Income Taxes (Tables)

12 Months Ended

Sep. 28, 2025

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision

The income tax provision for the twelve months ended September 28, 2025 and September 29, 2024 include the following:

	(Thousands)
	2025			2024
Current income tax expense:
Current year federal income tax	$	1,456		$	1,045
Prior year tax adjustment		-			(14	)
		1,456			1,031
Deferred income tax provision (benefit):
Federal		(252	)		(25	)
Provision for income taxes, net	$	1,204		$	1,006

Schedule of Effective Income Tax Rate Reconciliation

The income tax provision for Optex Systems Holdings as of September 28, 2025 and September 29, 2024 differs from those computed using the statutory federal tax rate in the respective years due to the following permanent differences:

	($ in Thousands)
	2025			%			2024			%
Tax provision at statutory federal rate	$	1,334			21		$	1,003			21
Nondeductible expenses		1			-			3			-
Other permanent adjustments		(131	)		(2	)		14			-
Prior year federal income tax adjustment		-			-			(14	)		-
Change in deferred tax valuation allowance		-			-			-			-
Provision for income taxes, net	$	1,204			19		$	1,006			21

Schedule of Deferred Income Tax Assets (Liabilities)

Deferred income taxes recorded in the balance sheets result from differences between financial statement and tax reporting of income and deductions. A summary of the composition of the deferred income tax assets (liabilities) follows:

	(Thousands)
	Deferred Tax Asset
	As of September 28, 2025			As of September 29, 2024
Stock Compensation	$	83		$	177
Inventory Reserve		404			232
Unicap		60			59
Deferred Compensation		65			56
Property and Equipment		(213	)		(233	)
Intangible Asset Amortization		188			10
Contract Loss Reserve		28			54
Accrued Paid Time Off		103			92
Net Operating Losses		1,189			1,223
Other		65			50
Subtotal	$	1,972		$	1,720
Valuation allowance		(773	)		(773	)
Net deferred asset	$	1,199		$	947