Company: BKTI
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026668
Chunk: 21

Company: BK Technologies Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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and $241, respectively.  The effective tax rate for the six months ended  June 30, 2024, was 9.32%. Relative to the federal and state statutory rate, the effective tax rate for the six months ended  June 30, 2024, was primarily impacted by the tax benefit for research and development tax credits for 2024 as compared to projected income before tax.

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   Note 5. Income Taxes (continued)
    
    Based on our analysis of all available evidence, both positive and negative, we have concluded that, except for the capital loss carryforward of approximately $0.8 million, we will have the ability to generate sufficient taxable income in the necessary period to utilize the entire benefit for the deferred tax assets. Accordingly, we recorded a decrease in the valuation allowance of approximately $1.4 million as of  June 30, 2025. We cannot presently estimate what, if any, changes to the valuation of our deferred tax assets  may be deemed appropriate in the future. If we incur future losses, it  may be necessary to record additional valuation allowance related to the deferred tax assets recognized as of  June 30, 2025.
    
   Should the factors underlying management’s analysis change, future valuation adjustments to the Company’s net deferred tax assets  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 assets recorded as of  June 30, 2025. The Company cannot presently estimate what, if any, changes to the valuation of its deferred tax assets  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.
    
   On  July 4, 2025, the U.S. government enacted The One Beautiful Bill Act of 2025, (known as the "One Big Beautiful Bill Act or "OBBBA") which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025.  In addition, the O