Income Taxes

12 Months Ended

Sep. 27, 2016

8.	Income Taxes:

Deferred tax assets (liabilities) are comprised of the following at the period end:

	2016						2015
	Current			Long Term			Current			Long Term
Deferred assets (liabilities):
Tax effect of net operating loss carry-forward	$	0		$	2,926		$	0		$	2,948
General business credits		0			680			0			201
Partnership/Joint Venture basis differences		0			(15	)		0			84
Deferred revenue		0			79			0			88
Property and equipment basis differences		0			(567	)		0			7
Intangibles basis differences		0			(190	)		0			(225	)
Other accrued liability and asset difference		112			1,199			66			332
Net deferred tax assets		112			4,112			66			3,435
Less valuation allowance*		(112	)		(4,112	)		(66	)		(3,435	)
Net deferred tax assets	$	0		$	0		$	0		$	0

*	The valuation allowance increased by $723,000 during the year ended September 27, 2016.

The Company has net operating loss carry-forwards available for future periods, as discussed below, of approximately $1,915,000 from 2015, and $5,726,000 from 2014 and prior for income tax purposes which expire from 2025 through 2035. Based on the change in control, which occurred in 2011, the utilization of the loss carry-forwards incurred for periods prior to 2012 is limited to approximately $160,000 per year. The Company has general business tax credits of $654,000 from 2015 and 2016 which expire from 2034 through 2036.

The Company continually reveiws the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. The Company assessed whether a valuation allowance should be recorded against its deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on the Company’s review of this evidence, management determined that a full valuation allowance against all of the Company’s deferred tax assets was appropriate.

Total income tax expense for the years ended September 27, 2016 and September 30, 2015 differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income as follows:

	2016			2015
Total expense (benefit) computed by applying the U.S. Statutory rate (35%)	$	(462	)	$	(277	)
State income tax, net of federal tax benefit		(40	)		(24	)
FICA/WOTC tax credits		(272	)		(108	)
Expiration of net operating loss carry-forward		0			616
Effect of change in valuation allowance		723			(256	)
Permanent differences		120			88
Other		(69	)		(39	)
Provision for income taxes	$	0		$	0