v3.25.4
Note 12 - Income Taxes
 12 Months Ended
Dec. 27, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

(12) Income Taxes

 

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

 

   

2025

    

2024

  

Current:

                

Federal

   $ -     $ -  

State

     456       456  
                 

Current income tax provision (benefit):

     456       456  
                 

Deferred:

                

Federal

     205,439       (727,390 )

State

     56,389       (231,566 )
                 

Deferred income tax provision (benefit), net

     261,828       (958,956 )
                 

Total

   $ 262,284     $ (958,500 )

 

Deferred tax assets as of December 27, 2025 and December 28, 2024 are as follows:

 

   

December 27,

2025

    

December 28,

2024

  

Deferred Tax Assets:

                

Net operating loss carryforwards

   $ 719,586     $ 766,023  

Stock compensation

     119,130       117,453  

Credit carryforwards

     887,910       899,441  

Inventory

     188,334       141,615  

Accrued liabilities

     6,359       6,468  

Depreciation

     104,575       120,452  

Capitalized R&D, net

     237,044       474,088  

Other

     3,916       3,142  

Net deferred tax assets

   $ 2,266,854     $ 2,528,682  

 

Net operating loss carryforwards are the result of federal net operating losses as of 12/272025 and 12/28/2024 are $2,624,214 and 2,805,819, respectively. Under current tax law, these federal losses were incurred subsequent to 2018 and can be carried forward indefinitely. State net operating loss carryforwards expire in 2044.

 

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

 

   

2025

    

2024

  
                 

Gross deferred tax balance at beginning of year

  

$

 2,528,682    

$

 1,569,726  
                 

Deferred tax (provision) benefit

     (261,828 )     958,956  
                 

Balance at end of year, net

  

$

 2,266,854    

$

 2,528,682  

 

Income tax expense is different from the amounts computed by applying the U.S. federal statutory income tax rate of 21 percent and the Massachusetts statutory income tax rate (net of federal benefit) of 6.32 percent

to pretax income as a result of the following:

 

   

2025

      

2024

      
      Amount   Rate     Amount     Rate

Tax at statutory rate

   $ 143,354   21.00%   $ (857,216 )   21.00%

State tax, net of federal benefit

     56,749  

8.31%

     (231,204 )   5.66%

Other

     62,181   21.00%     129,920     19.14%
                       

Total

   $ 262,284   34.82%   $ (958,500 )   23.48%

 

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. The Company concluded that it is “more likely than not” that the Company will be able to fully utilize the deferred tax asset.

 

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 2021 through 2024.