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(9) Income Taxes
6 Months Ended
Jun. 29, 2019
Income Tax Disclosure [Abstract]  
(9) Income Taxes

(9)  Income Taxes

 

A valuation allowance against deferred tax assets 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. In December 2018, the Company established a partial valuation allowance reserve, as it is judged more likely than not that a majority of its tax deferred tax assets will not be used before they expire. This decision was reached after giving greater weight to its losses over the previous three years compared with its forecast of the future. Consistent with this conclusion, no income tax provision/(benefit) has been recorded for the quarter and six month ending June 29, 2019.

 

The Company recorded a tax benefit of $67 thousand and $227 thousand for federal income taxes during the three and six months ended June 30, 2018, respectively. The Company recorded a tax benefit of $13 and $43 thousand for state income taxes during the three and six months ended June 30, 2018, respectively.