Note 7 - Income Taxes

9 Months Ended

Jun. 26, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7 INCOME TAXES

We recorded an income tax expense of $156,000 related to income before taxes of $352,000 for the three months ended June 26, 2022, and income tax expense of $2,363,000 related to income before taxes of $9,064,000 for the nine months ended June 26, 2022. We recorded an income tax expense of $1,366,000 related to income before taxes of $5,103,000 for the three months ended June 27, 2021, and income tax expense of $7,106,000 related to income before taxes of $26,638,000 for the nine months ended June 27, 2021. The effective income tax rates for the three and nine months ended June 26, 2022, were 44.3% and 26.1%, respectively. The effective income tax rate for the three and nine months ended June 27, 2021, were 26.8% and 26.7%, respectively.

The primary differences between these rates and the U.S. federal statutory rate of 21% are because of state taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, and mark-to-market adjustments to value stock warrants.

We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 state and local jurisdictions.  We do not currently have any federal or material state income tax examinations in progress. Our income tax returns have generally been audited or closed to audit through 2014.