(8) Income Taxes

12 Months Ended

Dec. 26, 2015

Income Tax Disclosure [Abstract]

(8) Income Taxes

(8) Income Taxes

Components of income tax expense (benefit) for each year are as follows:

		2015			2014		2013
Current
Federal	$	(2,286	)	$	15,985	$	33,777
State		456			1,011		456
Current income tax provision (benefit):		(1,830	)		16,996		34,233
Deferred:
United States:
Federal		168,371			200,926		379,574
State		7,691			226		48,900
Deferred income tax provision (benefit), net		176,062			201,152		428,474
Total	$	174,232		$	218,148	$	462,707

Deferred tax assets as of December 26, 2015 and December 27, 2014 are as follows:

		December 26, 2015		December 27, 2014
Deferred Tax Assets:
Net operating loss
carryforwards	$	—	$	282,000
Stock compensation		553,000		459,000
Credit carryforwards		1,018,000		1,029,000
Inventory		424,000		363,000
Accrued liabilities		39,000		34,000
Depreciation		112,000		130,000
Other		5,000		3,000
Gross deferred tax assets		2,151,000		2,300,000
Valuation allowance		—		—
Net deferred tax assets	$	2,151,000	$	2,300,000

At December 26, 2015 the Company had no operating loss carryforwards available. At December 27, 2014, the Company had net operating loss carryforwards of approximately $740,000 available to offset future income for U.S. Federal income tax purposes.

During 2015, the Company fully utilized the available net operating loss carryforwards.

During 2015 and 2014, the Company utilized approximately $740,000 and $1,430,000 of net operating loss carryforwards, 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.

A summary of the change in the deferred tax asset is as follows:

		2015		2014		2013
Balance at beginning of year	$	2,300,465	$	2,475,902	$	2,786,973
Deferred tax (expense) benefit		(149,716)		(175,437)		(311,071)
Balance at end of year	$	2,150,749	$	2,300,465	$	2,475,902

Income tax expense is different from the amounts computed by applying the U.S. federal statutory income tax rate of 34 percent to pretax income as a result of the following:

		2015		2014		2013
Tax at statutory rate	$	212,000	$	415,000	$	486,000
State tax, net
of federal benefit		450		1,000		33,000
Tax credits and other
Permanent differences		(38,450)		(198,000)		(56,000)
Total	$	174,000	$	218,000	$	463,000

The Company’s income tax filings are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations for the years 2012 through 2015.

At December 26, 2015 the Company’s Deferred Tax Asset and other temporary differences which will require taxable income of approximately $6.2 million to fully utilize, assuming an effective corporate tax rate of 39%. The Company has concluded that it is more likely than not that its Deferred Tax Asset will be fully realized.