(8) Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

(8) Income Taxes

(8) Income Taxes

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

		2016		2015		2014
Current
Federal	$	—	$	(2,286)	$	15,985
State		456		456		1,011
Current income tax provision (benefit):		456		(1,830)		16,996
Deferred:
United States:
Federal		(526,922)		168,371		200,926
State		(149,678)		7,691		226
Deferred income tax provision (benefit), net		(676,600)		176,062		201,152
Total	$	(676,144)	$	174,232	$	218,148

Deferred tax assets as of December 31, 2016 and December 26, 2015 are as follows:

		December 31, 2016		December 26, 2015
Deferred Tax Assets:
Net operating loss
carryforwards	$	363,000	$	—
Stock compensation		628,000		553,000
Credit carryforwards		1,265,000		1,018,000
Inventory		369,000		424,000
Accrued liabilities		27,000		39,000
Depreciation		171,000		112,000
Other		4,000		5,000
Gross deferred tax assets		2,827,000		2,151,000
Valuation allowance		—		—
Net deferred tax assets	$	2,827,000	$	2,151,000

At December 31, 2016 the Company had net operating loss carryforwards of approximately $923,000 available to offset future income for U.S. Federal income tax purposes. At December 26, 2015 the Company had no operating loss carryforwards available.

During 2015 the Company utilized all prior net operating loss carryforwards of $740,000.

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. Current projections of future taxable income, including the reversal of temporary differences, reflect the Company’s belief that it has attractive growth opportunities and a favorable cost structure. These projections support the conclusion that the Company will generate taxable income sufficient to utilize the losses before they expire.

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

		2016		2015		2014
Balance at beginning of year	$	2,150,749	$	2,300,465	$	2,475,902
Deferred tax (expense) benefit		676,600		(149,716)		(175,437)
Balance at end of year	$	2,827,349	$	2,150,749		$ 2, 300,465

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:

		2016		2015		2014
Tax at statutory rate	$	384,000	$	212,000	$	415,000
State tax, net
of federal benefit		450		450		1,000
Net operating loss and
credit carryforwards		(249,450)		(34,450)		(190,000)
Other		(43,000)		(4,000)		(8,000)
Total	$	(676,000)	$	174,000	$	218,000

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 2013 through 2016.