INCOME TAXES

12 Months Ended

Mar. 29, 2013

IncomeTaxesAbstract

INCOME TAXES

Note 7 - INCOME TAXES:

The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes which includes the provisions of SFAS No. 109 (“SFAS 109”). Under SFAS 109, deferred income tax assets or liabilities are computed based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using the currently enacted marginal income tax rates. Deferred income tax expenses or credits are based on the changes in the deferred income tax assets or liabilities from period to period.

The provision for income taxes consists of the following:

	March 29,
	2013
Current:
Federal	$	351,763
State and local		271,377
Total current tax provision		623,140
Deferred:
Federal		174,237
State and local		53,587
Total deferred tax benefit		227,824
Total provision (benefit)	$	850,964

The components of the Company’s deferred taxes at March 29, 2013 are as follows:

Deferred tax assets:
Accounts receivable reserves	$	11,562
Accrued expenses		500,751
Prepaid expenses		(183,561	)
		328,752
Deferred tax liabilities:
Depreciation		(38,729	)
Net deferred tax assets before valuation allowance		290,023
Valuation allowance		(290,023	)
Net deferred tax assets	$	—

The Company has fully utilized its net operating loss carryovers in prior years.

The foregoing amounts are management’s estimates and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling net profitable contracts or the failure of the Company’s engineering development efforts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets.

A reconciliation of the income tax benefit at the statutory Federal tax rate of 34 % to the income tax benefit recognized in the financial statements is as follows:

	March 29,
	2013
Income tax expense (benefit) – statutory rate		34%
Income tax expenses – state and local, net of federal benefit		12%
Income tax expense (benefit)		46%