assets, net
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4,300
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4,373
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Other
assets
|
112
|
197
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Total
assets
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$37,490
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$37,940
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$5,119
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$5,310
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Accrued
compensation and related taxes
|
1,635
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1,271
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Accrued
warranty expense
|
791
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1,248
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Accrued
other expenses and other current liabilities
|
307
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479
|
Dividends
payable
|
250
|
252
|
Short-term
lease liability
|
525
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369
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Note
payable-current portion
|
82
|
78
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Deferred
revenue
|
757
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369
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Total
current liabilities
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9,466
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9,376
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Note
payable, net of current portion
|
247
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328
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Long-term
lease liability
|
2,702
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2,606
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Deferred
revenue
|
2,551
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2,354
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Total
liabilities
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14,966
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14,664
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Commitments
and contingencies
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Stockholders'
equity:
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Preferred
stock; $1.00 par value; 1,000,000 authorized
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shares;
none issued or outstanding
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-
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-
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Common
stock; $0.60 par value; 20,000,000 authorized shares;
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13,962,366
and 13,929,381 issued, and 12,511,966 and 12,596,923
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outstanding
shares at December 31, 2020 and 2019, respectively
|
8,377
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8,357
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Additional
paid-in capital
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26,346
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26,095
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Accumulated
deficit
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(6,797)
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(6,043)
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Treasury
Stock, at cost, 1,450,400 and 1,332,458 shares at
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December
31, 2020 and 2019, respectively
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(5,402)
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(5,133)
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Total
stockholders' equity
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22,524
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23,276
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Total
liabilities and stockholders' equity
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$37,490
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$37,940
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