Company: BKTI
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009464
Chunk: 426

Company: BK Technologies Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 8
Chunk 426
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 State taxes, net of federal benefit   9.42%  (1.34)%
 Permanent differences   0.84%  (0.87)%
 Change in valuation allowance   (48.79)%  (48.01)%
 Change in tax credits   (4.59)%  16.59%
 Uncertain tax position   19.25%  — 
 Impact from rate changes   (10.48)%  10.14%
 Effective income tax rate   (13.35)%  (2.49)%

        F-
       16

        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)
    
   The components of the deferred income tax assets (liabilities) are as follows:

       Years Ended December 31,  
   2024    2023  
 Deferred tax assets:         
 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