Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 757

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 757
---
 provided to the extent that impairment of tax assets is more likely than not. In determining whether a tax asset is realizable, the Company considers, among other things, estimates of future earnings based on information currently available, current and anticipated customers, contracts and new product introductions, as well as recent operating results and certain tax planning strategies. If the Company fails to achieve the future results anticipated in the calculation and valuation of net deferred tax assets, the Company  may be required to increase the valuation allowance related to its deferred tax assets in the future.   The Company recognizes a tax position in its financial statements when the tax position, based solely upon its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority.  Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard or are resolved through negotiation or litigation with taxing authority, or upon expiration of statutes of limitations.  Derecognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more than not threshold of being sustained.

   Concentration of Credit Risk   The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. At  December 31, 2024 and 2023, accounts receivable from governmental customers were approximately $600 and $1,445, respectively.  Generally, receivables are due within 30 days.  Credit losses relating to customers have been consistently within management’s expectations.  

         F-
         9

          BK TECHNOLOGIES CORPORATION

          YEARS ENDED
          DECEMBER 31, 2024 AND
         2023

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

          (in thousands, except share data and percentages)

        1. Summary of Significant Accounting Policies (Continued)   The Company primarily maintains cash balances at one financial institution.  Accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250.  From time to time, the Company has had cash in financial institutions in excess of federally insured limits.  As of  December 31, 2024, the Company had cash and cash equivalents in excess of FDIC limits of $6,825.

   Manufacturing and Raw Materials   The Company relies upon a limited number of manufacturers to produce its products and on a limited number of component suppliers. Some of these manufacturers and suppliers are in other countries. Approximately