Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 173

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 173
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 than not to realize the benefit of the deferred tax asset.
    
             Based on the analysis of all available evidence, both positive and negative, the Company has concluded that, except for the capital loss carryforward of approximately $802, it currently does have the ability to generate sufficient taxable income in the necessary period to utilize the benefits for the deferred tax assets. Accordingly, the Company recorded a decrease in the valuation allowance of $3,596 as of  December 31, 2024. 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 amounts related to the deferred tax assets recognized as of  December 31, 2024.
    
   Should the factors underlying management’s analysis change, future valuation adjustments to the Company’s net deferred tax asset  may be necessary. If future losses are incurred, it  may be necessary to record an additional valuation allowance related to the Company’s net deferred tax asset recorded as of  December 31, 2024. The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax asset  may be deemed appropriate in the future.  
    
   The Company performed a comprehensive review of its portfolio of uncertain tax positions in accordance with recognition standards established by GAAP. In this regard, an uncertain tax position represents the Company’s expected treatment of a tax position taken in a filed tax return or planned to be taken in a future tax return that has not been reflected in measuring income tax expense for financial reporting purposes. 

        F-
       17

        BK TECHNOLOGIES CORPORATION

        YEARS ENDED
        DECEMBER 31, 2024 AND
       2023

        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

        (in thousands, except share data and percentages)

   9. Income Taxes (Continued)
    
   A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows:

       2024  
 Balance at January 1   - 
 Additions based on tax positions related to the current year   154 
 Additions for tax positions of prior years   1,265 
 Balance at December 31,   1,419 

   As of  December 31, 2024, the Company recorded approximately $1,419 of unrecognized tax benefits