Income Taxes

3 Months Ended

Oct. 01, 2011

Notes to Financial Statements

Income Taxes

(8) Income Taxes
At December 25, 2010, the Company had approximately $1,731,000 of net operating loss carryforwards available to offset future income for U.S. Federal income tax purpose.

The Company recorded a tax provision of $14,200 and $29,300 for federal income taxes and a tax provision of $6,300 and 15,600 for state income taxes during the three and nine months ended October 1, 2011.

The Company has a current and non-current deferred tax asset aggregating $1,120,429 and $1,100,279 on the Company`s balance sheet at October 1, 2011 and December 25, 2010, respectively. A valuation allowance is required to be established or maintained when it is "more likely than not" that all or a portion of deferred tax assets will not be realized. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining deferred tax assets and as such no valuation allowance has been provided against the deferred tax asset.