INCOME TAXES

The Company's income tax expense (benefit) for the fiscal years are comprised of the following:



	2014			2013
Current Federal income taxes	$	1,401,505		$	61,192
Current state income taxes	101,505			94,261
Deferred income taxes	(129,448		)	(7,618,413		)
Total income tax expense (benefit)	$	1,373,562		$	(7,462,960	)

Significant components of the Company’s current and non-current deferred income taxes are as follows:



	December 28, 2014			December 29, 2013
Current deferred tax assets (liabilities)
Accrued payroll	$	—		$	(17,549	)
Prepaid expenses	(222,029		)	—
Allowance for doubtful accounts	255,436			144,583
Workers’ compensation	301,422			182,773
Net current deferred tax asset	$	334,829		$	309,807

Non-current deferred tax assets (liabilities)
Fixed assets	$	(48,773	)	$	(67,129	)
Goodwill and intangible assets	6,827,718			6,353,840
Accrued interest – related party	(23,549		)	17,556
Contingent consideration	342,734			950,897
Stock-based compensation	261,460			—
Net noncurrent deferred tax asset	$	7,359,590		$	7,255,164

Total deferred tax asset	$	7,694,419		$	7,564,971

The Company utilized all of its net operating loss carry forwards in 2014.

The Company believes that it is more likely than not that all deferred tax assets will be realized and thus, believes that a valuation allowance is not required as of December 28, 2014 or December 29, 2013.

The income tax provision, reconciled to the tax computed at the statutory Federal rate, is as follows:



	2014		2013
Tax expense at Federal statutory rate of 34%	$	321,197	$	284,005
State income taxes, net of federal benefit	133,516		67,076
Meals and entertainment, and other	84,411		136,293
Extinguishment of debt	191,314		—
Equity related items	531,587		—
Partnership income not taxed	—		(468,199		)
Conversion from nontaxable partnership to corporation	—		(7,476,869		)
Change in initial deferred assets	110,169		—
Other	1,368		(5,266		)
Income tax expense (benefit)	$	1,373,562	$	(7,462,960	)