Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 771

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 771
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 Operating loss carryforwards  $—  $1,857 
 R&D Tax Credits   300   2,779 
 Section 263A costs   47   56 
     Additional K-1 temporary adjustment   1   — 
 Capitalized research and development expenses   3,389   1,029 
 Interest   —   34 
 Net ROU asset and lease liability   42   53 
 Unrealized loss   —   628 
    Capital loss carryforward   802   — 
         
 Asset reserves:         
 Bad debts   13   12 
 Inventory allowance   454   430 
    State depreciation   117   — 
         
 Accrued expenses:         
 Non-qualified stock options   463   343 
 Compensation   122   107 
 Deferred warranty revenue   2,638   1,934 
     Deferred tax assets   8,388   9,262 
         
 Less valuation allowance   (802)  (4,398)
 Total deferred tax assets   7,586   4,864 
         
 Deferred tax liabilities:         
 Depreciation   (798)  (748)
 Total deferred tax liabilities   (798)  (748)
         
 Net deferred tax assets  $6,788  $4,116 

              As of  December 31, 2024, the Company had deferred tax assets of approximately $7,586 offset by deferred tax liabilities of $798. This asset is primarily composed of capitalization of research and development expenses and deferred revenue. The liability is composed of the effect of differences in amortization and depreciation utilized for tax purposes. 
   .
   During 2024, the Company utilized $7,915 of federal NOLs and during 2023 the Company utilized $4,911 of federal NOLs. The deferred tax asset amounts are based upon management’s conclusions regarding, among other considerations, the Company’s current and anticipated customer base, contracts, and product introductions, certain tax planning strategies, and management’s estimates of future earnings based on information currently available, as well as recent operating results during 2024, 2023, and 2022. GAAP requires that all positive and negative evidence be analyzed to determine if, based on the