Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 545

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 545
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 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 weight of available evidence, the Company is more likely 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